Study On Non-Practicing Entity Mode Of Patent Monetization

Since its rise in the United States in the 1990 s,NPE mode of patent monetization has triggered a wave of patent innovation,becoming one of the most heated controversies in the patent profession.With the development of technology and market,the importance of patent application further highlights.Under the theory of "Consideration" and "Innovation-driven",NPE’s patent monetization system originated and was flourishing in the United States.Now it has become a great recipe for patent activation.There are also some practical experiences and lessons learned from all over the world.However,NPE patent monetization in our country is still in a stage of development where the attitude of support is not clear and the practical experience is scarce.Consideration of realistic problems and their solutions has just begun.Combining the experience of extraterritorial practice and national conditions of our country,a whole set of NPE patent monetizing system devoted to circumventing its problems should be established.This article is divided into the structure of the introduction,body and conclusion,of which the body is divided into five parts.The first part sorts out the meaning and evolvement of NPE patent monetizing system.It clarifies that the essence of "patent operation" is the "monetization of patents".Also,the combination of "NPE"("non-practicing entity")and three other confusions helps identify NPE.Then it demonstrates its patent exclusive basis,offensive and defensive compound protective function and capital market-guiding characteristics.NPE’s patent monetization system was rooted in the new economic policies of the United States.Nowadays,it has been rapidly developed in many countries and regions in the world and has shown the coexistence of challenges and opportunities in the industrial chain.The second part is based on NPE’s patent monetization in the United States and related major changes in legislation,administration and judicature during these years.By critically drawing on the anti-NPE saying of "NPE increases economic cost" and "NPE hinders scientific and technological innovation",this part reiterates the neutralization of NPE positioning,affirms that it will help improve the value of patents and encourage innovation,and thus re-analyzes the rationality of jurisprudence and economic value of NPE patent monetizing system."Patent consideration" theory and "innovation-driven" theory provide the legal basis for NPE patent monetization.Besides,the market value of patent and the balance of interests among multi entities also demonstrate the practical necessity of affirming NPE’s patent monetization system.The third part is based on the summary of the overall NPE patent monetization model.This part then conducts a comparative analysis of advantages and disadvantages of specific NPE modes of the patent alliance,intellectual property securitization platform and national laboratory system in the United States,of patent insurance and "Innovation Center" in Europe,and of "Intellectual Property Scheme" in Taiwan.The fourth part reviews the current NPE patent monetization polices and platform status in our country,summarizes the "Netac model" and "Zhenjiang model" formed in NPE patent monetization practice in recent years,and reveals some major issues in NPE patent monetization in China,including that the existing patent quality is not suitable for monetization,that operational experience is lacked,that protective and regulatory mechanisms need to be established,that challenges faced by NPEs outside the domain are harsh,and that the level of patent enforcement now is low,etc.The fifth part clarifies that our country should introduce and develop a full set of NPE patent monetization system which is in line with national conditions.By consolidating the foundation of NPE patent monetization,regulating patent abuse of NPE at different stages,introducing the regulation of antitrust law,establishing several NPE patent operation norms of model,and enhancing the level of patent administrative law enforcement,it is practical to explore the basic construction of Chinese NPE patent monetization system.