Antitrust Law Daily Wrap Up, CONFERENCES: Joint FTC, Department of Justice Workshop on Patent Assertion Entity Activities Announced, (Nov 20, 2012)

By E. Darius Sturmer, J.D.

The FTC and Department of Justice announced on November 19 that they will hold a joint public workshop on December 10, 2012, in Washington, D.C. to explore the impact of patent assertion entity (PAE) activities on innovation and competition and the implications for antitrust enforcement and policy. PAE activities include purchasing patents from existing owners and seeking to maximize revenues by licensing the intellectual property to (or litigating against) manufacturers who are already using the patented technology. PAE activity differs from prototypical “non-practicing entity” (NPE) activity, such as developing and transferring technology, the agencies explained.

Supporters of the PAE business model say that it facilitates the transfer of patent rights, rewards inventors, and funds ongoing research and development efforts. Critics describe adverse effects on competition and innovation, including increased costs and a lack of technology transfer, ultimately taxing consumers and industry.

Following introductory lectures on PAE activities and licensing, the workshop will examine the economic and legal implications of PAE activity, as distinct from NPE activity, through a series of panel discussions. Topics to be addressed by the panels include: the realities of licensing and litigation practices, potential efficiencies from PAE activity, potential harms from such activity, industry reaction to the practice, and the application of antitrust law to these potential efficiencies and harms.

The workshop will feature remarks by FTC Chairman Jon Leibowitz, Acting Assistant Attorney General for the Antitrust Division Renata B. Hesse, and Chief Economist for the U.S. Patent & Trademark Office Stuart Graham. Panelists and other faculty include: Logan Breed, Cynthia Bright, Scott Burt, Colleen Chien, Susan Creighton, John Desmarais, Peter Detkin, Ron Epstein, Thomas Ewing, Robin Feldman, Sarah Guichard, Hanno Kaiser, Anne Layne-Farrar, Phillip Malone, Paul Melin, Michael Meurer, Neal Rubin, Alan Schoenbaum, David Schwartz, Carl Shapiro, Hill Wellford III, and Mallun Yen.

The workshop, which is free and open to the public, will take place at the FTC’s satellite conference center at 601 New Jersey Ave., N.W., Washington, D.C. Individuals are encouraged to register by December 5, 2012, for the workshop by sending an email to: ATR.LPS-PAEWorkshopRSVP@usdoj.gov. Please include “RSVP” in the subject line. Further information about the workshop can be found here.

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