Privateers and trolls join the global patent wars; can competition authorities disarm them?

Computerrecht 2014/37, p. 80-88, Maurits Dolmans: "Strategic use of privateers is an even more nefarious trend, and Rockstar’s Halloween Attack is a bad omen. Manufacturers have begun to disaggregate patent portfolios and transfer portions to multiple PAEs with profit sharing agreements, knowing that these PAEs will hold up their rivals, leading to royalty stacking. Consumer harm consists of price increases and even exclusion of rivals when the costs become prohibitive. These patent transfers often fall below the thresholds of the merger control.

Patents are supposed to foster innovation, but are now also used to block it. The system is turning against itself. If antitrust authorities and courts allow this to continue, these practices will spread. Those who foster privateering may become the victims of their own strategems, and the problem may infect other industries. It may well be some time before consumers see increased prices and reduced competition, but when they do, it will be even more difficult to redress the problem. Prevention is better than cure. Privateering can and should be addressed under Article 101 TFEU."