A Primer Discussion on NPEs: From the Points of Antitrust Challenges

Posted by Social Science Research Network

A Primer Discussion on NPEs: From the Points of Antitrust Challenges – Binqiang Liu (UNH Law (Formerly Franklin Pierce Law Center))

ABSTRACT: NPEs (Non Practicing Entities) and their patent trading deals are relatively new phenomena. Antitrust cases involving NPEs and related patent deals from EU and US set clear statement that NPEs and their patent trading behavior do fall under antitrust scrutiny. Due to the complexity and hard-to-trace nature of NPEs as well as the difficulty to define the effects brought to competition in related markets by NPEs’ patent trading practice, antitrust investigation authorities face great challenges when dealing with NPEs. Innovative application is needed while current regulations and antitrust related laws are to be applied. Potential acts include a clear and extended definition of entities to be investigated, a combined ex-ante and ex-post investigation mechanism, and a platform established to provide extensive information related to patents and NPEs so that the information asymmetry problem can be mitigated.