Not long after Groupon was battered by a string of patent infringement lawsuits — including a 2010 action by Mobgob LLC in Los Angeles – the coupon website started investing in patents. Intellectual property experts believe Groupon is following the defensive path other companies take to protect itself from costly, future litigation.
An armory of so-called defensive patents strengthens a company’s position in case of a legal assault for infringement. A hefty patent collection can encourage plaintiffs to settle out of court, saving litigants time and money.
Licensing agreements are frequently part of settlement terms in patent disputes. Having plenty of defensive patents also bolsters chances for a company to countersue for patent infringement.