(NAPSI)—In local communities across America, the “next big idea” often takes shape in a garage, a small startup office or a community college lab. New American inventors and entrepreneurs are the backbone of our nation. They are responsible for turning bold ideas into products that create jobs and make life easier for all of us. They are often the lifeblood of local economies.
But in recent decades, a particular kind of legal threat has emerged that puts that engine of entrepreneurial innovation at risk. These lawsuits come from shell companies that are commonly known as patent trolls. Patent trolls don’t invent things or make products but exist solely to pursue lawsuits related to patents they buy. Patent troll litigation costs U.S. firms an estimated $29 billion annually in direct legal expenses, and approximately $60 billion when accounting for lost firm value and diverted resources. Patent troll litigation surged 22% from 2023 to 2024 alone, making it a fast-growing issue for American business.
Patent trolls have been at work for decades. But now, in a new twist, patent trolls are being hired to file lawsuits against others in the industry. The aim isn’t to defend a real invention, but to make it harder for rivals by driving up legal costs, scaring off customers, delaying product launches, or pushing for monetary settlements. This puts more pressure on the price of everyday technology products.
This legal warfare acts like a hidden tax on local innovation. Money that could be spent fueling research and development of promising new ideas instead gets diverted to paying legal bills. A product that could have shipped in spring slips to the fall—or launches with fewer features. Over time, those suits have a chilling effect on small-business innovations and growth, in communities throughout the US.Â
Economists and consumer advocates warn that these tactics could stifle growth in key industries like semiconductors, artificial intelligence and clean energy—fields that depend on fast-moving innovation and open competition. Each time an inventor or startup is forced to settle or shut down, another potential breakthrough gets delayed or disappears entirely.
This troubling legal trend is not just hurting startups and small businesses. Patent trolls clog the courts with frivolous filings, overloading judges and regulators who could be spending their time on real cases. It’s a drain on innovation and public resources.Â
The good news is that policymakers are beginning to push back. Over the past year, 15 governors—Republicans and Democrats alike—have signed new laws to curb abusive patent litigation. More than thirty U.S. states are now taking action to make it harder for shell companies to weaponize the legal system against innovators. In states like Massachusetts, lawmakers are even debating fresh measures to crack down on the rise of patent trolls that file lawsuits not to protect innovations, but to sabotage.Â
Across the country, Americans are taking note. In a recent national poll on the topic, 90% of Americans agree that the U.S. must ensure a fair legal playing field so smaller businesses can innovate and compete without fear of costly, frivolous lawsuits. Nearly nine in ten are concerned that smaller companies would be harmed as larger companies benefit from patent troll abuse, and 82% worry about the impact on jobs at small, innovative companies.
The United States has always been defined by invention. But that only works when the system rewards creators, not manipulators. Patent trolls for hire may be an invisible problem to most Americans, but the costs are real; they show up in lost jobs, shuttered startups and innovations that never reach the market.
Innovation should be a race toward the best ideas. Instead, it’s quickly becoming a race to the courthouse. It’s time to ensure that our legal system serves those who build, not those who bully. Because when deep-pocketed corporations and hired patent trolls win, America’s innovators and entrepreneurs lose.
 
