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Ip, Patent Trolls and Innovation

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Submitted By AltaPdr1989
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IP, Patent Trolls and Innovation.

If you were privy to the early years of file sharing you may remember waiting happily hours for your favorite music to download. In the end, you might have found that it wasn’t the right song after all or that the quality was less than stellar. Nonetheless, the explosion of Napster in the late 90’s was an exciting time for music enthusiasts since it opened a new technology forum to access music.

While the initial firestorm about Napster was related to copyright infringement, a deeper dilemma was unfolding along with this new technology. Napster’s story demonstrates what can happen when an established, powerful industry faces a threat from a new technology that offers more services for a lower cost. Furthermore, it depicts the struggle of burgeoning technologies with established institutions’ copyrights, patents, and intellectual property.

Our society continues to explore how to balance the rights of intellectual property while not dampening the emergence of needed disruptive technology. Innovation is the fuel that stokes our economic fire. Yet, with a perceived threat of lawsuits or the attacks of patent trolls, start-ups and venture capitalists may be deterred from investing in areas that are deemed too risky. In the aftermath of Napster, venture capitalists were much less likely to invest in digital music as a result of the decision.

In the late 1990’s, the music industry was less than thrilled about Napster. The music industry levied a war against the youngster-led company. The Recording Industry Association of America (RIAA) sued Napster, and its financial supporters, in federal court. They claimed that Napster users engaged in the reproduction and distribution of copyrighted works. Napster was found guilty based on four principles of fair use: 1. Purpose: the court determined that Napster users engaged in

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