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The value of the civil legal system is entirely about the influence of the possibility of litigation on primary behavior. Obviously any actual litigation is a loss--but the possibility of recourse to litigation can allow transactions to happen in low-trust environments, and thus be a net win.

Similarly, value of NPE's is that they allow recovery of investment into R&D that doesn't lead directly to a product, thus reducing the barrier to investing in R&D.



So that would include the nearly $100 million collected by Forgent in settlements over bogus JPEG patents [1]? Or all of the other NPEs who target the small startup, the app writer, or anyone else they can think of who can't afford a long, protracted legal battle?

Yeah, this article is just part of a complex picture, but it's telling.

[1] http://en.wikipedia.org/wiki/Asure_Software#JPEG




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