First of all the $29 Billion was not direct legal costs, it was calculated based on the change in the defendant’s stock price after it was announced they were being sued for infringement. This method of calculating losses is pure nonsense. Second, the study is flawed in that it assumes that all patent lawsuits were frivolous. If a company infringes a patent, then the drop in its stock price should be considered the amount of money the company stole from the inventor. This theft inhibits invention. For more information on the flaws in this study see http://hallingblog.com/flawed-study-by-boston-university-used-to-justify-infringement/
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