Indian tribes

New Patent Ploy: Let’s Make a Deal with an Indian Tribe

Companies involved in patent disputes should be aware of a new tactic they may either face or wish to employ.  Some patent owners have recently utilized a new strategy to avoid inter partes proceedings (IPRs) in the Patent Office. The strategy: sell (and then obtain a license back) the patents to an Indian tribe, retaining all marketing rights, and then assert that tribe’s sovereign immunity to avoid an IPR.  At least two patent owners have revealed their implementation of such a strategy in recent filings, which has seen significant push-back from both the courts and Congress. 

If you are a patent owner who expects heavy litigation on your patents, you might wish to consider using a similar strategy.  If your company regularly faces claims of patent infringement (by competitors or patent trolls), then be prepared to have such a strategy employed against you by a patent owner.