What Is a Patent Thicket, and How Does It Affect Innovation?

Patents play a critical role in encouraging innovation and protecting inventors. But what happens when these protections start to do the opposite of what they’re intended to do? The term patent thicket refers to this very issue, where overlapping and densely packed patent claims create a situation that can hinder rather than help innovation. Read on and reach out to Lemler IP to speak with a seasoned New Orleans patent lawyer to learn more. Here are some of the questions you may have:

What Exactly Is a Patent Thicket?

A patent thicket is a web of interrelated patents that a company or several companies hold, often covering very similar technologies. For an inventor or business trying to introduce a new product or process, a patent thicket can make it incredibly difficult and costly for the inventor or business to bring the new product or process to market without infringing on existing patent rights of others, meaning the need to secure dozens, or even hundreds, of licenses before moving forward.

This issue is particularly common in industries like pharmaceuticals, biotechnology, software, telecommunications, and electronics, where one product might involve dozens of patented components. Rather than protecting a single novel idea, a patent thicket often includes slight variations of the same technology, making it harder for others to innovate without risking a lawsuit.

How Do Patent Thickets Impact Businesses and Innovation?

For startups and smaller companies, encountering a patent thicket can be especially daunting. These entities often lack the resources to engage in lengthy legal battles or pay for expensive licenses. As a result, some may abandon promising projects altogether, simply because the legal risk is too high. Even larger companies can find themselves slowed down by the need to conduct extensive patent searches, negotiate licensing agreements, or defend against infringement claims.

In some cases, companies use patent thickets strategically, not just to protect their own innovations, but also to block competitors from entering the market. This can be seen as a defensive maneuver, but it may also stifle new developments that could benefit consumers, effectively resulting in a technological monopoly halting related innovation. When innovation is delayed or discouraged, the broader economy and the public can suffer.

Patent thickets also add administrative burden to the U.S. Patent and Trademark Office, as they often involve numerous, closely related applications that must be examined carefully. This can slow down the patent approval process for everyone.

If you or your company is developing a new product in a field known for dense patent activity, it’s essential to have an intellectual property strategy in place from the start. This means working closely with an experienced patent attorney to conduct thorough prior art searches, assess potential infringement risks, and identify opportunities for licensing or collaboration.

Some companies may choose to challenge overly broad or questionable patents, either through formal reexamination procedures or litigation. While this can be costly, it may also open the door to freer innovation in the long run. In other cases, businesses may seek to form patent pools or cross-licensing agreements, which can instead encourage more cooperative innovation.

If you require assistance with anything patent or IP-related, please don’t hesitate to contact Lemler IP today.