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Technology Stocks : Apple Inc.

AAPL 278.28

+0.1%

Dec 12 9:30 AM EST

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From: Moonray	4/11/2014 2:56:16 PM
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Apple Drops Support for Major Patent-Holding Firm Apple ( NASDAQ:AAPL) has declined to invest in the latest acquisition fund for Intellectual Ventures, a major patent assertion entity that buys up patents in order to extract licensing fees from practicing companies, reports Reuters. Although Apple has previously invested in the firm, the Cupertino-based company joined Intel ( NASDAQ:INTC) in deciding to drop its support for the patent-holding company at this time. However, as noted by Reuters, it is unclear if Apple will renew its support for Intellectual Ventures at a later date. Advocates for patent system reform have accused patent-holding firms such as Intellectual Ventures of abusing the patent system. Patent assertion entities, or PAEs, typically extract patent-licensing fees from companies that actually manufacture or sell a product by threatening them with costly litigation. As a result, many companies reach out-of-court settlements with PAEs even if the lawsuits are based on dubious patent claims. Since PAEs typically don’t make a product, they are also known as non-practicing entities, or NPEs. Patent-holding companies are also commonly referred to as “patent trolls” by critics of their business model. wallstcheatsheet.com o~~~ O

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