Abstract
The successful business model of patent assertion entities (PAEs) has brought certain impacts on the global technology market, and Taiwan’s IT industry is also facing the difficult situation. A review of recent studies suggests that the PAE activities have had a negative impact on innovation, which contradicts the legislative purpose of patent law. In this thesis, the issues that the PAE activities have shown will be thoroughly reviewed and discussed. Moreover, from recent U.S. patent reform in legislature, executive and judiciary, as well as Taiwan IT companies’ successful litigation cases, this thesis will discuss how Taiwan’s IT companies can respond when facing PAE’s litigations and will also provide several litigation strategies.