TechWave, a mid-sized technology company, has recently recei…
TechWave, a mid-sized technology company, has recently received a lawsuit from PatentGuard LLC, a company that does not manufacture or sell any products but holds a portfolio of software patents. PatentGuard claims that TechWave’s latest software update infringes on one of its patents and demands a large settlement to avoid lengthy litigation. TechWave’s legal team suspects that PatentGuard is primarily engaged in acquiring patents and enforcing them through litigation rather than innovation or product development. Explain the concept of a “patent troll” and discuss how entities like PatentGuard LLC impact innovation and the business environment. What legal and strategic options does TechWave have to respond to the lawsuit?