'Patent Trolls' Slip; Obama Administration Takes Steps to Ebb the Practice (VRNG) (VHC)

The White House released a statement outlining plans to protect high-tech companies from "frivolous litigation and ensure the highest-quality patents in our system."

The administration outlines several key steps Congress should take which would have immediate effect on Patent Assertion Entities (PAEs), or companies that "don't actually produce anything themselves," according to Obama. The notice continues, "These entities are commonly known as “patent trolls.” Likewise, the so-called “Smartphone Patent Wars” have ballooned in recent years and today, several major companies spend more on patent litigation and defensive acquisition than on research and development."

Traders might note several names popping up recently that have drawn attention for such action, including Vringo (Nasdaq: VRNG), VirnetX Holding Corp (AMEX: VHC), and Acacia Research Corporation (Nasdaq: ACTG), among others. All three named companies are lower on Tuesday's session.

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