The activities of patent trolls can have several negative impacts on businesses:
1. Financial Burden: Defending against patent infringement claims can be extremely costly. Legal fees, settlements, and potential damages can drain financial resources, especially for small and medium-sized enterprises (SMEs).
2. Innovation Stifling: The threat of litigation can deter companies from pursuing new ideas and technologies. Fear of infringing on existing patents, even unintentionally, may lead to a more cautious approach to innovation.
3. Resource Diversion: Time and effort spent on legal defenses divert attention and resources away from core business activities, hindering growth and productivity.