Betting on Invalid Patents

A new startup called “Article One Partners” wants to make money by betting on the invalidity of patents. How does this work?

1. They offer rewards for information and prior art that may invalidate the patent of a public company.
2. They “short-sell” the stock of the public company before the information or prior art is released.
3. Or, they sell the information to the competition, who may wish to pursue a lawsuit to invalidate the patent.

For more info, read this article about how this online startup aims to improve patent quality .