Patents and intellectual properties are legally binding documents that verify ownership by a party over an item that they either indicate plans to create or have created, though they each refer to different kinds of things. Where a patent can cover something that is more technologically focused - such as a special kind of motor or rumble technology found in video game controllers - an intellectual property usually refers to an idea such as a series of films - ie, Die Hard, Star Wars, Nightmare on Elm Street, etc.
Patents are not only frequently used, but used for good purpose - without them, a person or company could release a product, and anyone could use the same technology, or at least a very similar technology, and not have to credit the creators or, if they used it maliciously, not pay them royalties on the product.
In the United States, an unfortunate loophole in patent law allows people to make a vague patent that is intended to be something that another company would likely make; after which point, the patent filer would file suit against the company that made the product, arguing that the company stole their idea. This is referred to as "patent trolling". It is especially common in Texas, and in the medium of video games, particularly due to how technologically-based it is and how it generally employs people of a younger age group.
With the current laws, people in the United States may patent an item and not worry about it expiring, allowing them to not worry about actually producing the item that they claim to own the patent on. One of the more famous examples of patent trolling was with Sony and Microsoft being sued over the method of rumble used in their controllers; while Microsoft settled out of court, Sony fought back, though ultimately losing. It is believed that rumble will slowly fade out of use, though Sony's original argument for its exclusion was being outdated, and Microsoft arguing for its exclusion from use with the Kinect being the same thing.
Nintendo was hit with a suit itself for the design of the Nintendo GameCube controller. While it won in the lower court, an appeal to the higher court reversed the decision, allowing the sale of the controllers. This is generally exclusive to the United States, as patent laws outside of it are quite different. There have been calls to revise the laws, with people arguing that it prevents change due to fear that a new device will come under fire from a patent troll who is seeking to take some of the profit made off of it.
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