What do a photography company, a pizza shop, and a real estate brokerage have in common? They're among the many businesses that report having been sued or threatened by a patent troll.

Here's how it typically works: A business owner receives a letter or other communication telling them that an everyday business practice—like using a dropdown menu on a website or posting pictures on the internet—is a violation of the troll's patent. The business owner is informed that they must either pay licensing fees to continue these everyday practices or face an expensive lawsuit.

Think about it—a small-business owner doesn't necessarily have the time or financial means to mount a legal defense against a patent troll. Even the possibility of a lawsuit can shutter a business, and many owners will simply opt to pay the unfair licensing fees, rather than risk an expensive and time-consuming legal fight.

It's a type of extortion that many industries are experiencing. According to recent data, 2015 saw the most patent disputes in U.S. history. Moreover, nearly 67 percent of patent litigation in 2015 involved disputes with nonpracticing entities—parties that own patents but don't actually use them except to extract fees from other businesses.

We know now that when overly broad patents are challenged on their merit, the parties that hold them may very well back down.

Many associations, including the National Association of Realtors (NAR), are fighting back on behalf of their members, both as a policy issue and in actual litigation. One such case involved Data Distribution Technologies, a known patent troll. DDT holds a patent that it claims covers systems that provide website users with online, searchable databases and email updates when new information is added to those databases.

This common website functionality became the leverage that DDT used to demand licensing fees from many real estate brokerages and multiple-listing services nationwide, in hopes of garnering a big financial windfall.

That is, until NAR stepped in.

NAR reviewed the patent and determined that it didn't warrant patent protection because it did not describe a novel invention, and it likely covered subject matter that it is not patentable. Therefore, NAR implemented a two-pronged legal strategy to push back against DDT's demands.

First, NAR filed what's known as an inter partes review with the Patent Trial and Appeal Board of the U.S. Patent and Trademark Office. The request essentially stated that NAR believed DDT's patent was too broad, and it asked the USPTO to invalidate the patent altogether.

Next, NAR filed a lawsuit against DDT, seeking a declaration that the patent was invalid. Even though we knew this litigation would be put on hold while awaiting the outcome of the USPTO action, it was necessary to file the lawsuit to prevent the possibility of DDT suing NAR in a jurisdiction favorable to patent troll litigation, such as the Eastern District of Texas.

At this point, we knew that we had a strong case, but we didn't realize how successful our strategy would be until DDT did something surprising: It surrendered.

Rather than invest the time and money it takes to defend the validity of its patent, DDT settled with NAR. In so doing, DDT agreed to refrain from enforcing its patent in the real estate industry, specifically protecting NAR members, multiple-listing services, affiliates, and others from any future claims, demands, or litigation related to the patent.

The settlement marked a significant victory for our members, who can now go about their business without fear of litigation related to this patent.

Taking Up the Charge

While we believe NAR's victory over DDT was a win for Realtors, it's also a clear warning to patent trolls that associations can implement legal strategies to effectively defend their members against frivolous patent lawsuits.

We know now that when overly broad patents are challenged on their merit, the parties that hold them may very well back down. In a sense, we've found a way to beat them at their own game, and NAR encourages other associations take up the charge for their own members.

Of course, the fight doesn't stop there. NAR is one of many organizations that have argued for years that legislation is needed to reform the patent system in a way that combats patent trolls, while still fostering innovation and investment. It's a debate that's going on right now in Congress, but in the meantime patent abusers continue to demand licensing fees from small businesses.

This issue isn't going away anytime soon. While we work toward a legislative solution in Congress, associations should consider legal strategies for successfully defending their members from patent trolls.

Every patent troll that's beaten in court, or at the USPTO, represents another reason for others like them to end patent abuse for good. It's a step toward real change for our members, and NAR is proud to help.