>Specifically, a few people have publicly challenged some important patents with the intent of making a quick buck by shorting the patent owner’s stock.
Shouldn't that be against insider trading laws somehow?
I would find it relevant since insider trading laws are intended to catch individuals with access to nonpublic information about a company and that then uses that information in a unfair way on the stock market.
Even in countries that don't use civil law, intentions should still be relevant in discussing the law or its enforcement.
It's not insider trading, because the person challenging the patent is not an insider. It is, however, market manipulation and it is illegal in the US. http://en.wikipedia.org/wiki/Market_manipulation
It's funny that page lists "bear raid" as an example. That's basically how shorting is done. You short a stock, then you tell the world why as loudly as possible.
Shouldn't that be against insider trading laws somehow?