Posts Tagged ‘patent trolls’

House passes Goodlatte patent troll bill

The vote was 325 to 91, with Reps. John Conyers (D-Mich.) and Mel Watt (D-N.C.) leading the opposition. Timothy Lee discusses in the Washington Post. While I haven’t tried to get into the details, the general drift looks quite good to me. One major provision requires those filing suits to plead with some specificity what the infringement is; another provides for losing parties to compensate prevailing parties toward the cost of the litigation in more cases; yet another attempts to forestall expensive discovery in cases destined to fail on other grounds. Readers who recall my first book, The Litigation Explosion, will recall that I recommended procedural reform as the most promising way to address the incentives to overlitigiousness in our legal system and in particular identified lack of fee shifting, anything-goes pleadings, and wide-open discovery as among the system’s key deficits. So, yes, developments like this make me feel I was on the right track.

Equal time dept.: Richard Epstein takes a different view.

Intellectual property roundup

  • Trademark infringement claims as way to silence critics: Jenzabar gets comeuppance in form of court award of more than $500,000 in attorney costs [Paul Alan Levy, earlier and more]
  • Court holds Google Books project to be fair use [Matthew Sag]
  • Questioning the ITC’s patent jurisdiction: “Why should we have a trade agency litigating patent disputes?” [K. William Watson, Cato, more, yet more, related]
  • Courts come down hard on copyright troll Prenda Law [Popehat]
  • Annals of patent trollery: New York Times et al rout Helferich [EFF, Liquid Litigation BLLawg] Monolithic Power Systems v. 02 Micros [IP for the Little Guy] Resistance by Newegg, RackSpace, Hyundai, etc. [WLF]
  • Re: copyright terms, US government shouldn’t endorse view that longer always means better [Simon Lester, Cato]
  • Legal tiff over use of hotel carpet patterns in costumes [Io9]

Reining in patent litigation via fee shifts

Prevailing parties in patent suits can win attorneys’ fees from losing opponents in cases deemed “exceptional.” “Under the test used to identify exceptional cases, cases must be objectively baseless and brought in bad faith.” That is already a painfully narrow exception, allowing for large volumes of poorly founded litigation, but two cases before the Supreme Court this term may provide clarity on when courts can deem cases “exceptional” and suitable for a fee shift. Broader use of fee shifts — presumably by way of deeming at least some swath of losing cases “exceptional” — would be one way of addressing the patent troll problem that would not call for new legislation. [ABA Journal, related, Corporate Counsel (arguments that judiciary can deal with trolls on its own]

In other developments, the Federal Trade Commission has voted to proceed with an inquiry into the patent troll problem [New York Times] and the Government Accountability Office has released a long-awaited report on the issue [Mike Hogan and Gregory Hillyer, Legal Intelligencer]

“Everyone’s so damn afraid of coming forward”

— against patent trolls. But Kevin O’Connor, CEO of a startup named FindTheBest, went ahead and did so [Joe Mullin, Ars Technica] Exploding and escalating-on-response demands, threats of criminal prosecution, demands for “sequestration” (removal from service) of his company’s computers to prevent evidence spoliation, and promises of burdensome discovery are all part of the story.

Patent trolls roundup

“Once you go thug, though, you can’t unthug”

The owner of IPNav, which has sued 1,638 companies charging patent infringement, explains his methods to the New York Times. “Mr. Spangenberg has been called ‘a costly nuisance,’ ‘one of the most notorious patent trolls in America’ and many unprintable names in the comments sections of Web sites like Techdirt. He has achieved a certain infamy,” as well as an annual estimated income of $25 million a year. And from Timothy Lee at the Washington Post: “Here’s what it feels like to be sued by a patent troll.

“Patent troll that sues public transit systems gets hauled into court”

We’re previously noted the activities of ArrivalStar and related entities, which have filed numerous suits against enterprises over alleged infringement on vehicle-tracking technology. Now one of its frequent targets, public transit systems, is striking back: the “American Public Transportation Association (APTA) has teamed up with the Public Patent Foundation (PubPat) … [and] have sued to knock out the ArrivalStar patents.” [Joe Mullin, Ars Technica] Also: “F.T.C. Is Said to Plan Inquiry of Frivolous Patent Lawsuits” [New York Times]

Intellectual property roundup