Bonum Certa Men Certa

Number of Patent Cases in the Eastern District of Texas Has Dropped by an Astounding Rate in Just a Few Months

The political system wants change as much as Supreme Court (SCOTUS) Justices do

Orrin Hatch



Summary: The United States is moving closer to a post-trolls era, not just a post-software patents era, thanks in part to few outspoken politicians who can identify the issue with both

PATENT trolls are a big cause for concern in the US, more so than software patents (which about half a decade ago vanished from headlines).



The issues associated with patent trolls were mentioned in the latest post from Senator Orrin Hatch (we covered it on Wednesday and Patently-O published an outline of his points on the same day). Are patent trolls going to be a thing of the past any time soon? Maybe.

Following the SCOTUS intervention earlier this year (TC Heartland decision back in May), patent trolls based near the Eastern District of Texas are basically screwed, as many of us expected all along. The number of cases has "fallen to 16% post-TC Heartland from 34% before," Managing IP wrote yesterday. Most of the article is behind paywall, as usual, but here is the key part:

The Eastern District of Texas’s share of US district court patent cases in 2017 has fallen to 16% post-TC Heartland from 34% before, while overall patent case filing is on course to fall 13% for the full year compared to 2016, reveals data from Unified Patents


Many of these cases are filed by trolls and many involve software patents. So this is a very big deal!

Yesterday, Josh Landau from the CCIA published a long article at Patent Progress in which he explained how PTAB (which Orrin Hatch also defends) has saved the world from a very nasty patent troll called MPHJ -- one that uses a software patent, as usual. Here are some key portions:

MPHJ Threatens Basically Everyone



MPHJ had a very simple business model. If you were a business that used a scanner with a scan-to-email feature (which, these days, is just about any business copier/scanner), they would send you a letter. The letter would say “you need to pay us $1,000 per employee for use of our patent, or sign a letter swearing you don’t ever use scan-to-email, with a penalty of $1,000 per employee if you didn’t tell the truth.”

And MPHJ sent out more than 9,000 of these letters to small businesses. (According to the FTC, they specifically targeted businesses with 20-99 employees.)

The small businesses reacted in various ways. Some ignored the letters. Some paid up. But ultimately, it wasn’t reasonable for them to take on the burden of an expensive lawsuit or even a less expensive IPR, given that the amount at stake was always less than the cost of even filing an IPR. However, the way in which they operated did draw attention from the FTC and State Attorneys General, who successfully targeted the way in which MPHJ conducted their campaign. But simply targeting the enforcement approach wasn’t enough to shut down MPHJ.

[...]

MPHJ demanded around $1,000 per employee for a license. That means that the amount demanded from any given target was likely lower than the cost of an IPR, much less the cost of litigation, meaning that there was little incentive for any single MPHJ target to fight back. The companies that actually made the scanners that MPHJ claimed infringed might have had the financial incentive to fight back. But if IPR didn’t exist, those companies would have needed their customers to start fighting in court, at which point they could try to individually defend each of the 9,000 customers MPHJ sued. After several years of litigation, the manufacturer might be able to obtain a judgment of invalidity in a trial. Only at that point would other customers be safe.

Instead, they could file an IPR challenging the validity of the MPHJ patents. This enabled manufacturers to defend all small businesses using their products with a single action. IPR’s efficiency allowed the scanner makers to avoid duplication of litigation costs while also allowing them to protect their customers, the end users of the technology.

No one should have to worry that using a product they bought off the shelf at the office supply store in the way it’s designed to be used will result in a demand letter from a patent troll. IPR helps to prevent exactly that situation, allowing manufacturers to protect their end users.


In our next post we'll deal with PTAB, for there's a SCOTUS decision on the way about it. PTAB's fate/future is probably safe, but we must keep abreast of what the trolls' lobby is doing in an effort to undermine PTAB.

Recent Techrights' Posts

Daniel Pocock elected on ANZAC Day and anniversary of Easter Rising (FSFE Fellowship)
Reprinted with permission from Daniel Pocock
Ulrike Uhlig & Debian, the $200,000 woman who quit
Reprinted with permission from disguised.work
Girlfriends, Sex, Prostitution & Debian at DebConf22, Prizren, Kosovo
Reprinted with permission from disguised.work
Martina Ferrari & Debian, DebConf room list: who sleeps with who?
Reprinted with permission from Daniel Pocock
 
Joerg (Ganneff) Jaspert, Dalbergschule Fulda & Debian Death threats
Reprinted with permission from disguised.work
Amber Heard, Junior Female Developers & Debian Embezzlement
Reprinted with permission from disguised.work
[Video] Time to Acknowledge Debian Has a Real Problem and This Problem Needs to be Solved
it would make sense to try to resolve conflicts and issues, not exacerbate these
[Video] IBM's Poor Results Reinforce the Idea of Mass Layoffs on the Way (Just Like at Microsoft)
it seems likely Red Hat layoffs are in the making
IRC Proceedings: Wednesday, April 24, 2024
IRC logs for Wednesday, April 24, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Links 24/04/2024: Layoffs and Shutdowns at Microsoft, Apple Sales in China Have Collapsed
Links for the day
Sexism processing travel reimbursement
Reprinted with permission from disguised.work
Microsoft is Shutting Down Offices and Studios (Microsoft Layoffs Every Month This Year, Media Barely Mentions These)
Microsoft shutting down more offices (there have been layoffs every month this year)
Balkan women & Debian sexism, WeBoob leaks
Reprinted with permission from disguised.work
Links 24/04/2024: Advances in TikTok Ban, Microsoft Lacks Security Incentives (It Profits From Breaches)
Links for the day
Gemini Links 24/04/2024: People Returning to Gemlogs, Stateless Workstations
Links for the day
Meike Reichle & Debian Dating
Reprinted with permission from disguised.work
Europe Won't be Safe From Russia Until the Last Windows PC is Turned Off (or Switched to BSDs and GNU/Linux)
Lives are at stake
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, April 23, 2024
IRC logs for Tuesday, April 23, 2024
[Meme] EPO: Breaking the Law as a Business Model
Total disregard for the EPO to sell more monopolies in Europe (to companies that are seldom European and in need of monopoly)
The EPO's Central Staff Committee (CSC) on New Ways of Working (NWoW) and “Bringing Teams Together” (BTT)
The latest publication from the Central Staff Committee (CSC)
Volunteers wanted: Unknown Suspects team
Reprinted with permission from Daniel Pocock
Debian trademark: where does the value come from?
Reprinted with permission from Daniel Pocock
Detecting suspicious transactions in the Wikimedia grants process
Reprinted with permission from Daniel Pocock
Links 23/04/2024: US Doubles Down on Patent Obviousness, North Korea Practices Nuclear Conflict
Links for the day
Stardust Nightclub Tragedy, Unlawful killing, Censorship & Debian Scapegoating
Reprinted with permission from Daniel Pocock
Gunnar Wolf & Debian Modern Slavery punishments
Reprinted with permission from Daniel Pocock
On DebConf and Debian 'Bedroom Nepotism' (Connected to Canonical, Red Hat, and Google)
Why the public must know suppressed facts (which women themselves are voicing concerns about; some men muzzle them to save face)
Several Years After Vista 11 Came Out Few People in Africa Use It, Its Relative Share Declines (People Delete It and Move to BSD/GNU/Linux?)
These trends are worth discussing
Canonical, Ubuntu & Debian DebConf19 Diversity Girls email
Reprinted with permission from disguised.work
Links 23/04/2024: Escalations Around Poland, Microsoft Shares Dumped
Links for the day
Gemini Links 23/04/2024: Offline PSP Media Player and OpenBSD on ThinkPad
Links for the day
Amaya Rodrigo Sastre, Holger Levsen & Debian DebConf6 fight
Reprinted with permission from disguised.work
DebConf8: who slept with who? Rooming list leaked
Reprinted with permission from disguised.work
Bruce Perens & Debian: swiping the Open Source trademark
Reprinted with permission from disguised.work
Ean Schuessler & Debian SPI OSI trademark disputes
Reprinted with permission from disguised.work
Windows in Sudan: From 99.15% to 2.12%
With conflict in Sudan, plus the occasional escalation/s, buying a laptop with Vista 11 isn't a high priority
Anatomy of a Cancel Mob Campaign
how they go about
[Meme] The 'Cancel Culture' and Its 'Hit List'
organisers are being contacted by the 'cancel mob'
Richard Stallman's Next Public Talk is on Friday, 17:30 in Córdoba (Spain), FSF Cannot Mention It
Any attempt to marginalise founders isn't unprecedented as a strategy
IRC Proceedings: Monday, April 22, 2024
IRC logs for Monday, April 22, 2024
Over at Tux Machines...
GNU/Linux news for the past day
Don't trust me. Trust the voters.
Reprinted with permission from Daniel Pocock
Chris Lamb & Debian demanded Ubuntu censor my blog
Reprinted with permission from disguised.work
Ean Schuessler, Branden Robinson & Debian SPI accounting crisis
Reprinted with permission from disguised.work
William Lee Irwin III, Michael Schultheiss & Debian, Oracle, Russian kernel scandal
Reprinted with permission from disguised.work