Bonum Certa Men Certa

Towards the End of Patent Trolls-Friendly Courts in the United States

USPTO panel



Summary: Texas and its epidemic of patent trolls (owing to trolls-friendly courts) may be enjoying its last months of exploitation and the patent law firms that are based there might soon need to relocate

THE USPTO is moving in the opposite direction of the EPO (which pursues the UPC). Tomorrow we'll publish a lengthy and detailed post about the FTC study, but today -- in preparation for that -- we shall remark on another aspect.



A recent article by Annalee Newitz spoke about Lee Cheng, who made a name for himself by fighting patent trolls to death and even compelling them to pay Newegg's legal fees after the trolls had lost (a lengthy and expensive process). Newegg was praised here in the past for this (one example among half a dozen from last year) and "“Patents are bullshit,” says Newegg legal chief" is the headline of this new article. To quote from it:

Lee Cheng is one of the few attorneys to fight back against patent trolls and prevail. And at the latest Ars Live event, we talked to him about his most famous case, how people can fight patent trolls today, and what the future of patent abuse will look like in coming decades. His answers, as expected, were incredibly candid and hilarious.

In 2007, a patent troll known as Soverain had already gotten millions of dollars out of The Gap and Amazon for their online shopping cart patent when they hit Newegg with a suit. Cheng's colleagues in the legal community said you'd better just pay up—this patent is legit. Cheng didn't see it that way. Newegg had just reached a billion in sales, and he thought this piece of litigation would be the first of many lawsuits brought by companies that wanted a piece of Newegg's success. And sure enough, soon after the shopping cart claim, Newegg was hit with patent claims on several aspects of online search. Cheng decided he wasn't going to lie down and take it. He thought he could win on appeal if he could just make it through the courts in the Eastern District of Texas, where 40 percent of patent infringement claims are brought.


Remember that Newegg got dragged down to Texas, and notably the Eastern District of Texas, which is probably the world's most notorious (globally). It actually advertises its bias that favours litigants with abstract patents. That's why many companies and trolls file their patent cases in there. On the fifth of October we saw United for Patent Reform stating that "85% of the 33 patent lawsuits filed today were filed by patent trolls. It's time for Congress to take action to #fixpatents!"

How many of these were filed in Texas?

Patent Progress wrote that "The Eastern District of Texas Is Still Home for Patent Trolls" (also under the #fixpatents hashtag) and pointed to this new article from Mr. Levy (cross-posted at the Huffington Post). To quote some bits:

The year is mostly over, so I thought I would take a look and see what’s going on in the Eastern District of Texas. The Eastern District of Texas still has more patent cases filed there than any other district at 1,224. Some 794 (that’s about 8% of all patent cases) of those cases were assigned to Judge Rodney Gilstrap, in the Marshall Division — almost 10 times more than any judge outside the Eastern District. That’s more than twice as many as the entire District of Delaware (311 cases), even though most big companies are incorporated in Delaware.

In fact, Judge Gilstrap, a judge in a small town in Texas, is handling about as many patent cases as Delaware, California, Illinois, and New Jersey combined.

Marshall, Texas has a population of about 25,000 people. It has no major research facilities, no major industries, and has not produced any major innovations that I can identify. And yet it hosts more patent litigation than any other place in the country, by an order of magnitude.

I’m sure Marshall is a charming town with nice people, but there’s simply no reason for so much patent litigation to go through there. We might as well have patent litigation go through Bangor, Maine, where I went to high school. The town is about the same size, but it has better food and it’s near the coast. Bangor also has a modern airport and a life-size statue of Paul Bunyan.

Seriously, it’s obvious that something is wrong here, even if you don’t know the details. Patent trolls wouldn’t be flocking to a small town with no airport unless they had good reason.

And they do have good reason.


Levy is right to single out or point out Mr. Gilstrap for reasons that we covered here before. In another new article, this one from Patently-O, they alluded to the VENUE Act [1, 2] by suggesting change to patent venue and naming the VENUE Act explicitly:

Earlier this year, we presented some initial results of our study of what might happen if patent venue reform took place. Since then, Senator Flake (R-Az) introduced the VENUE Act of 2016, and last month, petitioners, led by a group including James Dabney and John Duffy, filed a petition for writ of certiori in the TC Heartland case in the Supreme Court. Amicus briefs are due October 17, 2016 and Kraft’s brief is due on November 16, 2016.

To support these deliberations, we examined the history of the patent venue law and presented some statistics about plaintiff venue preferences for the Eastern District (for even more statistics on this point see the new paper by Brian Love and James Yoon). Additionally, we empirically modeled both reforms by randomly selecting 939 cases from 2015, and making our best guess as to where cases would have been filed under the proposed rules, assuming they would have been filed at all. Since 2015, the overall number of patent cases has declined, about 20% YTD based on data from Lex Machina (4,216 cases by this time last year vs. 3,369 today). The Eastern District of Texas has made a number of changes and its share is also down from 44% in 2015, to 35% 2016 YTD (30% in 1Q, 36% in 2Q, and 38% in 3Q); the next closest district (Delaware) has seen about 9% of filings, based on data from Lex Machina.


After the FTC study that we shall mention separately it seems more likely that the VENUE Act will become a reality, or folded into an existing/prospective patent reform bill.

Speaking of patent trolls, even universities are feeding them now. Here is MIP sort of supporting the practice, as if weaponising universities that are funded by the public and turn into trolls that tax the same public is a good thing. No wonder MIP did this, with firms like McKool Smith as 'company'; To quote: "The increase in university patent lawsuits in recent years and strategies for winning cases were among the issues discussed by presenters in the webcast "University Patent Licensing and Enforcement", hosted by Managing IP in association with McKool Smith on September 26."

These are euphemisms for what often boils down to trolling, if not direct then indirect, e.g. by passing patents to trolls like Intellectual Ventures -- now at the epicentre of the collapse of software patents in the United States (more on that in an imminent long post as well).

If the VENUE Act passes, or even gets incorporated into a future patent reform bill, then Texas can say goodbye to a lot of its parasitic business.

Recent Techrights' Posts

How to Dehumanise a Triple National
Don't be easily incited against those who sacrifice a lot to inform the public of suppressed topics
IBM CEO Says IBM Won't be Bankrupt by 2028 or 2029 (When He Reaches Retirement Age)
IBM has no path to survival
Big Blue's Quiet Axe - Poem Regarding IBM "RAs"
No idea who posted this, but it is profound
Growing Proportion of Linux Commits Being Made by LLMs Not a Sign of LLMs Working, It's a Sign of Linux Development Being Shifted From Community to GAFAM and Other Slop Pushers
antagonist became apologist
Worse Than "Taking Your Job", the Slop Pyramid Scheme Will "Take Your Pension"
This will not end well
 
In Chile, GNU/Linux Approaches 4%
Let's see if it can exceed 5% by year's end
No Room for Misogyny and Incels in Free Software
How can we ever trust men whose own family and their own partners cannot trust?
In El Salvador, ChromeOS and GNU/Linux Now Measured at Around 12%
signs of gradual and steady adoption of GNU/Linux
Software in the Public Interest (SPI) Starts Spending Big Money in an Effort to Resist Lawsuit From Daniel Pocock
They've lost over half a million dollars in the latest 3 years
The Establishment, Cambridge, Steve McIntyre & Debian suicide cluster
Reprinted with permission from Daniel Pocock
Links 05/08/2026: Internet Archive Harmed by Slop Bot, "EBay And Former Execs Agree to Pay $56 Million For Trying to ‘Crush’ a Journalist"
Links for the day
Luxembourg and Software Freedom
Luxembourg's adoption of GNU/Linux has quite consistently been higher than the European average
The Free Software Foundation (FSF) Web Site is Online, GNU's Site Having Issues (Ongoing Issues)
We hope they can rectify the issues with the GNU Web site
Freedom Includes the Liberty to Disagree (and be Listened to, Not Censored)
Freedom is our collective strength
Tanzania: GNU/Linux Now Seen on 8% on Desktops/Laptops (User Clients)
numbers have more than doubled
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, August 04, 2026
IRC logs for Tuesday, August 04, 2026
Gemini Links 05/08/2026: Being Good, Tildeverse and Tilde.pink, Games
Links for the day
Links 04/08/2026: GAFAM Expressing Concerns About Dangerous Disinformation by Slop, Bill Epsteingate-Connected Litigation Firm Salivating Over Europe
Links for the day
Gemini Links 04/08/2026: Root Shell and "Duty of Care"
Links for the day
Alternate Data (Not IBM's Headcount) to Show Mass Layoffs' Effect at IBM (Despite Many Acquired Workers Via M&A)
mass layoffs at Hashicorp and at Confluent this year (media did not cover either).
Abundance of Fake (Sometimes Paid-for) 'News' About IBM Will Discredit the Media as a Whole
In 'the news' today
Microsoft is Trying Vapourware Again (to Keep Developers and Gamers From Fleeing)
For XBox, the main thing over the horizon is additional layoffs
statCounter Reckons 12.33% of Web Traffic in Gambia Can be Attributed to GNU/Linux, Even 15% If Adding ChromeOS
Will this be sustainable?
Reminder: The Pedophilia Problem Comes From the Accusers
Attacks on Richard Stallman are a distraction; his accusers are themselves the culprits
SLAPP Censorship - Part 139 Out of 200: Solicitors Regulation Authority (SRA) Needs More Public Scrutiny (New Management Changed Nothing, It's Costing a Lot of Taxpayers' Money)
millions or maybe billions of pounds wasted
Rumours of Further IBM Shutdowns
IBM is going out of existence
Brigading Against Women - Part II - Threatening Women Using the Human Rights Tribunal of Ontario (HRTO) and Then False Threats Miscarrying the Name of a Court
In this series we intend to show the threats, the outcomes of those threats, the response to those threats
Collapse of MElon Companies a Taste of What's to Come for Slop Bubble and GAFAM (Trillions in Debt, Justified as Slop "Investments")
One good example of this was SpaceX
The 'Hyperinflation' in Hardware Dooms Video Hosting (Very Large Files)
a terabyte of video files would be expensive
Rumours of Silent Layoffs in Microsoft This Month (August 2026), PIPs and Global Voluntary Separation Agreement (GVSA), aka "Buyouts"
Will any investigative journalism follow or just shallow puff pieces and LLM trash from slopfarms?
Links 04/08/2026: "Framework for Musician Burnout" and Alexa+ "is a Buggy Embarrassment"
Links for the day
Signs That XBox as a Console is Coming to an End, Windows Gaming Will be Called "XBox"
"XBox" is the next "Surface"
Microsoft's Share in Search Falls Sharply in Europe
The layoffs at Microsoft's Bing will carry on
Romania: GNU/Linux Reaches 4% (Less Than EU Average)
We expect this same upward trend to carry on
Microsoft Sites or Sites Sponsored by Microsoft Angry That GNU/Linux is Gaining
The Microsofters cannot easily dismiss reports of GNU/Linux growth as "bots" or just allege that statCounter alone is wrong
Ableism in the Free Software Movement Typically Comes From GAFAM Operatives and Proprietary Software Apologists
And their hired guns
Afghanistan: GNU/Linux Steadily Rises to 9%
Windows is steadily declining
IBM Innovation: It Has Invented New Methods of Silent Layoffs or Secret RAs
How IBM disguises mass layoffs now
Many Anniversaries
Many anniversaries in quick succession
LLM Slop Won't Replace People and Jobs (in the Long Run)
At the end of the day, people who know their job offer more useful information, whereas LLMs waste people's time (typically an 'externality' to the entity deploying chatbots)
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 03, 2026
IRC logs for Monday, August 03, 2026
Over 3,500 Known Gemini Capsules Accessible and Active According to Lupa
It finally happened this morning
Gemini Links 04/08/2026: Library Cards, Dead Ends in Software Development, and DOS on USB Key
Links for the day
IBM Has Embraced and Rewarded Liars
The IBM culture vanished
statCounter Estimates GNU/Linux at 5.32% in Kuwait, Years Ago It Was Near 0%
Kuwait rose to fame in the 1990s because of a war
Swatting People Who Write About Corruption, Misogyny, Criminal Misuse of Funds
we've given ourselves a decade to cover all those stories
GNU/Linux Rises Above 6% in Colombia
In Colombia, which is a large south American country, GNU/Linux has risen steadily in recent years
SLAPP Censorship - Part 138 Out of 200: Garrett Has Basically "Lost" and It is "Embarrassing" to Them
they just wound up costing hundreds of thousands of pounds
Gemini Links 03/08/2026: Great Exodus, xkcd as Text, and Dead Ends
Links for the day
GNU/Linux Has Surged to 6.3% in Madagascar
Madagascar's adoption of Free software is a subject we covered a lot in past years
Microsoft's Slop Bet is Killing the XBox Even Faster
LLMs destroy almost anything they touch
The Cyber Show on "Weaponised Antisocial Technology"
by Andy
Alexandre Oliva on Slippery Slop (LLMs)
By Alexandre Oliva
RMS Won the Argument and Now GNU Wins Over Computer Users
He can look back at nearly 43 years of GNU and say, "I was right..."
statCounter Corrects GNU/Linux Estimates, Now Measured at 9% Worldwide
Windows has sunk like a rock
GNU/Linux-Centric Blogs Belatedly Pick Up News About GNU/Linux Gains: 4-8% Depending on the Surveyor
more people will get curious and give it a go
Links 03/08/2026: Strike By Flight Attendants (WestJet) and Greedflation
Links for the day
Links 03/08/2026: EU Curtailed Slop, Frank Zappa Recalled
Links for the day
Daniel Pocock on Sky News This Morning
No harm done
Morten Linderud Has Helped Microsoft Put Locks (and Kill Switches) on the PCs of Arch Linux Users
"the first rule of "secure boot" is to disable "secure boot"
In Poor Peru, GNU/Linux Surges From 1% to 5% in a Few Years
Windows is dying
All Social Control Media is a Weapon (Against Its Users, Serving the Real Owners)
That social control networks are weaponised isn't a new concept
Fanning the Flames of Journalism
This week we have several surprises coming
Forcing the Slop Bubble to Implode Fully to Save the Economy From an Even Greater Collapse and Societal Harm
Let's blow up the bubble. The sooner, the better
GNU/Linux at 8% in Croatia
somewhat of a GNU/Linux adoption hotbed
It's Easy to Predict Microsoft Layoffs for October 2026 Because of the Financial 'Results' That Month (More Faking, More Secret Debt and Buzzwords to Perfume This Debt as "Investment")
From what we've read, Microsoft is silently laying off people this month based on LITE, which leads to PIPs
Not Hard to Guess Who Will Pay for IBM's Collapse (Due to False Statements Made to Shareholders), Red Hat May Disappear
IBM's leadership is never being punished for its failures
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 02, 2026
IRC logs for Sunday, August 02, 2026
Gemini Links 03/08/2026: Collectibles, Cities of the Red Night, and Lali Lambda
Links for the day