Bonum Certa Men Certa

The Latest Three Stories Which Show Why the US Supreme Court Must Stop Patent Trolls

How long and how much more will it take for the Supreme Court to realise there is a profound issue in Texas?

Rodney Gilstrap



Summary: The lack of justice in the American patent system, where trolls receive favourable treatment from particular judges and one bogus patent (now invalid) can earn a person over $45 million in 'protection' money, necessitates firm and decisive intervention from the US Supreme Court

Federal Circuit Once Again Overrules Mistakes by the Kangaroo Patent Court of Rodney Gilstrap in the Eastern District of Texas



Kangaroo courts are not monopolised by the EPO and the USPTO hasn't a monopoly on bad patents, either (thankfully, the USPTO is actually improving and lowering the incentive for trolls). The US Supreme Court, together with CAFC below it, already do a fine job, further aided by PTAB (the appeals board) for quicker and cheaper determinations against bad patents.



When Apple celebrates the death of bad patents we too are happy, even if we are far from friends of Apple (we used to call for boycotts). Apple has just defeated Smartflash and there are a lot of articles about this, especially or initially in pro-Apple sites. Headlines include "Apple has $533m verdict against iTunes software patents thrown", "Apple won't have to pay $533 million to an iTunes patent troll", "U.S. appeals court tosses patent verdict against Apple", and "Apple tastes victory against Smartflash at Federal Circuit".

"When Apple celebrates the death of bad patents we too are happy, even if we are far from friends of Apple (we used to call for boycotts).""This ruling isn't surprising," one of the above articles states, "as US District Judge Rodney Gilstrap ordered a damages retrial, saying the jury's view of Apple's infringement might have been confused by his instructions on how properly to calculate royalties."

But the pro-trolls Judge Rodney Gilstrap did not in fact dispute a liability. To him, it was just a matter of how much money would be paid. First to cover the news, as far as we were able to see, was Michael Loney of MIP. He wrote about it as early as yesterday, noting that CAFC had found yet another ruling from the notorious Eastern District of Texas to be bunk. "The Federal Circuit has found invalid three Smartflash patents," he wrote, "reversing the Eastern District of Texas."

Eolas Driven Out of the Eastern District of Texas



There is another important development down in Texas and Joe Mullin probably wrote the best report about it (Mullin is quite the expert in this domain). To quote Mullin:

Eolas Technologies, which has been called a "patent troll," has continued to file against big companies, even after losing a landmark 2012 trial. But following an appeals court order (PDF) last week, Eolas will have to pursue its lawsuits in California—not its preferred patent hotspot of East Texas.

As of Friday, Eolas' lawsuits against Google has been transferred to the Northern District of California. The move could reduce Eolas' chances of winning a settlement or verdict since East Texas courts have been viewed by some as favoring patent holders. Similar lawsuits against Amazon and Wal-Mart remain in East Texas, for now.


Michael Loney wrote about it too, noting that CAFC is potentially moving trolls out of that notorious Eastern District of Texas (even before the Supreme Court rules on TC Heartland LLC v Kraft Foods Group Brands LLC). To quote:



Google’s request for a writ of mandamus to transfer a case brought by Eolas Technologies to the Northern District of California from the Eastern District of Texas has been granted, with the Federal Circuit citing “a clear abuse of discretion”



Eolas was mentioned here as far back as one decade ago and many more times since. It's definitely a patent troll, but Mullin put the word "troll" (in the headline) and "patent troll" (in the body) within scare quotes, perhaps fearing legal action against the publisher (his employer).

Software patents, as in the above case, are bunk, but it's very expensive (usually too expensive) going to court to show it (especially if there are appeals). This means that most defendants will silently fold and pay the Mafia (or troll) 'protection' money. Insistent and persistent aggressors or trolls, some of whom are well-funded, will just file more and more motions until the defendant -- even if repeatedly deemed innocent -- decides that it's simply cheaper to settle. It means that wealth trumps justice and it can be exploited time after time, by simply choosing vulnerable litigation targets which are almost certainly going to buckle.

"Software patents, as in the above case, are bunk, but it's very expensive (usually too expensive) going to court to show it (especially if there are appeals)."Speaking of software patents, this tweet says that "Salesforce tries to patent Records Management......quick take" (in an image).

Erich Spangenberg Turns Out to be a Patent 'Fraud'



In the above cases we see deep-pocketed companies like Google and Apple fighting back, again and again, simply because they can afford it. So can smaller (but still very large companies) such as Newegg, which already spent millions of dollars on very few patent cases -- and that's just in legal fees!

According to Mullin's other new report, mega-troll Erich Spangenberg went after Newegg and finally (belatedly) lost. That's another software patent dead and we can expect more to come; it's expensive to prove the invalidity. The USPTO should clean up this (its own) mess. PTAB helps towards that. Mullin wrote:

Patent-holding company TQP Development made millions claiming that it owned a breakthrough in Web encryption, even though most encryption experts had never heard of the company until it started a massive campaign of lawsuits. Yesterday, the company's litigation campaign was brought to an end when a panel of appeals judges refused (PDF) to give TQP a second chance to collect on a jury verdict against Newegg.

The TQP patent was invented by Michael Jones, whose company Telequip briefly sold a kind of encrypted modem. The company sold about 30 models before the modem business went bust. Famed patent enforcer Erich Spangenberg bought the TQP patent in 2008 and began filing lawsuits, saying that the Jones patent actually entitled him to royalties on a basic form of SSL Internet encryption. Spangenberg and Jones ultimately made more than $45 million from the patent.


Will Spangenberg now refund the extortion money (more than $45 million), plus legal expenses? Or will this be another case of an invalid patent costing a fortune to countless companies, even though they were innocent all along because this patent was bogus?

We certainly hope that the Supreme Court is watching all these cases and will take them into account later this year when TC Heartland can become the new "patent killer" (precedent).

Recent Techrights' Posts

GitHub the Company Has, in Effect, Just Died (Time to Look for Alternatives)
To Microsoft, what's left of GitHub after dismantling/folding it is some "training set" (people's code, without permission to "train" i.e. misuse under the guise of "GenAI" plagiarism)
Linux Foundation Says "Housekeeping", "Hung", "Normal", "Native Feature/Support" and "Girl/Girls" Are Offensive Words
Bombing people is OK, just use the right "terms"
It Looks More Like Microsoft GitHub Layoffs
GitHub is just losing loads of money
 
Slopfarms Slopping Away at "Linux" and Spreading Microsoft Misinformation
Slopfarms don't comprehend this as they lack actual comprehension, they're just parrots
Links 12/08/2025: Science, Hardware, and Ukraine Excluded From Negotiations About Its Future
Links for the day
Gemini Links 12/08/2025: Meditation, OpenStreetMap, Smolweb, and More
Links for the day
Google News is Dying: Most of Its Top Stories Now Are LLM Slop With Slop Images (i.e. 100% Fake 'Content')
Google News has been drowning in this sort of stuff for quite some time
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, August 11, 2025
IRC logs for Monday, August 11, 2025
Our Predictions Were Right: GitHub Dying as Losses Pile Up (as a Company It Cannot Continue to Exist, It's Not 'Free Hosting')
GitHub always lost money
Links 11/08/2025: Meritless Twitter Suspensions and Disney Scraps Deepfake Dwayne Johnson
Links for the day
Gemini Links 11/08/2025: Upgrading Debian Bookworm and Better Quality PDFs From Gemini Pages
Links for the day
Currys PCWorld Lied a Decade Ago, 10 Years Later It Still Effectively Voids Your Warranty for Installing GNU/Linux Despite It Being Increasingly Mainstream
Microsoft gatekeepers
Team GNOME Has Libeled Me for Nearly 20 Years
we are not dealing with sane people
Experience With Airlines in 'Web Sites' and in 'Apps'
In a lot of ways, Stallman Was Right about what JavaScript would turn out to be
Open Does Not Mean Free
wiser to ask if some program is freedom-respecting
The Register MS Takes Money From Companies Banned by the Biden and Trump Administrations (National Security Risk)
today's sponsor
Sabotaging GNU/Linux PCs (and Users) is Not a 'Joke'
maybe cruelty is the very objective
How We Process Screenshots of Slop to Suitably Tag Them as Slop
everything is a single command
Links 11/08/2025: Data Breaches, Politics, and Climate
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, August 10, 2025
IRC logs for Sunday, August 10, 2025
Gemini Links 11/08/2025: Tea Caffeine Hot and Super ZZ Zero
Links for the day
Slopwatch: LinuxSecurity, Brian Fagioli, and Other Serial Sloppers
Maybe Microsoft wants to dub this "Web5"
Gemini Links 10/08/2025: Residents Management Company, Automation, and Politics
Links for the day
Links 10/08/2025: AOL Ending Dial-up
Links for the day
Seductive Mirage or Allure of Complex, Proprietary Coffee Machines (or Similar White Elephants)
Software is a lot like those things
Links 10/08/2025: Webrings, “AI Sunglasses” and “AI Eyeglasses”, US Administration Intensifies Attacks on Science and Research
Links for the day
Sometimes Newer is Worse
We generally need to reject this dumb notion that "old" means bad
The Code Used to Make Techrights Fits on a Seventh of a Floppy Disk (or 100KB When Compressed)
For the sake of comparison I've just downloaded the latest version of WordPress. The ZIP file is 27.2MB in size, or ~27,200KB.
What They Tell Young Programmers
Coding in 2025
Simpler is Better When Simple is Enough
Over-complicating things to "sell" new versions is so 1990s
Links 10/08/2025: From Social Control Media to Prison, New Examples of Windows TCO
Links for the day
Sloppy Reporting About Slop, or How The Register MS Lowers Its Standards
Maybe the management isn't even aware of this
IBM's Strategy: Cull 'Expensive' Workers, Replace Them With Cheaper Ones
So far we saw not even one rebuttal or challenge to the claim of Red Hat layoffs scheduled for tomorrow
If You Attack Somebody Too Much You Legitimise and Strengthen That Somebody
at the end those attacks add up to a "martyr" status
The Man Who Helped Microsoft Kill Linux is Trying to Delay Our Lawsuits Against Him
By conservative estimates, and based on court documents submitted by them, they're prepared to spend over a million dollars on lawyers, fighting against me and my wife
Gemini Links 10/08/2025: Gen Con 2025 and Framework Laptop
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, August 09, 2025
IRC logs for Saturday, August 09, 2025