Bonum Certa Men Certa

From East to West and Even Down South at the Eastern District of Texas Patent Trolls Are Losing Everything

Related: The Gradual Fall If Not Sudden Collapse of Patent Trolls Associated With Microsoft

Texas sign



Summary: Patent trolls that are accustomed to friendly judges, typically in the Eastern District of Texas, will be circling down the drain if the trend of "fee award" (to the vindicated defendant) continues

THE USPTO (plus courts) repels/drives away trolls while the EPO attracts/welcomes them. Such is the nature of the patent systems in 2017 and the difference seems to be getting more extreme as the EPO lobbies for UPC (trolls-friendly) whereas SCOTUS rules against patent trolls, e.g. TC Heartland regarding forum shopping at the Eastern District of Texas.



"Shipping & Transit LLC is not a new patent troll. Like many other trolls, it merely rebranded itself after plenty of negative publicity..."Well, earlier today we wrote about Shipping & Transit LLC and various other patent trolls. We would like to show that this new litigation terrain (or trolling dynamic which deters trolls) is exacerbating nationwide.

California



Shipping & Transit LLC is not a new patent troll. Like many other trolls, it merely rebranded itself after plenty of negative publicity; we wrote about it when it was known as Arrivalstar as this had gone on for years. Not only is this troll doomed in courts; some courts are forcing the troll to pay its victims. As the EFF put it last week (we somehow overlooked this announcement):

Shipping & Transit LLC, formerly known as Arrivalstar, is one of the most prolific patent trolls ever. It has filed more than 500 lawsuits alleging patent infringement. Despite having filed so many cases, it has never had a court rule on the validity of its patents. In recent years, Shipping & Transit’s usual practice is to dismiss its claims as soon as a defendant spends resources to fight back. A district court in California issued an order (PDF) this week ordering Shipping & Transit to pay a defendant's attorney's fees. The court found that Shipping & Transit has engaged in a pattern of “exploitative litigation.”

Shipping & Transit owns a number of patents that relate to vehicle tracking. We’ve written about its patent trolling on numerous occasions. In many cases, Shipping & Transit asserted its patents against businesses that simply sent email to customers with a tracking number. In other cases, it has sued municipal transport agencies and logistics companies.


Eastern District of Texas



"Gilstrap was mentioned here and elsewhere many times before. He is a big part of the problem because he presided over many of these cases."The situation is similar in the Eastern District of Texas (EDTX), which in May suffered the blow known as TC Heartland. The region will no longer attract quite so many trolls and lawyers, who typically attacked companies that aren't based in the Eastern District of Texas. Remember Rothschild Connected Devices Innovations LLC (RCDI)? There were many articles about it last month (we wrote about it earlier this month, exactly a week ago) and this from the EFF we also overlooked (published shortly after we had returned from holiday). The EFF takes note of the "patent-friendly Eastern District of Texas" and notes that there is a "fee award", i.e. just like the above, the "notorious patent troll practicing this model [is] to pay the defendant’s attorney’s fees." This ought to discourage trolling.

Patent litigation abuse thrives when patent trolls can force defendants into making a hard choice: pay the troll (even though the claim is absurd) or pay even more to your lawyers. This week, the Federal Circuit issued an encouraging ruling that will make it harder to use this gambit. Overturning a contrary decision by the patent-friendly Eastern District of Texas, the appellate court required a notorious patent troll practicing this model to pay the defendant’s attorney’s fees. The lower court had given the troll a pass because it dismissed its case early (which would give impunity to any troll that runs away when the defendant fights back). This week’s decision is an important win for victims of abusive litigation.


Meanwhile, the patent microcosm (litigator) is up in arms over reasonable responses. "My record on NPE's speaks for itself," Rachel wrote, "but I find Issa's language choice and singling out of a federal judge to be utterly unacceptable..."

Why? Gilstrap was mentioned here and elsewhere many times before. He is a big part of the problem because he presided over many of these cases. Here is what was actually said:

Yesterday, the House IP Subcommittee on the Courts, Intellectual Property and the Internet conducted a hearing entitled: The Impact of Bad Patents on American Businesses. During the hearing, Chairman Darrell Issa (R-Calif.) and House Judiciary Committee Chairman Bob Goodlatte (R-Va.) did not mince words expressing their displeasure with the EDTX's handling of the Supreme Court's recent decision in TC Heartland.

At the opening of the hearing, Chairman Issa explained that Judge Gilstrap's interpretation of TC Heartland "rejects the Supreme Court's unanimous decision" and is "an act I find reprehensible." It only got worse from there.

Chairman Issa explained that Judge Gilstrap may be more interested in serving the surrounding hotels and law firms, but that his recent decision outlining his TC Heartland analysis "does not serve justice" (ouch). Then, Chairman Issa finished up with: "it is not common for a member of Congress to call out an individual judge or a district, but after a long period of enrichment of a community by judges who consider that community's well being as part of their goal, I can reach no other conclusion..."


Indeed. They just said the truth. Bluntly. What's wrong with that? More politicians like that are needed.

"Another politician, Eric Lesser, has also decided to tackle patent trolls, even in the East Coast."

Massachusetts



Another politician, Eric Lesser, has also decided to tackle patent trolls, even in the East Coast. There was this news article about it on Friday: [via Tom Hochstatter‏]

When the internet security company Cloudflare decided to engage in all-out war with what it views as a “dangerous new breed of patent troll,” it found a receptive audience with Eric Lesser, who became the youngest state senator in Massachusetts when elected to office in 2014.

Senator Lesser, now a 32-year-old in his second two-year-term, was in the same Harvard fraternity as Facebook CEO Mark Zuckerberg, but says he didn’t really think much about tech until after working on President Obama’s first presidential election campaign in 2007. “I was traveling around with him and carrying suitcases and handling logistics for his traveling team,” he explains.

When the campaign was over, he joined then-senior advisor David Axelrod at the White House as a special assistant; he also became involved with the Council of Economic Advisors and more specifically with the agency’s chairman at the time, economist Austan Goolsbee. “That’s really when I started to get exposure to a lot of tech policy and some of the issues,” he says.


We are glad to see the political system, not just a bunch of large corporations, organising themselves against patent trolls. This will almost certainly assure the destruction of patent trolls, e.g. by taking away their lifeline with imposition of penalties (like defendants' legal fees).

"They will need to change career (if they can) and stop harassing people who actually make things."Expect patent trolls and their facilitators to get very, very angry and verbally aggressive, as we noted in our previous post. They will need to change career (if they can) and stop harassing people who actually make things.

Recent Techrights' Posts

BASIC Predates Microsoft by Over a Decade, Microsoft-Controlled Sites Like The Register MS Don't Want You to Know This
The state of the media is really bad when it relies a lot on oligarchs' money and is appointing editors who are working for oligarchs
Brian Kernighan, "Only Third to Dennis Richie and Ken Thompson" (UNIX), Agreed With Someone Who Said Rust Was Just Hype, Should Not Replace C
17 hours ago
Reminder: Microsoft's "Secure Boot" Certificate for "Linux" Will be Expired in One Week
Many PCs won't manage to 'rotate' to another certificate
 
Genini Links 05/09/2025: Community, ROOPHLOCH, and PITkit
Links for the day
Links 05/09/2025: Vaccine Sceptics Poison the Well, Two Exploited Vulnerabilities Patched in Android
Links for the day
Gemini Links 05/09/2025: Logitech Lift and DIY Gemini Servers
Links for the day
Links 05/09/2025: Sainsbury's Caught Spying on In-Store Shoppers and Microsoft "OpenAI is Using Legal Threats to Harass its Critics"
Links for the day
Analogies for "Memory Safety" in Rust
Don't worry, it's Rust! It can do anything!
"Many of the Red Hat Employees Are Still Looking for Work"
Shame on IBM's CEO
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, September 04, 2025
IRC logs for Thursday, September 04, 2025
Microsoft Started With Code Literally From The Trash, Nothing Has Improved Since
The reality is, there are systems and code that are reliable. But they're not Microsoft's.
Hypothesis That New McKinsey/Microsoft Executive Inside Red Hat Will Outsource Research and Development Operations to India (Like They Do in IBM)
IBM is floundering
Slopwatch: Scams, Fake Articles About "Linux", Plagiarism, and Worse
Perhaps some time soon the LLMs or the "Big LLMs" will run out of money (to borrow) and go offline, leaving those slopfarms in a tough place
Gemini Links 04/09/2025: Means of Production and Rusting Out
Links for the day
Links 04/09/2025: Science, Hardware, and Eyes on China
Links for the day
Gemini Links 04/09/2025: Digital Minimalism and Social Control Media
Links for the day
IBM's GNU/Linux Divestment, Based on Hard But Anecdotal Evidence (IBM Fails to Recognise How Much Money It Made and Can Still Make From "Linux")
Love us or hate us, a lot of what we've been saying about Red Hat under IBM turns out to be rather accurate
Links 04/09/2025: Massive Microsoft Staff Cuts (Barely Reported), "Strange Conspiracy Theory Is Reportedly Spreading Inside OpenAI"
Links for the day
Activists Can Win, But Keep an Eye on the Ball and on the Trophy
GitHub is dying, it was a loss-making trap, not free hosting
Gemini Links 04/09/2025: Katrina Remembered, Distracted Driving, and Virtual Economics
Links for the day
At This Point It's No Longer Matthew Garrett But People Who Fund Matthew Garrett (or Companies That Fund His SLAPPs Against My Wife and I)
The only thing worse than misogynists are misogynists who fail to respect other people's right to go on holiday
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, September 03, 2025
IRC logs for Wednesday, September 03, 2025
The UEFI 9/11 - Part VI - This Serious Harm Was Planned for Over a Decade, Not an Accident or Merely Some Misfortune
The term "Serious Harm" is legally meaningful here
GNOME Unfit for Diversity and Inclusion
GNOME's leadership is using "bad words"
Brodie Robertson Addressing the Recently-Discovered Comments
Most people probably knew nothing about this until he wrote a response
Red Hat QA Team "Had Shrunk by Half Over the Past Year." (After IBM Divestment)
If Red Hat's workforce is being moved to the East, then RHEL can become a national security problem
Slopwatch: "Open Source" and "Linux" News Faked, Made by Bots and Entered Into Google News
Spam combined with slop about "Linux" has entered Google News
Links 03/09/2025: Microsoft Causes Mass Layoffs Outside Microsoft Also, "Google Can Keep Paying for Firefox Search Deal"
Links for the day
Gemini Links 03/09/2025: calendar.txt, Alhena 5.3.1, and ROOPHLOCH
Links for the day
The Theory That the Man From McKinsey, Whom Red Hat Took From Microsoft a Month Ago as Executive, Wants 'Efficiency' (Lower Salaries)
So far... no "official" word
When Your Site's Articles Are Being 'Cheapened' by Slop as Feature Images
Dr. Farnell should become an advisor to The Register MS
Certificate Authority Let's Encrypt Drops to Only Half a Dozen Capsules and 0.2% of the Whole in Geminispace, Self-Signed is the Way to Go
It used to have hundreds, according to Lupa
Doing to Red Hat What They Already Did (and Still Do) to IBM
there seems to be a drive to hire cheaper staff, and it may be led by somebody Red Hat hired from Microsoft
Links 03/09/2025: Salesforce's Latest Mass Layoffs, 93% in Large Poll at The Register MS Say UK Government Should Dump Microsoft
Links for the day
Preparations for Our 19th Anniversary Have Already Begun
When we get back we'll probably sort out some balloons and venue for the next party
Pleased After 2 Years With team.blue
Moving from a Content Management System (CMS, dynamic) to a Static Site Generator (SSG) was a wise decision that made life so much easier
The Free Software Foundation (FSF) is Being Attacked by Organisations Jealous of Its Principled Stance and Longevity
Nobody is perfect, but imperfection does not instantaneously imply sinister intent
If You Reject the Google Verdict in the US, Then You Should Also Reject the "Modern" Web (Do Something About It)
Gemini Protocol is still open; it cannot be hijacked or subverted because it's frozen by design and by intention
Open Source Initiative IRS Filing: Almost All the Money is Corporate, Stefano Maffuli (Executive Director) Takes About a Quarter of That Money for Openwashing of "AI" Ponzi Scheme
OSI is currently little but a PR/marketing agency of Microsoft
Many People Are "Leaving" Red Hat, Even High-Level Managers
Something is definitely going on at Red Hat
Techrights Has Been Subjected to Calls of Violence (and Death Threats), It Never Condoned Violence
I have no sympathy for people who call violence "free speech" and then get in trouble
Condoning Violent Behaviour and "Free Speech"
perhaps Microsoft Lunduke lost touch with what constitutes violence
Takeaway From the Google Verdict: GAFAM Has Too Much Control (Even Over the US Government and Courts With Government Appointees)
Many people feel disappointed but hardly surprised by the verdict
The Free Software Foundation (FSF) Turns 40 in One Month
As noted a few days ago, several times in fact, many people now recognise the importance of the FSF's mission, even if most people don't know what the FSF is
Many Microsoft "Assets" Are Fabricated Baloney (to Game the Numbers)
At times it seems like what we deal with are many weak patents (on algorithms), valuations or speculations based on hype ("hey hi"), and stocks held by Microsoft and its own staff
"Voluntary" Layoffs at Microsoft (to Game the Numbers, Sugar-Coating a Crisis)
"Employees interested have until the end of October to volunteer."
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 02, 2025
IRC logs for Tuesday, September 02, 2025