--Dean Drako, Barracuda's CEO
EARLIER today we found two interesting reports, one from Dale Walker and another from Joe Mullin, who has been tracking and writing about patent trolls for about a decade. Following TC Heartland we certainly hope that things will change; patent trolls will hopefully altogether go out of business [sic] some time soon. Extortion and racketeering have no value/benefit to the economy.
The patent-licensing company, Wetro Lan LLC, owned US Patent No. 6,795,918, which essentially claimed an Internet firewall. The patent was filed in 2000 despite the fact that computer network firewalls date to the 1980s. The '918 patent was used in what the Electronic Frontier Foundation called an "outrageous trolling campaign," in which dozens of companies were sued out of Wetro Lan's "headquarters," a Plano office suite that it shared with several other firms that engage in what is pejoratively called "patent-trolling." Wetro Lan's complaints argued that a vast array of Internet routers and switches infringed its patent.
As claim construction approached, Kaspersky's lead lawyer Casey Kniser served discovery requests for Wetro Lan's other license agreements. He suspected the amounts were low.
On a post to his personal blog detailing the victory against Wetro Lan, founder and CEO Eugene Kaspersky says his company has now defeated five claims from patent assertion entities, including the infamous claims from Lodsys, a much-maligned patent holder that sent demand letters to small app developers. Lodsys dropped its case against Kaspersky right before a trial.
While the company has spent plenty in legal fees, its total payout to so-called "trolls" has been $0. Firms that engage in "trolling" know that companies often simply settle instead of dealing with the costs and pain of a court litigation.
Chinese appliance maker Haier has filed an antitrust lawsuit in the Northern District of New York against MPEG LA and six licensors that are part of its ATSC patent pool. The complaint accuses the companies and pool administrator of a range of anti-competitive practices affecting the market for televisions, the effect of which it says is to disadvantage implementers like Haier which compete on price at the lower end. For that reason, Chinese companies – many of which have argued that their low margins entitle them to different patent licence terms – will be interested to see how far this case goes.