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

Almost Fully Caught Up
The EPO series will continue very soon, maybe tomorrow or on Tuesday
Links 02/11/2025: Another Halloween Bust and MAGA Regime Says Public Universities Should No Longer Hire 'Foreign' Employees
Links for the day
The Long-Coveted Milestone of 3,200 Active Gemini Capsules
Despite being away some days last week, about 50,000 Gemini requests were served each day, on average
Five More Days Till Techrights Party
We'll have many more batches of Daily Links as we catch up with a 'backlog' of news
Links 02/11/2025: More Nuclear Escalations and "Anti-Cybercrime Laws Are Being Weaponized to Repress Journalism"
Links for the day
Gemini Links 02/11/2025: "The Pragmatic Programmer", Perl New Features and Foostats
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, November 01, 2025
IRC logs for Saturday, November 01, 2025
Linux.com is Becoming Microsoft
They took a once-reputable site with a vast audience and turned it into a pile of trash
Microsoft Lunduke: People Pointing Out I'm a Bigot is a Badge of Honour
It's almost as if he openly admits being a troll and is proud of it
Oracle's Debt Continues Rising to All-Time Highs, The "Slop Bubble" is a Smokescreen for Larry Ellison
wishful-thinking bubble waiting to implode completely
News on the Web is Becoming Rare, Shallow, and Difficult to Find
To efficiently and rapidly find original and important news without underlying comprehension/understanding of the news (and its context) is a hard task
Slopwatch: Linux Journal, Serial Slopper, WebProNews, and More
getting back into the habit
The Cocaine Patent Office - Part III: European Patent Office Officials Cannot Claim False Identification
Corroborating with other sources is always desirable if possible. We shall do so later in this series.
Facebook's Debt Leaps to Over 51 Billion Dollars
A lot of this is a bubble, aside from the bubble the media irresponsibly dubs "AI"
Still Catching Up, Daily Links a Top Priority
Readers who have additional information about the EPO can send it along to us
3 Days Ago Over at Tux Machines...
GNU/Linux news
Links 01/11/2025: "Americans Are Defaulting on Car Loans at an Alarming Rate" While Many Left to Starve (SNAP)
Links for the day
Gemini Links 01/11/2025: FIFO and Gemini Age Survey
Links for the day
Why Does German Media Protect the EPO From Accountability for Cocaine?
Can we trust such media to properly inform the public?
Most of This Month Will Deal With EPO Scandals
A timeline of sorts
Links 01/11/2025: Microsoft Azure Goes Offline Again
Links for the day
Links 01/11/2025: Microsoft Distributes Malware Again, Radio Free Asia Shut Down by Dictator
Links for the day
November is Here, Anniversary Party This Coming Friday
Expect this site to return to its normal publication pace either by tomorrow or Monday
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, October 31, 2025
IRC logs for Friday, October 31, 2025
Gemini Links 01/11/2025: Synergetic Disinformation and Software Maintenance
Links for the day
IRC Proceedings: Thursday, October 30, 2025
IRC logs for Thursday, October 30, 2025
IRC Proceedings: Wednesday, October 29, 2025
IRC logs for Wednesday, October 29, 2025