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

Sounds Like IBM is Preparing for Mass Layoffs/Redundancies in Red Hat, Albeit in "PIP" (Performance Improvement Plan) or "Relocation" Clothing
This isn't the "old" IBM; they're applying pressure by confusion and humiliation
Gemini Links 17/04/2025: Role of Language and Back to Mutt for E-mail
Links for the day
 
Links 19/04/2025: "Infantilization at Big Tech" and LLM Slop Abused in Defiance of Workplace Rules/Policies
Links for the day
Gemini Links 19/04/2025: Palm Addiction and Real Experts
Links for the day
Egypt is Controlled by Google, Not Microsoft
Moving from Microsoft to Google is not the answer
Microsofters Say They Cannot Find a Job (That They Want) Because of Techrights, But Techrights Merely Reported on Their Behaviour
Quit pointing the finger at people who are recipients of abuse or merely mention the abuse
Free Software and Standards - Not Marketing Blitz - Needed Amid Growing Severity of Dependency on Hostile Suppliers (or Another Country's Sovereignty)
ZenDiS can be described as the "Center for Digital Sovereignty of Public Administration"
When It Comes to the Web, Google is Evil and It Destroys the Web's Integrity With LLM Slop
Even academia, which is meant to keep standards high, is being lured into LLM slop
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Friday, April 18, 2025
IRC logs for Friday, April 18, 2025
Links 18/04/2025: "Fentanylware (TikTok) Exodus Continues", Chinese Weapons Allegedly in Russia Already
Links for the day
Gemini Links 18/04/2025: Price of Games and State of Tinylog
Links for the day
"Sayonara" (さよなら), Microsoft
Windows had fallen below iOS in some countries
Links 18/04/2025: Layoffs at Microsoft Infosys and Qt Becoming Increasingly Proprietary (Plus Slop)
Links for the day
Google News is Dying
treating MElon's algorithmic/biased site as a source of verified news
Microsoft's Attack Dogs Have Failed. Now What?
It would be utterly foolish to assume that Microsoft has any intention of changing
All Your "Github Projects" Will be Gone One Day (Just Like Skype)
If you have code you wish to share and keep, then start learning how to do so on your own
To Understand Who's Truly Controlling You Follow the Trail of Censorship (or Self-Censorship)
Do not let media steal and steer the narrative; CoCs are not about "social justice", they're about corporate domination
Fedora Already Lost Its Soul Under IBM
Fedora used to be very strict compared to many other distros and it had attracted very bright volunteers
Microsoft is Still Attacking GNU/Linux and the Net
Microsoft bribed the government using money that did not even exist
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, April 17, 2025
IRC logs for Thursday, April 17, 2025
Gemini Links 18/04/2025: Pinephone Pro and Linux is too Easy
Links for the day
Links 17/04/2025: Calling Whistleblowers at Microsoft, Slop Doing More Harm Everywhere
Links for the day
Links 17/04/2025: Russian Bot Farms Infect TikTok (Which US Government and SCOTUS Decided to Block January 19), US Hardware Stocks Crash Due to Tariffs
Links for the day
Gemini Links 17/04/2025: Sticking to Free Software, Smolnet, and Counting the Reals
Links for the day
Open Source Initiative (OSI) Privacy Fiasco in Detail: In Conclusion and Enforcement Action Proceeds Against OSI at the California Privacy Protection Agency (CPPA)
There's too much to cover in one single part
When You Fail to Filter Your Clients You End Up SLAPPing Reporters on Behalf of Bad People From Microsoft in Another Continent
“American Psycho”
Links 17/04/2025: LayoffBot and Tesla Cheats Buyers
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, April 16, 2025
IRC logs for Wednesday, April 16, 2025