Bonum Certa Men Certa

Towards the End of Patent Trolls-Friendly Courts in the United States

USPTO panel



Summary: Texas and its epidemic of patent trolls (owing to trolls-friendly courts) may be enjoying its last months of exploitation and the patent law firms that are based there might soon need to relocate

THE USPTO is moving in the opposite direction of the EPO (which pursues the UPC). Tomorrow we'll publish a lengthy and detailed post about the FTC study, but today -- in preparation for that -- we shall remark on another aspect.



A recent article by Annalee Newitz spoke about Lee Cheng, who made a name for himself by fighting patent trolls to death and even compelling them to pay Newegg's legal fees after the trolls had lost (a lengthy and expensive process). Newegg was praised here in the past for this (one example among half a dozen from last year) and "“Patents are bullshit,” says Newegg legal chief" is the headline of this new article. To quote from it:

Lee Cheng is one of the few attorneys to fight back against patent trolls and prevail. And at the latest Ars Live event, we talked to him about his most famous case, how people can fight patent trolls today, and what the future of patent abuse will look like in coming decades. His answers, as expected, were incredibly candid and hilarious.

In 2007, a patent troll known as Soverain had already gotten millions of dollars out of The Gap and Amazon for their online shopping cart patent when they hit Newegg with a suit. Cheng's colleagues in the legal community said you'd better just pay up—this patent is legit. Cheng didn't see it that way. Newegg had just reached a billion in sales, and he thought this piece of litigation would be the first of many lawsuits brought by companies that wanted a piece of Newegg's success. And sure enough, soon after the shopping cart claim, Newegg was hit with patent claims on several aspects of online search. Cheng decided he wasn't going to lie down and take it. He thought he could win on appeal if he could just make it through the courts in the Eastern District of Texas, where 40 percent of patent infringement claims are brought.


Remember that Newegg got dragged down to Texas, and notably the Eastern District of Texas, which is probably the world's most notorious (globally). It actually advertises its bias that favours litigants with abstract patents. That's why many companies and trolls file their patent cases in there. On the fifth of October we saw United for Patent Reform stating that "85% of the 33 patent lawsuits filed today were filed by patent trolls. It's time for Congress to take action to #fixpatents!"

How many of these were filed in Texas?

Patent Progress wrote that "The Eastern District of Texas Is Still Home for Patent Trolls" (also under the #fixpatents hashtag) and pointed to this new article from Mr. Levy (cross-posted at the Huffington Post). To quote some bits:

The year is mostly over, so I thought I would take a look and see what’s going on in the Eastern District of Texas. The Eastern District of Texas still has more patent cases filed there than any other district at 1,224. Some 794 (that’s about 8% of all patent cases) of those cases were assigned to Judge Rodney Gilstrap, in the Marshall Division — almost 10 times more than any judge outside the Eastern District. That’s more than twice as many as the entire District of Delaware (311 cases), even though most big companies are incorporated in Delaware.

In fact, Judge Gilstrap, a judge in a small town in Texas, is handling about as many patent cases as Delaware, California, Illinois, and New Jersey combined.

Marshall, Texas has a population of about 25,000 people. It has no major research facilities, no major industries, and has not produced any major innovations that I can identify. And yet it hosts more patent litigation than any other place in the country, by an order of magnitude.

I’m sure Marshall is a charming town with nice people, but there’s simply no reason for so much patent litigation to go through there. We might as well have patent litigation go through Bangor, Maine, where I went to high school. The town is about the same size, but it has better food and it’s near the coast. Bangor also has a modern airport and a life-size statue of Paul Bunyan.

Seriously, it’s obvious that something is wrong here, even if you don’t know the details. Patent trolls wouldn’t be flocking to a small town with no airport unless they had good reason.

And they do have good reason.


Levy is right to single out or point out Mr. Gilstrap for reasons that we covered here before. In another new article, this one from Patently-O, they alluded to the VENUE Act [1, 2] by suggesting change to patent venue and naming the VENUE Act explicitly:

Earlier this year, we presented some initial results of our study of what might happen if patent venue reform took place. Since then, Senator Flake (R-Az) introduced the VENUE Act of 2016, and last month, petitioners, led by a group including James Dabney and John Duffy, filed a petition for writ of certiori in the TC Heartland case in the Supreme Court. Amicus briefs are due October 17, 2016 and Kraft’s brief is due on November 16, 2016.

To support these deliberations, we examined the history of the patent venue law and presented some statistics about plaintiff venue preferences for the Eastern District (for even more statistics on this point see the new paper by Brian Love and James Yoon). Additionally, we empirically modeled both reforms by randomly selecting 939 cases from 2015, and making our best guess as to where cases would have been filed under the proposed rules, assuming they would have been filed at all. Since 2015, the overall number of patent cases has declined, about 20% YTD based on data from Lex Machina (4,216 cases by this time last year vs. 3,369 today). The Eastern District of Texas has made a number of changes and its share is also down from 44% in 2015, to 35% 2016 YTD (30% in 1Q, 36% in 2Q, and 38% in 3Q); the next closest district (Delaware) has seen about 9% of filings, based on data from Lex Machina.


After the FTC study that we shall mention separately it seems more likely that the VENUE Act will become a reality, or folded into an existing/prospective patent reform bill.

Speaking of patent trolls, even universities are feeding them now. Here is MIP sort of supporting the practice, as if weaponising universities that are funded by the public and turn into trolls that tax the same public is a good thing. No wonder MIP did this, with firms like McKool Smith as 'company'; To quote: "The increase in university patent lawsuits in recent years and strategies for winning cases were among the issues discussed by presenters in the webcast "University Patent Licensing and Enforcement", hosted by Managing IP in association with McKool Smith on September 26."

These are euphemisms for what often boils down to trolling, if not direct then indirect, e.g. by passing patents to trolls like Intellectual Ventures -- now at the epicentre of the collapse of software patents in the United States (more on that in an imminent long post as well).

If the VENUE Act passes, or even gets incorporated into a future patent reform bill, then Texas can say goodbye to a lot of its parasitic business.

Recent Techrights' Posts

An Update About Soylent News, With Jan Rinok "Back in the Saddle"
Burnout or "near burnout" a possibility when having to curate abuse
Rejecting 'Snoop-Phones' and Turning "Old" Phones (or Tablets) Into Freedom-Respecting Appliances
Paul Fernhout (pdfernhout.net) wrote back to Akira Urushibatathis this past weekend
Apple is the Company of Dictators and Worse
Apple is just another greedy corporation in search of sweatshops and even pedophiles (especially the high-profile ones)
Counting Unhatched Eggs Is Not Counting Chickens
Everything here will persist as normal
The "Infinite Bread"
The biblical story of Jesus feeding the 5,000 has software parallels
In Many Cases and in Many Different Ways, Technology Became Less Durable and Less Reliable Over Time
The "modern" things are more complex. And complexity is a foe or reliability and repair-ability.
 
Insane, Deliberately Dishonest, or Just Another Bigot?
very intellectually-dishonest human being
A Lot of Techrights is Built on Perl
Perl also runs the sister site
The Register MS Selling Slop for Microsoft (Vapourware, Ponzi Scheme, False Claims)
What will be left of The Register MS if it keeps repeating falsehoods and looking to profit from Ponzi schemes?
analytics.usa.gov Says Less Than 14% of Web Requests (to Government Sites) Come From Vista 11
Vista 11 was released more than 4 years ago!
People Who Attempt to Take Down Correct Information Need a Doctor a Day
“Journalism is printing something that someone does not want printed. Everything else is public relations.” ― George Orwell
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, October 20, 2025
IRC logs for Monday, October 20, 2025
Vista 11 is Sinking While Microsoft is PIPing (Mass Layoffs But Silent Layoffs)
We're witnessing a shift in platform dominance
Richard Stallman is Having a Good Week Already (Stallman Was Right About 'Clown Computing')
That alone is worth bringing up in his talk
When Prominent GNU/Linux Distros Are Run by Spies
What has Microsoft Canonical become?
More Publishers and Companies Nowadays Say "GNU/Linux", Not "Linux"
It's not to see InstallAware saying GNU/Linux this week
Google News is Now Promoting a Parasitic Slopfarm Called "findarticles.com", Where Plagiarism of "Linux" Articles is Rampant
Does Google even care about the slop epidemic? Google itself is a vendor of slop now (and it calls it "Gemini")
Gemini Links 20/10/2025: Pumpkin Carving, "Hey Hi", and Other Buzzwords
Links for the day
Slopwatch: Google News Promoting Fear, Uncertainty, Doubt (FUD)
What is the value of Google News if so many results in it are fake 'articles?
Our Uptime This Year Was Better Than AWS (Also a Lot Cheaper)
We never used "the cloud"
Amazon Web Shenanigans
An ongoing, experimental endeavour
Death of Elias Diem: FSFE mailing list archives hidden
Reprinted with permission from Daniel Pocock
Links 20/10/2025: Louvre Museum Reveals Weakness, About 7 Million Protest US Turning Into Oligarchy/Monarchy
Links for the day
They Should Have Listened to Techrights Over a Month Earlier (Xubuntu Site Compromised)
we reported this issue about 40 days earlier and nobody did anything about it
Richard Stallman to Give Another Talk Today in Bavaria (Bavarian Academy of Science)
Tomorrow at 6 PM he speaks in Munich
Barry Kauler Explains That Puppy Linux and EasyOS Exclude Systemd to Keep Things Simple
Barry Kauler's Puppy Linux is in the community's hands. He now focuses on EasyOS and more.
Half a Year After Brian Fagioli Got Kicked Out of BetaNews for Slop He's Still Doing LLM Slop and Slop Images Targeting 'Linux' (Plagiarising Original Works)
If the Web gets polluted or flooded by slopfarms such as these, and Slashdot then sends traffic so these slopfarms (Slashdot probably doesn't do this intentionally), then real writers with real knowledge of GNU/Linux will lose the spark for publishing
Microsoft's LinkedIn is Losing Money, Traffic, and Hope; Now It Wants to Sell Its Users' Lifeblood (and Data)
Let this be a reminder of what social control media really is about
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, October 19, 2025
IRC logs for Sunday, October 19, 2025
Campaign of FUD Against Framework Laptops and GNU/Linux (Using Microsoft's Attack on Linux, 'Secure Boot')
Ritual Defamation Cult has turned its attention over to Framework
Microsoft Lunduke: Freedom of Speech Means Spreading What I Have to Say and Banning People I Disagree With
4Chan is one he aims for and he is siccing 4Chan trolls at people he doesn't like
Liberation From 'The Feed'
They rank things based on the editor's choice/ideology (he or she knows the sponsors, hence the masters)
Microsoft's Killing of Vista 10 Seems to Have Resulted in More Articles About GNU/Linux (But Also FUD)
We not only saw a rise in traffic, we also saw a remarkable rise in the number of articles
Today (a Day Before Richard Stallman Talk at TUM) There's a Patent Propaganda Event at TUM
Perhaps an opportunity for Dr. Stallman to rebut this "invention to patent" nonsense/fantasy (conflating monopolies with innovation)
OpenSource or "Open Source" as a Brand is Dying, Let's Get Back to Talking About Software Freedom
Those of us who actually want to reform the industry and put users in control of their systems/devices will recognise that "Open Source" was selling a lie or got-co-opted by liars
19 Years in Numbers: Techrights' Anniversary Countdown and Retrospective
In 2019 we began improving our workflows and, accordingly/predictably, we became a lot more productive
Slop Turns People Off (LLMs Lack Intelligence, They're Just Plagiarism Powerhouses That Fail to Deliver Any Real, Measurable Value)
"More" (or "MOAR") isn't always better
IBM Red Hat Has Re-calibrated or Adjusted to Bubble Economics, False Promises, and Slop/Plagiarism
This won't end well
Fake Numbers, Fake Claims, Fake Economy, and Media Grifters That Prop Up Fraud
Grifters like The Register MS won't be looked upon kindly after the bubble implodes
For Some, the GNU Web Site is Not Accessible This Week
They seem to have gone into some kind of lock-down mode
Richard Stallman Back at the "Rudolf-Diesel" Hörsal "MW 2001" in About 40 Hours
He spoke there before; there's a very high seating capacity there
Symptoms of Upcoming Microsoft Layoffs in XBox
A crashing franchise
Psychiatrist confession: Germanwings crash & Debian toxic culture recognized before suicides
Reprinted with permission from Daniel Pocock
Gemini Links 19/10/2025: Scentjacking 101, Slop Hype Boosters, and Steam Next Fest
Links for the day
Slopwatch: The Serial Slopper, LinuxSecurity, and Google News
Let's hope slopfarms die as soon as possible
Links 19/10/2025: Cambodia Scam Centres, Slop Hurting Wikipedia Traffic
Links for the day
As Economies Crumble Free as in Beer Will Matter, Not Just Free as in Freedom/Libre (Libertad)
French regions choosing to embrace Software Freedom
25 Years Ago, an Explanation of How Reducing Free Software to 'Apps' Would Interfere With Freedom Goals
there's nothing unreasonable about it
A List of 63 Known Gemini Clients (Software to Browse Geminispace Content With Gemini Protocol)
Not counting browser plugins for Web browsers
Gemini Links 19/10/2025: "Firma Odin Is Transforming" and Bot Attacks While "AFK"
Links for the day
US Government: 6.1% of Site Visitors Use GNU/Linux
GNU/Linux has a considerable share and it is growing
LLM Slop Could Not Rise to Prominence Without Media Complicity and Artificial Hype
Inane garbage disguised as "journalism"
Why the FSF No Longer Recommends Debian, as Explained by Richard Stallman This Month
some weeks ago
All the Latest Half Dozen Articles by Mehedi Hasan (UbuntuPIT) Only Admit at the End That He's Using LLM Slop
Disclosure is OK, but the practice of using slop is not
The 'Modern' Web of Fake Security and Easy Censorship of Whole Domains
Each year it gets worse
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Saturday, October 18, 2025
IRC logs for Saturday, October 18, 2025