Bonum Certa Men Certa

Litigation and Patent Trolls Are Moving to China, Which is Bad for American Litigators But Great for American Technology Firms

Sun rises from the east...

American flag



Summary: The migration of patent trolls and so-called 'assertion' activity (lawsuits/shakedown) to the Far East is a trade-off between a parasitic sector and a producing sector

"According to RPX Corp.," said United for Patent Reform some days ago, "of the 19 patent suits filed yesterday, 15 were filed by patent trolls. That's 79%."



This isn't so unusual. Sometimes it's around 90%. RPX is collapsing and might soon be owned by patent trolls.

Thankfully, however, litigation is down overall. The numbers compiled by Docket Navigator were mentioned the other day in this post which is behind paywall:

Last year, 4,522 patent cases were filed in US district courts, according to a search of the Docket Navigator database conducted by Managing IP on January 7.

This was down 2.7% from 4,650 in 2016, which itself was down...


Litigation in the Eastern District of Texas (EDTX) is down very sharply. This in its own right is very good news. The courts there were notoriously trolls- and software patents-friendly.

If that sort of litigation goes to China, should the US worry? Good riddance. It was a yoke on companies that operate in (or are based in) the US.

To better serve its litigation 'industry' and pretend to be richer, China is placing more focus on patents. In fact, quite a few patent bullies go to China (RPX considers that), which has become like a new EDTX (its patent trolls included). IAM, being a proponent of patent trolls, seems to have China envy. Days ago it wrote that "China litigation may have helped IP Bridge secure wireless SEP licence with Samsung" as if it's actually desirable.

A couple of factors made it seem that the China case against Broadcom – which was filed in the Beijing IP Court – was the one that played a decisive role in the settlement. As this blog noted at the time, the patents-in-suit had no fewer than 20 IPRs awaiting institution decisions at the time of the settlement, so the timing of the deal made little sense from a solely US perspective. Furthermore, industry research has characterised Broadcom as one of the US companies with the largest revenue exposure to the China market. According to Beijing IP Court documents, the court accepted the case against Broadcom on March 21st 2017, and on June 30th, IP Bridge had withdrawn it.


The truth of the matter is, China may be inheriting the very thing the US became notorious for. This, in turn, can discourage investment and operations in China. It's worth noting that EDTX, in conjunction with ITC for injunctions (extra sanctions/embargo), is currently being used for alleged antitrust.. Watchtroll's Steve Brachmann put it like this:

On January 10th, image-based barcode reading solutions provider Code Corporation of Salt Lake City, UT, announced that it had filed antitrust actions against Morris Plains, NJ-based engineering conglomerate Honeywell International (NYSE:HON) at both the U.S. International Trade Commission and in the Eastern District of Texas. Code, which is seeking an injunction on the importation and sale of barcode readers marketed by Honeywell for the healthcare industry, alleges that Honeywell engaged in a campaign to mislead distributors about the legitimacy of Code’s barcode reader products as part of an effort to monopolize that market.


Notice how neither company is based in Texas; one is from Utah and another from New Jersey (very far from Texas). Is TC Heartland going to be invoked? How about this new case "lack of personal jurisdiction"? As the Docket Navigator's Web site put it:

The court granted a British defendant's motion to dismiss plaintiff's patent infringement claims for lack of personal jurisdiction under the state long-arm statute.


For a number of years -- probably well over a decade -- EDTX became the nuisance capital of the US. This capital, however, may be gradually outsourced to large cities in China. Great for litigators in China? No doubt. But it's bound to hurt the Chinese economy unless the intention is to actually discourage foreign companies from operating there (there are local brands which China is hoping to promote at their expense).

Recent Techrights' Posts

Search @ Techrights: Almost There Now (Maybe an Anniversary Gift)
Just to be very clear, search would not be unprecedented at Techrights
The Rumour Was True, Mass Layoffs at IBM Today
How widespread the layoffs are (or how they're disguised, e.g. PIPs) is hard to assess
 
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, November 03, 2025
IRC logs for Monday, November 03, 2025
The Register MS Continues Looking for Money in Promotion of the "AI" Ponzi Scheme
That The Register MS participates in this deceit rather than tackle/debunk it says a lot about The Register MS
IBM Layoffs in "Software", This Likely Impacts Red Hat as Well
Many people say "software" people are impacted
Escaping Proprietary Software, Not Just Escaping Microsoft
To take control of your life adopt GNU/Linux
A Lot of Fake News About Microsoft Headcount (Also: Microsoft's Debt Rose by About 24 Billion Dollars in Past 12 Months)
If you see some headline about Microsoft's CEO making claims about hirings, look away
Techrights Turns 19 in Three Days
It would be nice to meet for a chat
Akira Urushibata on How Grokipedia Fails to Work
The Grokipedia article gives the wrong character for the "Ko" on "Koan"
Links 03/11/2025: Data Breaches, Wars, and Digital Censorship
Links for the day
Gemini Links 03/11/2025: Poetry, Old Androids and Small Shells
Links for the day
Links 03/11/2025: Internet Anniversary
Links for the day
Two Years of Uptime
Reboots are seldom involuntary
Richard Stallman is Giving Another Talk in Less Than a Fortnight
in two weeks' time (13 days from now)
Windows Falls Below 20% in the UK
Many people choose to leave Windows altogether
Microsoft's Search Business Falls to Lowest Point in 2 Years, Based on statCounter
what can Microsoft sell other than shares in Microsoft?
Evidence Regarding Layoffs at Red Hat
Seems like IBM layoffs
Microsoft: Our "Goodwill" Value Grew More Than Tenfold Since 2011
Hallmark of pseudo-economics
GNU/Linux as a Boarding Pass
being mostly analogue is still feasible
Links 03/11/2025: Lack of Trust in LLMs and Windows TCO at Jaguar
Links for the day
Gemini Links 03/11/2025: Books in October and Change
Links for the day
Mozilla Firefox Won't Survive and Many Sites Don't Work With It (Compatibility Abandoned)
The Web has become monocultural
Debian is Non-Free
Devuan might be worth looking into
Slopwatch: Brian Fagioli and LinuxSecurity
This is a real problem and most certainly a big problem because when people try to find real information about security and GNU/Linux they instead read "word salads" made by bots
Four Reasons to Party With Us in Four Days, Celebrating the Four Freedoms
Today we expect to be back to a more-or-less regular publication pace
Links 03/11/2025: The "Smartphone Panopticon" and Belarus' Hybrid Attacks on EU Intensify
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, November 02, 2025
IRC logs for Sunday, November 02, 2025
Microsoft's Debt Has Skyrocketed by More Than 15 Billion Dollars in 6 Months or 8.2 Billion Dollars in the Past 3 Months Alone
The corporate media intentionally disregards - or merely turns a blind eye to - such data
Rumour: IBM Layoffs in Canada Starting Tomorrow
"RA (IBM's term for layoffs) Coming to Canada this week (Nov 3rd)"
Debunking False/Misleading Statements Made or Told to the High Court
People who try to cheat the system by gaslighting judges will end up discrediting themselves
Fear, Uncertainty, Doubt (FUD) by LLM Slop
The Web has become such a sordid mess that this FUD made by bots is what Google News deems to be "the news"
This Month's Analytics Show Vista 11 Down, GNU/Linux Up
After pulling the plug on Vista 10 we see losses - not gains - for Vista 11
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