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

LLMs as Attack Method Against Free Software and Programming
DDoS in "hey hi" (slop) clothing
Google as a 'Bullshit Generator' Disguised as Intelligence
It'll probably cause Google to get sued a lot, both by individuals and companies
As Expected, Google in the UK Now Experiments With Slop Instead of Web Search
At this point more people ought to stop and think: Does Google's search engine deserve trust?
Sabotaging Linux on Behalf of Microsoft With UEFI 'Secure' Boot (De Facto Remote 'Kill Switch'), Then Defaming, Stalking and Harassing Critics of 'Secure' Boot for 12 Years, Then SLAPPing Their Spouses and Them
The sorts of stubborn lunatics we've been dealing with
 
Meeting (Webchat) With Maria Arranz Gomez, Florian Grundies, Jürgen Janda and Konstantinos Kortsaris Confronts EPO Management About Breaking Promises and Crushing Workers
The lack of consistent messages suggests plans other than what's advertised and the lack of consultation (secrecy) likewise
Links 01/08/2025: "The Great British Firewall" and U.S. Army Sponsors Palantir
Links for the day
For Second Day in a Row, Top Story in The Register MS is "Microsoft Says"
The editor in chief exercises control over everybody else
Stability and Reliability, Backward Compatibility
I don't fancy relying on social control media as "sources"
What "the News" Looks Like in 2025
The "says" (or "sez") phenomenon
History Will Be Distorted, Sometimes Intentionally, Under the Guise of Intelligence (Manipulated/Curated Slop)
Militarised misinformation or military-grade chaff is a national security threat, even domestically
Financial Engineering Companies: A Company Worth 4 Trillion Dollars Would Not Borrow 100+ Billion Dollars at Interest Rates Like Today's
Many headlines perpetuate the lie Microsoft had just 2 waves of layoffs
Microsoft is Googlebombing "Linux" While Paying Former News Sites to Publish SPAM
How much lower will IDG sink?
The Data You Don't Give Away is Your Advantage
stop sharing data that does not need to be shared
Being Obedient or Doing the Right Thing
The world always changes for the better because of people who think "Outside the Box", not the cogs
Gemini Links 01/08/2025: Happy Hacking Keyboards and New Gemini Arrivals
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Thursday, July 31, 2025
IRC logs for Thursday, July 31, 2025
Moving on in Techrights, Geeks Gonna Geek
In the coming weeks we plan to focus (as we explained last week) on patents, GNU/Linux issues, and the occasional philosophical essays
Slopwatch: Google News Has Lost the Plot
Almost the majority of articles returned for "Linux" are fakes
Links 31/07/2025: Australia Restricts YouTube Access, Personal Privacy at Risk
Links for the day
Links 31/07/2025: Spotify Collapses and Spotify Now Forcing Some Users to Undergo Face-Scanning
Links for the day
A Lot of Supposedly "Successful" Businesses Are Just Debt-Racking Vessels Without Any Prospects of Financial Sustainability
The probability of bankruptcy of any business is more than 0%
theregister.com: The Voice of Microsoft US?
It basically sold out
Yes, You Can Love and Adore Things Whilst Also Criticising Them
Is society being divided and groomed/primed to be resistant to constructive criticism?
Links 31/07/2025: War in Ukraine, Security News, and Cyberattacks Against Journalists on the Rise
Links for the day
Gemini Links 31/07/2025: Fake Money and Gemini Diaries
Links for the day
An Illusion and Cult Worship of Magnitude (Ubiquity as "Victory")
GNU has been around for over 40 years and it'll likely continue to exist for another 40 (in some form)
Google: From Pointing to Relevant Sites to Pointing to Social Control Media to Actually Parroting Social Control Media as "Facts"
Google has become a misinformation company
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Wednesday, July 30, 2025
IRC logs for Wednesday, July 30, 2025
How to Report Apple Layoffs Without Saying the "L" Word
don't look for the "L" word
Wall Street Does Not Care About Microsoft's Impending (August) Layoffs, It Believes Lies From Microsoft, Whose Debt Grows Rapidly
If Microsoft is doing so well and swimming in money, why so many cuts (about 29,000 layoffs so far this year)?
Wayland Considered Harmful (to GNU/Linux Adoption)
it's not limited to games
My Experience With Judges Has been Positive, But We Must Still Pursue SLAPP Reform in the United Kingdom
We believe it'll be a "feather in the cap" if we can help change laws in the UK to better protect investigative reporters
Slopwatch Makes the Web Better
Remember what happened to BetaNews?
Slopwatch: Google News is Pumping in Lots of Web Traffic Into Fake Sites That Say "Linux"
somewhere between 30% and 40% of today's "news" about "Linux", as seen by Google News, is LLM slop
Links 30/07/2025: Climate Calamities Highlighted, Kyrgyzstan Crackdown on Expression/Freedoms
Links for the day
Gemini Links 30/07/2025: Watson’s List of Limits, Lysenko 2000
Links for the day
Riot for peace & Love: Catholic Influencers and Digital Missionaries welcome Jubilee of Youth
Reprinted with permission from Daniel Pocock
Some People See What Others See... But Only 40 Years Later
When people deviate from "the norm" they typically get ridiculed and dismissed as "crazy"
Links 30/07/2025: Tea Class Action and Google Killing the Web With Slop
Links for the day
Last Month Our IRC Community Turned 17
Funnily enough we never missed a single day when it comes to logging
"The Unix Kernel"
Linux was inspired by MINIX
The Register Relays Microsoft Marketing, Dubs That Marketing "Research"
Hours ago they did a "Microsoft sez" piece
Dealing With Sociopaths, Liars, and Cranks
A dysfunctional society such as this would never develop
Not Owning Mobile Phones
It's not about resistance; it's common sense
Google 'Search' is Fast Becoming No Better Than Social Control Media Infested With Bots
Google emerged almost 30 years ago as a company looking to organise the Web and direct people towards informative pages. That Google is dead.
PCLinuxOS Had Functional Backups Before the House Fire, the Site Will be Restored in New Webhost
This is the direction we want for GNU/Linux, not some IBM sales strategy
Gemini Links 30/07/2025: Two Sides of Me and "Hooked on Cosmic Voyage"
Links for the day
Microsoft Will Continue Resorting to Crimes in Order to Keep GNU/Linux Usage Down
It is a real problem and we'll revisit it later this week
GAFAM 'Revolving Doors' at The Register and a "Bribe Price List"
"an analyst at Microsoft"
Microsoft Rapidly Shrinking (No, It's Not About Efficiency, It's About Unbearable Debt)
We'll soon see how much debt grew in the past quarter
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, July 29, 2025
IRC logs for Tuesday, July 29, 2025
Corruption is the Standard Operating Procedure at the European Patent Office (EPO)
The EPO is a dictatorship that stains Europe
Local Staff Committee Munich (LSCMN) at the European Patent Office (EPO) Requests an Urgent Meeting to Avoid Abolishing the Office
This is dictatorship led by the most corrupt
Slopwatch: Fake 'Linux' 'Articles' and Spamfarms/Slopfarms
at least 5 fake articles in one day