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

Slop Nihilism is Funded by Big Oil
Eventually human civilisation will destroy itself
Professor Eben Moglen Recovering From Open Heart Surgery
From his public pages (this is not secret)
There Are Red Hat (IBM) Layoffs, But Google News is Infested With Slopfarms
It contributes a lot to misinformation and it encourages plagiarism
USA Not a Place for Free Speech
In America, as in the US, the attacks seem more enhanced or advanced these days
 
Slopwatch: Fake Articles, Fake Text, Fake Images, Negative Slant on "Linux"
Google News has lost its value; the signal-to-noise ratio has fallen off a cliff
Gemini Links 17/09/2025: Relax-and-Recover on Proxmox and New Smolweb File Transfer Service
Links for the day
Fact: EFF Got Corrupted by Corporate Money. Microsoft Lunduke (Political Noise): The Issue With EFF is, It Kills Babies.
Microsoft Lunduke - as usual - finds a way to make it about abortions
Pacing Publication Up a Bit
The news cycles have gotten rather light and slow
Links 17/09/2025: Power Outages, Digital Controls, and Attacks on the Mainstream Media (by Insecure and Corrupt Dictators)
Links for the day
Gemini Links 17/09/2025: Flashing LineageOS and ROOPHLOCH
Links for the day
Links 17/09/2025: Long COVID Study, "Exposing Pegasus", and Chatbots Exposing Sensitive Data
Links for the day
Links 17/09/2025: Secret Settlement for Internet Archive and Google’s LLM Slop Summaries Attracting Lawsuits
Links for the day
The True Cost of 'Generative Models'
Funded and promoted by the companies that profit from the waste
'Big Slop' Attacks Contemporary Information/Knowledge and Creative Works, 'Big Copyright' (Cartel) Attacks the Old
Someone at IA will hopefully "blow the whistle" on what they actually agreed
Why We Find It Difficult to Trust Rust
A comparison between C/C++ and Rust
Watching the OSI: Our Series Will Carry on Irrespective of the Chief's 'Resignation'
the OSI isn't even the real guardian of the term "Open Source"
Just What LibreOffice Needs? Another Language? (Rust)
what's all this concern about memory safety?
Many Microsoft Managers Are Leaving
"Hey hi" chaff or chaff about "hey hi" cannot eternally distract from the difficulties inside the company
Tomorrow, Microsoft's Tim Anderson's 'The Register MS' Offshoot Will Have Been Inactive for 2 Months (There's Also a Slop Problem)
We've already caught The Register MS using LLM slop for articles
Microsoft's Chief Legal Officer Leaves Microsoft After Nearly 30 Years
And not retiring
Even Windows Users Are Having Problems With "Secure Boot"
When it comes to security - Microsoft strives for the very opposite
Another Competition Crime of Microsoft, Long Facilitated and Advocated by a Bad Actor, Who is Funded by a Third Party to Commit Extortion Against People Who Have Correctly and Repeatedly Warned About It for Over 13 Year
We must always go back to the core issues
3 More Reasons to Replace Mozilla Firefox With LibreWolf
Thankfully there are de-enshittified versions of Firefox
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, September 16, 2025
IRC logs for Tuesday, September 16, 2025
Links 17/09/2025: Google Layoffs in "Hey Hi" (AI), Perplexity Hit With More "Hey Hi" (Plagiarism) Lawsuits
Links for the day
Gemini Links 17/09/2025: Reclaiming Things in a Digital Age and Moon Phases in CGI
Links for the day
Slopwatch: Google News is Slop, Google News is Plagiarism, Google News is Dying
Google is off the rails
Links 16/09/2025: "The Censorship Alarm Is Ringing in the Wrong Direction" and ASRock Does Microsoft E.E.E. on GNU/Linux
Links for the day
Serious "Breach of Confidentiality of Personal Data" in Europe's Second-Largest Institution, the EPO
Yes, the same EPO that routinely uses "data protection" and "GDPR" as a pretext for hiding or covering up its corruption and white-collar crimes (it even uses that as an excuse for refusing to obey courts' orders)
Adrienne Rockenhaus Says Her Husband Was Arrested for Running Tor and Denied Basic Rights in the United States
the US seems to be getting "russified" in its approach towards Tor
This is What Happens When Microsoft Canonical Lets Decisions on Ubuntu be Made by a Youngster From the British Army (Where He Did Mass Surveillance)
"Is Ubuntu Compromised?"
Back Doored Windows Giving GNU/Linux a Hard Time (Under the Guise of 'Security')
Is this complication intentional? Most likely, yes
Links 16/09/2025: Science, Security, and Conflicts
Links for the day
Gemini Links 16/09/2025: Command-line Options in POSIX Shell and Introducing Acre 0.9
Links for the day
Microsoft 'Secure' Boot Versus Dual Boot With GNU/Linux
they're meant to assume everything is OK
Links 16/09/2025: While Oracle Pretends to be Rich It's Firing About 70 MySQL Workers, "Oracle's Revenge" (Faking Demand With "AI")
Links for the day
Microsoft Has Just Published a New Web Page About "Secure Boot Update Process" (Microsoft Also Admits Issues; PCs Can Stop Booting)
Why was this page issued and published only hours ago?
Microsoft Lunduke: I Spread Hate and Then I Receive Hate
Cry us a river, Microsoft Lunduke
"Use Wayland" Isn't a Bugfix for X (X11 is Still Necessary)
They tell us X is "dead" and we must all be herded into Wayland ASAP
"Disable Secure Boot and Fast Boot. Wipe and Start Over."
At least they didn't say, buy a new computer...
The Oracle Ponzi Scheme
Oracle isn't doing well, but it's nowadays fashionable to say "clown" and "hey hi" to prop up one's stock, even based on nothing at all
The New Head of OSI is an "Hey Hi" (AI) Obsessed Person
when Bryant says "AI" that doesn't mean AI
Taking Out the Battery, Opening Up Your Computer, Just Like a "Normie" Would
At this stage, any person who still says "enable Secure Boot" is misguided or persuaded by companies that sell rootkits
Slopwatch: Serial Sloppers and Slopfarms Still Infesting Google News (Fake 'Articles' About "Linux" Spreading FUD)
searching for "Linux" today yields a lot of FUD
"Governments, local authorities, schools and hospitals can lead by example by procuring only Free Software"
Crossposted from Tux Machines
Cindy Cohn Leaving the Electronic Frontier Foundation While Its Co-founder John Gilmore, Whom She Apparently Helped Oust, Will Celebrate 40 Years of the Free Software Foundation, Inc.
EFF has been busy hoarding GAFAM money, whereas the latter is where all the real activism is done
The Reach of Techrights Has Broadened
We nowadays cover a broader range of issues
"Google is Googlebombing KDE's Project Banana"
So is Google googlebombing KDE's Project Banana? You decide.
Complicating Things for No Actual Benefit, Just Added Risk and More Difficulties Adding GNU/Linux and BSDs
Watch what it's like for people who wish to use BSDs
Some Very Large IRC Networks Are Growing
IRC will turn 38 next year
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, September 15, 2025
IRC logs for Monday, September 15, 2025
Links 16/09/2025: Autumn Party, RPG Planet, and Optical ROOPHLOCH
Links for the day
Geminispace Growing at Pace of Over 10% Per Year
Contrary to what some pessimists try to claim
Linux Mint Forums Today: Disable 'Secure Boot', It Doesn't Improve Security, It's Just a Microsoft Obstacle to GNU/Linux Users
They also mention MOK
What Ruben Amorim and Stefano Maffulli Have in Common
Censors Wikipedia and Social Control Media
Microsoft Won't Cooperate in Trying to Tackle EPO Corruption (Microsoft Profits From This Corruption)
Use something like BigBlueButton, Jami, Ring, and Jitsi instead
Solved Less Than an Hour Ago: Trying to Escape Windows, 'Secure Boot' Gets in the Way
'Secure Boot' wasn't meant to even exist in the first place
Stefano Maffulli, Executive Director of the Open Source Initiative, Resigns or Gets Removed (We'll Continue Covering OSI Scandals)
A dozen mentions of "AI", not much about "Open Source"
Andy Has Just Nailed It (Regarding Complexity and Failure, a la UEFI)
The users no longer own or control what they buy
Compatibility Support Module (CSM) Versus GNU/Linux Simplicity
what Andy recently called "solutionism"
Links 15/09/2025: "Postal Traffic to US Down by Over 80%" and 'Smart' Spinozacampus Laundry Room Goes AWOL
Links for the day
Gemini Links 15/09/2025: Dungeon Hustle and Deleting Oneself From the Net
Links for the day
Breach of EPO's Duty of Care or Cigna Reimbursement Issues
This is the sort of thing that motivated Luigi Mangione to assassinate a CEO
Ask Ubuntu About "Secure Boot" Violation and Laptops That Don't Boot GNU/Linux
Does anyone still believe that "Secure Boot" has anything at all to do with security?
We Are Sad to Hear the Story of Jonathan Riddell, Champion of KDE and GNU/Linux on Desktops/Laptops
I have enormous respect for Jonathan and everything he has done
Talking About the Problem vs Talking to the Problem
Wanting an audience is never a good excuse for compromising one's values and principles
Focusing on Patents
The reason we cover the EPO so much is that it's close to home
"Secure Boot Violation": The 'Joys' of Fake Security Gone Wrong
Not everyone reboots every day
Links 15/09/2025: Russia Invades Romanian Airspace, Penske Media Sues Google Over LLM Slop
Links for the day
Links 15/09/2025: Bitcoin ATMs Scam and "Conservative Cryptography" (Backdoors Fantasies)
Links for the day
EPO Imitates Microsoft: "Three Days or More Per Week" Inside the Office to Get a Desk to Work on; "the Office Breaches Its Promise Towards Staff and Acts in Breach of Its Duty of Care"
The EPO serves no actual function in Europe
Links 15/09/2025: Political Affairs, Censorship, and Copyrights
Links for the day
Gemini Links 15/09/2025: Music Genres, Invisible Networks, and Akademy 2025
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, September 14, 2025
IRC logs for Sunday, September 14, 2025