Jones doesn’t actually develop or sell any technology relating to real-time vehicle tracking, but that hasn’t stopped him (and his two offshore firms, ArrivalStar and Melvino Technologies) from punishing anyone who does. To date, he’s filed more than 100 lawsuits against anyone who uses such technology—everyone from Ford to Abercrombie & Fitch to American Airlines to FedEx. He’s now one of the top 25 filers of patent infringement suits, according to PriorSmart.com.
Prominent among ArrivalStar’s recent targets have been municipal transit agencies, at least ten of whom it has sued, with another eight getting demand letters. Several have settled, including the New York City, Boston, Chicago and Maryland authorities; critics say the settlements are typically for less than the cost of defending the suits and are accompanied by nondisclosure clauses in which the transit operators agree not to talk about their experience.
“You need to know that the average patent troll defense costs 2 million dollars and takes 18 months when you win. That is your best case outcome when you get sued by a patent troll.”
“Patent Troll Claims Ownership of Interactive Web – And Might Win” [Joe Mullin/Wired, earlier; more on testimony by Web father Tim Berners-Lee] Update: Ding Dong! Jury rejects claim;
As patients suffer: “The War Over Prescription Painkillers,” start of a Radley Balko series [HuffPo parts one, two so far]
Richard Epstein on federal fiat and Yale disciplinary procedure [Defining Ideas] Under new-style rules at Yale, will a professor even be aware he’s been accused and henceforth is to be “monitored”? [KC Johnson]
Jim Copland testimony on abuses in government contingent-fee litigation [Manhattan Institute, PDF] “Parens patriae” proposal to replace class actions with state attorney general suits, but with private entrepreneurial bar still in saddle [Adam Zimmerman/Prawfs on Myriam Gilles/Gary Friedman, SSRN]
This article makes several findings about this litigation [patent litigation by non-practicing entities (NPEs)]. First, by observing what happens to a defendant’s stock price around the filing of a patent lawsuit, we are able to assess the effect of the lawsuit on the firm’s wealth, after taking into account general market trends and random factors affecting the individual stock. We find that NPE lawsuits are associated with half a trillion dollars of lost wealth to defendants from 1990 through 2010. During the last four years, the lost wealth has averaged over $80 billion per year. These defendants are mostly technology companies that invest heavily in R&D. To the extent that this litigation represents an unavoidable business cost to technology developers, it reduces the profits that these firms make on their technology investments. That is, these lawsuits substantially reduce their incentives to innovate.
Louisiana federal court holds severe obesity to be disability under ADA [Sam Bagenstos, related]
Florida: many cops remain on job despite evidence linking them to crimes [Balko on Sarasota Herald-Tribune investigation]
“FDA Regulation Could Doom Cigar Shops” [Jacob Sullum]
Ted Frank vs. Brian Fitzpatrick on class action fees [PoL, David Lat on Federalist Society panel]
Orange County keeps mum about partnerships it’s entered with plaintiff’s attorneys Robinson, Calcagnie and Thomas Girardi [Kim Stone, Fox & Hounds] Maybe like “private attorney generals”? Fannie/Freddie genre of government-sponsored enterprises called “monstrous moral hybrids” [Mark Calabria, Cato]
Posner: lawyers appeared more likely to run junk-fax suit for own interests than clients’ [Beck, Trask (Creative Montessori Learning Centers v. Ashford Gear LLC)]
Endangered species habitat in Nevada: “Elko County wants end to 15-year-old trout case” [AP]
“Why is the Eastern District of Texas home to so many patent trolls?” [Ted Frank/PoL, more] Tech giants say multi-defendant patent suits place them at disadvantage [WSJ Law Blog] Plus: “Patent company has big case, no office” [John O'Brien, Legal NewsLine]
“U.S. Commission on Civil Rights Looks Into Eminent Domain Abuses” [Kanner, Somin] U.K.: “Squatters could be good for us all, says judge in empty homes ruling” [Telegraph]
Madison mob silences Roger Clegg at news conference where he releases new study of UW race bias [ABA Journal, Althouse]
Life in Australia: “Another motorized-beer-cooler DUI” [Lowering the Bar]
A pretty graphic depicting a not-so-pretty situation [Design Language News; more, FlowingData] Related: “When Patents Attack,” NPR; Will Wilkinson, “Patents Against Prosperity”, The Economist; “Good Defensive Patents Are Bad Patents,” Julian Sanchez.
Rob Beschizza sees clues to the economics of patent litigation in the public pronouncements of Lodsys, a company that has sued small Apple developers based on IP claims covering such common app features as upgrade buttons. [BoingBoing, more, This Is My Next (with copy of a 2007 patent for "Methods and Systems for Gathering Information from Units of a Commodity Across a Network"] Update: Apple intervenes.
The Federal Trade Commission “today released a 300-page report examining the effect that patent trolls – or as the FTC more tactfully dubs them, ‘patent assertion entities’ – have on competition…. The practice, said the FTC, ‘can deter innovation by raising costs and risks without making a technological contribution.’” [BLT]
A “company called VS Technologies is suing Twitter, alleging that it infringes on a patent of theirs, entitled ‘Method and system for creating an interactive virtual community of famous people’.” [TechCrunch]
A UK game developer spent “tens of millions” successfully resisting a broad patent claim over online multiplayer gaming. [BoingBoing, GamaSutra]
“It is exceedingly unfortunate that the U.S. legal system can force a company with a sole presence in Cambridge, UK to incur a seven-digit expense and waste over a year of management time on a case with absolutely no merit,” [said company CEO Mark Gerhard] in a statement. “This anomaly, which could easily break smaller studios, doesn’t happen in the UK since you can pursue frivolous litigants for the costs of such claims,” he added.
In Wal-Mart v. Dukes, Justice Ginsburg’s instincts as a proceduralist might come in tension with her instincts as a feminist [Alexandra Lahav, Mass Tort Lit]
“Cease this shouting!” cried Grinch, “From all Yule din desist!” But he’d Moved To The Nuisance and so, case dismissed [Art Carden, Forbes]
“San Francisco Sues to Close Down Immigration Law Firm, Claims ‘Exorbitant’ Fees” [ABA Journal]
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