Posts tagged as:

patent trolls

February 9 roundup

by Walter Olson on February 9, 2012

{ 3 comments }

A new study by James Bessen, Jennifer Ford and Michael J. Meurer in Cato’s Regulation magazine:

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.

{ 1 comment }

December 13 roundup

by Walter Olson on December 13, 2011

  • “The real cost of patent trolls” [Brad Feld, PoL on BU study] Survey finds patent litigation booming [Corporate Counsel, Reynolds Holding/Reuters] Company claiming patent on wi-fi-in-stores unlikely to sue retail customers “at this stage” [Patent Examiner] Retrospective on crustless-sandwich case [Peter Smith/Good, earlier]
  • 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)]

{ 2 comments }

September 16 roundup

by Walter Olson on September 16, 2011

  • House Judiciary holds hearing on asbestos-claim fraud and abuse, with Prof. Brickman headlining [Main Justice, Legal NewsLine, WSJ law blog, PoL, Brickman testimony]
  • 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]
  • Lawsuit settlement and the lizard brain [Popehat]
  • “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]

{ 4 comments }

August 11 roundup

by Walter Olson on August 11, 2011

  • Seattle’s best? Class action lawyer suing Apple, e-publishers has represented Microsoft [Seattle Times, earlier]
  • “Disabled” NYC firefighter/martial arts enthusiast can go on getting checks for life [NYPost; compare]
  • After the FDA enforcement action on drug manufacturing lapses come the tagalong liability claims by uninjured plaintiffs [Beck]
  • “What If Lower Court Judges Weren’t Bound by Supreme Court Precedent?” [Orin Kerr]
  • Fark.com settles a patent suit for $0 (rough language);
  • Canadian law society to pay $100K for asking prospective lawyers about mental illness [ABA Journal]
  • Self-help eviction? “Chinese Developers Accused Of Putting Scorpions In Apartments To Force Out Residents” [Business Insider]

{ 1 comment }

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.

{ 3 comments }

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.

April 22 roundup

by Walter Olson on April 22, 2011

{ 1 comment }

A lawsuit by Washington figure Pat Choate provides a peek. [WSJ Law Blog]

{ 1 comment }

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]

Will it work as a troll repellent? [Annie Lowrey, Slate]

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]

{ 1 comment }

January 7 roundup

by Walter Olson on January 7, 2011

  • Microsoft co-founder Paul Allen’s firm suing Apple, Google and many others over common web features [Atlantic Wire, Groklaw ("Allen v. World and Dog"]
  • Probably not a good idea to give local authorities cash incentive to snatch kids from homes [Bader, CEI]
  • Hyperlink liability case: “If I lose there won’t BE an Internet in Canada” [Ars Technica]
  • Shooting spree at Denny’s results in suit charging eatery with negligent security [PNWLocalNews.com]
  • More links: “Do securities lawsuits help shareholders?” [Point of Law, Bainbridge]
  • Fourth Circuit revives CSX fraud suit against asbestos lawyers [Dan Fisher, Forbes] “Asbestos defendants want automatic access to info in bankruptcy trusts” [Chamber-backed LNL]
  • Creation of noncompliant consumer financial product is a criminal offense under Dodd-Frank [Josh Wright, TotM]
  • Man sues over seeing contestants eat rats on NBC reality show “Fear Factor” [six years ago on Overlawyered]

{ 4 comments }

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.

{ 19 comments }

December 13 roundup

by Walter Olson on December 13, 2010

{ 1 comment }

October 21 roundup

by Walter Olson on October 21, 2010

  • “Japanese landlords sue families of suicide victims” [Telegraph via Tyler Cowen]
  • Best candidate you’ve never heard of: lawprof Jim Huffman runs for a U.S. Senate seat in Oregon [Weekly Standard]
  • “Freedom of culinary expression: Chefs speak out on behalf of salt” ["My Food, My Choice" via Ponnuru, NRO]
  • “In-House Counsel Expect More Regulatory Litigation, Survey Finds” [NLJ]
  • “Oladiran’s ‘Motion of the Year’ Earns Him Sanctions” [AtL]
  • Resisting a music-delivery-system claim: “Patent Trolls and Public Goods” [Julian Sanchez]
  • More transparency for New Jersey lawyer/lawmakers? [Philly.com]
  • “Ninth Circuit: marine mammals don’t have standing…yet” [six years ago on Overlawyered]

{ 2 comments }

Using a patent acquired from the much-criticized Intellectual Ventures, a company called Webvention claims to control broad rights over many common website features such as mouse rollover previews. It has begun suing many well-known companies (in East Texas, naturally) for alleged infringement; its licensing come-on letter to one target warned that if the $80,000 fee was not forthcoming the sum would rise after 60 days to $160,000 and after 90 days to $300,000. [Ars Technica; Joe Mullin, Patent Litigation Weekly] More: Coyote (”I am just waiting for the patent on breathing or metabolizing food.”)

{ 2 comments }

October 12 roundup

by Walter Olson on October 12, 2010

  • Representing Prof. Michael Krauss, Ted Frank will file objection to Classmates.com class action settlement [CCAF]
  • Not without condescension, Harvard historian/New Yorker writer Jill Lepore asks why Woodrow Wilson’s so disliked these days; Radley Balko offers some help [The Agitator, NYT "Room for Debate"]
  • China needs true private property rights, according to Charter 08 document, which helped Liu Xiaobo win Nobel Peace Prize [Tyler Cowen]
  • Axelrod “foreign funders under every rug” demagogy might be turned against his own allies [Stoll; New York Times refutes earlier Obama talking point; Atlantic Wire; Sullum]
  • R.I.P. influential class actions and mass torts scholar Richard Nagareda [Vanderbilt Law School]
  • “Web Seminar Makes Case for Patent Troll Lawsuit Targets to Fight Back” [Washington Legal Foundation Legal Pulse]
  • Contrary to WSJ report, if Congressional staffers are profiting in stock trades by way of insider knowledge, they probably do face some risk of legal liability [Bainbridge; a not entirely unrelated inside-trading controversy]
  • Underpublicized: “California’s Proposed ‘Green Chemistry’ Regulations Move Forward” [Wajert]

{ 2 comments }