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Patent Trolls Aim Pistol at Big Business in East Texas

January 24th, 2011

Patent TrollingWith the failure of Proposition 19 in California came the loss hope among many citizens of the Golden State to be legally practicing one of their “recreational” hobbies. Many still wonder, what is the big deal about legalizing the use of the substance as some of our colleagues in Europe have?

The common thought is, if we legalize marijuana like tobacco and alcohol, then there will not be as many problems, right? Right? Well, let me say this in my best Texan. Just ‘cause you change the look of something, don’t mean it’s right. In so many different areas, there is a search to make something look better by changing the wording of it.

As “political correctness” takes over we can suffer a compromise that will hurt us on the long run. Take, for example, the little controversy of patent trolls in the business arena.

Patent trolls consist of companies who have obtained patent licenses with the sole intent to use them as a pistol aimed at bigger businesses that might have infringed on the patent in order to bring a lawsuit against them for compensation.

Now, one red flag of a patent troll is that the business has not manufactured the patented item and will never do so. Some uproar has come as a result of this practice and many are taking sides.

In an attempt to downplay this unethical practice is to refer to them, not as patent trolls, but rather, “non-practicing entities”. As in, “We choose not to implement the objects of our patents.” That’s like saying, “I’m a non-practicing dieter”.

Whatever the case may be, if it quacks like a duck, walks like a duck, and has feathers like a duck then it’s a duck.

Patent troll fame in east texas

January 21st, 2011

Patent LandEast Texas has had its fair share of fame. Stretched across the different counties of East Texas we can think of names like former football player Earl Campbell, country and western singer George Jones, as well as the oil industry that have brought fame to the lovely rolling hills of eastern Texas.

But there is some fame that is unwanted. When it comes to the likes of Drew Brees (who was just voted Sports Illustrated’s Sportsman of the Year), Justin Bieber, or IPod and IPad creators Apple Inc. there is nothing but positive images and good publicity.

Now what comes to mind when you think of Charlie Sheen? Not good. Or, what about Tigger Woods? Keep a low profile. Do I even need to mention Linsay Lohen? The type of fame that has been following these guys is definitely not the type of fame that you want. Unfortunately for East Texas that type of unwanted fame has come to town and it’s reared its monster head here for a while.

Since 2003 East Texas has become home to a growing number of “patent trolls” and patent infringement litigations. Simply put, these “patent trolls” look to buy patents from struggling businesses in order to target larger, successful businesses using inventions connected to the patent in order to sue for patent infringement.

Due to appealing rules, conditions, and favorable decisions for plaintiffs in the courts of Marshall, Texarkana, and Tyler, East Texas has become famous for hosting these patent trolls and their unethical way of gaining wealth.

East Texas has a long history of mostly positive publicity and reputation, but if care is not taken to deal with this growing weed of unwanted fame, that image can change.

Jury Standard Exploited in East Texas for profit motive by patent litigants

January 14th, 2011

East TX JuryWho would have ever thought that doing your civic duty would have such grave consequences? What started out as the citizens of East Texas simply fulfilling an oath to judge justly without prejudice has escalated into a gold rush of litigation battles and unethical business behavior.

Unaware for many years, the townsfolk of Marshall, Texarkana, and Tyler have become known to the legal world as having a higher percentage of deciding for plaintiffs of patent infringement cases than most other court circuits across the nation.

This has been attributed to things such as an older age group in the jury and a stronger stand on property rights, that is “what is yours is yours”. Unfortunately, some people have seen this standard as a way to turn a profit.

Namely, these people are what they call “patent trolls”. Patent trolls are companies who purchase patents from struggling businesses or firms without any plans on manufacturing the invention or technology.

Their sole use of the patent is to target any businesses that have technology or a service that might infringe on the patent in order to file a lawsuit against them for infringement.

Of course, these “patent trolls” need a feeding ground to survive and they have found that in East Texas. And it seems they are “feeding” well. Since 2003 the number of patent litigation cases in these court houses has more than quadrupled.

They only other location outside of East Texas that has hosted close to that amount of cases is Los Angeles. It’s sad to see how an unselfish act like serving in a jury has resulted in the selfish pursuit of unearned wealth.

So, next time you receive a jury summons, let’s hope your act of civil service does more to serve than not.

Choosing an East Texas Court Forum

January 11th, 2011

court forum patent trollThe Discovery Channels popular program “Myth busters” pride themselves on discovering whether or not a presupposition is correct. Well, I have a myth that needs some busting.

Is the eastern court district of Texas the best forum for patent infringement cases? Patent litigation has become more than protecting your intellectual property rights, it has become a form of business for some.

There is a genre of companies who carry the “patent troll” label based on the unethical business of obtaining patents from other businesses or firms in order to use them to collect financial rewards in patent infringement lawsuits.

Whether it’s one of these “patent troll” cases or your normal run-of-the-mill case, the plaintiff has the right to choose what “forum” or court location the case is brought to.

And throughout the patent litigation world, East Texas has become the place to go. But the question is, are the reasons why myth or reality? It has been explained that the major factors for East Texas becoming the location of choice is due to rocket docket (fast processing of patent infringement cases) and percentage of plaintiff victories.

But the truth is, in a recent investigation of patent litigation cases throughout the United States, the eastern district of Texas does not even rank in the top 5 of either one of those categories.

When it comes to “rocket docket” East Texas ranks in the bottom half and in victory percentage for plaintiffs it ranks 7th place. So is East Texas the ideal forum for patent infringement lawsuits?

When it comes to technical ranking, no it is not the best. But, just like the aging star athlete, reputation and experience can matter more, and I think that is what still makes East Texas the most popular forum.

2011 Award for most dishonest form of business goes to

January 9th, 2011

Dishonest patent litigation awardIn light of hearing the recent news that the website, WikiLeaks, has gathered confidential communications between the State Department and its many liaisons and plans on publishing it worldwide I have thought of a new yearly award we can hand out.

Well, between WikiLeaks and the unholy business of “patent trolls” buying off patents in order to use them solely as grounds for suing prospering business for patent infringement, I have gotten an idea! Let’s create an award identifying this years “Most dishonest form of business”.

Now I am sure we can sit here and think about many other candidates, but let’s get focused on pitching these two. First is WikiLeaks. Here is a business in which it’s sole purpose is to steal, bribe, cheat, and perhaps threaten life, to gather confidential, top secret type of information from national governments with the dastardly motivation to publish the info on the internet for all to see.

Doing this, of course, with the possibility of endangering military lives, or creating astronomical damage between nations, just for a profit. Then there are these “patent trolls” who represent the exact opposite of productive American business.

They, first, seek out struggling businesses, firms, or individuals who have no other choice but to sell their patent for whatever invention or product idea they have. Then, without any intention of ever manufacturing the patent idea, these “trolls” seek out successful businesses who have utilized some concept of their patented idea in order to sue them for patent infringements.

They are quite literally making money out of nothing. Looks like we have a couple of quality candidates for the award, right? Well then, drum roll please! And the winner is…