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Eastern Federal court and the USPTO, Who is to blame for patent litigation run a muck?

January 5th, 2011

district court eastern district of texasFor those who hadn’t seen the show “Marriage Ref” one thing that happens to you when you watch is you find yourself quickly trying to identify who you side with. Taking you through a collage of video footage, you hear about a problem in the marriage and watch as celebrities and the host decides who is at fault.

I’m thinking we should set up a “Marriage Ref” between the eastern federal court district of Texas and the United States Patent and Trademark Office (USPTO). And the problem?

Who’s more to blame for the out of control patent infringement litigation trend? On one side is East Texas’ very own establishing a standard of court decisions that has rewarded the majority patent holders of infringement.

On the other side is the USPTO and what could be seen as a low standard for patents to be given. Although giving the blame to one or the other isn’t as important as dealing with the problem itself. There is a laundry list of reasons that can be given as to why the obvious abuse of patent litigation needs to be stopped.

There is also a pretty good list of what can be done to hinder this. But these two groups stand at opposite ends of the spectrum with potential to put an end to this abuse. At the grass roots the USPTO can raise the standard of issuance of patents to be more clear in its distinction and perhaps concerning the manufacturing of the patent invention.

At the other end, court districts like the ones in East Texas can tweak its standard of what real damage has happened and the amount of compensation. Either way, something needs to be done to get this marriage cleaned up.

Misunderstood patent holders with rights fighting in East Texas

January 3rd, 2011

Misunderstood patent trollsIt’s one of your classic movie plots. Good guys fight bad guys, only to find out that bad guys are misunderstood, thus a compromise is made, fighting stops and now, no more enemies. So it would seem to be taking place in the federal court rooms of East Texas and other parts of the United States.

Could it be that the so called “patent trolls” that have been portrayed as abusers of our legal system for profit are, in reality, simply misunderstood patent holders with rights?

The rising unethical practice of purchasing unmanufactured patent rights in order to sue companies with manufactured products that have the possibility of infringing on the patent has made its enemies throughout the last number of years.

And as the practice is understood, it is justifiably so. But are these “trolls” really doing anything different than your average patent holder? The very creation of the concept of patent holding is to ensure the protection of intellectual property or ideas of invention.

When a patent holders “property” is being produced without their permission, they have the right to be compensated for the infringed use of their idea. This means that the accused patent trolls are practicing the same rights as any patent holder when they pursue anybody who has produced a product or service that infringes upon their patent.

So, technically they are under the same labeling as your average patent holder. Where they vary from the rest is in the area of morally or ethics of why they do it. The pure concept of the labeling a company a ”patent troll” is based on the aggressive pursuit and use of patents solely for litigation without any motivation to manufacture the product, which stunts innovation.

So, our beloved patent trolls not misunderstood, they are bad through and through.

Home of the best ever patent litigation judge this side of Pecos

January 3rd, 2011

John Ward Marshall TexasYou’ve seen the signs. It usually takes place as your entering into a county, small town, and even a few medium sized cities. Just as you drive up, you look to see what the highway sign says and there you see it, “Home of…” and thereafter follows the name of the local man or woman who has made some type of impact to bring recognition to their hometown.

I remember one of the most recent examples I’ve seen while passing through New Mexico. There it was, “Home of Brian Urlacher.” Of course, like any red blooded American I recognized the name of the Chicago Bears bone crushing linebacker.

When thinking about the type of recognition a couple of local boys are getting in the towns of Marshall, Texarkana, and Tyler I’m starting to wonder if their names deserve being put on a highway sign. I can see it now, “Home of T. John Ward Jr.” What, you don’t recognize the name?

Let me elaborate. For those who have not heard, there is a trend taking place in the court rooms of these 3 East Texas towns that has waves of lawyers and legal representatives from all parts of the United States flooding in, and they are getting beat out by the local guy.

This trend is the ever growing patent infringement litigation cases. Due to favorable decisions for plaintiffs of patent infringement cases, anyone looking to win their case makes sure it happens in East Texas.

And this includes patent trolls, those appropriately labeled businesses that only look to buy patents from other businesses in order to use them for these types of infringement cases. And when it comes to winning these cases, the local names are getting game. One key ingredient to winning cases in these counties is to have a local lawyer who knows the jury and what they want to hear.

With big names companies entering in these cases you would expect to hear big name lawyers, but rather, the names you hear are from the graduating class of ’72 of the local high school, and that’s something to hang your hat on.

Patent Litigation, forum shopping and the death of a town

January 1st, 2011
marshall texas forum shoppingChoosing the lesser of two evils always sounds good at the time. But when it comes time to be the one to choose, it’s a lot better said than done.And when it comes to the debate over patent reform, whatever decision might be made, somebody is going to suffer. So the question is, which is worse: the loss of job opportunities worldwide or the possible death of a town.

The two sides of patent form goes like this. If the different aspects of reform go through, the town of Marshall will lose pretty much all footing it has gained for being recognized as the ideal location for plaintiffs of patent infringement lawsuits.

The types of changes that would affect them include forum shopping, lower damage rewards, and tighter infringement standards. Considering that Marshall has become the patent litigation “Mecca” because of its favorable findings for and large pay outs, these law changes would leave them dead in the water.

The worst of the changes would be eliminating forum shopping. The large number of patent infringement cases that has come to Marshall is due to the plaintiffs in the case being able to choose its location, and any dummy knows that it is better to hold your case in a location with the highest percentage of plaintiffs wins in the nation.

If these laws pass, the economic revolution that Marshall has experienced will come to an end. The side of patent reform is how litigation has stunted innovation and thus, job creation.

Because of the amount of money and time being spent in court houses for patent infringement companies and firms are handcuffed to pursue other possibilities, thus, handcuffed to hire more people. So, you tell me, which is the lesser of two evils?

Kryptonite to defendants of patent infringement cases

December 29th, 2010

kryptonite for patent litigationI can see now: “Come to Marshall where you are sure to lose lots of money!” Of course it could read in reverse: “Come to Marshall where you are sure to win lots of money!” Then again, they could post both with one stating it’s for defendants and the other stating it’s for plaintiffs.

Silly as all that sounds, the truth is, Marshall Texas, has become the “kryptonite” to defendants of patent infringement cases. The percentage of plaintiffs who have won these types of cases in the court circuit of Marshall and other East Texas towns has set such a standard that big company defendants don’t even take the time to set foot in town.

The cost and process of having the case in Marshall becomes so much, as the companies are located in places like the Northeast and West Coast, which more often than not the companies settle out of court. They simply look to cut the cost and get it over with.

Unfortunately, it’s this manner of dealing with the cases that encourages “patent troll” types to invest heavily to get hold of patents simply to establish a legitimate case to accuse these companies of patent infringement, knowing that they will want to settle.

For a town known for its home-cooking-welcome-to-grandmas-home feel to it, it is quite surprising that the mere mentioning of its name brings fear to companies like, Cisco, Microsoft, and Time Warner. But the truth is, Marshall Texas has become a grave yard for defendants of patent litigation.