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East Texas Gives Large Compensation to Patent Holders

January 27th, 2011

East Texas CourtsDoesn’t it seem like every time a commercial comes on advertising some new technology or service, you have to do a Google search just to understand what their talking about?

Droid phones, 3G, 4G, IPads, Blackberry, and the list goes on and on. We are facing a modern age in which the inventing and producing of new technology is moving at lightning speed and whoever is at the front will make the most money.

Unfortunately, other aspects of the technology business are not keeping up. This is especially true when it comes to patents and what constitutes patent infringement.

Now, we are not just talking about keeping up with the incredible growth of wireless media that has taken place this last decade, we are talking 50 years since they set the standard that is currently being used to assign and distinguish patents.

And what that means is that the standard in which the courts of East Texas use to hand out high money compensation for patent infringement is outdated.

It is this exact standard in question that the citizens and judges of the courts in Marshall, Texarkana, and Tyler have used to award hundreds of millions of dollars for patent infringement.

The two major factors in question in the current standard is to what extent a patent reaches in certain technology and how much financial damage is really taking place with infringements.

Both factors, if changed, would lower the amount of compensation dramatically. Considering that the majority of new technology deals with multiple patents, the potential of monster lawsuits bringing some companies to their knees is in the future if the current standard is not updated.

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.

Patent Troll Basics

November 2nd, 2010

If you’ve heard the term patent troll but are not sure what it means, then you’re in the right place. A patent troll, sometimes called a patent pirate, is a company or other entity, sometimes an individual that uses patent law to enforce patents against potential offenders in exchange for a payout. This practice is questionable, but current patent law allows it.

Click here to contact a patent law attorney

Patent trolls have no interest in using the patents they obtain for anything except as bartering power with large companies. Sometimes patent trolls purchase patents from companies that are willing to sell due to the fact that they never made what they had patented. In other cases, patents are bought in bulk quantities from companies going out of business or bankrupt.

The reason patent trolling is so lucrative, especially in hotspots like Tyler, Texas, is because it is very common for the patent troll that holds the patent to win in a lawsuit, which can sometimes mean payouts of millions of dollars with very little work being done by the patent troll.

Obviously, patent trolling is of questionable ethics but that only matters so much. The real problem is that current patent law allows patent holders to go after other entities even if they haven’t acted on their patent. Being the owner of the patent, even if you never used it, puts you in a position to barter with large companies with the threat of taking them to court for patent infringement. No company wants to deal with a patent infringement case and many cannot afford it period. Thus, patent trolls usually are able to “bully” the companies into paying an outside of court settlement.

Click here to contact a patent law attorney