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I Beat A Patent Troll And You Can Too

Posted by Zenphamy 9 years, 8 months ago to Technology
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So, I responded to their demand that we pay up or shut down with this:

Without knowing anything about the legitimacy of either side of this particular patent battle, I found this story pretty amusing as well as a good Objectivist lesson.


"Dear Piece of Sh*t,

We are currently in the process of retaining counsel and investigating this matter. As a result, we will not be able to meet your Friday deadline. After reviewing this matter with our counsel, we will provide a prompt response.

I will pray tonight that karma is real, and that you are its worthy recipient,

Chris

While my wording may have been extreme, the message got through. Needless to say, we quickly found ourselves in federal court. They asked to settle, and I told them my offer was $0 and they would need to license their entire patent portfolio to all other startups, or we would go on the offensive and invalidate their entire intellectual property portfolio"
SOURCE URL: http://techcrunch.com/2015/03/23/i-beat-a-patent-troll-and-you-can-too/


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  • Posted by Herb7734 9 years, 8 months ago
    When I was publishing graphic bios of R n R stars several of them sued my company for copyright infringement. As our company was underfunded and new we knuckled under. But as we grew and succeeded the next one to try us was confronted by a patent lawyer. The upshot was that a federal judge said that we were protected by the 2nd Amendment and they had no case. Since they were well-known national figures, they had no expectation of privacy. Actually they should have been praising us, because unlike many publishers who were only interested in the lurid and outlandish, we simply told the truth in graphic novel form. Our research was extensive and very complete, managing to portray the essence of a person in 32 pages. Mega stars such as the Beatles & Elvis required 5 editions. Once the dust settled several of the subjects became our friends.
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    • Posted by khalling 9 years, 8 months ago
      I'm glad there was somewhat of a happy ending for both sides! I live near a jerk who charges $5.00 for "movie night." These are movies that are still in the theater....ah...just no.
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      • Posted by Herb7734 9 years, 8 months ago
        Of all the rockers I met, Gene Simmons of KISS was the most avid free enterpriser. Here's the way a clever businessman thinks. While Gene is very protective of his copyrights, he realized there was nothing he could do about suing us, so instead, we joined forces and put out 5 new editions with his cooperation. When we closed the company, I turned the artwork and copyrights over to him for the cost of shipping.
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  • Posted by $ allosaur 9 years, 8 months ago
    I learn something new every time old retired dino visits the Gulch. (I only discovered Ayn Rand when the AS movies came out).
    I had already found what I knew about all the parasites out there to be very disturbing.
    This is a whole new additional division of evil people I up until now did not know about.
    All the more disturbing. Like there's a huge horde of mosquitoes out there.
    It brings into question the view that people in general are essentially good.
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  • Posted by woodlema 9 years, 8 months ago
    I have been in similar situations, the only difference is I do not drop it. I immediately return the favor and sue them for anything I can dream up using the freshly won decision as proof that THEY were attempting fraud. I believe in not just defeating the enemy but completely crushing them into nothingness.

    This past weekend I had a phone call from 360-761-1155. they claimed to be with the IRS and were demanding payment for a 2008 - 2012 tax issue. While I did have a 2008 - 2012 issue this was fully resolved. I asked for their employee id's. told them I would get back to them. I called back got another person who used another name and ID number, totally wrong number of digits for an IRS employee. I traced the call to its source in the state of Washington the owner and address, called the local police, called and emailed the IRS< called and emailed the FBI with a TON of information I collected. When I call that number now all I get is busy signal...I guess they blocked me. BTW I just called them again. I do this to EVERY call I get that is a fraud. GOD help the one that tries this on me that is within 4 hours driving distance. They will receive a personal visit from me and "Wembly" or me and my "BFR."

    The ONLY way to deal with bullies is to do exactly what you did, then step it up a bit, and if lucky, they will no longer contribute to the CO2 issues of this planet, and you can consider yourself a good steward of the planet.
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    • Posted by ewv 9 years, 8 months ago
      "This past weekend I had a phone call from 360-761-1155. they claimed to be with the IRS and were demanding payment ..."

      This IRS threat scam is very common and has unfortunately fooled a lot of people into paying thousands of dollars, probably because the scam so well fits the character of the IRS that it sounds plausible.

      Honest or not, telemarketers are required to check their phone lists against the national list of those who have signed up on the 'do not call' list to not be harassed, but they routinely ignore it. Local police do nothing about these telephone scams and the FTC is slow to go after violators of the 'do not call' list, but you can sign up for the NoMoRobo service, which works with most telephone carriers like an anti-spam blacklist and reporting system: http://www.nomorobo.com/ It's a lot easier than trying to track them down yourself.

      Nomorobo intercepts your incoming calls in parallel with your own telephone. It the source is on the blacklist your phone rings once and stops. If a spam caller gets through, you submit the caller ID number to Nomorobo for future blocking and automatic repeat reporting to the FTC.

      With this system and reporting for new harassers we now get get dramatically fewer spam calls -- including elimination of the repetitious IRS threat scam Woodlema described. Like email spammers who avoid targets who report them to blacklists, the phone scammers seem to be doing their own filtering to stay out of trouble and mostly leave you alone when they figure out that you are defending yourself, even when they otherwise ignore the 'do not call' list.
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    • Posted by khalling 9 years, 8 months ago
      I understand about fraud. Are you suggesting that anyone who enters into a patent law case and loses their case has committed fraud?
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      • Posted by woodlema 9 years, 8 months ago
        Some do some don't...those that do need dealt with harshly swiftly and decisively.
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        • Posted by khalling 9 years, 8 months ago
          sure. agreed. but many on this post are jumping up and down like this is a pervasive problem and ruining industries. We've been on both sides of the coin. Clients pursued by those with dubious claims and also letting people know when they have taken advantage of patent holders. My point is, the statistical data on these cases does not match the outrage. Where is the objectivity?
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          • Posted by woodlema 9 years, 8 months ago
            The reality is that in our society, the legal profession has become the problem, as well as the pervasive nature of our culture based on the thinking "it's easier to settle than fight," attitude, i.e. medical malpractice, and the big payouts like the DUMBASS lady who squished McDonalds hot coffee in her own crotch and won a 5 million dollar lawsuit...if I had been on that jury she would not have received a dime. I bet she irons her pants after she puts them on too.

            Until there is some REAL tort reform that address the frivolous and the outright fraudulent cases providing some significant penalty for fraud, I seriously question just about any claim made, especially when it does not pass the smell test. I just got 50 million today and tomorrow I am getting sued. The smell test is a good gauge, and common sense is generally pretty accurate..

            CTYankee poses an interesting conundrum. Looking for infringement that is justified...possibly. think about the guy who invented the intermittent windshield wiper, and the guy who invented texting.

            Or how Microsoft outright STOLE the methods from Digital Equipment to make Windows NT clustering work. All legitimate.

            But when someone is using vague, subtle ways to sue, when there is no real connection, especially when the first course of action is to sue, that is when I question things seriously.

            The "Troll" in the example above, would have been much better served by directly approaching Chris and discussing their perception of the perceived infringement. Probably could have avoided the entire court battle. But when you look at the guy, big mansion no employees, just a holding company and a layer on retainer. Smells like troll to me.
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      • Posted by $ jdg 9 years, 8 months ago
        Mostly yes. Certainly I would regard any company that doesn't do any inventing, but just buys broadly written patents and tries to enforce them, as a troll and a fraud.

        Example 1 has to be the plaintiffs in SCO v. Linux, as well as a certain billionaire competitor who everyone knows was bankrolling them.
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  • Posted by dbhalling 9 years, 8 months ago
    This article does not provide enough information to know whether the author is correct that he was the target of an unreasonable lawsuit or if he was actually just ignoring other people's property rights.

    My clients have been on both sides of these situations. Luckily, most of my clients have tried to be reasonable. In one case, the attorney on the other side refused to even discuss why they thought my client infringed and basically asked if we were willing to risk the cost of litigation. Note this is really a problem with the legal system generally and has nothing to do with patents specifically. Basically the attorney on the other side knew that the law is often an expensive crap shoot in court and his client was willing to play chicken with a million dollars. This is done in med malpractice suits, product liability suits, securities lawsuits, and a favorite tactic of many federal prosecutors and federal agencies. Don't blame patents, blame the absurdly expensive, ambiguous legal system we have.

    In the case of patents, the Supreme Court has gone out of their way to increase the uncertainty in patent lawsuits with their absurd opinions. Thus a bully is always willing to use this ambiguity in their favor. Whether you are a defendant or a plaintiff, be willing to stick your ground (within broad economic costs benefits) if you are sure you are right. That makes the system honest and deters bullies.
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    • Posted by $ blarman 9 years, 8 months ago
      So in the article, they took the matter to court and the jury found them not guilty of infringement on all three assertions, so it would seem to me that the substantive complaints in the case were settled. I think we can reasonably conclude that no actual infringement took place and answer your question.
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      • Posted by dbhalling 9 years, 8 months ago
        Your confidence is a little higher than mine, however I trust a jury more than I trust a judge.

        This does not prove that the plaintiff was necessarily unreasonable in asserting the patents however.
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    • Posted by 9 years, 8 months ago
      I agree that we don't have enough info to judge the reasonableness/unreasonableness of this particular case, but wouldn't you really like to see some clients stand up as this guy says he did? I understand the big gamble, but if he really feels he's right?
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      • Posted by dbhalling 9 years, 8 months ago
        Only if he is right. I don't know if this guy believes all patents are B.S. I don't know if he did his due diligence (a patent search and opinion) before coming out with his product and the tone of the article suggests a knee-jerk reaction that implies he did not do his research after the charging letter. I am for reasoned responses. Once you are sure you have reason on your side, then I am looking for courage.
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        • Posted by 9 years, 8 months ago
          Pretty fair response, and what I would expect from a good attorney. Although not having experienced a patent fight, I have had battles with the EEOC and DOL, both of which were absurd interpretations of rules and regulations, and I received settlement offers in each case that my attorneys recommended I take. I soon realized that was the goal of the suits brought by both agencies, to force a bullied settlement out of fear, with full knowledge of no wrong doing existing on my company's side.

          I remained firm even with a lot of shin kicks under the settlement conference tables from my attorneys for my oral responses (not written), and eventually the agencies caved in both cases. It cost quite a bit of money, but the settlement offers set precedence that offered future harm to my company and several others nationwide working in my field, which had ben the entire intent of bringing the actions. So my empathy lies with the guy being charged and I don't intend that there is any similarity between this case and mine.

          My argument is not against patent law or honest actions, its the misuse of the system.
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          • Posted by $ jdg 9 years, 8 months ago
            This is how I view the case I linked to as well.

            The difference between us is that, having spent decades in the software industry, I know that huge numbers of patents which have no business to be issued are issued anyway. Thus, I expect anyone claiming to collect on patent rights -- especially if he didn't make the invention himself and doesn't produce a product other than litigation -- to bear the burden of proof that his patent (1) is valid and (2) is broad enough that the defendant has actually infringed.
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            • Posted by 9 years, 8 months ago
              I don't know. I think buying patents from inventors that don't want to take them to market or have no interest in business and then capitalizing them is a valid business. Are they abused. Yes, but it's the screwup in the legal system that allows that, not necessarily patents. But I also think that the sheer numbers of IT patents in the last 30 or so years has opened the field to abuses. But I still think, straighten out the legal system first. Leave patents to incentivize inventors.
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      • Posted by khalling 9 years, 8 months ago
        Here's the deal. What he "feels " is irrelevant. Does he infringe? That takes hours of careful study most of the time. Then you strategize. Do app inventors do the due diligence? This "irrelevant technology" are they using it? Too many questions and few answers here, and we 're supposed to walk away with a feel good moment. Why?
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        • Posted by xthinker88 9 years, 8 months ago
          Wait! Whoa! What he feels is irrelevant?? How can that be? I thought that what he feels is the most important thing. Isn't that what we are bombarded with day in and day out. "I feel offended." "I feel like I deserve a higher wage." "I feel like the rich don't pay enough in taxes."

          There you go. Injecting reason into a feeling world. :)
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        • Posted by jabuttrick 9 years, 8 months ago
          Excellent comments by both dbhalling and khalling. Evaluating the strength of positions in patent disputes is key to developing both a litigation strategy and settlement position. As noted, the expense of proceeding can be immense and the pressure to settle commensurate. But if you are sure of your position and a person of courage, then go for it.
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  • Posted by davidmcnab 9 years, 8 months ago
    It's times like this that I truly regret not having taken that free actuarial studies degree course when it was offered to me. There is a definite gap in the market for "patent troll insurance".

    Nice story, well-related to the timely issue of bully-busting. It beautifully encompasses the problem of patent trolls and their effect on startups.

    @dbhalling, you challenged me recently to produce evidence of poor-quality patents being used to bully software developers. Here you go, this is exactly what I was talking about from the outset.

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    • Posted by khalling 9 years, 8 months ago
      david, just because you lose a patent lawsuit, it means you are a troll? Every case has a winner and loser. where's the objectivity? Note the author of the article gives no information about his case-no substantive links that I saw. He reacted immediately to the charging letter with vitriol. Have you considered the other side was at all not fraudulent?
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  • Posted by CTYankee 9 years, 8 months ago
    I'm a new Patent owner -- I'm looking for ways to monetize it. Would I be better off looking for hapless infringers or pursuing investment capital to help me bring the IP to fruition?

    Wink-wink I couldn't resist! :^)
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  • Posted by plusaf 9 years, 8 months ago
    And copyright trolls can do the same thing...
    Go to http://www.snopes.com/photos/animals/wha... and look at the photoshopped picture at the top.

    Notice that it has NO copyright watermark, while the two 'halves' it was made from do.

    I put the false one on my website and got an email from a law firm in NY demanding hundreds of dollars versus a 'we'll take you for every penny you're worth' lawsuit if I didn't pay up.

    Startled, frightened and new to the game, I paid up. About a year later, they wrote again on the same subject, LONG after I'd removed the offensive photo, and I immediately wrote back that if they were trying to hit me again, I WOULD see them in court!

    They replied that the second attack was in error and that the 'original issue had been closed.'

    Now, keep in mind that I made NO income or royalty from the photoshopped picture and I had copied the picture down from Snopes . com, which posts THEIR copy of it without watermark either.

    The link to the 'artist' is available, and I put it on my site's page where the photo had appeared... at http://www.plusaf.com/no-its-not/_no-its... scroll down about half the page to see where the photo had been....

    I offered to pay them any and all profits I'd made from the existence of that photo on my website, but they weren't interested in a check for fucking Zero Dollars.

    Life in the good old USA...
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  • Posted by $ nickursis 9 years, 8 months ago
    I got enough out of the articles to know:
    1. The guy had just gotten money for his company.
    2.Some clown collection with no staff, and a mansion in Fla preys on such situations, after having bought as many little useless patents as they could so that anything related to a pancake (such as butter) is an infringement.
    3.They had some shark bait lawyers who they probably have a deal with to share the profits so they don't have to pay the ridiculous hourly fees
    4. They knocked their little peckers in the dirt, taking minor damage in return.
    Having sued my dumb ass neighbor with 275 alpacas on 3 acres and never picked up any manure in 3 years for a nuisance, and getting 138 K in awards (which now I am blowing more money on a useless BK attorney after he fraudulently filed), I can sympathize with the whole thing.

    This is just another form of looting. Imagine GM suing Galt because he made an engine. That is where I see this mess. Good for them!
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    • Posted by khalling 9 years, 8 months ago
      nick, I appreciate your posts. you have no objective evidence to support your multi-pointed claims. HELLO A is A
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      • Posted by $ nickursis 9 years, 8 months ago
        Khalling did you read the article? That was what I got out of it. I didin't say anyone else did. A is indeed A, and they guy was stating so.
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        • Posted by plusaf 9 years, 8 months ago
          ask k if he has an axe to grind or a dog in the fight.
          I tangled with him on this some time ago.
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          • Posted by $ nickursis 9 years, 8 months ago
            No axe, no dog, just an abhorrence on the way things have decayed as AR prophesied. I, too, have seen numerous articles where the patent trolls have indeed struck claiming that they need license money for something simply because it is on the planet earth. Huge sums are spent to keep a whole herd of otherwise useless people employed just filing and fighting such garbage. I would like to know the percentage of cases that are related to "patent infringement". It's symptomatic of the whole sickness we call a "legal system".
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            • Posted by 9 years, 8 months ago
              You have a good point nick, but as the hallings point out, its not just the patent system--its the entire legal system including the criminal and even traffic court system as well.

              There has to be some way to bring the legal system as a whole back to it's intended functions, but to a large extent those within that system have taken over the legislative and even a good chunk of the bureaucratic systems as well.
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              • Posted by $ nickursis 9 years, 8 months ago
                No argument, the patent system is just a small piece of a dysfunctional legal system that has been warped to encourage legal action.After my adventures, I will never sue anyone else, if I have any other possible alternative. Total waste of time huge money and lots of effort, and then the court can give you a bizarre verdict (In my case, after 3 years of stalling and lying, the neighbor ran out of options and ended up in Court. What should have been a 2-3 day trial turned into 6 days over 3 months. In the end, after 8 witnesses and 50 exhibits the judge ruled there was no nuisance, but gave us 138K in damages for lost value. If there was no nuisance why would there be lost value? Bottom line was County did not want a precedent set and have 500 more lawsuits filed for the same thing) Just because I am ornery and hate to let evil go unpunished I am still chasing the goober, we did get him 3 years in prison, for felony animal abuse, and I am getting his BK denied so we can chase him for another 20 years if needed. Just because I am pissed off and tire of people getting away because none of the systems work. Indeed the legal system has been hijacked and is now a cottage industry, used by those with power and money to make things as they want them to be. Don't like a law? Just ignore it, the courts will see to it it takes a century to get into court.
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