Slashdot Mirror
Bill Would Force Patent Trolls To Pay Defendants' Legal Bills
First time accepted submitter TrueSatan writes "With support from the EFF's Defend Freedom Project two Republican congressmen seek to introduce a bill called the 'Shield Act' which, if passed, would enable judges to award costs to defendants if they are found to be the victims of frivolous patent litigation. From the article: 'A new bill introduced in the House of Representatives attempts to deter frivolous patent litigation by forcing unsuccessful patent plaintiffs to cover defendants' legal costs. Introduced by Rep. Peter DeFazio (D-OR) and co-sponsored by Rep. Jason Chaffetz (R-UT), the Saving High-Tech Innovators from Egregious Legal Disputes (SHIELD) Act is limited to patents related to computer hardware and software.'"
Much as I'd like to believe that this is the result of politicians actually having a good idea, I suspect it's nothing but a negotiation ploy because they want bigger payments from corporations who draw a large revenue stream from the questionable use of patents.
Google, on the other hand, will be on hot waters especially with the recent purchase of Motorola Mobility.
Er, this isn't a retroactive bill ... not to mention legal costs (while big numbers to us) don't mean a whole lot to a company like Google. $40 million in lawyer fees? Drop in the bucket.
Google posted around $2.7 billion in profits for Q4 of 2011, so let's figure they make around $10 billion in profits per year.
$40 million out of $10 billion in profit is like Joe Average taking home $50,000/yr and spending $200 on lawyer fees. (An imperfect analogy, but it shows how little Google's profit margin is hurt by lawyer fees.)
If the claims are truly frivolous the plaintiff should have to pay whatever they asked for in damages to compensate their intended victim for damage to their reputation. And it shouldn't just apply to trolls. The same should go for big sue-happy companies.
The reason it's unnecessary is that the law already allows the judge to order the plaintiff to pay the defendant's costs and attorney fees if he determines that the lawsuit was frivolous. This law, like many others, is a purely political move with no purpose but to create redundant legislation. The problem is that redundancy in the law can actually create ambiguity in its meaning. Neither patent trolls nor their victims will actually be affected by this one, except that the lawyers on both sides will get to play with the law's meaning more and, of course, bill for it.
If it is cleverly spent, it could work.
However, let's not forget the scale. If $40 million buys billions (let's say 2 billion), then $200 buys $10,000. That could be a simple matter of taking the mayor for a good meal and discussing a zoning issue, or a vending permit.
When our name is on the back of your car, we're behind you all the way!
"Bill would force patent trolls *and their attorneys* to pay defendants' legal bills"