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Patent Troll Targeting Users of Scanners; Wants $1000/Employee

New submitter earlzdotnet writes "A new patent troll is in town, this time targeting the users of technology, rather than the creators. They appear to hold a process patent for 'scanning a document and then emailing it.' They are targeting small businesses in a variety of locations and usually want somewhere between $900 to $1200 per employee for 'infringement' of their patent. As with most patent trolls, they go by a number of shell companies, but the original company name appears to be Project Paperless LLC. Joel Spolsky said in a tweet that 'This is organized crime, plain and simple...' I tend to agree with him. When will something be done about this legal mafia?"

44 of 227 comments (clear)

  1. Huh?? by ZorinLynx · · Score: 4, Insightful

    How does this hold any legal water at all? Isn't the manufacturer of a product liable for patent infringements, not the end user?

    1. Re:Huh?? by maxwell+demon · · Score: 5, Informative

      It's a process patent, according to the summary. I'd say it's the end user who does the process of scanning, then sending the scanned page by email.

      --
      The Tao of math: The numbers you can count are not the real numbers.
    2. Re:Huh?? by DJ+Jones · · Score: 5, Informative

      Yes, except in this case, the patent office allowed someone to patent a process and not an invention so general legal logic goes out the window right there.

      That and those fines appear to fall just beneath what it would cost to get a patent lawyer to fight the charge so on a pure revenue basis, it's cheaper to pay the ransom.

    3. Re:Huh?? by h4rr4r · · Score: 2

      Most office scanners do that process themselves these days, I think. You scan the image and enter the address into the scanner/printer/fax and it sends it.

    4. Re:Huh?? by CastrTroy · · Score: 4, Informative

      Sorry, but this patent is stupid. This is basically sending an attachment in an email. And the patent is on where the attachment originated from (the scanner). How this is not obvious to anybody who has ever sent an email with an attachment is quite beyond me.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    5. Re:Huh?? by Anonymous Coward · · Score: 2, Informative

      Both can be liable: the manufacturer for making the product, and the end user (or other downstream customer) for using it. But as a practical matter, a manufacturer will often end up defending an infringement lawsuit against its customers (and some actually commit to doing so in their EULAs). If a patentee is actually looking for real damages, they generally want the manufacturer to be involved in the case (often a deeper pocket than the typical customer).

      But in a situation like this, it's clear that court is the last place these patent holders want to be (TFA describes how they almost immediately dropped the case when a defendant started pushing back hard). Given that, they leave the 800-pound gorillas alone and shake down the little fish. Now, if enough end users played chicken by ignoring the initial demand and then the handful that actually were sued (to set an example) were committed to fighting in court long enough for the licensee to get tired of spending money, the entire game probably would grind to a halt in fairly short order. Outfits like this really just (1) prey on the fears of the legally unsophisticated; and (2) ask for sums of money small enough that most think it better/easier to write the check and move on rather than keeping an unbounded potential liability on their books.

      And yes, IAAPL.

    6. Re:Huh?? by mug+funky · · Score: 5, Funny

      legal precedent: arkell v pressdram

    7. Re:Huh?? by cheater512 · · Score: 3, Funny

      Err....what general legal logic?

    8. Re:Huh?? by bhagwad · · Score: 2

      As a responsible citizen, it's up to you to ensure that whatever you do doesn't violate any patents.

      Ignorance of the law is no excuse.

      Enjoy!

    9. Re:Huh?? by Nidi62 · · Score: 3, Funny

      As a responsible citizen, it's up to you to ensure that whatever you do doesn't violate any patents.

      Ignorance of the law is no excuse.

      Enjoy!

      Sorry, I already patented a method by which an individual analyzes manual physical processes to ascertain any potential conflict with applicable licenseable material.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    10. Re:Huh?? by mbone · · Score: 2

      Patent attorney's I have talked to say not to start a patent lawsuit without a few million US dollars for initial costs.

    11. Re:Huh?? by interkin3tic · · Score: 2

      How does this hold any legal water at all?

      You act as if there are a set of rational rules regarding intellectual property laws, when reality quite clearly demonstrates there's nothing at all logical about any of it.

      I keep expecting to hear that patent trolls are going to make anti-patents and will be able to sue you for NOT using them.

    12. Re:Huh?? by Scarletdown · · Score: 2

      It doesn't even make sense as extortion. They are setting the fees so high that companies may be tempted to view settling as the more expensive alternative.

      If they want to play Mafia games, then there is a small danger that some of these companies they extort may find that pooling resources and paying someone $10K or so plus expenses to take out these turds may be a more economical solution than either paying the troll or settling.

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      This space unintentionally left blank.
  2. Upper right hand corner ad by FarField12 · · Score: 2, Interesting

    (Right, Upper hand corner of this page for me.)
    "Wondering what your patents might be worth in the current market?"
    Wow! I can't resist selling my patents!
    Ahem! Well, back to /.
    'Those lousy trolls, I wish they would just go away.'

  3. come get us bitches by Anonymous Coward · · Score: 2, Interesting

    Food Concepts Inc
    2551 Parmenter St
    Middleton, Wi
    53562

    I fucking double dare you.

    1. Re:come get us bitches by SomeJoel · · Score: 2

      Somehow, this reminds me of putting a bumper sticker on someone else's car that says "I dare you to pull me over, PIG!"

      --
      <Complete your profile by adding a signature!>
    2. Re:come get us bitches by Nethemas+the+Great · · Score: 2

      I'm reminded of Bush Jr.'s "bring it on".

      --
      Two of my imaginary friends reproduced once ... with negative results.
  4. 35 USC section 271 - Infringement by L.+J.+Beauregard · · Score: 5, Informative

    (a) Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent.

    --
    Ooh, moderator points! Five more idjits go to Minus One Hell!
    Delendae sunt RIAA, MPAA et Windoze
    1. Re:35 USC section 271 - Infringement by qbitslayer · · Score: 2

      Just as I thought. It's not the legal mafia that is at fault here. It's the intellectual property system that is the law of the land. We need a better system that rewards inventors and creators for their hard work but does not infringe on the right of the people to be free.

    2. Re:35 USC section 271 - Infringement by mug+funky · · Score: 2

      you should bold the word "invention", which this patent is not.

    3. Re:35 USC section 271 - Infringement by Scarletdown · · Score: 3, Insightful

      Just as I thought. It's not the legal mafia that is at fault here. It's the intellectual property system that is the law of the land.

      The fault is shared equally with both our imaginary property system AND the sociopathic assholes who choose to abuse it like this.

      --
      This space unintentionally left blank.
  5. I was browsing the web and I found... by Phics · · Score: 5, Informative
    --
    There are two types of people in the world; those who believe there are two types of people, and those who don't.
  6. Process Patents by Damastus+the+WizLiz · · Score: 4, Funny

    Has anyone patented the process of sueing people for violations of patents? If not someone better get on it quickly. Millions of dollars in settlements are being lost every minute now.

    --
    I often have trouble remembering which way is out of bed in the morning.
  7. Jokes on them. by Anonymous Coward · · Score: 5, Funny

    I don't e-mail people my scans, I upload them to Megaupload and send them the link.

    Foolproof.

    1. Re:Jokes on them. by crypticedge · · Score: 4, Funny

      Dare I say, woosh?

  8. So? Just another scam by alen · · Score: 2

    In the old days you would send a fake purchase order for some low amount to finance and demand to get paid. This is just another scam like that

    I guess people need to be outraged about something

  9. Re:Organized crime by CanHasDIY · · Score: 2, Insightful

    Sorry, I RTFA (bad form) and I missed the part where the government is extorting money from people for scanning and emailing documents. But thanks for your "F the gubberment!!!"" post which is always good for some cheap mod points. If that's what you're into.

    Question 1: Who develops and maintains the patent system that not only allows, but seemingly encourages this sort of trolling behavior?

    Question 2: Assuming a correct answer for question one, do they who maintain the patent system profit from this sort of trolling behavior?

    I fail to see how anyone who answers those questions honestly can absolve the government of blame.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  10. In some way this could be good news. by 140Mandak262Jamuna · · Score: 2
    So many people just shrug their shoulders and show no interest at all in any of these outrageous patients. Sort of, "only raving lunatic nerds who read slashdot bother about it. The situation can't be that bad". When they suddenly face the prospect of being slapped with a law-suite they might sit up, take notice and stir up a storm. Like the fine print in the Instagram was not new or anything. Probably all those YouTube videos too have similar clauses. But nobody bothered. But suddenly it became a media frenzy.

    Let us be very helpful to this troll and send him names and addresses of all the congresscritters and judges who might have been in violation of the claimed patent. Some how get him to include the names of these figures whose power/IQ ratio approaches infinity. Then may be some reform might happen.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  11. Who Owns Project Paperless LLC? by cultiv8 · · Score: 4, Informative
    According to http://stop-project-paperless.com/project-paperless-llc, these guys: http://www.hkw-law.com./

    Public records indicate that each of the partners in the law firm of Hill, Kertscher, & Wharton are either managers, members, or organizers in one or more of the shell companies which in turn appear to have a stake in Project Paperless, LLC.

    --
    sysadmins and parents of newborns get the same amount of sleep.
  12. Online world carries over into the real world by jandrese · · Score: 4, Interesting

    Her study of startups targeted by patent trolls found that when confronted with a patent demand, 22 percent ignored it entirely. Compare that with the 35 percent that decided to fight back and 18 percent that folded. Ignoring the demand was the cheapest option ($3,000 on average) versus fighting in court, which was the most expensive ($870,000 on average).

    So the best way to deal with trolls in the real world is the same as the online world: simply ignore them. If they want to sue you, then make them go through all the expense and trouble of making the case--most of the time they won't even bother. These are basically old timey protection rackets. They're trying to put the minimum amount of effort in to get the biggest return. They might try to make an example of a company or two, but it probably won't be you.

    --

    I read the internet for the articles.
  13. When will something be done about this legal mafia by rudy_wayne · · Score: 5, Insightful

    When will something be done about this legal mafia?

    Nothing will ever be done because every major company is playing the game.

    Google, Apple, Microsoft, IBM . . . . . every big company with deep pockets has been hit by patent trolls. So why don't they all get together and use their considerable lobbying power to demand that congress change the law? Why? Because they don't really want the law changed. They want to be able to whack somebody with a patent lawsuit when it suits them.

    Bogus patents are the new nuclear weapons. Everyone knows they are bad and destructive, they serve no useful purpose and should be eliminated. But nobody is willing to actually do that because some day they might need a weapon to use against a competitor. That's the new business model. Litigation instead of competition.

  14. Prior Art by Jason+Levine · · Score: 3, Informative

    The patents were filed beginning in 1997. Does anyone know if scanners from 1996 were able to scan in a document, launch an e-mail application, and attach said document to the e-mail? A quick Google Groups search did uncover a "photo scanning service" that promised to scan your photo and send it to you via e-mail. https://groups.google.com/group/nyc.singles/browse_thread/thread/6b8e902ec9996435/a1a550f3f5398a27?hl=en&q=scan+attach+to+e-mail#a1a550f3f5398a27

    Also, for reference (and since people might not read the article), here are links to the patents in question:
    http://www.google.com/patents/US6185590
    http://www.google.com/patents/US6771381
    http://www.google.com/patents/US7477410
    http://www.google.com/patents/US7986426

    --
    My sci-fi novel, Ghost Thief, is now available from Amazon.com.
    1. Re:Prior Art by bill_mcgonigle · · Score: 3, Informative

      Does anyone know if scanners from 1996 were able to scan in a document, launch an e-mail application, and attach said document to the e-mail?

      Yes, Paperport from Visoneer was one. The Mac version was AppleScriptable and people regularly did things like transfer scanned images into e-mails, Filemaker databases, etc.

      aside: the term TFS is looking for is "Legal Plunder". Bastiat coined it in 1850 in The Law, and it was then an existing problem, so don't expect a quick resolution so long as the same power structures remain in place (people hate to admit that they're the ones with the role of being fleeced).

      --
      My God, it's Full of Source!
      OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
  15. Re:When you vote them out of office? by Charliemopps · · Score: 2

    Or the naive assumption that we have any choice in who we vote for.

  16. Re:first post! by jamstar7 · · Score: 3, Insightful

    Just 100 dollars? :D

    He's European. They use the '.' where we Americans would use a ','.

    --
    Understanding the scope of the problem is the first step on the path to true panic.
  17. Re:Reason for suing the end user is simple by Gilmoure · · Score: 2

    Or wrap it in a Taun-Taun carcass and strap it to the hood.

    Not that I have a patent on this particular grocery retrieval process.

    --
    I drank what? -- Socrates
  18. Re:first post! by Anonymous Coward · · Score: 2, Funny

    So $100, to the thousandth. Got it. Wrong is wrong, I don't care where he is from.

    No.
    So $100. to the thousandth, Got it, Wrong is wrong. I don't care where he is from,

  19. Re:You guys are suckers. by TheSkepticalOptimist · · Score: 2

    If you RTFA you would realize in this case this is different then every other patent story posted on Slashdot.

    This story is about the legal equivalent of you being sued because you wipe your ass with your left hand. Sure someone could in fact hold a legitimate patent for the process of left handed ass wiping but there is no legal precedence for suing people because they use their left hand for wiping their asses. Spend a second and think about the stupidity of someone claiming $1000 in damage per person that uses their left hand for wiping their asses. Now spend another second thinking about how stupid it is for people in an office using the technology that exists in the office to scan and email a document and someone asking $1000 per person.

    The only valid complaint this patent holder could have is to sue printer or scanner manufactures that offer scan to email features. Users of an idea do not violate patent law, period. You don't have to be a patent attorney to realize something is very wrong, this is not some example of a legitimate patent holder collecting their dues, this is outright extortion. You don't have to be an expert to have a comment about common sense.

    You bitch about people flying off the handle before reading the story, but obviously you couldn't wait for the first patent story of the day to hit Slashdot before releasing your stupid rant without reading the article or applying any thought about it.

    I might be a sucker, but I ain't no fool.

    --
    I haven't thought of anything clever to put here, but then again most of you haven't either.
  20. Re:Reason for suing the end user is simple by vlm · · Score: 2

    There's a haggis joke in here somewhere

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
  21. Re:Balancing act by jmauro · · Score: 2

    They're never going to get to the point of actually suing anyone in court. If someone puts up even a iota of a fight, they'll just dismiss the lawsuit and move on.

    They're looking for easy targets who will just pay up without asking questions, which is why they're suing smaller companies. Someone like HP would eat them for lunch and get the patent invalidated.

  22. Re:When you vote them out of office? by tqk · · Score: 2

    Or the naive assumtion that once in office one will act differently than the other. After all, you're the product that they're selling out to their real benefactors.

    --
    "Tongue tied and twisted, just an Earth bound misfit ..." -- Pink Floyd.
  23. But we've doing this since before their earlies Pa by aklinux · · Score: 2

    Their earliest patent filing from the document at the embedded link is 1997, but Visioneer came out w/ the PaperMax in 1994 and it was advertised to do this. They defaulted to a proprietary format, but could also be output to a PDF and attached to an email. I got my 1st Visioneer about 1996 or so.

    As Xerox bought out Visioneer a few years ago, I assume they got any patents and licensing.

    I wonder if this is why the trolls are going after the users instead of the manufactures. Minolta, HP, and the others selling equipment to do this are probably operating under Xerox licenses and there's nothing to go after there.

    http://www.usnews.com/usnews/culture/articles/941128/archive_013727_3.htm

  24. ahh the irony by apcullen · · Score: 2

    Most businesses have now implemented stupid email "retention" policies to avoid law suits that require all email to be deleted after an insanely short time (my company has gone from 6 months to 1 month).
     
      If only the kept that old email, and could show just ONE scanned document being emailed prior to the patent, they'd have prior art.

  25. My client received on of these ... by PatentMagus · · Score: 2

    One of my clients received one of these letters. It's a pretty laughable attempt at extortion. Because:

    1. You can't tell if the extortionist is related in any way to the patent holder.
    2. They tell you to do your own investigation, provide some pointers, and provide bank routing money for your EFT.
    3. They haven't done their jurisdiction homework (RightHaven got hammered for this).

    and these are just some of the procedural problems. The prior art issues don't even come into play. I don't think their letter even supports suing for a declaratory judgment against anyone. If they sent me one of these then I'd just throw it away without giving it further consideration. On the other hand, as a patent lawyer and litigator I can afford a far riskier strategy than most.

    I think the extortionists waited until the patent reexamination/review process got significantly more extensive before they started their campaign. The America Invents Act raised the fee for ex-parte reexamination to $17,750 and for inter-partes review to $27,200.

    --
    I am a lawyer, but not yours. Anything I tell you might be a total lie intended to benefit my clients at your expense.