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Newegg Defeats Alcatel-Lucent in Third Patent Win This Year

Newegg's policy of not backing down from patent trolls, even ones as large as Alcatel-Lucent, continues to result in victory. Earlier this year, Overstock and Newegg successfully defended themselves with a jury invalidating Alcatel-Lucent's main patent used to force companies as large as Amazon to settle. Naturally, Alcatel-Lucent appealed, but the appeals court quickly ruled in favor of Newegg and Overstock.com. From Ars: "Federal Circuit judges typically take months, and occasionally years, to review the patent appeals that come before them. Briefs in this case were submitted last year, and oral arguments were held last Friday, May 10. The three-judge panel upheld Newegg's win (PDF), without comment — in just three days. ... Alcatel-Lucent dropped the case over its other two patents, desperate to get back the '131 patent that Newegg and Overstock had killed at trial. 'If they had been able to revive this patent, the litigation machine would have continued on,' Reines told Reuters after the win."

9 of 143 comments (clear)

  1. A simple summary... by PortHaven · · Score: 4, Insightful

    Of the patent(s) at hand would have been nice...

    1. Re:A simple summary... by EmagGeek · · Score: 4, Insightful

      Yeah I'm an idiot and didn't see that there :p

  2. Patent office should have to pay legal fees by RichMan · · Score: 4, Insightful

    The patent office should have to pay the legal fees of the winning side every time a patent is defeated in court.

    The patent office are the gate keepers. They are currently enabling all the patent shakedowns.

    For proper control every system needs proper negative feedback. If the patent office gets money for granting patents and does not lose money for granting bogus patents they are going to grant everything under the sun to encourage more applications and more incoming money.
    Only by penalizing the patent office for improper patent granting will there be a proper measure of control.

    1. Re:Patent office should have to pay legal fees by Jah-Wren+Ryel · · Score: 4, Insightful

      Maybe not only the patent office, but both the company that filed or bought the patent should get to pay. Not just the legal fees, but a penalty on top. That should make people consider more carefully when they buy or file a patent.

      Forget fining the patent office -- all that will do is reduce the funding available for patent examiners to do their jobs causing the reverse effect of letting more bad patents slip through. But a fine on the patent holder for certain kinds of invalidations sounds good to me. It is my understanding that it is the patent filer's responsibility to seek out prior art as part of the application process. If a patent is invalidated for what is essentially failure to follow the filing process correctly then I think a big fine is appropriate.

      What we do not want is to turn the system into one where a big company can simply out-lawyer a small patent holder and then add insult to injury by forcing them to pay a fine too. That increased risk would discourage little guys with validly patentable inventions from filing in the first place (or force them to settle out of the court on poor terms).

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      When information is power, privacy is freedom.
  3. Lesson from primary school by dkleinsc · · Score: 5, Insightful

    The best way to deal with a playground bully is to punch him in the face. Even if he has his buddies with him. Even if you'll get disciplined by the school. You do that a few times, and no one will mess with you.

    The same principle applies to patent trolls: Always fight if you can at all manage it.

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    I am officially gone from /. Long live http://www.soylentnews.com/
  4. Newegg is no mom 'n' pop. by MickyTheIdiot · · Score: 5, Insightful

    Newegg might be smaller than Lucent, but they are still not a Mon 'n' Pop. I know that in the corporate mind anything under a thousand employees is "small business" but, face it, Newegg is not small business.

    The real tragedy with patent trolls is that the *real* small business can not fight them. They can shut down a business writing innovative software with 2-3 employees just like that.

    Good for Newegg, but treating it like a David vs. Goliath win is not too smart.

  5. Re:too bad its not precedential by Lloyd_Bryant · · Score: 4, Insightful

    i wanted to scan the opinion, but there is none. and the decision says nonprecedential.

    not a lawyer but it seems this decision cannot set a legal precedent for future cases

    There was no precedent to be set here. Basically, the appeal was Alcatel trying to get its favorite patent un-invalidated, and the the judges looked at the case and are basically telling Alcatel "There's nothing wrong with the lower court's decisions - it stays invalidated. Now go away and quit bothering us".

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    Don't tell me to get a life. I had one once. It sucked.
  6. Re:Seriously? by Lumpy · · Score: 4, Insightful

    A patent should require a physical object. Yes that means method and software patents die instantly, which is a very good thing.

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    Do not look at laser with remaining good eye.
  7. Re:Force by Anonymous Coward · · Score: 5, Insightful

    Actually, their view is somewhat more long-sighted than that. "We know settling this one patent would be cheaper than fighting, but settling would encourage a flood of other patent trolls to try and that would be more expensive."