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First Government Lawsuit Against a Patent Troll

walterbyrd writes "Late last year, a vigorous and secretive patent troll began sending out thousands of letters to small businesses all around the country, insisting that they owed between $900 and $1,200 per worker just for using scanners. The brazen patent-trolling scheme, carried out by a company called MPHJ technologies and dozens of shell companies with six-letter names, has caught the attention of politicians. MPHJ and its principals may have gone too far. They're now the subject of a government lawsuit targeting patent trolling—the first ever such case. Vermont Attorney General William Sorrell has filed suit in his home state, saying that MPHJ is violating Vermont consumer-protection laws."

6 of 96 comments (clear)

  1. Unintended consequences. by jacekm · · Score: 0, Insightful

    This is not neccesairly that good. I would rather see law change that prevents trolls. This development can easily evolve to a tool where large rich corporations will buy politicians to shut down legitimate small inventors. Generally I don't like governemtn to decide who is and who isn't a troll.

    1. Re:Unintended consequences. by Sique · · Score: 5, Insightful

      Generally the goverment doesn't decide who is and who isn't a troll. The Attorney General can only sue based on current law, and the judge getting the case can only decide based on current law. "Patent Troll" is not a legal term, and MPHJ doesn't get sued for being a patent troll, but for fraudulently representing what they are selling (licenses to patents they claim to have exclusive rights on, which they don't have, for instance).

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      .sig: Sique *sigh*
  2. Re:They took it seriously? by FireFury03 · · Score: 4, Insightful

    If I got a letter with that kind of language from an entity that has a name that looks like it was spewed out by a random letter generator, I'd chuck it into the trash thinking it was a scam. Because there are TONS of scams where "companies" bill for office supplies and other services that were never received with the hopes that the recipient would just pay it.

    And the fact that these scams keep happening demonstrates that there is money in it because some people fall for it. Same with spam. So the only way to stop these scammers is to actually litigate rather than just ignoring it, throwing it away and claiming it isn't a problem.

  3. Re:They took it seriously? by Cenan · · Score: 4, Insightful

    And the fact that these scams keep happening demonstrates that there is money in it because some people fall for it

    And a really low barrier of entry into the market. All it takes is a carefully worded email and a public search on people to send it to, and you're good. You don't need to worry about court fees or anything, since you plan on dropping the case before any papers are filed.

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    ... whatever ...
  4. Re:They took it seriously? by FireFury03 · · Score: 4, Insightful

    Yet, litigating is expensive, and ignoring/throwing it away is cheap

    Which is why individuals can't be expected to do it - this is the government's job in the interest of protecting the law abiding public.

  5. Re:Reverse Psychology by gstoddart · · Score: 3, Insightful

    I'm pretty sure this was just bullshit lawyering, not some principled stand of protest against the patent system.

    This reads much more like shady asshole lawyers than any caped crusaders. Because good guys don't send threatening legal notices to innocent bystanders and demand settlement money.

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    Lost at C:>. Found at C.