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Jury Finds Newegg Infringed Patent, Owes $2.3 Million

Jah-Wren Ryel sends this quote from Ars: "Newegg, an online retailer that has made a name for itself fighting the non-practicing patent holders sometimes called 'patent trolls,' sits on the losing end of a lawsuit tonight. An eight-person jury came back shortly after 7:00pm and found that the company infringed all four asserted claims of a patent owned by TQP Development, a company owned by patent enforcement expert Erich Spangenberg. The jury also found that the patent was valid, apparently rejecting arguments by famed cryptographer Whitfield Diffie. Diffie took the stand on Friday to argue on behalf of Newegg and against the patent. In total, the jury ordered Newegg to pay $2.3 million, a bit less than half of the $5.1 million TQP's damage expert suggested. ... TQP's single patent is tied to a failed modem business run by Michael Jones, formerly president of Telequip. TQP has acquired more than $45 million in patent licensing fees by getting settlements from a total of 139 companies since TQP argues that its patent covers SSL or TLS combined with the RC4 cipher, a common Internet security system used by retailers like Newegg."

2 of 324 comments (clear)

  1. Re:Diffie was awesome by Anonymous Coward · · Score: 5, Interesting

    Let's stop this jury are morons myth. The judges gives the jury a list of very specific questions to answer in these cases, taking 2-5 hours. It's not like 12 Angry Men, where people debate what they're heard and sway opinions.

    The judge controls the entire jury thought process and has clearly spent a long time crafting the question list beforehand. Being an expert at law, they have already determined the result and knew precisely how to ensure their verdict is the one reached, but they still need to go through the proletarians to reinforce his chosen result.

    I've been on jury duty in a bullshit patent suit, and despite the obvious sane result, the judge's contrived question list ensures you cannot come up with any result other than what (s)he has already determined. There is no "let's discuss this" based on what was presented. Any jury not doing so will be kicked out and the trial starts from fresh.

    The massive issue here is that this is all behind the scenes, none of it is allowed to become part of the public record, hence posting AC.

  2. Re:Diffie was awesome by Anonymous Coward · · Score: 5, Interesting

    I've been on jury duty in a bullshit patent suit, and despite the obvious sane result, the judge's contrived question list ensures you cannot come up with any result other than what (s)he has already determined. There is no "let's discuss this" based on what was presented. Any jury not doing so will be kicked out and the trial starts from fresh.

    Meaning a Jury could stall a verdict by doing what is right and debate the issue. correct?