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A Federal Judge's Decision Could End Patent Trolling (computerworld.com)

"Forcing law firms to pay defendants' legal bills could undermine the business model of patent trolls," reports Computerworld. whoever57 writes: Patent trolls rely on the fact that they have no assets and, if they lose a case, they can fold the company that owned the patent and sued, thus avoiding paying any of the defendant's legal bills. However in a recent case, the judge told the winning defendant that it can claim its legal bills from the law firm. The decision is based on the plaintiff's law firm using a contract under which it would take a portion of any judgment, making it more than just counsel, but instead a partner with the plaintiff. This will likely result in law firms wanting to be paid up front, instead of offering a contingency-based fee.
The federal judge's decision "attacks the heart of the patent-troll system," according to the article, which adds that patent trolls are "the best evidence that pure evil exists."

38 of 168 comments (clear)

  1. Thanks EditorDave! by Notabadguy · · Score: 4, Insightful

    The recent rash of clickbait on Slashdot made me expect this headline to be, "Could a Federal Judge's Decision End Patent Trolling?"

    Thanks for not being a shitposting assclown. May your peers follow your example.

  2. Is THAT really "pure evil"? by mi · · Score: 5, Insightful

    patent trolls are "the best evidence that pure evil exists."

    Not to deny that abuse of the patent-system is wrong, but things like murdering a girl after raping her seem evil of considerably higher purity.

    --
    In Soviet Washington the swamp drains you.
    1. Re:Is THAT really "pure evil"? by klingens · · Score: 4, Interesting

      I kinda disagree.
      A murdering rapist is a totally batshit crazy insane individual. So far off the reservation there is not even a planet in sight. No standard of behaviour can be expected from such a person. Probably cannot really comprehend what he's doing.

      A patent troll however is a totally sane and calculating individual according to any textbook. However he does his actions anyways. That is pure evil.

      Batshit crazy vs. pure evil.

    2. Re:Is THAT really "pure evil"? by Anonymous Coward · · Score: 5, Funny

      Hyperbole is the most heinous abomination against God that mankind has ever committed.

    3. Re:Is THAT really "pure evil"? by MightyMartian · · Score: 5, Insightful

      I think each shows a kind of pure evil in its own way. Yes, as a matter of degrees some sociopath with a law degree who uses his intellect and education to fuck over entire industries isn't committing an act quite as evil as a psychopathic pedophile that rapes and murders a child.

      Or, maybe in some cases patent trolls and murderers same degree of evil.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    4. Re:Is THAT really "pure evil"? by ClickOnThis · · Score: 5, Funny

      Hyperbole is the most heinous abomination against God that mankind has ever committed.

      I call BS. All generalizations are false.

      Wait...

      --
      If it weren't for deadlines, nothing would be late.
    5. Re:Is THAT really "pure evil"? by Dahamma · · Score: 2

      A murdering rapist is a totally batshit crazy insane individual. So far off the reservation there is not even a planet in sight. No standard of behaviour can be expected from such a person. Probably cannot really comprehend what he's doing.

      Hearing stories about the atrocities of war involving these same activities - and worse, even though that's often hard to imagine - you'd either have to conclude (possibly hundreds of) thousands of soldiers were batshit crazy insane. Otherwise maybe being perfectly sane but bereft of morals (or having their societal moral compass stripped from them by training, indoctrination, or group mentality) is the much more likely option.

  3. GREAT decision. by Anonymous Coward · · Score: 2, Insightful

    It's logical, it's practical, it has no downsides I can imagine. Why can't we have more common sense judgment like this?

  4. Exaggerate much? by sjbe · · Score: 4, Insightful

    according to the article, which adds that patent trolls are "the best evidence that pure evil exists."

    Really? That's a little hyperbolic don't you think? Yes patent trolls are a very bad thing but let's not exaggerate their impact or how much they matter. They certainly are not evil on the scale of slavery or war or genocide or any number of other horrific crimes. I'm tempted to make some snarky Trump joke since he is (not kidding) better evidence for pure evil than patent trolls but even that would be an unfair comparison given some of the real evils of the world.

    Patent trolls are extortionists and leeches on society and terrible human beings but the "best evidence that pure evil exists"? No. No they are not.

    1. Re:Exaggerate much? by Black+Parrot · · Score: 2

      We've lowered the bar for "pure evil".

      Maybe they consider that other stuff adulterated evil.

      --
      Sheesh, evil *and* a jerk. -- Jade
    2. Re:Exaggerate much? by dcavanaugh · · Score: 2

      Not an exaggeraion, IMHO. The impact of patent abuse is a lot worse than a few cases you hear about. It's the cases you DON'T hear about, where the mere threat of a bogus patent lawsuit is enough to suppress competition and prevent new products and services from reaching the market. This ruling in this case does not provide a universal solution to the problem, but it's a good start.

    3. Re:Exaggerate much? by ShanghaiBill · · Score: 4, Informative

      Not an exaggeraion, IMHO.

      Yes, it is an exaggeration. I once met a Rwandan woman who, as a child, hid in a crawlspace while her mother was raped and then hacked to death with a machete. Her mother was one of 800,000 Rwandans who died that way. Dealing with an annoying patent lawsuit is not worse than genocidal mass murder.

    4. Re:Exaggerate much? by Anonymous Coward · · Score: 3, Insightful

      Uh huh. If we're really going to get pedantic about this stupid shit, then "pure evil" doesn't represent the magnitude of evil but rather how much it is diluted by other factors. Thus it is certainly possibly for a small scale evil to be just as pure as a large one.

      Also: the parent poster was talking about the economic impact of patent trolls, and while the harm which that sort of thing causes may not be as obvious as genocide it can potentially be just as severe. Drug patents kill people every day. How many people? How does that weigh against people who benefit from drug patents? How much impact do trolls have on drugs patents? I don't know, but these things are important even if they're not as dramatic as your example.

    5. Re:Exaggerate much? by swb · · Score: 4, Insightful

      My wife works in a business licensing IP and I hear some of the opposite side of the story. The nature of their product is such that it can't be made and distributed in any centralized way, so the business model is mostly licensing the product to producers who then participate in selling and marketing it locally under a common brand name.

      Anyway, they occasionally get knocked off by producers. Sometimes its licensees who keep making it after their agreement expires, sometimes its producers who outright knock it off, making their own tooling.

      They *could* sue all of them for patent infringement, but it's just not practical. In some cases the patent is close to expiration, in some cases its mostly a negotiating ploy to renew the license under more favorable terms.

      Anyway, I would argue that it's not that simple to just "threaten to sue" -- you have to have a case you can win, it's expensive to bring even a winning lawsuit and it can have a chilling effect on other business partners who may see an eagerness to sue as a reason to not do business with you or to demand other concessions which could damage profitability.

      And a lot of times if you do threaten, you have to follow through. Businesses are often run by egomanics who don't want to be pushed around, even when they're in the wrong. They'll spot a false threat from a mile away and will view failure to follow through accordingly.

    6. Re:Exaggerate much? by thegarbz · · Score: 2

      Yes patent trolls are a very bad thing but let's not exaggerate their impact or how much they matter.

      You say that as someone who is watching patent trolls in the tech sector.
      You'd likely have a different opinion if you watched patent trolls in the medical sector.

    7. Re:Exaggerate much? by ShanghaiBill · · Score: 2

      "pure evil" doesn't represent the magnitude of evil but rather how much it is diluted by other factors.

      By that measure, the evilness of NPEs (patent trolls) is not very "pure". NPEs help small independent inventors by enforcing many legitimate patents for real innovation. On balance, I think NPEs are harmful and need to be reined in, but they (occasionally) do some good.

    8. Re:Exaggerate much? by Pikoro · · Score: 2

      The nature of their product is such that it can't be made and distributed in any centralized way...

      Then why is it patentable? I wish we could go back to the way it was before, where you had to submit a physical working example of your invention when submitting a patent application. A patent on a business model should not be allowed.

      --
      "Freedom in the USA is not the ability to do what you want. It is the ability to stop others from doing what THEY want"
  5. Non-Precedential by Anonymous Coward · · Score: 4, Informative

    For starters, this decision is non-precedential. It was issued by a District court, and not the Federal Circuit or SCOTUS.

    Secondly, per a Law360 article, the reason for the attorneys fees award against the law firm was, per a law360 article:

    The court awarded attorneys’ fees against AlphaCap and its counsel, Gutride Safier LLP, on the theory that AlphaCap and Gutride Safier multiplied the proceedings in this case unreasonably and vexatiously,” McCrary wrote. “The record, however, establishes that it was Gust and its counsel, not AlphaCap and Gutride Safier, who unreasonably and vexatiously multiplied the proceeding.”

    Thus, this ruling has nothing to do with patent trolling being dealt a death blow, but rather unscrupulous counsel being punished.

  6. Re:Messed up morality by MightyMartian · · Score: 5, Insightful

    How about trying to keep breast cancer tests as expensive as possible for personal profit?

    https://www.techdirt.com/artic...

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  7. Personally liable, not the bloody company! by Anonymous Coward · · Score: 5, Insightful

    Yeah, so now you create lots of shell law firms.

    Until the courts go after people PERSONALLY (you know, like they do every time you get a ticket) there will be no change of behaviour.

    Throwing a few lawyers in jail will do so much more for the profession than fining anyone.

    AC

  8. Here's a downside. by Ungrounded+Lightning · · Score: 5, Insightful

    it has no downsides I can imagine.

    If generalized beyond patent trolling suits it could severely limit the ability of shallow-pocket plaintiffs to obtain legal council on a contingency fee basis to obtain redress for the torts that damaged, and perhaps impoverished, them.

    The result would be that the legal system becomes accessible only to the rich.

    --
    Bantam Dominique roosters crow a four-note song. Once you've heard it as "Happy BIRTHday" you can't NOT hear it that way
    1. Re:Here's a downside. by Hognoxious · · Score: 2

      In England & Wales a plaintiff (and I think in some cases the respondent/defendant) can be required to make a payment into court in various situations, one of which is to act as a bond if costs are awarded against him.

      --
      Confucius say, "Find worm in apple - bad. Find half a worm - worse."
  9. This seems to be an exception by Zontar_Thing_From_Ve · · Score: 4, Informative

    I'm not a lawyer, but my best friend since college is. We're both Americans. I probably know more about how the US legal system really works as a result of this friendship than how almost all non-lawyers do. The truth is that judges don't like to award court costs nor do lawyers really like it when they do this because it discourages lawsuits and lawyers and judges both think that the system is fine just like it is and having fewer lawsuits is actually bad. Some judges won't ever award costs to the winner. Some will only do so to send a message to people they think really abuse the system. It seems to me that this is considered to be an unusual situation rather than something that will set a precedent. Also, judges often ignore anything they feel like, so the fact that court costs got awarded in case A doesn't at all mean that they will be in case B in front of a different judge even if the circumstances that led to the awarded are essentially identically.

    Here's an example. Suppose you have neighbor who doesn't like you and the neighbor sues you for something really stupid and asks for a huge monetary award. Suppose that you win, but the case is extraordinarily difficult and time consuming and you end up ruined financially from having to pay the costs to defend yourself against this frivolous lawsuit. You can probably count on one hand the number of judges and lawyers who actually feel sorry for you. From their perspective the system worked perfectly. You got sued for something bogus and you won. The fact that it destroyed you financially to defend yourself is not their concern. Not at all.

    1. Re:This seems to be an exception by PPH · · Score: 4, Insightful

      This.

      And since contingency fees are one tool that poor and middle class people use to obtain legal assistance, this decision will harm this group to a greater degree.

      To continue with your example: I am quite wealthy, but live in an upper middle class neighborhood (not Warren Buffet, but same idea). So if I decide to file a frivolous lawsuit against a neighbor, I just pay my attorney for her time. So she has no risk. And if I lose, so what? I could wipe out my neighborhood with lawsuits even if my track record in court was 50%. They, on the other hand aren't in line to receive a big settlement. They are defendants, whose best outcome will be a 50% chance of being reimbursed for their expenses. Smart lawyers will avoid such clients, leaving them at a disadvantage in court.

      --
      Have gnu, will travel.
    2. Re:This seems to be an exception by Kjella · · Score: 2

      Sounds like the courts like to drum up business, how American. Here in Norway the general rule is that the winners are awarded reasonable court costs if their claim is mostly or entirely won, rule of thumb is around 80% for economic damage. That is to say, if I claim $3000 in compensation for lost income and the court awards me $2500+ I'll get court costs covered on top. If I make a bullshit $10000 claim for emotional distress and is awarded $3000 then I have to pay my own costs. The reasoning is that you so massively exaggerated your claim your opponent had $7000 worth of valid reason to bring this case to court even if he'd still lose. I think that's a good system, it rewards reasonable demands and punishes defendants for bringing cases they should have settled to trial. For partial wins with many claims the court can choose to award partial costs to the same effect.

      There are a few exceptions to this, if there was a material dispute of facts resolved at trial, if the winning party has refused attempts to negotiate a settlement or if it is for welfare reasons or in case of great resource inequality. That means the principle generally doesn't apply in custody cases, whether they can pull the plug, putting mentally challenged people under legal guardianship and such. It also means individuals usually aren't forced to pay court costs against big companies like banks and insurance companies unless they're frivolous. In fact there's a few exceptions that can be used regardless of outcome, like incurring needless cost. If the first thing I do is sue someone and the first thing they do is admit fault and pay up I could end up paying the court fees, because I didn't even bother to try to resolve it some other way. Those are very narrow exceptions though.

      --
      Live today, because you never know what tomorrow brings
  10. Not even close by SlaveToTheGrind · · Score: 2

    Attorneys fees aren't awarded in garden-variety troll cases, and this decision does absolutely nothing to change that. Here, at a minimum, the plaintiff's attorneys:
        1. Filed suit on a patent that (even by troll standards) was almost certainly invalid after the Supreme Court's Alice decision (issued the year before the suit was filed).
        2. Filed suit in the Eastern District of Texas when there was not even the thinnest veneer of a basis to do so.
        3. After this defendant refused to settle for small potatoes like the others, plaintiff first offered a covenant not to sue (which also would have made the current case go away), then when defendant announced its intent to seek fees, litigated the case for another year and a half in two different states and ran up defendant's costs even more.

    This might give pause to attorneys taking on a handful of really egregious cases around the margins, but IMO isn't going to take very much of a bite out of the troll industry in general -- the game will just shift to the next-higher-quality tier of patents.

    Now, the TC Heartland venue case that the Supreme Court has decided to take? That's the one that could significantly impact the troll community -- keep an eye on it.

  11. Lawyer's ethics by davidwr · · Score: 2

    In a more perfect world, a lawyer's ethical obligations would preclude him from taking on a case that is "obviously frivolous."

    If a judge found that a case was "obviously frivolous" then the judge would be encouraged to fine the lawyer personally and would be required to refer the lawyer to the state bar, which would likely fine him an additional amount equal to what his client paid him for that case. Lawyers who got many such referrals relative to their peers (lawyers with similar caseloads and specializations) would see judges scrutinize their future cases much more closely, and those with huge numbers of referrals would see their license suspended or otherwise sanctioned.

    In a more perfect world.

    Not gonna happen. Sigh.

    --
    Knowledge is how to play a game, intelligence is how to win, wisdom is knowing what game to play.
  12. True, but only a few law firms troll, all abuse by raymorris · · Score: 3, Informative

    That's true the law firm was held liable for costs based in the actions of this law firm, the same reasoning doesn't apply to other patent suites generally. HOWEVER, 90% of patent trolling is done by just a handful of law firms, who all pretty much act the same way. So the reasoning does apply to the vast majority of patent troll suits.

  13. Re:Collateral damage by sjames · · Score: 2

    Keep in mind, this ruling included misconduct on the part of the law firm beyond simply accepting the case on contingency.

  14. The five or so troll firms act similarly by raymorris · · Score: 2

    Because about 90% of patent trolling is done by only a handful of law firms, who all sue on questionable patents in East Texas and generally follow a similar pattern of behavior, this certainly could have a significant effect. Heck, even knocking one of the top five troll firms out of the trolling business would be significant.

  15. Re:Messed up morality by MightyMartian · · Score: 3, Insightful

    I think every member of a society should balance personal motives such as profit, against the greater good. Making a life-saving test extraordinarily expensive, and then pursuing anyone who develops a lower cost variant, particularly when the "test" as it were is simply identifying pre-existing and non-made-made genes, thus potentially harming thousands of people who the test's costs mean they cannot be tested cannot be justified save as a purely selfish and, dare I say it, sociopathic act. We should be doing all we can to get sociopaths out of any kind of corporate governance, not allowing them to game the system to our detriment and to their gain.

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  16. Re:Messed up morality by Gr8Apes · · Score: 2

    how about having to pay for medical care at all?

    Because enslaving doctors and nurses seems like such a better solution.

    --
    The cesspool just got a check and balance.
  17. Inaccurate by hackwrench · · Score: 2

    There is only one country where the costs of medical care are generally accrued to the individual as opposed to spread out across society in general. But then there is health insurance, Medicare, and Medicaid which changes things, so I don't know what the best balance of conciseness and accuracy is. But your meme needs to die.

    1. Re:Inaccurate by gumbi+west · · Score: 3, Interesting

      It's a good idea for you to get pedantic because your comment is besides the point.

      If there is a sick baby, on what basis do you deny the child care? What about a person who has worked hard all their life, gets sick, and then loses their employer sponsored heath care? Before Obamacare, they were basically left for dead. This is not an argument I'd want to take your side on.

      Medicare is not free, you pay a premium and then you pay coinsurance. Go get scraped up in another country and see if they ask if you have paid the premium (have your card) or come after you for the coinsurance.

      The most frequent criticism of the French system is that everyone gets everything that they want. But they pay less for their care than we do--by half. That is, at least partly, because they don't have to pay for someone to sit at a desk denying claims the first four times to make sure you really want it covered, 20 companies negotiating with each hospital on the rate for every procedure a hospital can possibly perform, and generally throwing in a middle man that offers no actual medical care. In slashdot terms, if you ran a debugger on the medical system, you would cutout the insurance company.

      If you have been or had a family member who has been very sick there is a pretty good chance that you would realize that our system is far from perfect. And we pay twice what everyone else does for an imperfect system.

      Why not take half off and stop making people pay for things that are not their fault?

  18. Re:Messed up morality by MightyMartian · · Score: 5, Insightful

    The problem being that no one makes money in a vacuum. The "self-made man" is a fantasy. The only self-made men I can think of are mountain men who live in the woods hundreds of miles from civilization, and even the historical mountain men still came down from the hills to trade pelts for knives.

    Sorry mate, the society you live in allows you to make your money, gives you the protection necessary to keep it, gives you the infrastructure necessary for its creation and accumulation, so whether you like it or not, you have an inherent debt. Liberty is not absolute, but if you feel it is, then throw off your clothes, walk out of your house, head for the nearest vast forest and see how long you last as a "self-made man".

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  19. Re:Actual invention by silentcoder · · Score: 4, Insightful

    Aaah yes, steam engines, the number one argument against patents.

    Watt gets the credit for inventing the steam engine - but he did nothing of the kind. Steam engines have been around since the ancient greeks. Getting progressively better over the centuries. By the 15th century there were more than a few steam powered mills in Britain.
    What Watt did do was come up with a good mathematically concise way of measuring the amount of work a machine did, which allowed him to compare various designs for efficiency and come up with the best combination of known technologies at that time. Not a single one of the designs was his own - he merely figured out which designs for various parts were the best performing and then put them all together. Along with a wealthy financier -they then pushed steam power for trains.

    Great inventions are never the work of one man or company - they are always the culmination of thousands of years of gradual improvement by thousands of people, and the INEVITABLE result of the state of human knowledge at any given time. Which is why, for any invention you wish to think off, you will find several competing claims as to who made it (besides whoever got the common credit) and generally at least 2 of them will have genuinely and independently come up with the same design without any knowledge of one another's work at teh same time.

    Invention is a consequence of the collective history of all science, when the science reaches the point where an invention becomes possible it WILL happen - and it SEVERAL people will see the possibility.

    So why does ONE of those people get a piece of paper saying the others aren't allowed to be rewarded for it ? Why does the government interfere with the market by giving one of those people a monopoly ?

    The ostensible argument is - if you allow them to compete right away then (all) the inventors will keep the working of their products secret, which means the product could be lost when they go. This is certainly a concern - but patents are a very poor solution to that problem. Even if you do accept it, it has nothing to do with the absolutely ridiculous notion that ideas can be owned.

    --
    Unicode killed the ASCII-art *
  20. Re:Messed up morality by silentcoder · · Score: 4, Insightful

    >Everything you do at work, for example, is "for personal profit". Would fewer or more women die, if the profiteer you are denouncing did not exist — and, consequently, his test was not available at any cost?

    That scenario is impossible - and your claim is disproven by history. The correct counter-example is Jonas Salk. Created a vaccine that prevented one of the most debilitating diseases in human history (a disease which has killed at least one beloved US president by the way). Did not patent it. Did not even TRY to profit from it (was very happy with his middle-class professor's salary)... gave it to the world for free, and eradicated a disease entirely.

    And since myriad are not staffed by gods knowing forbidden knowledge - had they not existed other researchers WOULD without any doubt have discovered those genes too - and NOT tried to see how many women they could kill.

    You know what it's called when you tell somebody "give me a crapload of money or die ?" it's called robbery and extortion. It is definitely not called "doing honest business".

    --
    Unicode killed the ASCII-art *
  21. Re:definition of purity by silentcoder · · Score: 5, Interesting

    There is another factor - which is that wealth multiplies effect. I really spend my life trying to do good to other people, to uplift people, to help people, to empower people. You know what, all I've done pales into invisibility compared to what the Bill and Melinda Gates foundation has done - and I think Bill Gates is a terribly evil person, yet he has done more good in a year than I could achieve if I live to be a thousand.

    Why ? Because he has far more financial resources at his disposal, which enables him to do good that affects far more people than I ever could.

    But the same goes for evil. A crazy killer may poison a well, it takes a greedy corporation to poison an entire river and killed hundreds or thousands of innocent people downstream. A crazy, evil person may become a rapist killer. How many could victims can he conceivably affect ? Even the most successfull serial killers are in the low-twenties. Harold Shipman got (probably) around 300 but he was much richer than the average serial killer and his lucrative job also gave him very good cover to hide his crimes. But the vast majority don't even get to 5 - and that's serial killers (3 or more - the vast majority of potential serial killers are caught without ever becoming serial killers).
    So a few tens of victims... maybe.
    How many people have been killed by wall street corruption ? How many people took their own lives after a bank corruptly foreclosed on a house in a fraudulent matter ? There were millions of cases like that just in 2009, so it's inconceivable that the death toll is not at least in the thousands.
    When Katrina hit New Orleans - how much worse was the outcomes made for poor people, when the insurance companies found a million reasons not to pay their claims ? Sure the insurance companies feared they'd be bankrupted... but that was their PURPOSE - that's what htose people paid them for ! The sole reason we tolerate their existence is so that, when a hurrican destroys people's homes THEY go bankrupt instead of those people. How many more died in that floodwater thanks to greed? There is overwhelming evidence that wealthy people got prioritized rescue and other advantages which ultimately made the death toll far higher than it otherwise would have been.

    When the average person commits evil - it affects only a small number of people. When the extremely wealthy commit evil - thousands suffer. Their very wealth magnifies the effect of their actions.

    --
    Unicode killed the ASCII-art *