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Kaspersky Lab Forces 'Patent Troll' To Pay Cash To End Case (arstechnica.com)

In October, Kaspersky Labs was sued by a "do-nothing patent holder in East Texas who demanded a cash settlement before it would go away," reports Ars Technica. Today, founder and CEO Eugene Kaspersky said his company has defeated five patent assertion entities, including the infamous claims from Lodsys, "a much-maligned patent holder that sent demand letters to small app developers." The patent-licensing company who sued Kaspersky Labs in October was not only defeated, but they ended up paying Kaspersky $5,000 to end the litigation. From the report: The patent-licensing company, Wetro Lan LLC, owned U.S. Patent No. 6,795,918, which essentially claimed an Internet firewall. The patent was filed in 2000 despite the fact that computer network firewalls date to the 1980s. The '918 patent was used in what the Electronic Frontier Foundation called an "outrageous trolling campaign," in which dozens of companies were sued out of Wetro Lan's "headquarters," a Plano office suite that it shared with several other firms that engage in what is pejoratively called "patent-trolling." Wetro Lan's complaints argued that a vast array of Internet routers and switches infringed its patent. Most companies sued by Wetro Lan apparently reached settlements within a short time, a likely indicator of low-value settlement demands. Not a single one of the cases even reached the claim construction phase. But Kaspersky wouldn't pay up. As claim construction approached, Kaspersky's lead lawyer Casey Kniser served discovery requests for Wetro Lan's other license agreements. He suspected the amounts were low. Wetro Lan's settlement demands kept dropping, down from its initial "amicable" demand of $60,000. Eventually, the demands reached $10,000 -- an amount that's extremely low in the world of patent litigation. Kniser tried to explain that it didn't matter how far the company dropped the demand. "Kaspersky won't pay these people even if it's a nickel," he said. Then Kniser took a new tack. "We said, actually, $10,000 is fine," said Kniser. "Why don't you pay us $10,000?" After some back-and-forth, Wetro Lan's lawyer agreed to pay Kaspersky $5,000 to end the litigation. Papers were filed Monday, and both sides have dropped their claims.

3 of 108 comments (clear)

  1. It's time to start reviewing software parents by Anonymous Coward · · Score: 5, Insightful

    Every software patent. If you can't make a good case as to why you should have the patent, it's gone. I think we'd lose 99% of the patents, because 99% of them are bogus.

  2. Re:ROTFL - no NDA? by lucm · · Score: 5, Insightful

    We need evil Russians, that's the only way we can keep the content of leaked DNC emails buried under a thick layer of mass hysteria. They're also very convenient as a distraction for people who still have their panties in a bunch because they lost their elections to a reality TV star.

    --
    lucm, indeed.
  3. Re:ROTFL - no NDA? by thegarbz · · Score: 5, Insightful

    How dare they try and undermine such an upstanding and fine American institution as patent trolling!

    They didn't. They made the patent troll part with $5000. A responsible company would have gone to court and get all the patents invalidated to prevent the troll feeding on other victims.