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Patent Troll Values Its Entire Portfolio At $2, Goes Bankrupt (arstechnica.com)
mspohr shares a report from Ars Technica: In September 2018, Shipping & Transit LLC (formerly known as ArrivalStar) filed for Chapter 7 bankruptcy -- voluntary liquidation -- but no one seems to have noticed until the Electronic Frontier Foundation pointed it out on October 31. The company claimed that it held the patent on vehicle tracking and related alerts. But about 15 months ago, judges began to rule against Shipping & Transit for the first time. That seems to have put a damper on its entire business model.
Now, according to Shipping & Transit LLC's federal bankruptcy filings, its global patent holdings (34 in the United States and 29 elsewhere) are worth a whopping $2. Meanwhile, it owes more than $423,000 to numerous creditors, including banks, law firms, and something called the "West African Investment Trust," based in Geneva, Switzerland.
Now, according to Shipping & Transit LLC's federal bankruptcy filings, its global patent holdings (34 in the United States and 29 elsewhere) are worth a whopping $2. Meanwhile, it owes more than $423,000 to numerous creditors, including banks, law firms, and something called the "West African Investment Trust," based in Geneva, Switzerland.
One patent troll gone. Good riddance. How many more to go?
The problem with patent trolls is that you cannot win against them. If you lose, you pay a fortune. If you win, they have no assets, go poof and tomorrow you have the next patent troll come into existence, with the same shysters, the same office and a new "creative" name.
And as long as this is legal, it will continue.
We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
Why would they do that though?
I suspect valuing the patents at $2 is prelude to the CEO starting a new LLC to buy them and keep doing the same thing without all those old debts hanging over their head. Standard corporate shell game - our company imploded, so we're going to buy all the assets at fire-sale prices and start a new company doing the exact same thing but with a different sign over the door. Have fun trying to squeeze that money we owed you out of our old corporate charter!
--- Most topics have many sides worth arguing, allow me to take one opposite you.
Someone should check previous claims they made to investors and the courts prior regarding the value of their portfolio and charge them with fraud if they don't line up.
That doesn't prove that he was part of the problem, just that he hears a lot of patent cases. What do his plaintiff vs. defendant rulings look like? Are the overturn rates different than for other judges.
People love to claim how East Texas is friendly towards patent plaintiffs, except that district doesn't actually have the highest rate of finding for patent plaintiffs.