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Patent Troll Values Its Entire Portfolio At $2, Goes Bankrupt (arstechnica.com)

Posted by BeauHD on from the don't-let-the-door-hit-you-on-the-way-out dept.

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.

3 of 117 comments (clear)

  1. in order by guygo · · Score: 5, Funny

    I believe and "Womp Womp" is in order?

  2. Re:make em public by Immerman · · Score: 5, Insightful

    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.
  3. Also Judge Gilstrap heard 39% of troll cases by raymorris · · Score: 5, Informative

    On a similar note, 39% of of cases by high volume plaintiffs were heard by Judge Gilstrap in the Eastern District of Texas. He had 24% of all patent cases in the country. In other words, Judge Gilstrap was 39% of the problem.

    Last year, the Supreme Court held in TC Heartland that patent plaintiffs can't venue shop like they used to. Now,
      Gilstrap is down to only 9% of all patent filings and 15% of HVP filings.

    That's a big improvement. Getting of Gilstrap would be a major win. He's one guy.