The Patent Troll Lawyer Business Model

It’s no secret that patent infringement is one of the hottest areas in which to practice law these days.  The inventor-friendly principles that governed the original United States Patent Office back when Thomas Jefferson ran it (though he personally wasn't too much a fan of patents) are still the law today, even though the scope of prior art in most industries has expanded far beyond the point where any patent examiner could reasonably review it, much less ensure an inventor in an ex parte proceeding fairly describes it. These days, if an inventor has enough determination, or enough funds to ... Continue Reading

The America Invents Act’s Patent Reform Might Strengthen Patent Trolls

[Update: the America Invents Act passed. Interesting passage from one of the reports: "Companies like Google, Dell, IBM, Apple, Cisco, and others also applauded the bill's passage.  Innovation Alliance, which represents smaller tech companies, was more muted in its response. The bill was criticized by some in Congress for favoring larger businesses." Indeed. The primary change to "first to file" and the secondary change allowing more administrative appeals benefits large companies with large budgets for patent filings. It doesn't do anything at all to help small businesses; it puts them at a competitive disadvantage. Update II: Freakonomics has a post ... Continue Reading

More Selective Statutory Interpretation By The United States Supreme Court

One of the nice things about the being a Justice of the United States Supreme Court is that you never have to explain yourself. You don't have to ask questions at oral argument. You don't have to read the briefs filed by the parties, not really, because you can interpret the facts stated and arguments raised however you want. You certainly don't have to be consistent across your own opinions. In one case, you can make an argument inconsistent with the argument you made in another case. Few people will notice and, worse, fewer will care, because caring about the ... Continue Reading

Google’s New Contact Page For Enforcing Trademark & Copyright Infringement Court Orders

It’s not easy being Google. (I'm talking about the company itself; it's easy to be famous, powerful, and wealthy, so I don’t feel sorry for the management and shareholders of Google.) When you are that big, and asked to do that much, it's inevitable that everyone will have some sort of complaint about you. Thus far, Google has done an excellent job at avoiding any sort of legal liability for being the primary gatekeeper and mapmaker for the Internet. You can't hold them liable for trademark infringement when a competitor uses your brand name as an AdWords trigger (though you ... Continue Reading

The Best Way To Prove “Predominance” In Generic Pharmaceutical Antitrust Class Actions Alleging Patent Misuse

There's been a wave of antitrust class actions predicated on patent misuse by pharmaceutical companies of the past decade. The troublesome Illinois Brick decision prevents "indirect purchasers" — which means you, me, and our health insurance plans — from bringing federal antitrust claims, so plaintiffs' lawyers have had to get creative in use of state law to obtain relief for companies that have been overcharged for their medication, like the Sheet Metal Workers tried to do with the Pennsylvania Unfair Trade Practices and Consumer Protection Law (PUTPCPL). Given decades of efforts by anti-competition legislatures and judges to undermine consumer fraud ... Continue Reading

“They Stole My Idea” Doesn’t Always Amount To An Intellectual Property Lawsuit

The Limited Scope Of Inventors' and Creators' Rights Under Copyright, Trademark, and Patent Infringement Law The business lawsuits actually filed, and defamation lawsuit not filed, surrounding Mark Zuckerberg and Facebook have inspired some of my more popular posts. But there is one litigious part of the Facebook story that I did not cover, and that was the lawsuit brought by the Winklevoss twins against Zuckerberg alleging that he stole the idea for Facebook from them. Here's why I avoided that part: without knowing the intricacies of the case (a case they're trying to reopen), there's not a lot for me ... Continue Reading

Investing In Lawsuits, Part III: Here Come The Banks and Hedge Funds

On Sunday, the New York Times returned to third-party funding of lawsuits with "Investors Put Money on Lawsuits to Get Payouts:" Large banks, hedge funds and private investors hungry for new and lucrative opportunities are bankrolling other people’s lawsuits, pumping hundreds of millions of dollars into medical malpractice claims, divorce battles and class actions against corporations — all in the hope of sharing in the potential winnings. ... Total investments in lawsuits at any given time now exceed $1 billion, several industry participants estimated. Although no figures are available on the number of lawsuits supported by lenders, public records from ... Continue Reading

Oracle v. Google: Litigation As Negotiation By Other Means, Or As Total War?

As widely reported by every tech site on the internet, last week Oracle (which recently acquired Sun Microsystems) sued Google for infringing upon a variety of software patents Sun obtained while developing the Java software platform. For the facts, I can't improve upon the fine commentary at Groklaw, CNet, and tech-specific sites like RedMonk. James Gosling, inventor of Java programming language, has even commented on it. Two conclusions are inescapable: Sun could have, but chose not to, sue over the same patents, likely (at least in part) to preserve goodwill with the developers who used the Java framework; There's a ... Continue Reading

Proving Inequitable Conduct In A Patent Infringement Case By Way Of Selective Production

In a patent infringement suit, the defendant's first line of defense is almost always a counterclaim that the plaintiff's patent is either invalid or unenforceable. There's little to lose in raising the counterclaim and potentially a lot to gain, including the possibility of a judgment rendering the patent invalid forever. Patently-O refers us to Golden Hour Data Systems, Inc. v. emsCharts, Inc. and Softtech (Fed. Cir. August 9, 2010), which partly affirmed and partly vacated a District Court's Judgment as a Matter of Law overturning a $3,500,000 jury verdict in favor of Golden Hour, owner of United States Patent No. ... Continue Reading

Bilski v. Kappos: SCOTUS Doesn’t Recognize Business Methods Patents But Doesn’t Prohibit Them Either

The Supreme Court released its opinion in Bilski v. Kappos this morning, which tested the sufficiency of a "business method" patent relating to the hedging of risk in investments. Four Justices wanted to scrap "business methods" patents altogether. Five wanted to scrap just the patent at issue here. Given the complexity of the issues involved, I'm pleasantly surprised to report that the actual holding of the case can be summarized with just a few quotes: Section 101 defines the subject matter that may be patented under the Patent Act: “Whoever invents or discovers any new and useful process, machine, manufacture, or ... Continue Reading