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Patent Litigation, forum shopping and the death of a town

January 1st, 2011
marshall texas forum shoppingChoosing the lesser of two evils always sounds good at the time. But when it comes time to be the one to choose, it’s a lot better said than done.And when it comes to the debate over patent reform, whatever decision might be made, somebody is going to suffer. So the question is, which is worse: the loss of job opportunities worldwide or the possible death of a town.

The two sides of patent form goes like this. If the different aspects of reform go through, the town of Marshall will lose pretty much all footing it has gained for being recognized as the ideal location for plaintiffs of patent infringement lawsuits.

The types of changes that would affect them include forum shopping, lower damage rewards, and tighter infringement standards. Considering that Marshall has become the patent litigation “Mecca” because of its favorable findings for and large pay outs, these law changes would leave them dead in the water.

The worst of the changes would be eliminating forum shopping. The large number of patent infringement cases that has come to Marshall is due to the plaintiffs in the case being able to choose its location, and any dummy knows that it is better to hold your case in a location with the highest percentage of plaintiffs wins in the nation.

If these laws pass, the economic revolution that Marshall has experienced will come to an end. The side of patent reform is how litigation has stunted innovation and thus, job creation.

Because of the amount of money and time being spent in court houses for patent infringement companies and firms are handcuffed to pursue other possibilities, thus, handcuffed to hire more people. So, you tell me, which is the lesser of two evils?

Kryptonite to defendants of patent infringement cases

December 29th, 2010

kryptonite for patent litigationI can see now: “Come to Marshall where you are sure to lose lots of money!” Of course it could read in reverse: “Come to Marshall where you are sure to win lots of money!” Then again, they could post both with one stating it’s for defendants and the other stating it’s for plaintiffs.

Silly as all that sounds, the truth is, Marshall Texas, has become the “kryptonite” to defendants of patent infringement cases. The percentage of plaintiffs who have won these types of cases in the court circuit of Marshall and other East Texas towns has set such a standard that big company defendants don’t even take the time to set foot in town.

The cost and process of having the case in Marshall becomes so much, as the companies are located in places like the Northeast and West Coast, which more often than not the companies settle out of court. They simply look to cut the cost and get it over with.

Unfortunately, it’s this manner of dealing with the cases that encourages “patent troll” types to invest heavily to get hold of patents simply to establish a legitimate case to accuse these companies of patent infringement, knowing that they will want to settle.

For a town known for its home-cooking-welcome-to-grandmas-home feel to it, it is quite surprising that the mere mentioning of its name brings fear to companies like, Cisco, Microsoft, and Time Warner. But the truth is, Marshall Texas has become a grave yard for defendants of patent litigation.

East Texas revolving door of patent litigation

December 27th, 2010

Patent Attorneys and East TXIf things continue the way they are, we will see if Marshall has Texas sized hospitality. If you didn’t know it, the eastern court district of Texas has become a revolving door of patent litigation cases. In the world of patent infringement lawsuits, Marshall, Texarkana, and Tyler have become a “fans” favorite for patent trolls and others embarking to defend their intellectual property.

And with that bit of fame, the citizens of East Texas have been cashing in on the business that comes as a result. But the sweet taste of fame can have a bad after taste. There have been some talks of reform coming to patent litigation and one of those elements of reform is the stricter standard of where a patent infringement case can be filed.

If this reform comes to past, there are two scenarios that could happen. Number one: that everybody packs up and heads out to their separate parts of the world thus leaving these towns of East Texas ghost towns.

Number two: these companies, especially those that fall under the “patent troll” label, can make permanent “fronts” in the eastern part of Texas in order to establish legitimate reason to file suit there. The first possibility would bring drastic change to the local economy of these towns based on loss of the regular business of lawyers and legal representatives.

The second possibility could actually bring more business, yet would make this beloved East Texas homesteads a place of falsehood and deception. And for those who know what the people of East Texas well, that doesn’t hold over so well.

Rocket Docket Court for patent litigation in Marshall Texas

December 21st, 2010

marshall texas attorneysIt’s like they say, “one bad apple can ruin the whole barrel”. This past decade has seen an increasing rise in the number of patent litigation cases taken place, which in turn has produced such things as “rocket docket” court districts like in Marshall, Texas, a call for patent reform, and the unethical business of “patent trolls”.

Patent trolls are the bad apple of patent litigation and, you would think, the potential source of ruining the current patent system. It is kind of like what is taking place with air travel and airport security this holiday season. Recently we have heard or seen protests like, “don’t touch my junk” and of scantily clad individuals entering airport security.

This has been brought on to question TSA’s methods for identifying potential terrorist threats. And due to the undesired methods of full body scans and detailed “pat downs” many are questioning whether or not to travel by air for the holidays.

And all of this is because of what a few, bad men have done through their acts of terrorism. So, the questions is, has the actions of patent trolls hurt legitimate patent litigation cases? The main damage that could be done by the “patent troll” type of cases is the possibility of the jury being swayed by the motivation of the patent troll for the lawsuit.

But, considering that their responsibility is simply to gauge whether or not the patent has been infringed, this ultimately should not affect patent infringement cases. And if the number of cases is any indication, then we can say that it has not hindered. With only a few “slow” times the past 2-3 years, patent lawsuits have continuously been on the rise. So have patent trolls hurt legitimate cases? The answer: No. I guess these apples are so bad after all?

Reform to Patent Litigation in Marshall Texas

December 21st, 2010

marshall texas patent trollsLike a modern day Alamo, the people of the Republic of Texas in Marshall need to board up the windows and doors and get ready for the fight of their life. Except it’s not the Mexican Army that’s coming, it’s the Coalition for Patent Fairness. And let me tell you, they have some heavy hitters. In response to heavy hits that they have been taking, some large businesses have formed or joined this coalition in order to bring reform to how patents and patent litigation is done.

The list includes popular companies like Apple, Cisco, Dell, Google, Intel, Microsoft, and Palm. We could confidently say that it’s not so much what is taking place in the courts of East Texas with their high rate of rewarded patent infringement lawsuits that has become the enemy of these companies than the whole system of patent litigation itself. The groups formed in this coalition have clearly stated on their website the ammunition they plan on using for the fight, this includes no more forums shopping, putting a cap on damages, and the standard of whether or not infringement has taken place.

These weapons of choice will make a big impact in infringement cases and thus, a direct attack against the gold mine that has come to East Texas. Although there is not a lot being said in the media, this coalition is quietly gathering an powerful army that includes the likes of the institutions of Federal Trade Commission and National Academy of Sciences, media giants like New York Times and Los Angeles Times, as well as President Barak Obama stating that it is part of his economy stimulus agenda.

There is no denying that patent infringement litigation has become a great benefit to the small town of Marshall, but with the pieces that seem to be coming together, it looks like they are in store for the fight of their lives.