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Patent Trolls Aim Pistol at Big Business in East Texas

January 24th, 2011

Patent TrollingWith the failure of Proposition 19 in California came the loss hope among many citizens of the Golden State to be legally practicing one of their “recreational” hobbies. Many still wonder, what is the big deal about legalizing the use of the substance as some of our colleagues in Europe have?

The common thought is, if we legalize marijuana like tobacco and alcohol, then there will not be as many problems, right? Right? Well, let me say this in my best Texan. Just ‘cause you change the look of something, don’t mean it’s right. In so many different areas, there is a search to make something look better by changing the wording of it.

As “political correctness” takes over we can suffer a compromise that will hurt us on the long run. Take, for example, the little controversy of patent trolls in the business arena.

Patent trolls consist of companies who have obtained patent licenses with the sole intent to use them as a pistol aimed at bigger businesses that might have infringed on the patent in order to bring a lawsuit against them for compensation.

Now, one red flag of a patent troll is that the business has not manufactured the patented item and will never do so. Some uproar has come as a result of this practice and many are taking sides.

In an attempt to downplay this unethical practice is to refer to them, not as patent trolls, but rather, “non-practicing entities”. As in, “We choose not to implement the objects of our patents.” That’s like saying, “I’m a non-practicing dieter”.

Whatever the case may be, if it quacks like a duck, walks like a duck, and has feathers like a duck then it’s a duck.

Jury Standard Exploited in East Texas for profit motive by patent litigants

January 14th, 2011

East TX JuryWho would have ever thought that doing your civic duty would have such grave consequences? What started out as the citizens of East Texas simply fulfilling an oath to judge justly without prejudice has escalated into a gold rush of litigation battles and unethical business behavior.

Unaware for many years, the townsfolk of Marshall, Texarkana, and Tyler have become known to the legal world as having a higher percentage of deciding for plaintiffs of patent infringement cases than most other court circuits across the nation.

This has been attributed to things such as an older age group in the jury and a stronger stand on property rights, that is “what is yours is yours”. Unfortunately, some people have seen this standard as a way to turn a profit.

Namely, these people are what they call “patent trolls”. Patent trolls are companies who purchase patents from struggling businesses or firms without any plans on manufacturing the invention or technology.

Their sole use of the patent is to target any businesses that have technology or a service that might infringe on the patent in order to file a lawsuit against them for infringement.

Of course, these “patent trolls” need a feeding ground to survive and they have found that in East Texas. And it seems they are “feeding” well. Since 2003 the number of patent litigation cases in these court houses has more than quadrupled.

They only other location outside of East Texas that has hosted close to that amount of cases is Los Angeles. It’s sad to see how an unselfish act like serving in a jury has resulted in the selfish pursuit of unearned wealth.

So, next time you receive a jury summons, let’s hope your act of civil service does more to serve than not.

2011 Award for most dishonest form of business goes to

January 9th, 2011

Dishonest patent litigation awardIn light of hearing the recent news that the website, WikiLeaks, has gathered confidential communications between the State Department and its many liaisons and plans on publishing it worldwide I have thought of a new yearly award we can hand out.

Well, between WikiLeaks and the unholy business of “patent trolls” buying off patents in order to use them solely as grounds for suing prospering business for patent infringement, I have gotten an idea! Let’s create an award identifying this years “Most dishonest form of business”.

Now I am sure we can sit here and think about many other candidates, but let’s get focused on pitching these two. First is WikiLeaks. Here is a business in which it’s sole purpose is to steal, bribe, cheat, and perhaps threaten life, to gather confidential, top secret type of information from national governments with the dastardly motivation to publish the info on the internet for all to see.

Doing this, of course, with the possibility of endangering military lives, or creating astronomical damage between nations, just for a profit. Then there are these “patent trolls” who represent the exact opposite of productive American business.

They, first, seek out struggling businesses, firms, or individuals who have no other choice but to sell their patent for whatever invention or product idea they have. Then, without any intention of ever manufacturing the patent idea, these “trolls” seek out successful businesses who have utilized some concept of their patented idea in order to sue them for patent infringements.

They are quite literally making money out of nothing. Looks like we have a couple of quality candidates for the award, right? Well then, drum roll please! And the winner is…

Misunderstood patent holders with rights fighting in East Texas

January 3rd, 2011

Misunderstood patent trollsIt’s one of your classic movie plots. Good guys fight bad guys, only to find out that bad guys are misunderstood, thus a compromise is made, fighting stops and now, no more enemies. So it would seem to be taking place in the federal court rooms of East Texas and other parts of the United States.

Could it be that the so called “patent trolls” that have been portrayed as abusers of our legal system for profit are, in reality, simply misunderstood patent holders with rights?

The rising unethical practice of purchasing unmanufactured patent rights in order to sue companies with manufactured products that have the possibility of infringing on the patent has made its enemies throughout the last number of years.

And as the practice is understood, it is justifiably so. But are these “trolls” really doing anything different than your average patent holder? The very creation of the concept of patent holding is to ensure the protection of intellectual property or ideas of invention.

When a patent holders “property” is being produced without their permission, they have the right to be compensated for the infringed use of their idea. This means that the accused patent trolls are practicing the same rights as any patent holder when they pursue anybody who has produced a product or service that infringes upon their patent.

So, technically they are under the same labeling as your average patent holder. Where they vary from the rest is in the area of morally or ethics of why they do it. The pure concept of the labeling a company a ”patent troll” is based on the aggressive pursuit and use of patents solely for litigation without any motivation to manufacture the product, which stunts innovation.

So, our beloved patent trolls not misunderstood, they are bad through and through.

Home of the best ever patent litigation judge this side of Pecos

January 3rd, 2011

John Ward Marshall TexasYou’ve seen the signs. It usually takes place as your entering into a county, small town, and even a few medium sized cities. Just as you drive up, you look to see what the highway sign says and there you see it, “Home of…” and thereafter follows the name of the local man or woman who has made some type of impact to bring recognition to their hometown.

I remember one of the most recent examples I’ve seen while passing through New Mexico. There it was, “Home of Brian Urlacher.” Of course, like any red blooded American I recognized the name of the Chicago Bears bone crushing linebacker.

When thinking about the type of recognition a couple of local boys are getting in the towns of Marshall, Texarkana, and Tyler I’m starting to wonder if their names deserve being put on a highway sign. I can see it now, “Home of T. John Ward Jr.” What, you don’t recognize the name?

Let me elaborate. For those who have not heard, there is a trend taking place in the court rooms of these 3 East Texas towns that has waves of lawyers and legal representatives from all parts of the United States flooding in, and they are getting beat out by the local guy.

This trend is the ever growing patent infringement litigation cases. Due to favorable decisions for plaintiffs of patent infringement cases, anyone looking to win their case makes sure it happens in East Texas.

And this includes patent trolls, those appropriately labeled businesses that only look to buy patents from other businesses in order to use them for these types of infringement cases. And when it comes to winning these cases, the local names are getting game. One key ingredient to winning cases in these counties is to have a local lawyer who knows the jury and what they want to hear.

With big names companies entering in these cases you would expect to hear big name lawyers, but rather, the names you hear are from the graduating class of ’72 of the local high school, and that’s something to hang your hat on.