First Government Lawsuit Against a Patent Troll 96
walterbyrd writes "Late last year, a vigorous and secretive patent troll began sending out thousands of letters to small businesses all around the country, insisting that they owed between $900 and $1,200 per worker just for using scanners. The brazen patent-trolling scheme, carried out by a company called MPHJ technologies and dozens of shell companies with six-letter names, has caught the attention of politicians. MPHJ and its principals may have gone too far. They're now the subject of a government lawsuit targeting patent trolling—the first ever such case. Vermont Attorney General William Sorrell has filed suit in his home state, saying that MPHJ is violating Vermont consumer-protection laws."
They took it seriously? (Score:5, Interesting)
The MPHJ letters also include misstatements. First, they imply litigation was imminent, stating recipients could be sued if they don't pay within two weeks, and they include draft complaints. Still, MPHJ hasn't filed a single lawsuit, in Vermont or anywhere else, more than 130 days since Vermont businesses starting getting the letters.
Also, the shell companies each state they have an "exclusive license" letting them enforce the patents against businesses within a specific geographic area. But the Vermont complaint states that "each Shell LLC was actually assigned a combination of geographic and commercial fields that was identical to at least one other Shell LLC," and thus the shells "do not possess exclusive licenses." The letters also state that "many" or "most" businesses show an interest in purchasing licenses, which isn't true, the complaint notes.
If I got a letter with that kind of language from an entity that has a name that looks like it was spewed out by a random letter generator, I'd chuck it into the trash thinking it was a scam. Because there are TONS of scams where "companies" bill for office supplies and other services that were never received with the hopes that the recipient would just pay it.
Re:Bravo Vermont (Score:5, Interesting)
Here's a question for you...
I have a patent (well, several, actually). I used this patent to make product at my own factory, and sold the product for 6 years. Then I wanted to get out of the manufacturing business, and back to my true love - engineering. I now license that patent to many other companies, and have taken action against infringement of my patent.
Given that I no longer actively market or produce a product with my patent, am I a patent troll? I did produce at one time, and other companies produce with my patent - but I, the sole patent holder, simply market and sell licenses to my patent. Am I a patent troll?
Re:Bravo Vermont (Score:3, Interesting)
"Given that I no longer actively market or produce a product with my patent, am I a patent troll?"
No, because you were a truly practicing entity.
You made the product AND the patent.
You didn't just buy a patent so you could sue.