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My Encounter With a Patent Troll

ecommercefuel.com

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Re: My Encounter With a Patent Troll

#11

Post by alainbryden »

naner wrote: post #9

So when is someone going to start a company offering small startups patent troll insurance? Obviously, Congress isn't going to fix anything. Other solutions need to be explored.

I'm guessing no insurance company wants to get the middle of monitoring everything a software company does to make sure it isn't deliberately trying to get away with infringing on a bunch of patents to cut corners because they know their butt is covered by their insurance. Essentially, it would be too easy for dishonest people to take advantage of it, and too difficult for insurance companies to gather relevant metrics and set a reasonable price.

Re: My Encounter With a Patent Troll

#12

Post by spiredigital »

naner wrote: post #9

So when is someone going to start a company offering small startups patent troll insurance? Obviously, Congress isn't going to fix anything. Other solutions need to be explored.

That's a really great idea. I'd purchase troll insurance!

Unfortunately, I think you're right about Congress. It will likely require the issue spinning wildly out of the control - and a subsequent outcry - to get anything done. If we start talking about the issue now, hopefully that process won't take nearly as long....

Re: My Encounter With a Patent Troll

#13

Post by johnsto19 »

chaostheory wrote: post #5

"That’s why it’s crucial to be legally protected with some kind of corporate structure. For most small businesses, this means creating a limited liability company." Not all incorporations are made equal. For LLCs, I feel it depends on the state of incorporation as well as the number of members. I could be wrong, but an LLC that is either incorporated in states like CA or only has one member, can have its corporate ve…

What is the recommended entity type for a small e-commerce business like the OP's business?

Re: My Encounter With a Patent Troll

#14

Post by chaostheory »

spiredigital wrote: post #6
chaostheory wrote: post #5

"That’s why it’s crucial to be legally protected with some kind of corporate structure. For most small businesses, this means creating a limited liability company." Not all incorporations are made equal. For LLCs, I feel it depends on the state of incorporation as well as the number of members. I could be wrong, but an LLC that is either incorporated in states like CA or only has one member, can have its corporate ve…

I'm not an expert on laws governing LLCs in different states, and I'm sure that there are loopholes / exceptions for certain circumstances. But being setup as an LLC vs. a sole proprietorship offers you significantly more protection. If you're targeted in a lawsuit operating as a sole proprietor, I believe all your personal assets are at risk. Operating under a LLC makes it significantly harder to come after your per…

"But being setup as an LLC vs. a sole proprietorship offers you significantly more protection."

IANAL: I feel this depends on whether or not the LLC has two or more members. When an LLC has one member who is active, it's not much better than a sole proprietorship. Having great legal protection is a myth about single member LLCs that needs to be broken. It's relatively easy to pierce an LLC's corporate veil. Then again someone may prove me wrong. You need to talk to a lawyer.

Re: My Encounter With a Patent Troll

#15

Post by chaostheory »

johnsto19 wrote: post #13
chaostheory wrote: post #5

"That’s why it’s crucial to be legally protected with some kind of corporate structure. For most small businesses, this means creating a limited liability company." Not all incorporations are made equal. For LLCs, I feel it depends on the state of incorporation as well as the number of members. I could be wrong, but an LLC that is either incorporated in states like CA or only has one member, can have its corporate ve…

What is the recommended entity type for a small e-commerce business like the OP's business?

IANAL so this really depends on the person's specific situation i.e. like what state is the business in, how many members there are, and so on

imo if you want more protection, you need a C-Corp or a more than one member LLC... there are caveats to both routes and everyone should talk to a real lawyer about this or books from say NOLO

Re: My Encounter With a Patent Troll

#16

Post by redsymbol »

naner wrote: post #9

So when is someone going to start a company offering small startups patent troll insurance? Obviously, Congress isn't going to fix anything. Other solutions need to be explored.

In researching one for my own startup, one I came across is http://www.patentinsurance.com/ .

I don't know much about them except what's on their website, so do not endorse them, except to say that I would like to enroll my company in either their service, or a similar one soon.

The offering I am most interested in is what they call "IP Defense Insurance". Basically, in the event a troll attacks, this provides a war chest for my court defense costs.

(And hopefully, gives me a chance to maul those punks in court so hard, they regret ever looking our way.)

Re: My Encounter With a Patent Troll

#17

Post by spiredigital »

chaostheory wrote: post #15
johnsto19 wrote: post #13

Earlier quoted context omitted.

What is the recommended entity type for a small e-commerce business like the OP's business?

IANAL so this really depends on the person's specific situation i.e. like what state is the business in, how many members there are, and so on imo if you want more protection, you need a C-Corp or a more than one member LLC... there are caveats to both routes and everyone should talk to a real lawyer about this or books from say NOLO

Can any lawyers, or those who have incorporated their own business as a C-Corp, provide a rough estimation of upfront and annual costs?

Re: My Encounter With a Patent Troll

#18

Post by sparknlaunch12 »

Eeek, good article. This is something government needs to step in and help with. However curious of the patent troll letters to ignore and not ignore?

For example, if you don't pay your mortgage and ignore letters from the bank, you eventually lose your home. So you would legally need to respond to some solicitation, no matter how trivial.

Re: My Encounter With a Patent Troll

#19

Post by spiredigital »

sparknlaunch12 wrote: post #18

Eeek, good article. This is something government needs to step in and help with. However curious of the patent troll letters to ignore and not ignore? For example, if you don't pay your mortgage and ignore letters from the bank, you eventually lose your home. So you would legally need to respond to some solicitation, no matter how trivial.

It depends on the action. If we had been immediately sued then, yes, we would have had to respond. But often patent trolls will contact you first threatening to sue in an attempt to get a settlement. This isn't a legal motion filed in the courts, so you aren't required by law to respond.

Re: My Encounter With a Patent Troll

#20

Post by haliax »

spiredigital wrote: post #17
chaostheory wrote: post #15

Earlier quoted context omitted.

IANAL so this really depends on the person's specific situation i.e. like what state is the business in, how many members there are, and so on imo if you want more protection, you need a C-Corp or a more than one member LLC... there are caveats to both routes and everyone should talk to a real lawyer about this or books from say NOLO

Can any lawyers, or those who have incorporated their own business as a C-Corp, provide a rough estimation of upfront and annual costs?

http://www.blumberg.com/invoice.cgi?rm=view_cluster;cluster_...

http://www.legalzoom.com/legal-incorporation/incorporation-p...

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