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Why Rackspace Is Suing The Most Notorious Patent Troll In America

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Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#61
post #4

> In actuality, it is a bit more complicated. Our dealings with this particular troll reach back to December 2010 when IP Navigation Group (IP Nav), as agent for a supposedly secret patent owner, now known as Parallel Iron, accused Rackspace of patent infringement. IP Nav told us that they could not divulge the details of their infringement claims – not even the patent numbers or the patent owner – unless we entered…

I can't understand why anyone would sign away their right to counter-sue in order to obtain information on something which can't possibly damage them until the information is disclosed anyway (IANAL)

Maybe b/c they do not believe that such an agreement is enforceable. The majority of States have "anti-slapp" laws that in limited circumstances protect the Freedom of speech over agreements/contracts (generally one has the right to contract confidentiality which is enforceable).

For example I had a case where I represented a plaintiff suing over breach of a confidential settlement, b/c I attached the confidential settlement as an exhibit the defendant counter-sued for disclosing the confidential settlement. I got their counter-suit dismissed as a matter of law b/c the anti-slapp protected the freedom of speech to disclose the confidential agreement to the court for the purpose of enforcement.

At this time the Federal Government does not have a anti-slapp equivalent, and most IP cases are federal; therefore, it might be actionable to disclose confidential information in Federal Court for enforcement, maybe under seal...if a Federal practitioner happens to have experience with this issue, please shed some light.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#62
post #10
post #6

Interesting, patent trolls have reached the level of public relations foil. I think its great that Rackspace is suing these guys but I found the press release made me feel like I do when somebody is trying to impress me with all of the charities they've donated money to. Mutual forbearance agreement? Seriously? Why not sue them right then and there when they foisted that bit of "strategy" on you and charged them with…

Why not sue them right then and there when they foisted that bit of "strategy" on you and charged them with criminal extortion? Presumably because if given a choice, Rackspace would rather spend its time and energy on hosting servers than in court.

Shortsighted assumption. Rackspace is bit bigger than one guy answering phone calls, replying to tickets, administering racks, configuring new ones, procuring bills and mopping the floor.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#63
I've said this here before more than once. The solution is for tech companies to fund a massive entity who's only purpose in life is to mercilessly sue patent trolls. Destroy them. Go after their patents. Invalidate them. Make it so costly to even attempt to enforce a bullshit patent that they will only dare take that step if they have a really good solid patent.

If the top 100 companies in tech donated just ten million dollars a year to this effort you would instantly have a one billion dollar "kill the trolls" fund. If the fund is not fully consumed during the first year it could become three or four billion in five to seven years. How many trolls are going to be willing to go up against any company with that kind of a war chest to protect it?

Small entities would contribute less. The way I see it, in the US alone, this kind of protection is easily worth $50K to $100K per year for a small entity.

Yes, we are at a point where you might have to consider paying a membership fee to a troll protection association that is equivalent to the salary of a full-time employee. Sad.

The US government ought to also provide a sizable chunk of money to this fund as well as tax-exempt status. Say, a billion dollars a year. Considering the economic damage being done this is chump change. Now you have a kill-the-trolls association that, through public and private funding, could end-up with nearly ten billion dollars in five to seven years. Scary enough?

I am not one for government getting involved in private matters, much less blowing money like they did in Solyndra and others. However, this is a government-sponsored monopoly that they crated. You and I did not create this. This mess is 100% on government hands. And, like most things government does, it eventually went off the rails. It's an absolute mess. They have a responsibility to fix it.

The first step is to grant a sizable amount of money to a private entity that will shield entrepreneurs from trolls. They should hand over the money and get out of the way. Consider it reparations for running such a fucked-up patent office. Then they can go off and take ten years to reform the system.

Oh, yes, they should also make the patent invalidation process 100% free. In other words, anyone should be able to file a patent invalidation action and it should be 100% free. Then we could crowd-source patent invalidation runs on all the patents held by trolls. Form crowd-sourced teams that target trolls and file away.

Seriously folks, this is war. And in war you have to have more powerful weapons than your enemy. The enemy has the power of the monopoly they were granted by the US government. What they don't have is unlimited and massive capital. An association of practicing entities --no trolls allowed-- with billions of dollars available to mount a shield and defend members would be massively intimidating.

The association's mission statement should state that all engagements will have, as a goal, the invalidation of the patents in question. In other words, if you screw with us we will go directly to rip those patents out of your hands. No middle ground. No deals. No mercy. Attacking us means you, as the attacker, risk it all and you better have a real patent.

How many trolls are going to risk that? How many will do it after one, two or several are absolutely decimated in court and their patents invalidated.

One more thing. If a non practicing entity has a patent invalidated they are also put through a bankruptcy style procedure whereby a trustee takes a look at what moneys were derived from licensing the invalid patents. The idea is to refund ill-gotten funds to those who paid the fees.

In other words, hit them with a nuke.

EDIT: Also, on the subject of patent invalidation. This should be ripped out of the hands of the government and run just like a trial. I don't know exactly how it works today, but this is what I have in mind: A judge is appointed to oversee the process. A jury of people well-qualified in the patent's subject matter is assembled. Both parties present their case. The jury deliberates and decides. Fast, efficient and 100% in private hands with the blessings of the US government. Rough strokes.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#64
post #17
post #6

Interesting, patent trolls have reached the level of public relations foil. I think its great that Rackspace is suing these guys but I found the press release made me feel like I do when somebody is trying to impress me with all of the charities they've donated money to. Mutual forbearance agreement? Seriously? Why not sue them right then and there when they foisted that bit of "strategy" on you and charged them with…

We couldn't sue because we didn't know what we would sue on. They wouldn't even tell us the patent numbers - so we didn't have the knowledge necessary to even file a complaint. As for suing because of the forbearance agreement, they try to write these things so they are just on the side of the line, and it is really hard to make a RICO suit stick (see Cisco and Innovatio). We, of course, think that it is just BS. Now…

IANAL, but, doesn't this at one point border on extortion? There's an implied threat to cause harm by force unless you do x. Again, not a lawyer. Maybe there are much finer points to consider before it becomes extortion.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#65

I've said this here before more than once. The solution is for tech companies to fund a massive entity who's only purpose in life is to mercilessly sue patent trolls. Destroy them. Go after their patents. Invalidate them. Make it so costly to even attempt to enforce a bullshit patent that they will only dare take that step if they have a really good solid patent. If the top 100 companies in tech donated just ten mill…

I personally believe the same thing is necessary in a similar area; I've been discussing it with friends recently. In games in particular (but I'm sure other fields as well), big actors often violate contracts with impunity, safe in the knowledge that the small companies they deal with cannot possibly afford to challenge them in court. Milestone payments delayed indefinitely (to empty out a smaller partner's coffers), contracts outright violated, etc.

It definitely feels like there are a lot of problems facing software developers in general that could be addressed if collectively the industry would take a stand for civilized, rational behavior and pool their resources. In some cases, you could possibly turn a profit doing it!

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#66

I've said this here before more than once. The solution is for tech companies to fund a massive entity who's only purpose in life is to mercilessly sue patent trolls. Destroy them. Go after their patents. Invalidate them. Make it so costly to even attempt to enforce a bullshit patent that they will only dare take that step if they have a really good solid patent. If the top 100 companies in tech donated just ten mill…

I personally believe the same thing is necessary in a similar area; I've been discussing it with friends recently. In games in particular (but I'm sure other fields as well), big actors often violate contracts with impunity, safe in the knowledge that the small companies they deal with cannot possibly afford to challenge them in court. Milestone payments delayed indefinitely (to empty out a smaller partner's coffers)…

I know what you mean. I have tangled with multi-billion dollar corporations in the past. They way I put it was that, beyond a certain size companies can almost create their own laws when it comes to dealing with smaller entities. In other words, they could be completely at fault and even engaging in illegal actions yet get away with it because the smaller entity can't even begin to play the game. This is one aspect of US law that is really bothersome: At some level you only get the justice you can afford to pay for.

I won't go into the details here, just rough strokes. I had a serious dispute with a multinational that cost me eight months of work (three engineers) and about $800K in cash. I sought to find an amicable solution but they really didn't care. They didn't even want to talk to me. I also learned that they were doing similar things to other companies. One of them was about to go broke because they could not deliver product to their major customer due to what happened. Anyhow, in a telephone conversation with one of their VP's I told him that I was planning on visiting them at an upcoming trade-show and that I would not leave the booth until we had a meeting about the issue at hand. The entire conversation was 100% relaxed and amicable. A matter-of-fact dull business conversation.

A week before the trade-show I was served with a temporary restraining order to keep me away from the convention center. They made the radius so large I couldn't even go see their competitors. I drove from Los Angeles to San Jose in a hurry to challenge it in court. Only one of my accusers showed-up with a lawyer from the company. They lied through their teeth. The judge saw it. I didn't really have to say much of anything other than "Your Honor, they are not telling the truth and are using this TRO to bully a small business.". The judge looked at them and said something like this: "You folks ought to be ashamed. You are going to have to walk on water for me to uphold this TRO and make it permanent. And you better not say a word or there will be consequences". I did pay them a visit at the trade-show and they had no choice but talk to me. They still screwed me and a dozen other companies.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#67
post #4

> In actuality, it is a bit more complicated. Our dealings with this particular troll reach back to December 2010 when IP Navigation Group (IP Nav), as agent for a supposedly secret patent owner, now known as Parallel Iron, accused Rackspace of patent infringement. IP Nav told us that they could not divulge the details of their infringement claims – not even the patent numbers or the patent owner – unless we entered…

I can't understand why anyone would sign away their right to counter-sue in order to obtain information on something which can't possibly damage them until the information is disclosed anyway (IANAL)

People will do a lot of dumb stuff without talking to an attorney. They'll think,"OMG, lawyers are saying they'll put me out of business," or "OMG, the IRS/SEC/FBI have told me I did something bad," and they call the number on the letterhead. People want to believe that other people are reasonable.

I wouldn't advise this for the latter group, but it is quite enjoyable to wind up time saying a lot of nothing (except maybe a nice description of your bowel movements) to the legal firm, who then charge their client for writing it down and telling them what was said.

In general, keep your effing mouth shut. It's generally safe to ignore "scary letters" (and especially emails) if you're not actually served, because it's inexpensive to carpet bomb potential suckers. Once they legally act against you (such as the IRS telling you they have started auditing your returns), break out your rainy day retainer fund. There are good attorneys out there and they're not hard to find.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#68
post #42

Earlier quoted context omitted.

It's worth noting that it's very very close to the same tactic Microsoft pursued in targeting Android OEMs. Basically forcing them to sign non-disclosure agreements before letting them even know which patents they violated. Then when Barnes and Noble finally refused and forced (some of) the patents into the open something like 90% of them were found to be bogus. But this was after dozens of OEMs were extorted into li…

>something like 90% of them were found to be bogus Reference?

Partly, Microsoft themselves since they withdrew significant parts their patent claim pretty much as soon as they were forced to make them public:

http://www.zdnet.com/blog/microsoft/microsoft-withdraws-one-...

But you can judge for yourself:

"Loading status in a hypermedia browser having a limited available display area":

http://www.google.com/patents?id=DwEJAAAAEBAJ

"Remote retrieval and display management of electronic document with embedded images":

http://www.google.com/patents/about/5778372_Remote_retrieval...

"System provided child window controls":

http://www.google.com/patents/about/5889522_System_provided_...

"Selection handles in editing electronic documents"

http://www.google.com/patents/about/6891551_Selection_handle...

Take the "loading status" one for instance: the entire patent consists of displaying an animated graphic while a page loads and then removing the animated graphic afterwards. That's supposed to be an invention worthy of protection because otherwise Microsoft might keep its implementation secret, thus the public should wait 20 years to use it. In my view, that is exactly the kind of patent that makes a mockery of the patent system.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#69
post #60

I'm all in favor of fighting groundless patent infringement claims, but a bit surprised to see so much commentary from Rackspace about a pending legal matter. The normal lawyer response would be "we don't comment on pending litigation."

It's definitely out of the norm. Especially when the VP of IP (I'm guessing also general counsel) participates in a forum discussion on the topic. Then again, he's the one who can, and is supposed to, speak on such matters for the company.

It could also be an attempt to get Google juice for anyone else looking for info on these jokers.

Re: Why Rackspace Is Suing The Most Notorious Patent Troll In America

#70

I've said this here before more than once. The solution is for tech companies to fund a massive entity who's only purpose in life is to mercilessly sue patent trolls. Destroy them. Go after their patents. Invalidate them. Make it so costly to even attempt to enforce a bullshit patent that they will only dare take that step if they have a really good solid patent. If the top 100 companies in tech donated just ten mill…

You are overlooking the fact that patent trolls do have real patents.

From the blog post, for example: """ Until Congress reforms the patent laws, companies of all sizes and industries could – and likely will – find themselves in the crosshairs of a greedy patent troll looking for a quick cash-grab. No company is immune, and, sadly, small companies can’t afford to fight. If they don’t succumb to the troll’s demands by settling, they face certain ruin. """

Patent trolls are on the right side of the law. The law is the problem.

And invalidating a worthless patent doesn't harm the troll at all -- no harm in trying, right? They can always get another patent. As non-practiciing entities, they don't have any business at risk. It's asymmetric.

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