Newegg Gets Patent Troll Macrosolve To 'Fold Like A Cheap Suit'
from the a-win dept
Among the worst of the worst patent trolls out there, Macrosolve had quite a reputation -- described as "worse than Lodsys" it took a sue tons of companies first, demand settlements later approach, based on an obviously ridiculous patent (7,822,816) for a "system and method for data management" that the company insisted, hilariously, covered any mobile app that used online forms where users could submit data. Yes, forms. For a patent filed in 2003 and granted in 2010. In a bit of a "cute" move, the company tried to pretend it wasn't a troll by doing a deal with... Donald Trump, which apparently suckered some in the press to claim that it wasn't a troll.But it is a troll, and ended up filing over 75 lawsuits in (of course) the eastern district of Texas, following up the lawsuit filings with demands for licenses. In typical troll behavior, it made the licensing terms much cheaper than actually fighting the lawsuit (even if one were to win), so nearly all of the companies sued sucked it up and settled. However, Macrosolve included electronics retailers Newegg in its bundle of lawsuits, and, as we've noted in the past, Newegg has taken a clear "screw patent trolls" stance, where it absolutely refuses to negotiate with trolls.
Newegg has announced today, somewhat gleefully, that when faced with actually having to go to trial, Macrosolve has "folded like a cheap suit" dismissing its lawsuit against Newegg (and Geico, the one other company who fought back).
Lee Cheng, Newegg’s Chief Legal Officer stated, “In a sense, we are disappointed because we were robbed of an opportunity to prove in court that Macrosolve was and is nothing more than a serial, shameless abuser of patent rights, with a poor-quality patent that has not even survived its first reexamination. Macrosolve failed to create products and services that real customers found valuable, whose principals decided to turn it into a corporate parasite. It is not a coincidence that faced with its first real opposition in Newegg and Geico, Macrosolve folded like a cheap suit, and dismissed its lawsuits against all defendants.”Yes, Macrosolve is a "public" company, in that it's an over-the-counter penny stock, so not only was the company looking to abuse the patent system to cash in, it appears that perhaps it was abusing the public equity markets as well. Either way, by demanding much less than it would cost to fight it in court, the company took in at least $4 million in settlements. Newegg is hoping to get back some of its own costs, though it expects Macrosolve to do everything possible to avoid that:
Cheng continued, “I could never figure out how Macrosolve would not be required to publicly and timely disclose the fact that its primary asset, the ‘816 Patent,’ was the subject of a final rejection in reexamination or that it dismissed almost all pending lawsuits with prejudice. What was most bizarre was how Macrosolve’s stock price traded up the day that the USPTO issued the final rejection of the ‘816 Patent’. Curious. Definitely worth someone’s attention.”
Newegg intends to seek all of its fees and costs against Macrosolve for its abusive litigation tactics. However, it is highly likely, in yet another example of how the patent law system is unfairly tilted against defendants, that even if Newegg were to prevail in court in its fee motions, that Macrosolve will simply file for bankruptcy after collecting and distributing over $4M in “licensing” revenue to its principals and its contingency fee lawyers.Congress is, once again, promising to pass new legislation to stop patent trolls, and here's yet another example (in a very long list of them) why help is needed now.
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Filed Under: eastern district, forms, patent troll, patents, texas, trials
Companies: geico, macrosolve, newegg
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Re:
yes, I had to deal with insurance companies before. The contracts are not worth the paper they are printed on if you actually need them.
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Re: Re:
http://mattfisher.tumblr.com/post/29338478278/my-sister-paid-progressive-insurance-to-defend- her
I used to have 21st Century (before they got bought by Farmers) and they were great to us but weren't going to pay anything they didn't have to. In the last accident (starting from a red light at 3 MPH), they told the lady that if she claimed an injury, they would prosecute her for fraud to the full extent of the law. That nonsense dropped quick.
But now, they got bought by someone who won't treat you as well.
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Funny that
Also funny how so many of them operate in east Texas, almost like that particular area is really friendly to patent trolls, though I'm sure it's just a pure coincidence, and other courts would be equally accepting of their actions. /s
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Those patent dudes must have been high on som'ting that day.
I want it?
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Maybe it's about time we set up a "Chilling Effects" for patents?
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I like Newegg's stance on patent trolls.
/Yeah, I know, it sometimes costs them more.
//but they get my business because of it.
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Re: I like Newegg's stance on patent trolls.
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Time to make patent examiners liable
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Dumb
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Re: Dumb
Answer your question?
Cheng (my last name)
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Re: Re: Dumb
Also, the patent can't be dumb if you are being assessed damages by a jury. Obviously a few folks see merit in those cases. And have you had the tqp judgment reversed? Not yet. I hope your lawyers make better arguments for you in court than in the comments section!!!
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