Tag: Patent Lawsuits

On May 22, 2017, the U.S. Supreme Court made a unanimous decision that is being hailed by large technology companies and other patent holders, who have arguably been victimized over the years by what are known as “patent trolls,” or smaller companies that purchase patents only in order to demand royalties and sue for damages (instead of using those patents, for example). This particular type of activity was significantly interfering with the ability for these businesses to effectively run their business models.

Companies referred to as “patent troll” companies would allegedly target very specific courts in which to sue for damages—a practice known as forum shopping—because these remote federal courts had a reputation for friendliness towards plaintiffs, or the suing party. For example, more than 40 percent of all patent lawsuits were filed in federal court in East Texas, even though no major manufacturers are based there. As a result, one judge oversaw about a quarter of all patent cases filed nationwide.