What is a Patent Troll and Why Should We Care?

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Patent trolls are a term used to a patent owner or licensee that seeks payment from companies allegedly infringing on the troll’s patent rights.  Rather than fight the allegation, the company complies with the troll’s demands.  The patent troll typically sends out multiple letters and thus may amass a considerable fortune.

Many companies are growing tired of the patent trolls and their seemingly unjust demands.  To counter the trolls, many states have or are in the process of enacting anti-troll legislation. Florida, for example, recently passed a law that seemingly protects businesses from the demands of the patent trolls.  The law enables a company to sue a patent troll for sending a letter in bad faith.  The law includes a “loser pays” provision meaning that if the patent troll loses the action in court, they will need to pay the attorney’s fees for the opposing party as well as any damage award.

What’s the take away here?  Well, patent troll legislation may be needed.  However, the language and provisions need to be drafted in such a way that does not create more problems than the problems they are designed to fix. 

Identifying, protecting and asserting your intellectual property rights is critical to any organization.  Having the right person to help you through the process is important.  The Law Office of Kathleen Lynch PLLC is designed to help businesses such as yours keep ahead of the game.   The first telephone consultation is free.  Email us at klynch@kliplaw.com.

David (Jang) Beats Goliath and Wins Over $200 Million

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A California jury awarded a cardiologist $200 million dollars against Boston Scientific.  The jury heard the patent infringement and licensing lawsuit filed by Dr. David Jang who developed two cardiac stents for Boston Scientific.  The jury found in favor of Dr. Jang and awarded him $200 million dollars in damages.   The jury determined that the medical device company breached its contract with Dr. Jang and infringed two patent claims.

In 2002, Dr. Jang licensed two stent patents to Boston Scientific in exchange for $50 million upfront and an additional $110 million contingent on sales of stents that incorporate his patents.  In 2005, Dr. Jang sued Boston Scientific for breaching the license agreement and claimed that Boston Scientific failed to make payments required by the terms of the agreement. Dr. Jang alleged the company owed him just under $100 million for using his patented products, and with interest at about 12 percent a year, would bring that amount to more than $200 million.

What’s the take away here?  First, a patent is only as good as your ability to enforce it.  Here, the good doctor was able to stand his ground against a large opponent and prevail.  Second, your ability to prevail in an infringement action may take longer than you would ever want.  But patience may be a virtue in patent infringement actions, especially if the facts favor your cause.

Protecting your innovative developments is critical to any organization.  Having the right person to help you through that process is important.  The Law Office of Kathleen Lynch PLLC is designed to help businesses such as yours keep ahead of the game.   The first telephone consultation is free.  Email us at klynch@kliplaw.com.