Lodsys Takes One On The Chin, Pwned By Pro Bono Lawyers

Well well well, what have we here?   I haven’t looked yet for can’t find the name of the law firm that handled the case but wouldn’t you love to shake their hand, give ’em a big ol’ Texas Hug and say “Atta Boy!”?

I totally would.  First round of margaritas is on me!!

Background added:  Lodsys is a shell of Intellectual Ventures company that is going after app developers for using in-app purchases because they say they have a patent on that, and are demanding that developers rustle up some licensing fees but quick.  One app developer fought back with the help of some pro bono attorneys who gave up a $200k paycheck to help.  They brought Lodsys to its knees in a settlement that ended up putting money in the hands of a charitable organization.  Which is winning on every.single.front.

Forbes has their take on the story in this article, and I want to bring a few things to light, namely his main point, if I may be so bold as to disagree.  Ahem.

And the answer to killing the trolls while still allowing the legitimate patent assertion entities to flourish is to level that legal and financial playing field. Something that could be done very simply.

Actually, I do agree that it can be done simply, but not using his tactic, which is as follows:

Just move to loser pays all legal fees in patent cases.

That sounds super terrific on the surface, but the way the shell game works is that these entities who are doing the suing are playing funny money.  You can’t get blood out of a turnip, as my grandfather used to say.  Do you think that if a Lodsys/Intellectual Ventures (because let’s just call a quacking duck a quacking duck here, they’re one and same) does lose that they’ll pony up the fees?

I don’t think so.

I think they’ll do what they do best:  lie, cheat, hide, be nefarious, all of those things.  They’re going to make it all go *POOF*, all of their assets and bank accounts.  Besides which, not spending the money on a defense up front is always preferable to trying to get it back afterwards.  Once it’s out of your hands, money is really tough to get back under any circumstances.  (Don’t ask me how I know that because I totally do not have a bag of clothes in my closet that don’t fit/didn’t match/need to go back to the store for some reason but I haven’t made the time to take them. )

Same thing here: the money’s spent on the suit up front: whether or not the loser is required to pay, and really it should be called “loser pays back“, that money’s already left the defendant’s coffers. If nothing else, you lose the interest so supposing you do get it back, you’re still out the time value of money. You’re welcome for showing off the mad math skillz you taught me in 4th grade, Mrs. Unger.

I think a better approach, and I’ve said this many times, is a sort of crowd funding for these suits. Bring people together who have a vested interest in seeing this problem go away, and give them a place to put some funds.  I recently learned of DefenseMob, whose purpose is to crowdfund patent defense, which can include patent litigation.  It can also be used to fund things like re-exam, or inter partes review (IPR) requests which is how Rackspace is going after IP Nav.  I’m no genius, but isn’t that exactly what we need?  The beauty of it is that it allows the little guys a chance, and that’s who the trolls are increasingly going after because they tend to fight the least.  If there was a way to get the money fronted, even if it’s just a portion of it, you have to believe that more of them would fight, no?

This type of solution needs no government intervention.  It needs no legislation, no persuading of judges, no permission from anyone.  All it needs is people willing to solve the problem collaboratively using any amount of funds they’re willing to let go of for a common good.

And if that common good means someone like Nathan, who wants so terribly bad to be the next Cooking Channel celebrity, goes down in a blaze of glory like his henchmen Lodsys just did, doesn’t it make you want to do it even more?

mhyrvold_guy fieri mesh

Nathan Mhyrvold/Guy Fieri mashup.
In case that wasn’t obvious.

The answer is yes, Yes it does.

JustSayin_small

IPTT

{Guy image found here: http://theonefeather.com/2011/03/guy-fieri-bringing-his-food-tour-to-harrah%E2%80%99s-cherokee/  Nathan image found here: http://www.intellectualventures.com/index.php/about/leadership/nathan-myhrvold}

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3 thoughts on “Lodsys Takes One On The Chin, Pwned By Pro Bono Lawyers

  1. Pingback: Patent Aggression, Patent Trolls, and the Increased Visibility of Microsoft’s Role | Techrights

  2. Pingback: Let’s Revisit Lodsys v. TMSoft One Moore Time, Shall We? | IP Troll Tracker

  3. Pingback: Goodlatte Needs A Latte And A Talking-To Re: Patent Reform | IP Troll Tracker

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