We (MediaFire) were part of the Amici brief submitted to the Supreme Court regarding the eastern district of Texas. [1]
It is a serious issue. Being a Texas company, we have been sued numerous times primarily because we are in Texas and it allows the other defendant's cases to be tried in the Eastern District of Texas.
The patents are always baseless, but it matters little. In almost all cases, the board of directors wants to settle the case quickly instead of fighting it out, even (in many cases) if the CEO or inside counsel wants to fight. It's cheap(ish) to settle and very expensive and time-consuming to fight; in short, it's a big distraction, one that can be solved with money. Since most of the plaintiffs are shell companies run by lawyers, there is little cost to them even if they loose and no value to the defendant if they win.
The exception to all this being Lee Chang at NewEgg who always fights. That works if you have a CEO and board who is willing to spend the time and money to establish a reputation but that is seemingly rare. Newegg also signed onto this Amici. [2]
This problem has been going on for a long time (8 years for us), and while we keep hoping for some reform, Congress is yet to act in a meaningful way.
On a side note, our former patent defense attorney, who clerked for the patent judge in Marshall, TX, left defense a few years ago and became a plaintiff's attorney. His reasoning? Much more profitable.
[1] http://www.scotusblog.com/wp-content/uploads/2017/02/16-341-...
[2] https://blog.newegg.com/lee-cheng-holds-reddit-ama-explains-...
It is a serious issue. Being a Texas company, we have been sued numerous times primarily because we are in Texas and it allows the other defendant's cases to be tried in the Eastern District of Texas.
The patents are always baseless, but it matters little. In almost all cases, the board of directors wants to settle the case quickly instead of fighting it out, even (in many cases) if the CEO or inside counsel wants to fight. It's cheap(ish) to settle and very expensive and time-consuming to fight; in short, it's a big distraction, one that can be solved with money. Since most of the plaintiffs are shell companies run by lawyers, there is little cost to them even if they loose and no value to the defendant if they win.
The exception to all this being Lee Chang at NewEgg who always fights. That works if you have a CEO and board who is willing to spend the time and money to establish a reputation but that is seemingly rare. Newegg also signed onto this Amici. [2]
This problem has been going on for a long time (8 years for us), and while we keep hoping for some reform, Congress is yet to act in a meaningful way.
On a side note, our former patent defense attorney, who clerked for the patent judge in Marshall, TX, left defense a few years ago and became a plaintiff's attorney. His reasoning? Much more profitable.
[1] http://www.scotusblog.com/wp-content/uploads/2017/02/16-341-...
[2] https://blog.newegg.com/lee-cheng-holds-reddit-ama-explains-...