A patent troll who has been suing hotels and coffeehouses which offer wireless internet for their customers has won their first round in court, with a judge in the case throwing out defendants claims that what the company is doing is nothing short of racketeering. Why does this matter to you? Because, rather than suing the manufacturers of wireless devices, the trolls are suing small businesses which provide internet to their customers; businesses that can’t afford to fight these claims, like hotels, restaurants and coffeehouses.
Cisco Systems, Motorola and Netgear had banded together, seeking to shut down the patent trolling company, claiming that the campaign was a violation of the RICO law. Unfortunately, the judge ruled that patent troll “Innovatio’s campaign is protected petition activity under the First Amendment.” Now the company has given a large number of businesses notice that it plans to ask for judgements against them of $5,000 each.
The Obama administration proposed a patent reform package, but the passing of these reforms is far from a sure thing, and might not even apply in this case.
I have several questions for you:
- As a shop owner, would you be willing to pay a $5,000 fee* to be able to offer internet to your customers?
- As a customer, would you be as likely to buy coffee from a shop which doesn’t offer internet?
If you are not familiar with “patent trolling” the latest episode of This American Life is just for you – “When Patents Attack… Part Two!”
*That appears to be the fee they are going for, though they have settled for less in some cases
a fish says
These S.O.B.s are featured in an opinion piece in today’s NYTimes. Apparently their reach on phony patents is way greater than just coffee shops and free internet. People like that should be hogtied and horsewhipped – daily and in a public square. (I didn’t really say that, although it does come to mind!)
http://www.nytimes.com/2013/06/05/opinion/make-patent-trolls-pay-in-court.html?ref=opinion
Food Dude says
I also meant to link to the latest episode of This American Life, which is an update on their well-regarded patent trolling piece
MKG says
Here’s a link to the NPR piece in print.
http://www.npr.org/blogs/money/2011/07/26/138576167/when-patents-attack
Turns out that Nathan Myhrvold, of Modernist Cuisine fame, is one of the big patent trolls. Kind of makes me glad I never shelled out any money for any of his books.
Gary says
Internet availability is a big part of my decision when picking a coffee shop or lunch stop. Without Internet I might as well stop at a grocery store for drinks and food.
hsawtelle says
I am so glad this issue is finally getting mainstream attention! Trolls are part of the reason I had to quit patent law (I represented the good guys for 11 years until the irrationality of the system broke me down).
Anyway, eff the patent trolls! I never dreamed that term would be used in a food blog.
Food Dude says
We try to stay on the cutting edge ;)
Tommy says
They’re going after podcasters as well. Personal Audio has sued Adam Carolla (say what you will about him, but he’s a victim in all of this just like the mom-n-pop coffeehouses and cafes), and Marc Maron’s been pretty vocal about the issue on his show as well. I don’t know what’s worse, the d-bags that try to force everything they can into an extortion racket, or the courts that uphold their right to do so under the First Amendment (don’t even get me *started* on Citizens United). I’m pretty sure the issue of patent trolling wasn’t discussed when the Bill of Rights was written two hundred some odd years ago… Appalling.
John says
The patent system is completely broken IMO.
It is completely unfair that people with honest businesses are being punished like this