by Artiom Ponkratenko
Patent Troll Says Anyone Using WiFi Infringes; Won’t Sue Individuals ‘At This Stage’
[Via Techdirt]
Just as some in the copyright trolling business are lowering their settlement fees, but making it up in volume, it appears there’s a similar effort under way on the patent trolling side of the world. The Patent Examiner blog has the incredible story of Innovatio IP, a patent troll that recently acquired a portfolio of patents that its lawyers (what, you think there are any employees?) appear to believe cover pretty much any WiFi implementation. They’ve been suing coffee shops, grocery stores, restaurants and hotels first — including Caribou Coffee, Cosi, Panera Bread Co, certain Marriotts, Best Westerns, Comfort Inns and more.
There are various interesting things in the article worth commenting on. First is the smaller settlements/making it up in volume technique. While its initial lawsuits against coffee shops and restaurants did focus on the central corporations, with the hotels, Innovatio appears to be focusing on individual franchisees. Yes, the small businesses who own individual hotels and probably have no idea how to deal with a patent infringement lawsuit — all because they dared to offer WiFi somewhere in their hotels. To make it “easy” of course, Innovatio’s lawyers will let them settle for between $2,300 and $5,000. In almost every case, that’s going to be cheaper than hiring a lawyer to just get started dealing with this — which I’m sure is exactly what Innovatio intends.
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Legalized extortion is what this is like. They simply walk up to ‘customers’ who use WiFi equipment and say “Gee, nice Wifi network you’ve got here. Hate to see it shut down and you go to jail for patent infringement. I can make that all go away for less than $5000.”
And they absolutely do not want to sue anyone who could actually take them to court because the patents are most likely not valid. The only way to prove that is to go to court. So they make it ‘easy’ on people y charging their ‘settlement’ fee.
I expect there are lots of lawyers though that would love to take on a pro bono case like this. And that is why these sorts of patent trolls are hit and run. They spam thousands if not millions of organizations hoping just a small percentage pay the fee. Just a thousand saying yes is a couple of million dollars. Then when they are shut down they move to another set of patents.