MPHJ Case Is Good News For Downstream Tech Users

Law360, New York (September 4, 2013, 12:38 PM EDT) -- A favorite strategy of some less scrupulous "patent trolls" is to target downstream users of a technology instead of the manufacturers. Downstream users are more likely to settle, and "trolls" can accept relatively small settlements from such users of a technology — without diluting the value of the patent portfolio. Typically, users far outnumber manufacturers, so these "trolls" could generate significant revenue by a series of small settlements. These assertions are sometimes based on minimal investigations, yet significant revenue may be collected without the value of the patents ever being scrutinized in court.

An August settlement reached between one apparent "troll"...

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