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Patent troll shut down by Newegg ( Shopping Cart Patent?)--Online Retailers Rejoice!!
Fudzilla ^ | Monday, 28 January 2013 11:28 | Nick Farrell

Posted on 01/28/2013 8:00:51 AM PST by Ernest_at_the_Beach


You don’t own nuttin


For a while now online retailers have been living in fear of a patent troll called Soverain Software.

The company which has a nice website with separate pages for "products," "services," and "solutions" actually has never made a product in its life and its voice mailboxes were all set up by Katherine Wolanyck, the former Latham & Watkins attorney who is a co-founder and partial owner of Soverain to make it look like it was a real company.

Soverain bought a bunch of OpenMarket patents in 2003 and has been trying to extract a patent tax of about one percent of revenue from a huge swath of online retailers. Soverain used two patents, numbers 5,715,314 and 5,909,492, to claim it owned the idea of "shopping carts". In some cases, it wielded a third patent, No. 7,272,639.

However all that was stuffed up when it tried to take on Newegg and its lawyers, who won an appeal ruling  that invalidates the three patents. It shuts down dozens of the lawsuits Soverain filed last year against Nordstrom's, Macy's, Home Depot, Radioshack, Kohl's, and basically anyone who might have provided shoppers with basic online checkout technology. Soverain had sued Newegg for $2.5 million and all the cash it collected from Victoria's Secret and Avon. Those two companies were ordered to pay a total of almost $18 million, plus a "running royalty" of about one percent, after a 2011 trial.

Newegg's chief legal officer Lee Cheng claimed it was a huge validation of the strategy the company decided to pursue back in 2007: not to settle with patent trolls. Soverain was getting a lot of case law on its side with impressive victories in Texas patent courts. So it launched a full-scale assault on dozens of retailers: hardware stores like Home Depot, clothiers like Macy's, Nordstrom's and Kohl's, electronics sellers like Best Buy and Radioshack, Drugstore.com and Walgreen's.

As Ars Technica pointed out it could have skimmed the entire Internet retailing business thanks to brain dead courts in Texas.
Texas is used by patent trolls because its juries are so thick that they believe opposable thumbs are a pretty neat idea.  In this case the Judge refused to allow evidence from New Egg that proved that all the patents were prior art because it would confuse the jury. 

We guess the Jury was still confused by the push and pull sign on the door to the jury room so he did not want to bother them further. The case and the patents were thrown out on Appeal and the Internet was saved.


TOPICS: Business/Economy; Computers/Internet
KEYWORDS: hitech; patentwars
Be sure to read the comments regarding the jury members and the Judges in Bible Thumping East Texas....
1 posted on 01/28/2013 8:01:05 AM PST by Ernest_at_the_Beach
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To: ShadowAce; SunkenCiv

fyi


2 posted on 01/28/2013 8:02:24 AM PST by Ernest_at_the_Beach ((The Global Warming Hoax was a Criminal Act....where is Al Gore?))
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To: All
Didn't see Amazon or Walmart mentioned....guess the Patent Troll was saving them for later....and the bigger payoff.
3 posted on 01/28/2013 8:10:14 AM PST by Ernest_at_the_Beach ((The Global Warming Hoax was a Criminal Act....where is Al Gore?))
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To: Ernest_at_the_Beach

“Texas is used by patent trolls because its juries are so thick that they believe opposable thumbs are a pretty neat idea.”

Or perhaps we a) don’t understand, and don’t care to understand, a world where you have to be told not to insert a curling iron into any orifices and b) don’t care if any of you like it.


4 posted on 01/28/2013 8:13:04 AM PST by TheZMan (Buy more ammo.)
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To: Ernest_at_the_Beach
Amazon paid them $45 million early to go away..

If you go to the Soverain website..all three of the top crook ( er, officers, are female..) a witch's coven of lawyers, perhaps?

5 posted on 01/28/2013 8:13:50 AM PST by ken5050 ("One useless man is a shame, two are a law firm, three or more are a Congress".. John Adams)
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To: Ernest_at_the_Beach
Amazon paid them $45 million early to go away..

If you go to the Soverain website..all three of the top crooks ( er, officers, are female..) a witch's coven of lawyers, perhaps?

6 posted on 01/28/2013 8:14:10 AM PST by ken5050 ("One useless man is a shame, two are a law firm, three or more are a Congress".. John Adams)
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To: Ernest_at_the_Beach
Texas is used by patent trolls because its juries are so thick that they believe opposable thumbs are a pretty neat idea. In this case the Judge refused to allow evidence from New Egg that proved that all the patents were prior art because it would confuse the jury.

Actuallly, from what I understand, it's just one district in east Texas that is completely loony on patents. I suspect it has a lot more to do with the judges than the juries.

7 posted on 01/28/2013 8:16:12 AM PST by zeugma (Those of us who work for a living are outnumbered by those who vote for a living.)
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To: Ernest_at_the_Beach
wow , amazon only paid 45 mil to make it go away, that's a good deal for them.
8 posted on 01/28/2013 8:49:04 AM PST by johnsondavid841
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To: johnsondavid841

It is both a good a deal, and a cowardly act by Amazon. The rich kid paid the bully to go away and bully the smaller kids. Newegg took a real risk by deciding to fight this case, and ended up helping every other online retailer. Kudos to them.


9 posted on 01/28/2013 9:11:24 AM PST by MrShoop
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To: Ernest_at_the_Beach; TheZMan

Looks like TheZman got yo numba, kalifornicate. PETA will be on you next for scorching those poor little gerbils.


10 posted on 01/28/2013 9:17:26 AM PST by X-spurt (Republic of Texas, Come and Take It!)
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To: MrShoop
It is both a good a deal, and a cowardly act by Amazon. The rich kid paid the bully to go away and bully the smaller kids. Newegg took a real risk by deciding to fight this case, and ended up helping every other online retailer. Kudos to them.

Yes, cudos to NewEgg. Bezos of Amazon is just another unprincipled leftist Crony Capitalist.

More and more that I read about Bezos the more I am disgusted with that girly punk. Bezos should do the world a favor and read the Whole Foods Founder's book on Capitalism.

11 posted on 01/28/2013 11:31:31 AM PST by sand88
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To: Ernest_at_the_Beach
Be sure to read the comments regarding the jury members and the Judges in Bible Thumping East Texas....

Yea - it wasn't the jury, but the judge that shut down the defense presentations of prior art.

Also found the following in the ArsTechnica story:

The legislative overburden spread on both patent and copyright law stifles new ideas and unjustly enriches the maggots and termites of our society.

12 posted on 01/28/2013 11:51:42 AM PST by brityank (The more I learn about the Constitution, the more I realise this Government is UNconstitutional !!)
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To: brityank; TigersEye; Marine_Uncle; justa-hairyape; SierraWasp; NormsRevenge; Grampa Dave; onyx; ...
Thanks for adding that....info.

I need some stuff and I can get it at Newegg....guess I should reward them for taking a stand.

13 posted on 01/28/2013 12:31:10 PM PST by Ernest_at_the_Beach ((The Global Warming Hoax was a Criminal Act....where is Al Gore?))
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