In a decision on April 29th 2014, the Supreme Court gave judges the power to make patent trolls pay a fee in egregious cases of litigating. This is hugely important because there is finally a deterrent for those non-practicing entities, or patent trolls, who just buy up patents and don't use them for anything except to sue other companies and make money. This is a blatant abuse of the legal system for profit, so the impact of this ruling will be overwhelmingly beneficial.
This ruling is definitely a departure from the older American system, and actually closer to the English system, wherein unsuccessful litigants must pay the legal feels of both sides. Similarly, this ruling held that "the law offers an award of attorneys' fees," in the situation where the litigant is not successful in proving his case. This is supposed to attach a cost to recklessly litigating against people without legitimate claim of patent violation.
However, there is one caveat attached to the ruling, which may undermine the effectiveness of this case. The decision did allow for a penalty for unsuccessful litigants, but only in "extraordinary cases." This was coupled with the fact that the Federal Circuit court ruled that these fees could only be awarded if it was proven that the claim was "objectively baseless" and "in bad faith." It is therefore undeniable that an extremely high bar has been set before these patent trolls can actually be penalized for their reckless behaviors which are exploiting the legal system.
Source: http://www.forbes.com/sites/danielfisher/2014/04/29/patent-trolls-face-higher-risks-as-supreme-court-loosens-fee-shifting-rule/
This ruling is definitely a departure from the older American system, and actually closer to the English system, wherein unsuccessful litigants must pay the legal feels of both sides. Similarly, this ruling held that "the law offers an award of attorneys' fees," in the situation where the litigant is not successful in proving his case. This is supposed to attach a cost to recklessly litigating against people without legitimate claim of patent violation.
However, there is one caveat attached to the ruling, which may undermine the effectiveness of this case. The decision did allow for a penalty for unsuccessful litigants, but only in "extraordinary cases." This was coupled with the fact that the Federal Circuit court ruled that these fees could only be awarded if it was proven that the claim was "objectively baseless" and "in bad faith." It is therefore undeniable that an extremely high bar has been set before these patent trolls can actually be penalized for their reckless behaviors which are exploiting the legal system.
Source: http://www.forbes.com/sites/danielfisher/2014/04/29/patent-trolls-face-higher-risks-as-supreme-court-loosens-fee-shifting-rule/
Hi Akshay! I am glad that the Supreme Court gave judges the power to make patent trolls pay a fee and hopefully this will deter these non-practicing entities! I think this was a very necessary move, since the overall goal is to not abuse the system and promote a healthy competition. Do you happen to know what the fee is (approximately)? And what factors it depends on?
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