Minda Zetlin, Inc.; Patent Trolls Target Small Businesses With Lawsuit Threats. Here's How One Startup Fought Back
"Why are they targeting small businesses?
For years, these entities made their money by suing or threatening to sue large corporations with deep pockets. This worked well because they could take advantage of the rule that companies can be sued anywhere they do business, and large companies tend to do business in every state. Patent trolls found a few federal court districts where they had greater odds of winning. From their point of view, life was good.
But in May 2017, the Supreme Court issued a ruling that companies could only be sued for patent infringement in the state where they reside. That made collecting much harder for patent assertion entities. Many turned their attention to small companies and startups for which the cost of defending a patent case could pose an existential threat. They began sending letters containing a simple proposition: Pay us a (relatively reasonable) one-time fee and we'll sell you a permanent license and drop our planned lawsuit."
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