Patent trolls are a major problem for small E-commerce sellers, and it is important to know how to deal with them. These are people or companies who misuse patents as a business strategy, often by obtaining patents being sold at auctions by bankrupt companies or by doing just enough research to prove that they had the idea first. This article provides five tips for handling patent trolls.
1. Keep calm and take a deep breath before responding.
Many troll demands will go away before a lawsuit is filed, and it is essential to take a look at the patent and review the lawsuit as quickly as possible to determine if your company is infringing on the patent. If you can form a reasonable belief that your company is not infringing, then do not settle and throw the demand away without fearing what might happen next.
2. Do some research on the patent and the people behind it.
If the patentee is persistent, you have the possibility to check out who is holding the patent, who represents them, or if they have been involved in other litigation. The more information you have, the better you will be able to control the situation. Who is behind the suit can matter as much as the patent they hold? So dig through documents, court dockets, and websites to find out everything you can about the people behind the lawsuit. If they’ve sued before, find out how the story ended, whom the decision-makers are, and whether they are involved in other businesses subject to countersuit. Don’t be shy and call up other targets or their lawyers. This is the best way to get some more leverage in fighting back.
3. Play the bad cop.
It’s time to make your troll sweat by asking very specific questions about the lawsuit. Ask about the patent, the parties involved, the economic interest, and demand detailed explanations regarding how your company supposedly infringes on the patent. Finish them off by demanding a claim chart with an explanation of all the terms. They will feel trapped and discouraged for sure.
4. Put them under the spotlight.
Trolls are like vampires, they don’t like being in the light. They just want your money but definitely don’t want publicity. Write press releases, blog posts, and don’t disregard the power of social media. The important thing is to make your story known. It will help you inhibit the troll but also gather support.
5. Find your allies.
There’s a good chance that you are not the only person being targeted. If this is the case, then you can team up with other companies who are also being sued by the same patent troll. You can reach out to the companies and form a joint defense agreement. The more people you have behind you, the stronger you are. As the old saying goes, the enemy of my enemy is my friend.
It is important to prevent this kind of situation from occurring in the first place. Be careful regarding what you release, always require website visitors to register before giving them access to more detailed information, and make sure you have everything legally documented. It has been estimated that patent trolls cost the economy $29 billion a year. So, if you have never had to face a patent troll before, be prepared.
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