Notorious ‘scanner troll’ gets no succor from Federal Circuit

  • 13 August 2014
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This is a bit of good news, which does not seem so common these days.
 

MPHJ Technology ends up exactly where it didn't want to be—in state court.

by Joe Mullin - Aug 13 2014
 
"MPHJ Technology became infamous by sending out thousands of letters demanding $1,000 per worker from small businesses using basic scan-to-email functions. The company says it owns several patents that cover those basic functions, and has sent out more than 10,000 letters demanding payment.
That behavior led MPHJ to be the first patent troll ever to be sued by the government. Vermont Attorney General Bill Sorrell filed a lawsuit against MPHJ in May of last year that accuses MPHJ of making misleading statements in its demand letters and doing "little, if any, due diligence to confirm that the targeted businesses were actually infringing its patents." In addition to targeting a variety of small businesses, MPHJ sent letters to two Vermont nonprofits that help disabled residents and their caregivers."
 
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MPHJ owner Jay Mac Rust won't pay a fine, can sue all he likes.

by Joe Mullin - Nov 7 2014
 
Last year, Congress held a vigorous debate over so-called "patent trolls." One of the poster children repeatedly held up as an example of patent abuse was MPHJ Technology, owned by a Texas lawyer named Jay Mac Rust. Working with the law firm Farney Daniels, Rust sent out more than 9,000 patent demand letters to small businesses around the country, telling recipients that their networked scanner system infringed on MPHJ patents and asking them to pay a royalty of around $1,000 per employee.
Congress ultimately didn't pass a patent reform bill, but MPHJ became mired in legal battles with state and federal authorities. Rust's company was investigated by the Federal Trade Commission, and then it took the surprising step of actually suing the FTC first.
 
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