US: NY reaches patent troll settlement as bill mulled in Senate

New York’s Attorney General Eric Schneiderman reportedly reached a civil settlement with Delaware-based MPHJ Technology Investments in what reports call a win in the fight against patent trolls.

The settlement was reached as a bill aimed at more transparency in patent infringement litigation is being considered by the US Senate after passage in the House of Representatives.

Reports say AG Schneiderman’s settlement is a call for new policies to curb the abuse of patent trolls, which look to acquire licensing fees through suing the companies that use their patents. In a statement on the case with MPHJ, AG Schneiderman said that patent-troll abuse has “become a scourge on the business community,” and that the agreement reached “will put an end to some of the most abusive tactics by placing the industry on notice that these deceptive practices will not be tolerated in New York.”

According to reports, MPHJ is accused of acquiring various computer architecture patents for a single dollar in 2012, then creating 100 subsidiaries that proceed to threaten companies with lawsuits unless they negotiated to license those patents for a fee. The settlement will force the company to reveal which firms it targeted, among other agreements.

The official is not the first state Attorney General to tackle patent trolls. Other states, as well as the Federal Trade Commission, are probing the effects of patent trolls on competition and innovation.

Full Content: Reuters

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