Patent trolls take on newspapers
Now they have taken on media companies, particularly one of America's major newspapers. "The New York Times is in a legal battle with two such patent trolls, one of which is Helferich Patent Licensing LCC. The Chicago-based firm claims to have a patent for texting on cell phones. Media companies use it extensively to send text messages to customers .
The second big battle is around the "Autocomplete" feature (the dictionary suggests a word when the user enters several letters). A troll called Boadin Technologies LLC is chasing "The Times," "Bloomberg," "USA Today" and other newspapers over the same feature.
Normally, a "racketeering firm" would be satisfied with $750,000 in compensation, the kind of money several dozen companies, including the likes of Apple and Disney, have already paid. Such troll demands put companies like The New York Times in a difficult position. Patents often turn out to be a bluff, but it would take millions to prove it in court, so it's cheaper to just pay. If the company pays, the troll uses the money he receives to "scam" other companies.
Although patents are supposed to act as a stimulant for invention, they are increasingly being used as a feeder for companies that do nothing. The problem is exacerbated by the fact that the U.S. Patent and Trademark Office grants patents on everything, including the absurd.