
Ways Startups Can Deal With Patent Troll Demands - iProject
http://techcrunch.com/2012/10/07/10-ways-startups-can-deal-with-patent-troll-demands/
======
tisme
Start-ups generally don't have a problem until they get into the making-money
or getting publicity stage. After that you'll pick up all kinds of parasites,
patent trolls are only one of the many classes these fall into, and they're
not nearly the most frequently encountered ones.

Look out for: rogue angels, investment bankers, bad partners, bad leave co-
founders and so on. Lots of people want a slice of the start-up pie without
pulling their weight.

~~~
StavrosK
What are rogue angels, and why are investment bankers bad?

~~~
tisme
Rogue Angel -> Angel that will use some of their money in order to get a bit
of stock which they then use in a minority shareholder lawsuit in order to try
to leverage that into a larger amount. Start-ups can't have distractions like
that so people that pull that stunt can hold you over a barrel. I've seen this
up close and it isn't pretty.

Investment bankers are not bad by definition, but on the whole they're worth a
lot less than they give themselves credit for. They presume to be an in-
dispensable part of the deal universe but in actual fact they can be as much
of a hindrance as they can be a help. Oh, and they _always_ want to be paid,
even when they don't perform at all.

~~~
StavrosK
I see, thanks. I didn't know about rogue angels, it's too bad such scammers
exist.

------
ericHosick
From time to time, my dad would be asked to answer alleged patent
infringements where he worked. He said he was able to easily deal with them by
looking at the initial claim of the patent and explaining that the initial
claim did X where as they did Y. That was good enough to stop any further
allegations of patent infringement.

This was 20+ years ago. Perhaps, in todays "market", lawyers would still push.

~~~
overbroad
I think there may be some merit to this. The assumption of the patent troll
may be that you will not look at their patents. (They are junk, remember?)
They may just assume you will believe you need to hire a patent attorney and
that the patents cannot even be assessed with so much as a sniff test without
first spending thousands of dollars. And the cost will scare you into
submission.

If you were to call the troll's bluff and go the distance (rare), eventually
your patent litigator that you are paying through the nose is going to be
challenging every possible claim in discussions with the troll's lawyers
before anyone steps foot in a courtroom. Chances of success in court are going
to be considered, and argued. The simple fact is the troll's chances might not
be so great. Why do so many cases settle? The troll only needs to scare you
into settling, and that's all. Mission accomplished.

I'd say the sooner you start asking those questions about the troll's chances,
the more pressure you put on the troll. They have to pay their lawyers, by
asking them to devote time to the matter, to deal with the questions in order
to maintain fear in you. Meanwhile, in asking these questions you haven't had
to pay any lawyers to look at the patents yet. (And they don't necessarily
know that.)

The whole patent trolling system is built on fear and the high expense of
patent litigation. Even for the most bogus patent claims, it can cost
thousands of dollars to have a court declare them as such. Take away that
expense, and the fear of having to pay it, and the trolling business goes
"Pfft."

------
hippich
If I will be small and troll persist - I will close and open new company.

If I will be big and troll persist - I move all operations out of USA except
office with sales people working on a contract.

What troll get from this - nothing. What USA get from this - negative tax
income. What will change for me - employer.

------
abcd_f
Has anyone here on HN been on a receiving end of such letters?

------
kevingadd
"Don’t make it easy for them. Require registration before granting access to
whitepapers, detailed documents, or video tutorials that delve into the
behind-the-scenes details. Think twice about being on customer lists or
advertising the ins and outs of your business, the products you use, etc.,
unless there’s a good business reason for doing so."

This seems like a great way to kneecap your business. Make it hard for
potential customers to evaluate you (so they end up choosing companies that
are more open), make it less likely that you will get positive buzz in tech or
press circles, make it less likely that people will feel confident about your
product as a result of understanding it, and make it harder for new customers
to learn how to use your product. All because you're afraid of patent suits!

