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But doesn't the shell company have to OWN the IP/patent in order to sue? If they lose and can't pay, then transfer the patent to the defendant. Guess it still doesn't completely stop the trolls... Definitely need some bonding.



If they lose the case, then the IP/patent is likely worthless.

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Not necessarily. They can have a "we're allowed to sue on your behalf" agreement with the owner. Also, the patent owner could sell it to them for $5K, wait a couple of years, claim that the value has ballooned to $2T, and let them sue.

(Oh, patent owner also owns troll, but you can't know that without spending a few hundred K$)

And if they lose, the patent apparently is worthless, so not much help there.

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I assumed that something similar to the RightHaven copyright case might stick... since the troll company doesn't/wouldn't own the IP then they wouldn't have standing to sue...

http://arstechnica.com/tech-policy/2012/03/judge-orders-fail...

http://www.wired.com/threatlevel/2010/09/righthaven-sham/

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