Last week, Newegg closed the books on another victory over patent trolls. A company that falsely claimed that its patent covered SSL and RC4 encryption—a common security facet used in e-commerce websites—sued over 100 companies and raised $45 million before taking on Newegg. Thankfully, our team, led by our great CLO Lee Cheng, ended this nonsense.
Patent trolls are not a new phenomenon; although in 2015, trolls have backlogged the legal system more so than years past.
These types of frivolous lawsuits prey on small businesses who choose to pay out settlements to patent trolls instead of incurring the cost of litigation. “Their math says that it always costs less to give them the money they demand than to mount a legal defense,” Cheng says. “There are a number of different troll “species,” and bottom feeders literally send thousands of claim letters out or file hundreds of lawsuits.”
Thankfully, there is one less troll making the rounds bullying small businesses. NeweggBusiness will celebrate the win with a 24-hour victory sale, using the settlement cash to fund deep discounts on tech items such as:
- Surface Pro 3
- Mushkin solid-state drives
- HGST Deskstar NAS drives
- ABS N-Series Desktop PCs … and much more.