EFF: Federal Circuit Overturns Fee Award In Crowdsourcing Patent Case
Federal Circuit Overturns Fee Award In Crowdsourcing Patent Case Patent trolls know that it costs a lot of money to defend a patent case. The high cost of defensive litigation means that defendants are pressured to settle even if the patent is invalid. Fee awards can change this calculus and give defendants a chance to fight back against weak claims. A recent decision [PDF] from the Federal Circuit has overturned a fee award in a case involving an abstract software patent on crowdsourcing. This disappointing ruling may encourage other patent trolls to file meritless cases. Patent troll AlphaCap Ventures claimed that its patent covered various forms of online equity financing. It filed suit against ten different crowdfunding platforms. Most of the defendants settled quickly. But one defendant, Gust , fought back. After nearly two years of litigation in both the Eastern District of Texas and the Southern District of New York, AlphaCap Ventures dismissed its claim against Gust. Th...