Friday, November 7, 2014

FTC Settlement Bars Patent Assertion Entity Deceptive Patent Licensing Effort

On November 6, 2014, the FTC announced that MPHJ Technology Investments, LLC, and its law firm reached a settlement that barred the patent assertion entity from sending letters making phony claims in licensing its patents and that each letter in the future would cost $16,000.

As background, MPHJ Technology had purchased patents that purported to cover network scanning then sent letters to more than 9,000 small businesses claiming they likely infringed and faced an infringement lawsuit if they failed to purchase a license. The letters gave a two-week deadline and included a complaint ready to file in closest federal court, but no complaints were filed and no preparation was made to file the complaints. This is the FTC first action against a "patent assertion entity."

For details see the agreement and consent order, the other FTC documents, and the FTC press release.

Also see Mr. Joe Mullin's FTC ends first case again a "patent troll" with a slap on the wrist - MPHJ owner Jay Mac Rust won't pay a fine, can sue all he likes.

Copyright © 2014 Robert Moll. All rights reserved.