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"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng

Patent troll Soverain sued 50 different high-profile e-commerce websites over patent infringement (some big names like Amazon, Avon, and Victoria's Secret actually settled for millions with Soverain), alleging that it owned three patents pertaining to digital shopping carts. Early on, the case looked rocky for Newegg, an online technology products retailer, when the judge overseeing the case refused to allow Newegg to argue that the Soverain patent was invalid.

However, on appeal Newegg's legal team was able to trot out prior artwork to help get the patent case defeated. That prior artwork came from 1984 in the form of a magazine ad from CompuServe bragging about an electronic mall. The District Court judge had originally denied the invalidity argument because the judge said there wasn't "sufficient testimony" and that making the argument to the jury would be "very confusing" to them.

Soverain continued to argue that the system CompuServe used didn't include a "product identifier" as its patent defines.  The patent troll also argued that CompuServe's system lacked a "shopping cart database." Those arguments didn't work for Soverain, as a three-judge panel decided that all of the shopping cart patent claims the company made were rendered obvious in the light of CompuServe Mall.


As a result, Soverain won't get the $2.5 million it hoped to snatch from Newegg's bank account. In addition, retailers in currently pending lawsuits will also likely be off the hook to feeding the troll.

Newegg chief legal officer Lee Cheng said in an interview with Ars Technica:
 
We basically took a look at this situation and said, this is bullshit. We saw that if we paid off this patent holder, we'd have to pay off every patent holder this same amount. This is the first case we took all the way to trial. And now, nobody has to pay Soverain jack squat for these patents.
 
Cheng also noted that Newegg decided to fight to the death over this lawsuit versus settling because the company is majority owned by its founder, Fred Chang. There are no shareholders to answer to, so Chang has the long-term prospects of his company in mind rather than short-term gains to temporarily help out the balance sheet.

In his parting words to Ars Technica, Cheng didn’t have many good things to say about what he calls “submarine” trolls – those that lurk under the surface for years, and then hit unsuspecting companies for millions.
 
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.”

Source: Ars Technica



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This makes me all giddy inside!
By Brandon Hill (blog) on 1/28/2013 10:15:44 AM , Rating: 5
quote:
We basically took a look at this situation and said, this is bullshit. We saw that if we paid off this patent holder, we'd have to pay off every patent holder this same amount. This is the first case we took all the way to trial. And now, nobody has to pay Soverain jack squat for these patents.


quote:
Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down! Screw them. Seriously, screw them. You can quote me on that.


I've always liked Newegg, but they rock even more now :)




By HoosierEngineer5 on 1/28/2013 11:04:58 AM , Rating: 5
Deserves a 6.


RE: This makes me all giddy inside!
By dgingerich on 1/28/2013 11:17:40 AM , Rating: 5
This guy needs to run for political office. I want to see a politician with this attitude.


RE: This makes me all giddy inside!
By MrBlastman on 1/28/2013 11:31:56 AM , Rating: 5
We have tons of politicians with that attitude already. They've been saying "screw you" to their constituents for years!


RE: This makes me all giddy inside!
By Argon18 on 1/28/13, Rating: 0
RE: This makes me all giddy inside!
By timothyd97402 on 1/28/2013 1:37:33 PM , Rating: 2
the world seems full of mean spirited, opinionated people who spout off with little regard for facts these days...


RE: This makes me all giddy inside!
By MrBlastman on 1/28/2013 1:49:18 PM , Rating: 3
You mean like the media? Oh, sorry... the government-sanctioned propaganda machine? Wait? What?

One thing is for sure--they spout off with little regard for facts these days...


By HoosierEngineer5 on 1/28/2013 3:01:57 PM , Rating: 2
I thought I was the only one to notice that...


RE: This makes me all giddy inside!
By HoosierEngineer5 on 1/28/2013 3:00:30 PM , Rating: 2
A large number of folks aren't asked to pay anything.


By jimbojimbo on 1/28/2013 5:41:10 PM , Rating: 3
Yeah, those are the registered voters who also don't work and sit around asking for more and more from everybody else that does work. Why work if you can vote someone in that'll give you money for nothing?


By Ammohunt on 1/28/2013 1:35:49 PM , Rating: 2
People with spines its a rare quality in our passive aggressive society. More and more people need to be told to get fucked in order to learn how to get along with others.


RE: This makes me all giddy inside!
By Etsp on 1/28/2013 11:43:40 AM , Rating: 5
Can we get that quote included in the quotes that show up at the bottom of articles?


By Brandon Hill (blog) on 1/28/2013 11:56:47 AM , Rating: 5
Done!


RE: This makes me all giddy inside!
By Motoman on 1/28/2013 2:21:35 PM , Rating: 1
I <3 that. I <3 that a lot.


By Omega215D on 1/28/2013 3:38:53 PM , Rating: 6
Once you know, you Newegg...

Once you troll, you get Newegg'd


RE: This makes me all giddy inside!
By Reclaimer77 on 1/28/2013 4:18:13 PM , Rating: 1
I applaud political incorrectness of all sorts. Bravo to this guy indeed. Just tired of the bullshit with everything, ya know? Love it that this guy just came out and said it how it was, without worrying about softballing it.

Now about Newegg...is it just me or are they getting beat on price for PC components a lot more than usual lately by Amazon and others?


By Master Kenobi (blog) on 1/28/2013 9:12:13 PM , Rating: 2
Yea, Amazon's supply lines seem to be getting better, they are rocking pretty much any market they dabble in now.


By inperfectdarkness on 1/29/2013 2:42:51 AM , Rating: 2
What this says to me is that there's a LOT of benefit to private corporations. I've lost track of how many companies immediately begin down the dark-side once the IPO is up.

Besides, how many non-government, private corporations have defaulted on pension/benefits promises, as opposed to public ones?


RE: This makes me all giddy inside!
By mars2k on 1/29/2013 11:22:56 AM , Rating: 2
So cool, now we need to see someone do this to Apple


"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins











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