[IP finance] Just Who is a Patent Troll? Ask VirnetX.

[Mike Mireles]

This blog recently reported on an East Texas jury awarding VirnetX’s over $600 million against Apple.  In a recent interesting article in Corporate Counsel by the Chairman and CEO of VirnetX Kendall Larsen titled, “Are We Patent Trolls? Ask Jason Bourne,” Mr. Larsen complains about the popular press labeling his company a “troll,” and explains why his company is not a “troll.”  First, Mr. Larsen defines a troll as having the following characteristics: “Their patents cover no real invention, no true breakthrough in science or technology[;] They are led by lawyers, not scientists, engineers or technology business executives[;] They neither develop, make nor sell any real products or licensable technology[; and] They assert weak patents — and usually seek nuisance settlements.”  First, Mr. Larsen explains how the venture capital arm of the Central Intelligence Agency paid a contractor to solve a problem covered by the invention— “code named “Net Eraser,” came a simplified zero-click way to enable secure encrypted communications.”  Second, Mr. Larsen explains that his company is not led by lawyers, but scientists, engineers and technology business executives.  Third, Mr. Larsen explains how the “Gabriel Collaboration Suite, a set of integrated applications that enable secure messaging, secure voice and video calling, secure mail and secure encrypted file sharing with any other device,” is used in Google’s Play Store, Apple Apps Store and in Apple’s iMessage.  Notably, he states that, “Current licensees include Microsoft, Aastra, Mitel, NEC, Siemens and Avaya.”  Finally, he notes that his patents have been held valid four times by courts. 

Do you agree with Mr. Larsen’s definition of a troll?  On the IPKat blog, I recently asked whether myth and metaphor are the primary drivers of innovation in intellectual property law.  Co-blogger Neil Wilkof subsequently asked the question of what happened to patent trolls.  Are the trolls still around?  Or, have they been relabeled away?  Does the popular media just need to stop using the term?  What do you think? 

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Posted By Mike Mireles to IP finance on 4/05/2016 11:06:00 pm