FW: Patent trolling issue (All Led, LLC)
Yimei Hammond
Dear CIPLA members and friends,
I have received an email from OSBA—IP section regarding the receipt of a cease and desist letter concerning a seemingly mundane business practice, that being the scanning and transmission of documents by email. They would like to know if you know of other Ohio businesses that receive similar letters, and whether any of you encountered AllLed LLC or Farney Daniels? See the email below for detail.
Best Wishes
Yimei Hammond
Yimei Hammond | Kremblas & Foster | 7632 Slate Ridge Blvd. | Reynoldsburg, Ohio 43068
Office: 614-575-2100 | Fax: 614-575-2149 | Cell: 614-296-2935 | yham...@ohiopatent.com
From: Michael Stith [mailto:mrs...@aol.com]
Sent: Tuesday, May 28, 2013 12:36 AM
To: Michael Stith
Subject: Fwd: Patent trolling issue (All Led, LLC)
Dear Fellow OSBA IPL Section Members.
An OSBA member, Attorney Mike Gutmann of Piqua, contacted me regarding receipt of a cease and desist letter concerning a seemingly mundane business practice, that being the scanning and transmission of documents by email. Mr. Gutmann states that this may be "patent trolling,' and asks whether other Ohio businesses have received similar letters, and for referral to an efficient legal response.
In response, I told Mr. Gutmann that we are aware of patent trolls, that the possible need of a federal court defense is one of many problems encountered with patent trolls, and that I would forward his questions to you. I advised him that my forwarding is only to learn whether you are aware of others who have received such letters from AllLed, LLC out of Wilmington, Delaware, or from a law firm in Texas -- Farney Daniels PC. Mr. Gutmann sent me more information, but that is not included. I seek to provide him information, not legal analysis or representation.
Have any of you encountered AllLed LLC or Farney Daniels?
Thanks,
Mike
Michael R. Stith
Chair, OSBA IPL Section
Begin forwarded message:
From: "Mike Gutmann" <M-Gu...@mffg.net>
Date: May 24, 2013 9:37:53 AM EDT
To: "Michael Stith" <mrs...@aol.com>
Subject: RE: Patent trolling issue (All Led, LLC)
Mr. Stith:
Thank you for the prompt reply.
I have attached to this e-mail a pdf copy of the letters my client received.
Have other Ohio businesses been similarly threatened?
We would like to determine an efficient way to avoid being sued in Federal Court, to threaten or to obtain attorney fees and to determine if sanctions can be issued.
You have permission to share this inquiry among section members.
Thank you,
Michael Gutmann (0020501)
McCulloch, Felger, Fite & Gutmann Co., LPA
123 Market St., PO Box 910
Piqua, OH 45356
From: Michael Stith [mailto:mrs...@aol.com]
Sent: Thursday, May 23, 2013 10:36 PM
To: Mike Gutmann
Subject: Re: Patent trolling issue
Mr. Guttman:
Thank you for asking. Yes, we certainly are familiar with patent trolls, though I can't say whether any of the OSBA IPL Section members have had such issues with the entities cited by your message. We are also familiar with the USPTO infrequently granting patent rights to business methods that are obvious to persons skilled in business practices. (Obviousness is a bar to patentability.)
The allegations made against your client lead me to conclude that all federal and many local courts would be infringers by instructing attorneys to engage in on-line filing, as would all attorneys (including me) who follow the courts' instructions.
I would be glad to forward your inquiry to members of the OSBA IPL Executive Committee, to ask whether they have encountered the cited parties, but first seek your permission to do so. May I?
Mike Stith
Michael R. Stith
Patent Attorney / Attorney at Law
330.873.9550 (phone/fax)
On May 23, 2013, at 5:13 PM, Mike Gutmann wrote:
Mr. Stith:
I am an attorney in Piqua, Ohio and a client of our office, Murray Wells Wendeln & Robinson CPAs, Inc., received a letter from a company identified as AllLed, LLC out of Wilmington, Delaware. This company alleges that MWW&R, a local accounting firm, "appears to be using a patented technology" and is infringing upon the patent which is owned by a client of AllLed, LLC (the alleged patent covers the process of scanning a document and sending it via e-mail). About three weeks later, our clients received a letter from a law firm in Texas -- Farney Daniels PC -- stating that they represent AllLed, LLC and that MWW&R was asked to respond to a notice alleging a patent infringement claimed by AllLed, LLC.
In doing some checking on line, we find that this practice may be part of a scheme known as "Patent Trolling" in which companies buy up patents or allege that obscure patents have been obtained on fairly routine business practices. The "trollers" then send out thousands of letters to small business owners hoping that the owners will simply pay a fee or fine rather than risk a lawsuit with the threat of 'treble damages', attorney's fees and costs.
I contacted the OAG office but they had not received any specific complaints related to this practice.
Does the IPL section have any experience with this matter and how has it been handled?
Thank you for your assistance.
Michael Gutmann (0020501)
McCulloch, Felger, Fite & Gutmann Co., LPA
123 Market St., PO Box 910
Piqua, OH 45356
Yimei Hammond
Hello CIPLA members and friends,
Below is my collective response on this matter. Let me know if you have other thoughts. I will be traveling today until May 9, you can contact Mark Montana MAMo...@ashland.com meanwhile.
Yimei Hammond
Yimei Hammond | Kremblas & Foster | 7632 Slate Ridge Blvd. | Reynoldsburg, Ohio 43068
Office: 614-575-2100 | Fax: 614-575-2149 | Cell: 614-296-2935 | yham...@ohiopatent.com
From: Yimei Hammond
Sent: Thursday, May 30, 2013 7:25 AM
To: 'Michael Stith'
Cc: rmes...@porterwright.com; JSta...@standleyllp.com; 'BRA...@nationwide.com'; 'Hobday, Ken (Dublin)'; gegenh...@battelle.org; Mark A Montana
Subject: RE: Patent trolling issue (All Led, LLC)
Michael,
Both Jeff Standley of Standley Group and Richard Mescher of Porter Wright have hade client receive letters from All Led and Forney Daniels and others. Standley Group is currently representing two clients on this matter. Right now, it appears that both Vermont and Delaware are taking action. From responses I received, bigger companies are not aware of any such letters, but some smaller companies are receiving such letters.
In his email, Richard Mescher recommended not responding to the letter, but reporting it to Ohio Attorney General so that Ohio Attorney General may act on this. Richard mentioned that if any attorney is interested, he can elaborate further, or help out more on this matter. Maybe, we can see if we can have a task force or sub-committee on this issue.
Below is the content of Richard’s response on this matter:
Note that this troll keeps changing its name and there are now dozens of LLC’s with six letter names now sending letters.
They originally were called Project Paperless, then MPH Technology Investment, and then the Laces with six letter names such as All Led. There is known prior art that invalidates their claims. They do not appear to file law suits anymore out of fear of their patent will be invalidated. I think they keep changing their name so that no one will not figure out who they are.
History – Project Paperless, LLC claims that its patents covers anyone who sends a PDF via email from a scanner or copier connected to computer network. Starting in 2012, Project Paperless, LLC began sending thousands of cease and desist letters to small companies having a scanner or copier and typically demanding $900 to $1,200 per employee. It has filed very few lawsuits. In August of 2012, Project Paperless, LLC voluntarily dismissed its lawsuit against BlueWave Computing when the defendant refused to settle and brought counterclaims attacking the validity of the patents. The cease and desist letters then began coming from a large number of companies with six letter names such as AzPro, DucPla, GosNel, JitNom etc. which appear to divide the country into regions.
Recent Activity – It appears the “alphabet soup” companies continue to send thousands upon thousands of cease and desist letters to small businesses. No new infringement lawsuits appear to have been filed in 2013. The Attorney General of the state of Delaware has brought charges against MPHJ.
If you Google “Project Paperless” or MPHJ Technology” you will see more info. In my opinion, it is a mistake to respond to them in any way.
Hope this helps.