‘Patent trolls’ file lawsuits against public transit agencies

"Patent trolls"—which exist solely to collect patents and then sue legitimate companies who try to use the intellectual property—have cost businesses thousands in litigation costs. But recent reports show that they are also a scourge on the public sector.

At least 23 public transit agencies in U.S. cities are facing lawsuits for allegedly infringing upon the intellectual property of patent trolls, according to an article in the Washington Post. The American Public Transportation Association (APTA) told the news source that it was aware of 11 formal lawsuits as well as numerous other threats.

The allegations involve GPS-tracking systems, which the transit companies use to monitor their vehicles and alert riders of approaching buses and trains. Several companies, including the Luxembourg-based ArrivalStar S.A. and the British Virgin Islands-based Melvino Technologies Ltd., are claiming that they hold the rights to this technology.

"ArrivalStar has licensed its technology to over 180 companies," read a letter sent by the company. "Although many of these licenses were granted in settlement of patent infringement actions filed by ArrivalStar, many resulted from amicable business negotiations."

However, James LaRusch, chief counsel for the APTA, denied that any of the plaintiff companies have a claim to royalties.

"They don't develop anything," he said. "They don't produce anything. Their reason for being appears to be simply to file claims against people who go out and create things."

If patent trolls are willing to take on public agencies as well as private businesses, companies would be wise to protect themselves. A Phoenix small business attorney can help business owners prepare for these types of lawsuits.

Categorised in: Intellectual Property Law

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