Apple Inc. (NASDAQ:AAPL) and Dell Inc. (NASDAQ:DELL) were lucky to escape hefty fines in legal battles against patent trolls thanks to a judge who sided with the two companies.
The two companies found themselves in a legal battle over a patent for camera technology. The judge presiding over the case sided with Apple and Dell and dismissed the case against them. He also urged the companies to seek compensation for their legal fees. This was an unusual move for the court because it has a reputation of not favoring major firms in such legal battles. The Eastern District of Texas has a history of supporting patent cases and enforcing hefty fines against major technology firms.
Eastern Texas has become an attractive go-to for patent battles, particularly in Tyler and Marshall. These two districts get a third of all the patent battles despite the fact that there are 94 federal districts. According to a former judge, the court is cracking down on patent trolls. These are companies that purchase unused patents and use them to acquire revenue from tech companies. Roughly half of all the major patent verdicts that have been tackled by the judicial system were handed out by jurors in the district.
“The district has been the poster child for the ‘troll problem,”’ stated Leonard Davis, a retired judge who had been posted in the district from 2002 to 2015. He stated that the troll problem is unfair and the court system is trying to find a way to overcome it. Patent trolls have been a big problem for tech companies. This is because they sit on patents and prevent these firms from making progressive technology.
The district court has thrown out hundreds of lawsuits, most through a single ruling. It was previously hard for a defendant to win such cases but thanks to the court’s approach on the matter, defendants have a 60% chance of winning such legal battles.
Apple stock closed the latest trading session at $117.65.