The patent troll message is simple, according to Margy Grant, vice president and general counsel for Florida Realtors: “Don’t get sued.” Watch Grant’s video for more information.
ORLANDO, Fla. – Aug. 4, 2015 – Patent trolls don’t sit under bridges or knock on doors – they increase Realtors’ cost of doing business while hiding in the shadows.
Patent trolls are companies that exist mainly to file lawsuits against legitimate businesses. Their weapon is a patent – usually for a minor product, such as one element of software that does automated property appraisals – and their product is a lawsuit filed against real estate companies and other businesses that don’t realize a tiny element of an overall software package has patent problems.
One example: Realtors pay a multiple listing service (MLS) to organize and advertise property, but the National Association of Realtors® (NAR) settled a legal-but-ridiculous patent troll lawsuit for $7.5 million over MLS technology. That money comes out of Realtors’ pockets, even if indirectly.
Patent trolls have filed a lawsuit against 615 Florida companies so far. The average settlement paid by small- to mid-sized companies nationwide: $857,000 if taken to court, $340,000 if settled and $168,000 if fought outside the courts. (Source: Colleen V. Chien, Santa Clara University School of Law)
They settle because patent litigation is one of the most expensive court proceedings in existence, says Margy Grant, vice president and general counsel for Florida Realtors. Even when you win, you lose due to the overwhelming cost of litigating these cases.
Currently, nothing can stop the patent troll industry. Brokers must wait for their daily mail and hope an out-of-left-field patent troll isn’t demanding money.
But there’s hope.
Congress is considering a bill, H.R. 9, that would end frivolous patent troll lawsuits. However, passage isn’t a sure thing.
NAR has issued a Call for Action, which makes it easy for members to contact their personal representatives and ask them to pass H.R. 9. For many lawmakers, a Call for Action shows industry commitment, and 100,000 responses carry more weight than 100.
To take action, click here. NAR’s Call for Action system does the hard work for you – it takes only a few seconds.
© 2015 Florida Realtors®