When targeted by a patent troll, companies normally are faced with one of two options. The first being succumbing to the NPE's demands and paying a hefty fine or royalty. This is the more frequently seen course of action. The second option is for the company to bring the patent litigation issue to court, a extremely costly and time consuming act that deters most firms. But not Chris Hulls, founder and CEO of the company Life360 who successfully fought and won against a patent troll. He attributes his success to 4 key steps.
"Go Nuclear"
Patent trolls hate being accused publicly. 90% of the threat a patent troll poses is in the initial intimidation of their accusation. The majority of the time firms simply bow down to their demands. Mr. Hulls however directly combated the patent troll head on, publicizing AGIS. Inc, the patent troll's law firm, to both the media and industry, negating much of the patent trolls intimidation presence.
"Share Information and Resources"
Life360 was not alone in their battle against AGIS. Inc. Crowdsourcing all of the information from the tech community, Life360 announced free legal support for another tech startups with less than $25 million in funding who had also been targeted by AGIS. This initiative solved two purposes. First, it drew even more attention to AGIS's cases and the meritless claim against Life360. Secondly, it sent a strong message to both the startup and NPE industry, that Life 360 will not only stand up for itself, but for others as well.
"Go with your gut and commit to it"
As a entrepreneur, or a CEO of a fledgling startup, it can often be hard to justify a combative course of action. But in the end, you always have to remember you are fighting the good fight. "There were some advisors who encouraged me to settle, so I wouldn't have this costly distraction," but Chris Hulls ignore his advisors and took AGIS head on, eventually winning the settlement. You are far less likely to become a target if you have a prior record of victory against patent trolls. Keep victory in site, know what you are fighting for, and give it 100%.
Hola Christopher! Thanks for sharing the patent weapons :-) By the way, maybe you did not noticed, but you said there are 4 key steps to reach success but you only mentioned 3. Good stuff, keep it up :-)
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