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Small Business Owner Fights Back Against Patent Troll

May 31, 2016

Small Business Owner Fights Back Against Patent Troll

Serial Troll Tries To Extort Money From Mail-Order Business with Frivolous Infringement Claims

West Palm Beach, Florida—The Electronic Frontier Foundation (EFF) filed a lawsuit today against a well-known patent troll that tried to shake down a small business owner for tens of thousands of dollars on bogus claims of infringement on patents that were never used and were expired or invalid.

Defendant Shipping & Transit LLC has filed hundreds of lawsuits asserting frivolous patent infringement claims as part of its business model to intimidate and extort money from people, EFF alleged in a complaint filed with co-counsel Julie Turner of California-based Turner Boyd and Matthew Sarelson with Miami-based Kaplan Young & Moll Parrón. Shipping & Transit sends out letters accusing businesses of patent infringement and demanding thousands of dollars to license the patents or settle the matter. It then routinely sues those who don’t pay up to extort “nuisance value” settlements.

In a lawsuit filed in the U.S. District Court for the Southern District of Florida, EFF is representing Jason Cugle, who last year began running a small business selling accessories for electronic cigarettes. Cugle, a Maryland resident, received a letter accusing his company and website (Triple7vaping.com) of violating Shipping & Transit’s patents, which relate to ideas for monitoring and reporting the status of delivery vehicles. Cugle simply sent customer shipments through the U.S. Postal Service (USPS) and manually emailed each customer a message saying the package had been shipped and providing the USPS tracking number. Florida-based Shipping & Transit claims its patents cover a variety of methods of notifying people when a vehicle is about to reach its destination, including Cugle’s.

“The claims are absurd. Not only did three of the four patents expire two years before Mr. Cugle started his mail order business, they are not valid in the first place and he hasn’t infringed anything,” said EFF Staff Attorney Vera Ranieri. “What is worse, Shipping & Transit tried to force Mr. Cugle to sign a vaguely-worded affidavit swearing that he wasn’t using ‘monitoring systems’ and threatened him with a document that made it look like there was a lawsuit against him, though the complaint wasn’t filed in any court. These are the tactics of patent trolls who hope to intimidate and bully innocent people and businesses into paying them money to avoid the high costs of a lawsuit.”

Shipping & Transit used to be known as ArrivalStar, a notorious patent troll that sued towns and cities claiming that notifying citizens when a bus was due to arrive infringed its patents.

“Filing complaints in bad faith, asserting infringement of unenforceable patents, falsely accusing people of infringing, and abusing the court system to wrangle settlements out of people violate Maryland law,” said Ranieri. “We are asking the court to hold Shipping & Transit accountable for its improper tactics, and also rule that the patents aren’t valid and were not infringed. Shipping & Transit’s baseless patent infringement claims and shady tactics must be stopped.”

For the complaint:
https://www.eff.org/document/cugle-v-shipping-transit

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