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This is a dysfunction in the patent and legal processes that cannot be fixed by even more dysfunctional tactics deployed against the NPE. The rules against cha
by drtillberg 9y ago
This is a dysfunction in the patent and legal processes that cannot be fixed by even more dysfunctional tactics deployed against the NPE. The rules against champterty (buying a cause of action) have been relaxed considerably to the extent in many jurisdictions of being a dead letter, and the litigation financing industry seems to have a better sound bite.
At least half of the problem is the "American Rule" of rarely shifting legal fees, which if you dig a bit you will find is of recent vintage. Back in time, for example in Massachusetts, there actually is a law for shifting legal fees as costs as a matter of course; the catch is that the fee is very low (even at the time it was enacted) of about $2.50 per case, which partly reflects inflation and partly antagonism toward legal fees.
I wonder whether a compromise solution would be to require a deposit for costs of a percentage of the demand for recovery like 2.5% of $34mm, which post-suit you could figure how to divvy up. That would make the demand more meaningful, and provide a tangible incentive to the plaintiff to think a little harder about pricing low-probability lottery-ticket-type litigation.