4 ms·

It is called "piercing the veil" - go after the assets of the individuals running a shell company to limit their liability. It is possible but not easy to do if

It is called "piercing the veil" - go after the assets of the individuals running a shell company to limit their liability. It is possible but not easy to do if they structure and operate the "company" properly. You would spend a lot of money trying to get them to pay...

beagle3 14y ago
Furthermore, if you do it in a series of shells in different jurisdictions (think countries and continents, not just states), it becomes effectively impossible to pierce - it can cost millions or even tens of millions to pierce a series of 50 companies, even though setting them up and maintaining them can be done for as little as $100K.
- jrs235 14y ago
  But doesn't the shell company have to OWN the IP/patent in order to sue? If they lose and can't pay, then transfer the patent to the defendant. Guess it still doesn't completely stop the trolls... Definitely need some bonding.
  - benmanns 14y ago
    If they lose the case, then the IP/patent is likely worthless.
  - beagle3 14y ago
    Not necessarily. They can have a "we're allowed to sue on your behalf" agreement with the owner. Also, the patent owner could sell it to them for $5K, wait a couple of years, claim that the value has ballooned to $2T, and let them sue. (Oh, patent owner also owns troll, but you can't know that without spending a few hundred K$) And if they lose, the patent apparently is worthless, so not much help there.
    - jrs235 14y ago
      I assumed that something similar to the RightHaven copyright case might stick... since the troll company doesn't/wouldn't own the IP then they wouldn't have standing to sue... http://arstechnica.com/tech-policy/2012/03/judge-orders-failed-copyright-troll-to-forfeit-all-copyrights/ http://arstechnica.com/tech-policy/2012/03/judge-orders-fail... http://www.wired.com/threatlevel/2010/09/righthaven-sham/ http://www.wired.com/threatlevel/2010/09/righthaven-sham/

beagle3 14y ago

Furthermore, if you do it in a series of shells in different jurisdictions (think countries and continents, not just states), it becomes effectively impossible to pierce - it can cost millions or even tens of millions to pierce a series of 50 companies, even though setting them up and maintaining them can be done for as little as $100K.

jrs235 14y ago
But doesn't the shell company have to OWN the IP/patent in order to sue? If they lose and can't pay, then transfer the patent to the defendant. Guess it still doesn't completely stop the trolls... Definitely need some bonding.
- benmanns 14y ago
  If they lose the case, then the IP/patent is likely worthless.
- beagle3 14y ago
  Not necessarily. They can have a "we're allowed to sue on your behalf" agreement with the owner. Also, the patent owner could sell it to them for $5K, wait a couple of years, claim that the value has ballooned to $2T, and let them sue. (Oh, patent owner also owns troll, but you can't know that without spending a few hundred K$) And if they lose, the patent apparently is worthless, so not much help there.
  - jrs235 14y ago
    I assumed that something similar to the RightHaven copyright case might stick... since the troll company doesn't/wouldn't own the IP then they wouldn't have standing to sue... http://arstechnica.com/tech-policy/2012/03/judge-orders-failed-copyright-troll-to-forfeit-all-copyrights/ http://arstechnica.com/tech-policy/2012/03/judge-orders-fail... http://www.wired.com/threatlevel/2010/09/righthaven-sham/ http://www.wired.com/threatlevel/2010/09/righthaven-sham/