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New Egg losing one case and potentially having to pay out millions is devastating. Worse than that, winning a patent lawsuit costs NewEgg about a million dolla
by WildUtah 13y ago
New Egg losing one case and potentially having to pay out millions is devastating.
Worse than that, winning a patent lawsuit costs NewEgg about a million dollars. There is no loser-pays rule in the USA and you have to fight your case in both district court (probably the inconvenient and biased East Texas district) and appeals court in DC. Losing costs that million dollars and whatever penalty and fine they are assessed.
What do you do as a startup if one of these companies targets you?
If they want cash, you pay it. If they want you out of business so that they can have the field to themselves, you either quit or sell out to a larger company that can fight.