Newegg just bitch slapped some patent trolls!

newtekie1 · Jan 28, 2013, 09:27 PM

http://arstechnica.com/tech-policy/2...online-retail/

Soverain Software is a sham company that lives solely on the revenue generated by suing other companies for patents that they claim they own on all "shopping cart" technology used on all online retail websites. They sued pretty much all the big names including Amazon, Best Buy, Nordstrom's, Macy's, Home Depot, RadioShack, Kohl's and the list goes one. Just in the case of Amazon Soverain received over $40 Million. They have sued nearly 50 companies.

Most companies settled with Soverain, but Newegg isn't most companies. Newegg has a company policy to not settle with any patent trolls. Ever. So in 2010 Soverain's lawsuit against Newegg went to trial. The trial lasted less than a week and Soverain seemed to win, with the Jury ordering Newegg to pay Soverain $2.5 Million, a fraction of what they asked for, as well as a 1% royalty on all revenue Newegg processed through their website.

But Newegg didn't give up, they appealed the ruling, and on Jan. 23 2013 the court ruled that not only was Newegg not infringing on Soverain's patents, but that Soverain's patents were invalid. This effectively puts an end to Soverain's ability to patent troll online retailers. And at the same time invalidates many other settlements Soverain has made with other retailers.

So everyone go out and buy a piece of hardware from newegg, because they rock! I wish more large companies would take their stance of never giving in to patent trolls.

TheMailMan78 · Jan 28, 2013, 09:29 PM

I just patent the term "patent trolls". You owe me five bucks newtekie1.

remixedcat · Jan 28, 2013, 09:31 PM

Soverain sounds like some shady company in the middle east or some crap like that.

Their website looks like one of those placeholder squatter for a domain sites too.

Good job NewEgg! 5 eggs fo sho!

hat · Jan 28, 2013, 09:31 PM

Watch out, the Post Office may sue you for using the patented name "mailman".

AsRock · Jan 28, 2013, 09:37 PM

So will this give places like Amazon the option to sue them ?, i surly hope so. then some one might have to sell some patents haha.

newtekie1 · Jan 29, 2013, 12:36 AM

Quote:

Originally Posted by AsRock

So will this give places like Amazon the option to sue them ?, i surly hope so. then some one might have to sell some patents haha.

I don't believe they can go back and sue Soverain to get money back that they've already paid to them, but I could be wrong about that. However, anyone that had royalties included in their settlement can now stop paying those, and anyone currently paying on a settlement amount can stop paying as well. Also, any companies that are currently being sued by Soverain can now easily have their cases dismissed.

nt300 · Jan 29, 2013, 12:54 AM

Umm, I invented the "shopping cart" technology back in 1983. We sold that tech to Soverain Software in 1986 for approx $175,000. At the time we thought that was good money

AphexDreamer · Jan 29, 2013, 12:59 AM

Who has the patents on patenting?

Irony · Jan 29, 2013, 01:16 AM

Me.®

Patent pending

Wrigleyvillain · Jan 29, 2013, 01:21 AM

lol this story was even more interesting and amusing to me as my Dad was indirectly involved with this Divine Interventures back when and probably at least knows that woman's name. Unlike this company, it was not a sham but sure never panned out to anything (and not fully due to dot-com bust bad timing either).

Best quote: We took a look at this and said "this is bullshit".

newtekie1 · Jan 29, 2013, 01:49 AM

Quote:

Originally Posted by AphexDreamer

Who has the patents on patenting?

Probably Apple.

Quote:

Originally Posted by Wrigleyvillain

Best quote: We took a look at this and said "this is bullshit".

Yeah, I loved that.

Jetster · Jan 29, 2013, 02:43 AM

Great Article. I love NE

There are a bunch of pending cases that will get thrown out now

Frag Maniac · Jan 29, 2013, 03:05 AM

What about the companies that already settled, are they just suckers that can't get that money back? Surely Amazon and others should take Soverain to court and use this ruling as an argument. Time to take Soverain for all they're worth, then leave them at the side of the road like the thieving hitch hikers they are.

syeef · Jan 29, 2013, 03:47 AM

Stupid people and their stupid patents... Cavemen should have patented everything, from breathing to dying!

Jan 28, 2013, 09:27 PM	#1
newtekie1 Semi-Retired Folder Join Date: Nov 2005 Location: Indiana Posts: 17,756 (6.48/day) Thanks: 780 Thanked 5,118 Times in 3,708 Posts System Specs	Newegg just bitch slapped some patent trolls! http://arstechnica.com/tech-policy/2...online-retail/ Soverain Software is a sham company that lives solely on the revenue generated by suing other companies for patents that they claim they own on all "shopping cart" technology used on all online retail websites. They sued pretty much all the big names including Amazon, Best Buy, Nordstrom's, Macy's, Home Depot, RadioShack, Kohl's and the list goes one. Just in the case of Amazon Soverain received over $40 Million. They have sued nearly 50 companies. Most companies settled with Soverain, but Newegg isn't most companies. Newegg has a company policy to not settle with any patent trolls. Ever. So in 2010 Soverain's lawsuit against Newegg went to trial. The trial lasted less than a week and Soverain seemed to win, with the Jury ordering Newegg to pay Soverain $2.5 Million, a fraction of what they asked for, as well as a 1% royalty on all revenue Newegg processed through their website. But Newegg didn't give up, they appealed the ruling, and on Jan. 23 2013 the court ruled that not only was Newegg not infringing on Soverain's patents, but that Soverain's patents were invalid. This effectively puts an end to Soverain's ability to patent troll online retailers. And at the same time invalidates many other settlements Soverain has made with other retailers. So everyone go out and buy a piece of hardware from newegg, because they rock! I wish more large companies would take their stance of never giving in to patent trolls. __________________ Rig1: System Specs. Rig2: A8-5600K@4.4GHz / AsRock FM2A75 Pro4 / 8GB Corsair DDR3-1600 9-9-9-24 / HD7560D / Samsung DVD-Burner / 1.5TB WD Green + 3x3TB WD RED in RAID5 Rig3: Athlon X2 4200+ / M4A79 Deluxe / 4GB G.Skill Pi DDR2-800 4-4-4-12 / GT430 / Sony DVD-Burner / 500GB WD Rig4: Phenom II x6 1605T @ 3.6GHz / Asus M5A99X Evo / 8GB PNY DDR3-1600 9-9-9 / GTX470 & GTX470 / Samsung DVD-Burner / 1.5TB Seagate

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Jan 28, 2013, 09:31 PM	#3
remixedcat Join Date: May 2010 Posts: 1,189 (1.07/day) Thanks: 765 Thanked 250 Times in 192 Posts System Specs	Soverain sounds like some shady company in the middle east or some crap like that. Their website looks like one of those placeholder squatter for a domain sites too. Good job NewEgg! 5 eggs fo sho! __________________ System:Intel i5 3570K @ 3.4Ghz//ASRock Z77 Pro3//Coolemaster Hyper 212 Evo//16GB Corsair XMS3//EVGA Nvidia GTX 650Ti SSC 1GB//128GB Samsung 840 SSD/1.5TB Seagate HDD//Antec Three Hundred Two//620w Antec High Current Gamer HCG-620M//Windows Server 2012 x64 Standard Misc:Samsung SyncMaster P2350 23in@1920x1080+LG Flatron 19in 1440x900//IoSafe Fireproof ext 500GB HDD//Amped Wireless R20000G high power router//APC BackUPS XS1000 UPS Websites: AGNXNetworks//RemixedCat's Place Of Meow Blog

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Jan 28, 2013, 09:29 PM	#2
TheMailMan78 Banstick Dummy Join Date: Jun 2007 Location: Crystal River, FL Posts: 15,111 (6.92/day) Thanks: 1,337 Thanked 6,834 Times in 3,741 Posts System Specs	I just patent the term "patent trolls". You owe me five bucks newtekie1.

Jan 28, 2013, 09:31 PM	#4
hat Maximum Overclocker Join Date: Nov 2006 Location: Ohio Posts: 12,236 (5.15/day) Thanks: 2,054 Thanked 2,039 Times in 1,549 Posts System Specs	Watch out, the Post Office may sue you for using the patented name "mailman". __________________ My Heatware “Inb4 smartphone LN2 overclocking.” -radrok

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Jan 28, 2013, 09:37 PM	#5
AsRock TPU addict Join Date: Jun 2007 Location: US\ Uk Born Posts: 8,796 (4.07/day) Thanks: 1,677 Thanked 1,348 Times in 1,170 Posts System Specs	So will this give places like Amazon the option to sue them ?, i surly hope so. then some one might have to sell some patents haha.

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Jan 29, 2013, 12:54 AM	#7
nt300 Join Date: Jan 2010 Location: Toronto, ON. Canada Posts: 731 (0.60/day) Thanks: 628 Thanked 160 Times in 99 Posts System Specs	Umm, I invented the "shopping cart" technology back in 1983. We sold that tech to Soverain Software in 1986 for approx $175,000. At the time we thought that was good money __________________

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Jan 29, 2013, 12:59 AM	#8
AphexDreamer Eligible for custom title Join Date: Jun 2007 Location: C:\Program Files (x86)\Aphexdreamer\ Posts: 5,614 (2.59/day) Thanks: 812 Thanked 888 Times in 674 Posts System Specs	Who has the patents on patenting? __________________ Sent from my PC using chrome.

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Jan 29, 2013, 01:16 AM	#9
Irony Join Date: Sep 2011 Location: COC WhiterunOrigin Posts: 986 (1.62/day) Thanks: 372 Thanked 243 Times in 197 Posts System Specs	Me.® Patent pending __________________ My Heatware When life gives you lemons, burn Life's house down.

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Jan 29, 2013, 01:21 AM	#10
Wrigleyvillain Join Date: Oct 2007 Location: Chicago Posts: 4,506 (2.20/day) Thanks: 1,526 Thanked 1,578 Times in 1,121 Posts System Specs	lol this story was even more interesting and amusing to me as my Dad was indirectly involved with this Divine Interventures back when and probably at least knows that woman's name. Unlike this company, it was not a sham but sure never panned out to anything (and not fully due to dot-com bust bad timing either). Best quote: We took a look at this and said "this is bullshit". __________________ “i dont care what consoles have they dont have mouse and keyboard” -crazyeyesreaper

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Jan 29, 2013, 02:43 AM	#12
Jetster Join Date: Jan 2010 Location: Oregon Posts: 2,880 (2.35/day) Thanks: 941 Thanked 866 Times in 633 Posts System Specs	Great Article. I love NE There are a bunch of pending cases that will get thrown out now

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Jan 29, 2013, 03:05 AM	#13
Frag Maniac Join Date: Nov 2010 Posts: 1,435 (1.55/day) Thanks: 10 Thanked 243 Times in 210 Posts System Specs	What about the companies that already settled, are they just suckers that can't get that money back? Surely Amazon and others should take Soverain to court and use this ruling as an argument. Time to take Soverain for all they're worth, then leave them at the side of the road like the thieving hitch hikers they are.

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Jan 29, 2013, 03:47 AM	#14
syeef Banned Join Date: Jul 2008 Location: Dhaka, Bangladesh Posts: 280 (0.16/day) Thanks: 151 Thanked 70 Times in 54 Posts System Specs	Stupid people and their stupid patents... Cavemen should have patented everything, from breathing to dying!

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