“At Newegg, we’ve always believed paying off extortionists only encourages more extortion, and there had to be a negative consequence of suing Newegg without just cause. We insisted on seeking a return of our legal fees from Site Update Solutions. [Their] demand that we waive our right to seek fees for dropping a lawsuit that should not have been filed in the first place was outrageous. What a joke. We believe that trying to make a patent troll pay, no matter what amount, sends the clearest possible message to all abusive patent asserters and their contingency fee lawyers that if they file a frivolous lawsuit against Newegg, they will suffer some consequence, even if it is only making less money or having to do more work than they planned to. This case also provides an excellent template for how a well-managed and organized joint defense effort allows participants to not just bask in the glow of beating a patent troll, but also save money compared to paying off a patent troll. We hope that our work will provide a beacon of hope for real innovators and honest entrepreneurs facing demands from abusive patent asserters. We want to encourage other defendants to create as much friction as possible, rather than feeding the beast with easy settlement checks.”
–Lee Cheng, Newegg’s Chief Legal Officer
Newegg is Adafruit’s #1 supplier for anything they sell and we need for our offices. Previous coverage here.