Newegg’s Chief Legal Officer Lee Cheng: “Faced with its first real opposition… MacroSolve folded like a cheap suit.”
MacroSolve is a company that got a lot of (generally negative) attention when it turned full-blown “patent troll” in 2011, suing dozens of companies (including small app development shops) over patent No. 7,822,816, which it claims covers using questionnaires on a mobile app.
Now, a coalition of defendants led by Newegg and Geico Insurance has stopped MacroSolve in its tracks. MacroSolve has dismissed all remaining cases, and it has admitted that it can’t proceed to go forward with a trial that was scheduled to take place this June in East Texas.
MacroSolve was able to “extort over $4M from over 60 defendants,” Newegg Chief Legal Officer Lee Cheng wrote in a victory e-mail to his coalition. Last year, Newegg began to organize the final group of MacroSolve defendants, urging them to band together and stop paying MacroSolve, which was generally demanding between $50,000 to $100,000 to settle a lawsuit. (Those demands are on the low side for patent troll settlements; five-figure settlements are considered to be in the “nuisance” range.)
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