Online retailer Newegg has developed a reputation for taking on so-called “patent trolls,” even when that means going through lengthy litigation and unpredictable jury trials.
The company’s last patent trial concluded in November 2013, when Newegg faced off against a patent troll called TQP Development. TQP used US Patent No. 5,412,730 to make a vast claim to basic Internet encryption technologies, saying that anyone using the common combination of SSL and the RC5 encryption algorithm was infringing. By the time of the trial with Newegg, TQP had sued more than 120 companies and earned $45 million in settlement payments.
At trial, a jury ordered Newegg to pay $2.3 million to TQP. But the verdict against Newegg didn’t end the case—and not because it’s stuck in a grinding appeals process. In fact, the case never even advanced to an appeal at all. US District Judge Rodney Gilstrap, who oversaw the trial, has simply never entered a final judgment. He has also given no indication of when he might issue such a judgment, which Newegg needs in order to file an appeal.
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