Second state cracks down on patent-wielding “scanner trolls”

One of the most notorious "patent trolls" out there right now, MPHJ Technology Investments, is asking small businesses for $1,000 per worker just for using scanners. And they're doing it in smaller states that aren't used to seeing many patent threat letters.

That situation has caused major blowback from those states. The Vermont attorney general sued MPHJ in May, saying the company's letter-writing campaign was violating Vermont consumer protection laws.

Now a second state is going after MPHJ and its go-to law firm, Texas-based Farney Daniels. The Nebraska attorney general has published a cease-and-desist letter it sent to Farney Daniels telling the firm to lay off the Cornhusker state or else. No more infringement demands should be made until the attorney general gets a chance to investigate, the letter says. Farney Daniels has been ordered to hand over all information related to Nebraska patent enforcement for all of its clients since January 2010.

"‘Patent trolls’ make egregious threats with little or no valid legal purpose to gain fast money,” said Nebraska Attorney General Jon Bruning in a statement accompanying the letter, which went out last week.

The focus appears to be similar to the focus in the Vermont lawsuit. Essentially, if the MPHJ demand letters said things that were "unfair or deceptive" in order to get target companies to pay up, it may have violated Nebraska state consumer protection laws.

Farney Daniels has until August 19 to comply with the information demands in Nebraska. Until then, they need to lay off the state, says Nebraska Attorney General Jon Bruning



http://arstechnica.com/tech-policy/2013/07/second-state-cracks-down-on-patent-wielding-scanner-trolls/