The Fight Against NPEs, 1 Year After TC Heartland

By Rachel Wolbers and Jonathan Stroud ( June 11, 2018, 3:34 PM EDT) -- If you asked your average American about Marshall, Texas, they'd likely picture dusty saloons nestled between long-dormant oil rigs. But for many startup companies and most patent lawyers, Marshall brings something else to mind: nonpracticing entities. NPEs — pejoratively, trolls — purchase and sue others in search of quick settlements, a practice lucrative enough to land many of them on the NASDAQ and in the Fortune 500, with suits resulting in millions of dollars in profits. The U.S. District Court for the Eastern District of Texas, with streamlined local patent rules, extensive discovery and quick jury trials, has become their forum of choice. After years of hosting thousands of patent suits (at its peak, roughly half of all such suits in the U.S.), it has gained a well-documented and well-earned reputation. M​arshall features an​ ice rink once sponsored by Samsung Electronics Co. Ltd., empty office buildings that are home to hundreds of litigious limited liability companies, and hotels that cater to defense attorneys flown in for weeks at a time to defend suits....

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