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Legal precedent vs. carpet-bomb patent suits may hurt Lodsys

08/10, 1:25pm

Eon-Net loss may hurt Lodsys too

A recent decision in a patent lawsuit from Eon-Net against Flagstar Bancorp might pose trouble for Lodsys in its own attempts to skim royalties. Discovered today, a ruling late last month hit Eon-Net with Rule 11 sanctions for conducting what was cast as "extortion" through its practices. The company had submitted over 100 infringement lawsuits but each time gave the targets a settlement that would be cheaper than defending the case, effectively forcing companies to pay.

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