
CryptoPeak Solutions, a virtually unheard Texas business, launched nearly 70 lawsuits against companies such as AT&T, Yahoo, Netflix, GoPro, Sony, Pinterest and Groupon claiming ownership of a patent on secure web connections, for instance the one that have a URL starting with https instead of http. This is the latest sensational case of a patent troll, meaning a company that exists for the sole purpose of obtaining money by using software patents.
The lawsuits filed by CryptoPeak Solutions in recent days are part of a peak of more than 200 cases related to the deadline of November 30. On December 1, in the USA a new law came into force that places some restrictions in cases related to patents that require to provide more information on the alleged violations.
It’s a new law that will hopefully help to stem the phenomenon of patent trolling. Companies such as CryptoPeak, however, acted in the last days when it was possible to sue someone without providing specific claims for the alleged violations of its patents.
In the lawsuit filed by CryptoPeak, the alleged breach concerns patent number 6,202,150, granted in 2001, with claims for damages and royalties for the use of secure connections. In principle, anyone owning a website that uses a secure connection might get sued. Needless to say, the lawsuits were filed against very rich companies.
The text of the patent invoked by CryptoPeak is very technical and there is a risk that in a lawsuit enough similarities are found with the algorithm of secure connection used by websites to allow this patent troll to win it. In that case, the company might decide to demand money from other website owners that use a secure connection.
At least some of the companies sued by CryptoPeak decided to fight back. It’s difficult to say if the law that took effect in the USA at the beginning of December will prevent further cases of this kind. As long as the American laws allow to obtain software patents and use them as weapons to get money patent trolls will exist.