When a California-based startup called CarShield was hit with a patent infringement lawsuit in January, its founders got mad. The complaint came with no prior notice, no warning and no demand letter.
They quickly figured out that the plaintiff, a shell company called 911 Notify, looked like a classic patent troll. Since 2013, it had filed more than 35 patent infringement suits, including some against such companies as Ford Motor Co., Lowe’s Home Centers and BMW North America. What 911 Notify really wanted, CarShield’s founders concluded, was for the startup to fork over $250,000 to make the lawsuit go away.
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