A shell company, Lone Star Document Management, recently sued several electronic data discovery firms for patent infringement. The defendants include Business Intelligence Associates; CaseCentral, acquired in February by Guidance Software; Catalyst Repository Systems; Cloud Nine Discovery; Digital Reef; and Gallivan, Gallivan & O’Melia.
Defendants and patent litigation experts say it’s a classic case of patent trolling, which refers to lawsuits in which the patent owner has no active company or product. In other words, the business is to enforce patents. Typically, plaintiffs file “troll” suits with the expectation of settlements, because defendants often wish to avoid bad publicity. It’s a well-known practice in technology, but appears to lack precedent in e-discovery.
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