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Re:How Newegg is Winning the Battle Against Patent Trolls [v... by Bartweiss on Thursday May 26, 2016 @12:54PM (#11779486)
It's a depressingly well-chosen amount. Absurdly high, but comfortably below the cost + risk value of actually fighting the case.

At this point, Newegg is starting to look like the brilliant player in this game. "Millions for defense, but not one cent for tribute" really is a potent philosophy, and while $100k is cheaper than fighting the case, it's not cheaper than preventing future suits before they arrive.

Re:How Newegg is Winning the Battle Against Patent Trolls [v... by xviia on Thursday May 26, 2016 @01:02PM (#11779565)
Hopefully, firms will start to pool resources to fund legal defenses.

If settling out of court costs $100,000 and losing a lawsuit costs $1,000,000, teaming up will be the dominant strategy as long as more than 10 firms pool resources.

Re:How Newegg is Winning the Battle Against Patent Trolls [v... by sthu11182 on Thursday May 26, 2016 @01:29PM (#11779837)
Litigation is much more expensive than that. Inter Partes Review and early summary judgment on 101 are the cheapest way to go in many circumstances. It is what is happening these days too.
Re:How Newegg is Winning the Battle Against Patent Trolls [v... by Bartweiss on Thursday May 26, 2016 @04:26PM (#11781251)
Eh, I think that's an overgeneralization.

Newegg claims to have spent $450,000 on the Macrosolve fight, which was about 4x the troll's initial request, but which also includes a claim against Macrosolve for legal fees. That's also more money than Macrosolve could afford to drop on a fight, basically guaranteeing them a win by outlasting the case. They've worked most of their claims down to summary dismissals or no-prejudice suit drops, so once they got the "take it to the mat" reputation established they stopped having to pay full litigation costs for most of their suits.

Review and summary judgement are definitely cheaper, but even full-litigation expenses are workable. Your accounting just has to include dropped and averted suits.

Re:How Newegg is Winning the Battle Against Patent Trolls [v... by EliRivers on Thursday May 26, 2016 @02:47PM (#11780479)
I think that already exists, in the form of insurance.
Re:How Newegg is Winning the Battle Against Patent Trolls [v... by josaka on Thursday May 26, 2016 @04:20PM (#11781197)