SherylKing
Member
Registered: Dec 1999
Location:
Posts: 119 |
I am a lawyer (recently retired, or I wouldn't have time to read this stuff!). But I have never practiced in the area of patent law -- it is a very specialized area. So I will keep my comments general.
But here are some basic facts. Anyone can sue anyone -- it doesn't mean they have a valid case or can win. To defend a lawsuit -- even a small peanuts, frivolous one -- can cost as much as $50,000 -- and that's before you even get to trial. It also takes a LOONG time. Here in San Diego we have a fast track system which tries to see that cases go to trial within a year of filing. Obviously, in the Visor arena, this stuff hasn't even been in existence that long!
Moreover (there I go again), only five percent of the cases filed actually go to trial -- most of them settle. (Usually with insurance money.) Insurance companies have a duty to defend their insureds -- but it is in their economic interest to settle cases for less than it would cost to defend them -- even if the ultimate outcome would be successful. This is referred to as a "cost of defense" settlement.
Plaintiffs (well, most of them) are smart enough to figure out that filing a suit -- even a meritless one -- may make them a quick cost of defense settlement in the neighborhood of $15,000 or $20,000, which is well within the cost of defense. So many of them feel it's worth a shot. The fee to file a case is minimal (I don't know the exact amount, and it differs by jurisdiction, but it's usually under $200.
You can't buy any better publicity for that price! Remember, it doesn't matter what is said as long as the name is spelled right!
Would any of us have heard of IVB if he hadn't created the stink? Probably not. We've sure heard of him now. He probably feels he has accomplished his purpose!
There are, of course, some deterents to filing a totally frivolous lawsuit. You can be sued in turn for defamation (slander or libel). But that takes lawyers (i.e. legal fees, which aren't cheap).
The reality is that many plaintiffs lawyers take the cases on a contingency (they get a percentage -- usually one-third -- of any recovery), while defense lawyers get paid by the hour. That means there's not a lot of risk taken by the plaintiff himself, since he doesn't pay if he doesn't win. You just have to convince some lawyer that it's possible to get a recovery that would make it worth his or her time. And there are so many lawyers these days that finding a hungry one might not be so hard.
So most people (and companies) try not to get sued in the first place. Once they get a letter threatening a lawsuit, they tend to pull back from the behavior that caused the letter -- even if they are right.
The system seems to work, overall, but it clearly has some flaws!
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