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Blue Jeans Cable Strikes Back - Response to Monster Cable

Posted by dinotrac on · 9 comments
Audioholics Online A/V Magazine; By Tom Andry
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Not a Linux article, but on a topic near and dear to our hearts -- An attack by an IP holding company. In this case, Monster Cable's lawyers sending a Cease and Desist letter to Blue Jeans Cable. Too often, FOSS folk, bless their hearts, panic at the word "patent". This letter from Blue Jeans President and former litigator, Kurt Denke, gives some idea why real companies -- companies with valuable businesses and assets to protect don't just go out and routinely drop "patent bombs".

Admittedly, Denke may be pushing the envelope a bit -- that is something lawyers do, but look for these things:

1. He wants to be notified of infringement in a way that actually informs him of what his company is doing.

What a lovely argument, btw. He checks out Monster products and doesn't see it. They send him five design patent claims, all of which are different, and asks : How can I infringe all five? Tell me what the heck you think I am doing wrong.

He points out that some design aspects are a functional requirement of RCA plugs and not subject to design patents. He even manages to find an expired Monster patent that may constitute prior art!

Mostly, though, he says don't through BS my way. If I infringe, tell me what the heck I am infringing. This crap you're sending tells that you don't know, and, if you don't know, you are probably in violation of Federal procedural rules. For those that don't know -- Federal Rule 11 requires that a lawyer certify that he has investigated the facts and law sufficiently to know that the filing is not frivolous. The cool thing about Rule 11 is that it exposes the lawyers to sanctions, not just the client.

The letter is also potential evidence, if, in the end, Blue Jean is found to have infringed a Monster design patent, that it had not been properly notified and that damages bases on that patent would not accrue until notification was sufficient.

I also like the last paragraph, which is the cost and benefit end of things. One reminder: if a patent infringement claim is considered frivolous, the plaintiff can be made to pay the defendant's attorney's fees. This has two effects:

1. Raises the plaintiff's cost significantly, and
2. Increases the likelihood that defendant will be able to secure competent representation.

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Comments (9)

That letter is one of the funniest legal letters I've ever read (and I've read quite a few gems over at Groklaw).
Yeah. I liked it.

Note that, while he may be trying to push some discovery stuff up to the nasty letter stage of things, he is pretty much right on in his discussion of legal matters.

The cost/benefit part is also true except for one important little detail:

To the IP holding company, cost/benefit is spread out over the universe of licensees and not evaluated on a per-licensee basis. So, if they really believe they have a valid complaint (which seems unlikely), or, in the alternative, strongly believe they will win anyway, Monster would be well-advised to sue Blue Jeans and stomp them into the ground. The money they lose stomping Blue Jeans would be made up striking fear into the hearts of others.

Except that, I don't think they've got a slam dunk.

> "Not only am I unintimidated by litigation; I sometimes rather miss it."

Oh yeah! Guess what brand of cables I'll look for next time I need some!

I think I'll put it up on the quotes board next to Greenspan's "irrational exuberance".
Monster Cables are ridiculously overpriced. They might have some genuine super-duper high-end gear that really is better, but their bread and butter is selling two-dollar cables to the gullible for a hundred bucks.

The letter is great :)
Another vote here for the strikeback letter!

One of the big remaining questions is How will Monster Cable actually respond to the challenge in the letter by Denke?

- By vigorous follow-through "to sue Blue Jeans and stomp them into the ground" as suggested above, perhaps by fully addressing or ignoring Denke's requests as Monster Cable sees fit ?

- By putting its promised infringement-suit in slow-gear based upon the absolutely ENORMOUS current show of support for Blue Jeans Cables at sites such as LXer, /., Digg, and similar such sites ?

- Similarly, by Monster Cable acting to drag out a potent and elongated Discovery Phase in order to blunt Denke's currently magnified effect from his letter ?

- By completely reversing its threat of an infringement suit against Blue Jeans Cables (maybe an apology?) and to commence "striking fear into the hearts of others" by going after much easier LHF instead ??





Quoting: I say this because my observation has been that Monster Cable typically operates in a hit-and-run fashion. Your client threatens litigation, expecting the victim to panic and plead for mercy; and what follows is a quickie negotiation session that ends with payment and a licensing agreement. Your client then uses this collection of licensing agreements to convince others under similar threat to accede to its demands.


Now what other large monopoly have I seen doing exactly that?
The problem for Monster Cable is that this is now a very public event. Other potential litigation targets -- more accruately, blackmail targets -- will be watching. They can't just walk away without losing the ability to bully others.
> They can't just walk away without losing the ability to bully others.

Well, I expect that was the intent of posting the letter, don't you?
Jdixon -

You bet. This guy misses the fight and, if he was the kind of lawyer he says he was, is offended by people who lower the profession's standing in this way.

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