As long as the patent is valid there is nothing racketeering about it.
They had another meeting to go over it with IBM to show results. Not impressed IBM said fine you don’t violate those. We have a hundred thousand more patents.
Are you buying a license for these, or should we go find more that you “violate”
Company purchased a license.
This was 20 years ago.
Whereas, what I'm suggesting is more structuring a business such that they can't be sued for patent infringement since they don't own the technology that is allegedly infringing. So if your company receives a cease-and-desist letter, your lawyers can respond with a contract from Core Technology LLC granting you license to use the technology as you deem if, and that the Patent Troll needs to contact Core Technology LLC if they have patent issues.
In the mean time, you can stop licensing from Core Technology LLC and instead move to a new vendor, Core Technology II LLC, who offers an improved product anyway.
The goal being to make it not worth pursuing your business.
You don't have to "own" tech in order to infringe a patent. Making a product that includes the technology protected by the patent, or selling it without there being a license (eg you buy it offshore where they're not covered by a particular patent, but you sell it where there is a patent covering that tech).
None of that matters in USA, as the threat of a lawsuit is threat of massive costs; ostensibly it doesn't matter that the court would award costs of a few $thousand against you if the lawyers to get you through the case cost $100,000s.
This is my personal opinion and not legal advice.
Edit: A link to that story: https://www.forbes.com/asap/2002/0624/044.html
On a side note, I know someone who’s company got sued, then when the lawyers came to the table to negotiate, they showed him a list of other companies that had previously settled with them and the amounts they had settled for. He said the lawyers had clearly done their homework in terms of estimating how much it would cost the company to go to court and the proposed settlement amount was within 10-15% of that estimate. He decided to settle.
Trolls' method is exactly racketeering because it's extorting money using threat tactics. "You don't want something worse happening to you? Better pay up XYZ amount!". It's not going get much more classic protection racket than that. Except they threaten not with beating you up, but with you spending millions on court cases. I'd say trolls getting jail time for this garbage should be a good medicine for them.
Right, but law actually presumes they are valid. Which is why its tough to go after a troll for asserting a valid patent.
Aside, in the UK there's compulsory licensing (UKPA Section 48x to prevent people from inventing stuff and refusing to license it (at reasonable terms), too.
And that is the grand joke of the patent system.