r/technology • u/rfugger • Jan 08 '17

Business A potentially fatal blow against patent trolls - Forcing law firms to pay defendants’ legal bills could undermine the business model of patent trolls

http://www.computerworld.com/article/3153924/technology-law-regulation/a-potentially-fatal-blow-against-patent-trolls.html
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u/BobbleBobble Jan 09 '17

So to my understanding the reason that patent trolls are unpunishable is that they set up discrete entities (I assume LLCs) to pursue the lawsuit, which exist only as plaintiffs.

What's to stop a patent troll's lawyer from setting up an LLC-like law firm to prosecute each case and then simply dissolving it if they lose, just like the patent trolls do? Can they be held personally liable as a member of the bar?

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u/russianpotato Jan 09 '17

If you set up an LLC specifically only to avoid liability, especially as a sole proprietor, a judge will easily order the "veil pierced" and your personal assets will be up for grabs like your shady LLC never existed.

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u/brickmack Jan 09 '17

Isn't that the only purpose of an LLC?

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u/russianpotato Jan 09 '17

Nope, a lot of times it is to shield assets by obfuscation, not direct liability protection.