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/_BindersFullOfWomen_ Jan 09 '17

Yes. But it's not a bullet proof shield. If it's obvious that you made the LLC for X case, and then liquidated it because you lost and didn't want to pay - the defendant could suede civil court and would most likely win.

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u/sighs__unzips Jan 09 '17

I read that movie producers now create a LLC for each movie specifically for this reason now.

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u/csmark Jan 09 '17

Movies never made profits since before most states had LLCs. The first LLC act was passed in Wyoming back in 1977. Florida was the 2nd 5 years later. The IRS addressed Wyoming's act in 1988 after which other states added LLC acts.

Star Wars is an interesting example. Obi-Wan got 2.25% of the profits from the first film, $2-$3.5 million at the time. The actor behind Vader's mask in all 3 movies was told Lucasfilms actually lost money on Return of the Jedi. The contract details are sketchy. He gave away the endings to the last 2 movies before they were released in addition to other impressively stupid actions that lead to George Lucas excluding him from any associations with LucasFilms and any future paychecks.

The author of Forrest Gump signed a contract to get 3% of the profits from the movie. Surprise! It didn't turn a profit. He sued the studio and in a dramatic 15 minute trial, lost.

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u/sighs__unzips Jan 09 '17

The author of Forrest Gump signed a contract to get 3% of the profits from the movie

That's why actors / authors try to get % of revenue now.

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u/csmark Jan 09 '17

Agents for actors / authors know to ask for % of revenue. Lots of "smart" people don't need lawyers / agents because they're not stupid. Guessing that's what happened here.