A handful of interest groups like to claim that patent trolls are a myth—that they’re a straw man used to shape IP policy in ways that are harmful to patent holders. Mycroft AI is one of many startups for whom the threat of patent trolls was all too real.
The story of Mycroft AI, the creator of a virtual assistant that responds to spoken requests, follows a common story line. The founders had an idea and began obtaining funding to bring their idea to life. After successfully seeking out funding and participating in startup accelerators, the trouble began. In 2020, a Texas law firm accused Mycroft of infringing on two patents that belonged to the patent trollAn entity in the business of being infringed — by analogy to the mythological troll that exacted payments from the unwary. Cf. NPE, PAE, PME. See Reitzig and Henkel, Patent Trolls, the Sustainability of ‘Locking-in-to-Extort’ Strategies, and Implications for Innovating Firms. Voice Tech Corporation. According to the email, Voice Tech’s patents covered a system for handling “voice commands from a mobile device to remotely access and control a computer”—supposedly, the very technology that Mycroft’s products were built upon.
A month after Mycroft was sued, its CEO, Joshua Montgomery vowed that the startup would fight back, but it was an uphill battle from the start. In addition to the various challenges that all startups face when trying to grow and compete, Voice Tech’s lawsuit added expensive legal fees. Mycroft was ultimately forced to fire all but four employees and their CEO posted on Kickstarter, informing investors that the company would be unable to fulfill rewards. In the post, Montgomery commented, “The single most expensive item that I could not predict was our ongoing litigation against the non-practicing patent entity that has never stopped trying to destroy us. If we had that million dollars we would be in a very different state right now.”
Earlier this month, the Federal CircuitSee CAFC affirmed a Patent Trial and Appeal Board (PTABPatent Trial and Appeal Board. Reviews adverse decisions of examiners on written appeals of applicants and appeals of reexaminations, and conducts inter partes reviews and post-grant reviews. The Board also continues to decide patent interferences, as it was known as the Board of Patent Appeals and Interferences (BPAI) before the AIA.) decision that found multiple Voice Tech patent claims were invalid. While this victory was ultimately too late for Mycroft, it demonstrates the value of maintaining accessible PTABPatent Trial and Appeal Board. Reviews adverse decisions of examiners on written appeals of applicants and appeals of reexaminations, and conducts inter partes reviews and post-grant reviews. The Board also continues to decide patent interferences, as it was known as the Board of Patent Appeals and Interferences (BPAI) before the AIA. review. It also shows exactly why USPTOUnited States Patent and Trademark Office. See also PTO. rules that block PTABPatent Trial and Appeal Board. Reviews adverse decisions of examiners on written appeals of applicants and appeals of reexaminations, and conducts inter partes reviews and post-grant reviews. The Board also continues to decide patent interferences, as it was known as the Board of Patent Appeals and Interferences (BPAI) before the AIA. reviews in instances where there is parallel litigation are flawed.
Mycroft is just one of too many American startups that have been destroyed by patent trolls. It is discouraging that, in this instance, the PTAB’s invalidation ruling wasn’t able to protect Mycroft soon enough. But at least the PTAB’s decision means that Voice Tech won’t be able to use those same patents to kill any more startups.
So the next time you read that the patent trollAn entity in the business of being infringed — by analogy to the mythological troll that exacted payments from the unwary. Cf. NPE, PAE, PME. See Reitzig and Henkel, Patent Trolls, the Sustainability of ‘Locking-in-to-Extort’ Strategies, and Implications for Innovating Firms. narrative is overblown, or that patent trolls are a myth? Remember Mycroft AI and other promising innovators just like them.
