Genetec Slaps Patent Trolls

Genetec Slaps Patent Trolls

Favorable conclusion reached in patent infringement case; company takes occasion of litigant’s settlement payment to make public its firm stance against nuisance lawsuits from non-practicing entities

“We don’t negotiate payment with patent trolls,” said Pierre Racz, president of Genetec Inc, as the company announced that a patent infringement lawsuit initiated by a non-practicing entity (NPE) was withdrawn by the NPE at an early stage of the proceedings. In a rare result, the NPE paid an undisclosed sum to Genetec. In patent litigation in the United States, it is highly unusual for a plaintiff to pay a defendant to resolve a case.

Genetec understands that legal attacks from non-practicing entities are an unfortunate part of the technology business, representing a reported 90 percent of high-tech patent litigation cases in 2019 alone. The practice, known as “patent trolling,” involves groups that don’t create technology, but rather aggregate patents that are generally of no technological value to use as the basis to initiate IP infringement cases against businesses.

Widely disparaged by courts, legal scholars, and world leaders including former President Barack Obama, as a form of legal extortion, these pursuits are estimated to cost businesses tens of billions of dollars per year. Although the number of patent trolling cases has flattened since a landmark 2014 Supreme Court decision, many groups continue to attempt to leverage hoarded patents as a legal bullying tactic against companies that actively innovate. While larger firms facing this sort of litigation are more often reported on, the majority of victims of patent trolling are smaller companies or startups (below $10M in revenue).

“Unlike the way many other companies deal with these sorts of attacks, we do not negotiate payment with patent trolls,” Racz said. “Despite the potentially high cost of litigation, bending to their anti-innovation tactics only encourages their behavior and, as a matter of principle, Genetec will always vigorously defend its technology and the hard work of the people who create it. Though we have quietly followed this course since the first patent troll arrived at our door, we felt that this occasion was a good time to speak out against this practice.”

“This represents an important symbolic victory for Genetec, and a clear demonstration of our policy of never paying nuisance value settlements,” said Jean-Yves Pikulik, director of Intellectual Property at Genetec. “While we would much rather spend our time patenting our innovations than fighting off patent trolls, we will continue to vigorously defend ourselves against NPEs and seek legal costs in lawsuits that we perceive as frivolous.”

This resolution settles all outstanding claims by the non-practicing entity against Genetec.

Featured

  • Maximizing Your Security Budget This Year

    7 Ways You Can Secure a High-Traffic Commercial Security Gate  

    Your commercial security gate is one of your most powerful tools to keep thieves off your property. Without a security gate, your commercial perimeter security plan is all for nothing. Read Now

  • Digital Access in the Workplace

    It is simple to set up a unified, robust access control solution for one tenant leasing one building. It is even easier if the tenant owns the property. But what is involved when multiple companies lease space in a building? And what about companies that have multiple buildings in the same city or locations across various regions in the country and the world? Read Now

  • Cloud and Hybrid Adoption on the Rise

    The physical security industry is experiencing a time of great transformation. Cloud connectivity is accelerating, and more organizations are choosing to blend on-premises and cloud-based solutions. This transformation is affecting all aspects of security, including access control. In the Genetec annual State of Physical Security Survey, it was access control that topped the list of new technologies end-users planned to focus on in 2024. Read Now

  • Texas City Replaces Locks on Intelligent Traffic Cabinets With More Secure Option

    The Transportation Services and Mobility department for the city of Grand Prairie, Texas recently completed a substantial project to replace the locks on their Intelligent Traffic Cabinets with a better and more secure choice. Turns out what they needed was only a few miles away with ALCEA’s Traffic Cabinet Locking Solution powered by ABLOY technology. Read Now

Featured Cybersecurity

Webinars

New Products

  • AC Nio

    AC Nio

    Aiphone, a leading international manufacturer of intercom, access control, and emergency communication products, has introduced the AC Nio, its access control management software, an important addition to its new line of access control solutions. 3

  • Automatic Systems V07

    Automatic Systems V07

    Automatic Systems, an industry-leading manufacturer of pedestrian and vehicle secure entrance control access systems, is pleased to announce the release of its groundbreaking V07 software. The V07 software update is designed specifically to address cybersecurity concerns and will ensure the integrity and confidentiality of Automatic Systems applications. With the new V07 software, updates will be delivered by means of an encrypted file. 3

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure. 3