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Jury declares that Newegg infringed on Spangenberg patent, troll wins

Newegg loses long fought battle with east Texas patent troll, ordered to pay $2.3 million in damages
By: Charles Gantt | Business, Financial & Legal News | Posted: Nov 26, 2013 10:50 pm

Over the last year or so, a war has been waging in east Texas between and the notorious patent troll Erich Spangenberg, and today the war is finally over. Jurors departed the court room and returned the guilty verdict after just three hours of deliberations.


jury_declares_that_newegg_infringed_on_spangenberg_patent_toll_wins_1 was found to infringe upon all four of the patent assets owned by TQP Development, a patent firm owned by Spangenberg. The patent is said to cover SSL and TLS encryption combined with the RC4 cipher. These are protocols and safety measures commonly used by online retailers to ensure their customers information is protected.


Newegg was ordered to pay $2.3 million which is less than half of the $5.1 million TQP was claiming in damages. So what does this mean for Newegg? I would suspect that Newegg will enter into a licensing agreement with TQP and will continue using the system that is in place. Alternatively, Newegg could develop an entirely new system that it could release into the public domain and forever invalidate TQPs patent.


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