Landmark Technology A LLC, a North Carolina-based patent assertion entity, has agreed to a settlement with the state of Washington, concluding a lawsuit that accused the company of violating the state’s Patent Troll Prevention Act. The agreement, filed in the U.S. District Court for the Western District of Washington, stipulates that Landmark will pay $95,000, with an additional $3 million suspended, contingent upon compliance with the settlement terms.
The lawsuit, initiated by Washington Attorney General Bob Ferguson in May 2021, alleged that Landmark engaged in predatory practices by sending over a thousand demand letters to small businesses nationwide, including several in Washington. These letters claimed patent infringement related to common e-commerce operations and demanded licensing fees of $65,000. When some businesses refused to pay, Landmark pursued litigation, leading to settlements aimed at avoiding costly legal battles. ([atg.wa.gov](https://www.atg.wa.gov/news/news-releases/ag-ferguson-files-lawsuit-against-patent-troll-targeting-small-businesses?utm_source=openai))
Landmark’s actions were challenged under Washington’s Patent Troll Prevention Act, enacted in 2015 to protect businesses from bad-faith patent infringement claims. The law prohibits entities from making deceptive or unfounded assertions of patent infringement. ([atg.wa.gov](https://www.atg.wa.gov/news/news-releases/governor-signs-ag-s-patent-troll-prevention-act-law?utm_source=openai))
As part of the settlement, Landmark is required to cease sending patent infringement demand letters to businesses in Washington and to refrain from initiating new patent infringement lawsuits against Washington businesses without prior approval from the Attorney General’s office. The suspended $3 million penalty will be enforced if Landmark violates these terms.
This case underscores the challenges posed by patent assertion entities, often referred to as “patent trolls,” which acquire patents not to develop products but to demand licensing fees from other companies. Such practices can impose significant financial burdens on small businesses, leading to settlements to avoid the expense of litigation. ([foster.com](https://www.foster.com/newsroom-news-patent-trolling-washington-state-landmark-technology-sued-seattle-times-benjamin-hodges?utm_source=openai))
The resolution of this lawsuit highlights the effectiveness of state-level legislation in combating abusive patent practices and protecting businesses from unfounded infringement claims.