A Patent Troll Defeated: A Victory for Innovation

17 / 10 / 2024

Cloudflare, a leading US company specializing in DNS, CDN, and DDoS protection, has announced a significant triumph over the notorious patent troll, Sable IP and Sable Networks. This victory may mark a pivotal moment for the tech industry.

Sable, a fictional entity, operates purely by exploiting a portfolio of patents acquired in 2006. Unlike genuine companies, Sable does not develop or manufacture products. Instead, it targets businesses by accusing them of patent infringement, threatening costly lawsuits, and forcing settlements. Sable has previously targeted giants like Cisco, Fortinet, and Juniper Networks, draining resources and stifling innovation.

In 2021, Sable sued Cloudflare with a hundred complaints alleging infringement of four outdated patents related to 20-year-old router technologies. Sable attempted to extend these “hardware” patents to Cloudflare’s modern software-based cloud services. In response, Cloudflare launched Project Jengo, a crowdsourced initiative to find prior art—evidence that the patented technology was publicly known before the patent was filed.

Project Jengo proved instrumental in challenging Sable’s claims. Over several years, Cloudflare successfully contested Sable’s patents both in court and before the USPTO, reducing the lawsuit from hundreds of claims to a single patent infringement.

Cloudflare’s team demonstrated that their technology did not infringe Sable’s patents. They also invalidated the patents using prior art from the late 1990s. Additionally, Sable’s founder admitted their sole business model is filing lawsuits without prior negotiations.

The court ruled in favor of Cloudflare, awarding them $225,000 and a free license to Sable’s entire patent portfolio, which is now in the public domain. Sable has since ceased operations, signaling the end of its exploitative practices.

Cloudflare’s victory over Sable underscores the importance of defending innovation against predatory litigation. Through strategic initiatives like Project Jengo, Cloudflare has set a powerful example for the tech industry, ensuring a fair and competitive environment for future advancements.

Previous news

Rethinking Patent Quality: New Insights Challenge Old Assumptions

A recent report from the Sunwater Institute has challenged long-held beliefs about patent quality in the United States. Contrary to popular opinion, the U.S. Patent and Trademark Office (USPTO) is not overwhelmed with "bad patents." In fact, only 7% of U.S. patent claims are erroneously granted, one of the lowest rates among major patent offices worldwide.

The report reveals a surprising finding: the USPTO is more likely to erroneously reject or abandon valid patent claims than to grant invalid ones. Approximately 18% of abandoned U.S. patent claims are actually valid under patentability criteria. This discrepancy is even more pronounced in tech-heavy fields like computer networks and communications.