Free for a Fee

MARSHALL, TX—Newegg, an online retailer that has made a name for itself fighting the non-practicing patent holders sometimes called “patent trolls,” sits on the losing end of a lawsuit tonight. An eight-person jury came back shortly after 7:00pm and found that the company infringed all four asserted claims of a patent owned by TQP Development, a company owned by patent enforcement expert Erich Spangenberg.The jury also found that the patent was valid, apparently rejecting arguments by famed cryptographer Whitfield Diffie. Diffie took the stand on Friday to argue on behalf of Newegg and against the patent.

In total, the jury ordered Newegg to pay $2.3 million, a bit less than half of the $5.1 million TQP’s damage expert suggested.