Cloudflare Declares War On a Patent Troll With a $50,000 Bounty

Internet security company Cloudflare has declared war on a company called Blackbird that consists of a group of lawyers who file patent lawsuits against tech and retail firms. In a blog post titled “Standing Up to a Dangerous New Breed of Patent Troll,” Cloudflare called Blackbird’s business model destruction and unethical, and announced a $50,000 bounty to anyone who would help invalidate Blackbird’s patents. Fortune reports: “There’s no social value here. There’s no support for a maligned inventor. There’s no competing business or product. There’s no validation of an incentive structure that supports innovation. This is a shakedown where a patent troll, Blackbird Tech, creates as much nuisance as it can so its attorney-principals can try to grab some cash. Cloudflare does not intend to play along,” said the blog post. While patent trolling has been around for years — and is a particular bug bear of the tech industry — Cloudflare says Blackbird’s model of trolling involves a new and unethical twist. Specifically, the company says Blackbird’s lawyer-executives are violating their professional obligations by buying the claims of potential clients and engaging in questionable fee-splitting arrangements. Here is how Cloudflare, which says it is filing complaints with the state bars of Massachusetts and Illinois, explains it: “Blackbird’s ‘new model’ seems to be only that its operations set out to distort the traditional Attorney-Client relationship. Blackbird’s website makes a direct pitch of its legal services to recruit clients with potential claims and then, instead of taking them on as a client, purchases their claims and provides additional consideration that likely gives the client an ongoing interest in the resulting litigation. In doing so, Blackbird is flouting its ethical obligations meant to protect clients and distorting the judicial process by obfuscating and limiting potential counterclaims against the real party in interest.”


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