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ARTICLE · 18 NOVEMBER 2014

FTC Proposes Consent Order To Settle Charges Alleging Misrepresentations By Patent Assertion Entity

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The FTC alleged MPHJ engaged in prohibited misleading or unsubstantiated representations when seeking to assert its patents.

United StatesIntellectual Property
Mukund Sharma
Mukund Sharma
William Ahmann
William Ahmann
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On November 6, 2014, the Federal Trade Commission proposed a consent order that would settle charges against a patent assertion entity, MPHJ Technology Investments, LLC ("MPHJ"), and a law firm that represented MPHJ.

The FTC alleged MPHJ engaged in prohibited misleading or unsubstantiated representations when seeking to assert its patents. More specifically, the FTC alleged, in relevant part, that MPHJ:

  • bought patents related to network computer scanning technologies,
  • threatened to sue thousands of small businesses that were alleged to infringe the patents, unless the businesses obtained a license from MPHJ;
  • did not have any intention of and made no preparations to initiate lawsuits against these businesses; and

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