Eolas, a notorious patent troll who partnered with the University of California in a shakedown scheme that claimed royalties for all "interactive web sites" that featured rotating images, streaming video, and other practices that had been widely established before their patent was filed, has lost a key lawsuit. A jury in Tyler, Texas (the sleepy town where the shell-companies used by patent trolls have their nominal offices) found that the Eolas patent was invalid, after hearing testimony from Web inventor Tim Berners-Lee and other luminaries of the open web.
If the jury had upheld the patents, there would have been a potentially brutal damages phase in which Google, YouTube, Yahoo, Amazon, Adobe, JC Penney, CDW Corp. and Staples would have been sued for infringement and been asked for more than $600 million in damages, with the majority of that coming from Google and Yahoo.
The Eolas patents were denounced for years before this week’s landmark trial, but managed to survive repeated re-exams at the United States Patent and Trade Office.
However, Thursday’s verdict is likely a setback Eolas can’t overcome. It may well be appealed, but that will be a long process, and in the meantime Eolas won’t be able to go after new targets.