Tuesday, October 27

Why one software CEO agreed to meet a patent troll—and then fought it to the end

Pegasystems founder Alan Trefler, speaking at PegaWORLD conference earlier this year. (credit: Pegasystems)

When the business software company Pegasystems got sued in 2013 by a mysterious shell company called "YYZ LLC," Pegasystems' head of IP licensing, Ayaz Hameed, got ready to tell his boss that they had been hit by a patent troll.

Hameed looked at the two patents in the complaint (PDF), numbered 7,062,749 and 7,603,674, and read their examination histories. The patent focused on creating "monitoring messages" and storing them into a central database using what's called a "message broker."

"There was nothing earth shattering about what he [the inventor] said," concluded Hameed. It also didn't come close to describing how the accused software, Pegasystem's SmartBPM Suite, worked. Hammed began the unenviable job of telling Pegasystem's CEO and founder, Alan Trefler, that the company and his life's work had been hit with a low-value patent suit—from a "company" they'd never heard of seeking a quick payout.

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