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05 Apr 10:00

Rackspace sues “most notorious patent troll in America”

by Joe Mullin
You don't have to pay the troll toll. jj_judes

The San Antonio hosting company Rackspace is one of a few companies that has taken a tough position on software patents, stating clearly that the world would be better off without them. Today, the company filed suit against IP Nav, a patent-assertion company that Rackspace is boldly calling "the most notorious patent troll in America."

IP Nav certainly has a reputation. It was founded by Erich Spangenberg, a pioneer in the patent-assertion space, who has run a network of patent-holding companies for about a decade. Today, Spangenberg reportedly has an interest in more than 200 patent-holding companies through IP Nav, which advertises itself as a kind of advisory firm for anyone looking to "monetize" their patents. Some of Spangenberg's other projects include TQP Development, a Texas patent-holding company that has sued hundreds for using basic Web encryption; and a partnership with Priceline founder Jay Walker, who has gone full-throttle-patent-troll, suing dozens of Internet companies in 2011.

"We aren’t going to take it," writes Rackspace GC Alan Schoenbaum in a blog post on his company's decision to file suit. "We have sued IP Nav and Parallel Iron in federal court in San Antonio, Texas, where our headquarters is located... Search online for 'IP Navigation Group.' You will find that this group’s only business is acquiring patents and suing companies."

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