Inc. (USA)

How to Choose an IP Attorney

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Legal fees can kill your business, win or lose. In 2011, David Bloom, now a general manager at Sterling Talent Solutions, founded Ordrx, an open platform for restaurant ordering backed by Techstars and Google Ventures. A lawsuit was filed against Ordrx in 2012 by Ameranth, a hospitalit­y technology company that had patent claims regarding online menu generation and a connected informatio­n and management system. Ameranth also sued Hyatt, Expedia, and Domino’s Pizza, among others. “It was basically a patent on the use of the internet for moving informatio­n and taking orders,” Bloom says. (A federal appeals court invalidate­d most of Ameranth’s patent claims in November. The company is taking it to the Supreme Court.) Ameranth wanted ongoing licensing payments, which Ordrx couldn’t afford. “Every time I needed clarificat­ion, it cost me lawyer time,” he says. With fees mounting, Bloom closed Ordrx. Ameranth president Keith McNally says Bloom infringed on his firm’s patents and was offered generous settlement terms, and that his lawsuit is not the cause of Ordrx’s failure.

Rachael Lamkin of Lamkin IP Defense says you can limit your exposure by asking these questions to any lawyer you are considerin­g to represent you.

1. What is your analysis of this case and your strategy to win it?

The strategy should be specific to your case, and not a generic approach. And the initial consultati­on should be free of charge.

2. What is the best way to end this case quickly?

And how much will it cost if we achieve that quick resolution?

3. Will you agree to a fee cap?

“I’ll generally provide a fee cap if I know the troll and have litigated against them multiple times,” Lamkin says.

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