Judge: Vermont Can Proceed with Case Against MPHJ for Allegedly Violating Consumer-Protection Laws

jay mac rust

Jay Mac Rust, the Texas lawyer who owns MPHJ Technology Investments

On Monday, the U.S. District Court for the District of Vermont issued a decision that will force patent-holder MPHJ Technology Investments to face charges filed by the Vermont attorney general that MPHJ violated Vermont’s consumer-protection laws with its practice of sending out tens of thousands of demand letters to businesses. The letters stated that the typically small business must pony-up $1,000 per employee for using a copier/MFP’s scan to email or face a patent-infringement lawsuit from MPHJ.

MPHJ had previously tried to move the Vermont case into federal court, but lost that appeal in 2014. It then filed a second appeal seeking, arguing that Vermont’s new patent-related consumer protection law, the Vermont Bad Faith Assertions of Patent Infringement Act, (“BFAPIA”), was preempted by federal law.

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