Patent Trolls: Scan Scam

NAR has received many reports from members who have received demand letters from a patent owner, NPHG Technology (or its Law Firm, Farney Daniels, P.C.), that purports its ownership of the process of sending a document via email from a printing or scanning device. The letters demand that companies (typically small to medium size) pay a licensing fee of between $900 to $1,200 per employee for the ability to scan and email documents.

NAR reports that members in at least six states have been targeted so far (IA, IL, IN, OH, VA, and NY). It’s possible (and perhaps probable) that members in other states have also received these license fee demand letters as well.

To assist members who may receive a demand from this patent owner, NAR Legal Affairs department produced a brief, informational podcast of this issue which is available at: http://www.realtor.org/audio/legal-podcast-patent-infringement-letters.

If you receive a letter, be sure to let AAR General Counsel Scott Drucker know and he will provide you with guidance on how to proceed.