A company and its law firm have agreed to settle Federal Trade Commission (FTC) charges that they used deceptive sales claims and phony legal threats in letters that accused thousands of small businesses around the United States of patent infringement. The settlement would bar the company, MPHJ Technology Investments, LLC, and its law firm from making deceptive representations when asserting patent rights. The settlement with MPHJ represented the first time the FTC had taken action using its consumer protection authority against a patent assertion entity (PAE). PAEs, also called patent "trolls," are companies that obtain patent rights and try to generate revenue by licensing to or litigating against those who are or may be using patented technology.
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