[btilly]

That makes me wonder.

What if there was a law that any "company" whose incorporation cannot be demonstrated to actually satisfy certain legal guidelines could automatically lose any legal suit that it was involved in? How many of these shells would disappear?

[espyb]

They would disappear briefly, only to reappear as a new shell corporation. That's the whole point for many of them, no real liability. They hide behind false information, then disappear when it's convenient and start over. So I doubt the threat of an automatic negative outcome during litigation would be a deterrent. The law really only intimidates the people playing by the rules, or trying to.

[btilly]

The thing is that if you sold your patent to a shell corporation, then sued someone, the person can counter-sue saying, "You're not a real corporation, you lose, I get your assets." And now you no longer have that patent to sue with.

This would make shell corporations utterly useless for patent trolls.

[willrobinson]

"The law really only intimidates the people playing by the rules, or trying to."

A seemingly simple yet profound statement. Thanks for this.