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FTC Settles Unusual Complaint Against Patent Troll

The Federal Trade Commission announced an unusual settlement Thursday with MPHJ Technology Investments, a company notorious for sending threatening letters to small businesses demanding payments for patent infringement. The company has agreed to stop the practice or pay upward of $16,000 per threatening letter. The FTC alleged MPHJ sent letters to more than 4,800 small businesses and threatened to sue for patent infringement without filing a single suit. Earlier this year, MPHJ sued the FTC to stop the complaint but that suit was thrown out. The case marks the first time the FTC has taken action against a patent troll, otherwise known as a patent-assertion entity.

This article originally appeared on Recode.net.