Venadium LLC

Since the US Supreme Court issued its decision in TC Heartland v. Kraft Foods Group Brands, RPX has seen an upswing in venue-related filings by both plaintiffs and defendants—with indications that some NPEs may be throwing in the towel on Texas, while others are seemingly digging in. Defendants have also begun to adapt their defensive strategies, asserting more comprehensive interpretations of the patent venue statute and proactively maintaining their right to bring venue challenges down the road.

Four days after the US Supreme Court issued its TC Heartland decision, returning to its previous, narrower interpretation of where proper venue lies in patent cases, an affiliate of Texas-based monetization firm IP Edge LLC has taken the rare step of filing litigation outside the Eastern District of Texas. Venadium LLC has asserted the sole patent at issue in its campaign (6,330,549) in Northern District of Illinois complaints against three companies allegedly formed in that state—Paylocity (1:17-cv-04002), State Farm Mutual Automobile Insurance (1:17-cv-04004), and W.W. Grainger (1:17-cv-03999)—as well as against two Delaware companies—Allstate Insurance (1:17-cv-03998) and Hyatt Hotels (1:17-cv-04001). Meanwhile, Somaltus LLC, another IP Edge affiliate, agreed to postpone a scheduling conference in an ongoing Eastern District of Texas case to allow that court to rule on a pending motion to dismiss filed by the Ohio defendant, The Noco Company, for lack of personal jurisdiction and improper venue. Late this past week, Magistrate Judge Roy S. Payne granted the motion, transferring that case out of Texas to the Northern District of Ohio. Finally, last week two Southern District of New York judges asked IP Edge affiliate Kaldren LLC to submit letters explaining why venue is proper in cases that that the NPE brought earlier this month in that district.

Prolific patent monetization firm IP Edge LLC shows no signs of slowing down in the New Year, with affiliated NPEs filing another round of cases in the first week of January. Ruby Sands LLC has added new lawsuits to its troubled mobile banking campaign, while Packet Tread LLC and Cypaleo LLC have continued to expand their respective communications campaigns. These latest cases follow a surge of filings by other IP Edge affiliates in the final months of 2016.

IP Edge LLC affiliate MagnaCross LLC has filed a fresh round of lawsuits, capping off a wave of year-end litigation by other NPEs also controlled by the prolific monetization firm. The latest MagnaCross complaints target Avaya (2:16-cv-01461), Comtrend (2:16-cv-01462), EnGenius (2:16-cv-01463), Huawei (2:16-cv-01464), Juniper Networks (2:16-cv-01465), Siemens (2:16-cv-01466), and Sierra Wireless (2:16-cv-01467), accusing the companies of infringing a single patent (6,917,304) generally related to wireless data transmission through the provision of wireless access points or routers.

Venadium LLC, an affiliate of IP Edge LLC, has added five more cases to its sole litigation campaign, suing Expedia (Hotels.com) (5:16-cv-00174), Groupon (5:16-cv-00173), Kayak (5:16-cv-00175), New Avon (5:16-cv-00172), and Redfin (5:16-cv-00176). The NPE continues to assert a single, former Xerox patent (6,330,549), generally related to limiting software to authorized use, against the cryptographic protocols (e.g. RSA, Diffie-Hellman, and HMAC) during the login process for the defendants’ websites. This approach marked a shift, begun this past July, away from infringement theory in the first wave of lawsuits, filed in July 2015, which targets Bluetooth-enabled devices.

In July 2016, the last of the 20 cases brought by Venadium LLC roughly one year earlier was dismissed with prejudice. Six weeks later, the NPE has rebooted its sole litigation campaign by filing five new lawsuits, one each against BuzzFeed (5:16-cv-00118), J.D. Power and Associates (5:16-cv-00119), LivingSocial (5:16-cv-00120), Spotify (5:16-cv-00121), and The Washington Post (5:16-cv-00122). A single, former Xerox patent (6,330,549) generally related to limiting software to authorized use is asserted. Perhaps in light of the shaky infringement allegations in Venadium’s first wave of suits, which targeted Bluetooth-enabled devices, these new complaints allege that the defendants’ websites infringe at least claim 1 of the ‘549 patent through their use of cryptographic protocols (e.g. RSA, Diffie-Hellman, and HMAC) during the login process.

Venus Locations LLC has filed four new lawsuits in its sole litigation campaign, asserting a single patent (6,442,485) generally related to translating GPS location data into map data against Actsoft (2:16-cv-00983), InTouch GPS (2:16-cv-00984), Omnitracs (2:16-cv-00985), and Teletrac (2:16-cv-00986). As in Venus’s first round of litigation, which targeted various companies including AT&T, LYFT, Microsoft, SOFTBANK (Sprint), T-Mobile, Trimble Navigation, and Verizon, the NPE’s latest complaints accuse the defendants of infringement through the provision of GPS, navigation, and fleet tracking services. In April 2016, Venus Locations took this campaign over from NovelPoint Tracking LLC, an NPE formed in Texas in January 2012 by Gautham (Gau) Bodepudi, Sanjay Pant, and Lillian Woung, the principals of patent monetization firm IP Edge LLC.

Avaya (2:16-cv-00945), Grandstream Networks (2:16-cv-00946), Polycom (2:16-cv-00948), and Snom (2:16-cv-00949) are the latest companies to be sued in Cypaleo LLC’s sole litigation campaign. The NPE asserts a single, former Xerox patent (5,638,427) generally related to a networked device for monitoring a machine, the device having multiple communication interfaces. These new complaints bring the number of defendants in the campaign over 25; while past infringement allegations focused on smartphones, tablets, and gaming laptops, Bluetooth-enabled phones with USB ports (e.g. Avaya’s 1140E IP Desk Phone, Grandstream’s GXV3275, Polycom’s VVX600, and Snom’s 760 Desk Telephone) are now at issue.

Falkon Treasures LLC, a newly formed NPE based in Texas, has initiated a litigation campaign asserting a single patent (6,233,682) generally related to distributing musical products over the Internet. The entity accuses Adidas (2:16-cv-00653), Barnes & Noble (2:16-cv-00654), Burlington Coat Factory (2:16-cv-00655), GameStop (2:16-cv-00656), and Sun Capital Partners (Limited Stores) (2:16-cv-00657) of infringing the ‘682 patent through websites that offer online gift cards and distribute both electronic and tangible products. While these lawsuits are the first filed by Falkon Treasures, the ‘682 patent has also been involved in two previous litigation campaigns: one started by Batarga LLC in 2015 and another waged by Sharing Sound LLC beginning in 2010.

In mid-2015, the first of eight new NPEs began asserting former Xerox patents in litigation against operating companies. These NPEs collectively filed over 260 patent infringement cases between May and July 2015 alone, all asserting patents received from Xerox earlier this year.

Venadium LLC is the seventh entity this year to begin a litigation campaign asserting patents acquired from Xerox. The entity launched its campaign with suits against Acer, Alcatel-Lucent, Aliph, ASUS, AT&T, Best Buy, BlackBerry, BLU, Coolpad, Harman, HTC, Huawei, Jabra, Lenovo, LG Electronics (LGE), Logitech, Samsung, Sony, and ZTE. Venadium, newly incorporated in Texas in June 2015, is asserting a single patent (6,330,549) related to a key-protected shareable software program.