RPX Weekly Newsletter

An Update on Patent Litigation, the Patent Marketplace, and New Cases

Monday, August 20, 2018

Patent Litigation Feature

In “Long-Marooned” Case, Federal Circuit Holds That Voluntarily Dismissed Complaints Trigger IPR’s One-Year Time Bar

The Federal Circuit has held that the voluntary dismissal of a district court complaint without prejudice does not prevent a lawsuit from triggering the statutory time bar for inter partes review (IPR). In an opinion issued on August 16 in Click-to-Call Technologies v. Ingenio, that central holding was reduced to a brief footnote that was decided 10-2 by the full Federal Circuit, while a three-judge panel ruled that the Patent Trial and Appeal Board’s (PTAB’s) contrary interpretation of the statute governing the time bar (35 USC Section 315(b)) was erroneous.

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Facebook Wins Dismissal of $100M Mirror Worlds Technologies Suit as Plaintiff’s Parent Reports Disappointing Q2 Financial Results

A New York judge has dismissed Mirror Worlds Technologies, LLC’s (MWT’s) suit against Facebook. On August 11, District Judge John G. Koeltl granted summary judgment for the defendant, ruling that it had not infringed three document streaming patents through certain features of the Facebook platform, including the Timeline and News Feed features. The ruling comes as the plaintiff’s parent, publicly traded NPE Network-1 Technologies, Inc., reported a net loss and a drop in revenue for Q2 2018 as the result of an adverse ruling last year in the NPE’s Power over Ethernet campaign.

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Patent Watch

Quarterhill’s Q2 Highlights Include Multiple Patent Acquisitions Under Its “Partner Model”

Publicly traded NPE Quarterhill Inc. released its Q2 earnings on August 9, reporting revenue of $20.4M, with over $73M cash on hand as of June 30, 2018. While licensing revenue fell to $3.97M (from $12M during the same period last year), the company inked at least one license with an operating company during the quarter, also picking up patents from MagnaChip and Panasonic. While Quarterhill did not file any new litigation in the US during Q2, its CEO told investors in an earnings call that his company’s “level of litigation activity remains constant”, with new and ongoing suits against Kingston, LG Electronics, Sharp, Sony, VIZIO, and others, “just to name a few”.

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Another Assignment from Sharp to Longhorn IP Recorded with the USPTO

According to USPTO records, in early August, Sharp transferred five US patents and four foreign counterparts to an affiliate of Longhorn IP LLC. This latest transfer follows an assignment between the same parties in May—a month that also saw Longhorn acquire patents from Intellectual Ventures LLC (IV).

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July 2018 RPX Acquisitions Update

RPX completed a number of acquisitions on behalf of its patent risk management network in July 2018. The acquisitions occurred within the E-Commerce and Software market sector and the automotive space.

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New Patent Litigation

Guyzar Dodges an Alice Attack, Leaves a $75K Damages Ask Hanging, and Files Yet More Cases

A couple of months after its last wave of suits ended, Guyzar LLC, an apparent affiliate of monetization firm IP Edge LLC, has filed another one. The NPE has sued AirBNB (1:18-cv-01256), America Movil (TracFone Wireless) (1:18-cv-01258), eBay (Stubhub) (1:18-cv-01257), and Nike (1:18-cv-05599) over the use of the OAuth protocol on their websites. The sole patent-in-suit generally relates to using a separate certification server to authenticate a first server without revealing confidential information about the user. While seeking a default judgment against a defendant in the last round, also targeted for its website operation, Guyzar—ordered to justify a $75K damages ask untethered to either a lost profits or reasonable royalty theory—voluntarily dismissed the case instead.

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Huawei Added to Lemaire Campaign in Wake of Microsoft Settlement

Huawei (2:18-cv-00353) is the latest defendant to be sued in the sole litigation campaign of inventor-backed Lemaire Illumination Technologies LLC over three patents generally related to controlling and powering a solid-state light source such as a light-emitting diode (LED). The new complaint follows a dismissal and settlement in a case brought against Microsoft last November. The NPE’s first case, filed against LG Electronics, was dismissed with prejudice just before that, while the only other active defendant in the campaign, HTC, answered Lemaire’s complaint in the Eastern District of Texas this past May. Since its inception in July 2016, Lemaire’s campaign has targeted color-adjusted camera flash systems within the defendants’ smartphones.

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F2VS Avoids Dismissal in One Case, and Files Two More, in Mesh Networking Campaign

F2VS Technologies, LLC has filed suit against Advantech (B+B Smartworx) (1:18-cv-05406) in the Northern District of Illinois and Digi International (0:18-cv-02242) in the District of Minnesota, asserting the same three wireless mesh networking patents at issue throughout this, its sole litigation campaign. The defendants are accused of infringement through the provision of networking equipment and IoT platforms implementing either B+B’s “SmartMesh IP” or Digi’s “BEE/RF and Dig/XBEE3/RF” technology. On July 31, District Judge Richard G. Andrews denied a motion to dismiss the second amended complaint filed against ARRIS (Ruckus Wireless) for pleading inadequacies, noting that, based on a series of recent decisions on the issue, the Federal Circuit’s “view is that very little is required in order to plead a claim of patent infringement”.

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Corydoras Tags ASUSTek

Inventor-controlled Corydoras Technologies, LLC has added a case against ASUSTek (2:18-cv-00351) to its litigation campaign, asserting a familiar set of seven patents, all broadly related to various aspects of a mobile communications device that displays a mirror image of an object taken from a camera facing the direction of the display. The new suit joins open cases against Sony, filed just last month, and ZTE, filed in April but subsequently stayed, pending resolution of a remand from the Federal Circuit in a separate case against ZTE that vacated denial of a motion to dismiss for improper venue in the Eastern District of Texas. Throughout its campaign, Corydoras has focused its infringement allegations on phones and tablets with a display-side camera.

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