Fundamental Innovation Systems International LLC v. Anker Innovations Ltd. et al DC

Until recently, private equity-backed NPE Fundamental Innovation Systems International LLC (FISI) had squarely focused its USB charging campaign on device makers, hitting roughly 15 such companies over former BlackBerry patents since late 2016. FISI may now be shifting gears. This past week, the NPE sued a group of car makers and parts suppliers over the provision of USB media ports and vehicles equipped with such devices.

Signs abound that wealthy investors are doubling down on patent litigation. Take for example the new suits recently filed by two NPEs holding large portfolios of former operating company patents, each backed by a private equity firm or hedge fund. As a recent RPX analysis shows, the economic risk posed by these types of NPEs is significant—and may be increasing.