The Federal Circuit has overturned a 2018 noninfringement verdict for HP and HP Enterprise (HPE) against Network-1 Technologies, Inc., ruling on September 24 that a Texas jury’s finding on that issue depended on an erroneous claim construction and remanding for further proceedings. However, the appeals court also reversed and remanded a ruling by District Judge Robert W. Schroeder III that the defendants were estopped from challenging the validity of the asserted Power-over-Ethernet (PoE) patent due to the defendant’s joinder to another company’s inter partes review (IPR), a decision that had resulted in the reversal of that same jury’s finding that the patent was invalid. Rather, the Federal Circuit ruled that HP and HPE could not “reasonably . . . have raised” their district court invalidity arguments—which were different than the grounds raised in the IPR—under its recent decision in Facebook v. Windy City Innovations, which in part bars the joinder of new issues to an already instituted IPR.
A Texas judge has upheld a noninfringement verdict for HP and HP Enterprise (HPE) in a Network-1 Technologies, Inc. lawsuit but overturned the jury’s finding of invalidity as to the asserted Power-over- Ethernet (PoE) patent (6:13-cv-00072). In a sealed August 29 order addressing a variety of post-trial motions, as well as issues from a May 2018 bench trial, District Judge Robert W. Schroeder III denied Network-1’s motion for a new trial on infringement yet granted judgment as a matter of law of validity, ruling that the patent is not invalid as obvious as found by the jury. Publicly traded Network-1 previously disclosed to investors that the newly revived patent-in-suit had been responsible for the majority of its licensing revenue prior to the invalidation of the claims asserted against HP and HPE.
The Federal Circuit has upheld a Patent Trial and Appeal Board (PTAB) decision that a media content identification patent held by publicly traded Network-1 Technologies, Inc. is not invalid over certain prior art (2017-1379). In a two-page order issued on January 23, the court affirmed the PTAB’s October 2016 holding in a covered business method (CBM) review filed by Google (CBM2015-00113) that the patent at issue is not invalid as obvious, ruling that the Board did not err in its construction of a key claim term.
Following reported settlements over the past year with Apple, Dell, Sony, and others, publicly traded Network-1 Technologies, Inc. announced this week that it has reached an agreement with Polycom, ending its litigation against the company over the NPE’s 6,218,930 patent. In a press release issued on October 4, Network-1 reported that under the terms of the settlement, Polycom has agreed to license the patent and pay a license initiation fee of $5M “for past sales of its Power over Ethernet (“PoE”) products” plus ongoing royalties based on its sales of PoE products. To date, Network-1 has sued over 20 companies for alleged infringement of the ‘930 patent, which generally relates to detecting PoE compatibility of networked devices. Active defendants in the campaign currently include Avaya, Canon (Axis Communications), Hewlett Packard Enterprise (HPE), and Juniper Networks.
Network-1 Security Solutions filed twelve separate suits against Allied Telesis, Avaya, Dell, D-Link, HP, Huawei Technologies, Juniper Networks, Polycom, NEC, Samsung, ShoreTel, and Sony alleging infringement of patents related to delivering power over Ethernet cables. Since August 2005, Network-1 has filed three prior suits against over 20 defendants, including Cisco, 3Com, Dell, and HP. In July 2010, Network-1 reached settlement agreements with Cisco, 3Com, Extreme Networks, and Netgear over similar litigation. The patent asserted in the prior suits originated with Merlot Communicationsbefore being assigned to Network-1 Security Solutionsin November 2003. 1/17, Eastern District of Texas, 6:2013cv00069; 6:2013cv00070; 6:2013cv00071; 6:2013cv00072; 6:2013cv00073; 6:2013cv00074; 6:2013cv00075; 6:2013cv00076; 6:2013cv00077; 6:2013cv00078; 6:2013cv00079; 6:2013cv00080.
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