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Patent Ownership Dispute Puts Acacia Networking Campaign in Jeopardy

February 26, 2021

In January 2020, Acacia Research Corporation subsidiary Monarch Networking Solutions LLC kicked off a new networking campaign, suing Charter Communications and Cisco in the Eastern District of Texas—litigation that now faces trouble due to a dispute over the ownership of the asserted patents. In late 2019, Slingshot Technologies LLC sued Acacia, one of its directors, and Transpacific IP Group Limited, from which Acacia acquired the patents, alleging before the Delaware Court of Chancery that the parties improperly prevented Slingshot from acquiring the patents despite holding an option to purchase them. Among other claims for relief, Slingshot seeks to rescind the sale to Acacia and allow Slingshot to purchase the patents itself, prompting Acacia to seek dismissal of that cause of action. That battle still hangs over the Texas litigation, as Cisco has now renewed a motion to stay the case, arguing that the Delaware action could deprive Monarch of standing. While the NPE has previously countered that rescission is impossible under Delaware law, a recent decision by the state court indicates otherwise.


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