A Defendant Cannot Breach a Settlement Agreement That Does Not Exist

April 17, 2022

Patent monetization firm IP Edge LLC has historically favored a file-and-settle strategy, usually dismissing its district court cases before any substantive litigation occurs. Yet amid signs that IP Edge may be moving away from this strategy, a recent order against its affiliate MagnaCross LLC showcases the potential perils of slapdash litigation. Late last month, Northern District of Texas Chief Judge Barbara M.G. Lynn issued a ruling that slammed MagnaCross with $5K in sanctions for copy-and-pasting sections of an opposition brief to an Alice motion, which the court also granted in that same order—invalidating the sole asserted patent claim. Notably, the decision also rejected the plaintiff’s last-ditch attempt to construe an email sent by opposing counsel as an agreement to settle the case.

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