Since late last year, a growing web of plaintiffs associated with IP Edge LLC have become tangled in compliance issues over heightened disclosure requirements imposed by Delaware Chief Judge Colm F. Connolly in a pair of April 2022 standing orders. Now, Judge Connolly has rejected motions from two more IP Edge-linked plaintiffs, Backertop Licensing LLC and Mellaconic IP LLC, that sought to overturn a related set of production orders requiring them to disclose reams of information on their corporate control, assets, and legal representation. Not only did those decisions reject objections related to jurisdiction and allegations of overbreadth, Judge Connolly also ominously suggested that their claims of attorney-client privilege are undercut by the crime/fraud exception—which allows the disclosure of communications between a party and counsel that relate to legal advice used in furtherance of illegal activity.

Over the past several months, several plaintiffs affiliated with patent monetization firm IP Edge LLC have sparred with Delaware Chief Judge Colm F. Connolly over disclosure rules imposed in his courtroom. As this “Series of Extraordinary Events” has unfolded, those plaintiffs have found themselves under close scrutiny due to their apparent failure to disclose information on their management and control in compliance with those heightened rules. Now, one of those entities, Backertop Licensing LLC, has urged the court to halt an order mandating the wide-ranging production of information on those topics until its challenge of that order gets decided—while its attorney is looking for a way off of its cases altogether.

As former top filer IP Edge LLC struggles to extricate itself from the courtroom of Delaware Chief Judge Colm F. Connolly, last April’s standing orders remain in force: one of those orders requiring litigants to disclose details related to any nonrecourse funding arrangements with third parties; and another requiring all “nongovernmental joint ventures, limited liability corporations, partnerships or limited liability partnerships” to include in disclosure statements “the name of every owner, member and partner of the party, proceeding up the chain of ownership until the name of every individual and corporation with a direct or indirect interest in the party has been identified”. Both orders continue to surface information that otherwise would have remained private.