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.

Northern District of Texas Chief Judge Barbara M.G. Lynn just slapped MagnaCross LLC and its litigation counsel with $5K in sanctions for “filing a brief that contained sections copied and pasted from a brief in another case, which referenced different and irrelevant claims” of the sole patent-in-suit. The court did so while invalidating under Alice the only claim from the patent actually asserted in the case, which has hit more than 100 defendants since October 2014. The defendant, OKI Electric Industry (OKI Data), has filed a quick motion for attorney fees, adding this campaign to list of those under the IP Edge LLC umbrella to face an Alice-Octane one-two punch.

For several years running, IP Edge LLC has been responsible for the most defendants added to NPE litigation campaigns throughout each calendar year. 2019 was no different. Last year saw roughly 400 defendants added to campaigns launched by plaintiffs associated with the Texas monetization firm, the campaigns spanning a wide range of technologies and now involving suits filed (and typically litigated in file-and-settle fashion) in myriad districts. A quick glance at the NPE’s January filings suggests that 2020 will see more of the same, while a recent Alice ruling may have just ended one of IP Edge’s 2019 campaigns.

During March 2017, RPX completed 14 deals on behalf of its patent risk management network, obtaining rights to the patents involved either to end litigation against its members or to prevent it in the first place. March acquisitions occurred within the following market sectors: Automotive, Consumer Electronics and PCs, Media Content and Distribution, Mobile Communications and Devices, Networking, and Semiconductors.

IP Edge LLC affiliate MagnaCross LLC has filed a fresh round of lawsuits, capping off a wave of year-end litigation by other NPEs also controlled by the prolific monetization firm. The latest MagnaCross complaints target Avaya (2:16-cv-01461), Comtrend (2:16-cv-01462), EnGenius (2:16-cv-01463), Huawei (2:16-cv-01464), Juniper Networks (2:16-cv-01465), Siemens (2:16-cv-01466), and Sierra Wireless (2:16-cv-01467), accusing the companies of infringing a single patent (6,917,304) generally related to wireless data transmission through the provision of wireless access points or routers.

Somaltus LLC has resuscitated its battery service system campaign with new suits against Apple (2:16-cv-00758), ASUS (2:16-cv-00758), Lenovo (2:16-cv-00758), Samsung (2:16-cv-00758), Sony (2:16-cv-00758), and Toshiba (2:16-cv-00758). The complaints assert a single patent (7,657,386) generally related to determining and optimizing the life of a battery and relaying test data to a user. Earlier cases in the campaign targeted automakers (asserting the ‘386 patent against Ford, Nissan) and battery service system providers (asserting a related patent, 8,131,487, against Auto Meter Products, Bosch Automotive Service Solutions, Cadex Electronics), while infringement allegations in the new complaints focus on the battery operations within the defendants’ smartphones and other portable computing products.

Over the past two months, four NPEs with apparent connections to patent monetization firm IP Edge LLC have collectively filed nearly 50 patent infringement suits against operating companies. This report provides an overview of each of those four NPEs’ campaigns, which canvass a broad spectrum of defendants in multiple market sectors. Active defendants in these campaigns range from networking companies (Allied Telesis, Sophos) to retailers (1-800-Flowers, Staples), from electronics companies (Hisense, TCL) to wireless carriers (AT&T, T-Mobile).

Following the dismissal of 30 defendants–some as a result of settlement–and after nearly a year without filing any new suits, MagnaCross LLC lodged 17 new complaints this week, suing ADTRAN (2:16-cv-00507), Allied Telesis (2:16-cv-00509), D-Link Systems (2:16-cv-00512), Belkin International (2:16-cv-00510), CradlePoint (2:16-cv-00511), Sophos (2:16-cv-00515), TRENDNET (2:16-cv-00518), WatchGuard (2:16-cv-00519), and others. MagnaCross initiated this campaign in October 2014 and has since sued over 45 companies, mostly device makers and wireless carriers. While these latest suits involve the same data transmission patent (6,917,304) asserted by MagnaCross throughout this campaign, the NPE appears to have shifted its focus from mobile devices and base stations to wireless routers.

MagnaCross LLC’s second round of filing in its only litigation campaign includes twice as many suits as the original round of filing from October 2014. Twenty new defendants, including wireless providers AT&T, Sprint, T-Mobile, and Verizon, as well as mobile device manufacturers Acer, ASUS, Fuhu, Kyocera, Panasonic, and Razr have been added to the campaign. As in the first round, the new complaints assert a single patent, 6,917,304, which relates to wireless data transmission. The accused products in the campaign are smartphones and tablets made or sold by the defendants. In particular, the capability to transfer data between a smartphone or tablet and a smart device, such as an activity tracker or smartwatch, is at issue in the suits.

Magnacross LLC launched its first campaign last week with ten infringement suits filed against Best Buy, Insignia (BlackBerry), Fujitsu, HTC, LGE, Microsoft, Motorola Mobility, Samsung, Sony, and ZTE. The patent-in-suit relates to wireless transmission of data between a computing device and local data sensors through asymmetric division of a communications channel (6,917,304). Magnacross alleges that defendants are infringing the ‘304 patent by using smartphones and tablets to receive data transmissions from wireless mobile headsets and low-energy smart devices (such as activity trackers, smartwatches, and proximity/locator devices). The patent-in-suit originated with a car repair and tools company, Snap-On Equipment Ltd., and was assigned to TT IP—an entity with ties to Erich Spangenberg—in February 2008. Shortly after Magnacross was incorporated in Texas in March 2014, it acquired the ‘304 patent from TT IP. This appears to be the first time the patent has been asserted in litigation. 10/15, Texas Eastern District Court, 2:14cv00953, 2:14cv00954, 2:14cv00955, 2:14cv00956, 2:14cv00957, 2:14cv00958, 2:14cv00959, 2:14cv00960, 2:14cv00961, 2:14cv00962