Posts Tagged: "Eastern District of Texas"

Behind the Scenes on Octane Fitness and Fee-Shifting

I think there was certainly a level of abuse prior to patent trolls from larger companies that weren’t scrupulous trying to sue smaller companies and using the high cost of patent litigation to get things they weren’t entitled to. The only difference was these smaller companies that were being abused didn’t have any lobbying efforts before Congress. So when the whole patent troll issue came to a fever pitch the biggest companies in America were being held hostage to it. Apple, Microsoft, Facebook, LinkedIn, all of the most notorious companies that are just great technologies were being sued by smaller entities. And how do these smaller entities get economic leverage over these big companies? They did it because they could file 40 lawsuits at a time so the incremental cost beyond case number one didn’t cost anything. And they would just hold out for these nuisance value settlements and that’s why even the largest companies in America were being held hostage. How Octane changed that is now that you have a realistic chance of getting attorneys’ fees, now you have that chance now the bigger companies can stand up to a troll.

Safeway defeats Kroy IP Holdings on summary judgment in EDTX patent case

After two and a half years of hard-fought litigation, Kroy IP Holdings has been defeated in a patent case brought against grocery retailer Safeway, Inc. In two comprehensive opinions issued May 29 by Judge William C. Bryson—a senior Federal Circuit judge sitting by designation in the Eastern District of Texas—the court granted Safeway’s motions for summary judgment and invalidated Kroy’s U.S. Patent No. 7,054,830 on several grounds. Not only did Judge Bryson find the ‘830 patent to be abstract and ineligible for patent protection, he also found the patent to be anticipated and obvious in view of Safeway’s cited prior art. Judge Bryson entered judgment for Safeway the same day, and ruled that as the prevailing party, Safeway is entitled to its costs.

Strict venue provisions for patent litigation added to Innovation Act

Issa’s amendment changes the language so that a party bringing a patent infringement suit where the defendant has its principle place of business, where the defendant has a physical presence, or where the patent owner has a meaningful physical presence due to research and development or manufacturing. At first glance these venue provisions seem reasonable because they would curtail the extreme forum shopping that does go on in patent cases, as witnessed in the Eastern District of Texas. On closer consideration, however, this provision could create problems for those patent owners who are not bad actors that seek to abuse the system or take advantage by only filing in favorable, remote forums.

East Texas Jury Finds Google Infringed, $125 MM at Stake

A federal jury in the Eastern District of Texas returned a verdict on Saturday, January 18, 2014, following a week-long trial presided over by the Honorable Rodney Gilstrap, that found that Google infringed SimpleAir’s U.S. Patent No. 7,035,914. The services accused of infringing the ‘914 patent were the Google Cloud Messaging (GCM) and Android Cloud to Device Messaging (C2DM) services. Those services are used by Google to process and send instant notifications for Android applications, such as Facebook, Twitter, and Gmail. The damages issue will be decided by a separate jury in a second trial limited to the issue of damages. SimpleAir has announced that they will seek damages in excess of $125 million for Google’s infringement in the damages retrial.

Federal Circuit Orders Transfers Verizon out of Eastern Texas

With respect to Verizon et al, the petitioners moved to transfer the case to the Northern District of Texas, Dallas Division, which is approximately 150 miles away from the Eastern District of Texas, Marshall Division. The motion was initially denied by a Magistrate Judge. In his decision, the Magistrate agreed with the petitioners that the Northern District of Texas, Dallas Division would likely be more convenient for the parties and the witnesses, and he even noted that a number of party witnesses resided within 100 miles of Dallas and no witness resided within 100 miles of Marshall, Texas. Let’s let that sit for a moment, shall we? It was determined that the Northern District would be more convenient for the parties and witnesses and that not a single witness lived within 100 miles of the Eastern District of Texas, yet the motion to transfer was denied?

US Supreme Court Accepts Microsoft Appeal in i4i Case

Earlier today the United States Supreme Court granted certiorari in Microsoft Corporation v. i4i Limited Partnership, with Chief Justice John Roberts taking no part in the decision or petition. This comes only days after the United States Patent and Trademark Office refused to grant reexamination of the patent in question. Given Microsoft doesn’t even have strong enough prior art to provoke a reexamination by the USPTO it seems absurd to think they could have been victorious even if the district court reviewed the patent claims de novo and without any presumption.

Apple and Others Sued for $60 Billion+ for False Patent Marking

These so-called false marking cases arise from 35 USC § 292, and were given new life thanks to a Federal Circuit decision from December of 2009 — The Forest Group Inc. v. Bon Tool Co. — which quite correctly and quite literally interpreted § 292. As a result, large companies are getting sued every week, and recently Americans for Fair Patent Use sued Apple, Sprint, Verizon and Samsung in the United States District Court for the Eastern District of Texas alleging that the companies are selling products that have expired patent numbers on them, making them the latest high profile targets of this new false marking patent troll. See AFPU v. Appel complaint. One source estimates that if successful the lawsuit could cost Apple alone a total of $60 billion.

E.D. of TX Rejects Design Patent Point of Ornamentality Test

In a recent decision, the Eastern District of Texas has clarified the proper role of functionality in claim construction for design patents. By statute, design patents must be directed to “ornamental designs for an article of manufacture.” As a result, courts have struggled with how and when functional aspects of a design should be considered when construing a patent claim.…

Patent Trolls: A Conspiratorial Story of Symbiosis

I can’t tell you the reason why companies choose to be targets, but I think I have a compelling idea. Those companies that are the ones who complain about patent trolls are also the ones who continually are on Capitol Hill lobbying for patent reform, which in their mind is really only appropriate when it makes issued patents easy to challenge and much more difficult to get. These are the folks who built their corporate empires on patents, growing from small company to mega-giant company while building an enormous intellectual property portfolio heavily dominated with patents that gave them a competitive advantage. Now that they have their market dominant position they really don’t need the patents so much because they have their market power to insulate them from competition, so they want to make it harder for the next individual inventor, start-up tech business or small business to innovate, protect and grow up the corporate food chain.

Nokia Sue Apple in New Rocket Docket, the W.D. of Wisconsin

There is more than meets the eye to Nokia selecting the Western District of Wisconsin. According to a study done by Stanford Law Professor Mark Lemley, the average patent litigation is resolved in .56 years, just over 6 months, in the Western District of Wisconsin, which ranks first in terms of time to resolution for patent infringement actions. The Western District of Wisconsin also ranks first in terms of average time to trial, with the average being .67 years, or just 9 months to trial in patent infringement actions. Also, 7.4% of cases proceed to trial, which ranks third.

Rader as Trial Judge Hands Google & AOL Victory in ED of Texas

Sitting by designation in the United States District Court for the Eastern District of Texas, soon to be Chief Judge of the Federal Circuit, Judge Randall Rader, granted summary judgment to Google Inc. and AOL LLC in the case brought by Performance Pricing, Inc., which alleged infringement of U.S. Patent No. 6,978,253. Judge Rader ruled that there was no infringement and summary judgment was appropriate because there were no genuine issues of fact in dispute. More specifically, Rader determined that AdWords does not contain a price-determining activity.

Courts Reluctant to Stay Patent Litigation Pending Reexam

Over the last several months large law firms have opened Reexamination Practice Groups and even starting blogs dedicated solely or in part to exploring the issues presented by Reexamination.  And as I am writing, PLI is presently hosting day 1 of a two day Reexamination and Reissue program at its San Francisco headquarters. The program titled Reissue and Reexamination Strategies…

i4i Victorious at CAFC, Microsoft Word Enjoined Jan. 11, 2010

Earlier today, the Federal Circuit issued its decision giving i4i an early Christmas present and delivered a big fat lump of coal to Microsoft. The Federal Circuit has upheld Judge Davis’ decision with one small exception. The Federal Circuit found the 60 day period in which the injunction was to become effective too short, instead preferring to give Microsoft 5 months to comply with the permanent injunction, which means that the permanent injunction will go into effect on January 11, 2010.

Twitter Sued for Patent Infringement in S. District of TX

Three weeks ago, TechRadium, Inc., a Texas Corporation with its principal place of business in Sugar Land, Texas, sued Twitter, Inc., a Delaware corporation with its principal place of business in San Francisco, California, alleging the infringement of US Patent No. 7,130,389, issued on October 31, 2006, and US Patent No. 7,496,183, issued on February 24, 2009, and US Patent…

Patent Injunction: Microsoft Ordered to Stop Selling Word

Yesterday, Leonard Davis, a United States District Court Judge in the Eastern District of Texas, ordered Microsoft Corporation to stop selling Word, an order that becomes effective in 59 days (i.e., 60 days from yesterday).  The permanent injunction issued after the conclusion of a patent infringement lawsuit brought by i4i Limited Partnership, a litigation where Microsoft was found to infringe…