Posts Tagged: "litigation"

IP litigation report shows downward trends in patent, file sharing copyright and IPR cases

One aspect of the recent Lex Machina report that should jump out to anyone who has closely followed the patent litigation sector over the past few years is that the high percentage of all patent cases filed at the U.S. District Court for the Eastern District of Texas (E.D. Tex.) has dropped significantly. During 2015, E.D. Tex. received 43 percent of all patent infringement cases filed in American district courts. This dropped off steeply to 30 percent, or 291 cases filed, during 2016’s first quarter.

Source Code Review: Mitigating Risks and Reducing Costs

Source Code Review is the most powerful tool in a litigator’s war chest in patent and trade secrets cases. An important consequence of the judicial climate shifting farther away from business methods and closer to technically complex IP is that receiving parties now face a higher burden of proof and subsequently higher legal costs. Not only are receiving parties now required to be more diligent prior to a case filing but they also end up spending extra thousands of dollars reviewing millions of lines of code to successfully formulating their infringement arguments. A significant cost and exposure risk can be avoided simply by a diligent assessment on both sides as to what source code needs to be produced to the receiving party.

Questions Corporate Counsel Should Ask to Get Maximum Value from E-Discovery

The volume of electronic data and the costs involved in collecting, culling and reviewing electronically stored information (ESI) are critical considerations in any litigation, large or small. Parties to a lawsuit are inevitably faced with significant litigation costs, due in large part to the burden of responding to overly broad discovery requests relating to ESI. To maximize the value of the e-discovery process, corporate counsel should ask how outside counsel plans to efficiently analyze ESI and reduce the expenses associated with e-discovery. Here are some specific questions to consider.

Printed Matter Doctrine Implicates Matter That Is Claimed for What it Communicates

The Court held that printed matter must be claimed for what it communicates, and it is only afforded patentable weight if the claimed informational content has a functional or structural relation to the substrate. In this case, the Court held that the Board erred in finding that the origins of the web assets made them printed subject matter, because nothing in the claim called for the origin to be part of the web asset.

Fitbit alleges patent infringement in growing market for fitness tracking devices

On November 2, 2015, San Francisco-based Fitbit Inc. filed a Section 337 complaint with the International Trade Commission (ITC) against AliphCom (d/b/a Jawbone) and BodyMedia, Inc. (Investigation No. ITC-337-3096). In a parallel proceeding in the U.S. District Court for the District of Delaware, Case No. 1:15-CV-00990, Fitbit alleged infringement of three patents assigned to Fitbit—namely, U.S. Patent Nos. 8,920,332 (titled Wearable Heart Rate Monitor); 8,868,377 (titled Portable Monitoring Devices and Methods of Operating Same); and 9,089,760 (titled System and Method for Activating a Device Based on a Record of Physical Activity). According to the district court complaint, Jawbone’s products associated with components of its UP series of trackers indirectly infringe the patents-at-issue. Fitbit hopes that it will be successful in preventing the import and sale in America of wearable activity tracking devices sold by Jawbone by requesting the ITC to issue a limited exclusion order and a cease and desist order.

3D Conversion Patents take Center Stage in Hollywood Visual Effects Case

Two of the biggest post-production/3D-conversion companies are preparing for battle in a patent infringement suit that is sure to create enemies and allies in the world of film post-production. Prime Focus Creative Services Canada filed a patent infringement suit against Legend3D in the U.S. District Court for the Central District of California. In the March 30, 2015 complaint, Prime Focus World requested a jury trial, an injunction banning Legend3D from performing the patented process, a finding of willful infringement and unspecified monetary damages. Each company has some of the biggest blockbusters in recent memory.

Judges Increasingly Allow Discovery of Private Facebook Content

The court ruled that the relevance of her photographs greatly outweighed Nucci’s minimal privacy interest. Nucci argued that she had a legitimate expectation of privacy in her photographs since her Facebook profile was set to “private.” However, the court was not convinced and explained that photographs posted on a social media site are neither privileged nor protected by any right of privacy, regardless of the privacy settings established by the user. After all, the court pointed out that the very nature of these social media sites is to share photographs with others, so a user cannot later claim a legitimate expectation of privacy.

Patent Abuse or Genius? Is Kyle Bass Abusing the Patent System?

Time and time again throughout the legislative history post grant proceedings were explained as being a faster, low-cost alternative to litigating validity disputes in Federal District Court. That being the case, it would seem extremely odd that any petitioner could bring a post grant challenge to a patent when that petitioner would not have standing to sue to invalidate the patent in Federal District Court. However, the statute does say that a person other than the patent owner can file a petition to institute an inter partes review.

Proactively Defending Against Patent Lawsuits

By keeping an eye on stealth and dangerous patents managing the future risk presented is much easier. By proactively monitoring the landscape of published applications and granted patents you may be able to engage in design work-arounds to avoid the most dangerous patents. You may also be able to actively identify patents and pending patent application that are ripe for licensing or acquisition at an early stage, perhaps before the patent even issues or before the patent works its way into the hands of a litigious patent owner. Even if you cannot acquire rights through licensing or acquire all dangerous patents, if you have a meaningful patent footprint that gives you the right to do a variety of things you may well be able to defend based upon having broad based rights to engage in what it is that you are accused of doing.

Patent Troll Epilogue – A Fractured Fairy Tale Part 5

How we deal with the problems uncovered herein is something for deliberate consideration, not the activity of an automaton. For example, this paper demonstrates that patents asserted by inventors and inventor based companies generally do not fare as well as patents of other entities. However, in the United States none of us would want to stop all such entities from trying to market and license their ideas. Most of us would agree that the independent inventor has been the heart of innovation in the United States for a very long time. We have too many memories of the stories of the Wright Brothers, Chester Carlton of Xerox fame, of Eli Whitney and the cotton gin, of Edison, and of Farnsworth — the farmer boy who invented the television.

A Factured Fairytale Part 4: More Patent Troll Myths

As can be seen from Fig. 12, 25% of the cases brought against the retailer were actually brought by Producer companies. The other 75% of cases could indeed be classified as NPE suits. However, of these suits, 30% were by independent inventor or independent inventor related companies, and the other 45% of cases were brought by other NPEs. Interestingly of the “other NPEs”, we found all of the patents asserted against this retailer were patents originally obtained from Producers. Of these patents, one-third came from big corporate America and the remaining two-thirds from smaller Producing companies. That means nearly 65% of this retailers troubles, which it directly attributes to “trolls” asserting bad patents, are actually related to patents that derived from Producing companies. Of its cases that was resolved, pacer suggests none were tried and each was mutually dismissed within 4 months to 13 months.

A Factured Fairytale Part 3: More Patent Troll Myths

Myth 4: Patents of NPEs fare much more poorly in reexamination proceedings brought during litigation than those of Producers. Truth: When one includes independent inventors and independent inventors in the mix of NPEs, the patents being asserted by NPEs may be said to fare slightly more poorly in reexamination proceedings than those patents asserted by Producers. However, if one removes these independent inventor entities from the mix of NPEs, the patents held by non-independent inventor based NPEs were seen to do at least as well, if not better, than the average asserted patent of the Producers which was likewise thrown into reexamination during litigation.

A Fractured Fairy Tale: Separating Fact & Fiction on Patent Trolls

Our first move was to understand who was being identified as “Trolls” by the authorities who have been writing articles so long on the topic. We were surprised to find upon extensive searching on the Internet that we could not find a single research paper which provided any exhaustive list of the huge numbers of “Trolls” which were said to be stalking corporate America. Instead we found many papers making their analyses based upon proprietary databases that were not available to the public, and thus the veracity of the designation “Troll” was not subject to any validation. We decided to do some investigative reporting, contacting a number of the authors of the so-called troll stories. We were surprised over and over again to be given the same explanation – the lists of trolls they were referencing in the articles were considered “trade secrets”.

Why Bash Individual Inventor-Owned or Controlled Companies?

Patent Freedom’s data shows that roughly 56% of all NPE suits are brought by companies that are owned or controlled by individual inventors — the original assignees of the patents involved. If you include companies in which individual inventors receive a substantial portion of any license fees or other recoveries, the number is more like 80%. So, why all this hysteria about the evils of entities enforcing and licensing patents, rather than those manufacturing products? The answer is because the debate (if you want to call it that) serves the interests of a group of high-tech companies on the West Coast and some foreign companies who, together, have thrown hundreds of millions of dollars at political groups to influence Congress and even the President.

Opinion: Regrettable White House Intervention on Patent Trolls

What’s regrettable is that the White House didn’t wait for such empirical data on patent litigation and instead rehashed the findings of discredited studies of PAE-related lawsuits and their purported economic consequences. Specifically, I mean the infamous $29 billion victims are said to have paid to patent trolls in 2011, a number that has echoed around the Internet and made it into congressional debate despite its dubious origins. The number was produced by a study that failed to adequately define just what a troll is – even universities and many manufacturers were included – and then harvested its data not from a reputable polling or academic institution but from a company that has a dog in the patent fight and profits from fueling fears about infringement lawsuits.