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Featured Litigation Cases of the Week: June 19, 2019

MaxVal
Posted by MaxVal

In this post, we take a look at a non-practicing entity (NPE) that acquired rights from another NPE and filed a case against Groupon, Inc. We also examine Rosetta’s five patent suits against the world’s leading mobile manufacturers.

NPE Acquired Rights From Another NPE and Filed a Case Against Groupon, Inc.

Plano Encryption Technologies LLC, a non-practicing entity (NPE) is the assignee of U.S. Patent No. 5,991,399 since April 03, 2015. The ’399 patent is titled “Method for securely distributing a conditional use private key to a trusted entity on a remote system abstract.”

Plano has filed more than 20 patent infringement suits against various banking sectors and other online retailers. On March 8, 2019, Plano transferred its patent rights to Honeyman Cipher Solutions LLC, another NPE, existing under the laws of the State of Delaware, but maintaining its principal place of business in Texas.

On June 5, 2019, Honeyman filed their first patent infringement suit (1:19-cv-03754) against Groupon, Inc., nine days before expiration of the asserted patent in the Illinois Northern District Court. The Court is well-known for handling cases in the domain of digital information protection and this case was assigned to Judge Elaine E. Bucklo.

In 2016, Groupon had already faced a patent infringement suit asserting the same product and patent number lodged by Plano in Texas Eastern District Court. That case was dismissed on June 9, 2017 by Judge Rodney Gilstrap upon Groupon’s motion to dismiss the case for improper venue as they maintain their principal place of business in Illinois.

Rosetta’s Five Patent Suits Against World’s Leading Mobile Manufacturers Misses the Mark

Rosetta−Wireless Corporation is a wireless data solution provider for mobile workers like medical executives, sales persons, field service engineers, and many others. These mobile workers get secure access to their email and update their data instantly from anywhere using the wireless services. The firm holds right to U.S. Patent No. 7,149,511 entitled “Wireless Intelligent Personal Server.”

On November 24, 2015, Rosetta lodged a complaint in Illinois Northern District Court stating that LG Electronics Co. (1:15-cv-10608) infringed Claims 1-10, 19-22, 58-65, and 68-71 of ‘511 patent in more than 120 models of LG mobile devices, which involves methods of data transmission over wireless communication, as specified in the ‘511 patent. Rosetta further filed four more patent suits against the world’s leading mobile manufacturers including Apple, Samsung, Motorola, and HTC for the same reason stated above.

On January 27, 2016, an order was entered by Judge Joan H. Lefkow to consolidate all five cases into a single case (1:15-cv-00799) under internal operating procedure 13(e) for the purpose of pre-trial. On February 12, 2016, Apple and Samsung challenged all the infringed claims by filing cases (IPR2016-00616, IPR2016-00622) in the Patent Trial and Appeal Board (PTAB). PTAB declared that the challenged claims of ‘511 patent were proved to be obvious in light of prior art and invalidated them on August 21, 2017.

On June 11, 2019, Rosetta settled terms with all the defendants and submitted a notice of voluntary dismissal with prejudice under Federal Rule of Civil Procedure 41(a)(1)(A)(ii) to avoid heavy damages and to reduce attorney fees.

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