Fresh From the Bench: Latest Precedential Patent Cases

CASE OF THE WEEK

Backertop Licensing LLC v. Canary Connect, Inc., Appeal Nos. 2023-2367, -2368, 2024-1016, -1017 (Fed. Cir. July 16, 2024)

Our case of the week focuses on the inherent power of the district courts to investigate fraud and misconduct. The Chief Judge of the District of Delaware commenced an investigation against patent monetization firms that brought several lawsuits in Delaware, and ultimately ordered a Texas-based representative to appear in person to testify. When the representative failed to appear, the Court issued a contempt order and sanctions. This appeal followed. Notably, the underlying cases had both been dismissed. Accordingly, the Federal Circuit appointed an attorney from Hogan Lovells to represent the interests of the District of Delaware for purposes of the appeal.

Over the preceding year and a half, the Chief Judge of the District of Delaware had identified potential attorney and party misconduct in dozens of related patent cases. The plaintiffs in these cases were limited liability companies that appeared to be associated with IP Edge, a patent monetization firm, and Mavexar, an affiliated consulting shop. The district court developed concerns that arrangements between the firms might have concealed from the court the real parties in interest. The district court was also concerned about whether those parties were perpetrating a fraud on the court.

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ALSO THIS WEEK

Koss Corporation v. Bose Corporation, Appeal Nos. 2022-2090, 2023-1173, -1179, -1180, -1191 (Fed. Cir. July 19, 2024)

The Federal Circuit handed Bose a win in appeals from inter partes reviews involving three patents owned by Koss Corp. related to wireless earphone technology. While the IPRs and instant appeal were pending, a district court in California had found all asserted claims to be patent-ineligible under 35 U.S.C. § 101 in a separate infringement case Koss had brought against Plantronics, Inc. The California court had dismissed Koss’s complaint with leave to re-plead; Koss had filed an amended complaint narrowed to certain specific claims; and after Plantronics’ second motion to dismiss was briefed but before it was decided, Koss had stipulated to dismiss its case against Plantronics with prejudice...

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Miller Mendel, Inc. v. City of Anna, TX, Appeal Nos. 2022-1753, -1999 (Fed. Cir. July 18, 2024)

In an appeal and cross-appeal from the United States District Court for the Eastern District of Texas, the Federal Circuit addressed three main issues. First, the Federal Circuit addressed the district court’s grant of the City of Anna’s Rule 12(c) motion. At issue was whether the district court had considered materials beyond the pleadings in deciding the motion, and whether the motion should have been granted. Regarding the district court’s considerations, the Federal Circuit found that the district court had been presented with a declaration outside the pleadings, but had not relied on the declaration—nor was the declaration needed for the court’s analysis.

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Editors:

Nika Aldrich, IP Litigation Group Leader, Schwabe, Williamson & Wyatt, P.C.

Jason A. Wrubleski, Shareholder

Contributors:

Mario E. Delegato