While we were on break, Judge Connolly issued an opinion in one of the lesser-covered, but most interesting, of the Mavexar suits.
Power Integrations, Inc. v. Waverly Licensing LLC, C.A. No. 22-1554-CFC (D. Del), is one of my favorite complaints ever. Waverly -- allegedly one of the Mavexar companies -- sued Power Integrations for infringement in Texas right before Judge Connolly held his first hearing in the Mavexar matters in November of 2022.
In a truly inspired move, Power integrations then filed a DJ complaint in Delaware (its state of incorporation) alleging that "Defendants have engaged in a broad and aggressive campaign to harass and threaten many companies, including Power Integrations, with assertions of patent infringement liability . . . ." Id. at D.I. 1. Notably, they managed to get this complaint on file by the end of November 2022.
The complaint is well worth a read, but the best bit is definitely when they point out that Waverly's official address is actually an empty shelf in a Staples:
In an assignment filed with the U.S. Patent and Trademark Office for the ’246 patent, defendant Array IP LLC identified itself as having the same address that defendant Waverly Licensing LLC lists in the Waverly-PI complaint as its principal place of business (3333 Preston Road, Suite 300, Frisco, Texas 75034). (Id.) However, that address is actually a Staples store . . . Moreover, the specific box number that defendant Waverly occasionally lists in its court filings as its “principal place of business” within that “suite” is an open shelf.
Id. at paragraphs 12-13.
There are pictures and everything, it's really great.
This complaint prompted all of the DJ defendants -- which included Waverly, Mavexar itself, and several others -- to provide covenants not to sue in an effort to moot the issue. The defendants moved to dismiss the action on various grounds including lack of subject matter jurisdiction. Power Integrations opposed the dismissal.
Last month Judge Connolly granted their motion to dismiss, in an opinion that is also a fun read for followers of the saga:
Based on the allegations in the first eight pages of the 13-page Complaint . . . Defendants have perpetrated a scheme to defraud Plaintiff Power Integrations, Inc. and other companies by engaging in a "broad and aggressive campaign" of filing in this Court and other district courts thousands of frivolous patent suits using "sham" entities that "effectively [make] 'judgment proof[]' the real parties in interest," IP Edge and Mavexar . . . One might expect from reading these allegations that the remaining pages of the Complaint would include a RICO count with mail or wire fraud predicates. But instead, the single count alleged in the Complaint seeks a declaratory judgment of noninfringement . . . since each Defendant has promised never to sue Power Integrations for infringement of that patent, there is no case or controversy that would allow me under Article III of the Constitution to entertain this suit . . . .
Power Integrations, Inc. v. Waverly Licensing LLC, C.A. No. 22-1554-CFC, D.I. 34 at 2 (D. Del. Mar. 12, 2024).
Given the result, despite the Court's unsurprising decision not to sua sponte create a count for fraud, I'm surprised we haven't seen any similar DJ counts in the district. It's certainly a fun tactic, and apparently also effective.
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