A Blog About Intellectual Property Litigation and the District of Delaware


Entries for tag: Litigation Funding

A Creek View
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We've posted a lot about the Mavexar hearings. Earlier this month, two of the plaintiffs in cases that had hearings scheduled, Creekview IP LLC and Waverly Licensing LLC, filed nearly-identical petitions for mandamus.

The petitions are linked below. In each, the petitioner seeks to reverse Chief Judge Connolly's order scheduling an evidentiary hearing to investigate compliance with the Court's standing orders:

Petitioner respectfully requests that the Court issue a writ of mandamus reversing the Memorandum Order and ending the judicial inquisition of Petitioner.

The petitions argue that the Court lacked Article III standing, because the cases had been dismissed, that Chief Judge Connolly abuse his discretion in issuing the standing order, and that Congress has …

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Late breaking news in the Mavexar saga today.

Very Brief Background

Nimitz technologies was one of the Mavexar-related entites that appeared at a hearing last month before Judge Connolly, where they were ordered to:

"produce to the Court" (1) their communications with Mavexar and IP Edge regarding (a) Nimitz's formation, acquisition of patents, and potential liability for asserting those patents in these cases, (b) the 328 patent, and (c) the initiation and settlement of the cases Nimitz filed in this Court; (2) retention letters and/or agreements between Nimitz and [plaintiff's attorney's] firm; (3) monthly bank statements for any and all bank accounts held by Nimitz for the time period during which it filed the 11 complaints …

Hasnain Sikora, Unsplash

The Federal Circuit made its second foray into the Mavexar (I think) saga on Friday when it ruled on a new petition for Mandamus is In re: Swirlate IP LLC.

The plaintiff in Swirlate filed a petition for mandamus on November 30, seeking to stop a scheduled December 6 hearing.

I should note at the outset the while the Swirlate case seems to mimic the M.O. of a Mavexar entity—a Texas LLC with a single managing partner with no apparent connection to the patent—the Court has not yet held a hearing on the issue, so we can't say conclusively that the matter is related. It was, however, scheduled for a hearing in December that that sole …

Money
Pepi Stojanovski, Unsplash

Last week, Chief Magistrate Judge Thynge issued an opinion addressing a motion by accused infringers to compel the patentee to produce litigation funding discovery and opinion letters relating to the patents-in-suit.

While it involves litigation funding discovery, this case is a bit different from the recent Mavexar hearings. Here, the patentee is MHL Custom, Inc. who, it appears, is a practicing company and not an NPE. Beyond that, the case is still active (unlike some of the Mavexar cases) and the discovery is sought by the defendant, not the Court itself. In other words, this is a more typical ruling.

But the opinion is still notable. The Court granted the accused infringers' motion for three categories …

I'm not sure what to make of the name
KWON JUNHO, Unsplash

We mentioned the other day that Backertop Licensing LLC, one of the Mavexar-related LLCs, had filed two new cases in the Central District of California. We talked about how the C.D. Cal. requires disclosure of parties with a pecuniary interest, and how Backertop had not disclosed Mavexar.

Yesterday, the HTIA filed an amicus brief at the Federal Circuit that pointed this situation out (citing our post!):

In the past week alone, an entity that appears related to Mavexar (Backertop Licensing, LLC) filed suit without disclosing Mavexar’s financial interest, despite a local rule requiring disclosure of “all persons … and corporations … that may have a pecuniary interest in the outcome of the case.”

Also yesterday, Backertop filed new ...

Artist's depiction of amicus attorneys standing guard outside of the District of Delaware
Artist's depiction of amicus attorneys standing guard outside of the District of Delaware AI-Generated, displayed with permission

There has been so much activity in the Mavexar cases this week that it's hard to keep up. Over the last two days, various parties have requested leave to file a total of six amicus briefs in response to the Mavexar petition for a writ of mandamus in the Nimitz case, and the respondent filed their brief as well.

All of the briefs were great, and many repeat some of the same arguments. I thought it might be worthwhile to take a spin through them and mention a few notable or unique points in each.

(If you need an overview, check out our …

Charging Bull
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Well this clears things up.

Background of the Mandamus Petition

We've talked about how Chief Judge Connolly has held multiple hearings in the Mavexar actions, examining the owners of several patent assertion LLCs and discovering that the real party in interest seems to be Mavexar LLC. The witnesses testified that Mavexar recruits people to serve as plaintiffs, but then runs the litigation themselves—including seemingly all substantive decisions, even settlement.

After the most recent hearings, Chief Judge Connolly issued a series of orders requiring production to the Court of various communications between the LLCs, their attorneys, and Mavexar. One of the entities involved, Nimitz, immediately filed a petition for a writ of mandamus to stop the Court's …

Space Fighters
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I saw this case come in just now, and thought it was worth a post. Today, Power Integrations, Inc. brought an action against Waverly Licensing LLC, Mavexar LLC, Array IP LLC, and IP Edge LLC, alleging that those companies had engaged in a harassment campaign against Power Integrations over alleged patent infringement, and seeking a declaratory judgment of non-infringement.

According to the complaint, Waverly Licensing, LLC—by itself—sued Power Integrations late last month in the Western District of Texas. That case is still pending, according to the docket, and is assigned to Judge Robert Pitman (not Judge Albright). The answer deadline is set for January.

Now, Power Integrations brought a DJ action here in Delaware against …

If you're going to have to face an <a href='#' class='abbreviation' data-bs-toggle='tooltip' data-placement='top' title='Non-Practicing Entity'>NPE</a> patent suit anyway, C.D. Cal. is a nice place to go for hearings.
If you're going to have to face an NPE patent suit anyway, C.D. Cal. is a nice place to go for hearings. Venti Views, Unsplash

I heard over the holiday break that one of the Mavexar-related entities, Backertop Licensing LLC, has continued to file suits, this time in the Central District of California. I also heard that they did not disclose Mavexar as an entity with an interest in the case, despite a rule requiring them to do so.

Yep, That Looks Like Backertop

I checked PACER, and it indeed looks like an entity …