A Blog About Intellectual Property Litigation and the District of Delaware


Entries for tag: Mavexar

Travel
Dino Reichmuth, Unsplash

We wrote last month about the "mansplaining brief," which caught some eyes around town when it (and the declaration attached to it) accused the Court of "gender harassment and discrimination."

We set out the full background in our post, but generally the Court ordered the sole member of a Mavexar-related LLC to attend a hearing here in Delaware.

She then filed a motion for reconsideration offering numerous objections, including among other things that (1) the Court had no power under FRCP 45 to compel her attendance, since she lives in Texas; and (2) that she is a working mother and therefore unable to travel to Delaware.

(She also said that she "feels harassed" by …

Hercules Slaying the Hydra

Judge Connolly’s new order provides a concise summary of the Mavexar timeline and announced the date of a long-delayed evidentiary hearing in the Creekview case.

Mark your calendars for Friday, 7/21 at 9:00AM in Courtroom 4B. This hearing was originally slated for December 6, 2022, but it never happened.

Last fall, Judge Connolly ordered a series of evidentiary hearings in approximately a dozen cases to determine whether LLC plaintiffs had complied with his standing order.

According to the Court in his newest order, the first hearing in that series, involving Nimitz, Mellaconic, and Lamplight:

raised serious concerns that the parties may have made inaccurate statements in filings with the Court; that counsel, including Mr. Chong, may have …

"Sure, I had my LLC sue a bunch of people in Delaware, but I didn't think the Court would actually make me GO there." Andrew Russell, CC BY 2.0

I guess our post about the Mavexar hearing last week was remiss in failing to talk about the "mansplaining brief." I've had a couple of people ask me about it. Here is the background and some quick thoughts.

Chief Judge Connolly Orders Mavexar-LLC's Sole Member to Testify In Person

The short version of the leadup: Mavexar is an entity that creates LLCs to assert patents against tech companies for quick settlements, often in Delaware. The LLCs take all of the risk, and Mavexar keeps 90-95% of the profits while hiding its …

Backertop's—or Mavexar's—Two Attorneys
Backertop's—or Mavexar's—Two Attorneys AI Generated

The Court held a lengthy hearing in the Backertop cases today. These are Mavexar-related actions and, if you recall, they involve a Mavexar attorney and his wife, who he appointed as the sole member of a Mavexar patent assertion entity.

How a Patent Assertion Entity is Born

Some of the Court's questions focused on exactly what Mavexar does, and confirmed that they operate basically as set out in the earlier hearings.

Here, from the lawyer's perspective, Mavexar attorneys reached out and said that Mavexar wanted to start several litigation campaigns, and asked whether the attorney was interested. They said that they would figure out what entity would actually assert the patents later.

In …

TV
Possessed Photography, Unsplash

Chief Judge Connolly issued a memorandum order in the Backertop case today. We talked previously about how the plaintiff in Backertop is an LLC whose sole member is a paralegal who is married to an attorney who works at Mavexar, who gets just 5% of the proceeds of litigating the patents owned by the LLC (the rest goes to Mavexar).

Following a hearing last year, the Court ordered production of various documents, and ordered the owner of the LLC to appear again for a hearing on June 8. She asked to attend remotely due to other obligations.

Today, Chief Judge Connolly denied her request, but rescheduled her appearance for July (the June 8 hearing will still …

Artist's depiction of an attorney on the phone with the Wall Street Journal, trying frantically not to say anything embarassing.
Artist's depiction of an attorney on the phone with the Wall Street Journal, trying frantically not to say anything embarassing. AI Generated

The Wall Street Journal posted a nice article today summarizing Chief Judge Connolly's efforts against Mavexar, with comments from myself and Maya Steinitz. Here's how they summarize the situation:

A federal judge in Delaware is on a campaign to eliminate hidden funding of intellectual-property lawsuits against companies, a crackdown that is roiling the patent-law industry.

They go on to give a solid overview of what has happened so far, and they mention the upcoming hearing that the Court set for June 8.

It's good to see this in the spotlight—it's an important issue that people care about!

The Mavexar crab is starting to sweat.
The Mavexar crab is starting to sweat. AI-Generated

It looks like activity is picking up again in the Mavexar cases. If you haven't followed all of our coverage so far (I don't blame you!), here is a summary of where we left off.

Today, Chief Judge Connolly issued an order denying a Mavexar entity's motions to set aside or stay compliance with the Court's March order requiring them to produce various documents, including potentially privileged documents.

He found that Supreme Court precedent shows that the District Court retains jurisdiction regarding collateral issues—like this one—even after a dismissal. According to the Court, that remains true regardless of whether the issues are raised by the parties or by the Court itself (as …

I don't know if Air Canada actually flies here.
I don't know if Air Canada actually flies here. John McArthur, Unsplash

There were two litigation-funding related hearings set forth tomorrow in Chief Judge Connolly cases. Both were canceled today.

The first was in the Nimitz cases, C.A. Nos. 21-1362, 21-1855, and 22-413. As we discussed last week, the Court set this hearing after Nimitz failed to produce the broad formation- and funding-related discovery that the Court required from it.

Later last week, the plaintiff in that case produced the required documents. Today, the Court canceled the hearing so that it would have time to review the recent production:

ORAL ORDER: Whereas (1) on Thursday, April 6, 2023 at 4:23 p.m., Mr. Pazuniak submitted to the Court documents …

Litigation funding has become a popular topic this year, deserving of its own synopsis. For those who missed out on the recent blow-by-blow events as they happened, relive the saga below.

This is a bit lengthy. You've been warned. Pour yourself a cup of tea first and get comfortable.

Story Plot Points
Emily DiBenedetto

The Exposition: Discovery on Litigation Funding is a Mixed Bag

To set the stage, let's discuss litigation funding disputes in the District of Delaware before the most recent developments. Over the past few years, discovery disputes regarding litigation funding issues have produced mixed results. The Court sometimes grants motions to compel litigation funding materials, and other times denies them, and may (rarely) conduct an in camera review to evaluate …

When I was young, I had a pet crab. Not a hermit crab, but a big honking giant land crab. He lived in a terrarium in my room and I would wave at him every day when I left for school. He would wave back. This is the best part of having a crab.

I Miss You Too Legs!
I Miss You Too Legs! Alejandro Alas, Unsplash

What you might not know about crabs, is that they're smart. They are curious creatures that will spend their whole day wandering around foraging. They will slowly stack rocks in one corner of their tank to make a ramp. They will specifically make this ramp in the corner of the tank that has the inlet for the water filter. They will (somehow) remove the clamps holding the top down and seize freedom at any cost. It's pretty much like the velociraptors in Jurassic Park.

Longtime readers will have guessed that this story is leading to a development in the Mavexar saga. And readers, I will not disappoint you. Just hours ago, Judge Connolly issued a memorandum order in the Nimitz case setting ...