Nov 08, 2022 17:00:00

A patent troll boss company that earns money in patent litigation is discovered

A company that tries to obtain a huge amount of damages and license fees by filing a lawsuit against a company or person that infringes its own patent is called a '

patent troll '. In the state of Delaware in the United States, there are many court cases by patent trolls, and judges have even issued permanent orders against patent trolls. At the public hearing on November 4, 2022, the existence of a boss company that pulls the strings of patent troll companies was revealed.

Judge Connolly Issues New Standing Orders, Including Requirement to Disclose Litigation Funding | IP/DE
https://ipde.com/blog/judge-connolly-issues-new-standing-orders-including-requirement-to-disclose-litigation-funding/

A Wild Hearing: Chief Judge Connolly Flips Over Rock, Finds Mavexar LLC Crawling Around, Controlling Patent Litigation and Giving Hapless Patent Owners Just 5-10% | IP/DE
https://ipde.com/blog/2022/11/04/a-wild-hearing-chief-judge-connolly-flips-over-rock-finds-mavexar-llc-crawling-around-controlling-patent-litigation- and-giving-hapless-patent-owners-just-5-10/

Delaware Judge Connolly issued a standing order in the patent litigation on April 18, 2022. The order 'discloses the contract for the financing of the lawsuit,' 'discloses the names of all persons and companies that have an interest in the parties,' and 'promptly submits supplementary explanations if the required information changes.' 'Prove the names and citizenships of all individuals and businesses that have an interest in the parties within 14 days of initiating the action.'

In response to this order, three companies, ' Lamplight Licensing LLC ,' ' Nimitz Technologies LLC ,' and ' Mellaconic IP ,' which have been pointed out to be patent troll companies, have been subject to a trial regarding compliance with the disclosure order of the agreement on the procurement of litigation funds. received.

The court had ordered the presence of representatives of these companies and attorneys at the hearing, but only one attorney from Lamplight Licensing LLC was present. According to the attorney, Lamplight Licensing LLC does business with a company called ' MAVEXAR LLC ,' which is an 'agent' for Lamplight Licensing LLC and 'advising' on patent litigation.

In addition, the business address disclosed by Lamplight Licensing LLC points to a post office box, and Mr. Connolly pointed out that it is not appropriate for the post office box to indicate the principal place of business.

According to the testimony of the presidents of Nimitz Technologies LLC and Mellaconic IP, MAVEXAR LLC offered a deal to ``file a lawsuit against the ``target'' prepared by MAVEXAR LLC. The ``target'' prepared by MAVEXAR LLC agreed to ``lost the lawsuit'' instead of ``receiving 5% to 10% of the settlement amount associated with the lawsuit'' by establishing its own

LLC .

MAVEXAR LLC, the company behind these patent troll companies, allegedly benefited from selecting attorneys and managing 'target' selection, litigation strategy, and settlements.

The permanent order issued by Mr. Connolly is clarifying the actual situation of patent troll companies, and it is said that public hearings will be held in the state of Delaware in the future.