'Waive' Goodbye: Developments in Patent Litigation
In recent years, defendants in patent litigation have made gains in the courts.
August 21, 2017 at 03:52 PM
7 minute read
The seemingly endless war between certain types of patent owners (often socalled “nonpracticing entities” or NPEs) and certain types of defendants (typically corporations perceived to have deep pockets) has been fought on many fronts over the last decades. Such plaintiffs file sketchy complaints, asserting patents of dubious validity, in courts that are perceived as a bit too friendly to patent owners. Legislation that is thought to tip the scales in favor of one side or the other is often introduced. It is seldom enacted.
In recent years, defendants have made gains in the courts in three important areas. First, in 2015, “Official Form 18″ was removed from the federal rules. It had listed the skimpiest requirements for pleading patent infringement, often relegating defendants to guess what they'd done wrong, and inoculating plaintiffs from motions to dismiss.
Second, in Alice Corp. Pty. Ltd. v. CLS Bank Int'l, 134 S. Ct. 2347 (2014), the Supreme Court ruled that many inventions directed to certain nontechnological areas such as business methods were not eligible for protection under the patent laws. As the socalled Alice defense proliferated, it came to be accepted that the defense could be raised under Fed. R. Civ. P. 12(b)(6) on a motion to dismiss for failure to state a claim. See, e.g., Content Extraction & Transmission v. Wells Fargo Bank, 776 F.3d 1343 (Fed. Cir. 2014).
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Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
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Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
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