Implicit Networks Case Stayed Pending Reexamination

Local patent licensing company, Implicit Networks, was dealt a blow recently in its bid to enforce patent rights against Intel, AMD, Real Networks, and Sun. Implicit Sued back in February 2008 on U.S. Patent No. 6,629,163, a patent covering various encryption methods using demultiplexing technology for data processing. Implicit Networks alleges Intel uses this patented technology in its Viiv-based products, AMD and Raza allegedly use it in ATI and Alechemy products, Nvidia in its Stant Media software, Sun in its Java Media Framework, and Real in its Helix DNA client.

The party defendants filed a request for ex-parte reexam in December 2008, nearly 10 months after the complaint was filed. Shortly thereafter, they moved to stay the case. On Monday, Judge Robart granted the motion, relying in large part Implicit's delay in prosecuting the case, its grant of multiple extensions of time, its failure to conduct early discovery, its failure to seek even a single deposition after almost a year of pendency of the lawsuit. Further, its status as a "patent licensing company" weighed heavily against its claims of prejudice in view of the requested stay.

This result underscores the need for patent plaintiffs to have a clear plan for enforcement going into litigation and to diligently execute that plan from the first day the complaint is filed. The result here might have been different had Implicit proceeded diligently with discovery. After all, it had ten months before the party defendants even sought reexamination. A lot could have been accomplished in the last 12 months since the case was filed in order to buttress arguments that delay in view of reexamination will cause prejudice.

From Judge Robart's order:

"Finally, Implicit argues that “stays continue to prejudice the non-movant even after the stay has been lifted, particularly in the aspects of litigation that require expediency.” (Resp. at 6.) Here, Implicit has not moved with great expediency. Twelve months have passed since the initial filing, yet only recently has Implicit served interrogatories and requests for production. (See Knox Decl. ¶ 2.) This lack of urgency weighs in favor of granting a stay."

Implicit%20Networks%20Order%20Granting%20Stay.pdf

Patent Case for Wrist Apparatus Stayed Pending Reexamination

Belkin, Inc., a leading manufacturer of accessories for the electronics industry, won its motion to stay a patent infringement case filed by Prokop Labs, LLC for infringement of US 5,566,913, for a "Wrist Apparatus." Several other manufacturers and retailers were sued. The case is styled Prokop Labs LLC v. Staples Inc. (07-1094-MJP). According to the order, the case will be stayed indefinitely pending reexamination of the '913 patent.
staplesReexamOrder.pdf

Judge Settle (Tacoma) Stays Patent Case Pending Reexamination

U.S. District Court Judge, Benjamin Settle (nominated by George W. Bush on January 9, 2007, to a seat vacated by Franklin D. Burgess; Confirmed by the Senate on June 28, 2007, and received commission on July 2, 2007) recently stayed a dispute involving U.S. Patent Nos. 5,993,303 and 6,250,998, patents for hand-held cutting tools.

The dispute is between Pactool International, Ltd and DeWalt Industrial Tool Co., as well as Kett Tool Company (Case No. 06-5367). Judge Settle granted Kett Tool Company's motion to stay in view of a request for reexamination that was filed on December 20, 2007. While the PTO has not yet granted Kett's request for reexamination, Judge Settle stayed the case anyway, calling for a stay until May 1, 2008, and permitting the parties to file a motion to lift the stay in the event the PTO denies Kett's request for reexamination.
PactoolOrderStay.pdf