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A recent order from Chief Judge Colm Connolly in the U.S. District Court for the District of Delaware may serve as a warning for "patent trolls" — the derogatory term used to describe companies whose sole function is to acquire and then assert patents, often in cases that are questionable on the merits — against filing cases in Delaware going forward.
On Nov. 27, 2023, Connolly issued a scathing 105-page order detailing his inquiry into plaintiffs Nimitz Technologies LLC (Nimitz), Mellaconic IP LLC (Mellaconic) and Lamplight Licensing LLC (Lamplight), three limited liability companies (LLCs) set up as shell companies in a scheme orchestrated by IP Edge LLC (IP Edge), a self-proclaimed patent monetization firm, to purportedly skirt legal liabilities.
Ultimately, in Connolly's opinion, he referred the attorneys of record for each of the plaintiffs in the cases to their respective bar association's disciplinary counsel, and also referred the individuals associated with IP Edge and its affiliate Mavexar LLC (Mavexar) to the Texas Supreme Court's Unauthorized Practice of Law Committee. Nimitz Technologies v. CNET Media, No. CV 21-1247-CFC, 2023 WL 8187441, at *1 (D. Del. Nov. 27, 2023).
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