Allegations of Concealment and Misconduct in Delaware Patent Cases
In a significant development, U.S. District Judge Colm Connolly has referred Texas-based patent monetization firm IP Edge and its legal representatives to various authorities, urging investigations into their conduct regarding a series of patent cases in Delaware.
Concealed Ownership and Violations of Professional Conduct Rules
Judge Connolly revealed that patent plaintiffs Nimitz Technologies, Mellaconic, and Lamplight Licensing, all backed by IP Edge, concealed that IP Edge was the “de facto” owner of the patents involved in the cases. Additionally, he asserted that the attorneys representing these plaintiffs violated professional conduct rules.
Undisclosed Monetary Interest and Call for DOJ Investigation
The judge also uncovered evidence suggesting that France Brevets, a government-owned investment fund that closed its operations last year, had an undisclosed monetary interest in the litigation. Consequently, he called upon the U.S. Department of Justice to investigate whether failing to disclose such interests and other relevant parties violated federal law.
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Unauthorized Practice of Law and Potential Criminal Prosecution
Judge Connolly referred IP Edge attorneys to the Texas Supreme Court in a separate move, alleging they practiced law without proper authorization. This referral opens the possibility of criminal prosecution in the state.
Plaintiffs Dismiss Lawsuits Amid Technology Patent Coverage
The plaintiff companies, Nimitz Technologies, Mellaconic, and Lamplight Licensing, voluntarily dismissed their patent lawsuits last year. These lawsuits covered a spectrum of technology related to computers and cell phones.
Denials and Neutral Consideration
George Pazuniak of O’Kelly & O’Rourke, the representative for Nimitz, maintained that the plaintiffs’ attorneys had not engaged in any wrongdoing or unprofessional conduct. He expressed relief that the issues were now being transferred to neutral bodies for impartial consideration.
Silence from IP Edge and Defendant Representatives
Despite the gravity of the allegations, representatives for IP Edge, including attorneys Jimmy Chong and Andrew Curfman representing Mellaconic and Lamplight, did not immediately respond to requests for comment. Similarly, defendants such as BuzzFeed and Bloomberg, named in the lawsuits, refrained from commenting.
Shell Companies and Allegations of Loyalty Breach
In his statement, Judge Connolly characterized the plaintiff companies as “relatively unsophisticated” shell entities created to shield IP Edge from liability. He asserted that the attorneys representing these companies breached their obligation of providing “undivided loyalty” to their clients, as their actions were driven by IP Edge’s interests rather than their clients.
Investigation into Potential Federal Law and PTO Violations
Emphasizing the seriousness of the situation, Judge Connolly referred the cases to the Justice Department and the Patent and Trademark Office for investigations into whether IP Edge violated federal law or PTO rules by making false statements to a federal agency.
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