Case is dismissed for lack of standing
Enhanced Security Research, LLC v. Juniper Networks, Inc., C. A. No.09-871-JJF, July 20, 2010.
Farnan, J. Defendant’s motion to dismiss for lack of standing is granted.
The inventor assigned all of his rights to the patents-in-suit to Network Security Associates, a corporation he formed and wholly owned. That assignment was never recorded and later rescinded. The patentee then assigned all rights, title and interest to plaintiff, an LLC he formed. Plaintiff entered into a purchase agreement with Security Research Holdings. Because of doubts about the inoperability of the first assignment, the patentee, Network Security Associates, executed a confirmatory agreement assigning all rights, title and interest to plaintiff. The later two assignments were recorded with the PTO. The court concludes that the purchase agreement provided Security Research Holdings with all substantial rights to the patents-in-suit such that plaintiff lacks standing to bring this action on its own. Under the terms of that agreement, plaintiff retained title to the patents and possessed the rights to use, exploit and enforce them. However, the purchase agreement provided that Security Research Holdings has the exclusive right to initiate, maintain, manage, resolve, conclude and settle all arrangements and activities in connection with licensing, litigation, enforcement efforts or proceedings. Plaintiff needs the prior written consent to assert its patent rights. To the extent plaintiff retains rights in the patents, they are circumscribed by the purchase agreement.
