Cloud Computing: A New Target for Uniloc

by Shook, Hardy & Bacon L.L.P.
Contact

As Cloud IPQ will continue to demonstrate, a growing but often overlooked trend of NPE patent litigations against cloud computing providers and users has emerged in recent years. While many NPEs target big technology companies like Apple, Google and Microsoft, Uniloc has cast a wider net that includes health service providers, gaming companies and software developers. In less than two years, Uniloc has filed 59 district court cases against 39 defendants in the cloud computing space. The patents asserted relate to cloud software and platforms capable of remote network access and management in fields ranging from business management, software and game security, identity management, critical infrastructure security, and IP rights management. The lawsuits target both cloud computing providers (e.g., Nexon, Blackboard, Netsuite, Nutanix, etc.) and users (e.g., Riot Games, AthenaHealth, H&R Block, etc.).

Out of the 59 patent cases involving nine cloud computing patents (none of which has even reached the stage of setting a trial date) over 45% have already terminated, with the longest case lasting less than a year and a half. With two exceptions, all of the terminated cases ended in likely settlements, while two cases filed against ADP and Amazon ended in 101 invalidity judgments knocking out five patents. In fact, four of the five patents were invalidated just last week in an Eastern District of Texas ruling. Those four patents are asserted in 38 of the 59 district court cases, of which 16 were settled before this recent invalidity judgment. And for all 59 Uniloc cases and patents, only 13 IPRs and three declaratory judgment actions were filed. Of those 13 IPRs, only three have reached an institution decision, and none has reached a final resolution.

For Uniloc, this is a tried and true pattern. While Uniloc started off as a research and development firm with some software products, today it appears they have no products for sale. Uniloc’s earlier website with product information has been disabled, and the current website is empty (See below). Uniloc has also acquired a large number of patent portfolios through assignments. In fact, Uniloc is one of the top patent buyers in the U.S. market in recent years, earning the distinction as the fourth highest patent buyer in the second quarter of 2017.

Uniloc’s Old Website

Uniloc’s New Website

Much like the NPE that it is, Uniloc drastically increased the number of district court cases it filed in the last few years. Between 2012 and 2017, including the cases above involving cloud computing, Uniloc filed a total of 310 patent cases. Only one of those cases has gone to trial, and only five have had infringement or invalidity findings. Not surprisingly, 96% of those cases were filed in the Eastern District of Texas (a known favorite of NPEs until TC Heartland).

 

In the last two years alone, Uniloc filed over 160 district court cases, three quarters of which were terminated within a year (most likely per settlement). This is over half of the patent cases Uniloc has filed since it came into being in 1999. This trend is on par with the current litigation tactics of NPEs, namely, mass litigation filings, multile patents asserted, and quick settlements. And now cloud computing providers and users have joined the ranks of the many technology companies and fields targeted by NPEs like Uniloc.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Shook, Hardy & Bacon L.L.P. | Attorney Advertising

Written by:

Shook, Hardy & Bacon L.L.P.
Contact
more
less

Shook, Hardy & Bacon L.L.P. on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.