On March 30, 2026, United States District Judge Paul G. Gardephe (S.D.N.Y) denied Defendant New Jersey Transit Corporation’s (“NJ Transit”) motion for summary judgment on all of Plaintiff Bytemark, Inc.’s (“Bytemark”) claims. Bytemark, Inc. v. Xerox Corp., et al, No. 17-cv-1803 (S.D.N.Y. March 30, 2026).
Bytemark provides a secure mobile ticketing platform for transit, tourism, and events. Bytemark has sued several defendants, including NJ Transit, for patent infringement, breach of contract, trade secret misappropriation, unfair competition, and unjust enrichment. Bytemark alleges that two defendants, after entering into confidentiality agreements with Bytemark, used Bytemark’s intellectual property and trade secrets to secure a contract with NJ Transit for mobile ticketing and cut Bytemark out of the bidding process. Id. at *2–4.
In October 2022, NJ Transit filed a motion for summary judgment, arguing that NJ Transit is “an arm of the State of New Jersey” and thus “not subject to suit under the Eleventh Amendment of the United States Constitution.” Id. at *12.
Judge Gardephe disagreed, relying on a March 2026 Supreme Court decision. In Galette v. New Jersey Transit Corporation, the Supreme Court held that “NJ Transit is not an arm of New Jersey and thus is not entitled to share in New Jersey’s interstate sovereign immunity.” 164 S. Ct. 854, 863 (2026). As Judge Gardephe explained, the opinion reasoned that New Jersey structured NJ Transit as a “legally separate entity” “responsible for its own judgments,” which “forecloses any argument that NJ Transit is immune from suit in federal court under a theory of sovereign immunity.” Bytemark, at *12–13 (quoting Galette, 164 S. Ct. at 871–72).
Accordingly, Judge Gardephe denied NJ Transit’s motion for summary judgment and vacated the Court’s order staying the case pending resolution of the summary judgment motion.
Judge Gardephe also denied as moot Defendants’ motion to stay pending inter partes review because the Patent Trial and Appeal Board has issued final decisions for Defendants’ two petitions. Id. at *13–14.
