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Judge Robinson Grants Motions to Dismiss for Lack of Standing Based on Lack of Ownership of Patents-in-Suit

Judge Robinson recently granted motions to dismiss for lack of standing filed by Amazon, Zappos, and Expedia in a patent infringement case brought by Walker Digital. See Walker Digital, LLC v. Expedia, Inc., et al., C.A. No. 11-313-SLR, Memorandum Op. at 1 (D. Del. June 19, 2013). The standing dispute stemmed from a settlement agreement between Walker Digital and eBay, which the defendants alleged transferred all rights to the patents-in-suit to eBay and terminated Walker Digital’s constitutional standing to pursue the litigation. Using standard principles of contract interpretation, Judge Robinson found that the settlement agreement at issue “ostensibly includes two separate conveyances of rights from plaintiff to eBay” but that both grants of patent rights included the patents-in-suit. Id. at 9. Furthermore, “[g]iven the complexity of plaintiff’s patent portfolio and the sophistication of the parties to the Settlement Agreement, the court relie[d] on the unambiguous granting language rather than the equivocal parol evidence [and an inconsistent warranty provision of the agreement] to divine what the parties meant to accomplish through the Settlement Agreement.” Id. at 11-13.

Walker Digital, LLC v. Expedia, Inc., et al., C.A. No. 11-313-SLR, Memorandum Op. (D. Del. June 19, 2013).

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