In the win for Brocade, the U.S Court of Appeals for the Federal Circuit affirmed an order by a district court which ruled in favor of Foundry Networks, a company Brocade acquired in 2008.
Judge Avern Cohn of the U.S. District Court for the Eastern District of Michigan, Southern Division earlier declared invalid claims 14 and 17 of U.S. patent 5,406,260 concerned with a network security system for detection of removal of electronic equipment.
Patent trolls are costing companies a lot of expense in legal fees, driving technology companies often to an early settlement. Rackspace has seen a 500 percent spike in its legal expenses combating trolls.
"Our goal with this lawsuit is to highlight the tactics that IP Nav uses to divert hard-earned profits and precious capital from American businesses," wrote Schoenbaum. "This time, the patent troll should pay us."
Earlier this year, the U.S. District Court for the Eastern District of Texas, Tyler division dismissed a patent infringement suit filed against Rackspace by Uniloc, another patent firm, for failure to allege infringement of a patentable claim.
IPNav, Parallel Iron, and Chrimar Systems could not be immediately reached for comment. IPNav claims on its website that its "integrated, end-to-end solution turns idle IP assets into revenue streams."
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