Cisco, Motorola Solutions Accuse Patent Holder of Fraud

Cisco Systems Inc., Motorola Solutions Inc. and Netgear Inc., makers of wireless networking equipment, sued a company they said is improperly using threatened legal action to obtain patent-licensing fees from cafes, convenience stores and other commercial establishments.

Innovatio IP Ventures LLC, a business that allegedly licenses patents obtained from the chip-maker Broadcom Corp., and its agents, are engaging in racketeering, Cisco and the other companies alleged in a revised complaint filed today at the U.S. courthouse in Chicago.

“Defendants are conducting this pattern and scheme through, among other things, fraud, deceit, misrepresentation, and other forms of unfair and unlawful conduct,” according to the 81-page document.

Matthew McAndrews, an attorney for Chicago-based Innovatio, said he couldn’t immediately comment on the allegations.

The new allegations augment a lawsuit filed by Cisco and Motorola Solutions against Innovatio last year seeking preemptive judgments of invalidity and non-infringement of 17 patents.

That case was administratively consolidated with more than 20 others in a multidistrict case assigned to U.S. District Judge James Holderman in Chicago.

Innovatio denied many of the Cisco and Motorola allegations in an answer it filed to their initial complaint in July and countersued claiming infringement of its patents.

The case is In Re Innovatio IP Ventures LLC Patent Litigation, 11-cv-9308, U.S. District Court, Northern District of Illinois (Chicago).

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