NPE Plaintiff’s Failure to Seek Preliminary Injunction Weighs Against Stay Pending CBM Review

The court granted defendant's motion to stay a NPE plaintiff's infringement action pending CBM review because the early stage of the case, lack of undue prejudice, and reduction of the burden of litigation weighed in favor of a stay. "Plaintiff claims that it is seeking to monetize its patent and that Defendants intend to continue selling their accused product during any CBM review. Plaintiff asserts that the stay will prejudice its potential market share even if it prevails in the CBM proceedings. However, Plaintiff has not sought any preliminary injunctive relief to suggest that it has any stake in this case other than alleged money damages, which are available even if this case proceeds after CBM review. Further, Plaintiff points to no actual evidence of its intended operations, or how any such monetization would make it competitive to Defendants."

Xilidev, Inc. v. Boku, Inc. et al, 3-13-cv-02793 (CASD July 1, 2014, Order) (Sabraw, J.)