Broadsign International, LLC v. T-Rex Property AB, 1-16-cv-04586 (NYSD January 10, 2018, Order) (Swain, USDJ)
Friday, January 12, 2018
Threat of Litigation Against Customers Does Not Create Actual Controversy With Supplier
The court granted defendant's motion to dismiss plaintiff's declaratory relief action for lack of an actual case or controversy stemming from defendant's proposed license agreement or litigation against plaintiff's customers. "Even if [defendant] did 'demand' that Plaintiff consider the license agreement it proposed 'to prevent [the initiation of] further patent infringement actions against [plaintiff's] customers,' as Plaintiff asserts, there is no indication of any discussion or threat of litigation against Plaintiff. Nor, drawing all reasonable inferences in favor of Plaintiff, do Defendant’s actions constitute an 'aggressive enforcement strategy' warranting a finding of subject matter jurisdiction here, as Defendant’s strategy 'appears to involve suing . . . users,' including [plaintiff's] customers, 'not . . . suppliers,' such as [plaintiff]."