The Rise Of Reverse Class Actions In The IP World

Seismotech IP Holdings Inc. and Seismotech Safety Systems Inc. (collectively referred to as "Seismotech") have reportedly commenced four reverse class actions to enforce their patent rights.

Two of the class actions relate to classes of defendants comprised of persons who manufactured, distributed, or sold allegedly infringing intelligent thermostats, and two relate to classes of defendants comprised of individuals who purchased those thermostats. According to the Notice of Motion, Seismotech alleges the infringement of Canadian patents: 2,364,081; 2,551,847; 2,551,854; and 2,552,603.

Unlike a conventional class action, in which a representative plaintiff sues a defendant on behalf of a class, a reverse class action contemplates an individual plaintiff suing a group of defendants who are alleged to have engaged in the same wrongful conduct. Rather than a representative plaintiff, reverse class actions require a representative defendant.