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ARTICLE · 21 MARCH 2012

Can The Antitrust Laws Be An NPE’s Secret Weapon?

One firm believes so. On March 7, Cascades Computer Innovation LLC (CCI) launched another salvo in the high-tech patent infringement wars—but not for infringement.

United StatesAntitrust/Competition Law

One firm believes so. On March 7, Cascades Computer Innovation LLC (CCI) launched another salvo in the high-tech patent infringement wars—but not for infringement. Rather, it sued various smartphone and tablet makers for conspiring not to negotiate with it. In antirust lingo, defendants entered into a "concerted refusal to deal." According to the complaint, the defendants refused to negotiate for a patent license with CCI, which holds the rights to 38 patents, at least one of which claims to facilitate the installation and use of applications on Android-based devices.

CCI is a patent holder who is a "non-practicing entity" ("NPE"), i.e., someone that does not manufacture or produce products covered by the patents they own or control. Sometimes pejoratively referred to as "patent trolls," NPEs seek to monetize patents by licensing them to entities that make the products covered by the patent, enforcing the patent rights through patent infringement actions, or

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