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ARTICLE · 28 OCTOBER 2026

No Entity, No Ownership, No Standing

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A federal court dismissed a patent infringement lawsuit after discovering the plaintiff never validly obtained ownership of the asserted patent. The assignment was executed to a Texas company 13 days before that company officially existed, rendering the transfer void under state law and leaving the plaintiff without standing to sue.

United StatesIntellectual Property
Juanita DeLoach
Juanita DeLoach
Mark Nelson
Mark Nelson
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Verna IP Holdings, LLC v. Clearly IP Inc., No. 1:26-cv-261 (E.D. Wis. Oct. 13, 2026)

The court dismissed this patent infringement case because the plaintiff never validly obtained the patent it asserted. The patent was originally issued to a New Mexico company, Verna IP Holdings, LLC (“Verna New Mexico”). On Oct. 11, 2023, the parties executed an assignment transferring the patent to a Texas company with the same name (“Verna Texas”). Verna Texas, however, did not officially form that Texas company until Oct. 24, 2023, 13 days after the assignment was executed. Under Texas law, a company does not exist until the state files its certificate of formation, and a nonexistent entity cannot enter into a contract. The court therefore held that the assignment was void and never transferred ownership of the patent to Verna Texas. 

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