Patent Exclusion Suit Dismissed on Standing Grounds

Southern District of New York Judge Denise Cote dismissed antitrust claims filed by Siti against a nonprofit patent-holding company and telecommunications giants Verizon Communications Inc., Cisco Systems Inc. and Ericsson Inc.  The plaintiff alleged that the defendants set up the holding company to o prevent small companies from selling or licensing their patents at fair market value.  Through the holding company, the plaintiff alleged, the defendants conspired to fix prices and refused to buy patents from some owners.  The court held that Siti lacked standing to challenge the defendants’ practices because it had previously sold the allegedly affected patents.  Siti’s continuing interest in the patents under a revenue sharing agreement was, according to the court, too attenuated to establish antitrust standing.

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