Innovatio IP's WiFi Liitgation Driving the Reform Conversation
Shorty after acquiring several key patents related to WiFi routers and wireless networking devices in 2011, Innovatio IP Ventures has been suing companies for patent infringement and sending demand letters to thousands of small business, including restaurants, coffee shops, and hotels. As the demand letters continued several device makers, including Cisco, Motorola, and Netgear, alleged fraud and breach of contract claims against Innovatio.
While the presiding judge has rejected the fraud claims and has yet to hear the breach of contract argument, he has set a royalty rate of 9.56 cents per chip in an effort to encourage a settlement between the two sides. Having caught the attention of Washington the ruling on this case is expected to set precedent for similar "end user" situations.