April 05, 2013, 1:22 AM — Cloud computing company Rackspace has sued two companies it describes as 'patent trolls' for breach of contract, and asked a federal court for a declaratory judgment that it did not infringe three patents owned by one of the companies, Parallel Iron.
In a separate development also with implications for patent trolls, which are firms that mainly own or manage patents and use them to make money from licensing and litigation, Brocade Communications Systems said it defeated yet another patent troll after an appeal by Chrimar Systems was turned down Thursday by the U.S Court of Appeals for the Federal Circuit.
"Today we drove a stake into the ground in our dogged fight against patent trolls -- we sued one of the most notorious patent trolls in America," wrote Alan Schoenbaum, Rackspace's senior vice president, and general counsel in a blog post on Thursday.
In December 2010, IP Navigation Group (IPNav) accused Rackspace of patent infringement as agent for a secret patent owner, now known as Parallel Iron, according to court records. It alleged that its patents on storage-area-network (SAN) and network-attached-storage (NAS) equipment also covered the open-source Hadoop distributed-file system (HDFS) used by Rackspace.
But IPNav declined to disclose information on the patent claims, or even the patent numbers and the patent owner, unless Rackspace entered into a "forbearance agreement," which Schoenbaum describes as "basically, an agreement that we would not sue them."
"IP Nav was worried that as soon as we found out what their patents and claims actually were, Rackspace would sue to invalidate their patents or for a declaration that Rackspace does not infringe," Schoenbaum wrote.
Parallel Iron however sued Rackspace and 11 others in Delaware last month without providing any notice, breaking the agreement they insisted upon, according to Rackspace.