"We aren't going to take it," said Schoenbaum, which is the reason the company sued IPNav and Parallel Iron on Thursday in the U.S. District Court for the Western District of Texas, San Antonio division. Rackspace has asked the court to enter a judgment declaring that Rackspace does not infringe three related patents owned by Parallel Iron. These are U.S. Patent Nos. 7,197,662, 7,543,177 and 7,958,388.
Rackspace also alleged in the court that Parallel Iron and IPNav breached their agreement not to sue Rackspace for patent infringement without first providing a written notice that settlement discussions had ended.
The Delaware Action is only the latest in a series of 23 lawsuits Parallel Iron has filed in Delaware on the patents-in-suit since June of last year, after Parallel Iron was forced to dismiss an earlier set of lawsuits on another patent that it could not enforce, Rackspace said in its complaint.
In the win for Brocade, the U.S Court of Appeals for the Federal Circuit affirmed an order by a district court which ruled in favor of Foundry Networks, a company Brocade acquired in 2008.
Judge Avern Cohn of the U.S. District Court for the Eastern District of Michigan, Southern Division earlier declared invalid claims 14 and 17 of U.S. patent 5,406,260 concerned with a network security system for detection of removal of electronic equipment.
Patent trolls are costing companies a lot of expense in legal fees, driving technology companies often to an early settlement. Rackspace has seen a 500 percent spike in its legal expenses combating trolls.
"Our goal with this lawsuit is to highlight the tactics that IP Nav uses to divert hard-earned profits and precious capital from American businesses," wrote Schoenbaum. "This time, the patent troll should pay us."