Patent troll that sued Newegg can’t walk away, will face counter-suit in LA

Latham and Watkins partner Rick Frenkel, who represents Newegg in some of its patent cases. Frenkel and Cheng made a stop for BBQ and fried pies on a recent trip to the patent hotspot of East Texas. (credit: Lee Cheng)

A patent-holding company called Minero Digital seeks to exact royalty payments on a wide range of USB hubs, suing more than two dozen retailers and manufacturers last year. But the "non-practicing entity" dropped its East Texas lawsuit against Newegg subsidiary Rosewill within days of getting a call from the company's lawyer. It's not going to be easy for Minero and its president, Texas lawyer Daniel Perez, to walk away, though. Yesterday, Newegg filed its own lawsuit (PDF) against Minero in Los Angeles federal court, asking a judge to rule that Rosewill products do not infringe Minero's patent.

Newegg Chief Legal Officer Lee Cheng says the move is necessary since Rosewill dismissed its Texas lawsuit without prejudice, meaning Minero can refile at any time of its choosing.

Cheng discussed the new lawsuit with Ars while traveling to East Texas for a court hearing in another case against a patent-holding entity. (See photo above.) Beyond the possibility of being sued again, Cheng noted that Minero continues to litigate against other retailers that sell Rosewill-branded products and that Newegg may have defense obligations to those other companies. Minero continues to press its case against more than 20 companies, with the defendants including Office Depot, Walmart, and Amazon—three big retailers that sell Rosewill products.

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