Newegg sues patent troll that dropped its case

Latham & 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 Minero dismissed its Texas lawsuit without prejudice, meaning it can refile the case at a time of its choosing.

"We just don’t believe Rosewill’s products and customers infringed on valid patent claims," said Cheng. "Minero’s case does not have merit, and its patent is not only expired but would suck even if it wasn’t expired. Now that they have started the litigation, it would be irresponsible for Newegg to not finish it."