Innovatio IP Ventures, LLC v. MEI-GSR Holdings LLC

Filing 35

ORDER STAYING CASE for 30 days pending a decision by the Judicial Panel on Multidistrict Litigation or further order of the court. D's # 27 Motion to Stay shall remain pending. Signed by Judge Larry R. Hicks on 12/22/2011. (Copies have been distributed pursuant to the NEF - DRM)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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INNOVATIO IP VENTURES, LLC,

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Plaintiff,

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v.

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MEI-GSR HOLDINGS LLC dba GRAND
SIERRA RESORT AND CASINO,

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Defendant.

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3:11-CV-00343-LRH-WGC
ORDER

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Before the court is Defendant MEI-GSR Holdings LLC’s (“MEI”) Motion to Stay (#271).

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Plaintiff Innovatio IP Ventures, LLC (“Innovatio”) filed an opposition (#29), and Grand Sierra

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replied (#34).

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Innovatio filed this action against MEI on May 13, 2011, alleging infringement of 17

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Innovatio patents related to wireless local area networks (“WLANs”), commonly referred to as

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“Wi-Fi.” MEI is a resort-casino that uses, but does not design, make or sell, the products accused

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of infringement.

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Rather than file suit against any manufacturer or supplier of the allegedly infringing Wi-Fi

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products, Innovatio filed this action along with ten other actions in other states against users, such

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as hotels, bakeries, cafes, and grocery stores. In response, on the same day Innovatio filed this

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Refers to court’s docket entry number.

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action, two suppliers of the allegedly infringing products, Cisco Systems, Inc. (“Cisco”) and

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Motorola Solutions, Inc. (“Motorola”), filed a declaratory relief action in the District of Delaware

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for non-infringement and invalidity of the seventeen Innovatio patents, entitled Cisco Systems, Inc.

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and Motorola Solutions, Inc. v. Innovatio IP Ventures, LLC, Case No. 1:11-cv-425 (D. Del.) (the

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“Supplier Action”). Then, on September 15, 2011, Cisco and Motorola filed a motion with the

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Judicial Panel on Multidistrict Litigation to transfer this action and five of the other Innovatio

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actions to the District of Delaware and to consolidate those actions for coordinated pretrial

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proceedings with the Supplier Action. See In re Innovatio IP Ventures, LLC, Patent Litigation,

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M.D.L. No. 2303 (J.P.M.L.).

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On September 27, 2011, MEI filed the instant motion to stay this matter pending resolution

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of the Supplier Action in Delaware, or at least pending resolution of the MDL motion for transfer

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and consolidation. MEI contends that a stay is appropriate pursuant to the customer suit doctrine

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and in the interest of judicial economy. Innovatio opposes MEI’s request for a stay pending

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resolution of the Supplier Action but does not address MEI’s alternative request for a stay pending

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resolution of the MDL motion. During briefing of the instant motion, Cisco and Motorola’s MDL

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motion was fully briefed and the MDL Panel scheduled a hearing for December 1, 2011; however,

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the Panel has not yet issued its decision.

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Given that a decision by the MDL Panel is forthcoming and may moot MEI’s pending

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motion to stay, and that Innovatio has not opposed MEI’s request for a stay at least pending

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resolution of the MDL motion for consolidation, the court finds that a limited stay is appropriate

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pending the MDL Panel’s decision.

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IT IS THEREFORE ORDERED that this matter is STAYED for 30 days pending a decision

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by the Judicial Panel on Multidistrict Litigation or further order of the court. Defendant’s Motion

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to Stay (#27) shall remain pending.

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IT IS SO ORDERED.

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DATED this 22nd day of December, 2011.

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LARRY R. HICKS
UNITED STATES DISTRICT JUDGE

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