Judge Won't Dismiss iBiquity's Suit In Patent Case, Lets Broadcasters Consolidate, Stay Their Cases
January 12, 2015 at 4:21 AM (PT)
A federal judge has denied DELAWARE RADIO TECHNOLOGIES, LLC and WYNCOMM, LLC's motion to dismiss iBIQUITY DIGITAL CORP.'s lawsuit (NET NEWS 7/3/14) seeking declaratory judgment that it did not infringe on the patents that DRT and WYNCOMM claim cover HD RADIO and that the patents are invalid.
Judge GREGORY SLEET issued his ruling on WEDNESDAY (1/7) in the case, in which iBIQUITY says it has a contractual obligation to indemnify the 14 radio companies against which DRT and WYNCOMM filed patent infringement suits; in a separate, contemporaneous ruling, SLEET granted the 14 broadcast company defendants' motion to consolidate their cases and stay the proceedings while iBIQUITY's case is resolved.
DRT and WYNCOMM filed a motion to dismiss the iBIQUITY complaint on AUGUST 19th, saying that iBIQUITY failed to prove that it was required to indemnify the 14 defendants in the other suits, but the judge wrote that he is "convinced by iBIQUITY's showing that a contractual indemnity obligation existed as to at least some, if not all of the Broadcast Defendants. Such a relationship with even only a single Broadcast Defendant would confer standing on iBIQUITY to challenge the patents-in-suit."
And in the ruling on the consolidation motion, SLEET wrote, "Although iBIQUITY is not itself an alleged direct infringer of the patents-in-suit, its technology is at the core of the Plaintiffs' infringement contentions. Adjudication of iBIQUITY's declaratory judgment lawsuit will therefore either eliminate or crystalize the remaining issues for the Broadcast Defendants litigation. The court can discern no meaningful prejudice to the Plaintiffs, as the information obtained during the course of the iBIQUITY lawsuit is not wasted; it can be applied -- indeed, it is necessary -- to the instant consolidated suit. "