A Dallas federal court has tossed an antitrust lawsuit that alleged a group of technology companies conspired to inflate licensing rates for cellular connectivity technology.
The lawsuit, brought by Michigan-based Continental Automotive Systems, alleged the defendants conspired through their participation in the Avanci licensing platform, described in court documents as a one-stop access to standard essential patents that companies like Continental need to obtain licensing in order to sell cellular connectivity products.
Continental sells telematics control units (TCUs) to car manufacturers, which use the TCUs to provide their vehicles with various features, including cellular connectivity. Continental alleges the defendants refused to license their standard essential patents for the cellular connectivity technology on FRAND terms — fair, reasonable and non-discriminatory — which resulted in excessive royalty rates.
The defendants include Dallas-based Avanci, multiple affiliates of Finnish telecommunications giant Nokia Corp. (including the company’s Irving operations), Luxembourg-based Conversant Wireless Licensing ands its Plano-based subsidiary, Plano-based PanOptis and Japanese electronics manufacturer Sharp Corp.
In a 27-page order issued Thursday, U.S. Chief Judge Barbara Lynn of the Northern District of Texas dismissed all of Continental’s claims with prejudice, ruling that Continental failed to adequately plead antitrust claims and finding that Continental’s conspiracy claims “legally untenable.” She declined to exercise jurisdiction over Continental’s other claims, which included breach of contract, promissory estoppel and unfair competition.
The case attracted the attention of the federal government, which had sided with one of the defendants’ dismissal arguments related to the breach of FRAND commitments.
The litigation brought in lawyers from all over the U.S., but some have Texas connections.
Continental’s primarily California-based legal team from Sheppard Mullin also includes Jennifer Ayers from the firm’s Dallas office.
Avanci’s lawyers are mainly from the California and New York offices of Winston & Strawn and Baker McKenzie. Dallas Winston partner Mark Werbner is also on the team.
Nokia’s primarily Atlanta-based legal team also includes Michael Newton from Alston & Bird’s Dallas office and Dallas lawyers Ted Stevenson and Warren Lipschitz from McKool Smith.
Conversant’s primarily San Francisco- and Washington, D.C.-based legal team from Baker Botts also includes Harrison Rich from the firm’s Dallas office.
PanOptis’ legal team includes Dallas Gray Reed & McGraw lawyers David DeZern, Eric Tautfest, Jared Hoggan and Jill Bindler and California lawyers from Irell & Manella.
Sharp hired Pillsbury Winthrop Shaw Pittman lawyers from California and New York, but the team also includes Tamara Bruno and Vincent Morgan from the firm’s Houston office.
The case number is 3:19-cv-0933-M in the Dallas division of the U.S. District Court for the Northern District of Texas.