NPE Asserting USB Patent Is Sued By Newegg Subsidiary

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By Peter Leung

Jan. 27 — Internet retailer Newegg's subsidiary Rosewill has sued a non-practicing entity that had previously sued it for patent infringement, less than one week after the NPE dismissed Rosewill from the case.

Though Minero Digital LLC had dismissed its patent infringement suit against Rosewill without prejudice, Rosewill is seeking a declaratory judgment finding that it is not infringing U.S. Patent No. 5,675,811, according to the complaint filed on Jan. 26 with the U.S. District Court for the Central District of California.

Minero's patent is entitled “method for transmitting information over an intelligent low power serial bus.” According to its complaint filed with the U.S. District Court for the Eastern District of Texas, the patent covers many USB hubs, including those made by Rosewill and sold by various retailers including Amazon, Office Depot and Walmart. These retailers are among the defendants named in Minero's complaint.

In its complaint, Rosewill explained that, though it has been dismissed as a defendant, Minero could sue it again later. Furthermore, it pointed out that several retailer defendants that sell Rosewill products have not been dismissed. It said one of those, Office Depot, has requested indemnification insofar as damages stemming from its sale of Rosewill devices are concerned.

The complaint seeks a declaratory judgment finding that Rosewill, Office Depot and Amazon are not infringing any claim in the asserted patent, as well as an injunction against Minero to prevent them from suing or threatening to sue Rosewill or its actual or prospective business partners for infringement of the patent.

Newegg, which owns Rosewill, has a reputation for taking an aggressive stance against non-practicing entities, often refusing to settle what it considers frivolous claims and seeking attorneys' fees when it prevails. In November, the Federal Circuit awarded it $15,000 in fees, expenses and costs against one NPE, AdjustaCam LLC.

The company also makes a point of highlighting its fight against what it calls “patent trolls.” In addition to selling T-shirts proclaiming its “Don't Settle” stance, it regularly comments on its patent battles in its own blog posts, in one instance referring to another NPE and its subsidiary as “asshats.”

To contact the reporter on this story: Peter Leung in Washington at

To contact the editor responsible for this story: Mike Wilczek in Washington at

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