As Part of Protective Order, District Court Orders Prosecution Bar and Covenant Not to Sue for New Patents Acquired by Patent Holder
In this patent infringement action, a dispute arose between Plaintiff Blackbird Tech LLC ("Blackbird") and the defendants over the terms of proposed protective orders to govern the use of confidential information produced. Although the parties agreed that a protective order was appropriate, they disagreed on the level of access by Blackbird's in-house counsel and the scope of a patent prosecution bar.
The district court explained that the protective order presented a unique circumstance given Blackbird's business, which was described as "a new model for individual inventors and small companies to monetize their intellectual property." "Blackbird achieves this goal by acquiring patents and litigating on behalf of itself, using experienced patent litigators that are directly employed by Blackbird instead of outside counsel, at a great cost savings." Blackbird also described the acquisition of patents as being "essential" to its business. An important part of Blackbird's business model is to maintain "a diverse portfolio of patents and not to be concentrated in one technological area."