Authored by Michelle Carniaux and Michael E.Sander
In June 2013, a newly formed company called New Bay Capital, LLC (“New Bay”) filed four petitions for inter partes review of patents owned by a publicly traded patent licensing entity VirnetX Holding Corporation (“VirnetX”). See IPR2013-00375, 00376, 00377, and 00378. VirnetX had recently won a jury verdict against Apple Inc. (“Apple”) on the same patents for hundreds of millions of dollars and was proceeding through the appeals process against Apple. Neither New Bay nor its parent company, Eastern Shore Capital, LLC, were involved in the VirnetX litigation, nor does is appear that New Bay made or sold anything related to the technologies covered by the patents, so New Bay’s motive for filing four IPR petitions was unclear.