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By Jeffrey S. Ginsberg and Joseph Mercadante

Federal Circuit Affirms Loss for Parallel Networks

On Jan. 16, 2013, the Federal Circuit panel of Judges Sharon Prost, William C. Bryson and Evan J. Wallach issued its opinion in Parallel Networks, LLC v. Abercrombie & Fitch Co., et al., No. 2012-1227, affirming the decision of Chief Judge Leonard Davis of the Eastern District of Texas. Parallel Networks had sued 120 defendants in four separate cases, and had a stated strategy of “trying to extract an early settlement from as many defendants as possible.” Slip Op. at 12. Judge Davis ordered an early Markman hearing construing three terms that defendants considered to be case dispositive. Id. After construing two of the three terms in the defendants' favor, Judge Davis granted summary judgment of non-infringement in favor of several of the defendants. Id. at 14.

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