Amendments to Delaware’s LLC and Partnership Legislation Enacted

The Delaware General Assembly has recently enacted legislation amending the Delaware Limited Liability Company Act, the Delaware Revised Uniform Limited Partnership Act and the Delaware Revised Uniform Partnership Act. The following is a brief summary of some of the more significant amendments that affect Delaware limited liability companies, Delaware limited partnerships and Delaware general partnerships.

Obeid v. Hogan: Delaware Court of Chancery Addresses Authority to Delegate Under Section 18-407 of the Delaware Limited Liability Company Act

In Obeid v. Hogan, C.A. No. 11900-VCL (Del. Ch. June 10, 2016), the Delaware Court of Chancery held that the board of directors of a board-managed Delaware limited liability company and the managers of a manager-managed Delaware limited liability company did not have the authority under the respective limited liability company agreements to delegate to a…

Judge Andrews Invalidates Defendant’s Patent-in-Suit as Directed to an Abstract Idea

In Visual Memory LLC v. NVIDIA Corporation, C.A. No. 15-789-RGA (D. Del. May 27, 2016), Judge Andrews granted the defendant’s motion to dismiss and invalidated the plaintiff’s patent under 35 U.S.C. § 101 as containing unpatentable subject matter. The patent-in-suit purported to claim the storage of certain data types by use of “[a] computer memory system…

Judge Sleet Partially Grants Motion for Fees and Costs under Section 285

In Inventor Holdings LLC v. Bed Bath & Beyond Inc., C.A. No. 14-448-GMS (D. Del. May 31, 2016), Judge Sleet granted the defendant’s motion for attorneys’ fees and costs but denied its motion for expert fees and costs. Following dismissal of the plaintiff’s complaint under Alice, affirmed by the Federal Circuit on appeal, the defendant moved…

Judge Robinson Orders Defendants to Show Cause Why They Should Not Be Precluded from Using Information Provided by Foreign Parent Company

In Intellectual Ventures I LLC v. Ricoh Americas Corporation, et al., C.A. No. 13-474-SLR (D. Del. May 23, 2016), Judge Robinson accepted Magistrate Judge Fallon’s report and recommendation that plaintiff Intellectual Ventures I LLC’s (“IV”) motion to compel defendants Ricoh Americas Corporation (“RAC”) and Ricoh Electronics, Inc. (“REI”) to produce documents and Rule 30(b)(6) testimony be…

Judge Andrews Imposes Prosecution Bar and Covenant Not to Sue on a Non-Practicing Entity’s Executives and In-House Counsel

In Blackbird Tech LLC v. Service Lighting and Electrical Supplies, Inc., et al., C.A. No. 15-53-RGA (D. Del. May 18, 2016), Judge Andrews imposed restrictions on the information that a non-practicing entity plaintiff’s in-house counsel, who also served as its executives, could view. The defendants sought to impose a prosecution bar that would exclude the plaintiff’s…

Judge Robinson Grants Section 101 Motion to Dismiss for Unpatentable Subject Matter

In Device Enhancement LLC v. Amazon.com, Inc., C.A. No. 15-762-SLR (D. Del. May 17, 2016), Judge Robinson granted the defendant’s motion to dismiss the plaintiff’s claims of infringement of its computer programming patent under Fed. R. Civ. P. 12(b)(6) and 35 U.S.C. § 101. Judge Robinson summarized the current two-step Alice framework for determining patentability…

Judge Andrews Strikes Unused Exhibits From the Trial Record

In EMC Corporation, et al. v. Pure Storage Inc., C.A. No. 13-1985-RGA (D. Del. May 13, 2016), Judge Andrews considered a motion to seal evidence at trial and struck two financial exhibits from the record as improvidently admitted into evidence. The exhibits were large spreadsheets admitted on CD-ROMs and unusable by the jury. Judge Andrews also…

Judge Andrews Denies in Part Parties’ Request to Redact a Hearing Transcript

In Delaware Display Group LLC v. Lenovo Holding Company Inc., C.A. No. 13-2108-RGA (D. Del. May 10, 2016), Judge Andrews granted in part the parties’ motion to redact a discovery conference transcript, but denied the proposal to redact certain pages where the parties did not show a “clearly defined and serious injury” that would arise from…