Funded Plaintiff’s LCD Trial Produces Jury Verdict for the Defendants, with RICO Counterclaims Waiting in the Wings

An Eastern District of Texas jury has returned a verdict of no infringement of an LCD patent asserted by Phenix Longhorn, LLC against AUO and Hisense. The jury found the two tried claims of that patent invalid for lack of written description, also finding that AUO did not infringe a second LCD patent (this one surviving an invalidity determination). Prior to trial, three late-added RICO-related counterclaims from the defendants were severed from the main case to “keep them from interfering with the prompt adjudication of the patent infringement claim”. An inequitable conduct counterclaim was also stricken. The severed counterclaims concern alleged bankruptcy fraud and racketeering that “have injured the entire LCD industry”.