Plaintiff
3 cases as plaintiff.
Shipping and Transit, LLC, formerly known as Arrivalstar, is a Florida-based non-practicing entity (NPE) that was highly active in patent litigation. The company did not manufacture products or offer services; instead, its business model consisted of licensing and asserting a portfolio of patents. In 2016, it was one of the most prolific patent litigants in the U.S., filing over 100 lawsuits in that year alone. After facing significant legal challenges and being ordered to pay defendants' legal fees, the company declared bankruptcy in late 2018.
The company's patent portfolio related to tracking and status notification for vehicles, cargo, and shipments. It asserted these patents against a wide range of businesses, from small online retailers to municipal transit agencies. A common allegation was that companies sending customers emails with shipping tracking numbers were infringing its patents. Courts, however, found some of its patent claims to be "objectively unreasonable" and directed at abstract ideas, particularly in light of the Supreme Court's Alice v. CLS Bank decision.
Consistent with its characterization as a patent assertion entity, Shipping and Transit has a litigation history heavily weighted toward offensive actions, as shown by its three plaintiff cases versus one defendant case in the provided data. The company was known for filing lawsuits and then dismissing them once a defendant mounted a significant defense, a strategy that courts described as "exploitative litigation."
Notable cases from the provided list include actions against Hall Enterprises, Inc., and Neptune Cigars, Inc., where the defendants challenged the validity of the patents. The case Unified Patents Inc. v. Shipping and Transit LLC reflects efforts by organizations like Unified Patents to invalidate patents asserted by frequent litigants. This inter partes review (IPR) challenged U.S. Patent No. 6,415,207, which was frequently asserted against online retailers for package tracking. A court ultimately ordered Shipping & Transit to pay the legal fees for Hall Enterprises after finding a pattern of "exploitative litigation."
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The court found the asserted patent claims were directed to an abstract idea and lacked an inventive concept. The court declared the case "exceptional" and ordered the plaintiff to pay the defendant's attorney's fees.
The defendant filed a motion arguing the patent was invalid under Alice v. CLS Bank, after which the case was dismissed.
The defendant filed a motion to dismiss arguing the patent was invalid under Alice. Following the motion, the plaintiff voluntarily dismissed the lawsuit.