Fleet Connect Solutions LLC v. Verizon Communications Inc.

Case Background: NPE Asserts Reexamined Patent Against Verizon's Fleet Technology

This patent infringement suit represents another case in a broad litigation campaign by the non-practicing entity (NPE) Fleet Connect Solutions LLC, which is an affiliate of the monetization firm Empire IP LLC. The plaintiff, Fleet Connect, targets operating companies across various industries, and in this instance, has sued telecommunications giant Verizon Communications Inc. The lawsuit alleges that Verizon's fleet management and vehicle tracking services, marketed as Verizon Connect, infringe upon Fleet Connect's patent. These accused services provide GPS tracking, vehicle diagnostics, compliance management, and integrated video for commercial fleets, which Fleet Connect claims practice the technology covered by its asserted patent.

The case, filed in the U.S. District Court for the Central District of California, centers on a single patent: U.S. Patent No. 7,742,388. The '388 patent, originally developed by Conexant Systems, generally relates to a system and method for managing data packets to increase bandwidth in digital communication systems like WLANs and mobile networks. This litigation is particularly notable due to the extensive assertion of the '388 patent, which has been used in over 60 cases against a wide range of companies. However, the viability of this case is now in serious doubt. On March 26, 2026, following an ex parte reexamination filed by Unified Patents in February 2025, the USPTO's Central Reexamination Unit issued a notice of intent to issue a reexamination certificate cancelling most of the asserted claims of the '388 patent, including claims 1-9. This development critically undermines Fleet Connect's infringement allegations against Verizon and will likely be a dispositive factor in the case's outcome.

Key Legal Developments and Outcome

This case, one of many filed by non-practicing entity (NPE) Fleet Connect Solutions, was short-lived, concluding before any significant litigation milestones like claim construction or summary judgment. Its trajectory was decisively influenced by parallel administrative challenges to the asserted patent at the U.S. Patent and Trademark Office (USPTO).

Chronology of Key Events:

• 2023-09-26: Complaint Filed. Fleet Connect Solutions LLC filed its patent infringement complaint against Verizon Communications Inc. in the Central District of California. The complaint alleged that Verizon's fleet management products and services, including Verizon Connect, infringed upon U.S. Patent No. 7,742,388.

  • Plaintiff's Counsel: Russ, August & Kabat represented Fleet Connect Solutions.
  • Defendant's Counsel: Public records do not indicate counsel for Verizon, as the case was dismissed before an appearance was made.

• 2023-11-21: First Motion for Extension of Time. Fleet Connect filed a motion seeking to extend the time for Verizon to respond to the complaint, suggesting the parties were engaged in early discussions. (Case No. 8:23-cv-01759, Dkt. 13).

• 2024-01-22: Second Motion for Extension of Time. A subsequent motion to extend time was filed, further indicating ongoing negotiations or potential coordination with developments outside the immediate case. (Case No. 8:23-cv-01759, Dkt. 15).

• 2024-02-27: Notice of Voluntary Dismissal. Fleet Connect Solutions filed a notice of voluntary dismissal of all claims against Verizon without prejudice. Each party was to bear its own costs and attorneys' fees. (Case No. 8:23-cv-01759, Dkt. 17).

• 2024-02-28: Case Closed. The court clerk officially closed the case following the plaintiff's voluntary dismissal.

Parallel Administrative Proceedings

The district court litigation's abrupt end appears directly linked to challenges against the '388 patent at the Patent Trial and Appeal Board (PTAB).

• Ex Parte Reexamination (EPR): An EPR proceeding against the '388 patent (90/015,100) was initiated by a third party. This proceeding ultimately proved fatal to the patent claims asserted against Verizon. The reexamination resulted in the cancellation of claims 1–9 and a determination that claims 10–19 were unpatentable. This outcome effectively invalidated the core of Fleet Connect's infringement allegations. While the dismissal in the Verizon case occurred before the final certificate was issued, the high likelihood of claim cancellation during the reexamination process would have provided Verizon with overwhelming leverage, likely prompting the voluntary dismissal.

This case is a clear example of how parallel PTAB proceedings, such as ex parte reexaminations or inter partes reviews (IPRs), can be used as a powerful defense tool to efficiently resolve patent litigation by challenging the validity of the asserted patent outside of the more costly and time-consuming district court process. Fleet Connect voluntarily dismissed its case against Verizon likely to avoid an inevitable adverse judgment once the patent claims were formally canceled by the USPTO.

Plaintiff's Counsel: Russ, August & Kabat

Fleet Connect Solutions LLC was represented by attorneys from the intellectual property specialty firm Russ, August & Kabat. The complaint and subsequent filings identify three attorneys from the firm's Los Angeles office.

• Reza Mirzaie (Lead Counsel)

  • Firm: Russ, August & Kabat, Los Angeles.
  • Note: As Co-Chair of the firm's plaintiff's patent infringement department, Mirzaie has secured over $600 million for clients and has never lost a jury trial. He has successfully represented clients in high-stakes patent litigation against major technology companies, including obtaining a $262 million jury verdict against Western Digital and a $175 million verdict against Verizon in a separate matter.

• Adam S. Potz (Of Counsel)

  • Firm: Russ, August & Kabat, Los Angeles.
  • Note: There is limited public information available regarding Adam S. Potz's specific litigation experience. He is listed as an attorney at the firm, which is well-known for its patent litigation practice.

• Michael S. Brophy (Of Counsel)

  • Firm: Russ, August & Kabat, Los Angeles.
  • Note: While listed on the filings, Michael S. Brophy's primary practice focuses on trust and estate litigation. His firm profile indicates experience in business and commercial litigation, including intellectual property matters like copyright and trade secrets. He is now a partner at Withers Bergman LLP as of May 2026.

Counsel for Defendant Verizon Communications Inc.

Public court records indicate that Verizon Communications Inc. never made a formal appearance in this case. The plaintiff, Fleet Connect Solutions LLC, filed for a voluntary dismissal without prejudice on February 27, 2024 (Dkt. 17), which was entered by the court the following day, closing the case.

This dismissal occurred before the deadline for Verizon to file an answer or otherwise respond to the complaint. The docket shows that the parties jointly stipulated to extend the response deadline twice, first on November 21, 2023 (Dkt. 13) and again on January 22, 2024 (Dkt. 15). This suggests the parties were engaged in pre-appearance negotiations, which, combined with the fatal weakening of the asserted patent in a parallel ex parte reexamination, culminated in the plaintiff dropping the suit. As a result, no outside or in-house counsel ever filed a notice of appearance on behalf of Verizon.