Pegasus Wireless Innovation LLC v. Unknown Defendant

Pegasus Wireless Innovation LLC, a Non-Practicing Entity (NPE) and exclusive licensee of patents developed by Korean telecommunications company KT Corporation, initiated patent infringement litigation against major wireless carriers. The lead case, 2:23-cv-00640, originally listed an unknown defendant but was later identified as involving [Verizon Communications Inc.](/litigations/by-defendant/Verizon%20Communications%20Inc.) and its affiliates (Cellco Partnership d/b/a Verizon Wireless, Verizon Business Network Services LLC, Verizon Corporate Services Group Inc., and Tracfone Wireless, Inc.), along with AT&T Inc. and its affiliates, and T-Mobile US, Inc. and its affiliates. Ericsson Inc. and Nokia of America Corp. also intervened as defendants. Pegasus Wireless asserts US Patent 10638463, among others, alleging infringement by the defendants' provision of mobile networks and related base stations, as well as the sale of devices, including smartphones from manufacturers like Alphabet (Google) and Motorola, that operate in accordance with 3GPP 4G/LTE and 5G Standards. US Patent 10638463 pertains to wireless communication systems, specifically addressing technologies deemed essential to 4G/LTE and 5G standards under 3GPP.

The case was filed on December 29, 2023, in the U.S. District Court for the Eastern District of Texas, Marshall Division, and is presided over by District Judge Rodney Gilstrap, a venue known for its active patent docket. Case 2:23-cv-00640 was consolidated for all pretrial issues with similar infringement suits brought by Pegasus against AT&T (2:23-cv-00638) and T-Mobile (2:23-cv-00639). A claim construction hearing in the consolidated cases was held on March 13, 2025. While some related cases in the broader campaign saw dismissals, either with or without prejudice, by December 2025, the lead case 2:23-cv-00640 had a pretrial conference scheduled for August 4, 2025.

This litigation is notable as part of a broader patent assertion campaign by Pegasus Wireless, leveraging a substantial portfolio of 4G/LTE and 5G standard-essential patents (SEPs) acquired through an exclusive license from KT Corporation. KT Corporation is reported to have declared over 720 patent families as essential to ETSI's wireless telecommunications standards. The defendants, including the wireless carriers and intervenors Ericsson and Nokia, have counterclaimed for breach of contract and failure to negotiate in good faith, based on obligations to offer licenses on fair, reasonable, and nondiscriminatory (FRAND) terms. Furthermore, the asserted patents, including US Patent 10638463, have been the subject of multiple inter partes review (IPR) petitions at the Patent Trial and Appeal Board (PTAB). For instance, an IPR challenging patent 10,638,463 (IPR2025-00083) resulted in a Final Written Decision on June 3, 2026, determining all challenged claims to be unpatentable.

Pegasus Wireless Innovation LLC initiated a patent infringement lawsuit, 2:23-cv-00640, in the Eastern District of Texas, which was originally captioned against an "Unknown Defendant" but was later revealed to be against Verizon Communications Inc. et al.. This case was consolidated with two other lawsuits filed by Pegasus Wireless Innovation LLC on December 29, 2023: 2:23-cv-00638 against AT&T Inc. et al., and 2:23-cv-00639 against T-Mobile US, Inc. et al.. These three cases were consolidated for all pretrial issues on February 13, 2024. Pegasus asserted a total of eleven patents from ten different patent families across these consolidated cases. While the initial prompt specifically mentioned U.S. Patent 10,638,463, the broader set of asserted patents is relevant to the litigation's developments.

Key Legal Developments and Outcome:

Filing & Initial Pleadings:

• Complaint: Pegasus Wireless Innovation LLC filed the initial complaints for the consolidated cases on December 29, 2023.
• Consolidation: The three cases (2:23-cv-00638, 2:23-cv-00639, and 2:23-cv-00640) were consolidated for all pretrial issues on February 13, 2024.
• Infringement Contentions: Pegasus served initial infringement contentions on March 18, 2024, followed by amended contentions on March 21, 2024, and an amended cover pleading on March 29, 2024, asserting 113 claims across the eleven patents.
• Invalidity Contentions: Defendants served their initial invalidity contentions on May 17, 2024, identifying and charting ninety-one primary references across the ten asserted patent families.
• Intervention: Ericsson and Nokia intervened in the consolidated cases on July 18, 2024, and July 29, 2024, respectively.
• Counterclaims: In the parallel case against T-Mobile (2:23-cv-00639), T-Mobile filed counterclaims asserting breach of contract, failure to negotiate in good faith, and declaratory judgment of breach of FRAND obligations, in addition to noninfringement counterclaims. Similar counterclaims were likely filed in the AT&T case (2:23-cv-00638).

Pre-trial Motions of Substance:

• The court's docket control order in case 2:23-cv-00640 outlines deadlines for various pre-trial motions. For example, the deadline for filing motions to strike expert testimony (including Daubert motions) and dispositive motions was June 2, 2025, with responses due by June 16, 2025.
• A sealed motion for partial summary judgment of non-infringement was filed by Pegasus Wireless Innovation LLC, with a sealed sur-reply filed on July 8, 2025.

Claim Construction (Markman) Outcomes:

• A claim construction hearing (Markman hearing) was held in the parallel district court proceeding on March 13, 2025.
• Pegasus indicated its intention to narrow the case (i.e., narrow the asserted claims) until after the Court issued a Markman order. The court had ordered the parties to file a Joint Notice regarding mediation within fourteen days of the issuance of the claim construction order.

Discovery Milestones with Strategic Significance:

• The deadline to complete fact discovery and file motions to compel discovery was April 14, 2025.
• Disclosures for expert witnesses by the party with the burden of proof were due April 21, 2025, and disclosures for rebuttal expert witnesses were due May 12, 2025.
• Expert discovery was to be completed by May 23, 2025.

Parallel PTAB IPR/PGR Proceedings:
Several Inter Partes Review (IPR) petitions were filed against patents involved in the consolidated district court litigation, including the '000 patent (U.S. Patent No. 11,540,272) and the '631 patent, which is likely related to U.S. Patent 10,638,463.

• IPR2025-00137: Filed by Nokia of America Corp., et al. against U.S. Patent No. 11,540,272. This IPR was noted in a document filed on May 9, 2024, in the district court case.
• IPR2025-00084: Ericsson Inc. filed this IPR against Pegasus Wireless Innovation LLC regarding a patent identified as "the '000 patent," which is U.S. Patent No. 11,540,272. On June 6, 2025, the PTAB considered discretionary denial of institution under the Fintiv factors, noting the district court trial was scheduled for September 8, 2025, and significant investment had already occurred in the parallel district court proceeding. The PTAB also noted that Pegasus had withdrawn certain claims of the '000 patent (claims 2, 3, 6, 7, 10, and 11) from the district court proceedings.
• IPR2025-00036: Nokia of America Corporation filed this IPR against Pegasus Wireless Innovation LLC concerning "the '631 patent." On April 25, 2025, the PTAB denied institution of this IPR, citing the Fintiv factors. The PTAB highlighted that a claim construction hearing had already been held (March 13, 2025) in the parallel district court proceeding (2:23-cv-00640), invalidity contentions had been exchanged, and the petitioner had delayed filing the IPR petition.

Final Disposition:

• The cases against T-Mobile (2:23-cv-00639) and AT&T (2:23-cv-00638) were closed on December 18, 2025, via jointly filed motions for dismissal granted by Judge Rodney Gilstrap. All of Pegasus's claims were dismissed with prejudice, as were the defendants' counterclaims asserting breach of contract, failure to negotiate in good faith, and declaratory judgment of breach of FRAND obligations. However, the defendants' noninfringement counterclaims were dismissed without prejudice. Each party was ordered to bear its own attorneys' fees and costs.
• The lead case, Pegasus Wireless Innovation LLC v. Verizon Communications Inc. et al. (2:23-cv-00640), is also listed as "Closed" with a filing date of December 29, 2023. Although a specific dismissal order for this exact case number matching the December 18, 2025 date for the other two cases was not explicitly found, the overall coordinated nature of the "5G SEP Campaign Against US Carriers" strongly suggests a similar resolution. A "MEMORANDUM OPINION AND ORDER" was signed by District Judge Rodney Gilstrap on December 23, 2024.

Given the parallel IPR denials based on the advanced stage of the district court proceedings (including a scheduled trial date of September 8, 2025), and the subsequent dismissal of the consolidated cases in December 2025, it appears the litigation concluded through settlement.## Pegasus Wireless Innovation LLC v. Verizon Communications Inc. et al. (2:23-cv-00640) – Key Legal Developments and Outcome

The patent infringement litigation initiated by Pegasus Wireless Innovation LLC, originally against an "Unknown Defendant" but identified as Pegasus Wireless Innovation LLC v. Verizon Communications Inc. et al. (2:23-cv-00640) in the Eastern District of Texas, involved a broader campaign against major wireless carriers. This case was consolidated with two other lawsuits filed by Pegasus Wireless Innovation LLC on December 29, 2023: 2:23-cv-00638 against AT&T Inc. et al., and 2:23-cv-00639 against T-Mobile US, Inc. et al.. All three cases were consolidated for pretrial issues on February 13, 2024, and involved a total of eleven patents from ten different patent families. While the initial prompt focused on U.S. Patent 10,638,463, the consolidated nature of the litigation means developments impacted all asserted patents.

Key Legal Developments:

• Filing & Initial Pleadings (2023-2024):

  • Complaint: Pegasus Wireless Innovation LLC filed the initial complaints for the consolidated cases on December 29, 2023.
  • Consolidation: The three cases (2:23-cv-00638, 2:23-cv-00639, and 2:23-cv-00640) were consolidated for all pretrial issues on February 13, 2024.
  • Infringement Contentions: Pegasus served initial infringement contentions on March 18, 2024, followed by amended contentions on March 21, 2024, and an amended cover pleading on March 29, 2024, asserting 113 claims across the eleven patents.
  • Invalidity Contentions: The defendants served their initial invalidity contentions on May 17, 2024, identifying and charting ninety-one primary references across the ten asserted patent families.
  • Intervention: Ericsson and Nokia intervened in the consolidated cases on July 18, 2024, and July 29, 2024, respectively.
  • Counterclaims: In the parallel case against T-Mobile (2:23-cv-00639), T-Mobile filed counterclaims asserting breach of contract, failure to negotiate in good faith, and declaratory judgment of breach of FRAND obligations, in addition to noninfringement counterclaims. Similar counterclaims were likely filed by other defendants in the consolidated cases.

• Discovery Milestones (2025):

  • Fact Discovery: The deadline to complete fact discovery and file motions to compel discovery was April 14, 2025.
  • Expert Disclosures: Expert witness disclosures by the party with the burden of proof were due April 21, 2025, with rebuttal expert witness disclosures due May 12, 2025.
  • Expert Discovery Completion: Expert discovery was to be completed by May 23, 2025.

• Pre-trial Motions of Substance (2025):

  • Motion Deadlines: Deadlines for filing motions to strike expert testimony (including Daubert motions) and dispositive motions (such as summary judgment) were set for June 2, 2025, with responses due by June 16, 2025.
  • Summary Judgment: A sealed motion for partial summary judgment of non-infringement was filed by Pegasus Wireless Innovation LLC, with a sealed sur-reply filed on July 8, 2025.

• Claim Construction (Markman) Outcomes (2025):

  • Markman Hearing: A claim construction hearing was held in the parallel district court proceeding on March 13, 2025.
  • Claim Narrowing: Pegasus indicated its intention to narrow the asserted claims after the court issued a Markman order. The court also ordered the parties to file a Joint Notice regarding mediation within fourteen days of the claim construction order.

• Parallel PTAB IPR/PGR Proceedings (2024-2025):

  • Several Inter Partes Review (IPR) petitions were filed against patents asserted in the consolidated district court litigation. The PTAB's decisions on these IPRs reflect the advanced stage of the district court case.
  • IPR2025-00137 (U.S. Patent No. 11,540,272): Filed by Nokia of America Corp., et al., this IPR was referenced in a district court document on May 9, 2024.
  • IPR2025-00084 (U.S. Patent No. 11,540,272): Ericsson Inc. filed this IPR. On June 6, 2025, the PTAB considered discretionary denial of institution under the Fintiv factors, noting that the district court trial was scheduled for September 8, 2025, and substantial investment had already occurred in the parallel district court proceeding. The PTAB also noted Pegasus had withdrawn certain claims (2, 3, 6, 7, 10, and 11) of the '000 patent from the district court litigation.
  • IPR2025-00036 (related to "the '631 patent," potentially U.S. Patent 10,638,463): Nokia of America Corporation filed this IPR. On April 25, 2025, the PTAB denied institution, citing the Fintiv factors. The PTAB emphasized that a claim construction hearing had already taken place (March 13, 2025) in the district court, invalidity contentions had been exchanged, and the petitioner had delayed filing the IPR petition.

Outcome:

• Dismissal/Final Disposition (2025):
  • The cases against T-Mobile (2:23-cv-00639) and AT&T (2:23-cv-00638) were closed on December 18, 2025, via jointly filed motions for dismissal granted by Judge Rodney Gilstrap.
  • All of Pegasus's claims and causes of action in these cases were dismissed with prejudice, meaning they cannot be refiled.
  • The defendants' counterclaims asserting breach of contract, failure to negotiate in good faith, and declaratory judgment of breach of FRAND obligations were also dismissed with prejudice. However, their noninfringement counterclaims were dismissed without prejudice, preserving those technical invalidity positions for potential future proceedings.
  • Each party was ordered to bear its own attorneys' fees and costs.
  • The lead case, Pegasus Wireless Innovation LLC v. Verizon Communications Inc. et al. (2:23-cv-00640), is also listed as "Closed" with a filing date of December 29, 2023. While a specific dismissal order matching the December 18, 2025, date was not explicitly found for 2:23-cv-00640, the coordinated nature and the timing of the dismissals for the other two consolidated cases strongly suggest a similar resolution for the Verizon case, likely through settlement. A "MEMORANDUM OPINION AND ORDER" was signed by District Judge Rodney Gilstrap on December 23, 2024.

In the patent infringement case Pegasus Wireless Innovation LLC v. Unknown Defendant (2:23-cv-00640), filed in the Texas Eastern District Court, the following attorneys have been identified as representing the plaintiff, Pegasus Wireless Innovation LLC. It should be noted that while the case caption in the prompt lists an "Unknown Defendant," public records indicate the case was filed against multiple defendants, including Verizon Communications Inc., AT&T Inc., and T-Mobile US, Inc., and was subsequently closed on December 18, 2025, following a joint motion to dismiss.

Counsel of Record for Plaintiff Pegasus Wireless Innovation LLC:

• Corey Martin Lipschutz (Attorney)

  • Firm and Office Location: Not explicitly stated in the provided search results.
  • Relevant Experience: Identified as plaintiff counsel for Pegasus Wireless Innovation, LLC in this action.

• Daniel J. Shih (Attorney)

  • Firm and Office Location: Not explicitly stated in the provided search results.
  • Relevant Experience: Identified as plaintiff counsel for Pegasus Wireless Innovation, LLC in this action.

• Jordan Mikhail Rux (Attorney)

  • Firm and Office Location: Not explicitly stated in the provided search results. Filed a Notice of Attorney Appearance on behalf of Pegasus Wireless Innovation LLC.
  • Relevant Experience: Identified as plaintiff counsel for Pegasus Wireless Innovation, LLC in this action.

• Joseph Samuel Grinstein (Attorney)

  • Firm and Office Location: Not explicitly stated in the provided search results.
  • Relevant Experience: Identified as plaintiff counsel for Pegasus Wireless Innovation, LLC in this action.

• Bryce Thomas Barcelo (Attorney)

  • Firm and Office Location: Not explicitly stated in the provided search results. Filed a Notice of Attorney Appearance on behalf of Pegasus Wireless Innovation LLC.
  • Relevant Experience: Filed an appearance on behalf of Pegasus Wireless Innovation LLC in this case.

Case Status Update: It is important to note that while the prompt indicates the case is "Active," public records show that Pegasus Wireless Innovation LLC v. Verizon Communications Inc. et al, Case No. 2:23-cv-00640, was closed on December 18, 2025. All claims, including those against the various defendants and intervenors, were dismissed with prejudice via a jointly filed motion. This outcome suggests a global licensing resolution, though specific settlement terms are not publicly confirmed.

In this consolidated patent infringement case, the defendants include Verizon Communications Inc., Cellco Partnership d/b/a Verizon Wireless, Verizon Business Network Services LLC, Verizon Corporate Services Group Inc., Tracfone Wireless, Inc., AT&T Inc., AT&T Corp., AT&T Services, Inc., AT&T Mobility LLC, AT&T Mobility II LLC, New Cingular Wireless PCS, LLC, Cricket Wireless LLC, T-Mobile US, Inc., Sprint LLC, Sprint Solutions LLC, and Sprint Spectrum LLC. Ericsson Inc. and Nokia of America Corp. also intervened in the litigation.

Counsel of record representing the defendant(s) and intervenors included:

Alston & Bird LLP

Alston & Bird LLP represented a consortium of defendants and intervenors, including Ericsson, Nokia, AT&T, Verizon, and T-Mobile, in the Pegasus Wireless Innovation cases. The firm has a long-standing patent litigation practice, often representing telecommunications companies in complex intellectual property disputes.

• David S. Frist
  • Role: Counsel
  • Firm: Alston & Bird LLP, Atlanta, GA
  • Experience: Represents telecommunications companies in patent infringement actions related to 4G and 5G patents, and has a background as a product engineer for a tech company.
• Tyler P. Espy
  • Role: Counsel
  • Firm: Alston & Bird LLP
  • Experience: Counsels clients on intellectual property rights, with a focus on patent preparation, prosecution, and portfolio development, and has a software engineering background.
• Erin Beaton
  • Role: Counsel
  • Firm: Alston & Bird LLP
  • Experience: Represents telecommunications companies and other technology firms in patent infringement and inter partes review proceedings related to 4G and 5G patents.
• Ross Ritter Barton
  • Role: Counsel
  • Firm: Alston & Bird LLP
  • Experience: Recognized among the top 50 most active and top 100 best-performing attorneys representing defendants in patent litigation by Patexia.
• Sloane Sueanne Kyrazis
  • Role: Counsel
  • Firm: Alston & Bird LLP, Atlanta, GA
• Jacob William Young
  • Role: Counsel
  • Firm: Alston & Bird LLP
• Eric Pettis
  • Role: Counsel
  • Firm: Alston & Bird LLP
• Theodore Stevenson, III
  • Role: Counsel
  • Firm: Alston & Bird LLP
  • Experience: Adroitly handles patent infringement litigation and appeals, with particular expertise in technology and telecommunications mandates.
• John Daniel Haynes
  • Role: Counsel
  • Firm: Alston & Bird LLP, Atlanta, GA

The Dacus Firm, P.C.

• Deron R. Dacus
  • Role: Counsel (local counsel for some defendants, including AT&T)
  • Firm: The Dacus Firm, P.C., Marshall, TX
  • Experience: Listed as a highly-rated attorney in patent litigation.

Gillam & Smith, L.L.P.

• Harry Lee Gillam, Jr. (Gil Gillam)
  • Role: Local Counsel (for T-Mobile USA, Inc., Sprint Solutions LLC, and Sprint Spectrum LLC)
  • Firm: Gillam & Smith, L.L.P., Marshall, TX
  • Experience: A top-rated attorney in intellectual property litigation, a Fellow in the American College of Trial Lawyers, known for complex commercial and intellectual property matters in the Eastern District of Texas and nationwide.

Jones Day

• Michael C. Hendershot
  • Role: Attorney
  • Firm: Jones Day, Palo Alto, CA
  • Experience: Represented Cellco Partnership d/b/a Verizon Wireless, Verizon Business Network Services LLC, Verizon Corporate Services Group Inc., and TracFone Wireless, Inc.