Litigation

Unified Patents v. Paygeo LLC

Not Instituted - Procedural

IPR2025-01555

Filed
2025

Patents at issue (1)

Plaintiffs (1)

Defendants (1)

Summary

Unified Patents filed an Inter Partes Review petition against Paygeo LLC concerning patent 12014347, which was not instituted due to procedural reasons.

Case overview & background

Plain-language overview of the case: parties, accused product, patents at issue, and why the suit matters.

Unified Patents filed an Inter Partes Review (IPR) petition, IPR2025-01555, against Paygeo LLC, challenging the validity of U.S. Patent No. 12,014,347. Unified Patents is a member-based organization focused on deterring "patent trolls" (Non-Practicing Entities or NPEs) and improving patent quality by challenging weak patents in specific technology areas, often through IPRs. Paygeo LLC, on the other hand, appears to be a patent assertion entity (PAE) or NPE, as evidenced by its patent infringement lawsuit against Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc. (Case No. 2:25-cv-00334 in the Eastern District of Texas), where patent 12,014,347 is one of the asserted patents. The patent at issue, U.S. Patent No. 12,014,347, is related to electronic payment and e-commerce technology.

The procedural posture of IPR2025-01555 is before the Patent Trial and Appeal Board (PTAB), where it was "Not Instituted - Procedural." This means the PTAB declined to proceed with a full review of the patent's validity based on procedural grounds rather than the merits of the invalidity arguments. The decision to deny institution on procedural grounds can be influenced by several factors, particularly the "Fintiv factors" which consider the stage of parallel district court litigation, the presence of identical issues, and the timing of the IPR petition relative to the district court case. In this specific case, PayGeo, as the patent owner, filed a request for discretionary denial, citing the parallel district court action against Samsung in the Eastern District of Texas, which was filed on April 2, 2025, with a trial scheduled for April 19, 2027. PayGeo also argued that Samsung had long been on notice of PayGeo's patents, further supporting "settled expectations."

This case is notable as it highlights the increasing trend of discretionary denials at the PTAB, particularly since March 2025, when new guidance emphasized director discretion and expanded considerations for denial, including "settled expectations" and the Fintiv factors. The high rate of procedural denials has been a significant development in patent law, impacting how petitioners like Unified Patents approach challenging patents, especially those involved in ongoing district court litigation with NPEs. The IPR was filed by Samsung Electronics Co., Ltd. et al. against PayGeo, LLC, on September 30, 2025, further illustrating the ongoing battle between operating companies and NPEs, with Unified Patents acting as a representative of the former by challenging patents asserted by the latter.

Key legal developments & outcome

Major rulings, motions, claim construction, settlements, and the present posture or final disposition.

Paygeo LLC initiated a patent infringement lawsuit against Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc. (collectively, "Samsung") in the Eastern District of Texas, case number 2:25-cv-00334, on April 2, 2025. The complaint alleged infringement of multiple patents, including U.S. Patent No. 12,014,347.

Parallel PTAB IPR Proceedings:
Samsung, in turn, filed several Inter Partes Review (IPR) petitions challenging the validity of Paygeo's patents, including IPR2025-01555 for U.S. Patent No. 12,014,347, on September 30, 2025. Other IPRs were filed around October 1-2, 2025, for related patents such as U.S. Patent Nos. 11,087,307, 10,937,018, 10,796,296, and 8,554,671.

Paygeo, as the patent owner, filed a request for discretionary denial in IPR2025-01555 on December 8, 2025, arguing against institution based on the "Fintiv factors" and "settled expectations" due to the ongoing parallel district court litigation with a trial scheduled for April 19, 2027. This request cited the March 26, 2025, USPTO Memorandum on "Interim Processes for PTAB Workload Management" which emphasized these factors.

The PTAB ultimately issued a Director Discretionary Decision to deny institution of IPR2025-01555 on January 26, 2026, citing procedural grounds. This denial aligns with a broader trend observed in 2025, where discretionary denials at the PTAB significantly increased due to new guidance emphasizing director discretion and expanded considerations like "settled expectations" and the Fintiv factors.

Key Legal Developments in District Court (2:25-cv-00334):

  • Filing of Complaint: Paygeo LLC filed its complaint for patent infringement against Samsung on April 2, 2025, in the Eastern District of Texas.
  • Claim Construction Hearing: A Markman hearing for claim construction is scheduled for October 21, 2026.
  • Trial Schedule: The jury selection and trial are set to begin on April 19, 2027.
  • Case Management Conference: A case management conference is scheduled for March 15, 2027.

As of the current date (May 25, 2026), the patent infringement litigation in the Eastern District of Texas remains active and is proceeding towards a scheduled Markman hearing and trial, despite the denial of the IPR petition for U.S. Patent No. 12,014,347.

Plaintiff representatives

Counsel of record for the plaintiff(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).

In the patent infringement case Paygeo LLC v. Samsung Electronics Co., Ltd. et al., case number 2:25-cv-00334, filed in the Eastern District of Texas, the plaintiff Paygeo LLC is represented by counsel from Herbert Smith Freehills Kramer (us) LLP and Capshaw Derieux LLP.

Here are the details of the counsel representing Paygeo LLC:

Herbert Smith Freehills Kramer (us) LLP

  • Paul Andre (Lead Counsel)
    • Office Location: San Francisco, CA. Paul Andre is a well-known patent litigator with extensive experience in federal district courts and at the PTAB.
  • Lisa Kobialka (Lead Counsel)
    • Office Location: San Francisco, CA. Lisa Kobialka is recognized for her work in patent litigation.
  • James Hannah (Counsel)
    • Office Location: New York, NY.
  • Christina M. Finn (Counsel)
    • Office Location: New York, NY. Christina Finn has been actively involved in the proceedings, including meet and confer discussions regarding affirmative defenses.
  • Violaine Carmelle Brunet (Counsel)
    • Office Location: New York, NY.

Capshaw Derieux LLP

  • Elizabeth L. DeRieux (Local Counsel)
    • Office Location: Longview, TX. Elizabeth DeRieux is a partner at Capshaw Derieux LLP, a firm often acting as local counsel in the Eastern District of Texas.

Defendant representatives

Counsel of record for the defendant(s): attorneys, firms, and roles (lead counsel, of counsel, local counsel).

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The user is asking for the defense counsel in the patent infringement case Paygeo LLC v. Samsung Electronics Co., Ltd. et al., case number 2:25-cv-00334. I need to identify the attorneys representing Samsung, their roles, firms, office locations, and relevant experience. I will use web search, specifically looking for docket information, firm websites, and legal news sources.Here is the counsel of record representing the defendant(s), Samsung Electronics Co., Ltd. and Samsung Electronics America, Inc., in the patent infringement case Paygeo LLC v. Samsung Electronics Co., Ltd. et al., case number 2:25-cv-00334, in the Eastern District of Texas:

Kirkland & Ellis LLP

  • Greg S. Arovas (Lead Counsel)
    • Office Location: New York, NY. Greg Arovas is a highly experienced patent litigator, frequently representing major technology companies in complex patent disputes, including numerous cases for Samsung.
  • Joshua K. Walker (Lead Counsel)
    • Office Location: San Francisco, CA. Joshua Walker is known for his work in high-stakes patent litigation across various technologies.
  • Megan C. Barbero (Counsel)
    • Office Location: New York, NY. Megan Barbero specializes in intellectual property litigation, including patent infringement defense.
  • Joseph A. Loy (Counsel)
    • Office Location: New York, NY. Joseph Loy represents clients in patent litigation across various federal district courts.

Gillam & Smith LLP

  • Melissa R. Smith (Local Counsel)
    • Office Location: Tyler, TX. Melissa Smith is a founding partner of Gillam & Smith LLP and frequently serves as local counsel in patent cases in the Eastern District of Texas.
  • Marshall A. Smith III (Local Counsel)
    • Office Location: Tyler, TX. Marshall Smith is also a partner at Gillam & Smith LLP with extensive experience in Eastern District of Texas litigation.

Samsung Electronics Co., Ltd. (In-House Counsel)

While specific in-house counsel appearing on the docket were not immediately identified in general searches, it is common for large corporations like Samsung to have in-house legal teams closely coordinating with outside counsel on such litigation.

Note: Information regarding attorney experience is based on general reputation and firm profiles, as specific details for this particular case may not be publicly available at this stage.