FTC Uses Unique, Long-Dormant Authority to Challenge Patent Troll's Alleged Breach of Licensing Commitment to Standard-Setting Organization

January 28, 2008

On January 23, 2008, on a 3-2 vote, the Federal Trade Commission ("FTC") issued a complaint against, and proposed consent order with, Negotiated Data Solutions LLC ("N-Data"), a company whose sole activity is to collect royalties on its patents. The Commission alleged N-Data violated Section 5 of the Federal Trade Commission Act by refusing to honor a licensing fee commitment made to a standard-setting organization, the Institute of Electrical and Electronics Engineers ("IEEE"), by N-Data's predecessor in interest, National Semiconductor, Inc. ("National").

For more information about the subject of this e-Alert, please contact Susan DeSanti (202.408.3948 or sdesanti@sonnenschein.com), Alex Hadjis (202.408.9222 or ahadjis@sonnenschein.com) or your regular Sonnenschein attorney.

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