Finjan Holdings (FNJN) Granted Motion to Dismiss, Stay, Transfer in ESET Suit

September 27, 2016 4:02 PM EDT
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Finjan Holdings, Inc. (Nasdaq: FNJN) announced that its subsidiary Finjan, Inc.'s ("Finjan") Motion to Dismiss, Stay or Transfer ESET, LLC's complaint for declaratory judgment ("DJ"), filed in the U.S. District Court for the Southern District of California ("Southern District") (Case No. 3-16-cv-01704) was granted on September 26, 2016.

Specifically, the Honorable Cathy Ann Bencivengo of the Southern District found ESET's DJ action anticipatory of Finjan's Complaint filed on the same day in the U.S. District Court for the Northern District of California ("Northern District") (Case No. 3:16-cv-03731-JD), and that factors such as, convenience, judicial economy, and the need to include all parties and all issues in a single action weighed in favor of dismissal of the Southern District action. ESET's original DJ complaint did not include its parent company, ESET, spol. s.r.o. ("ESET SPOL") and sought a declaration of non-infringement of only one of the six patents Finjan asserted against ESET and its parent, ESET SPOL in the Northern District.

On September 1, 2016, the Honorable James Donato of the Northern District stayed Finjan's action pending the Southern District's decision, and ordered the parties to "promptly file... a copy of the transfer decision once issued".

"Finjan will comply with Judge Donato's order without delay, as we are eager to prove the merits of our claims and seek fair compensation for ESET's continuing infringement of our patents," said Julie Mar-Spinola, Finjan Holdings' Chief IP Officer.

ESET's accused products include its Small Office Protection products and Business Protection products, as well as ESET's Home Protection products ("Accused Products"), and ESET's accused services include ESET Virus Removal services and Tune-up and Virus Remover Service ("Accused Services"). Filed on July 1, 2016, Finjan asserts that the Accused Products and Accused Services infringe U.S. Patent Nos. 6,154,844; 6,804,780; 7,975,305; 8,079,086; 9,189,621; and 9,219,755. Finjan seeks, among other things, a jury trial, damages of not less than $44M, injunctive relief, enhanced damages, and reasonable attorneys' fees and costs from ESET. Also on July 1, Finjan filed a companion complaint against ESET for infringement of Finjan's European Patent No. EP 0965094 in the German Court of First Instance in Dusseldorf ("German Action"). In the German Action, ESET's Answer is due October 31, 2016, Finjan's Response is due February 6, 2017, ESET's Reply is due May 15, 2017, and the Hearing is scheduled for July 6, 2017.

Finjan has pending infringement lawsuits against FireEye, Inc., Symantec Corp., Palo Alto Networks., and Blue Coat Systems, Inc. relating to, collectively, more than 20 patents in the Finjan portfolio. The court dockets for the foregoing cases are publicly available on the Public Access to Court Electronic Records (PACER) website,, which is operated by the Administrative Office of the U.S. Courts.

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