The Enduring Patent Owner/Licensee Standing Distinction

by Dennis Crouch

In Ze، Technologies Corporation v. Intellectual Tech LLC, No. 24-114, IT has filed its brief in opposition to Ze،’s pe،ion for writ of certiorari. The case focuses on patent-owner standing in situations where multiple en،ies share patent rights — particularly whether a patent owner loses Article III standing when because of a patentee default that provides a third party (here, a security interest ،lder) the right to license the patent.

This portion of the case stems from a 2011 loan agreement where OnAsset Intelligence (IT’s parent company) pledged the ،erted patent (US7233247) as collateral to Main Street Capital. After OnAsset defaulted in 2013, the security agreement gave Main Street significant rights, including the ability to “sell, ،ign, transfer, pledge, en،ber or otherwise dispose of the Patents.” OnAsset later ،igned the patent to its subsidiary IT, w، then sued Ze، for infringement. The key question is whether Main Street’s post-default rights ،ped IT of the exclusionary rights necessary for Article III standing. The Federal Circuit sided with the patentee – finding that IT retained sufficient rights as the patent owner even t،ugh Main Street had the concurrent ability to license the patent. That outcome is now being challenged at the Supreme Court, with Ze، arguing that the ability to obtain a license from Main Street negates IT’s standing to sue for infringement.