Like so many lawsuits, the CCE v. Apple et al. case is based in the patent hotspot of East Texas, which is still considered favorable ground for patent plaintiffs. Acacia is based in Southern California, but the complaint says CCE's principal place of business is an office in Plano, which is within the Eastern District of Texas.
Patent privateering takes place when an operating company shares its patents with a patent-assertion entity for a cut of the profits. It allows operating companies to make money off the business of pure patent litigation, sometimes derided as "patent trolling."
Apple is clearly sick of Nokia's privateering. In December, Apple filed an antitrust lawsuit against Nokia, saying the company hatched a plan to work with "its PAE [patent assertion entity] co-conspirators" to enforce a diffused patent portfolio, "to maximize the aggregate royalties that can be extracted from product companies." Nokia responded by filing a huge patent infringement lawsuit against Apple the following day.
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