filing patents on those inventions; collaborating with other inventors and scientists
to
developand patent inventions; and acquiring patents and patent rights from individual inventors,universities, and other institutions.(0.1. 1 at 3) Indeed, "[t]he entire business
of
IntellectualV entures revolves around patents and technology protected
by
patents." (Tr. at 5)IV appears to have
had
some measure
of
success: as
of
2006, IV
had
filed at least 500
of
its own patent applications and acquired a "huge
war
chest"
of
more than 30,000 patents andpatent applications. (D.I. 82 Ex. F at 29; D.!. 1 at 4) A key component
of
IV's
business islicensing its patents to various technology and software companies. (D.!.
1
at 3) Thesetechnology and software companies invest in IV and,
in
exchange, receive licenses to practicepatents. In order to effectively monetize its patents and provide a return
on
its investment, aswell as a return for individual inventors,
IV's
business model uses "patent acquisition funds,"which are comprised
of
various entities that hold patent assets. (D.!. 56 at 3) The funds
in
turncreate "portfolio licenses" -that is, licenses that cover hundreds
or
even thousands
of
patentsprovided to a specific investor in the fund. (D.!. 65 at 2)The four patents-in-suit were acquired in 2006 and 2007 and placed in four Delawareentities. (D.!. 58 at 2) In 2010, the four entities merged to form IV, the plaintiff in the instantaction.
B.
Wilson Sonsini's Representation
of
IV
IV first retained
WSGRin
November 2002. (D.!. 58 Ex. A) Peter Detkin, a co-founder
of
IV, is a former partner at
WSGR
and, therefore, had ties to the law firm. (D.I. 58 at
1)
Theinitial engagement letter between the parties defined the nature and scope
of
the duties
WSGR
agreed to perform for IV as follows:2