Judge’s ruling means bankruptcy for Biax
Last Updated: 15:44 October 31, 2013
Christian Onsager, the Denver attorney representing Boulder-based Biax, referred questions about the case to company president Raymond Scott Livingstone. Livingstone did not respond to repeated requests for comment. Livingstone or a family trust in his name are listed seven times on a list of the top 20 creditors on a bankruptcy filing document.
Tom Livingstone – listed four separate times as himself or as a family trust in his name on the list of the top 20 creditors – said he didn’t know anything about the case when reached by phone. He then hung up.
U.S. District Court Judge Philip Brimmer in August ordered that Biax Corp. pay Nvidia Corp. $1.6 million in attorney fees and costs in the 2011 patent lawsuit case, according to a court document. The judge ordered Biax to pay Sony Computer Entertainment America Inc. $700,000 in attorney fees and costs.
In the 2011 patent lawsuit case, Biax Corp. said the two companies infringed on two patents held by Biax, according to a court document. The nature of the patents was not disclosed. In February 2012, a judge ruled in favor of the defendants, Nvidia and Sony. In March, the court ruled that the defendants could collect attorney fees from Biax for a certain time period related to the case.
Biax filed for bankruptcy in September. The two largest creditors listed on bankruptcy documents are Nvidia Corp., represented by a New York law firm, at more than $1.3 million, and Sony Computer Entertainment America Inc., represented by a Chicago law firm, at $700,000. Raymond Scott Livingstone is listed as the third largest creditor at $470,000.
In all, 24 major creditors are listed, including Union Leasing in Boulder and Texas Instruments in Dallas.
Biax Corp. has a record of filing patent-infringement lawsuits against major corporations, based on court-document research. The company appears to be one in an industry of similar companies that buys up patents and then uses litigation to get major corporations to pay licensing fees on the patents, said Tim Ragones, a spokesman for Kirkland & Ellis LLP, the Chicago law firm representing Sony in the bankruptcy case. In June, President Obama said he would crack down on such practices, which have snowballed in recent years, especially in the technology sector.
Biax Corp. was founded in 1987 and is owned by shareholders, according to documents filed with the Colorado Secretary of State’s office.
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