Ignite v. NGDATA: Strategic Dismissal in Data Processing Patent Case
Updated on Dec. 12, 2025 | Written by Patsnap Team
Introduction
In a notable conclusion to a patent dispute, plaintiff Ignite Enterprise Software Solutions and defendant NGDATA stipulated to a dismissal in the District of Delaware, ending litigation over four data processing patents. The case, Ignite Enterprise Software Solutions, LLC et al. v. NGDATA US, Inc. et al. (1:23-cv-01209), was closed on May 7, 2025. The stipulated order saw Ignite’s infringement claims dismissed with prejudice, while NGDATA’s counterclaims were dismissed without prejudice as moot, with each side bearing its own costs. This outcome offers insights into the litigation strategies of patent assertion entities and the dynamics of data processing patent infringement cases.
Case Summary
| Field | Details |
|---|---|
| Case Name | Ignite Enterprise Software Solutions, LLC et al. v. NGDATA US, Inc. et al. |
| Case Number | 1:23-cv-01209 |
| Court | U.S. District Court for the District of Delaware (Chief Judge John F. Murphy) |
| Filing/Closure | Filed: Oct 24, 2023 |
| Outcome | All Plaintiffs’ claims dismissed with prejudice; all Defendants’ counterclaims dismissed without prejudice as moot. Each party bears its own costs and attorneys’ fees. |
| Patents | US7673340B1, US7644134B2, US10496726B2, US8769441B2 |
| Products | NGDATA “Lily System” (Customer Data Platform) |
| Plaintiff Counsel | Richards Layton & Finger PA (Agents: Christopher J. Mierzejewski, Conor Civins, et al.) |
| Defendant Counsel | Fish & Richardson PC (Agents: Philip G. Brown, Warren K. Mabey, Jr.) |
| Termination Basis | Stipulated Dismissal under FRCP 41(a)(1)(A)(ii) |
Case Overview
The Parties: Plaintiff Ignite Enterprise Software Solutions, LLC (joined by affiliate IgniteTech CX Solutions, LLC) is a non-practicing entity (NPE). Defendant NGDATA US, Inc. (and its parent NGDATA N.V.) provides customer intelligence platforms, with its core “Lily System” accused of infringement.
The Patent(s) at Issue: The four asserted patents relate to data processing architectures. They cover systems and methods for building, configuring, and managing data processing applications—technologies central to modern enterprise data platforms. To research patent families related to these assets, platforms like Patsnap Eureka IP can be used.
The Accused Product(s): The suit targeted NGDATA’s “Lily System,” a customer data platform (CDP). Alleging infringement against a core product represents a significant commercial threat.
Legal Representation: Ignite was represented by Richards Layton & Finger PA. NGDATA’s defense was led by Fish & Richardson PC, indicating a technically robust defense strategy.
Litigation Timeline & Procedural History
The case was litigated in the District of Delaware, a court known for its experienced judiciary in patent matters.
- Filed: October 24, 2023.
- Key Milestones: The 561-day duration suggests the parties progressed through substantial discovery and pre-trial proceedings, including the critical claim construction phase.
- Chief Judge: The case was presided over by Chief Judge John F. Murphy.
The Verdict & Legal Analysis
Outcome
The case concluded with a stipulated dismissal filed jointly by the parties.
- Dismissal with Prejudice: All of Ignite’s claims were dismissed with prejudice. This constitutes an adjudication on the merits, barring Ignite from re-filing the same claims.
- Dismissal without Prejudice: All of NGDATA’s counterclaims were dismissed without prejudice as moot.
- Costs: Each party bears its own attorneys’ fees and costs.
💡 Key Insight: The distinction between “with prejudice” (final) and “without prejudice” (potentially renewable) is the cornerstone of this settlement’s strategic meaning. Analyzing the patent validity and infringement arguments that led to this point is crucial for understanding similar disputes.
Verdict Cause Analysis
The dismissal points to a private settlement.
- For Ignite (Plaintiff): A dismissal with prejudice is a definitive loss of the asserted claims. This often results from a strategic decision to cut losses, potentially after unfavorable interim rulings or high litigation costs.
- For NGDATA (Defendant): Avoiding any payment and securing a dismissal of the claims with prejudice is a favorable outcome. Committing to a robust defense can increase a plaintiff’s cost of continued litigation, influencing settlement. Analyzing patent landscapes can help build stronger defenses early.
Legal Significance & Strategic Takeaways
- Prosecution & Assertion Strategy: This case highlights the risk for entities asserting patents against well-resourced defendants. Thorough pre-filing analysis of claim scope is critical.
- Defense Tactics: The outcome underscores the potential value of a committed defense. Engaging specialized IP counsel can increase pressure on a plaintiff.
- For R&D Teams: This case is a reminder that freedom to operate (FTO) analysis should consider foundational system patents. Proactively tracking litigation trends in your sector is key for risk management.
Industry & Competitive Implications
This dismissal signals that operating companies can defend against assertions on foundational data processing patents. It may encourage other SaaS providers to contest similar claims. The public dismissal with prejudice could also affect the perceived assertion value of patents in this niche.
Key Takeaways
⚖️ For Patent Attorneys:
- A dismissal with prejudice is a final loss for the plaintiff’s specific claims.
- The strategic use of joint stipulations provides a definitive exit for both parties.
- The Delaware District Court remains a key venue for such patent case analysis.
🔬 For IP Professionals:
- A strategy of comprehensive defense can yield favorable outcomes against NPE assertions.
- Explore similar cases on Patsnap Eureka IP to inform portfolio defense strategies.
📊 For R&D Leaders:
- Patent risk in software extends to system-level architecture.
- Start your patent research early to identify potential prior art and inform design-around strategies.
FAQ
What patents were involved in Ignite v. NGDATA?
The case involved four U.S. patents: US7673340B1, US7644134B2, US10496726B2, and US8769441B2, all related to data processing systems.
What was the basis for the dismissal?
The parties filed a joint stipulation to dismiss under Federal Rule of Civil Procedure 41(a)(1)(A)(ii). Ignite’s claims were dismissed with prejudice, and NGDATA’s counterclaims were dismissed without prejudice as moot.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. The analysis is based on publicly available case data. For advice on specific legal matters, consult a qualified attorney.
External Resources for Further Research:
- USPTO Patent Full-Text and Image Database (PatFT): Official source for U.S. patent documents.
- Public Access to Court Electronic Records (PACER): System for accessing federal court dockets.
