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CTD Networks v. Musarubra: Network Security Patent Dismissed | PatSnap
Patent Litigation

CTD Networks v. Musarubra: Four Network Security Patents Dismissed With Prejudice

CTD Networks, LLC asserted four US patents covering its SDI-SCAM distributed agent-based network security monitoring and response system against Musarubra US, LLC in the Eastern District of Texas. The case resolved in 176 days via stipulated dismissal with prejudice, with each party bearing its own costs.

Resolution time
176days
Days from filing to dismissal — resolved well before trial
Patents asserted
4
US9503470B2, US8327442B2, US9438614B2 and US11171974B2 — four SDI-SCAM distributed network security patents asserted
Outcome
Dismissed with Prejudice
All claims dismissed with prejudice by stipulation; each party bears its own costs and fees
Cost ruling
Each Side Bears Own
Court ordered each party to bear its own costs, attorneys' fees, and expenses
Published by PatSnap Insights Team · Verified by PatSnap Eureka Data
Case overview

Four SDI-SCAM Network Security Patents End in Stipulated Dismissal

CTD Networks, LLC filed suit against Musarubra US, LLC on June 12, 2023 in the Eastern District of Texas (Case No. 2:23-cv-00273), presided over by Judge Rodney Gilstrap. The plaintiff asserted four US patents — US9503470B2, US8327442B2, US9438614B2, and US11171974B2 — all covering aspects of its SDI-SCAM system: a distributed agent-based architecture for network security monitoring and response.

The case closed on December 5, 2023 after just 176 days. The recorded Basis of Termination is 'Dismissed with Prejudice'; the docket order states that the parties filed a Notice of Stipulated Dismissal With Prejudice pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(ii), and the Court accepted and acknowledged the dismissal of all claims with prejudice. Each party was ordered to bear its own costs, attorneys' fees, and expenses. The specific terms underlying the stipulation are not disclosed in the available record.

The 176-day resolution is notably swift for a four-patent infringement action in the Eastern District of Texas, a venue that typically sees pre-trial activity extend well beyond six months. The mutual cost-bearing order and the absence of any disclosed damages or licensing terms leave the commercial drivers of the resolution unknown from the public record. Whether the parties reached a private commercial arrangement is not reflected in the publicly available docket.

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Case at a glance
CourtTexas Eastern District Court
JudgeRodney Gilstrap
FiledJune 12, 2023
ClosedDecember 5, 2023
Duration176 days
OutcomeDismissed with Prejudice
Verdict causeInfringement Action
BasisDismissed with Prejudice
Prior Art Intelligence
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Case timeline

Filing to Dismissed with Prejudice in 176 days

Days from filing to dismissal — resolved well before trial

Case timeline: Complaint filed JUN 12 2023 — 176 days total Horizontal timeline showing the three key events in CTD Networks, LLC v Musarubra US, LLC from filing to resolution. Source: PACER, Texas Eastern District Court. JUN 12 2023 Complaint filed Pre-trial proceedings DEC 5 2023 Dismissed with Prejudice 176 DAYS TOTAL
Patent at issue

US9503470B2 — SDI-SCAM distributed agent network security system

Publication No.US9503470B2
Application No.US14/043567
Patent details
ProductDistributed agent-based network security monitoring and response
Cited in actionJune 12, 2023

Publication No.US8327442B2
Application No.US10/746825
Patent details
ProductSystem and method for distributed application and network security
Cited in actionJune 12, 2023

Publication No.US9438614B2
Application No.US13/942175
Patent details
ProductDistributed network security monitoring system and method
Cited in actionJune 12, 2023

Publication No.US11171974B2
Application No.US15/357399
Patent details
ProductNetwork security system with distributed agent architecture
Cited in actionJune 12, 2023
Technical brief · sourced from PatSnap patent database
Patent figurePatent figure
Representative claim (1 of 2 independent)
1. A system that detects the state of a computer network, comprising: a plurality of distributed agents disposed in said computer network, each said distributed agent including a microprocessor adapted to: passively collect, monitor, and aggregate data representative of activities of respective nodes within said computer network, analyze collected data to develop activity models representative of activities of said computer network in a normal state and activities of said computer network in an abnormal state as a result of intrusions, infections, scams, code emulating code or humans, and/or other suspicious acti…
Technical background
CROSS-REFERENCE TO RELATED APPLICATIONS The present application claims benefit to U.S. Provisional Application No. 61/708,304 filed Oct. 1, 2012, which is a Continuation-in-Part of application Ser. No. 10/746,825, filed Dec. 24, 2003, now U.S. Pat. No. 8,327,442, which is, in turn, a Continuation-in-Part of application Ser. No. 10/693,149, filed Oct. 23, 2003, now U.S. Pat. No. 8,046,835, and further claims benefit of Provisional Patent Application 60/436,363, filed Dec. 24, 2002. These patent applications are inco…
Patent family
4 family members across 1 jurisdiction (US)
PatSnap Eureka · FTO Search Agent
Should you run an FTO analysis against US9503470B2 and the SDI-SCAM patent family?

R&D and product teams building distributed agent-based security monitoring platforms, EDR systems, XDR architectures, or coordinated network response systems should treat this patent family as a live FTO concern. The dismissal with prejudice here resolved only the dispute between CTD Networks and Musarubra — it did not produce any claim construction or invalidity finding that third parties can rely on. All four patents remain enforceable.

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Official verdict

Official order — verbatim text

Before the Court is Plaintiff CTD Networks, LLC’s (“Plaintiff”) and Musarubra US, LLC’s (“Defendant”) Notice of Stipulated Dismissal With Prejudice (the “Notice”). (Dkt. No. 31.) In the Notice, the parties stipulate to the dismissal of all claims in the above-captioned action with prejudice pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(ii). (Id.) Having considered the Notice, the Court ACCEPTS AND ACKNOWLEDGES that all claims and causes of action asserted by Plaintiff against Defendant in the above-captioned case are DISMISSED WITH PREJUDICE. It is further ORDERED that each party bear its own costs, attorneys’ fees, and expenses. The Clerk is directed to CLOSE the above-captioned case.
Source: PACER Docket, Case 2:23-cv-00273, Texas Eastern District Court

The court's order accepts and acknowledges a joint stipulation filed under Rule 41(a)(1)(A)(ii), resulting in dismissal of all claims with prejudice and a mutual cost-bearing order. Because the dismissal was stipulated rather than adjudicated, the order contains no findings on infringement, validity, or claim scope — leaving the legal merits of the four SDI-SCAM patents entirely unresolved on the public record.

PACER case 2:23-cv-00273 · Public docket record Explore in Eureka ↗
Dismissal terms

Dismissed with prejudice: what the stipulated resolution means for both parties

Legal mechanism

Rule 41(a)(1)(A)(ii) stipulated dismissal with prejudice

A dismissal with prejudice under Rule 41(a)(1)(A)(ii) is filed jointly by both parties and requires no court approval to take effect — the court here accepted and acknowledged it. Dismissal with prejudice is a final adjudication on the merits, meaning CTD Networks is barred from re-filing the same claims against Musarubra on these four patents. The specific terms that led the parties to stipulate are not disclosed in the available record.

Final; no re-filing permitted
Patent holder outcome

CTD Networks loses its right to pursue these claims against Musarubra

By agreeing to dismissal with prejudice, CTD Networks permanently relinquishes its infringement claims against Musarubra on all four asserted patents in this action. The patents themselves remain in force and may be asserted against other parties. Whether CTD Networks received any consideration in connection with the stipulation is not reflected in the public record.

Claims barred; patents survive
Defendant outcome

Musarubra obtains a permanent bar to re-litigation on these patents

Musarubra US, LLC benefits from a dismissal with prejudice: CTD Networks cannot reassert the same infringement claims under US9503470B2, US8327442B2, US9438614B2, or US11171974B2 in a future action. The cost-neutral order means Musarubra also avoids any fee exposure from this proceeding. The underlying commercial terms, if any, are not in the public record.

Protected from re-assertion
Commercial implications

SDI-SCAM patents remain active enforcement tools against third parties

The four SDI-SCAM patents asserted here remain valid and enforceable — the dismissal with prejudice resolves only the claims between these two parties. Companies operating distributed agent-based network security platforms analogous to the accused products should note that CTD Networks retains enforcement rights against the broader market. The speed of resolution — 176 days — suggests early-stage negotiation rather than full merits adjudication.

Third-party exposure remains
Legal analysis based on PACER docket records for case 2:23-cv-00273 and PatSnap Eureka litigation intelligence Search PatSnap Eureka ↗
Parties and representation

Full party and counsel information

RoleNameTypeDetail
PlaintiffCTD Networks, LLCCompany/Search in Eureka ↗
DefendantMusarubra US, LLCCompany/Search in Eureka ↗
Plaintiff counselJacob Bruce HenryAttorneyCounsel for CTD Networks, LLCSearch in Eureka ↗
Plaintiff counselJoseph Jude ZitoAttorneyCounsel for CTD Networks, LLCSearch in Eureka ↗
Plaintiff counselWilliam P. Ramey , IIIAttorneyCounsel for CTD Networks, LLCSearch in Eureka ↗
Plaintiff law firmBlank Rome LLP (Houston)Law FirmRepresenting CTD Networks, LLCSearch in Eureka ↗
Plaintiff law firmRamey LLPLaw FirmRepresenting CTD Networks, LLCSearch in Eureka ↗
Plaintiff law firmZito TLPLaw FirmRepresenting CTD Networks, LLCSearch in Eureka ↗
Defendant counselAamir A. KaziAttorneyCounsel for Musarubra US, LLCSearch in Eureka ↗
Defendant counselAlexander Hale MartinAttorneyCounsel for Musarubra US, LLCSearch in Eureka ↗
Defendant law firmFish & Richardson LLPLaw FirmRepresenting Musarubra US, LLCSearch in Eureka ↗
Defendant law firmFish & Richardson PC (Atlanta)Law FirmRepresenting Musarubra US, LLCSearch in Eureka ↗
Presiding judgeJudge Rodney GilstrapJudgeTexas Eastern District CourtSearch in Eureka ↗
R&D signals

R&D signals in distributed network security IP

Forward-looking patent and innovation intelligence derived from the CTD Networks v. Musarubra dispute across the SDI-SCAM distributed agent security architecture space.

Patent portfolio

CTD Networks' SDI-SCAM family: continuation risk and filing trajectory

The four asserted patents span application numbers from the early 2000s through US15/357399, suggesting an active continuation filing strategy. Monitor CTD Networks' prosecution docket for pending continuations or divisionals that could extend claim coverage into emerging EDR, XDR, or zero-trust agent architectures beyond the patents already asserted here.

Continuation risk: active
Technology landscape

Filing trends in distributed agent-based security monitoring

Distributed agent architectures for network security monitoring are a high-activity filing zone, driven by growth in EDR, XDR, and SIEM platforms. Patent filings in coordinated multi-agent threat detection and response have increased as vendors differentiate on real-time distributed analytics. Understanding the density of the landscape helps identify freedom-to-operate gaps and design-around opportunities.

High-density filing zone
Competitive IP posture

Musarubra's patent position in enterprise network security

Musarubra US, LLC, associated with McAfee's enterprise security heritage, operates in a segment with substantial proprietary IP. Mapping Musarubra's own patent portfolio in distributed security, threat intelligence, and agent-based monitoring reveals its defensive IP depth and highlights whether its own filings provide prior art relevant to the CTD Networks patent family.

Defensive portfolio depth
White-space opportunity

Adjacent innovation space: autonomous response and AI-driven agent coordination

The SDI-SCAM patents focus on distributed agent monitoring and response coordination. Adjacent white space exists in AI-driven autonomous threat response, federated security agent learning, and edge-native security agent architectures — areas where the existing claim landscape is less saturated and where next-generation security platforms are converging.

Emerging white space
Related litigation

Similar network security patent cases in the Eastern District of Texas

Browse related patent infringement actions involving distributed network security and monitoring technologies filed in the Eastern District of Texas before Judge Gilstrap.

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CTD Networks, LLC patent enforcement history, Texas Eastern District Court case history, CTD Networks, LLC's full IP portfolio, and comparable case analysis
SDI-SCAM related filingsCTD Networks other actionsMusarubra patent historyE.D. Tex. security cases
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Strategic implications

What this case signals for the network security patent landscape

Four SDI-SCAM patents resolved in under six months — but CTD Networks' enforcement toolkit remains intact for the broader market.

Rapid dismissal limits public record but not future enforcement risk

The 176-day lifecycle produced no claim construction, no invalidity rulings, and no damages record. That preserves ambiguity around the patents' scope — which can be a strategic asset for CTD Networks in future enforcement actions. Competitors in the distributed network security monitoring space should not treat this dismissal as a clearance signal.

Judge Gilstrap's docket: venue risk remains high for defendants

The Eastern District of Texas under Judge Gilstrap consistently attracts high-volume patent assertion activity. Musarubra's swift resolution — with no costs awarded — is consistent with early settlement dynamics in this venue, where the cost of litigation often drives resolution before substantive merits rulings are issued.

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Frequently asked questions

CTD v Musarubra — key questions answered

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Track the SDI-SCAM patent family and protect your network security IP strategy

The four CTD Networks SDI-SCAM patents remain enforceable against the broader market. Run an FTO analysis and set portfolio alerts in PatSnap Eureka to monitor new continuation filings and enforcement activity in distributed network security.

Disclaimer

This page is compiled from public court dockets and third-party patent and litigation data via PatSnap Eureka, and is provided for general informational purposes only. The information shown — including party names, patent and application numbers, dates, case status, outcomes, and any analysis — may be incomplete, may not reflect the most recent filings or legal status, and may contain errors or omissions. Verify all details against official court records (for example, PACER) and the relevant patent office before relying on them.

Nothing on this page constitutes legal advice or a legal opinion on the validity, infringement, enforceability, or scope of any patent or case, and no attorney‑client relationship is created by its use. Any description of an outcome (such as a dismissal, settlement, or consent judgment) is a general summary, not a legal determination. All patents, trademarks, and company or law‑firm names are the property of their respective owners. PatSnap makes no warranty as to the accuracy or completeness of this content and disclaims, to the fullest extent permitted by law, all liability for reliance on it. For advice on a specific matter, consult qualified legal counsel.

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