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Encryptawave v. BenQ America: WPA2 Wi-Fi Patent Dismissed | PatSnap
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Case ID4:24-cv-01040
FiledNov 2024
ClosedDec 2024
Patent Litigation

Encryptawave v. BenQ America: WPA2 Wi-Fi Patent Suit Dismissed in 14 Days

Encryptawave Technologies LLC filed suit against BenQ America Corp. in the Eastern District of Texas asserting US7233664B2 — a patent covering Wi-Fi device networks utilizing WPA2 encryption — across a broad product line including projectors, display devices, and wireless adapters. The case was voluntarily dismissed without prejudice just 14 days later, before BenQ filed any answer or dispositive motion.

Resolution time
14days
14 days — resolved before defendant could answer or file for summary judgment
Patents asserted
1
US7233664B2 — Wi-Fi device network utilizing WPA2 encryption
Outcome
Voluntary dismissal
Dismissed without prejudice under Rule 41(a)(1); public record is silent on whether settlement occurred
Cost ruling
Each side bears own costs
Verdict text expressly provides each party bears its own costs, expenses, and attorneys’ fees
Published by PatSnap Insights Team · Verified by PatSnap Eureka Data
Case overview

WPA2 Encryption Suit Against BenQ Ends Before Answer Filed

On 22 November 2024, Encryptawave Technologies LLC — a patent holding entity — filed a patent infringement action against BenQ America Corp. in the U.S. District Court for the Eastern District of Texas before Judge Sean D. Jordan. The complaint asserted US7233664B2, a patent covering Wi-Fi device networks utilizing WPA2 encryption, against a sweeping array of BenQ products including projectors (e.g., TK860i, TH850i, V5000i), wireless display adapters, and interactive flat panels — over 50 named product SKUs in total.

On 6 December 2024 — just 14 days after filing — Encryptawave filed a Notice of Voluntary Dismissal Without Prejudice pursuant to Federal Rule of Civil Procedure 41(a)(1). Because BenQ had not yet served an answer or a motion for summary judgment, no court order was required to effect the dismissal. The notice expressly provides that each party bears its own costs, expenses, and attorneys’ fees, which is a common but not universal feature of early voluntary dismissals.

The 14-day lifespan of this case is striking even by the standards of early-stage patent suits in the Eastern District of Texas. The public record does not disclose whether the parties reached a licensing agreement, covenant not to sue, or other commercial resolution prior to dismissal. Because the dismissal is without prejudice, Encryptawave retains the right to refile the same claims against BenQ or its products at a later date, keeping commercial uncertainty alive for BenQ and similarly situated Wi-Fi device manufacturers.

Case at a glance
Case no.4:24-cv-01040
CourtTexas Eastern
JudgeSean D. Jordan
FiledNovember 22, 2024
ClosedDecember 6, 2024
Duration14 days
OutcomeVoluntary dismissal
Verdict causeInfringement Action
BasisVoluntary dismissal
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Case data sourced from PACER / Texas Eastern District Court via PatSnap Eureka Litigation Intelligence Explore similar cases ↗
Case timeline

Filing to Voluntary dismissal in 14 days

14 days — resolved before defendant could answer or file for summary judgment

Case timeline: Complaint filed NOV 22 2024, NOV–DEC — 14 days total Horizontal timeline showing the three key events in Encryptawave Technologies, LLC v Benq America, Corp. from filing to resolution. Source: PACER, Texas Eastern District Court. NOV 22 2024 Complaint filed Pre-trial proceedings DEC 6 2024 Voluntary dismissal 14 DAYS TOTAL
Dismissal terms

Voluntarily dismissed: what Rule 41(a)(1) means for both parties

Legal mechanism

Rule 41(a)(1): dismissal without a court order

Under Federal Rule of Civil Procedure 41(a)(1), a plaintiff may dismiss an action as of right — without any court order — by filing a notice of dismissal before the defendant serves an answer or a motion for summary judgment. Because BenQ had not yet responded, Encryptawave exercised this procedural right unilaterally. The dismissal is self-executing upon filing and requires no judicial approval.

Pre-answer voluntary exit
With or without prejudice?

Without prejudice — but the distinction matters

A dismissal without prejudice leaves the door open: Encryptawave can refile the same patent claims against BenQ or its products at a future date. A dismissal with prejudice would have permanently extinguished the claims. Here, the notice expressly states ‘without prejudice,’ so BenQ obtains no res judicata protection. The public record does not disclose whether a private licensing deal or covenant not to sue was reached alongside this filing.

Claims may be refiled
Plaintiff outcome

Encryptawave preserves all optionality

By dismissing without prejudice and before BenQ could build a defensive record, Encryptawave exits the litigation with maximum flexibility. It retains the patent, avoids an early invalidity or non-infringement ruling, and can pursue BenQ — or other Wi-Fi device makers — in future proceedings. The fee-bearing clause (each side bears own costs) is consistent with a negotiated early exit, though this cannot be confirmed from the public record alone.

Patent and claims fully intact
Defendant outcome

BenQ escapes judgment — but not future risk

BenQ America avoids any liability finding and incurs minimal litigation cost given the 14-day window. However, without a dismissal with prejudice or an explicit covenant not to sue, BenQ’s 50+ accused product lines remain potentially exposed to reassertion of US7233664B2. Companies in this position typically reassess their WPA2 implementation design-arounds and FTO posture to reduce the risk of a future filing.

Reassertion risk remains live
Legal analysis based on PACER docket records for case 4:24-cv-01040 and PatSnap Eureka litigation intelligence Search PatSnap Eureka ↗
Parties and representation

Full party and counsel information

RoleNameTypeDetail
PlaintiffEncryptawave Technologies, LLCCompanyPatent holding entity — holder of US7233664B2 covering WPA2 Wi-Fi device networksSearch in Eureka ↗
DefendantBenq America, Corp.CompanyBenQ America Corp. — display technology and projector manufacturer and distributorSearch in Eureka ↗
Plaintiff counselDavid R. BennettAttorneyCounsel for Encryptawave Technologies, LLCSearch in Eureka ↗
Plaintiff counselSteven KalbergAttorneyCounsel for Encryptawave Technologies, LLCSearch in Eureka ↗
Plaintiff law firmDavid R. BennettLaw FirmRepresenting Encryptawave Technologies, LLCSearch in Eureka ↗
Presiding judgeJudge Sean D. JordanJudgeTexas Eastern District CourtSearch in Eureka ↗
Official verdict

Official order — verbatim text

“Plaintiff Encryptawave Technologies LLC hereby files this Notice of Voluntary Dismissal without Prejudice pursuant to Federal Rule of Civil Procedure 41(a)(1). According to Rule 41(a)(1), an action may be dismissed by the plaintiff without order of court by filing a notice of dismissal at any time before service by the adverse party of an answer or a motion for summary judgment. Accordingly, Encryptawave Technologies LLC voluntarily dismisses this action against Defendant without prejudice pursuant to Rule 41(a)(1) with each party to bear its own costs, expenses, and attorneys’ fees”
Source: PACER Docket, Case 4:24-cv-01040, Texas Eastern District Court

The notice of voluntary dismissal invokes Rule 41(a)(1) by its express terms, confirming the dismissal required no court order and was effective upon filing. The ‘without prejudice’ designation is legally significant: it forecloses a res judicata defence for BenQ in any future proceeding on the same claims. The mutual cost-bearing provision, while not legally required under Rule 41, is a common marker of an agreed early exit and may suggest private commercial terms exist outside the public docket.

PACER case 4:24-cv-01040 · Public docket record Explore in Eureka ↗
Patent at issue

US7233664B2 — Wi-Fi Device Network Utilizing WPA2 Encryption

Publication No.US7233664B2
Application No.US10/448989
Patent details
ProductWi-Fi device networks utilizing WPA2 encryption protocols
Cited in actionNovember 22, 2024

US7233664B2 (application number US10/448989) covers a Wi-Fi device network architecture that utilises WPA2 encryption — the Wi-Fi Protected Access 2 standard that became mandatory for Wi-Fi certified devices from 2006. The patent’s technical domain sits at the intersection of wireless networking protocol implementation and device authentication. Given WPA2’s near-universal adoption in commercial Wi-Fi hardware, the patent’s claim scope relative to standard-essential or implementation-level features is commercially significant.

For display technology and projector manufacturers like BenQ, WPA2 support is a baseline product feature rather than a differentiating one — meaning the cost of litigation or licensing is weighed against a commodity functionality. Encryptawave’s decision to assert against a broad SKU list suggests a licensing-first strategy rather than an injunction-focused one. For competitors in the Wi-Fi-enabled display, projector, and IoT peripheral space, the existence and claim scope of US7233664B2 warrants proactive FTO review, particularly given the without-prejudice dismissal here.

Patent data sourced from USPTO via PatSnap Eureka patent database Search patent records in Eureka ↗
Freedom to operate

Should your Wi-Fi product team run an FTO against US7233664B2?

Any R&D or product team shipping Wi-Fi-enabled devices — projectors, displays, wireless adapters, smart peripherals, or IoT endpoints — that implement WPA2 encryption should assess their exposure to US7233664B2. The BenQ case named over 50 product SKUs across multiple categories, suggesting a broad claim construction theory. A freedom-to-operate analysis should map independent claim elements against your WPA2 implementation architecture before a demand letter arrives.

PatSnap Eureka’s FTO Search Agent can run a claim-by-claim mapping of US7233664B2 against your product’s Wi-Fi stack, flag prosecution history estoppel constraints, surface prior art that may support an IPR petition, and identify design-around opportunities at the protocol implementation level. Given the without-prejudice dismissal in the BenQ case, proactive FTO work now is materially cheaper than reactive litigation defence later.

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Related litigation

Similar WPA2 and Wi-Fi Encryption Patent Cases in E.D. Texas

Browse related Wi-Fi encryption and WPA2 patent infringement cases filed in the Eastern District of Texas involving similar claim structures and defendant profiles.

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Strategic implications

What this case signals for the Wi-Fi encryption IP landscape

A 14-day patent suit touching 50+ Wi-Fi and display products rarely ends cleanly — here is what practitioners should monitor.

Pre-answer dismissals in E.D. Texas often signal off-docket resolution

When a patent plaintiff files in the Eastern District of Texas and dismisses voluntarily within two weeks — before the defendant even answers — it typically suggests a licensing discussion occurred in parallel with or immediately after filing. The fee-bearing clause reinforces this reading. IP teams facing similar early dismissals should document any side agreements carefully to clarify scope.

Without-prejudice dismissal keeps BenQ’s entire product catalogue exposed

Over 50 BenQ SKUs were named in the complaint — projectors, wireless adapters, flat panels, and more. None received any invalidity finding or non-infringement ruling. Until a covenant not to sue is confirmed or the patent expires, any BenQ product implementing WPA2 remains a potential target. Counsel should verify patent term and any USPTO reexamination history for US7233664B2.

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Full strategic analysis in PatSnap Eureka
Unlock gated insights on WPA2 patent enforcement strategy and E.D. Texas district court trends for Wi-Fi device IP.
WPA2 claim scope analysisEncryptawave filing historyBenQ FTO risk assessment
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Frequently asked questions

Encryptawave v Benq — key questions answered

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Protect your Wi-Fi product line from WPA2 patent risk

US7233664B2 remains in force and the BenQ dismissal was without prejudice. Run an FTO analysis now to map your WPA2 implementation against the patent’s claims and identify defensible design-around options before a demand letter arrives.

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