Vector Licensing v. Datto: Signal Transmission Patent Dismissed With Prejudice
Vector Licensing, LLC filed suit against Datto, Inc. in the Northern District of Illinois in November 2022, asserting US9686655B2 — a patent covering apparatus and methods for transmitting signals in communication systems. The case was dismissed with prejudice after 224 days, ending the infringement action with finality.
Signal Transmission Patent Suit Against Datto Ends With Finality
On 29 November 2022, Vector Licensing, LLC filed an infringement action against Datto, Inc. in the U.S. District Court for the Northern District of Illinois (Case No. 1:22-cv-06664), presided over by Judge Martha M. Pacold. The suit asserted US9686655B2, a patent directed to apparatus and methods for transmitting signals in communication systems. Vector Licensing was represented by Direction IP Law through counsel David Randolph Bennett and Steven G. Kalberg. No defendant agents or law firm are reflected in the available record.
The case was terminated on 11 July 2023. The recorded basis of termination is 'Dismissed with Prejudice.' The docket order states that, pursuant to a Notice of Voluntary Dismissal (Docket No. 22), Judge Pacold entered a minute entry dismissing the case with prejudice. A dismissal with prejudice is a final adjudication on the merits, barring Vector Licensing from reasserting the same claims against Datto in any future proceeding. The specific terms underlying the voluntary dismissal are not disclosed in the available record.
At 224 days, the case resolved well before trial and without any published claim construction or substantive merits ruling, which is consistent with early-stage resolutions in patent licensing disputes. What drove the parties to a voluntary dismissal with prejudice at this stage — whether a licensing arrangement, a commercial agreement, or another consideration — is not disclosed in the available public record.
See Complete Case & Patent Analysis →Filing to Dismissed with Prejudice in 224 days
224 days from filing to dismissal in N.D. Illinois
US9686655B2 — Apparatus and method for transmitting signal in communication systems
Any company building or selling products that involve signal transmission apparatus or methods in communication systems — including networking equipment, backup and recovery platforms, wireless communication hardware, and data infrastructure solutions — should assess freedom-to-operate against US9686655B2. The patent has never been subjected to a public claim construction order, meaning its full claim scope remains unnarrowed by judicial interpretation. This is particularly relevant for vendors in markets similar to Datto's.
Official order — verbatim text
The minute entry records dismissal with prejudice entered by Judge Pacold pursuant to Vector Licensing's Notice of Voluntary Dismissal (Dkt. 22). A with-prejudice dismissal operates as a final adjudication, permanently barring re-litigation of these specific claims against Datto. The order does not disclose any underlying terms, and no substantive merits ruling preceded it.
Dismissed with prejudice: what the final termination means for both parties
Voluntary dismissal with prejudice is a final, claim-ending ruling
A dismissal with prejudice constitutes a final judgment on the merits under Federal Rule of Civil Procedure 41. Unlike a without-prejudice dismissal, it permanently extinguishes the plaintiff's right to bring the same patent claims against the same defendant in any future action. Here, the court entered the dismissal pursuant to Vector Licensing's own Notice of Voluntary Dismissal, making it plaintiff-initiated but irrevocable.
Final — no refiling permittedVector Licensing loses the right to pursue these claims against Datto
By voluntarily dismissing with prejudice, Vector Licensing permanently forfeited its ability to assert US9686655B2 against Datto based on the conduct alleged in this action. The patent itself remains in force and may still be asserted against other defendants, but this specific enforcement action against Datto is extinguished. The specific terms that led to this outcome are not disclosed in the available record.
Claims against Datto extinguishedDatto achieves permanent immunity from these patent claims
Datto, Inc. receives a clean termination: Vector Licensing cannot reassert the claims in US9686655B2 arising from the conduct at issue in this case. Datto appears to have achieved this outcome without any publicly recorded substantive concession, though the specific terms of any arrangement between the parties are not disclosed in the available record.
Permanent bar on re-litigationSignal transmission patent remains enforceable against the broader market
The with-prejudice dismissal resolves only the Datto dispute. US9686655B2 remains a live, enforceable patent. Companies operating in communication system signal transmission — including backup, networking, and data infrastructure providers similar to Datto — should assess their exposure to this patent independently. Patent licensing entities holding communication-method patents frequently pursue multiple defendants sequentially.
Patent still enforceable elsewhereFull party and counsel information
| Role | Name | Type | Detail |
|---|---|---|---|
| Plaintiff | Vector Licensing, LLC | Company | /Search in Eureka ↗ |
| Defendant | Datto, Inc. | Company | /Search in Eureka ↗ |
| Plaintiff counsel | David Randolph Bennett | Attorney | Counsel for Vector Licensing, LLCSearch in Eureka ↗ |
| Plaintiff counsel | Steven G. Kalberg | Attorney | Counsel for Vector Licensing, LLCSearch in Eureka ↗ |
| Plaintiff law firm | Direction IP law | Law Firm | Representing Vector Licensing, LLCSearch in Eureka ↗ |
| Presiding judge | Judge Martha M. Pacold | Judge | Illinois Northern District CourtSearch in Eureka ↗ |
R&D signals in the signal transmission and communication systems IP space
Forward-looking patent and innovation intelligence derived from the Vector Licensing v. Datto dispute and the broader communication systems filing landscape.
Vector Licensing's communication patent assertion footprint
Vector Licensing's assertion of US9686655B2 suggests an active licensing strategy around communication system patents. Mapping Vector Licensing's full portfolio and any related entity filings can reveal whether additional signal transmission or networking patents are queued for assertion — giving potential targets early warning of enforcement risk in this technology domain.
Licensing entity portfolioFiling trends in signal transmission apparatus patents
Patent filings in signal transmission methods and communication system apparatus have tracked the growth of 5G, edge networking, and cloud backup infrastructure. Understanding which assignees are actively prosecuting in the same technical space as US9686655B2 helps R&D teams anticipate where new IP barriers may emerge and where design-around opportunities exist.
Filing trend intelligenceDatto's patent position in backup and networking infrastructure
As a provider of backup, disaster recovery, and networking products, Datto operates in a space where signal transmission and communication method patents present recurring assertion risk. Analysing Datto's own patent filings and any defensive publications can indicate how the company is building IP resilience against future licensing-entity actions in this domain.
Defendant IP resilienceAdjacent innovation opportunities near US9686655B2's claim space
The claim space around signal transmission apparatus and methods contains both crowded filing corridors and potential white space — particularly at the intersection of modern cloud networking protocols and legacy communication system architectures. R&D teams can use forward citation analysis of US9686655B2 to identify where design-around solutions or novel continuation opportunities may exist.
IP white space opportunitySimilar signal transmission patent cases in N.D. Illinois and related courts
Browse comparable patent infringement actions asserting communication system and signal transmission patents in the Northern District of Illinois and peer district courts.
What this case signals for the communication systems IP landscape
A with-prejudice dismissal after 224 days, without any merits ruling, raises important questions for signal-transmission technology companies.
With-prejudice exits signal resolution activity even without public terms
When a patent licensing plaintiff voluntarily dismisses with prejudice, it typically signals that the parties reached some form of resolution — but the specific terms are not in the public record here. Technology companies facing similar assertion should note that early resolution is common in licensing-entity suits and that the absence of a merits ruling leaves claim scope untested.
US9686655B2 remains enforceable — adjacent players should assess FTO now
The dismissal does not limit Vector Licensing's ability to assert US9686655B2 against other parties. Networking, backup, and communication infrastructure companies whose products involve signal transmission apparatus or methods should conduct or refresh a freedom-to-operate analysis against this patent before it surfaces in a new enforcement action.
Vector v Datto — key questions answered
The case was dismissed with prejudice on 11 July 2023. Judge Martha M. Pacold entered a minute entry pursuant to Vector Licensing's Notice of Voluntary Dismissal (Dkt. 22), terminating the action with finality. The dismissal with prejudice bars Vector Licensing from reasserting the same patent claims against Datto. The specific terms underlying the dismissal are not disclosed in the available public record.
Vector Licensing asserted US9686655B2 (application number US13/810172), a patent directed to apparatus and methods for transmitting signals in communication systems. This was the sole patent asserted in the infringement action filed on 29 November 2022 in the Northern District of Illinois.
A dismissal with prejudice operates as a final adjudication on the merits under Federal Rule of Civil Procedure 41. It permanently extinguishes Vector Licensing's right to bring the same patent claims — based on US9686655B2 and the conduct alleged in Case No. 1:22-cv-06664 — against Datto in any future proceeding. Vector Licensing retains the right to assert the patent against other parties.
Yes. The dismissal with prejudice resolves only the dispute between Vector Licensing and Datto. US9686655B2 remains an active, enforceable patent. No invalidity ruling, reexamination, or IPR outcome affecting the patent's validity is reflected in the available record from this case. Other companies in signal transmission and communication systems remain potential targets for assertion.
The case lasted 224 days, from filing on 29 November 2022 to dismissal on 11 July 2023. No claim construction (Markman) ruling or other substantive merits decision is reflected in the available public record. The case resolved before any judicial interpretation of US9686655B2's claim scope, leaving that scope untested.
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