STEMER Intellectual Property

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Stemer Law’s Colorado IP Troll Case Heats Up, As Judge Issues Stark Warning

A few months ago I wrote about a Law360 article that quoted me calling my adversaries “trolls” to a Judge in Federal Court.

Those cases are still moving along, somehow.

In case you missed it - over the summer, a California bong-maker, GS Holistic LLC, filed nearly 50 identical cases in the District of Colorado, alleging that dozens of Colorado smoke shops were intentionally selling counterfeit versions of their bongs. In true IP-Troll fashion, the mass of complaints filed by a Florida law firm were copy and pasted, with big scary words intended to intimidate Defendants into settling, but without any meaningful facts or allegations.

Well, Federal Magistrate Judge N. Reid Neureiter caught wind of these robo-filed cases and issued a strongly-worded Order to Show Cause, requiring Plaintiff and Plaintiff’s lawyer to show up in person to assure the Court that they have a legitimate basis for their cases and that they plan to litigate according to the rules. We all gathered in court for the September hearing, where things seemed to get back on track.

That did not last.

Fast forward to January 12, 2024, after Plaintiff failed to follow local rules, federal rules, and deadlines, the Judge issued another biting order. In the order, which is the subject of the latest Law360 article about the cases, he called out Plaintiff for their “chaotic” prosecution, saying he has “no confidence” they can successfully work on this case load. He issued a stark warning too - if they continue their violations, he may end up dismissing all of their cases.

While the January 12 order did indeed “chide” Plaintiff, as the Law360 headlines says, it is my opinion that it also shows the the District of Colorado and Magistrate Judge N. Reid Neureiter's commitment to finding a fair result for all litigants, in spite of the complications that these mass filings have created. As I am quoted as saying in the Law360 article - "the record is clear that the plaintiff has been given a multitude of chances to course correct, but they continue to flounder.”

Not as blistering as calling them trolls on the record in open court, but it is still the truth … and what I said about my clients is also the truth, "…the Defendants, as small business owners, are an important part of Colorado's culture and economy and will not be cast aside."