Uniloc’s Funding Deal With Fortress Spurs Litigation Setbacks

Uniloc Luxembourg SA has suffered a series of losses in patent infringment cases after U.S. district courts ruled it defaulted on a loan from a Fortress Investment Group affiliate—money Uniloc used to pay for the lawsuits against Apple Inc. and other companies.

Uniloc’s most recent setback came last week, when Judge Colm Connolly in the U.S. District Court for the District of Delaware threw out an infringement lawsuit that it had filed against Motorola Mobility LLC.

Connolly found Uniloc defaulted on the loan when it fell short of a revenue target imposed by Fortress. Because Uniloc ceded rights in the ...