Knighton

I. BACKGROUND

Knighton founded NextEngine, a company “involved in research, development, manufacturing, and sale of three dimensional laser scanners.” NextEngine Inc. v. NextEngine, Inc., 2021 WL 4026759, at *1 (C.D. Cal. Sept. 3, 2021). He is also the Chairman, Chief Executive Officer, and largest shareholder of NextEngine. NextEngine has patent protection in a portfolio of about twenty patents (“IP”). Michael Gleissner was one of the first principal investors in NextEngine, acquiring stock and giving NextEngine capital through his venture capital firm, Bigfoot. Between 2002 and 2005, Bigfoot made several loans to NextEngine

BIGFOOT VENTURES LIMITED V. KNIGHTON

through secured promissory notes. These notes were secured by NextEngine’s IP. When the operative secured promissory note became due in 2008, NextEngine was not able to pay. NextEngine and Bigfoot agreed to restructure that loan pursuant to a Secured Promissory Note (“2008 Note”) and five Agreements 2 (collectively, the “2008 Agreements”). The restructuring did not alter Bigfoot’s first place security interest in NextEngine’s IP. Id. at *2. As part of the Assignment and License…