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Sandpiper CDN v. Microsoft — Court refused to dismiss willfulness claims

Reported / Citable

Case
Sandpiper CDN, LLC v. Microsoft Corporation
Court
U.S. District Court for the Eastern District of Texas
Judge
Rodney Gilstrap
Date Decided
July 13, 2026
Docket No.
2:25-cv-00664-JRG-RSP
Topics
Patent Litigation; Willfulness; Motion to Dismiss

Background

Sandpiper CDN, LLC sued Microsoft Corporation in the Eastern District of Texas. Microsoft moved to dismiss the willfulness claims in Sandpiper’s second amended complaint.

Magistrate Judge Payne issued a report and recommendation advising that Microsoft’s motion be denied. Microsoft objected, and Sandpiper responded to those objections.

The Court’s Holding

After reviewing the motion briefing, the report and recommendation, and the parties’ briefing on Microsoft’s objections de novo, District Judge Rodney Gilstrap agreed with the magistrate judge’s reasoning.

The court concluded that Microsoft’s objections did not show that the report and recommendation was erroneous. It therefore overruled the objections, adopted the report and recommendation, and denied Microsoft’s motion to dismiss Sandpiper’s willfulness claims.

Key Takeaways

  • Sandpiper’s willfulness claims survived Microsoft’s motion to dismiss.
  • The district court conducted a de novo review of the challenged recommendation.
  • The one-page order adopted the magistrate judge’s reasoning without separately discussing the allegations or governing legal standard.

Why It Matters

The ruling allows Sandpiper to continue pursuing its willfulness theory against Microsoft at this stage of the litigation. The order does not decide the merits of willfulness; it resolves only Microsoft’s attempt to dismiss those claims from the second amended complaint.

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