Justia Internet Law Opinion Summaries

The 314 patent, its continuation, the 492 patent, and the 639 patent, relate to electronic commerce; products are offered and purchased through computers interconnected by a network. The patents arise from a software system called “Transact,” developed in 1996 by Open Market. In 2001 Open Market was sold, with the Transact software and patents, to Divine, which was unable to provide support for the complex product and declared bankruptcy. Soverain acquired the Transact software and patents, then sued seven online retailers for patent infringement. The defendants, except Newegg, took paid up licenses to the patents. Newegg declined to pay, stating that its system is materially different and that the patents are invalid if given the scope asserted by Soverain: similar electronic commerce systems were known before the system; the Transact software was generally abandoned; and Newegg’s system, based on the different principle of using “cookies” on the buyer’s computer to collect shopping data, is outside of the claims. The district court awarded Soverain damages and an ongoing royalty and held that the claims were not invalid as obvious. The Federal Circuit reversed in part, holding that claims in the all of the patents are invalid for obviousness. View "Soverain Software, LLC v. Newegg, Inc." on Justia Law

Parallel owns a patent, entitled “Method and Apparatus for Client-Server Communication Using a Limited Capability Client Over a Low-Speed Communications Link.” The application was filed in 1999 and addressed problems in using generic software applications on “handheld and credit-card-sized” computers, often operated over low-speed or wireless networks. Generic applications in that environment occupied considerable storage space on the host computer (they had to include capabilities for adapting to many different settings) and required multiple, data-intensive transfers of information between the server and the computer (they were not designed with the limitations of low-speed networks in mind). The patent’s solution was a “dynamically generated, transient applet,” a small program that typically performs one task. Applets and related technology, “plug-ins,” pre-dated the patent, and could be used to provide “dynamic” capabilities to web pages. The patent claimed a new type of applet, better suited to the needs of “limited capability clients.” Parallel sued 120 defendants with websites that provide applets in response to user requests in a manner that, according to Parallel, infringes the patent. The district court construed terms, including “executable applet,” “data interface capability,” and “dynamically generated” and ruled in favor of most of the defendants. The Federal Circuit affirmed. View "Parallel Networks, LLC v. Abercrombie & Fitch Co." on Justia Law

Keskes owned and managed Asena, a resale operation that sold goods on its own website, eBay, and Amazon.com. Between 2006 and 2009, Keskes sold more than $3.5 million in merchandise and disbursed more than $12.2 million but none of its checks was written to manufacturers of products sold. Instead, Keskes wrote checks totaling $3.1 million to “Cash” and another $2.1 million to individuals. FBI agents searched Keskes’s warehouse and seized enough merchandise to fill 350 large boxes. Many items still had security tags or store price tags on them. No documents were found to indicate a legitimate source. Convicted of six counts of wire fraud and five counts of mail fraud, Keskes was sentenced to 78 months’ imprisonment. The Seventh Circuit affirmed, rejecting arguments that the district court erred in denying a mistrial based on the prosecutor’s comment that a judge had issued a search warrant for Keskes’s warehouse, that the court erred in admitting testimony about “gypsies” being thieves and testimony about statements attributed to a man named “Robert,” and that the court erred at sentencing by relying on his silence as a sign of a lack of remorse and by relying on an inaccurate fact. View "United States v. Keskes" on Justia Law

Plaintiff appealed the district court's dismissal of his complaint for lack of personal jurisdiction. At issue was whether a court in Connecticut could properly exercise long-arm jurisdiction over a defendant who, while domiciled and working in Canada, was alleged to have accessed a computer server located in Connecticut to misappropriate confidential information belonging to her employer. The court held that Connecticut district court had long-arm jurisdiction over defendant; defendant had sufficient minimum contacts in Connecticut; and the exercise of personal jurisdiction comported with due process. Accordingly, the court reversed and remanded. View "MacDermid, Inc. v. Deiter" on Justia Law

These consolidated appeals arose from the district court's appointment of a receiver of Jeffrey Baron's personal property and entities he owned or controlled. Barron and Munish Krishan formed a joint venture involving the ownership and sale of internet domain names. Disputes arose between the venturers, resulting in at least seven lawsuits. The district court subsequently sought to stop Baron's practice of regularly firing one lawyer and hiring a new one. Baron appealed the receivership order and almost every order entered by the district court thereafter. The court reversed and remanded, holding that the appointment of the receiver was an abuse of discretion. Numerous motions and a writ of mandamus to overturn the bankruptcy court's striking of notices of appeal to the district court were also before the court. Most were denied as moot and the court addressed the remaining motions that were relevant. View "Netsphere Inc., et al v. Baron" on Justia Law

A jury found that Lawson infringes ePlus’s method and system claims for “electronic sourcing,” which is similar to online shopping. The specification explains that electronic sourcing systems existed in prior art, but those older systems only enabled the user to generate a single purchase order that would be submitted to a single vendor. One important feature of the claimed invention is ability to divide a single requisition (or shopping list) into multiple purchase orders. The patented invention includes a computer that maintains a catalog database of items available from at least two vendors. Vendors may be manufacturers, distributors, or resellers. The user can search vendor catalogs for items that match certain criteria, contact vendors to determine whether a particular product is available, and switch between different catalogs to look at equivalent items. The customer then purchases the desired items. A customer adds the desired item to an “order list;” once the customer is ready to make a purchase, the system uses the order list to build a “requisition,” then determines what inventory will be used to complete the requisition and generates “purchase orders,” which are submitted to vendors. The Federal Circuit reversed in part, finding the system claims indefinite. . View "ePlus, Inc. v. Lawson Software, Inc." on Justia Law

The patent describes a “global paging system utilizing a land-based packet-switched digital data net-work (e.g. the Internet) and a feature for permitting subscribers to remotely designate countries in which they are, or expect to be, located.” The patent asserts that prior art was deficient because it did not fulfill the need for a cheap and efficient global paging system that allows users to “remotely input country designations in which they are to be paged,” noting that other than the roaming feature, the receiving user cannot input designated country locations where he expects to be and that the roam feature is expensive. TPL sued more than 100 defendants for infringement: domestic carriers and handset companies, including AT&T, T-Mobile, Sprint, Motorola, and others; software providers, including Microsoft, Yahoo, and Clickatell; and foreign carriers. The district court dismissed foreign carriers for lack of personal jurisdiction and granted summary judgment of noninfringement in favor of domestic carriers and software providers. The Federal Circuit affirmed the judgment of noninfringement to the domestic carriers, stating that the judgment applies to the foreign carriers, affirmed summary judgment of noninfringement to software providers with respect to certain claims, but vacated judgment of noninfringement with respect to others. View "Tech. Patents LLC v. T-Mobile (UK) Ltd." on Justia Law

Apple alleged that Samsung’s Galaxy Nexus smart-phone infringed patents, including the 604 patent. Asserted claim 6 of the 604 patent is directed to a “unified search” that uses heuristic modules to search multiple data storage locations. Unified search refers to ability to access information on more than one data storage location through a single interface and allows the user to search the device’s local memory and the Internet by entering a single search query. Apple alleged that the Quick Search Box unified search application of Galaxy Nexus infringes claim 6. QSB is a feature of Android, an open-source mobile software platform developed by Google. Any software developer may use Android to create applications and any handset manufacturer can install Android on a device. Galaxy Nexus is one of more than 300 available Android smartphones. The release of the allegedly infringing version of the Android platform predated release of Galaxy Nexus, but Google is not a defendant. The district court enjoined sale of the Galaxy Nexus based on the alleged infringement of the 604 patent. The Federal Circuit reversed. The record did not permit the inference that the allegedly infringing features of the Galaxy Nexus drive consumer demand or the court’s clam construction. View "Apple Inc. v. Samsung Elec. Co., Ltd." on Justia Law

Plaintiffs filed a putative class action against Facebook and others complaining that Facebook's program, Beacon, was causing publication of otherwise private information about their outside web activities to their personal profiles without their knowledge or approval. Beacon operated by updating a member's personal profile to reflect certain actions the member had taken on websites belonging to companies that had contracted with Facebook to participate in the Beacon program. At issue on appeal was whether the district court abused its discretion in approving the parties' $9.5 million settlement agreement as "fair, reasonable, and adequate," either because a Facebook employee sat on the board of the organization distributing cy pres funds (DTF) or because the settlement amount was too low. The court concluded that objectors' contention that the settling parties were prohibited from creating DTF to disburse cy pres funds was without merit, and the district court did not abuse its discretion in so concluding. The court also concluded that the settlement was fundamentally fair; the notice in this case adequately apprised class members of all material elements of the settlement agreement and therefore complied with the requirements of Rule 23(e); and the district court properly limited its substantive review of the agreement as necessary to determine that it was "fair, adequate, and free from collusion." View "Lane, et al v. Facebook, Inc., et al" on Justia Law

This appeal arose from a dispute between several recording companies and defendant. Defendant willfully infringed copyrights of 24 sound recordings by engaging in file-sharing on the Internet. On appeal, the companies appealed the remedy ordered by the district court. The court concluded that the recording companies were entitled to the remedies they sought: damages of $222,000 and a broadened injunction that forbid defendant to make available sound recordings for distribution. But because the verdicts returned by the second and third juries were sufficient to justify these remedies, it was unnecessary for the court to consider the merits of the district court's order granting a new trial after the first verdict. View "Capitol Records, Inc., et al v. Thomas-Rasset" on Justia Law