DCT

2:24-cv-03261

Square Entertainment LLC v. Activate Games Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:24-cv-03261, D. Ariz., 11/21/2024
  • Venue Allegations: Plaintiff alleges venue is proper in the District of Arizona because Defendant Activate Games transacts, does, and/or solicits business in the district.
  • Core Dispute: Plaintiff seeks a declaratory judgment that its Pixel™ Game System does not infringe Defendant's patent for interactive floor games and that the patent is invalid.
  • Technical Context: The technology at issue involves immersive, interactive amusement systems where players interact with a grid of sensor-equipped, light-up floor tiles.
  • Key Procedural History: This declaratory judgment action follows a December 11, 2023, communication from Defendant’s counsel to Plaintiff's licensor, expressing concern that the Pixel™ Game System may infringe the patent-in-suit. The complaint states that Plaintiff's licensor had previously obtained a legal opinion of non-infringement and alleges that Defendant attempted to have Plaintiff’s booth removed from a 2024 industry trade show.

Case Timeline

Date Event
2020-01-20 ’171 Patent Priority Date
2022-11-29 ’171 Patent Issue Date
2023-05-01 Plaintiff's licensor (Pixel GmbH) aware of ’171 Patent (at least by)
2023-06-01 Pixel GmbH obtains Opinion of Non-Infringement
2023-11-13 IAAPA Expo where Pixel GmbH exhibited (week of)
2023-11-20 Pixel GmbH ceases advertising in the U.S. (at least by)
2023-12-11 Defendant's counsel sends letter to Pixel Games concerning infringement
2023-12-19 Counsel for Plaintiff's licensor responds to Defendant's letter
2023-12-29 Pixel GmbH assigns IP to SIP Lizenz-und Rechteverwaltungs UG
2024-02-01 Plaintiff begins marketing the Pixel Game System in the U.S. (on or around)
2024-10-31 Plaintiff receives email from alleged co-owner of Defendant regarding infringement
2024-11-18 Plaintiff receives email quote request referencing franchise exclusivity
2024-11-19 Defendant registers complaint with IAAPA to shut down Plaintiff's booth
2024-11-21 Complaint for Declaratory Judgment filed

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 11,511,171 - "Interactive Floor and Amusement Systems and Methods Employing Same"

  • Patent: ’171 Patent
  • Issued: November 29, 2022

The Invention Explained

  • Problem Addressed: The patent background describes a "yearning by the public for a greater variety of immersive amusement attractions and experiences" as an alternative to conventional amusement parks or smaller-scale attractions like laser tag ( '171 Patent, col. 1:22-36).
  • The Patented Solution: The invention is an amusement system within an enclosed room that features a wall-to-wall interactive floor composed of an array of illuminable panels. A sensing system detects when a participant steps on a panel, and a controller orchestrates a game. In the gameplay, the controller designates a subset of panels as "hazards" and penalizes players for stepping on them, while also designating other "targets" that players must actuate to complete the game ('171 Patent, Abstract; col. 1:41-65). The system is designed to force interaction by having the interactive floor occupy the substantial entirety of the room space ('171 Patent, col. 2:36-40).
  • Technical Importance: The claimed system creates a fully immersive, physically-bounded game space where player movement and interaction with the floor are central to the gameplay.

Key Claims at a Glance

  • The complaint references an opinion of non-infringement concerning independent claims 1, 9, and 14 (Compl. ¶20).
  • The essential elements of independent claim 1 include:
    • An amusement system with an interactive floor comprising an array of panels, an illumination system to light each panel independently, and a sensing system to detect a participant's presence on each panel.
    • A controller that executes a gameplay sequence by designating a subset of panels as "hazard panels" to be avoided.
    • The controller triggers illumination of the hazard panels, monitors for participant presence on them, and executes a penalty if presence is detected.
    • The controller also monitors for the actuation of "one or more targets," which are "separate and distinct" from the floor panels, to successfully complete the game.
  • The complaint seeks a declaratory judgment of non-infringement and invalidity as to all claims of the '171 Patent (Compl. ¶45, Prayer for Relief ¶A, B).

III. The Accused Instrumentality

Product Identification

The Pixel™ Game System, for which Plaintiff Square Entertainment is the exclusive North American licensee (Compl. ¶10).

Functionality and Market Context

  • The Pixel™ Game System is a "floor stepping game" comprising an array of floor tiles, each with an internal light source and a sensor to detect when a player steps on it (Compl. ¶15). A photograph from Exhibit B shows the Pixel™ Game System installed at a trade show, depicting an interactive floor of illuminated square tiles on which a person is standing (Compl. Ex. B, p. 56).
  • The complaint alleges a key technical distinction is that the Pixel product uses a "tunable capacitance sensor" not enabled by the '171 Patent, which allegedly only discloses a mechanical pressure sensor (Compl. ¶¶20, 44). The patent application for the Pixel system describes this sensor as capable of detecting player proximity, not just contact, and being tunable for sensitivity (Compl. Ex. A, [0042], [0075]).
  • The parties appear to be direct competitors in the market for interactive entertainment attractions. Exhibit D includes a marketing email for the Pixel product, showing an image of the illuminated floor and describing it as an "interactive, multi-game, addicting, attendant free gaming floor attraction" (Compl. Ex. D, p. 81).

IV. Analysis of Infringement Allegations

The complaint seeks a declaratory judgment of non-infringement. The analysis below summarizes the plaintiff's primary argument for why its product does not meet the limitations of the patent’s claims, focusing on independent claim 1 as a representative example.

’171 Patent Infringement Allegations

| Claim Element (from Independent Claim 1) | Alleged Non-Infringing Functionality | Complaint Citation | Patent Citation |
|:---------------------------------------------|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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| a sensing system operable to detect presence of any participant atop any panel of the array | Plaintiff alleges the Pixel™ Game System employs a "tunable capacitance sensor" that operates differently and is not covered by the claims of the '171 Patent. | ¶¶20, 44 | col. 7:1-15 |
| [the system is comprised of] normally-open switches...closed when a participant...exerts body weight or other downforce on the respective floor panel | Plaintiff's non-infringement theory is that the '171 Patent's "sensing system" is limited to the disclosed mechanical pressure-based switch, which the Pixel™ Game System does not incorporate. The accused product's capacitive sensor may be tuned to detect proximity without requiring physical force or contact. | ¶¶20, 44; Ex. A, [0075] | col. 7:22-26 |

  • Identified Points of Contention:
    • Scope Questions: A principal dispute will be whether the term "sensing system" in the '171 Patent should be interpreted broadly to encompass any sensor that detects player presence, or if its scope is limited to the mechanical, pressure-activated switch structure described in detail in the patent's specification. The complaint suggests this may be a means-plus-function dispute (Compl. ¶20).
    • Technical Questions: Independent of claim construction, a factual question is whether the operation of the accused capacitive sensor is technically equivalent to the claimed "sensing system." The court may need to determine if a system that can detect mere proximity functions in the same way as a system that requires physical "downforce" to close a "normally-open switch" ('171 Patent, col. 7:22-26).

V. Key Claim Terms for Construction

  • The Term: "a sensing system operable to detect presence of any participant atop any panel of the array"
  • Context and Importance: The construction of this term is central to the plaintiff's non-infringement argument. A narrow construction limited to the disclosed embodiment would support the plaintiff's position, while a broader one may favor the defendant. Practitioners may focus on this term because the plaintiff has explicitly based its non-infringement theory on the assertion that its capacitive sensor falls outside the scope of the patent's disclosed mechanical pressure sensor (Compl. ¶¶20, 44).
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The defendant (patentee) may argue that "sensing system" is a standard structural term, not a functional "means-for" term, and should be given its plain and ordinary meaning, which could be broad enough to include capacitive sensors. The claim language itself is functional ("operable to detect presence") but does not use the "means for" phrasing that triggers a means-plus-function analysis.
    • Evidence for a Narrower Interpretation: The plaintiff may argue that the specification consistently describes the invention using pressure-based language. The patent refers to "weight-responsive cells" ( '171 Patent, col. 3:4), contact lugs being "displaced downwardly" under "body weight or other downforce" ( '171 Patent, col. 7:6-15), and a circuit with a "normally-open switch" ( '171 Patent, col. 7:22). The consistent description of a single mechanical/pressure-based embodiment may be used to argue for a narrower construction that excludes the accused capacitive technology.

VI. Other Allegations

  • Indirect Infringement: The complaint seeks a declaration that it does not infringe "directly or indirectly, literally or under the doctrine of equivalents" (Compl. ¶45; Prayer for Relief ¶A).
  • Willful Infringement: Willfulness is not alleged, as this is a declaratory judgment action filed by the accused infringer. However, the complaint preemptively addresses the issue of knowledge by stating that Plaintiff's licensor was aware of the '171 Patent and proactively obtained an opinion of counsel concluding that its products do not infringe (Compl. ¶¶18, 20). This fact may be used later to rebut any potential charge of willful infringement.

VII. Analyst’s Conclusion: Key Questions for the Case

  • A core issue will be one of claim construction: Is the term "sensing system" in the ’171 Patent limited to the mechanical, pressure-based switch explicitly described in the specification, as Plaintiff contends, or is it a broader term that covers the "tunable capacitance sensor" used in the accused Pixel™ Game System?
  • A second central question will be one of invalidity: The complaint alleges that "stepping games" have been in existence for over 25 years (Compl. ¶15) and seeks a declaration that the '171 Patent is invalid over prior art (Compl. ¶¶48-49). The case may therefore turn on whether the specific combination of an interactive floor with "hazard panels" and separate, distinct "target devices" as claimed in the patent was novel and non-obvious at the time of the invention.