Corrino Holdings LLC v. Instagram Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Corrino Holdings LLC (Texas)
  • Defendant: Instagram, Inc. and Instagram, LLC (Delaware)
  • Plaintiff’s Counsel: Devlin Law Firm; Lee Sullivan Shea & Smith LLP
• Case Identification: 2:18-cv-08546, C.D. Cal., 10/04/2018
• Venue Allegations: Plaintiff alleges venue is proper because Instagram has a regular and established place of business in the Central District of California and because a substantial part of the events giving rise to the claims occurred in the district.
• Core Dispute: Plaintiff alleges that Defendant’s Instagram social media platform, including its location-based advertising services and account analytics tools, infringes five patents related to dynamically pushing information to users based on geographic location and monitoring social interactions in virtual environments.
• Technical Context: The technologies at issue relate to geotargeting, which involves delivering content to a user's device based on their physical location, and social network analytics, which involves visualizing user engagement data.
• Key Procedural History: The complaint notes that the asserted patents for location-based services ('398, '331, '599, '450) are part of a patent family descending from a common application filed in 1999. No prior litigation or post-grant proceedings are mentioned in the complaint.

Case Timeline

Date	Event
1999-10-22	Earliest Priority Date ('398, '331, '599, '450 Patents)
2002-03-05	'398 Patent Issue Date
2006-04-11	Priority Date ('149 Patent)
2009-04-28	'450 Patent Issue Date
2010-05-11	'149 Patent Issue Date
2010-11-30	'331 Patent Issue Date
2011-07-19	'599 Patent Issue Date
2018-10-04	Complaint Filing Date

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

U.S. Patent No. 6,353,398 - "System for dynamically pushing information to a user utilizing global positioning system"

The Invention Explained

• Problem Addressed: The patent's background section states that while conventional Global Positioning Systems (GPS) could provide location and directions, "more specific and detailed information related to the location is often needed" (’398 Patent, col. 1:21-24). It recognized a need for a system that could provide mobile users with information relevant to their specific location at a specific point in time, a capability "not provided for with conventional systems" (’398 Patent, col. 1:34-41).
• The Patented Solution: The invention proposes a system that links a GPS with a "directed information system" to connect geographically relevant information from databases, such as the internet, to users located in specific areas (’398 Patent, col. 2:62-67). The system employs "push technology," which is triggered by the detection of a user's movement into a predetermined region, to automatically transmit this region-specific information to the user's mobile device (’398 Patent, col. 3:48-54; Fig. 2).
• Technical Importance: This technology describes a foundational architecture for location-based services, which enables context-aware applications and targeted mobile advertising by actively sending information to users based on their real-world location (Compl. ¶¶19-20).

Key Claims at a Glance

• The complaint asserts infringement of at least independent claim 1 (Compl. ¶60).
• Claim 1 requires:
  • A system for directing region-specific information; comprising:
  • a system for locating and transmitting information to location-specific users; and
  • a directed information system for linking information related to the location specific users, the directed information system having access to a regionally defined data base for directing region-specific information to location-specific users, and employing push technology to push information to the location-specific users.
• The complaint reserves the right to modify its infringement contentions, suggesting other claims may be asserted later (Compl. ¶60).

U.S. Patent No. 7,843,331 - "System for dynamically pushing information to a user utilizing global positioning system"

The Invention Explained

• Problem Addressed: As a continuation of the '398 Patent family, the ’331 Patent addresses the same general problem of delivering timely and relevant information to mobile users based on their geographic location (’331 Patent, col. 1:39-44).
• The Patented Solution: The invention is a system that initiates the transmission of data to a user's device specifically "if the communications device's indicated geographic position changes from a first position that is greater than a predefined distance from a geographic region...to a second position that is within a predefined distance" from that region (’331 Patent, col. 2:7-12). This refines the broader push-technology concept by defining a specific trigger: a user crossing a virtual boundary, or geofence, into a targeted area.
• Technical Importance: The claimed solution provides a specific triggering mechanism for location-based advertising and notifications, a technique central to modern geotargeting campaigns where content is delivered as a user enters a defined commercial or geographic area (Compl. ¶32).

Key Claims at a Glance

• The complaint asserts infringement of at least independent claim 11 (Compl. ¶75).
• Claim 11 requires:
  • A system comprising:
  • an information source database comprising an index of information sources, wherein each information source in the index is associated with at least one geographic region; and
  • one or more processors configured to initiate the transmission of data to a communications device if the communications device's indicated geographic position changes from a first position that is greater than a predefined distance from a geographic region associated with the at least one information source to a second position that is within a predefined distance from a geographic region associated with the at least one information source.
• The complaint reserves the right to modify its infringement contentions (Compl. ¶75).

U.S. Patent No. 7,982,599 - "System for dynamically pushing information to a user utilizing global positioning system"

• Patent Identification: U.S. Patent No. 7,982,599, “System for dynamically pushing information to a user utilizing global positioning system,” issued July 19, 2011 (Compl. ¶33).
• Technology Synopsis: This patent adds a time-based limitation to the geofencing concept, describing an apparatus configured to initiate transmission of digital content only if a user's device enters a predefined location during a predefined timeframe associated with that content (Compl. ¶39).
• Asserted Claims: At least claim 10 (Compl. ¶90).
• Accused Features: Instagram's advertising platform, which allegedly allows advertisers to target users by location and to schedule the timeframe for the ad campaign to run (Compl. ¶¶33-36, 90). The complaint provides a screenshot of an ad creation interface for setting a start and end date for a campaign (Compl. p. 36).

U.S. Patent No. 7,525,450 - "System for dynamically pushing information to a user utilizing global positioning system"

• Patent Identification: U.S. Patent No. 7,525,450, “System for dynamically pushing information to a user utilizing global positioning system,” issued April 28, 2009 (Compl. ¶40).
• Technology Synopsis: This patent describes a system that maintains two indices: one for information sources (e.g., advertisers) associated with both location and demographic codes, and another for user devices associated with demographic codes. The system transmits information to a user's device based on a match between the user's location and demographic profile and the codes associated with the information source (Compl. ¶¶46, 105).
• Asserted Claims: At least claim 11 (Compl. ¶105).
• Accused Features: Instagram's advertising service, which allows advertisers to target users based on a combination of geographic location and demographic criteria such as age and gender (Compl. ¶¶40-42, 105).

U.S. Patent No. 7,716,149 - "Method, device, and program product for a social dashboard associated with a persistent virtual environment"

• Patent Identification: U.S. Patent No. 7,716,149, “Method, device, and program product for a social dashboard associated with a persistent virtual environment,” issued May 11, 2010 (Compl. ¶47).
• Technology Synopsis: This patent addresses monitoring the "social health" of a "persistent virtual environment." It describes a method of displaying a "visualization that represents a social aspect" of the environment (e.g., an "overall interactivity level") and, in response to a user command, displaying a second, "drill-down" visualization with more detailed information related to the first metric (Compl. ¶¶51, 54).
• Asserted Claims: At least claim 1 (Compl. ¶120).
• Accused Features: The "Instagram Insights" feature, which provides users with analytics dashboards visualizing metrics like follower counts, reach, and profile visits. The complaint alleges that clicking a "See More" button constitutes a "selection command" that leads to a "second visualization" with drill-down data, such as follower demographics (Compl. ¶¶120, 52-56).

III. The Accused Instrumentality

Product Identification

• The "Accused Products" are identified as the www.instagram.com website and the Instagram mobile application (Compl. ¶22). The specific functionalities accused of infringement are Instagram's location-based advertising services and its "Instagram Insights" account analytics tool (Compl. ¶¶60, 120).

Functionality and Market Context

• The complaint describes Instagram as a social networking platform that provides advertising services enabling advertisers to target users based on various criteria (Compl. ¶60). The location targeting service allegedly uses geographic data from users' mobile devices to deliver advertisements to them when they are within specific locations, such as states, cities, or a defined radius around a point (Compl. ¶¶16-17, 19). This targeting can also be limited by timeframes and combined with demographic data (e.g., age, gender) to define a specific "audience" (Compl. ¶¶35, 41-42). The complaint provides a screenshot of an advertising user interface illustrating how an advertiser can define a target audience by location, such as "United States" (Compl. p. 18).
• The "Instagram Insights" feature is described as a tool that provides account holders with "visualizations" of metrics representing account performance and follower engagement (Compl. ¶¶52, 54). These visualizations include data on "Reach," "Website Clicks," "Followers," and overall account activity (Compl. p. 54). The tool also allegedly allows users to select a metric to view more detailed "drill-down information," such as demographic breakdowns of their followers (Compl. ¶¶55-56).

IV. Analysis of Infringement Allegations

U.S. Patent No. 6,353,398 Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
A system for directing region-specific information; comprising	Instagram's social networking platform provides location targeting services for advertisers to direct region-specific ads to users.	¶60	col. 1:46-48
a system for locating and transmitting information to location-specific users	Instagram's servers monitor (locate) the geographic position of users' wireless devices and transmit information, such as advertisements, to those users.	¶60	col. 2:62-64
a directed information system for linking information related to the location specific users, the directed information system having access to a regionally defined data base for directing region-specific information to location-specific users, and employing push technology to push information to the location-specific users	Instagram's servers link advertiser information to users based on audience definitions stored in a database. These definitions include geographic regions. The system then allegedly employs push technology to deliver advertisements to users within the targeted regions.	¶60	col. 3:7-15

U.S. Patent No. 7,843,331 Infringement Allegations

Claim Element (from Independent Claim 11)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
A system comprising	Instagram's social networking platform and its associated location targeting service.	¶75	col. 2:1-2
an information source database comprising an index of information sources, wherein each information source in the index is associated with at least one geographic region	Instagram's system allegedly includes a database of advertisers (information sources) and their associated targeting parameters, including one or more geographic regions. A screenshot shows an example of "radius targeting," where an advertiser targets users within a 10-mile radius of Menlo Park, California (Compl. p. 26).	¶75	col. 2:3-6
one or more processors configured to initiate the transmission of data... if the communications device's indicated geographic position changes from a first position that is greater than a predefined distance... to a second position that is within a predefined distance from a geographic region	Instagram's servers are allegedly configured to transmit an advertiser's ad to a user's device when the device's location changes from outside to inside the predefined radius (geofence) associated with that advertiser.	¶75	col. 2:7-12

Identified Points of Contention

• Scope Questions: For the '149 Patent, a central issue may be one of definitional scope. The question for the court will be whether the term "persistent virtual environment," described in the patent in the context of online gaming communities (’149 Patent, col. 1:48-52), can be construed to read on a broad social media platform like Instagram.
• Technical Questions: For the location-based patents (e.g., '398, '331), a key technical question is whether Instagram's ad delivery mechanism, which relies on modern mobile operating systems and internet protocols, performs the functions required by the claims. For example, does Instagram's system "employ push technology" as understood in 1999 and described in the '398 patent, or does it use a different client-server or notification model that falls outside the claim scope? Similarly, the court may need to determine if Instagram's ad-serving logic is directly triggered by a device crossing a "predefined distance" boundary as required by claim 11 of the '331 patent, or if location is merely one of many inputs into a more complex ad auction and delivery algorithm.

V. Key Claim Terms for Construction

• The Term: "push technology" (from '398 Patent, Claim 1)
• Context and Importance: The infringement theory for the '398 Patent hinges on the allegation that Instagram's system employs "push technology to push information to the location-specific users" (Compl. ¶60). The construction of this term will be critical, as Defendant may argue that its system, which relies on modern, OS-mediated notifications and client-side data requests, does not meet the patent's definition of "push technology." Practitioners may focus on whether the term requires a direct, server-initiated data transmission triggered solely by location, or if it can broadly cover any non-user-solicited data delivery.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The patent describes the technology as being "based in part on movement detection provided by a global positioning system" and states that as a user moves, the "directed information system pushes information to the user" (’398 Patent, col. 3:51-54). This could support a broad reading where any system that automatically sends information based on detected movement qualifies.
  • Evidence for a Narrower Interpretation: The specification describes a specific sequence where "Upon notification of the users whereabouts by the GPS, the directed information system links relevant information... and subsequently provides the information to the GPS for transmittal to the user" (’398 Patent, col. 3:55-59). This language, along with diagrams showing a direct link from the "GPDIS SYSTEM" to the "MOBILE USER" (’398 Patent, Fig. 2), could be used to argue for a narrower construction limited to a system where the GPS component directly triggers the server to transmit data, as opposed to a modern system where an app periodically reports location to a server that uses this data for later targeting.

VI. Other Allegations

Indirect Infringement

• The complaint alleges that Instagram induces infringement by providing its application and website along with instructions and advertising tools that encourage advertisers and end-users to utilize the patented features (e.g., setting up location-based ad campaigns) (Compl. ¶¶63-66, 78-81). It also alleges contributory infringement, asserting that the Accused Products are specially designed to infringe and are not staple articles with substantial non-infringing uses (Compl. ¶¶67, 82). These allegations are made for all five patents-in-suit.

Willful Infringement

• For each asserted patent, the complaint alleges that Instagram "knew of the... Patent, or at least should have known..., but was willfully blind to its existence" (Compl. ¶¶62, 77). It further alleges actual knowledge dating from "at least as early as the filing and/or service of this Complaint," establishing a basis for potential post-filing willfulness (Compl. ¶¶62, 77).

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

• A central issue will be one of technological translation: whether the architecture of Instagram's modern, cloud-based advertising platform, which is deeply integrated with mobile operating systems, can be mapped onto the elements of the "directed information system" claimed in patents filed at the dawn of consumer GPS and mobile internet technology. The case may turn on whether a 2018-era social media platform is merely a new implementation of the 1999-era invention or a fundamentally different system.
• Another key question will be one of definitional scope: specifically, can the term "persistent virtual environment," which the '149 patent specification describes in the context of Massively Multiplayer Online Games (MMOGs), be construed broadly enough to cover the social graph and user interactions of a platform like Instagram?
• A third key question will be one of functional operation: the litigation will likely require a deep dive into how Instagram's ad-serving and analytics systems actually work. An evidentiary question will be whether these systems perform the specific, event-triggered functions required by the claims—such as initiating transmission because a device crossed a geofence—or if location and user interaction are simply data points fed into a more complex, multi-factor algorithm that operates on a different logic than that claimed in the patents.