DCT
3:25-cv-07759
Shopsee Inc v. TikTok Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: ShopSee, Inc. (Delaware)
- Defendant: TikTok, Inc. (California)
- Plaintiff’s Counsel: Latham & Watkins LLP
- Case Identification: 7:24-cv-00333, W.D. Tex., 03/10/2025
- Venue Allegations: Plaintiff alleges venue is proper in the Western District of Texas because Defendant TikTok maintains a regular and established place of business in Austin, Texas, evidenced by its physical offices, executive leadership, employee hiring, substantial investments, and its "Project Texas" data storage initiative within the district.
- Core Dispute: Plaintiff alleges that Defendant’s TikTok platform, particularly its integrated e-commerce feature TikTok Shop, infringes a patent related to providing interactive shopping and social media layers over streaming video content.
- Technical Context: The technology at issue enables "shoppertainment," where viewers can purchase products or interact socially directly within a video stream without interrupting the primary content, representing a significant model for social commerce.
- Key Procedural History: The complaint is a First Amended Complaint. Plaintiff alleges it provided Defendant with pre-suit notice of the asserted patent and its alleged infringement via letters to Defendant's CEO and legal counsel.
Case Timeline
| Date | Event |
|---|---|
| 2016-12-28 | U.S. Patent No. 11,134,316 Priority Date |
| 2021-09-28 | U.S. Patent No. 11,134,316 Issues |
| 2024-12-XX | Defendant allegedly received notice of infringement via original complaint filing |
| 2025-03-10 | First Amended Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
- Patent Identification: U.S. Patent No. 11,134,316, “Integrated Shopping within Long-Form Entertainment,” issued September 28, 2021.
The Invention Explained
- Problem Addressed: The patent’s background section describes a "dramatic shift in consumer behavior regarding online entertainment," where consumers increasingly use ad-blocking technology or switch to ad-free streaming services, causing a significant loss of advertising revenue for media companies and content producers (’316 Patent, col. 1:30-51).
- The Patented Solution: The invention proposes a method for integrating interactive layers directly into streaming video content to create a "seamless entertainment and marketing experience" (’316 Patent, col. 2:8-12). A first layer enables viewers to select and purchase items displayed in the video (e.g., clothing worn by an actor) without being redirected to a separate website, thereby avoiding interruption of the content (’316 Patent, col. 3:29-37). A second layer integrates a social media function, allowing users to discuss the content with others in a private or public forum, also within the streaming experience (’316 Patent, col. 3:38-43).
- Technical Importance: The technology provides a non-interruptive advertising model that integrates commerce directly into entertainment content, seeking to align the interests of viewers, advertisers, and media companies (’316 Patent, col. 2:22-27).
Key Claims at a Glance
- The complaint asserts independent system claim 18 (’316 Patent, col. 38:18-52; Compl. ¶46).
- Claim 18 requires, among other things:
- A software module for receiving a user request for information about items in a video.
- A software module for linking those items with marketing or purchasing information.
- A software module for generating a "first interactive layer" to display with the video, containing the items of interest linked to the purchasing information.
- A software module for generating a "second interactive layer" to display with the video, which contains a "social media portion" allowing a user to interact with other viewers, view past interactions, and is "capable of maintaining and toggling between a plurality of different conversations."
- A software module for transmitting these layers to the user's device.
- The complaint alleges infringement of "one or more claims," suggesting other claims may be asserted later in the litigation (Compl. ¶45).
III. The Accused Instrumentality
Product Identification
- The accused instrumentalities are the "TikTok platform, including but not limited to the TikTok Shop, TikTok LIVE, and TikTok features and services enabling advertising, marketing, or purchasing items, services, or songs" (collectively, "TikTok Accused Products") (Compl. ¶46).
Functionality and Market Context
- The complaint describes the TikTok platform as a social media service for short-form video and livestreaming (Compl. ¶28). The TikTok Shop feature is an integrated e-commerce component that allows sellers to create "Shoppable Videos" and "LIVE Shopping" events (Compl. ¶¶31-32). These features are alleged to be "interactive video content designed to showcase products and allow viewers to purchase directly from the video itself" for a "seamless shopping" experience (Compl. ¶31). A screenshot in the complaint shows tabs for navigating between content feeds and a dedicated "Shop" section (Compl. p. 15). The platform also includes social features such as commenting, liking, and sharing video content (Compl. ¶30). The complaint asserts that TikTok Shop has achieved significant commercial success, with sales projected to reach $17.5 billion in 2024 (Compl. ¶39).
IV. Analysis of Infringement Allegations
’316 Patent Infringement Allegations
| Claim Element (from Independent Claim 18) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a) a software module for receiving a request for the generation of information regarding items, services, or songs presented in a video media from a first processing device of a user | TikTok users initiate a request by tapping on an embedded product link within a "Shoppable Video" or "LIVE Shopping" stream (Compl. ¶31, p. 17). The complaint includes a visual from a sample Video Shopping Ad that instructs the user to "Tap the product link" (Compl. p. 17). | ¶31, ¶35 | col. 7:21-25 |
| b) a software module for linking the items, services, or songs with marketing and/or purchasing information | TikTok instructs sellers to create Shoppable Videos that "include product links that are clickable by TikTok users" (Compl. ¶35). The platform provides tools for sellers to associate their products with videos (Compl. ¶36). A visual from a sample LIVE Shopping Ad shows a "product card" that users can tap (Compl. p. 18). | ¶31, ¶35, ¶50 | col. 7:26-29 |
| c) a software module for the generation of a first interactive layer to display with the video media, wherein said first interactive layer contains the items, services, or songs of interest linked to the marketing and/or purchasing information | The "Shoppable Videos" feature allegedly constitutes the first interactive layer, overlaying clickable product links and purchase options on the video content (Compl. ¶31). A provided graphic illustrates a three-step process where a user taps an in-feed ad, is shown a product detail page, and proceeds to a checkout page, all allegedly within the TikTok application (Compl. p. 17). | ¶31, ¶34 | col. 7:30-34 |
| d) a software module for the generation of a second interactive layer ... contain[ing] a social media portion ... to interact with ... at least one guest ... wherein an interaction ... and past interaction activity ... are displayed ... and wherein the user is capable of maintaining and toggling between a plurality of different conversations | The platform’s commenting feature allegedly constitutes the second interactive layer, allowing users to "interact and build connections with the TikTok community" (Compl. ¶30). The complaint includes a screenshot showing a comment feed displayed over a video, where users can see comments from others (Compl. p. 16). | ¶30 | col. 7:35-40 |
| e) a software module for transmitting the first and second interactive layers to the first processing device of the user | The TikTok platform, by its nature as a client-server application, transmits video content and its associated interactive features (e.g., Shoppable Video links, comment sections) to users' devices for display (Compl. ¶28). | ¶28 | col. 7:41-43 |
Identified Points of Contention
- Scope Questions: The ’316 patent is titled "Integrated Shopping within Long-Form Entertainment" and its specification discusses television shows and movies (’316 Patent, Title, col. 1:21-26). A potential issue is whether the patent's claims can be construed to cover the short-form, user-generated video content that characterizes the TikTok platform.
- Technical Questions: Claim 18(d) requires a "social media portion" where a user is "capable of maintaining and toggling between a plurality of different conversations." The complaint points to TikTok's general commenting feature (Compl. ¶30), but it does not provide specific evidence that this feature allows for "maintaining and toggling" between distinct conversations as might be understood in a dedicated chat or forum interface. The question is whether a single, linear comment thread meets this specific functional limitation.
- Technical Questions: The patent specification emphasizes a seamless experience where the "user never leaves the video media" and the "interactive video layer is still on while video media is streaming content" (’316 Patent, col. 3:29-37). The complaint's own visual evidence depicts a multi-step checkout flow that navigates from the video to a product page and then a checkout page (Compl. p. 17). This raises the question of whether this in-app navigation sequence constitutes an "interactive layer to display with the video media," or if it is a departure from the streaming content that falls outside the claimed invention.
V. Key Claim Terms for Construction
The Term: "interactive layer to display with the video media" (Claim 18)
- Context and Importance: The definition of this term is critical to determining whether TikTok's in-app purchasing flow infringes. The dispute may center on whether "with the video media" requires simultaneous display (i.e., a true overlay) or can encompass a sequence of screens within the same application that temporarily replaces the video.
- Intrinsic Evidence for Interpretation:
- Evidence for a Narrower Interpretation: The specification states that when a user makes a purchase, "the user is not directed to another web site; instead, the first interactive video layer is still on while video media is streaming content," which means "the user never leaves the video media" (’316 Patent, col. 3:29-35). This language may support a construction requiring a persistent, simultaneous overlay.
- Evidence for a Broader Interpretation: The term "with" could be argued to mean "in connection with" or "within the same application as," which might accommodate an in-app flow that navigates away from the video but does not force the user into a separate web browser or application.
The Term: "maintaining and toggling between a plurality of different conversations" (Claim 18)
- Context and Importance: This limitation defines a specific functionality of the claimed "social media portion." Infringement will depend on whether TikTok's commenting and messaging features meet this requirement. Practitioners may focus on this term because standard social media comment threads may not inherently support "toggling between conversations."
- Intrinsic Evidence for Interpretation:
- Evidence for a Narrower Interpretation: Patent figures depict a "living room" social space with distinct "siderooms," suggesting the inventors envisioned a more structured chat environment where a user could actively switch between separate, parallel conversations (’316 Patent, Fig. 11). This may support a construction requiring more than a single, continuous comment feed.
- Evidence for a Broader Interpretation: A party could argue that navigating between the comment sections of different videos, or switching between a public comment thread and a user's direct messages, constitutes "toggling between a plurality of different conversations" within the overall platform.
VI. Other Allegations
- Indirect Infringement: The complaint alleges active inducement of infringement under 35 U.S.C. § 271(b) (Compl. ¶50). The factual basis for this claim is Defendant's alleged marketing of the TikTok Shop and its instructions to sellers and advertisers—via materials on its "TikTok Shop Academy"—on how to create and use Shoppable Videos and LIVE selling features (Compl. ¶¶35, 50).
- Willful Infringement: Willfulness is alleged based on Defendant’s purported knowledge of the ’316 patent. The complaint alleges Plaintiff provided pre-suit notice by sending letters to Defendant’s CEO and legal counsel (Compl. ¶42). It further alleges that Defendant's continued operation of the accused platform after receiving this notice, and no later than the filing of the original complaint in December 2024, constitutes willful and deliberate infringement (Compl. ¶¶42-43, 55).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can patent claims rooted in the context of "long-form entertainment" like television shows be construed to cover the short-form, user-generated content ecosystem of the accused TikTok platform?
- A key evidentiary question will be one of functional correspondence: does TikTok's general-purpose comment feed perform the specific, multi-part function of "maintaining and toggling between a plurality of different conversations" as required by Claim 18, or does the claim require a more complex, chat-like interface that is absent from the accused feature?
- The case may also turn on a question of technical operation: does the accused multi-step, in-app checkout process qualify as an "interactive layer display[ed] with the video media," or does it constitute a departure from the streaming content that places it outside the scope of an invention described as never requiring the user to leave the video?