DCT

1:22-cv-00610

DataQuill Ltd v. Amazon.com Inc

Log In

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:22-cv-00610, D. Del., 12/19/2022
  • Venue Allegations: Venue is asserted on the basis that each Defendant is a Delaware corporation or is otherwise organized under the laws of Delaware.
  • Core Dispute: Plaintiff alleges that Defendant’s Kindle line of e-readers and Fire tablets infringes a patent related to handheld data entry systems with integrated telecommunications capabilities.
  • Technical Context: The technology concerns the integration of data capture, processing, display, and wireless communication functions into a single, portable, handheld device.
  • Key Procedural History: The complaint alleges the patent-in-suit has a significant history of enforcement and validation. This includes a licensing program that has generated over $128 million from major technology companies, a successful jury verdict of validity and infringement against ZTE, and survival of two ex parte reexaminations and a denied petition for inter partes review at the USPTO. The complaint also details four pre-suit notice letters sent to Amazon between 2009 and 2011.

Case Timeline

Date Event
1993-10-13 U.S. Patent No. 6,058,304 Priority Date
2000-05-02 U.S. Patent No. 6,058,304 Issued
2007-11-01 Amazon first offers Kindle for sale (approx. date)
2009-12-21 DataQuill sends first notice letter to Amazon
2010-04-13 First Ex Parte Reexamination Certificate issued for '304 Patent
2011-01-01 Amazon launches Kindle Touch and Kindle Fire (approx. date)
2022-05-06 Original Complaint Filed
2022-05-31 Second Ex Parte Reexamination Certificate issued for '304 Patent
2022-12-19 Second Amended Complaint Filed

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

  • Patent Identification: U.S. Patent No. 6,058,304, “Data Entry Systems,” issued May 2, 2000.

The Invention Explained

  • Problem Addressed: The patent describes prior art data entry systems for applications like merchandise ordering as being bulky and inconvenient, often requiring two hands—one to hold a processing unit and another for a separate scanner wand (’304 Patent, col. 1:8-24).
  • The Patented Solution: The invention is a self-contained, handheld data entry unit that integrates a sensor for capturing data (e.g., a bar code reader), a controller (processor), rewritable memory, a display screen, and a telecommunications interface into a single, portable device, often configured like a pen (’304 Patent, Abstract; col. 2:13-29). This integration enables a user to capture, view, and transmit data to a remote center using one hand, with a particular focus on wireless communication like cellular networks (’304 Patent, col. 3:4-14).
  • Technical Importance: The invention consolidated the functions of data capture and remote communication into a single portable device, facilitating mobile commerce and data management in a way that was not feasible with the multi-component systems of the time (’304 Patent, col. 5:1-11).

Key Claims at a Glance

  • The complaint asserts independent claims 81 and 100, which were added or amended during reexamination (Compl. ¶65, ¶79).
  • Essential elements of asserted independent claim 100 include:
    • A data entry device for use in a data entry system
    • A reading sensor (e.g., a touch sensitive screen)
    • A controller coupled to the sensor
    • A communications interface (e.g., cellular) operable to connect to a wireless network
    • A display coupled to the controller
    • The device comprising a unitary assembly
    • A carrier (e.g., the display) for data/command codes
    • The controller configured to respond to an update command to cause downloading of information
  • Essential elements of asserted independent claim 81 include:
    • A hand holdable data entry device
    • A reading sensor (e.g., a touch sensitive screen)
    • Rewritable storage
    • A controller connected to the sensor and storage
    • A display for user-readable representations of commands and data
    • A telecommunications interface for telephonic transmission/reception
    • A speaker and microphone for use as a telephone handset
    • The controller responsive to a command to download information for updating stored data
  • The complaint reserves the right to assert numerous other claims, including dependent claims (Compl. ¶92).

III. The Accused Instrumentality

Product Identification

  • The "Infringing Products" are identified as over 22 generations of devices in Amazon's "Kindle product line," including but not limited to the Kindle, Kindle DX, Kindle Touch, Kindle Fire, and subsequent "Fire"-branded tablets (Compl. ¶8, ¶28-29).

Functionality and Market Context

  • The accused products are handheld electronic devices that provide users with access to Amazon's digital content ecosystems, such as the Kindle Store and Amazon Appstore (Compl. ¶29). They incorporate a user input mechanism, which the complaint alleges is a "reading sensor," in the form of either a navigation pad on earlier models or a touchscreen on later models (Compl. ¶25-26). These devices use wireless connectivity (e.g., cellular "Whispernet" or Wi-Fi) to communicate with remote Amazon servers to browse, purchase, download, and manage digital content such as e-books, applications, and media (Compl. ¶29, ¶71, ¶75). The complaint also alleges that certain Fire HD models are enabled as telephone handsets via VoIP applications like Alexa or Skype (Compl. ¶85, ¶88).

IV. Analysis of Infringement Allegations

The complaint references a Kindle Oasis user manual explaining how a user can configure the "Page Turn Buttons" to accommodate left-handed or right-handed operation (Compl. ¶93). This allegation appears to map to dependent claim 85 and the patent's disclosure regarding programmable display orientation for right- or left-handed use (’304 Patent, col. 4:1-12).

’304 Patent Infringement Allegations (Claim 100)

Claim Element (from Independent Claim 100) Alleged Infringing Functionality Complaint Citation Patent Citation
a data entry device for use in a data entry system Accused Kindle Products are alleged to be data entry devices used in a data entry system (Compl. ¶66). ¶66 col. 2:13-14
a reading sensor responsive to commands and/or sensed commands and data... Each Accused Kindle Product has a touchscreen, which the complaint alleges is a reading sensor responsive to commands and data, such as touches corresponding to hypertext links or menu items (Compl. ¶67-68). ¶67-68 col. 2:15-17
a controller coupled to the touch sensitive screen The Accused Kindle Products contain circuitry, including a controller and processor, coupled to the touchscreen to receive and process input signals (Compl. ¶69). ¶69 col. 2:19-21
a communications interface... to selectively control transmission The devices contain a communications interface (e.g., 3G cellular antenna and circuitry) that transmits command/data signals when a user navigates the Kindle Store or requests a download (Compl. ¶70-71). ¶70-71 col. 2:23-29
a controller... responsive to an update command to cause downloading... The controller is alleged to respond to commands like "Update Your Kindle" or "Sync My Kindle" to cause downloading of software updates or user account information from a remote processing center (Compl. ¶76). ¶76 col. 22:15-22
a carrier... that carries data and/or command codes The display on the Accused Kindle Products is alleged to be a carrier that displays data and command codes, such as links for selectable e-books or commands like "Menu," "Update," and "Buy" (Compl. ¶77-78). ¶77-78 col. 5:21-27

’304 Patent Infringement Allegations (Claim 81)

Claim Element (from Independent Claim 81) Alleged Infringing Functionality Complaint Citation Patent Citation
a hand holdable data entry device Accused Kindle Products, such as the Fire 7 and Fire HD models, are alleged to be hand holdable data entry devices (Compl. ¶80). ¶80 col. 2:14-15
at least one reading sensor The devices include a touchscreen, which is alleged to be the claimed reading sensor for sensing commands (e.g., hypertext links) and data (e.g., X,Y touch location) (Compl. ¶81). ¶81 col. 2:15-16
rewritable storage, programmable with information relating to selectable items The devices include internal flash memory alleged to be rewritable storage, which is programmed with information like lists of available e-books, apps, or cached web pages (Compl. ¶82). ¶82 col. 2:17-19
a telecommunications interface for telephonic transmission and telephonic reception Fire HD models are alleged to have a telecommunications interface (e.g., Wi-Fi radio) used by VoIP apps like Alexa or Skype for telephonic transmission and reception (Compl. ¶85). ¶85 col. 2:23-29
a speaker and microphone and can be used as a telephone handset Fire HD models are alleged to include a speaker and microphone and can be used as a telephone handset via VoIP apps (Compl. ¶87-88). ¶87-88 col. 14:60-62
a touch sensitive screen additionally utilized to read coded data... which is user visible written text The touchscreen on Fire HD models is alleged to be used to read coded data, such as when a user selects visible hypertext or a URL address, which the controller then processes as the underlying HTML or URL address (Compl. ¶91). ¶91 col. 3:50-57

Identified Points of Contention

  • Scope Questions: A principal dispute may arise over the proper construction of the term "reading sensor". The complaint alleges this term covers both the physical navigation pads of early Kindles and the touchscreens of later models (Compl. ¶25-26, ¶32). The case may turn on whether a term originating in the context of optical scanners (’304 Patent, col. 6:40-44) can be construed to encompass modern capacitive touchscreens that detect user input rather than "reading" external indicia.
  • Technical Questions: A further question is whether the general-purpose operations of the accused devices perform the specific functions required by the claims. For example, does a Kindle automatically syncing a user's furthest page read constitute a controller being "responsive to an update command to cause downloading of information" in the manner claimed (Compl. ¶76), or is there a technical mismatch between the product's background function and the claim's specific command-and-control structure?

V. Key Claim Terms for Construction

  • The Term: "reading sensor"
  • Context and Importance: This term's construction is central to the infringement analysis for all modern Kindle and Fire devices. DataQuill's infringement theory depends on this term being broad enough to encompass a touchscreen. Practitioners may focus on this term because its interpretation determines whether the patent's scope extends from the optical scanners explicitly described to the fundamentally different technology of modern touchscreens.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The patent abstract defines the invention as having "a reading sensor for sensing commands and/or data," which is facially broad language (’304 Patent, Abstract). The specification further discloses that "the processor 74 can be arranged to display a menu of user selectable items and to be responsive to a location at which the screen is touched for input of a user selection of a menu item," explicitly linking a touch-sensitive screen to the device's input function (’304 Patent, col. 13:10-21; Compl. ¶33).
    • Evidence for a Narrower Interpretation: The primary embodiments described in the patent depict the "reading sensor" as an optical scanner, such as a "laser diode" in a "reading head 14," for reading bar codes (’304 Patent, FIG. 1A; col. 6:40-44). A party could argue that the patent's consistent use of the word "reading" in the context of external, optically-readable codes (bar codes, dot codes) limits the term's scope to devices that interpret such codes, as opposed to devices that merely detect the location of a user's touch.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges induced infringement under 35 U.S.C. § 271(b), asserting that Amazon knowingly encouraged and intended for its customers and third-party retailers to directly infringe. The alleged acts of inducement include providing user guides, support materials, and advertising that instruct on the use of infringing features like downloading content and interacting with the touchscreen (Compl. ¶38, ¶95-96).
  • Willful Infringement: The complaint contains extensive allegations to support willfulness. It asserts that Amazon had pre-suit knowledge of the ’304 Patent and its alleged infringement based on a series of four detailed "violation notice" letters sent between December 2009 and May 2011 (Compl. ¶40-57). It further alleges knowledge based on Amazon's awareness of DataQuill's extensive litigation and licensing history involving the same patent against other major technology companies (Compl. ¶14, ¶21, ¶102).

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

  • A core issue will be one of definitional scope: can the term "reading sensor", which is rooted in the patent's disclosure of optical scanning technology, be construed to cover the capacitive touchscreens of modern Kindle and Fire devices? The outcome of this claim construction will likely determine the viability of the infringement claims against the majority of accused products.
  • A key evidentiary question will be one of functional mapping: assuming a favorable claim construction, does the evidence show that the accused products' general operations—such as syncing data or browsing a digital store—perform the specific, structured, and command-driven functions recited in the asserted claims, or is there a fundamental mismatch in technical operation?
  • A third central question will concern willfulness and damages: given the extensive history of pre-suit notice and prior litigation alleged in the complaint, if infringement is found, the focus will shift to whether Amazon's conduct rises to the level of willful infringement, which could expose it to enhanced damages under 35 U.S.C. § 284.