DCT

1:23-cv-01209

Ignite Enterprises Software Solutions LLC v. Ngdata US Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:23-cv-01209, D. Del., 02/06/2024
  • Venue Allegations: Plaintiff alleges venue is proper in the District of Delaware because Defendant NGData, US Inc. is a Delaware corporation and resident of the district, and Defendant NGData N.V. is a foreign corporation not residing in the United States.
  • Core Dispute: Plaintiff alleges that Defendant’s Lily Enterprise Platform, a customer data and analytics software solution, infringes four patents related to analyzing website user behavior and automatically optimizing the website structure to improve the customer journey.
  • Technical Context: The technology at issue operates in the field of customer data platforms (CDPs) and digital marketing, where businesses analyze user interactions with websites to personalize experiences and increase engagement.
  • Key Procedural History: Plaintiff Ignite acquired the patents-in-suit and associated business from BryterCX in January 2022. The complaint alleges that Defendant NGData had previously entered into a nondisclosure agreement with BryterCX to conduct due diligence as a potential purchaser, which may be used to suggest pre-suit knowledge of the patented technology.

Case Timeline

Date Event
2000-05-24 Earliest Priority Date for ’726 and ’441 Patents
2001-07-06 Earliest Priority Date for ’134 Patent
2004-06-02 Earliest Priority Date for ’340 Patent
2010-01-05 U.S. Patent No. 7,644,134 Issues
2010-03-02 U.S. Patent No. 7,673,340 Issues
2014-07-01 U.S. Patent No. 8,769,441 Issues
2019-12-03 U.S. Patent No. 10,496,726 Issues
2022-01-26 Ignite acquires the Patents-in-Suit from BryterCX
2024-02-06 Complaint Filing Date

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

U.S. Patent No. 10,496,726 - “System and Method for Modifying Links Within a Web Site”

  • Issued: December 3, 2019

The Invention Explained

  • Problem Addressed: The patent’s background section describes that websites are often not constructed in a way that is efficient or intuitive for visitors, leading to user frustration and abandonment (Compl. ¶53; ’726 Patent, col. 1:36-52). There existed an unmet need for a method to accurately diagnose a website’s structural problems and efficiently implement solutions to repair or modify it (Compl. ¶53; ’726 Patent, col. 1:54-59).
  • The Patented Solution: The invention provides a method for automatically managing and improving a website by analyzing user behavior (’726 Patent, Abstract). The system receives the existing structure of a website (represented as nodes and edges) and historical user session data (’726 Patent, Abstract). It then determines if a "statistical correlation" exists between users navigating to two specific nodes that are not directly linked. If this correlation exceeds a set threshold, the system automatically determines a new website structure that includes a new "edge," or direct link, between those two nodes and restructures the website accordingly (’726 Patent, Abstract; col. 2:18-31).
  • Technical Importance: The invention claims to automate the optimization of website navigation, a task that previously required manual analysis and implementation by web designers (Compl. ¶53).

Key Claims at a Glance

  • The complaint asserts at least independent Claim 1 (Compl. ¶116).
  • Essential elements of Claim 1 include:
    • receiving, by a computer, an indication of a first structure associated with the web site, the first structure comprising a first plurality of nodes... and a first plurality of edges;
    • receiving, by the computer, historical session data representing previous user activity on the web site, the historical session data including user navigation from among three or more nodes;
    • determining, by the computer, based on the historical session data, a statistical correlation associated with user navigation to a first node and to a second node; and
    • responsive to determining the statistical correlation exceeds a predetermined threshold, automatically (i) determining... a second structure... including a new first edge between the first node and the second node and (ii) restructuring the web site according to the second structure.
  • The complaint states that Plaintiff intends to assert additional claims beyond claim 1 (Compl. ¶163).

U.S. Patent No. 8,769,441 - “System And Method For Modifying Links Within A Web Site”

  • Issued: July 1, 2014

The Invention Explained

  • Problem Addressed: Similar to the ’726 Patent, the ’441 Patent addresses the problem of inefficient website construction that can cause a consumer to abandon a visit, and the corresponding need for a method to diagnose and repair these issues efficiently (Compl. ¶57; ’441 Patent, col. 1:34-55).
  • The Patented Solution: The invention describes a method for managing a single website, which is represented as a "plurality of states" (e.g., web pages) connected by "transitional links" (’441 Patent, col. 14:43-49). The system analyzes user session data to determine if a statistical correlation exists for navigation between a first state and a second state that lack a direct transitional link (’441 Patent, col. 15:1-9). If the correlation is above a threshold, the system automatically generates a new website structure that includes a new transitional link directly between the first and second states (’441 Patent, col. 15:10-18).
  • Technical Importance: This technology provides an automated solution for improving website usability based on observed, aggregate user navigation patterns (Compl. ¶57).

Key Claims at a Glance

  • The complaint asserts at least independent Claim 1 (Compl. ¶167).
  • Essential elements of Claim 1 include:
    • accessing a representation of a first structure of the single web site... associated with a plurality of states... the first plurality of transitional links absent a transitional link directly from the first state to the second state;
    • based on session data... determining that a statistical correlation... exceeds a predetermined threshold; and
    • responsive to determining that the statistical correlation exceeds the predetermined threshold, automatically generating, with a computer processor, a second structure for the single web site... including a new transitional link directly from the first state to the second state of the single web site.
  • The complaint states that Plaintiff intends to assert additional claims beyond claim 1 (Compl. ¶204).

U.S. Patent No. 7,644,134 - “System and Method for Analyzing System Visitor Activities”

  • Issued: January 5, 2010
  • Technology Synopsis: The patent describes a method for analyzing user interaction by comparing observed user behavior against a predefined "task" (’134 Patent, col. 1:12-16). It defines a first task as a predefined sequence of user accesses, compares it to a user's actual session data using a pattern-matching algorithm, determines the differences, and generates a recommendation for altering the system to better assist future users in performing the task (’134 Patent, col. 16:1-14).
  • Asserted Claims: At least Claim 1 (Compl. ¶208).
  • Accused Features: The complaint alleges the Lily System infringes by defining tasks as "goals" and "subgoals," accessing user session data, using a "Calculation Engine" to compare actual user behavior to predefined goals, and using a "Recommendation Engine" to generate recommendations for optimizing the user experience (Compl. ¶¶215, 218, 228).

U.S. Patent No. 7,673,340 - “System and Method for Analyzing System User Behavior”

  • Issued: March 2, 2010
  • Technology Synopsis: The patent addresses the need for an effective way to evaluate and improve the design of interactive user systems (’340 Patent, col. 1:39-47). The invention provides a method that includes representing the interactive system as one or more state machines, creating a snapshot of the system's structure, processing log data of user activity, and creating a report that includes recommendations to improve the system based on that activity (’340 Patent, col. 18:4-19).
  • Asserted Claims: At least Claim 2 (Compl. ¶251).
  • Accused Features: The complaint alleges the Lily System infringes by analyzing the structure of an interactive system (e.g., a website), creating state machine snapshots, processing log data representing user activity, and creating reports with recommendations for website personalization (Compl. ¶¶259, 262, 265).

III. The Accused Instrumentality

Product Identification

  • The accused instrumentality is Defendant’s Lily Enterprise Platform, which is also marketed as its Intelligent Engagement Platform or NGData Customer Data Platform (“CDP”) (the “Lily System”) (Compl. ¶7).

Functionality and Market Context

  • The Lily System is alleged to be an automated software solution that analyzes large data sets to build individual "Customer DNA" profiles in real-time, enabling organizations to personalize customer experiences (Compl. ¶50). The complaint alleges the system gathers customer data from various sources (e.g., web, CRM) to provide a "360-degree view" of customers, allowing marketers to make "next-best-action and next-best-offer recommendations" (Compl. ¶131). Its architecture is described as having a "Listen Layer" for receiving user characteristics and navigation data, a "Learn Layer" with a "Calculation Engine" that creates scoring metrics like an "Opportunity Index," and an "Execute" engine to drive personalization and orchestrate customer journeys (Compl. ¶¶124-125, 133, 143). A screenshot from a marketing presentation shows the Lily System's core components as "Listen," "Learn," and "Execute," which allegedly map to the claimed technology (Compl. ¶120, p. 28).

IV. Analysis of Infringement Allegations

10,496,726 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
receiving, by a computer, an indication of a first structure associated with the web site, the first structure comprising a first plurality of nodes, each node representing a web resource of the web site... and a first plurality of edges, each edge representing a link... The Lily System allegedly receives a structure of a customer's website. A block-flow diagram in the complaint shows the Lily System accessing a "Web Site Cluster," which represents a web site with a plurality of states (nodes) (Compl. ¶122, p. 30). ¶¶121-122 col. 2:5-9
receiving, by the computer, historical session data representing previous user activity on the web site, the historical session data including user navigation from among three or more nodes of the first plurality of nodes of the web site The Lily System's "Listen Layer" allegedly receives user characteristics and navigation data from clickstreams in real time (Compl. ¶125). Marketing materials cited in the complaint state the system receives "customer info," "context info," and "session data" (Compl. ¶126, p. 31). ¶¶123-126 col. 2:10-17
determining, by the computer, based on the historical session data, a statistical correlation associated with user navigation to a first node and to a second node of the first plurality of nodes The "Learn Layer" of the Lily System allegedly has a "Calculation Engine" that transforms data into a scoring metric or "Opportunity Index" for each customer (Compl. ¶133). A presentation slide shows the system providing a predictive score to facilitate the "great personalization of [a] website" (Compl. ¶134, p. 35). ¶¶132-134 col. 2:18-22
responsive to determining the statistical correlation exceeds a predetermined threshold, automatically (i) determining... a second structure... including a new first edge between the first node and the second node and (ii) restructuring the web site according to the second structure. The complaint alleges the Lily System "automatically" generates recommendations and "restructures" the website to orchestrate the next user experience (Compl. ¶137). An industry review cited in the complaint states the platform "excels at decisioning and optimization [i.e., restructuring]" (Compl. ¶138, p. 36). ¶¶136-138 col. 2:23-31

Identified Points of Contention

  • Scope Questions: A central question may be whether the Lily System’s alleged function of "orchestrat[ing] personalized customer journeys" (Compl. ¶141) and providing "next-best-offer recommendations" (Compl. ¶131) constitutes "restructuring the web site" by determining a "new first edge" as required by the claim. The defense may argue that personalizing content or offers on a static webpage is technically distinct from altering the underlying navigational structure (the "edges" between "nodes") of the website itself.
  • Technical Questions: The complaint relies on high-level marketing descriptions of the Lily System's "Listen," "Learn," and "Execute" components. A key factual question will be what technical operations these components actually perform. For example, what evidence demonstrates that the "Execute" engine automatically implements a structural change to a client's website, rather than providing a recommendation for a human web developer to implement?

8,769,441 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
accessing a representation of a first structure of the single web site, the single web site associated with a plurality of states representing web pages... the first plurality of transitional links absent a transitional link directly from the first state to the second state The complaint alleges the Lily System accesses a representation of a customer's web site structure. This is supported by a diagram showing the system architecture interacting with a customer's "Website And Online Apps," which represent the plurality of states (Compl. ¶173, p. 47). ¶¶172-174 col. 14:43-52
based on session data representing actual user navigation from among three or more of the plurality of states... determining that a statistical correlation associated with user navigation to the first state and to the second state exceeds a predetermined threshold The complaint alleges the Lily System's "Listen Layer" receives user navigation data in real-time and its "Learn Layer" and "Calculation Engine" use this data to create "Customer DNA" and provide predictive scores and analytics (Compl. ¶¶176-177, 182-183). A slide shows the system gathering "session data" from a user's interaction (Compl. ¶180, p. 50). ¶¶175-184 col. 15:1-9
responsive to determining that the statistical correlation exceeds the predetermined threshold, automatically generating, with a computer processor, a second structure for the single web site... including a new transitional link directly from the first state to the second state of the single web site. The complaint alleges the Lily System uses its analysis to "orchestrate personalized customer journeys" and employs its "Execute" engine to generate a new structure for a customer website (Compl. ¶¶187, 189). It is alleged to "decide[s] the next best action (experience)" automatically (Compl. ¶139, p. 36). ¶¶186-189 col. 15:10-18

Identified Points of Contention

  • Scope Questions: Similar to the ’726 Patent, a key dispute will likely concern the meaning of "generating... a second structure for the single web site" that includes a "new transitional link." The question is whether providing personalized content, as shown in a cited marketing slide offering a specific "Certificate of deposit" to a user (Compl. ¶142, p. 38), meets the claim limitation of creating a new, structural "transitional link" between web pages.
  • Technical Questions: The complaint asserts that the Lily System "employs AI to identify the 'next best' experience" (Compl. ¶187). The technical question for the court will be whether this AI-driven personalization is functionally the same as the claimed method of automatically generating a new site structure based on a determined statistical correlation in navigation paths.

V. Key Claim Terms for Construction

  • The Term: "restructuring the web site according to the second structure" (’726 Patent, Claim 1) and "generating... a second structure for the single web site" (’441 Patent, Claim 1).
  • Context and Importance: These terms are central to the infringement analysis. The dispute may turn on whether the accused Lily System's function of providing personalized content and orchestrating user journeys constitutes the claimed act of altering the underlying navigational structure of a website. Practitioners may focus on this term because the complaint's evidence primarily shows content personalization, whereas the claim language specifies creating a "new first edge" or "new transitional link."
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The patents state their overall goal is to "improve the operation of the Internet web site" and make it "more efficient and easier to use for visitors" (’726 Patent, col. 1:25, 1:45-47). An argument could be made that any automated, data-driven change that achieves this goal, including personalization, falls within the scope of the invention's purpose.
    • Evidence for a Narrower Interpretation: The claims explicitly require that the "second structure" includes a "new first edge between the first node and the second node" (’726 Patent) or a "new transitional link directly from the first state to the second state" (’441 Patent). The abstract of the ’726 Patent clarifies that the second structure "adds or removes a transitional link," suggesting a modification to the site's fundamental architecture, not merely the content displayed on a page.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges that NGData induces infringement by providing customers with materials like "pre-built playbooks" and white papers that instruct and encourage them to use the Lily System in a manner that allegedly practices the patented methods (Compl. ¶¶155, 196). It also alleges contributory infringement, stating the Lily System is a material part of the invention and not a staple article of commerce (Compl. ¶¶158, 199).
  • Willful Infringement: The complaint alleges willful infringement based on pre-suit knowledge. It specifically alleges that NGData knew of the patents prior to the suit, "at least as of the date NGData entered into a nondisclosure agreement with BryterCX," the original patent owner (Compl. ¶¶151, 192).

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

  • A core issue will be one of definitional scope: does the claim term "restructuring the web site," which the patent specification links to adding or removing navigational links, read on the accused product's function of "orchestrat[ing] personalized customer journeys" and delivering "next-best-offer recommendations"? The resolution of this claim construction issue may be dispositive for infringement.
  • A key evidentiary question will be one of technical operation: what specific, concrete actions does the accused Lily System's "Execute" engine perform automatically? Does it modify the underlying HTML or server-side code of a customer's website to create new hyperlinks, or does it operate as a content management system that serves dynamic, personalized information within a pre-existing site structure?
  • A third pivotal question relates to willfulness: what information was shared under the alleged nondisclosure agreement between NGData and the prior patent owner, BryterCX? Evidence of pre-suit knowledge of the specific patents-in-suit could significantly influence potential damages if infringement is found.