DCT

1:23-cv-01373

AlmondNet Inc v. LinkedIn Corp

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:23-cv-01373, D. Del., 12/01/2023
  • Venue Allegations: Venue is based on Defendant's incorporation in the state of Delaware.
  • Core Dispute: Plaintiff alleges that Defendant’s LinkedIn Ads and LinkedIn Audience Network services infringe nine U.S. patents related to network-based advertising systems and methods.
  • Technical Context: The technology at issue involves methods for collecting and using descriptive user profile data to enable targeted advertising across digital networks, a foundational element of the modern online advertising industry.
  • Key Procedural History: The complaint alleges that Defendant had pre-suit knowledge of several asserted patents due to prior litigation filed by Plaintiff against Defendant’s parent company, Microsoft Corp. In that case, Plaintiff allegedly identified "LinkedIn Ads" in infringement contentions, which forms the basis for the present complaint's allegations of willful infringement.

Case Timeline

Date Event
2000-06-14 Earliest Priority Date for ’582, ’307, ’249 Patents
2000-11-28 Earliest Priority Date for ’639, ’586 Patents
2006-06-16 Earliest Priority Date for ’139, ’146 Patents
2007-04-17 Earliest Priority Date for ’398, ’878 Patents
2010-10-26 U.S. Patent No. 7,822,639 Issued
2011-07-12 U.S. Patent No. 7,979,307 Issued
2012-08-14 U.S. Patent No. 8,244,582 Issued
2012-08-14 U.S. Patent No. 8,244,586 Issued
2014-03-11 U.S. Patent No. 8,671,139 Issued
2014-03-18 U.S. Patent No. 8,677,398 Issued
2014-07-08 U.S. Patent No. 8,775,249 Issued
2015-02-17 U.S. Patent No. 8,959,146 Issued
2020-07-14 U.S. Patent No. 10,715,878 Issued
2021-08-27 Plaintiff files suit against Defendant's parent, Microsoft Corp. (W.D. Tex.)
2022-02-18 Plaintiff serves Infringement Contentions against Microsoft listing "LinkedIn Ads"
2022-04-27 Plaintiff serves venue discovery requests in Microsoft case
2022-05-03 Microsoft counsel allegedly corresponds with Plaintiff regarding LinkedIn
2023-12-01 Complaint Filed

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

U.S. Patent No. 8,244,582 - "method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements"

  • Patent Identification: U.S. Patent No. 8,244,582, "method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued on August 14, 2012 (Compl. ¶8).
  • The Invention Explained:
    • Problem Addressed: The patent addresses the challenge of creating a commercial market for discrete pieces of user information ("attributes") for applications like targeted advertising, which was previously hindered by the difficulty of collecting, valuing, and exchanging such granular data (U.S. Patent No. 7,979,307, col. 1:55-67).
    • The Patented Solution: The invention describes an automated "mercantile method" where a system receives partial user profiles from various sources (e.g., websites a user visits), searches a central databank for complementary information, and facilitates a "contracting" process to exchange these profile attributes. This creates a structured marketplace for user data, enabling advertisers to target users based on a richer, aggregated profile without necessarily handling personally identifiable information directly ('307 Patent, Abstract; '307 Patent, col. 6:4-30).
    • Technical Importance: This approach provided a framework for creating a scalable, automated system for brokering user data attributes between different online entities, a foundational concept for the programmatic advertising ecosystem ('307 Patent, col. 1:24-25).
  • Key Claims at a Glance:
    • The complaint incorporates by reference a claim chart (Exhibit 2) but does not specify which claims are asserted (Compl. ¶11). Independent claim 1 is representative.
    • Essential Elements of Independent Claim 1:
      • An automated method of collecting profiles of Internet-using entities.
      • Electronically receiving at a programmed computer system, from a third-party server, a partial profile of an entity using a user computer.
      • The partial profile contains at least one profile attribute.
      • Automatically storing the received partial profile by adding it to an electronically stored profile believed to be related to the same entity.
      • Receiving the partial profile as a result of an automatic electronic URL redirection from a portion of a website accessed by the user computer.
      • Automatically generating and storing an electronic record of which third party contributed which profile attributes.
      • The stored profile, including the added partial profile, comprises data used in targeting third-party advertisements to the user computer.
    • The complaint does not explicitly reserve the right to assert dependent claims.

U.S. Patent No. 7,979,307 - "method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements"

  • Patent Identification: U.S. Patent No. 7,979,307, "method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued on July 12, 2011 (Compl. ¶15).
  • The Invention Explained:
    • Problem Addressed: As with the related ’582 Patent, this invention addresses the lack of a structured method for the economic exchange of individual user data points ("attributes"), which are valuable for targeted advertising but difficult to trade in a scalable way ('307 Patent, col. 1:55-67).
    • The Patented Solution: The patent discloses a "descriptive-profile mercantile method" where a system acts as a broker. It receives a "first partial profile" from a user (or a user's agent, like a website), searches a databank for additional profile information, and executes a "contracting" step to either acquire new information for the databank or provide information from the databank to the user. This structured exchange facilitates the aggregation and use of profile data for purposes like ad targeting ('307 Patent, Abstract; '307 Patent, col. 6:4-30).
    • Technical Importance: The invention conceptualizes an automated brokerage for user data attributes, enabling different online entities to pool and leverage user information for advertising purposes in a structured, transactional manner.
  • Key Claims at a Glance:
    • The complaint incorporates by reference a claim chart (Exhibit 4) but does not specify which claims are asserted (Compl. ¶18). Independent claim 1 is representative.
    • Essential Elements of Independent Claim 1:
      • A descriptive-profile mercantile method for use at a juncture in a data-communications topology.
      • From a user, receiving a transaction having a first partial profile.
      • Using the first partial profile to search a databank having a plurality of second partial profiles.
      • The searching always yields at least one proximate second partial profile.
      • Between the user and the databank, "contracting" for either (I) the databank to gain rights to a portion of the first partial profile and incorporate it, or (II) the user to gain rights to a portion of the proximate second partial profile.
    • The complaint does not explicitly reserve the right to assert dependent claims.

Multi-Patent Capsules

  • U.S. Patent No. 8,775,249: "method, computer system, and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued July 8, 2014 (Compl. ¶22).

    • Technology Synopsis: This patent is part of the same family as the '582 and '307 patents and relates to the same core technology: an automated method for collecting and exchanging user profile attributes between different entities via a central databank to facilitate targeted advertising.
    • Asserted Claims: The complaint does not specify, but independent claims 1 and 13 are included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶23).

  • U.S. Patent No. 7,822,639: "added-revenue off-site targeted internet advertising," issued October 26, 2010 (Compl. ¶29).

    • Technology Synopsis: This patent describes a "super-saturation method" for creating new advertising revenue. It involves a three-party system where a first website ("first broadcaster"), having sold all its ad space, "tags" its visitors; a second website ("second broadcaster") recognizes these tagged visitors and displays "off-site" ads to them, with an "agency" facilitating the transaction and revenue sharing.
    • Asserted Claims: The complaint does not specify, but independent claims 1 and 24 are included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶30).

  • U.S. Patent No. 8,244,586: "computerized systems for added-revenue off-site targeted internet advertising," issued August 14, 2012 (Compl. ¶36).

    • Technology Synopsis: This patent is in the same family as the '639 patent and relates to computerized systems for implementing the "super-saturation" advertising method, where visitors to a first, "saturated" website are shown targeted ads on a second, different website.
    • Asserted Claims: The complaint does not specify, but independent claim 1 is included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶37).

  • U.S. Patent No. 8,671,139: "media properties selection method and system based on expected profit from profile-based ad delivery," issued March 11, 2014 (Compl. ¶43).

    • Technology Synopsis: This patent discloses a method for automatically selecting which media properties (e.g., websites) should be used to display an advertisement. The system calculates the "expected profit" from showing an ad to a user with a specific profile on a given media property and arranges for the user to be "tagged" for targeting only on properties where the profit calculation is positive.
    • Asserted Claims: The complaint does not specify, but independent claims 1 and 28 are included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶44).

  • U.S. Patent No. 8,959,146: "media properties selection method and system based on expected profit from profile-based ad delivery," issued February 17, 2015 (Compl. ¶53).

    • Technology Synopsis: As a continuation of the '139 patent family, this patent further describes systems and methods for selecting advertising placements by calculating the expected profit of showing a profile-based ad on various media properties and then tagging the user for targeting on the profitable properties.
    • Asserted Claims: The complaint does not specify, but independent claim 1 is included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶54).

  • U.S. Patent No. 8,677,398: "systems and methods for taking action with respect to one network-connected device based on activity on another device connected to the same network," issued March 18, 2014 (Compl. ¶63).

    • Technology Synopsis: This patent describes a method for cross-device targeting. It involves associating multiple devices (e.g., a computer and a television set-top box) that are connected to the same local network, often by identifying a common IP address, and then using online activity from one device (the computer) to take an action, such as displaying a targeted ad, on the other device (the set-top box).
    • Asserted Claims: The complaint does not specify, but independent claims 1 and 13 are included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶64).

  • U.S. Patent No. 10,715,878: "targeted television advertisements based on online behavior," issued July 14, 2020 (Compl. ¶73).

    • Technology Synopsis: This patent, from the same family as the '398 patent, focuses on delivering targeted television ads based on a user's online behavior. The system electronically associates the IP address of an online access device with the IP address of a television set-top box, allowing user profile information from online activity to be used to select and direct a television advertisement to that user's TV.
    • Asserted Claims: The complaint does not specify, but independent claims 1 and 13 are included in the patent.
    • Accused Features: LinkedIn Ads and/or the LinkedIn Audience Network (Compl. ¶74).

III. The Accused Instrumentality

Product Identification

  • The accused instrumentalities are LinkedIn Ads and the LinkedIn Audience Network (Compl. ¶9).

Functionality and Market Context

  • The complaint alleges these are products and/or services used for internet/network based advertising (Compl. ¶1). It alleges that these instrumentalities accumulate and use descriptive user profile data to target third-party advertisements (Compl. ¶8, ¶15). The complaint does not provide specific technical details about how the LinkedIn Ads or LinkedIn Audience Network platforms operate, how they collect user data, what data they collect, or their specific ad-serving architecture. No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

The complaint incorporates claim charts by reference as exhibits for each asserted patent (e.g., Compl. ¶11, ¶18), but these exhibits were not attached to the publicly filed complaint. The complaint's narrative infringement theory is that the Accused Instrumentalities satisfy all claim limitations of the asserted patents by performing network-based targeted advertising using descriptive user profile data (Compl. ¶11, ¶18). Without the claim charts, a detailed element-by-element analysis is not possible based on the provided document.

  • Identified Points of Contention:
    • Scope Questions: The '582 and '307 patent family claims a "descriptive-profile mercantile method" involving "contracting" between a "user" and a "databank." A primary dispute may arise over whether LinkedIn's integrated advertising platform, which collects and uses its own members' data, performs the multi-party "mercantile" or "brokerage" transaction recited in the claims. A question for the court will be whether LinkedIn's internal data processing qualifies as the claimed "contracting" to exchange profile attributes.
    • Technical Questions: The '398 and '878 patent family claims methods of associating devices on the same network to deliver television ads based on online behavior. A key technical question will be what evidence demonstrates that LinkedIn's advertising network, which primarily operates in a professional networking context on computers and mobile devices, practices the claimed steps of associating online devices with television set-top boxes and delivering television advertisements. The complaint does not allege facts to support this specific functionality.

V. Key Claim Terms for Construction

  • The Term: "descriptive-profile mercantile method" (from '307 Patent, Claim 1 preamble)

    • Context and Importance: This term appears in the preamble of an independent claim and may be construed as a limitation defining the overall scope of the invention. Its construction is critical because it may determine whether the claims are limited to a specific multi-party commercial brokerage model for data or can read more broadly on any system that uses profile data for a commercial purpose like advertising.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: The specification describes the invention in general terms as a "mercantile method directed to brokerage of attributes of information" ('307 Patent, col. 1:24-25), which a party could argue covers any commercial use of profile data.
      • Evidence for a Narrower Interpretation: The abstract and detailed description repeatedly reference a "brokerage representation model," "micro-payment royalty," and "economic commerce in information attributes," suggesting a specific transactional structure where discrete data attributes are bought and sold, potentially narrowing the claim scope ('307 Patent, Abstract; col. 4:8-19).

  • The Term: "contracting" (from '307 Patent, Claim 1)

    • Context and Importance: This is a central active step in the claimed method. The infringement analysis will depend on whether "contracting" requires a formal agreement or can be satisfied by an automated, implicit data exchange protocol within a single, integrated system. Practitioners may focus on this term because it appears to require an interaction between distinct entities (a "user" and a "databank") that may not map directly onto LinkedIn's internal operations.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: A party might argue that in the context of an automated system, any API call or data transfer protocol that results in the exchange of data according to predefined rules constitutes a form of "contracting."
      • Evidence for a Narrower Interpretation: The specification links the term to economic exchanges, such as a "purchase of an attribute for cash or credit" or an "acceptance of an attribute according to a brokerage fee schedule" ('307 Patent, col. 3:1-7). This language may support a narrower construction requiring a tangible or quasi-financial transaction.

VI. Other Allegations

  • Indirect Infringement: For the '139, '146, '398, and '878 patents, the complaint alleges Defendant induces infringement by actively encouraging and instructing customers and end users, through materials like user manuals, to use the Accused Instrumentalities in an infringing manner (Compl. ¶47, ¶57, ¶67, ¶77). It further alleges contributory infringement, stating the Accused Instrumentalities are especially made for infringement and are not staple articles of commerce suitable for substantial noninfringing use (Compl. ¶48, ¶58, ¶68, ¶78).
  • Willful Infringement: Willfulness is alleged for the '139, '146, '398, and '878 patents (Compl. ¶46, ¶56, ¶66, ¶76). The basis for this allegation is Defendant's purported knowledge of the patents and their infringement long before the suit was filed. This knowledge is alleged to stem from prior litigation against LinkedIn's parent company, Microsoft, in which Plaintiff served infringement contentions that specifically identified "LinkedIn Ads" as an accused product (Compl. ¶46).

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

  • A core issue will be one of definitional scope: can patent terms rooted in a multi-party "mercantile" or "brokerage" model for data, such as "contracting," be construed to cover the internal data collection, analysis, and ad-serving operations of an integrated social media platform like LinkedIn?
  • A second key issue will be one of evidentiary proof: given the complaint's high-level allegations and lack of specific technical details or claim charts, what evidence can be adduced to show that the accused LinkedIn platforms actually perform the specific, multi-step methods claimed in the nine asserted patents, particularly those related to cross-device television targeting and profit-based media selection?
  • The willfulness claims will present a question of corporate knowledge: can knowledge be imputed to a subsidiary (LinkedIn) for the purpose of establishing willful infringement based on infringement contentions served on its parent company (Microsoft) in a separate litigation, and did those contentions provide notice with the specificity required by law?