DCT

1:26-cv-00052

Inmar Brand Solutions Inc v. Birdzi Inc

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Key Events
Complaint

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:26-cv-00052, D. Del., 01/16/2026
  • Venue Allegations: Venue is alleged in the District of Delaware based on Defendant Birdzi Inc.'s incorporation in Delaware and its commission of alleged acts of infringement within the district.
  • Core Dispute: Plaintiff alleges that Defendant’s digital coupon, customer engagement, and retail analytics platforms infringe three U.S. patents related to intelligent, network-based systems for coupon validation, redemption, and financial settlement.
  • Technical Context: The technology at issue concerns the transition from manual, paper-based coupon clearing to automated, real-time electronic systems that connect a retailer's point-of-sale terminal to a remote central server for processing and data analytics.
  • Key Procedural History: The complaint alleges that Plaintiff provided Defendant with pre-suit notice of infringement via a letter dated May 9, 2025, and that subsequent efforts to negotiate a resolution were unsuccessful. This notice may form the basis for allegations of willful infringement.

Case Timeline

Date Event
2006-05-23 Earliest Priority Date for ’729, ’133, and ’855 Patents
2015-06-30 U.S. Patent No. 9,070,133 Issues
2015-08-04 U.S. Patent No. 9,098,855 Issues
2020-11-24 U.S. Patent No. 10,846,729 Issues
2025-05-09 Plaintiff sends pre-suit notice letter to Defendant
2025-06-20 Defendant confirms receipt of notice letter
2026-01-16 Complaint Filed

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

U.S. Patent No. 9,070,133 - *Intelligent Coupon Network*

  • Patent Identification: U.S. Patent No. 9,070,133, titled “Intelligent Coupon Network,” issued on June 30, 2015.

The Invention Explained

  • Problem Addressed: The patent's background describes prior art coupon processing as a labor-intensive, manual process for both consumers and retailers, resulting in significant delays for manufacturers to receive market intelligence from redemption data and potential financial losses from printing mistakes ('133 Patent, col. 1:11-34).
  • The Patented Solution: The invention proposes an automated system where a consumer uses a "coupon card" at a point-of-sale (POS) terminal. The card's identifier is sent over a network to a central server that holds a database linking the identifier to available coupons. This allows for real-time validation and enables the speedy dissemination of redemption data to manufacturers ('133 Patent, Abstract; col. 3:4-9). The system architecture, depicted in Figure 1, illustrates the communication links between a card reader, POS terminal, and a remote "Intelligent Coupon Network Server" (Compl., p. 10, FIG.1).
  • Technical Importance: The described system aimed to replace the slow, physical coupon clearinghouse model with an electronic network, delivering both faster retailer reimbursement and near real-time analytics to manufacturers (Compl. ¶26).

Key Claims at a Glance

  • The complaint asserts independent claim 1 (Compl. ¶44).
  • The essential elements of independent claim 1 include:
    • A non-transitory computer-readable medium with executable instructions for processing coupons.
    • Receiving, at a remote coupon processing server, a unique account identifier scanned at a first POS terminal in a retail store.
    • In response, determining if a valid coupon is associated with the identifier in a database of accounts.
    • Transmitting an indication of the valid coupon from the server to the POS terminal.
    • Receiving an indication of a redeemed coupon from the POS terminal and updating the database.
    • Transmitting an indication of the redemption to a manufacturer associated with the coupon.

U.S. Patent No. 9,098,855 - *Intelligent Clearing Network*

  • Patent Identification: U.S. Patent No. 9,098,855, titled “Intelligent Clearing Network,” issued on August 4, 2015.

The Invention Explained

  • Problem Addressed: The patent identifies the same industry problems as the ’133 Patent, namely that manual coupon clearing was slow, costly, and delayed the flow of critical market data to manufacturers and advertisers (’855 Patent, col. 1:11-34).
  • The Patented Solution: This invention describes a system where Universal Product Codes (UPCs) of items in a consumer's transaction are sent from a POS terminal to a remote intelligent clearing network server. The server compares the basket of UPCs against a database of active promotions to automatically validate or reject a coupon, then sends a response message back to the POS terminal (’855 Patent, col. 1:50-2:3). This "trigger and target" UPC validation allows for promotions without a consumer presenting a specific coupon (Compl. ¶37). The process is illustrated in Figure 10 of the complaint (Compl., p. 14, FIG. 10).
  • Technical Importance: This approach enables automatic, basket-based promotions, where discounts are triggered by the presence of specific products in a transaction rather than by a separate coupon scan (Compl. ¶37).

Key Claims at a Glance

  • The complaint asserts independent claim 53 (Compl. ¶71).
  • The essential elements of independent claim 53 include:
    • An Intelligent Clearing Network (ICN) server with a processor and database.
    • The processor is configured to receive data elements, including product code information and a "promotion request message," from a POS terminal.
    • The "promotion request message is scanned at the POS terminal" at a retail store, while the ICN server is at a remote location.
    • The server validates the message based on the product code information.
    • In response to validation, the server sends a "promotion request response message" indicating whether the request was validated.

U.S. Patent No. 10,846,729 - *Intelligent Clearing Network*

  • Patent Identification: U.S. Patent No. 10,846,729, titled “Intelligent Clearing Network,” issued November 24, 2020 (Compl. ¶17).

Technology Synopsis

The patent addresses the inefficiencies and fraud risks of manual paper coupon processing (Compl. ¶20). It discloses an improved system where a POS terminal scans a coupon with a GS1 barcode and transmits data elements from that barcode to a remote intelligent clearing network server for real-time validation, redemption, and financial settlement, eliminating the need for manual counting (Compl. ¶¶21-22).

Asserted Claims

The complaint asserts independent claim 10 (Compl. ¶84).

Accused Features

The complaint alleges that Birdzi's platform functions as the claimed ICN server, receiving UPC information from retail terminals (Compl. ¶86), validating coupon information (Compl. ¶94), transmitting coupon codes to the POS (Compl. ¶95), receiving redemption data (Compl. ¶96), and storing that data in a redeemed coupon database (Compl. ¶97).

III. The Accused Instrumentality

Product Identification

The accused instrumentalities are Birdzi’s digital promotion and retail analytics platforms, including its Customer Intelligence Platform, Digital Coupon Platform, VISPER 1.0/2.0, Shopper Analytics, POS integrations, and various retailer-branded mobile applications such as My County Market and My Hometown Rewards (collectively, the “Accused Products”) (Compl. ¶40).

Functionality and Market Context

  • The Accused Products provide an "omnichannel shopping experience" by delivering personalized coupon offers to consumers via mobile applications (Compl. ¶44). In the "My CountyMarket" app, a user "clips" digital coupons, which are then associated with their account (Compl. ¶47). At checkout, the user presents a barcode on their phone's home screen to be scanned at the POS, which redeems the clipped coupons (Compl. ¶¶50, 55). An app screenshot shows a user-specific barcode intended for scanning at checkout (Compl., p. 22).
  • The platform integrates with third-party POS systems (e.g., ECRS, NCR) to enable this functionality (Compl. ¶¶52-53). The complaint includes a grid of Birdzi's integration partners (Compl., p. 20). When a customer's loyalty ID is scanned, it triggers a "real time call" from the POS to Birdzi’s remote platform, which then facilitates the delivery of personalized offers into the transaction (Compl. ¶53). Birdzi's servers are alleged to be located remotely from the retail stores where the transactions occur (Compl. ¶58).
  • The complaint alleges these platforms are commercially important for connecting retailers, manufacturers, and shoppers and providing analytics on shopper behavior and promotion effectiveness (Compl. ¶¶8, 61).

IV. Analysis of Infringement Allegations

U.S. Patent No. 9,070,133 - Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
...receiving, at a coupon processing server, a unique account identifier from a first point of sale terminal via a network... Birdzi's remote server receives shopper information from a POS terminal after a user's unique identifier is scanned. ¶52 col. 11:60-66
...where the unique account identifier was scanned at the first point-of-sale terminal which is located at a retail store and where the coupon processing server is at a location that is remote from the retail store... A barcode on a user's phone, which serves as their loyalty ID, is scanned at a POS in a retail store. Birdzi's servers are operated by Birdzi and are not on-site at the retailer. ¶¶55, 58 col. 11:64-67
...in response to receiving the unique account identifier, determining whether at least one valid coupon is associated with the unique account identifier in a database of accounts... In response to receiving the loyalty ID, Birdzi's system determines whether the user has "clipped" any valid coupons that can be redeemed at the POS. ¶59 col. 12:1-4
...transmitting, from the coupon processing server, an indication of the at least one valid coupon to the first point of sale terminal via the network, wherein the indication includes the at least one valid coupon... After determining a coupon is valid, Birdzi transmits an indication of that validity to the POS terminal, allowing for the "seamless execution of a shopper's personalized discounts." ¶60 col. 12:5-12
...in response to receiving, at the coupon processing server from the first point of sale terminal, an indication of at least one redeemed coupon, updating the database of accounts. Birdzi's "Customer Data Platform" and "Offer Performance Analytics" track coupon redemption rates and shopper behavior, indicating that its database of accounts is updated upon redemption. ¶61 col. 12:12-15
...transmitting, from the coupon processing server to a manufacturer associated with the at least one redeemed coupon, an indication that the at least one redeemed coupon was redeemed against a purchased transaction... Birdzi's analytics platform, which includes "Coupon Performance Analytics," provides data to manufacturers on the performance of their campaigns. ¶¶62, 63 col. 12:15-22

Identified Points of Contention

  • Scope Questions: A central question may be whether a barcode displayed on a smartphone screen that represents a user's loyalty account constitutes a "unique account identifier...scanned" within the meaning of the patent. The defense may argue that the patent, with a 2006 priority date and discussion of physical "coupon cards" and "card readers," does not cover general-purpose mobile devices.
  • Technical Questions: The complaint alleges Birdzi transmits an "indication of the at least one valid coupon" to the POS. The precise data content of this transmission will be a key factual question. Does it contain the coupon data itself, as required by the claim, or merely a general instruction to apply a pre-loaded discount?

U.S. Patent No. 9,098,855 - Infringement Allegations

Claim Element (from Independent Claim 53) Alleged Infringing Functionality Complaint Citation Patent Citation
An intelligent clearing network (ICN) server...comprising... an ICN database... an interface... and a processor... Birdzi operates various platforms as part of its ICN, including a "Customer Intelligence Platform" and a "Digital Coupon Platform," which operate on a server with a database. ¶72 col. 32:56-60
...configured to receive data elements through a network from a point-of-sale [POS] terminal of a retailer for validation and redemption... Birdzi's API integration with POS providers like ECRS allows "shopper and basket information" to be relayed from the POS software to Birdzi's Customer Intelligence Platform for validation. ¶73 col. 32:61-64
...wherein the data elements including product code information of an item to be purchased at the POS terminal and a promotion request message, where the promotion request message is scanned at the POS terminal located at a retail store... The "shopper and basket information" sent to Birdzi's server includes product code information (UPCs) from items scanned at the POS terminal in a retail store. ¶¶73, 74 col. 32:64-33:1
...and where the ICN server is at a location that is remote from the retail store... Birdzi's servers and data centers are located in the United States and are not on-site at the retailer, as evidenced by its privacy policy and description of operations. ¶75 col. 32:66-33:1
...and to validate the promotion request message based at least in part on the product code information, and... to send a promotion request response message that indicates whether the promotion request message has been validated. Birdzi's server validates the coupon based on product code information. Its platform then sends a response that allows for the execution of discounts at the POS and provides analytics on campaign success. ¶76 col. 33:1-8

Identified Points of Contention

  • Scope Questions: The infringement theory may turn on the construction of "promotion request message is scanned at the POS terminal." The complaint alleges product UPCs are scanned and this basket information is then sent via an API. The question for the court will be whether this electronic transmission of data about scanned products meets the claim limitation that the message itself is scanned.
  • Technical Questions: What constitutes the "promotion request message"? Is it a discrete data packet generated after items are scanned, or is it the stream of scanned UPC data itself? The complaint's allegations suggest the former, which may create a mismatch with the claim's requirement that the message is "scanned."

V. Key Claim Terms for Construction

U.S. Patent No. 9,070,133

  • The Term: "unique account identifier ... scanned"
  • Context and Importance: This term is foundational to the infringement allegation for the ’133 Patent. The dispute will likely focus on whether a barcode displayed on a general-purpose smartphone screen, representing a loyalty account, falls within the scope of this term. Practitioners may focus on this term because the patent's 2006 priority date and specification language predate the widespread adoption of smartphones for POS interactions.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The claim language itself is technologically neutral, not specifying the medium of the "unique account identifier" or the mechanism of "scanning" (e.g., optical, magnetic).
    • Evidence for a Narrower Interpretation: The specification repeatedly discusses physical "coupon cards," some with "Magnetic Ink Character Recognition" strips or RFID technology (’133 Patent, col. 3:61-4:6, col. 5:4-9). Figure 1 of the patent explicitly depicts a "CARD READER" (102) as the component that receives the input, which may suggest the invention was conceived for physical media.

U.S. Patent No. 9,098,855

  • The Term: "promotion request message is scanned at the POS terminal"
  • Context and Importance: This limitation appears to require that the message itself, not just the products that generate it, is scanned. The viability of the infringement claim against the ’855 Patent may depend on whether the accused system's API-based data transmission can be construed as a "scanned message."
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: A party could argue that "scanned" should be interpreted functionally to cover the entire process initiated by optical scanning of products that culminates in the creation and transmission of the message.
    • Evidence for a Narrower Interpretation: The plain meaning of the language suggests an action performed on the message itself. The specification describes consumer transactions where UPCs or products are scanned, which then comprise a "list" within a transaction, which is then sent as a message (’855 Patent, col. 17:38-18:28, Fig. 10). This may support an interpretation that the products are scanned, and the resulting message is transmitted electronically, not scanned itself.

VI. Other Allegations

Indirect Infringement

The complaint alleges induced infringement for all three patents. The basis for this allegation is that Birdzi encourages and instructs its customers and retail partners to install, configure, and use the Accused Products (e.g., by downloading and using the mobile apps) in a manner that directly infringes the asserted method and system claims (Compl. ¶¶66, 79, 99).

Willful Infringement

The complaint alleges willful infringement based on Defendant's alleged continued infringement after receiving actual notice of the Patents-in-Suit via a letter dated May 9, 2025 (Compl. ¶41).

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

This case presents several critical questions of claim scope and technical operation that will likely define the litigation.

  • A core issue will be one of definitional scope: Can the term "unique account identifier...scanned," from a patent family originating in 2006 with descriptions of physical cards, be construed to cover a loyalty barcode displayed on a modern smartphone screen? The outcome may depend on whether the court views the term as technologically neutral or limited by the embodiments described in the specification.
  • A second central question will be one of functional operation: Does the accused system's transmission of basket data via an API meet the ’855 Patent’s requirement that a "promotion request message is scanned"? The case may turn on whether this claim language requires the message itself to be optically scanned, or if it can be read more broadly to encompass a data packet generated as a result of scanning products.
  • A key evidentiary question will be one of technical implementation: The precise data and commands exchanged between the retailer POS systems and Birdzi's remote servers will be critical. Discovery will likely focus on the specific content of the "indication" of a valid coupon sent to the POS and the exact nature of the "promotion request message" to determine if they align with the functional requirements of the asserted claims.