DCT
1:25-cv-07425
Virtual Creative Artists LLC v. Hyatt Corp
Key Events
Complaint
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Virtual Creative Artists, LLC (Delaware)
- Defendant: Hyatt Corporation (Delaware)
- Plaintiff’s Counsel: Direction IP Law
- Case Identification: 1:25-cv-07425, N.D. Ill., 07/02/2025
- Venue Allegations: Venue is alleged to be proper based on Defendant's principal place of business being located in Chicago, Illinois, within the Northern District of Illinois.
- Core Dispute: Plaintiff alleges that Defendant’s hotel booking website and mobile application infringe two patents related to systems and methods for creating and distributing multimedia content based on user submissions, filtering, and rating.
- Technical Context: The patents-in-suit relate to early systems for managing crowdsourced media, creating a structured exchange for users to submit creative content and for platform operators to curate, develop, and distribute it.
- Key Procedural History: The complaint notes that arguments similar to those presented in its infringement contentions were used to overcome patent eligibility rejections under 35 U.S.C. § 101 during the prosecution of both asserted patents, suggesting that patent eligibility may be a central issue in this litigation. The two asserted patents share an identical specification.
Case Timeline
| Date | Event |
|---|---|
| 1999-05-05 | Earliest Priority Date for ’480 and ’665 Patents |
| 2012-11-16 | Application filing date leading to the ’665 Patent |
| 2016-10-25 | ’665 Patent Issued |
| 2016-11-22 | ’480 Patent Issued |
| 2019-12-10 | Earliest Accused Instrumentality archive date cited |
| 2025-07-02 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 9,501,480 - Revenue-Generating Electronic Multi-Media Exchange and Process of Operating Same, issued November 22, 2016
The Invention Explained
- Problem Addressed: The patent specification describes a "logistical nightmare" for both media companies seeking new creative works and for individual artists trying to submit their work to the appropriate contacts, noting that media companies are "bombarded with scripts, songs and other artistic submissions" that must be sorted and reviewed ('665 Patent, col. 2:50-56).
- The Patented Solution: The invention proposes a computer-based "electronic multi-media exchange" to solve this problem (Compl. ¶11). The system is structured as a collection of four distinct server "subsystems": one for receiving media submissions, one for creators to select and filter those submissions to develop new content, one to release the developed content to an audience, and one for the audience to vote on or rate the content (Compl. ¶12; '665 Patent, Fig. 2).
- Technical Importance: The patent, with a 1999 priority date, describes a foundational architecture for a crowdsourcing platform, providing a structured computer system to manage the intake, curation, and distribution of large volumes of user-generated content (Compl. ¶11).
Key Claims at a Glance
- The complaint asserts independent claim 1 and dependent claims 2, 4, and 15 (Compl. ¶22).
- Independent claim 1 recites a computer-based system comprising:
- An electronic media submissions server subsystem;
- A user database with user attributes;
- An electronic multimedia creator server subsystem, operatively coupled to the submissions subsystem, configured to select and retrieve submissions using an electronic content filter based on user attributes to develop multimedia content;
- An electronic release subsystem, operatively coupled to the creator subsystem, configured to make the multimedia content available for viewing; and
- An electronic voting subsystem configured to enable a user to vote for or rate the multimedia content.
U.S. Patent No. 9,477,665 - Revenue-Generating Electronic Multi-Media Exchange and Process of Operating Same, issued October 25, 2016
The Invention Explained
- Problem Addressed: The '665 Patent shares an identical specification with the '480 Patent and thus addresses the same logistical problem of connecting media creators with a large, disparate group of content submitters (Compl. ¶40; '665 Patent, col. 2:11-56).
- The Patented Solution: Rather than a system, the '665 Patent claims an electronic method for generating and distributing multimedia content that "cannot be achieved with the human mind" (Compl. ¶41). The claimed process involves electronically retrieving submissions from a database using a filter, electronically generating a multimedia file from those submissions, transmitting the file to webservers for viewing, and providing a graphical user interface (GUI) for users to rate or vote on the content ('665 Patent, col. 39:26-56).
- Technical Importance: The claimed invention provides a specific, unconventional, and non-routine computer-implemented process for managing a crowdsourced content pipeline, from submission to distribution and feedback (Compl. ¶40, 42).
Key Claims at a Glance
- The complaint asserts independent claim 1 and dependent claims 5 and 16 (Compl. ¶48).
- Independent claim 1 recites an electronic method comprising the steps of:
- Electronically retrieving a plurality of electronic media submissions from a database using an electronic content filter based on user attributes;
- Electronically generating a multimedia file from the retrieved submissions in a selected digital format, maintaining submitter identification;
- Electronically transmitting the multimedia file to publicly accessible webservers for viewing; and
- Providing a web-based GUI that enables a user to transmit data indicating a vote or rating for the content.
III. The Accused Instrumentality
Product Identification
The Accused Instrumentality is the computer-based system that operates Hyatt’s website (https://www.hyatt.com/) and associated mobile applications (Compl. ¶¶22, 48).
Functionality and Market Context
The system functions as a platform for hotel bookings and information. It enables hotel operators ("Host Brands" or "Submitters") to upload and share multimedia content, including images and textual descriptions, to create "Hotel Listings" (Compl. ¶23). End-users can search, browse, and filter these listings based on various attributes, such as hotel amenities, brand, and location (Compl. ¶27). The complaint provides a screenshot of the hotel search filter interface, which includes options like "Free parking," "Pool," and "Spa." (Compl. p. 13). The system also incorporates a user review feature that allows guests to provide star ratings and written feedback on properties (Compl. ¶30).
IV. Analysis of Infringement Allegations
'480 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| an electronic media submissions server subsystem... having... a submissions electronic interface... configured to receive electronic media submissions from a plurality of submitters | The Accused Instrumentality includes servers and a content portal interface that allow multiple hotel operators (Hosts) to submit content, such as photos and text, to create their Hotel Listings. | ¶24 | col. 7:32-44 |
| an electronic multimedia creator server subsystem... configured to select and retrieve a plurality of electronic media submissions... using an electronic content filter... based at least in part on at least one of the one or more user attributes to develop multimedia content | The system selects and retrieves Hotel Listings from its database using a filter based on user attributes such as "Hotel Amenities, Hotel Categories, [and] Brands" to display curated results to users. The complaint includes a screenshot of the filtering options on the Hyatt website. | ¶27 | col. 24:51-57 |
| an electronic release subsystem... configured to make the multimedia content electronically available for viewing on one of more user devices | The system serves the filtered Hotel Listings and associated multimedia content to users for viewing on their computers and mobile devices via web browsers and applications. | ¶29 | col. 4:41-46 |
| an electronic voting subsystem... configured to enable a user to electronic vote for or electronically rate an electronically available multimedia content | The system provides a feature for users to submit electronic ratings (e.g., star ratings) and reviews for Hotel Listings. The complaint shows a screenshot of the rating and review interface, which displays an "Average rating based on 1754 reviews." | ¶30 | col. 27:51-61 |
Identified Points of Contention: '480 Patent
- Scope Questions: A central question may be whether the defendant's cloud-based, and potentially integrated, software architecture can be mapped onto the patent's claimed architecture of four distinct "subsystems." The complaint alleges the use of "separate server subsystems" (Compl. ¶23), but the actual degree of technical separation in the accused system will be a key factual issue.
- Technical Questions: The complaint identifies the user-facing hotel search tool as the "electronic content filter" used to "develop multimedia content." A point of contention could be whether a consumer-side search filter that displays existing content performs the same function as the claimed filter, which the patent describes as a tool for a "creator" to select submissions for the purpose of developing or assembling new content.
'665 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| electronically retrieving a plurality of electronic media submissions from an electronic media submissions database using an electronic content filter... based at least in part on at least one of the one or more user attributes | The Accused Instrumentality retrieves Hotel Listings from its database based on user-selected filter criteria, such as Hotel Amenities, Categories, and Brands. | ¶50 | col. 25:40-44 |
| electronically generating a multimedia file from the retrieved electronic media submissions in accordance with a selected digital format, wherein the identification of the submitter is maintained | The system generates a web page or mobile app view (the "multimedia file") containing the filtered Hotel Listings, formatted for the user's device, while maintaining the name of the hotel (the "submitter") with its listing. A screenshot of the mobile app display shows hotel names associated with their listings. | ¶53 | col. 4:36-41 |
| electronically transmitting the multimedia file to a plurality of publicly accessible webservers to be electronically available for viewing on one or more user devices over a public network | The system transmits the generated web page or app view to users over the Internet via its geographically distributed webservers and content delivery networks. | ¶54 | col. 6:15-25 |
| providing a web-based graphical user interface that enables a user to electronically transmit data indicating a vote or rating for an... electronic media Submission | The system provides a GUI on its website and mobile app that allows users to submit star ratings and written reviews for the Hotel Listings. | ¶55 | col. 27:51-61 |
Identified Points of Contention: '665 Patent
- Scope Questions: A dispute may arise over whether dynamically generating a search results page for a user constitutes "electronically generating a multimedia file from the retrieved electronic media submissions." The defense may argue this is simply displaying data, not creating a new, discrete "file" as contemplated by the patent's description of a content development and release process.
- Technical Questions: As with the ’480 Patent, the analysis may focus on whether the consumer-facing search filter is equivalent to the claimed "electronic content filter" used for retrieving submissions as a step in a content generation process, rather than a content display process.
V. Key Claim Terms for Construction
Term: "subsystem" ('480 Patent, Claim 1)
- Context and Importance: Practitioners may focus on this term because the validity of the complaint's infringement theory for the '480 Patent depends on mapping Hyatt's infrastructure to the claimed collection of four distinct "subsystems." The construction of this term will determine whether logical or functional separation of software modules is sufficient, or if a higher degree of structural or physical separation is required.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The patent’s Figure 2 depicts various processors (e.g., Billing Processor 225, Payment Processor 230) and databases as components within a single "Central Controller 200," which may suggest that "subsystem" does not require separate physical hardware ('665 Patent, Fig. 2).
- Evidence for a Narrower Interpretation: Figure 3 discloses an alternative embodiment where different functions are performed by physically separate "Controllers" (320, 330, 340) connected via a "WAN HUB" (300). This could support an argument that "subsystem" implies more than just software modules performing different tasks on the same server hardware ('665 Patent, Fig. 3).
Term: "to develop multimedia content" ('480 Patent, Claim 1)
- Context and Importance: The infringement allegation for the '480 Patent hinges on whether the accused "electronic content filter" is used "to develop multimedia content." Practitioners may focus on this term because the accused filter is a user-facing search tool, whereas the patent often describes the filter in the context of a "creator" assembling new media. The construction will determine if filtering for display is equivalent to filtering for development.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The term "develop" is not explicitly defined and could be argued to broadly cover any process that results in a presentation of content to a user.
- Evidence for a Narrower Interpretation: The specification repeatedly discusses a process where a "creator" first "searched for submission material," then "selected" it, and then the "content is developed based... upon the selected one or more submissions" ('665 Patent, col. 4:26-41). This sequential language suggests "develop" is a distinct step of creation that occurs after submissions are retrieved and before they are released, a different function from a real-time public search filter.
VI. Other Allegations
The complaint does not contain counts for indirect or willful infringement.
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of architectural mapping: can the claimed system of distinct "subsystems," conceived in the context of late-1990s network architecture, be read onto the defendant's modern, and potentially more integrated, cloud-based platform?
- A key evidentiary question will be one of functional purpose: does the accused platform's consumer-facing search filter, which allows users to find existing hotel listings, perform the function of the claimed "electronic content filter," which the patent specification frames as a tool used by a creator to select submissions for the purpose of "developing" new multimedia content?
- The case may also turn on a question of definitional scope: does the act of dynamically generating a web page of search results for a user constitute "electronically generating a multimedia file from the retrieved... submissions," or is there a fundamental mismatch between displaying existing data and creating a new, distinct media file as claimed?