DCT
2:17-cv-10033
Reflection Code LLC v. Cabeau Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Reflection Code LLC (Texas)
- Defendant: Cabeau Inc. (California)
- Plaintiff’s Counsel: JACKIER GOULD, P.C.
- Case Identification: 2:17-cv-10033, E.D. Mich., 01/05/2017
- Venue Allegations: Venue is asserted based on Defendant's business operations, the claims arising from activities within the district, and ongoing acts of infringement taking place in the Eastern District of Michigan.
- Core Dispute: Plaintiff alleges that Defendant’s use of QR codes on its consumer products infringes patents related to systems where a barcode contains a pointer to information in an online database.
- Technical Context: The technology involves using two-dimensional barcodes on physical products to link users, via their mobile devices, to remote web-based information through a database lookup system.
- Key Procedural History: The complaint alleges that each of the three asserted patents is licensed to at least twenty-one separate entities, which may be raised in arguments concerning commercial success and damages.
Case Timeline
| Date | Event |
|---|---|
| 2000-07-18 | Priority Date ('657, '446, '907 Patents) |
| 2011-06-21 | U.S. Patent No. 7,963,446 Issues |
| 2014-05-27 | U.S. Patent No. 8,733,657 Issues |
| 2014-07-01 | U.S. Patent No. 8,763,907 Issues |
| 2016-10-27 | Accused QR code allegedly captured from Defendant's product |
| 2017-01-05 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,733,657 - "Barcode Device"
The Invention Explained
- Problem Addressed: The patent's background describes the general use of barcodes for information scanning, while the detailed description implies a technical problem with the limited data capacity of conventional codes and the need for a more flexible way to link physical items, like advertisements, to large, updatable sets of digital information ('657 Patent, col. 1:20-29; col. 4:5-15).
- The Patented Solution: The invention describes a system for encoding, and an apparatus for, a two-dimensional barcode that contains a "pointer" to an entry in a remote, internet-accessible database. When a device reads the code, it uses this pointer to query the database, which in turn returns a Uniform Resource Locator (URL) that directs the user to the desired web content ('657 Patent, col. 4:28-34, Fig. 4). This architecture separates the static physical code from the dynamic online information it links to ('657 Patent, col. 4:55-60).
- Technical Importance: This approach allows marketers or manufacturers to update the online content associated with a product without needing to alter or replace the physical barcode printed on packaging or advertising materials ('657 Patent, col. 4:5-15).
Key Claims at a Glance
- The complaint does not identify specific claims, but the allegations map most closely to independent claim 13, an apparatus claim for the barcode itself.
- The essential elements of independent claim 13 are:
- A two-dimensional barcode comprising a portion with coded information.
- The coded information includes a "first coded information" comprising a value that is an "indication of a command."
- The coded information also includes a "second coded information" comprising a value that is a "pointer" addressing an entry in an internet database.
- The database entry itself comprises a URL.
- When a device reads the barcode, it executes the command, which uses the pointer to retrieve and return the URL from the database.
- Plaintiff implicitly reserves the right to assert other claims, including dependent claims.
U.S. Patent No. 7,963,446 - "Bar Code Device"
The Invention Explained
- Problem Addressed: The patent specification describes a need to use barcodes for more complex tasks than simple data entry, such as linking a physical item to a rich set of information available through a remote database ('446 Patent, col. 1:22-37). The technical challenge is to create a seamless bridge between a user's interaction with a physical object and the retrieval of extensive, related online content using a portable device ('446 Patent, col. 4:5-20).
- The Patented Solution: The patent claims a method where a portable communication device with a camera, such as a cellular phone, is used to obtain an image of a barcode ('446 Patent, Abstract; col. 2:11-20). The device decodes the barcode to extract a pointer, uses the pointer to fetch a website address from a remote database via a wireless channel, and displays the resulting website. The claimed method also explicitly requires the step of using the portable device to "make a telephone call" ('446 Patent, col. 8:14-15).
- Technical Importance: The claimed method provides a framework for interactive advertising and product information retrieval, allowing for direct consumer engagement from physical media at a time when mobile internet and camera-equipped phones were becoming widespread ('446 Patent, col. 4:5-15).
Key Claims at a Glance
- The complaint alleges indirect infringement of "one or more claims," with the allegations mapping to independent claim 1, a method claim.
- The essential elements of independent claim 1 are:
- Using a portable communication device with a camera to obtain an image of a barcode.
- Using the portable device to make a telephone call.
- Decoding information in the barcode where a first part is a "command" and a second part is a "pointer."
- Using the pointer to fetch a corresponding website address from a remote database.
- Fetching and displaying the website address and the website itself on the device.
U.S. Patent No. 8,763,907 - "Bar Code Device"
- Technology Synopsis: This patent, from the same family as the others, describes a system for linking a physical object to online content ('907 Patent, col. 1:20-29). The solution involves a mobile device reading a 2D barcode that contains a first uniform resource locator (URL), which directs the device to an internet database; the database, in turn, provides a second, different URL that points to the final online content, enabling functions like redirection and tracking ('907 Patent, col. 8:1-12, Abstract).
- Asserted Claims: The complaint asserts indirect infringement of one or more claims, including independent claims 1 and 12.
- Accused Features: The QR codes on Defendant's products are alleged to contain a first uniform resource locator that, when scanned, addresses an internet database to receive a second uniform resource locator (Compl. ¶53, ¶54).
III. The Accused Instrumentality
Product Identification
- The "Accused Instrumentalities" are identified as Defendant’s "retail consumer products and/or marketing materials," with the "Cabeau Evolution Pillow" and its associated quick response (QR) code cited as a specific example (Compl. ¶17-18).
Functionality and Market Context
- The complaint alleges that these products incorporate a two-dimensional barcode which, when scanned by a consumer's device, functions as a pointer to a database entry (Compl. ¶17). This database entry then returns a URL to the device, directing the user to online content. The complaint alleges these products are sold throughout the United States but provides no further detail regarding their commercial importance or market position (Compl. ¶3). No probative visual evidence provided in complaint.
IV. Analysis of Infringement Allegations
U.S. Patent No. 8,733,657 Infringement Allegations
| Claim Element (from Independent Claim 13) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| A two-dimensional barcode comprising: a two-dimensional portion comprising coded information; | The Accused Instrumentalities incorporate a two-dimensional "quick response code." | ¶18 | col. 9:6-7 |
| the first coded information comprising a first value comprising an indication of a command... | The complaint's allegation that the barcode acts as a "pointer addressing a database entry" implies a command to use that pointer to fetch information. | ¶17 | col. 9:10-12 |
| the second coded information comprising a second value, wherein the second value... is a pointer addressing a database entry... the database entry comprising a URL; | The barcode is alleged to include a "value acting as pointer addressing a database entry" which contains a URL. | ¶17 | col. 9:12-16 |
| wherein when a computer-controlled reading device reads the barcode, the device executes the command... and... returns the URL... | This describes the alleged result when a user scans the QR code on Defendant's product. | ¶17 | col. 9:18-22 |
- Identified Points of Contention:
- Scope Questions: A primary issue may be whether the data in the accused QR code contains two distinct pieces of information corresponding to a "command" and a "pointer" as required by claim 13. The defense may argue that a standard QR code directing to a URL contains only a single data string (the URL itself), not a separate command and pointer.
- Technical Questions: The analysis may turn on what evidence shows that reading the accused QR code causes a device to "execute a command" that is technically distinct from the default behavior of a browser navigating to an encoded URL.
U.S. Patent No. 7,963,446 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| using a portable communication device which includes a camera therein to obtain an image of a bar code... | The infringement theory relies on customers scanning the QR code on Defendant's product with their camera-equipped devices. | ¶35, ¶39 | col. 8:8-12 |
| using said portable communication device to make a telephone call; | The complaint does not contain factual allegations that users make a telephone call when scanning the accused QR codes. | N/A | col. 8:14-15 |
| decoding... information in the bar code... wherein first information... comprises a command to use second information... as a pointer to fetch a corresponding website address from a database... | The complaint alleges that the barcode "includes information used as a pointer to fetch a corresponding website address... from a remote database." | ¶35 | col. 8:16-24 |
| fetching... the corresponding website address from the remotely located database... and displaying the address and the corresponding website... | This describes the alleged outcome of a user scanning the QR code on Defendant's product. | ¶35 | col. 8:25-29 |
- Identified Points of Contention:
- Technical Questions: A key question will be whether Plaintiff can produce any evidence that users of the accused products perform the claimed method step of "mak[ing] a telephone call." The absence of this allegation in the complaint suggests a significant potential gap in Plaintiff's infringement theory for this patent.
- Scope Questions: The case may raise the question of whether the act of a smartphone using its cellular data connection to access the internet can be construed to meet the "make a telephone call" limitation, or if the term is limited to its ordinary meaning of a voice call.
V. Key Claim Terms for Construction
- The Term: "an indication of a command" ('657 Patent, claim 13)
- Context and Importance: The infringement analysis for the '657 patent may turn on whether the accused QR code contains a "command" separate from the "pointer." If the court construes this term to require a discrete data element separate from the pointer (e.g., a URL), and the accused code only contains a URL, it could support a finding of non-infringement.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes the information as a "cue, e.g. a number, that is associated with a special function," which could be argued to support a broad interpretation where the URL itself implicitly "commands" a browser to navigate ('657 Patent, col. 4:37-39).
- Evidence for a Narrower Interpretation: An embodiment in the specification describes a distinct "address command AD, followed by a base 39 alphanumeric value 4DMKDP," suggesting the command is a discrete data string separate from the pointer value itself ('657 Patent, col. 4:1-3).
- The Term: "make a telephone call" ('446 Patent, claim 1)
- Context and Importance: This term is critical because the complaint's factual allegations do not appear to describe this activity. A narrow construction limited to a voice call would likely be fatal to the infringement claim for the '446 patent as currently pleaded. Practitioners may focus on this term as a dispositive issue for this patent.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The patent states that the portable device can be a "cellular telephone" and that it makes a "wireless communication over a channel" ('446 Patent, col. 2:16-17, col. 8:14-15). A plaintiff could argue that in this context, any data transmission over the cellular network constitutes a "call."
- Evidence for a Narrower Interpretation: The common and ordinary meaning of "telephone call" is a voice communication. The patent does not provide an explicit definition that broadens this term to include data transmission, which may lead a court to apply its ordinary meaning.
VI. Other Allegations
- Indirect Infringement: The complaint alleges inducement of the '446 and '907 patents, asserting that Defendant's "advertising and distributing" of the products and provision of "instruction materials" encourages customers to perform the infringing methods (Compl. ¶40, ¶58). Contributory infringement is alleged for all three patents based on the theory that the incorporated barcode device is a material component especially adapted for infringement and not a staple article of commerce (Compl. ¶23, ¶41, ¶59).
- Willful Infringement: Willfulness is not explicitly pleaded as a separate count, but the complaint alleges that Defendant had knowledge of the patents and infringement at least as of the filing of the complaint (Compl. ¶20, ¶38, ¶56). Plaintiff seeks a declaration that the case is exceptional under 35 U.S.C. § 285, which supports an allegation of at least post-suit willful infringement (Compl. ¶C).
VII. Analyst’s Conclusion: Key Questions for the Case
- A central issue will be one of claim scope versus product function: can the data in a standard QR code that points to a single URL be construed to meet the '657 patent's requirement for two separate components, an "indication of a command" and a "pointer"?
- A key evidentiary question for the '446 patent will be one of a missing element: will Plaintiff be able to prove that users of Defendant's products "make a telephone call" as part of the scanning process, or will the court be persuaded to construe this term broadly to encompass cellular data transmission, an interpretation not explicitly supported by the patent's text?
- An overarching question for the indirect infringement claims will be one of intent: given the ubiquitous and conventional use of QR codes to link to websites, what specific evidence can Plaintiff present to demonstrate that Defendant, by placing a standard QR code on its products, possessed the specific intent to induce its customers to infringe the patented methods?