DCT
2:17-cv-10067
Reflection Code LLC v. DJI Technology Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Reflection Code LLC (Texas)
- Defendant: DJI Technology, Inc. (California)
- Plaintiff’s Counsel: JACKIER GOULD, P.C.
- Case Identification: 2:17-cv-10067, E.D. Mich., 01/10/2017
- Venue Allegations: Plaintiff alleges venue is proper because Defendant conducts business in the district, the claims arise from activities within the district, and the acts of infringement have occurred and are continuing there.
- Core Dispute: Plaintiff alleges that Defendant’s use of two-dimensional barcodes (e.g., QR codes) on its consumer products and marketing materials infringes patents related to using a barcode to retrieve online information from a database.
- Technical Context: The technology at issue bridges physical media and the internet by using scannable barcodes to direct a user's device to a specific web address, effectively turning a printed code into a hyperlink.
- Key Procedural History: The complaint alleges that as of the filing date, there are at least twenty-one licensees to each of the three patents-in-suit, which may be presented to suggest the patents' value and non-obviousness.
Case Timeline
| Date | Event |
|---|---|
| 2000-07-18 | Earliest Priority Date for ’657, ’446, and ’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 |
| 2016-08-17 | Date of Capture for Accused QR Code on DJI Product |
| 2017-01-10 | Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,733,657 - Barcode Device, issued May 27, 2014
The Invention Explained
- Problem Addressed: The patent's background section notes the conventional use of one- and two-dimensional barcodes for purposes such as inventory control, implying a need for more advanced applications ('657 Patent, col. 1:19-28). The complaint frames the problem as a need for "flexibility in the information returned by the database" when using barcodes (Compl. ¶10).
- The Patented Solution: The invention proposes using a scannable code not just to store static information, but to act as a pointer or address to retrieve more extensive information from a remote, publicly available database ('657 Patent, col. 1:35-44). The system, illustrated in FIG. 4 of the patent, involves a client device (310) scanning a barcode (405) that contains information used to access a server (450), which in turn provides more detailed information (455) back to the client ('657 Patent, col. 4:30-47). This creates a dynamic link between a physical object and updatable online content.
- Technical Importance: This approach allows information associated with a physical barcode to be updated dynamically at the server level without altering the printed code itself, a significant improvement over barcodes that only contain static, self-contained data ('657 Patent, col. 4:56-60).
Key Claims at a Glance
- The complaint asserts infringement of "one or more claims" without specifying them (Compl. ¶17). Independent claim 13 is representative of the asserted technology.
- The essential elements of independent claim 13, a barcode apparatus claim, include:
- A two-dimensional barcode containing coded information.
- The coded information includes a "first value" indicating a "command" and a "second value" acting as a "pointer" to an entry in a database stored on the internet.
- The database entry itself contains a URL.
- A reading device, upon scanning the barcode, executes the command, uses the pointer to access the database entry, and receives the URL from that entry.
- The complaint does not explicitly reserve the right to assert dependent claims, though this is standard practice.
U.S. Patent No. 7,963,446 - Bar Code Device, issued June 21, 2011
The Invention Explained
- Problem Addressed: The technical problem is identical to that described for the ’657 Patent: enhancing the functionality of barcodes beyond static data storage to allow for flexible information retrieval from online sources (Compl. ¶27; ’446 Patent, col. 1:12-18).
- The Patented Solution: The ’446 patent claims a method for using a portable communication device (e.g., a camera phone) to read a barcode and retrieve a website address ('446 Patent, col. 8:4-12). The method involves decoding information in the barcode that comprises both a "command" and a "pointer," using the pointer to fetch a website address from a remote database, and then displaying that address on the device ('446 Patent, col. 8:13-28).
- Technical Importance: The claimed method provides a specific process for using common consumer electronics, like phones with cameras, to bridge the gap between printed media and interactive, online content ('446 Patent, col. 2:6-20).
Key Claims at a Glance
- The complaint asserts "one or more claims" without specification (Compl. ¶35). Independent claim 1 is a representative method claim.
- The essential steps of independent claim 1 include:
- Using a portable communication device with a camera to obtain an image of a barcode.
- Making a telephone call with the device.
- Decoding the barcode to obtain a "command" and a "pointer."
- Using the pointer to fetch a corresponding website address from a remote database.
- Displaying the fetched website address on the device.
- The claim further specifies that the information in the barcode comprises a series of digits that are not themselves a website address.
- The complaint does not explicitly reserve the right to assert dependent claims.
U.S. Patent No. 8,763,907 - Bar Code Device, issued July 1, 2014
- Technology Synopsis: This patent, like the others in the family, addresses the problem of linking a physical barcode to dynamic online content. The invention claimed in the ’907 patent focuses on a mobile device that reads a barcode containing a first uniform resource locator (URL), uses that URL to access an internet database, and receives a second uniform resource locator from that database to display to the user ('907 Patent, col. 8:1-12).
- Asserted Claims: The complaint asserts "one or more claims" (Compl. ¶53). Independent claims 1 and 12 are asserted.
- Accused Features: The complaint alleges infringement by Defendant's products that incorporate a barcode containing a "first uniform resource locator, which addresses a database on the internet to receive a second uniform resource locator" (Compl. ¶53).
III. The Accused Instrumentality
Product Identification
The complaint identifies the "Accused Instrumentalities" as Defendant's "retail consumer products and/or marketing materials" that incorporate a two-dimensional barcode (Compl. ¶17). A specific example cited is a "quick response code found DJI Osmo Pro/Raw" (Compl. ¶18, ¶36, ¶54).
Functionality and Market Context
- The core accused functionality is the inclusion of a two-dimensional barcode that, when scanned by a computer-controlled device (e.g., a smartphone), "returns a URL in the addressed database entry to a computer-controlled device" (Compl. ¶17). The complaint alleges this system uses the barcode as a "pointer addressing a database entry" to retrieve information (Compl. ¶17).
- The complaint alleges these products are marketed and sold throughout the United States (Compl. ¶19). No probative visual evidence provided in complaint.
IV. Analysis of Infringement Allegations
’657 Patent 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; | Defendant is alleged to incorporate a "two-dimensional barcode device," specifically a "quick response code found DJI Osmo Pro/Raw," into its products and marketing materials. | ¶18, ¶19 | col. 2:16-20 |
| the coded information comprising first coded information ... comprising a first value comprising an indication of a command ... and second coded information comprising a second value ... [as] a pointer addressing a database entry ... | The complaint alleges the barcode "includes a value acting as pointer addressing a database entry" which "returns a URL in the addressed database entry." | ¶17 | col. 4:30-34 |
| wherein when a computer-controlled reading device reads the barcode, the device executes the command and passes the second value to the command ... and returns the URL in the addressed database entry to the computer-controlled device. | The functionality is alleged to be used by customers whose devices scan the code and are directed to a URL, which the complaint frames as the barcode returning a URL to the device. | ¶17, ¶21 | col. 4:40-47 |
’446 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| A method of reading and using a barcode comprising: using a portable communication device which includes a camera therein to obtain an image of a bar code... | The complaint alleges Defendant induces its partners and customers to use the barcode device with their own computer-controlled devices, which constitutes direct infringement. | ¶21-22 | col. 2:6-14 |
| decoding, by the portable communication device, information in the bar code ... wherein first information ... comprises a command to use second information ... as a pointer... | The complaint alleges the barcode "includes information used as a pointer to fetch a corresponding website address linked to the information from a remote database." | ¶35 | col. 8:56-63 |
| to fetch a corresponding website address linked to the second information from a database remotely located from the portable communication device... | The complaint alleges the system functions by using the barcode's information "to fetch a corresponding website address ... from a remote database." | ¶35 | col. 8:19-25 |
| wherein both the first and second information comprises a series of digits that are not a website address. | The complaint does not provide sufficient detail for analysis of this element. | N/A | col. 8:29-32 |
Identified Points of Contention
- Scope Questions: The claims of the ’657 and ’446 patents recite distinct "command" and "pointer" elements within the barcode. A central question will be whether a standard QR code that simply encodes a single URL can satisfy these multipart limitations. A defendant may argue that a URL is a single data element (an address) and does not contain a separate "command" as contemplated by the patent.
- Technical Questions: What evidence does the complaint provide that the accused QR codes contain a data structure that maps to the claimed "command" and "pointer" architecture? The infringement analysis will depend on the specific data encoded in the accused barcodes, a technical detail not included in the complaint.
V. Key Claim Terms for Construction
The Term: "a pointer addressing a database entry" (’657 Patent, cl. 13)
Context and Importance: The definition of this term is critical. If construed narrowly to require a level of indirection (i.e., a code that retrieves a URL, rather than the URL itself), it may not read on a simple QR code that directly encodes the final URL. Practitioners may focus on this term because the patent's specification describes both a simple embodiment (the barcode contains a URL) and a more complex one (the barcode contains a "cue" used to look up a URL).
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification suggests a URL itself can be the stored information: "For example, the bar code may include the web site address of the company preparing the advertisement..." (’657 Patent, col. 4:15-17). This could support a reading where the "pointer" is the URL.
- Evidence for a Narrower Interpretation: The specification also describes a system where the information is a "cue" that "is sent over the Internet 432 to the server 450, and addresses more detailed information in a memory of the server. The server returns that information as 455..." (’657 Patent, col. 4:40-47). This supports a narrower reading where the "pointer" is an intermediate value, not the final web address.
The Term: "command" (’657 Patent, cl. 13; ’446 Patent, cl. 1)
Context and Importance: The claims require the barcode to contain a "command." The viability of the infringement claim depends on whether the accused QR code, which may only contain a URL string, can be found to contain such a command.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification gives an example of "an address command AD, followed by a base 39 alphanumeric value" (’657 Patent, col. 3:67-col. 4:2). A plaintiff might argue that any data that causes an action (like a URL prefix such as "http://") constitutes a "command."
- Evidence for a Narrower Interpretation: The explicit example of a structured "address command AD" separate from the data value could support a narrower construction requiring a specific, recognizable command format within the barcode's data, which a standard URL may lack.
VI. Other Allegations
- Indirect Infringement: For all three patents, the complaint alleges both induced and contributory infringement. The inducement allegations are based on Defendant allegedly advertising, distributing, and providing "instruction materials, training, and services" that encourage partners and customers to use the accused products in an infringing manner (Compl. ¶22, ¶40, ¶58). The contributory infringement allegations state the barcode device is a material component "especially made or adapted for use in an infringement" and is not a staple article of commerce (Compl. ¶23, ¶41, ¶59).
- Willful Infringement: The complaint alleges willful infringement based on Defendant's knowledge of the patents "at least as early as the filing of this Complaint" (Compl. ¶20, ¶38, ¶56). This grounds the willfulness claim in alleged post-suit conduct.
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of claim construction: can a standard QR code containing a single URL be interpreted to meet the patents' requirements for distinct "command" and "pointer" data elements? The outcome will likely depend on whether the court adopts a broad interpretation where the URL itself embodies these elements, or a narrow one requiring a more complex, structured data format within the barcode.
- A second central question will be evidentiary: what is the precise data structure encoded in the accused DJI QR codes? The complaint's notice-style pleading leaves open the factual question of whether the technical implementation of Defendant's barcodes aligns with the specific architecture claimed in the patents-in-suit.
- Finally, a key legal question for the court may be patent eligibility under 35 U.S.C. § 101. Although the complaint argues the claims are rooted in computer technology and not abstract (Compl. ¶11-14, ¶28-32, ¶46-50), the court will have to determine whether the claims are directed to the abstract idea of using a reference to find information, and if so, whether they contain a sufficient inventive concept to be patentable.