DCT

0:20-cv-01461

Innovative Vending Solutions LLC v. Smarte Carte Inc

I. Executive Summary and Procedural Information

Parties & Counsel:
- Plaintiff: Innovative Vending Solutions, LLC (New Jersey)
- Defendant: Smarte Carte Inc. (Minnesota)
- Plaintiff’s Counsel: Fox Rothschild LLP
Case Identification: Innovative Vending Solutions, LLC v. Smarte Carte Inc., 0:20-cv-01461, D. Minn., 06/25/2020
Venue Allegations: Venue is alleged to be proper in the District of Minnesota because the Defendant, Smarte Carte, has its principal place of business in the district.
Core Dispute: Plaintiff alleges that Defendant’s "Next Generation of Massage Chair," which includes a USB charging port, infringes a patent related to a vending massage chair system that provides device charging as a complimentary service enabled by payment for a massage.
Technical Context: The technology addresses the market for public-use vending massage chairs, such as those in airports and shopping malls, by combining the primary massage service with the secondary, value-added feature of device charging to increase user engagement and revenue.
Key Procedural History: The asserted patent, U.S. Patent No. 9,904,917, was the subject of a supplemental examination and subsequent ex parte reexamination, which concluded with a certificate issued on June 17, 2020, shortly before this complaint was filed. The complaint states that this reexamination confirmed the patentability of the claims. The complaint also references a prior lawsuit in the District of New Jersey where Plaintiff had asserted the same patent in a counterclaim, which was later withdrawn pending the supplemental examination.

Case Timeline

Date	Event
2014-03-26	'917 Patent Priority Date
2015-03-26	'917 Patent Application Filing Date
2018-02-27	'917 Patent Issue Date
2018-09-07	Alleged first manufacture date of Accused Product
2019-05-18	Defendant allegedly promoted the Accused Product at a trade show
2019-05-21	Plaintiff allegedly notified Defendant of the '917 Patent
2019-07-18	Plaintiff's employee allegedly observed the Accused Product in use
2019-08-12	Plaintiff filed a counterclaim asserting the '917 Patent in a separate lawsuit
2019-10-16	Plaintiff filed a request for supplemental examination of the '917 Patent
2020-06-17	USPTO issued an ex parte reexamination certificate for the '917 Patent
2020-06-25	Complaint Filing Date

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

U.S. Patent No. 9,904,917 - "Charging Kiosk and Massage Chair System and Apparatus"

Patent Identification: U.S. Patent No. 9,904,917 ("Charging Kiosk and Massage Chair System and Apparatus"), issued February 27, 2018.

The Invention Explained

Problem Addressed: The patent addresses the challenge of enhancing the value proposition of vending massage chairs while also preventing non-paying individuals from occupying the chairs, a practice which reduces revenue for operators in high-traffic public spaces (Compl. ¶11; ’917 Patent, col. 4:5-10).
The Patented Solution: The invention is a system that integrates a device charger (e.g., USB ports) with a payment-activated massage chair. A processor controls the system such that the charger is only enabled after a user pays for a massage service. Power to the charger is cut off once the paid massage time expires, linking the "complimentary" charging directly to the paid service (’917 Patent, col. 5:42-6:5). The system also describes features to deter loitering, such as a mechanism that creates physical discomfort if a user sits in the chair for a predetermined time without paying (’917 Patent, col. 4:58-62).
Technical Importance: This approach aims to increase revenue by enticing customers with a dual-purpose service and to maximize chair availability by actively discouraging unpaid use (Compl. ¶11).

Key Claims at a Glance

The complaint asserts infringement of at least Claim 1 of the ’917 Patent (Compl. ¶28).
The essential elements of Claim 1, as presented in the complaint's infringement chart, include:
- A seating system with a power supply circuit and at least one seating unit having a massaging component.
- A charger configured to provide a complimentary charging service.
- A payment unit to receive payment for the massage service.
- A processor programmed to enable the charger upon receipt of payment and disable it upon expiration of the paid massage time.
- A sensor to detect a user seated for a time period greater than a predetermined amount of time.
- A discomforting mechanism configured to mechanically cause physical discomfort to the user.
The complaint reserves the right to assert other claims (Compl. ¶19).

III. The Accused Instrumentality

Product Identification

The "Smarte Carte Chair," also marketed as “The Next Generation of Massage Chair” (Compl. ¶18).

Functionality and Market Context

The accused product is a vending massage chair placed in public venues like airports (Compl. ¶17, ¶23). It provides a massage for a fee and features a "USB phone charging port" (Compl. ¶18). An image in the complaint shows instructions on the chair that state, "Charge phone here while chair is in use," suggesting the charging function is available only during the massage session (Compl. ¶24). The complaint positions Defendant as a direct competitor that recently began offering chairs with charging capabilities, directly competing with Plaintiff's business model (Compl. ¶16-17).

IV. Analysis of Infringement Allegations

'917 Patent Infringement Allegations

| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|:-----------------------------------------------|:-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------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|
| A seating system, comprising: | The Smarte Carte Chair is alleged to be a seating system. | ¶28 | col. 5:32 |
| a power supply circuit that provides power to the seating system; | The chair has an electrical power cord that, when plugged in, provides power to the seating system via a power supply circuit. | ¶28 | col. 6:45-49 |
| at least one seating unit having a massaging component... and a seat sized and shaped to allow the user to sit thereon... | The chair has a backrest with a massaging component and is designed for a user to sit with their back adjacent to that component. | ¶28 | col. 5:33-39 |
| a charger configured to provide a complimentary charging service in which charging is facilitated for a power source of an external electronic device... | The chair contains USB charger ports for charging a user's electronic device. | ¶28 | col. 5:39-40 |
| the power supply circuit configured to supply power to the charger during a period of time that the massage service is provided... | The power supply circuit provides power to the USB charger ports during the time the massage service is active. | ¶28 | col. 6:1-5 |
| at least one payment unit configured to receive payment for a massage service... | The chair has a payment unit that accepts payment to begin the massage service. | ¶28 | col. 6:49-53 |
| a processor programmed to initiate a first transition of an operational state of the charger from a first operational state in which the charger is disabled to a second operational state in which the charger is enabled in response to the payment unit's reception of said payment... | A processor enables the charging station in response to payment for the massage service. This is supported by an image of the charging station that instructs the user to "charge phone here while chair is in use" (Compl. ¶24). | ¶28 | col. 5:42-48 |
| initiate a second transition of the operational state of the charger from the second operational state to the first operational state in response to an expiration of a paid amount of time for the massage service; | A processor disables power to the charger when the paid massage time expires. | ¶28 | col. 6:1-5 |
| a sensor configured to detect when the user has been seated on the seat for a time period that is greater than a predetermined amount of time; and | The complaint alleges the chair contains such a sensor, pointing to the overall system as evidence. | ¶28 | col. 4:58-62 |
| a discomforting mechanism configured to mechanically cause physical discomfort to the user. | The complaint alleges the chair contains such a mechanism, pointing to the overall system as evidence. | ¶28 | col. 4:5-10 |

Identified Points of Contention

Asserted Claim Validity: A significant legal issue arises from the complaint's reliance on the original Claim 1 of the ’917 patent. Public records, including the reexamination certificate attached to the patent file, indicate that original Claims 1-4 were cancelled during reexamination and replaced with a new independent Claim 5. The complaint was filed after the reexamination certificate issued. This raises the question of whether the complaint is procedurally defective for asserting a cancelled claim. Plaintiff may argue that its reference to the reexamination certificate (Compl. ¶10) and the inclusion of elements from the now-surviving claims provide sufficient notice of its infringement theory.
Evidentiary Questions: The complaint alleges the presence of a "sensor" for detecting loitering and a "discomforting mechanism" but provides no specific technical evidence of how these features are implemented in the accused chair beyond general assertions and photographs of the entire chair (Compl. ¶28, pp. 21-22). The existence and operation of these specific mechanisms in the Smarte Carte Chair will likely be a central factual dispute.

V. Key Claim Terms for Construction

The Term: "discomforting mechanism"

Context and Importance: This term, originating from a dependent claim that was incorporated into the surviving independent claim, is a key limitation designed to prevent non-paying use. Infringement may turn on whether the accused chair has a structure that meets this definition. Practitioners may focus on this term because the complaint's evidence for its presence is not specific.
Intrinsic Evidence for a Broader Interpretation: The specification describes using "rollers, knobs, irregularly positioned nodules, or large, rounded pins" to "make the system uncomfortable for sitting" (’917 Patent, col. 4:5-7), which could support an interpretation that includes a variety of structures that cause discomfort.
Intrinsic Evidence for a Narrower Interpretation: The specification also describes a more active process where "movement of rollers or other such devices... create[s] discomfort at a user's back" after a set time (’917 Patent, col. 4:58-62). This could support a narrower construction requiring an active, programmed mechanism rather than just passive structural features.

The Term: "complimentary charging service"

Context and Importance: This term defines the relationship between the paid massage and the charging feature. The dispute will likely center on whether charging that is exclusively tied to a paid service can be considered "complimentary."
Intrinsic Evidence for a Broader Interpretation: The patent describes providing the charging service "while simultaneously providing the massage service" (’917 Patent, col. 6:7-9), suggesting it is an added benefit included with the primary paid service. The accused product's on-chair instruction, "Charge phone here while chair is in use" (Compl. ¶24), may support this view.
Intrinsic Evidence for a Narrower Interpretation: A defendant could argue that because the charging feature is unavailable without payment, it is not free or "complimentary" but is rather a bundled component of the purchased massage service, with its cost incorporated into the price.

VI. Other Allegations

Indirect Infringement

The complaint alleges inducement based on Defendant's marketing, including a tweet encouraging customers to use the chairs, and on-product instructions that guide users to perform the allegedly infringing act of charging a device during a massage (Compl. ¶25-26, ¶40). The complaint also pleads contributory infringement, alleging the chair has no substantial non-infringing uses (Compl. ¶40).

Willful Infringement

Willfulness is alleged based on Defendant’s purported knowledge of the ’917 patent prior to the suit. The complaint alleges specific instances of notice, including a meeting on May 21, 2019, between the parties where the patent was discussed, and a prior counterclaim for infringement filed on August 12, 2019 (Compl. ¶30, ¶33).

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

Procedural Viability: A threshold issue for the court will be one of procedural sufficiency: is the complaint, which bases its infringement chart on a claim that was cancelled during reexamination, legally viable? The resolution may depend on whether the complaint's other allegations provide adequate notice of infringement under the patent's post-reexamination claims.
Proof of Infringement: A key evidentiary question will be one of functional presence: can the Plaintiff provide sufficient factual proof that the accused Smarte Carte Chair incorporates the specific "discomforting mechanism" and "sensor" for detecting loitering, as required by the patent's surviving independent claim?
Scope of Willfulness: Given the detailed allegations of pre-suit notice, a central question will be one of culpability: did the Defendant's conduct after allegedly being informed of the patent and the infringement allegations rise to the level of willful infringement, which could expose it to enhanced damages?