DCT
1:18-cv-02624
Mediated Ambiance LLC v. Touchtunes Music Corp
I. Executive Summary and Procedural Information
- Parties & Counsel:- Plaintiff: Mediated Ambiance LLC (Texas)
- Defendant: TouchTunes Music Corp. (Delaware)
- Plaintiff’s Counsel: Upshaw PLLC
 
- Case Identification: 1:18-cv-02624, S.D.N.Y., 03/25/2018
- Venue Allegations: Venue is alleged to be proper based on Defendant maintaining a regular and established place of business—its corporate headquarters—within the Southern District of New York, where acts of infringement are also alleged to have occurred.
- Core Dispute: Plaintiff alleges that Defendant’s digital jukeboxes and associated mobile applications infringe four patents related to systems and methods for mediating a shared sensory experience, such as music, based on the aggregated profiles of users present in a specific location.
- Technical Context: The technology at issue addresses the automated personalization of ambiance in shared environments (e.g., bars, restaurants) by dynamically selecting content based on the preferences of the current occupants.
- Key Procedural History: The complaint does not allege any prior litigation, inter partes review proceedings, or licensing history related to the patents-in-suit.
Case Timeline
| Date | Event | 
|---|---|
| 2012-08-11 | Earliest Priority Date for all Patents-in-Suit | 
| 2013-07-16 | U.S. Patent No. 8,489,119 Issues | 
| 2014-12-09 | U.S. Patent No. 8,909,256 Issues | 
| 2015-09-29 | U.S. Patent No. 9,148,484 Issues | 
| 2016-10-18 | U.S. Patent No. 9,473,582 Issues | 
| 2018-03-25 | Complaint Filed | 
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,489,119 - “Method and Apparatus for Mediating Among a Plurality of Profiles Associated with Users Positioned in a Shared Location,” issued July 16, 2013.
The Invention Explained
- Problem Addressed: The patent’s background section identifies the challenge of selecting digital content (like music) in public or semi-public spaces where many people are present. It contrasts the static nature of traditional operator-selected content (e.g., old jukeboxes) with the highly personalized but solitary experience of modern portable media devices, highlighting a gap in providing a collectively enjoyable shared experience ('119 Patent, col. 1:15-41, 1:42-54).
- The Patented Solution: The invention proposes a system that automatically mediates the preferences of multiple users in a shared location to determine a collective "ambiance." The system works by receiving unique IDs from users in the area, linking each ID to a data structure containing that user's preferences, and then processing these multiple data structures through a set of predefined rules and weights to generate a single output, such as a music playlist, that reflects the group's aggregated tastes ('119 Patent, Abstract; Fig. 2).
- Technical Importance: This technology describes a framework for creating dynamic, responsive environments that adapt in real-time to the specific audience present, shifting control from a single operator to a collective, algorithmically-managed consensus ('119 Patent, col. 1:8-12).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶19).
- The essential elements of Claim 1 include:- Receiving a first user ID associated with a location area.
- Linking the first user ID with a corresponding data structure.
- Receiving a second user ID associated with the same location area.
- Linking the second user ID with another data structure.
- Determining a mediated ambience settings data output for the location area based on the concurrent association of the users, using the data structures according to a predefined set of parameters.
- The set of parameters includes a "hierarchy" among the data structures that is associated, at least in part, with "permanence within said location area analytics."
- Generating a digital signal to communicate the ambience settings data output.
 
- The complaint reserves the right to assert other unspecified claims (Compl. ¶19).
U.S. Patent No. 8,909,256 - “Method and Apparatus for Mediating Among a Plurality of Profiles Associated with Users Positioned in a Shared Location,” issued December 9, 2014.
The Invention Explained
- Problem Addressed: The patent addresses the same technical problem as its parent '119 patent: the inflexibility of traditional shared entertainment systems in public venues and the need for a method to cater to the diverse preferences of a group of co-located individuals ('256 Patent, col. 1:24-34).
- The Patented Solution: This patent claims a system that determines an "ambiance output" for a shared location where the output is the result of a "parameter-based and weights-based mediation process." The process operates on a user's data structure in conjunction with a plurality of other data structures associated with other users in the same location ('256 Patent, Claim 1). The specification details numerous parameters that can be weighted, including user tier, popularity, and explicit preferences, to influence the final output ('256 Patent, col. 11:15-65; Fig. 3).
- Technical Importance: The invention provides a specific computational model for achieving a mediated environmental experience, defining the selection process as a formal, weighted negotiation between competing user profiles ('256 Patent, Claim 1).
Key Claims at a Glance
- The complaint asserts independent Claim 1 (Compl. ¶30).
- The essential elements of Claim 1 include:- Receiving at least one user ID indicia indicating a user's presence at a location area.
- Associating the user ID indicia with a user data structure containing data pertaining to the user, among a plurality of such data structures.
- Determining an ambiance output for the location area, wherein the output is the result of a "parameter-based and weights-based mediation process" between the user's data structure and the plurality of other data structures.
 
- The complaint reserves the right to assert other unspecified claims (Compl. ¶30).
Multi-Patent Capsule
U.S. Patent No. 9,473,582 - “Method, System, and Apparatus for Providing a Mediated Sensory Experience to Users Positioned in a Shared Location,” issued October 18, 2016.
- Technology Synopsis: This patent claims a method for providing a mediated experience by using a location-aware mobile application to associate a user ID with a shared location. The system facilitates the streaming of a particular "adaptation" (e.g., a version of a media work) from a collection of digital segments, where the user's data structure is associated with a payment account and indicia of prior associations with digital content (’582 Patent, Claim 1).
- Asserted Claims: Claim 1 (Compl. ¶41).
- Accused Features: The "TouchTunes Jukeboxes and/or TouchTunes Apps, and/or other products and/or associated computer-based services" are accused of infringement (Compl. ¶40).
U.S. Patent No. 9,148,484 - “Method, System, and Apparatus for Providing a Mediated Sensory Experience to Users Positioned in a Shared Location,” issued September 29, 2015.
- Technology Synopsis: This patent describes a system for providing a mediated playlist of songs at a public premises. It claims a process of facilitating, at a location-based an operator set of parameters, the streaming of a playlist from a collection of songs, where the playlist is associated with at least two users present at the premises (’484 Patent, Claim 1). The process involves facilitating an association between the users and the song collection based on a "locus based criterion" and a "predetermined music based criterion" (’484 Patent, Claim 1).
- Asserted Claims: Claim 1 (Compl. ¶52).
- Accused Features: The "TouchTunes Jukeboxes and/or TouchTunes Apps, and/or other products and/or associated computer-based services" are accused of infringement (Compl. ¶51).
III. The Accused Instrumentality
Product Identification
- The accused instrumentalities are Defendant’s "TouchTunes Jukeboxes," including the "Playdium" line of products, and the associated "TouchTunes" mobile applications ("TouchTunes Apps") available on the Apple iTunes App Store and Google Play store (Compl. ¶¶5, 7).
Functionality and Market Context
- The complaint alleges that the jukeboxes and mobile apps operate as an integrated system to provide music services to consumers in venues like bars (Compl. ¶¶6-7). Users can utilize the TouchTunes App to sign in with a user ID, "check in" at a location where a jukebox is installed, and play songs on the jukebox from personal or establishment playlists (Compl. ¶8). The system allows users to create personalized playlists that "coordinate the consumer's preferences with the ambience of the establishment" (Compl. ¶8). The app also stores user profile and payment information (Compl. ¶7).
IV. Analysis of Infringement Allegations
No probative visual evidence provided in complaint.
The complaint alleges infringement in a conclusory manner, stating that the accused products infringe "each and every limitation" of the asserted claims without providing a detailed, element-by-element mapping (Compl. ¶¶19, 30, 41, 52). The following charts are based on the product descriptions provided in the complaint.
’119 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation | 
|---|---|---|---|
| receiving a first user ID associated with a location area at a receiving apparatus; | The TouchTunes App allows a user to sign in with their user ID and "check in and/or auto-check-in at a nearby establishment." | ¶8 | col. 5:54-57 | 
| linking said first user ID with a data structure coupled with said first user ID; | The TouchTunes App enables users to create a "personalized home screen including playlists of music that coordinate the consumer's preferences," implying a data structure linked to the user ID. | ¶8 | col. 10:15-20 | 
| receiving a second user ID associated with the same said location area... [and] linking said second user ID with another data structure | The system is used by multiple "bar patrons" in a shared establishment, each of whom can use the app with their own user ID and profile. | ¶¶5-8 | col. 5:58-62 | 
| determining... a mediated ambience settings data output... using said data structures according to a predefined set of parameters... | The system plays music for all patrons from user playlists and other sources, suggesting a process to mediate between multiple users' inputs to determine the final music output. | ¶8 | col. 6:4-9 | 
| wherein said set of parameters includes a hierarchy among said data structures parameter associated, at least in part, with permanence within said location area analytics; | The complaint does not provide sufficient detail for analysis of this element. | col. 8:49-56 | |
| generating a digital signal for communicating at least part of said mediated ambience settings data output. | The TouchTunes App works together with the TouchTunes Jukebox to play music, which requires communication between the app and the jukebox. | ¶7 | col. 3:9-11 | 
- Identified Points of Contention:- Technical & Evidentiary Question: The complaint does not allege any facts demonstrating that the accused system employs a "hierarchy" based on "permanence within said location area analytics." A central dispute will be whether Plaintiff can prove through discovery that the TouchTunes song selection algorithm considers factors like the duration of a user's presence or their visit frequency, as required by this limitation.
- Scope Question: A key question for the court will be how to construe "mediated ambience settings data output." The defense may argue this requires a complex, multi-factor compromise, while the complaint's allegations could be read to cover a simpler song queuing mechanism.
 
’256 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation | 
|---|---|---|---|
| receiving at least one user ID indicia indicating presence of a user associated with said at least one user ID indicia at a location area; | The TouchTunes App allows users to "check in and/or auto-check-in at a nearby establishment," which indicates the user's presence. | ¶8 | col. 9:54-58 | 
| associating said at least one user ID indicia with a user data structure containing data pertaining to said user...; | The app allows users to create personalized playlists and has access to user profile information, which constitutes a user data structure. | ¶¶7-8 | col. 10:15-20 | 
| determining an ambiance output for said location area wherein said ambiance output is the result of a parameter-based and weights-based mediation process... | The complaint does not provide sufficient detail for analysis of a specific "parameter-based and weights-based mediation process." It alleges only that the system plays music based on user preferences and playlists. | ¶8 | col. 4:21-25 | 
- Identified Points of Contention:- Technical & Evidentiary Question: The critical point of failure or success for the infringement claim will be proving the existence of a "parameter-based and weights-based mediation process." The complaint offers no facts on how the accused system weighs different user preferences or applies parameters. This functionality will need to be established entirely through discovery.
 
V. Key Claim Terms for Construction
Term: "permanence within said location area analytics" (’119 Patent, Claim 1)
- Context and Importance: This term is a specific and potentially limiting feature of the "hierarchy" required by Claim 1 of the ’119 Patent. The infringement case hinges on whether the accused system's method for prioritizing users considers metrics related to their recurring or prolonged presence.
- Intrinsic Evidence for a Broader Interpretation: The specification suggests this can include "patterns and recurrences," such as a user being present on "certain days of the week or time windows," which could support a broad reading covering various forms of loyalty or habit tracking ('119 Patent, col. 8:52-56; col. 11:44-49).
- Intrinsic Evidence for a Narrower Interpretation: The defense may argue the term requires more than a simple counter, pointing to the patent's use of the term "analytics" to imply a specific computational analysis of presence data. The specification discusses how "analytics of the duration data... may promote certain users as regulars," suggesting a formal process is required ('119 Patent, col. 8:65-67).
Term: "parameter-based and weights-based mediation process" (’256 Patent, Claim 1)
- Context and Importance: This term defines the core algorithmic function of the invention claimed in the ’256 Patent. The entire infringement analysis for this patent will likely turn on whether the accused system’s song selection logic can be characterized as performing this specific type of process.
- Intrinsic Evidence for a Broader Interpretation: The specification describes the outcome as a "weighted compromise between all the possible preferences" and lists a wide variety of potential parameters (e.g., User Tier, popularity, paying status), suggesting any system that algorithmically balances multiple weighted factors could fall within the scope ('256 Patent, col. 6:1-5; Fig. 3).
- Intrinsic Evidence for a Narrower Interpretation: A defendant may argue that a simple first-in, first-out queue or a round-robin selection method does not meet the definition. They could argue the term requires a complex, multi-factor calculation as exemplified by the specification's discussion of combining a "User Set of Parameters" with an "Operator Set of Parameters" using one or more algorithms ('256 Patent, col. 7:10-21).
VI. Other Allegations
Indirect Infringement
- The complaint includes counts for indirect infringement for all four patents, alleging inducement "on information and belief, to be confirmed through the discovery process" (Compl. ¶¶22, 33, 44, 55). The complaint does not plead specific facts to support the knowledge and intent elements of inducement, such as references to user manuals, advertisements, or other instructions directing infringing use.
Willful Infringement
- While the complaint does not explicitly use the word "willful," the prayer for relief requests "enhanced damages, including Plaintiff's attorneys' fees... pursuant to 35 U.S.C. §285" (Compl. ¶57.J). However, the body of the complaint does not contain factual allegations that would typically support such a request, such as pre-suit knowledge of the patents or egregious conduct.
VII. Analyst’s Conclusion: Key Questions for the Case
- A primary evidentiary question will be one of algorithmic proof: Can Plaintiff, through discovery, uncover evidence that the TouchTunes system employs the specific computational methods required by the claims, such as a "hierarchy... associated... with permanence" ('119 Patent) or a "parameter-based and weights-based mediation process" ('256 Patent)? The complaint's conclusory allegations place the entire burden of demonstrating this complex, non-obvious functionality on the discovery process.
- A central legal and factual question will be one of operational reality versus claim language: Does the accused system's method for selecting songs—whatever it may be—rise to the level of complexity described and claimed in the patents-in-suit? The case will likely involve a battle of expert testimony over whether a commercial jukebox queuing system performs the specific, multi-layered "mediation" and "hierarchical" analysis at the core of the patented inventions.