DCT

2:17-cv-00204

Soverain IP LLC v. Microsoft Corp

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Key Events
Amended Complaint

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:17-cv-00204, E.D. Tex., 06/28/2017
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendants operate physical Wal-Mart stores within the district that constitute regular and established places of business and are used to market, sell, and distribute products ordered through the accused Walmart.com website.
  • Core Dispute: Plaintiff alleges that Defendant’s Walmart.com website and associated e-commerce infrastructure infringe three patents related to data extraction from networked sources, user session management, and web access request tracking.
  • Technical Context: The patents address foundational e-commerce technologies developed in the 1990s for managing user interactions on stateless networks and integrating dynamic web-based data into other applications.
  • Key Procedural History: The patents-in-suit originated with Open Market, Inc., an early internet commerce company. The complaint notes that two of the asserted patents, U.S. Patent Nos. 7,191,447 and 5,708,780, previously had their claims confirmed as patentable in reexamination proceedings. Additionally, U.S. Patent No. 5,708,780 was the subject of a claim construction (Markman) order in prior litigation in the Eastern District of Texas, which construed several means-plus-function terms. The complaint also notes that Amazon.com previously paid $40 million to license Soverain's patents.

Case Timeline

Date Event
1995-06-07 U.S. Patent No. 5,708,780 – Priority Date
1995-10-25 U.S. Patent No. 7,191,447 – Priority Date
1998-01-13 U.S. Patent No. 5,708,780 – Issue Date
2000-04-12 U.S. Patent No. 8,606,900 – Priority Date
2000-08-25 U.S. Patent No. 7,191,447 – Filing Date
2006-04-04 U.S. Patent No. 5,708,780 – Reexamination Certificate Issued
2007-03-13 U.S. Patent No. 7,191,447 – Issue Date
2012-10-05 U.S. Patent No. 7,191,447 – Reexamination Certificate Issued
2013-12-10 U.S. Patent No. 8,606,900 – Issue Date
2017-04-14 Complaint alleges Wal-Mart had knowledge of patents from prior lawsuit
2017-06-28 Complaint Filing Date

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

U.S. Patent No. 7,191,447 - "Managing Transfer of Information in a Communications Network"

(“the ’447 patent”), issued March 13, 2007 (Compl. ¶75).

The Invention Explained

  • Problem Addressed: The patent describes challenges in extracting specific data from network-based sources (e.g., web pages) for use in other applications, a process that was not streamlined in the early internet era and often required manual intervention (Compl. ¶24).
  • The Patented Solution: The invention discloses a system where an "object embedding program" (e.g., a spreadsheet) contains a link to network-based information (e.g., a financial data webpage) and another link to a "script program." This program is structured to automatically locate the script, apply it to the network information to extract specific data (like a stock price), and embed that data into the compound document, allowing for dynamic updates (’447 Patent, col. 4:51-67, Fig. 6; Compl. ¶78).
  • Technical Importance: This technology provided a method for automating the integration of live, dynamic data from the web into local computer applications, improving efficiency and data accuracy (Compl. ¶101).

Key Claims at a Glance

  • The complaint asserts at least claim 5, which depends on independent claim 1 (Compl. ¶114).
  • Independent Claim 1: A system for extracting data from sources of network-based information, comprising:
    • A script program implemented on a computer, structured to extract data from network-based information provided by a network server.
    • An object embedding program implemented on the computer, comprising a link to the network-based information and a link from which the program can locate the script.
    • The object embedding program is structured to apply the script to the network-based information to extract the data and embed it within a compound document.

U.S. Patent No. 8,606,900 - "Method and System for Counting Web Access Requests"

(“the ’900 patent”), issued December 10, 2013 (Compl., U.S. PATENT NO. 8,606,900 heading).

The Invention Explained

  • Problem Addressed: The patent addresses the challenge of tracking user activity and counting unique web page views in a "stateless" network environment like the internet, where each user request is typically treated as an independent event without inherent memory of prior interactions from the same user (Compl. ¶85).
  • The Patented Solution: The invention describes a method where a web server generates a unique "session identification" for a client computer. This identifier is appended to the client's service requests (e.g., URL requests), allowing the server to recognize a series of inquiries from the same client as a single "session" and to track user activity across multiple pages. The system can then count requests for specific pages while excluding repeated requests from the same client (’900 Patent, Abstract; Compl. ¶80).
  • Technical Importance: This session-tracking technology is a foundational element of modern e-commerce, enabling persistent user states for features like shopping carts, user logins, and web analytics (Compl. ¶¶85-86).

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 and dependent claim 5 (Compl. ¶140).
  • Independent Claim 1: A method of tracking web page requests received at a web server, comprising:
    • Generating a plurality of session identifiers at the web server, each associated with a particular client.
    • Storing the session identifiers at the clients' web browsers.
    • Receiving web page requests at the server, where each request includes a session identifier.
    • Storing information at the server regarding the requests, including the requested page and the session identifier.
    • Tracking the requests by counting the number for particular web pages, exclusive of repeated requests from a particular client.

U.S. Patent No. 5,708,780 - "Internet Server Access Control and Monitoring"

(“the ’780 patent”), issued January 13, 1998 (Compl. ¶82).

Technology Synopsis

The ’780 patent, a parent to the technology in the ’900 patent, describes methods for controlling and monitoring access to network servers. It discloses using a "session identifier" to recognize a series of requests from the same client during an online session, thereby controlling access to information without requiring repeated authentication on a stateless network (Compl. ¶¶ 85, 96).

Asserted Claims

Independent claims 22, 23, 32, 33, and 112, among others (Compl. ¶176).

Accused Features

The complaint alleges that the Walmart.com system uses "Visitor_ID" session identifiers appended to URLs to process service requests, track users as they navigate the site, and control access to network resources (Compl. ¶¶ 152-153).

III. The Accused Instrumentality

Product Identification

The accused instrumentalities are the Walmart.com webpage, associated servers, and computer equipment and software that enable its e-commerce operations (collectively, the "Wal-Mart Products") (Compl. ¶¶ 99, 123, 149).

Functionality and Market Context

The complaint alleges the accused instrumentality functions as a comprehensive e-commerce platform. For the ’447 patent, it is alleged that Walmart.com pages contain scripts that extract network-based information (e.g., an image from a content delivery network server) and propagate it to the HTML page loaded on the client's browser (Compl. ¶101). A screenshot in the complaint shows an "" tag sourcing an image from an "i5.wal.co" server (Compl. p. 36). For the ’900 and ’780 patents, the system is alleged to generate and use a 22-character "visitor_id" session identifier that is appended to URLs to track user requests (Compl. ¶¶ 126, 152). A network inspection report screenshot shows this "visitor_id" as part of a URL query string (Compl. p. 43). This identifier is allegedly associated with cookies stored on the user's computer, allowing for persistent tracking (Compl. ¶¶ 127, 133). The complaint asserts this functionality is integral to creating a "seamless shopping experience" and leveraging in-store pickup capabilities (Compl. ¶¶ 37, 58).

IV. Analysis of Infringement Allegations

’447 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
a script program... structured to extract data from network-based information provided by one of said network servers Walmart.com loads script programs (e.g., "fqpolia.js") in a user's browser that are structured to extract data, such as images or content, from network servers. ¶106 col. 4:58-62
an object embedding program... comprising a link to said network-based information... and a link from which said object embedding program can locate said script program The Walmart.com webpage acts as the object embedding program. An "" tag contains a link to network-based information (the image), and "