DCT
2:22-cv-00045
Tiare Technology Inc v. El Pollo LoCo Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Tiare Technology, Inc. (Delaware)
- Defendant: El Pollo LoCo, Inc. and El Pollo LoCo Holdings, Inc. (Delaware)
- Plaintiff’s Counsel: The Davis Firm, PC
- Case Identification: 2:22-cv-00045, E.D. Tex., 02/09/2022
- Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant operates regular and established places of business within the District, distributes its mobile application to users in the District, and derives revenue from infringing activities within the District.
- Core Dispute: Plaintiff alleges that Defendant’s mobile ordering application infringes patents related to systems and methods for providing services to patrons using location-aware wireless devices.
- Technical Context: The technology concerns mobile e-commerce platforms for the restaurant and service industry, a market that has seen significant growth, particularly for order-ahead and curbside pickup functionalities.
- Key Procedural History: The complaint notes an extensive prosecution history for the patent family, alleging that the U.S. Patent & Trademark Office considered and ultimately overcame patent eligibility rejections under 35 U.S.C. § 101 and the Supreme Court’s Alice framework for the applications that led to the ’414 and ’224 patents.
Case Timeline
| Date | Event |
|---|---|
| 2002-09-23 | Earliest Priority Date for ’729, ’414, and ’224 Patents |
| 2014-03-25 | ’729 Patent Issued |
| 2018-12-18 | ’414 Patent Issued |
| 2021-12-07 | ’224 Patent Issued |
| 2022-02-09 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,682,729 - "Patron Service System and Method"
- Issued: March 25, 2014
The Invention Explained
- Problem Addressed: The patent’s background section describes inefficiencies in service environments like resorts, where patrons wishing to place an order faced difficulties in finding staff members, and staff members faced challenges in locating patrons for delivery, particularly if the patron moved after placing an order. Conventional solutions like centrally-located kiosks or staff-operated handheld terminals did not fully solve these problems. (’729 Patent, col. 1:41-2:57).
- The Patented Solution: The invention provides a method using a "wireless patron unit" (e.g., a smartphone with a specific application) that connects to a server, allowing a patron to place an order directly from their location. The system determines the patron unit's location and updates it if the patron moves, thereby facilitating order fulfillment and improving service efficiency. (’729 Patent, Abstract; col. 3:1-16).
- Technical Importance: This approach provided a technical solution to the logistical problem of order management and fulfillment in large, dynamic service venues by integrating patron-initiated ordering with location tracking on a portable device. (Compl. ¶34).
Key Claims at a Glance
- The complaint asserts independent claim 1. (Compl. ¶54).
- Essential elements of Claim 1 include:
- A method of using a wireless patron unit within a venue.
- Providing at least one patron with a wireless patron unit, including by providing a venue-specific application for downloading into a patron-owned device.
- Connecting the wireless patron unit to a server.
- Entering a patron order for an item or service into the wireless patron unit.
- Determining a current location of the wireless patron unit.
- Updating a status of the patron order, and the current location of the wireless patron unit when the patron moves to a different location.
- Displaying the patron order on a display of the wireless patron unit.
U.S. Patent No. 10,157,414 - "Patron Service System and Method"
- Issued: December 18, 2018
The Invention Explained
- Problem Addressed: The patent addresses the same technical problems as the ’729 Patent: conventional kiosk and point-of-sale systems were inconvenient for patrons and lacked the technical capability to track a patron's location for service delivery. (’414 Patent, col. 2:22-57).
- The Patented Solution: The invention claims a computer-implemented method executed by a server system. The server provides a venue-specific application to a mobile device, authenticates the user, and then receives location information from the device at a first time. The server maps this location to a venue-associated region, receives an order, and subsequently receives updated location information at a second time to track the device's movement. (’414 Patent, Claim 8).
- Technical Importance: The invention is framed as a technical solution for the centralized, real-time tracking of distributed mobile devices to enable service fulfillment, which the complaint characterizes as an unconventional use of technology at the time of its development. (Compl. ¶36).
Key Claims at a Glance
- The complaint asserts independent claim 8. (Compl. ¶74).
- Essential elements of Claim 8 include:
- A computer-implemented method executed by one or more processors.
- Providing a venue-specific application to a mobile computing device over a wireless channel.
- Communicating with the device to authenticate a user of the application.
- Receiving location information from the mobile device.
- Determining a location of the device at a first time.
- Mapping the location to a region associated with a venue.
- Receiving order information for the venue from the device.
- Receiving updated location information from the device.
- Determining an updated location of the device at a second time based on the updated information.
U.S. Patent No. 11,195,224 - "Patron Service System and Method"
- Issued: December 7, 2021
Technology Synopsis
This patent describes a system for locating a plurality of mobile electronic devices. The system provides a venue-specific application to the devices, receives first and second location signals from them to determine their locations at different times, and, in response to receiving order information from one device, sends data indicating its updated location to a computing system associated with the venue for display in a graphical user interface. (’224 Patent, Claim 10).
Asserted Claims
- Independent claim 10. (Compl. ¶95).
Accused Features
- The complaint alleges that the El Pollo Loco system infringes by providing its venue-specific application to multiple users' devices, receiving location information from these devices, determining their locations, receiving orders, and sending updated location data to a venue-associated system to facilitate curbside pickup. (Compl. ¶¶102-113).
III. The Accused Instrumentality
Product Identification
- The "Accused Products" are identified as the El Pollo Loco mobile application, including the devices on which the application runs. (Compl. ¶3 n.1).
Functionality and Market Context
- The El Pollo Loco application is a "venue-specific application" for its chain of restaurants, allowing users to select a store location, browse the menu, choose an order type (pickup, curbside, delivery), and place an order. (Compl. ¶¶48-49). The complaint provides a screenshot showing the application's user interface for selecting a location and order type. (Compl. p. 14).
- A key accused functionality is the application's use of the mobile device's location services to find nearby restaurants and to facilitate curbside pickup by "letting us know when you arrive to the restaurant." (Compl. ¶50). A series of screenshots in the complaint depicts the location permission request, justifying the need for location access to fulfill curbside orders. (Compl. p. 15).
- The complaint alleges the application is among the top Food & Drink applications in major app stores and is used for a significant volume of mobile orders. (Compl. ¶52).
IV. Analysis of Infringement Allegations
’729 Patent Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| providing at least one patron with a wireless patron unit... by providing at least one venue specific application program... for downloading into a patron-owned wireless communication device... | Defendant provides the El Pollo Loco application for download onto patron-owned smartphones via app stores. | ¶63 | col. 3:20-25 |
| connecting the wireless patron unit to a server... | The application connects the smartphone to a server via a Wi-Fi or cellular connection to enable communication. | ¶64 | col. 6:1-3 |
| entering a patron order for at least one item or service provided by the venue into the wireless patron unit | A user enters an order by selecting menu items within the application on their smartphone. | ¶65 | col. 4:29-31 |
| determining a current location of the wireless patron unit | Defendant's system determines the smartphone's location by accessing the device's location services. | ¶66 | col. 6:31-35 |
| updating a status of the patron order, and the current location of the wireless patron unit when the patron moves to a different location... | Defendant's system allegedly updates the order status and the user's location, for example, to determine when the user arrives at the restaurant for curbside pickup. | ¶¶68-71 | col. 5:35-44 |
| displaying the patron order on a display of the wireless patron unit | The application displays the user's order for review before submission. The complaint provides a screenshot showing an order review screen. (Compl. p. 19). | ¶72 | col. 4:51-54 |
- Identified Points of Contention:
- Scope Questions: A potential point of contention may be the scope of the limitation "updating... the current location of the wireless patron unit when the patron moves." The complaint's theory appears to rest on the system's ability to know when a user arrives for curbside pickup (Compl. ¶71), which may raise the question of whether a single location update upon arrival satisfies a limitation that could be interpreted to require more dynamic tracking of movement.
- Technical Questions: The complaint alleges the system "updates a status of the patron order" (Compl. ¶69), but provides limited specific evidence on how this status is communicated to the user's device post-submission (e.g., "order being prepared," "order ready"). The nature and mechanism of this status update may be a point of factual dispute.
’414 Patent Infringement Allegations
| Claim Element (from Independent Claim 8) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| providing, over a wireless communications channel... a venue-specific application to a mobile computing device | Defendant provides the El Pollo Loco application to users' mobile devices over cellular or WiFi networks. | ¶82 | col. 26:7-9 |
| communicating... to authenticate, based on a security protocol, a user of the venue-specific application... | The system authenticates users via login and password and secures financial information for purchases. | ¶¶83-85 | col. 21:1-3 |
| receiving, by the one or more processors, location information from the mobile computing device | Defendant's processors receive location information from the device's location services. | ¶86 | col. 25:10-14 |
| determining, by the one or more processors, a location of the mobile computing device at a first time... | Based on the received data, Defendant's system determines the location of the smartphone. | ¶88 | col. 26:17-19 |
| mapping, by the one or more processors, the location to a region that is associated with a venue | Defendant's system maps the device's location to show it relative to nearby restaurant locations. A screenshot shows El Pollo Loco locations on a map interface. (Compl. p. 27). | ¶89 | col. 15:15-20 |
| receiving, from the mobile computing device, order information for the venue... | Defendant's system receives the user's order selections from the application. | ¶90 | col. 26:22-25 |
| receiving, by the one or more processors, updated location information from the mobile computing device | Defendant's system receives updated location information to determine when a user is in the vicinity of the store. | ¶91 | col. 26:26-27 |
| determining, by the one or more processors, an updated location of the mobile computing device at a second time... | The system determines an updated location as the device approaches the store for pickup. | ¶93 | col. 26:28-30 |
- Identified Points of Contention:
- Scope Questions: The construction of "mapping the location to a region that is associated with a venue" may be disputed. It raises the question of whether simply displaying a device's GPS coordinates on a map alongside venue locations meets this limitation, or if it requires the server to define and associate the coordinates with a pre-defined zone or "region."
- Technical Questions: Claim 8 is a server-side method claim requiring the server's processors to perform the "determining" steps. A potential issue is whether the server actually "determines" the location, or if the mobile device itself determines its own location using GPS and merely transmits the result to the server. This distinction between the server determining a location versus receiving a pre-determined location could be a central technical question.
V. Key Claim Terms for Construction
The Term: "venue" (’729 Patent, Claim 1; ’414 Patent, Claim 8)
Context and Importance: This term is critical because the patents’ specification heavily context-ualizes the invention within large, contiguous environments like resorts, pools, beaches, and stadiums. (’414 Patent, col. 1:20-22, 1:47-50). The accused instrumentality is a mobile application for a chain of physically separate fast-food restaurants. The dispute may turn on whether a single restaurant, or the entire distributed chain, qualifies as a "venue" as contemplated by the patents.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification includes "retail locations" and "other establishments" in its list of potential venues, which could support a construction that includes individual restaurants. (’414 Patent, col. 4:5-6; col. 3:2).
- Evidence for a Narrower Interpretation: The problem-solution narrative in the background repeatedly emphasizes the challenges of locating patrons in large, sprawling areas where they might move around, a fact pattern that may not apply to a typical quick-service restaurant with a parking lot. (’414 Patent, col. 1:41-50).
The Term: "updating... the current location of the wireless patron unit when the patron moves" (’729 Patent, Claim 1)
Context and Importance: The infringement allegation for this element relies on the application's curbside pickup feature, which identifies when a user arrives at the restaurant. (Compl. ¶¶50, 70-71). The central question is whether a single location check upon arrival constitutes "updating" the location "when the patron moves," or if the claim requires a more continuous or real-time tracking of the patron's movement toward the venue.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim does not explicitly use terms like "continuously" or "in real-time." An interpretation where any change from a previous location (e.g., home) to a new one (e.g., the restaurant) constitutes an "update" that occurs "when the patron moves" may be argued. The specification refers to finding a patron who "has relocated." (’729 Patent, col. 2:2).
- Evidence for a Narrower Interpretation: The specification describes a system where staff can locate a patron who might move from a beach chair to a pool area within the same venue. (’414 Patent, col. 6:8-11). This context may support an interpretation requiring the ability to track intra-venue movement, not just a binary arrival event.
VI. Other Allegations
- Indirect Infringement: The complaint alleges induced infringement for all asserted patents. The allegations are based on Defendant supplying the El Pollo Loco application to consumers via app stores and providing instructions and encouragement for users to operate it in an infringing manner, with Defendant allegedly knowing its actions would cause infringement. (Compl. ¶¶58, 78, 99).
- Willful Infringement: Willfulness is alleged for all asserted patents. The basis for willfulness is alleged actual knowledge of the patents and the infringement from, at the latest, the filing and service of the complaint. (Compl. ¶¶59, 79, 100).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the term "venue," rooted in the patent's context of large, self-contained service environments like resorts, be construed to cover the individual, physically separate restaurant locations of the accused quick-service restaurant chain?
- A key evidentiary question will be one of functional equivalence: does the accused application's function of detecting a user's arrival for curbside pickup satisfy the claim requirement of "updating... the current location... when the patron moves," or does the patent require a more dynamic, intra-venue tracking capability not present in the accused system?
- A central question of claim construction and technical operation will likely focus on the server-side method claims: does the accused server system actively "determine" a mobile device's location as required by the claims of the ’414 patent, or does it merely "receive" a location coordinate that has already been determined by the mobile device itself, potentially creating a mismatch with the claim language?