DCT
2:23-cv-00251
Tiare Technology Inc v. H E Butt Grocery Co
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Tiare Technology, Inc. (Delaware)
- Defendant: H. E. Butt Grocery Company (Texas)
- Plaintiff’s Counsel: The Davis Firm, PC
- Case Identification: 2:23-cv-00251, E.D. Tex., 05/30/2023
- Venue Allegations: Plaintiff alleges venue is proper because Defendant operates multiple regular and established places of business within the Eastern District of Texas and distributes its accused mobile ordering application to users in the district.
- Core Dispute: Plaintiff alleges that Defendant’s mobile application for grocery ordering and curbside pickup infringes patents related to mobile ordering systems that incorporate location-tracking features.
- Technical Context: The technology concerns systems that allow a patron to place an order via a mobile device and then track that device’s location to facilitate timely service or order fulfillment.
- Key Procedural History: The complaint notes that the asserted patent family underwent extensive examination at the U.S. Patent and Trademark Office, where patent eligibility rejections under 35 U.S.C. § 101 were raised and ultimately overcome after claim amendments. The complaint also references a prior case ([Tiare Technology, Inc.](https://ai-lab.exparte.com/party/tiare-technology-inc) v. Whataburger Restaurants LLC), stating the same court previously denied challenges to the eligibility of the asserted patent claims.
Case Timeline
| Date | Event |
|---|---|
| 2002-09-23 | Earliest Priority Date for ’729, ’414, and ’224 Patents |
| 2014-03-25 | ’729 Patent Issued |
| 2017-12-29 | Patent Office Rejects Claims of Future ’414 Patent under § 101 |
| 2018-10-31 | Patent Office Issues Notice of Allowance for ’414 Patent |
| 2018-12-18 | ’414 Patent Issued |
| 2020-04-29 | Patent Office Rejects Initial Claims of Future ’224 Patent under § 101 |
| 2020-11-16 | Patent Office Withdraws § 101 Rejections for ’224 Patent After Amendments |
| 2021-12-07 | ’224 Patent Issued |
| 2023-05-30 | Complaint Filed |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 8,682,729 - "Patron Service System and Method" (Issued Mar. 25, 2014)
The Invention Explained
- Problem Addressed: The patent’s background section describes the drawbacks of conventional ordering systems in venues like resorts. Centrally-located kiosks required patrons to leave their seats, and handheld systems used by staff did not allow patrons to place orders themselves and presented challenges in locating the patron for delivery (Compl. ¶¶ 33-35; ’729 Patent, col. 2:21-60).
- The Patented Solution: The invention provides a method of using a "wireless patron unit" (e.g., a mobile device) within a venue. A patron is provided with the unit, which connects to a server and has a "venue specific application program." The patron can enter an order, and the system determines the unit's current location, updates the order status, and updates the location as the patron moves, facilitating fulfillment (Compl. ¶36; ’729 Patent, Abstract).
- Technical Importance: The invention is presented as a technical improvement over fixed-kiosk or staff-only mobile point-of-sale systems by integrating patron-initiated mobile ordering with location-tracking capabilities (Compl. ¶36).
Key Claims at a Glance
- The complaint asserts infringement of at least independent claim 1 (Compl. ¶57).
- Claim 1 recites a method with the following essential elements:
- Providing at least one patron with a wireless patron unit (either venue-owned or through a downloadable venue-specific application).
- Connecting the wireless patron unit to a server.
- Entering a patron order for an item or service into the unit.
- Determining a current location of the unit.
- Updating a status of the patron order, and the current location of the unit when the patron moves to a different location, on the wireless patron unit.
- Displaying the patron order on the unit’s display.
U.S. Patent No. 10,157,414 - "Patron Service System and Method" (Issued Dec. 18, 2018)
The Invention Explained
- Problem Addressed: As a continuation in the same family, the ’414 Patent addresses the same problems as the ’729 Patent: the inconvenience and inefficiency of prior ordering systems that could not effectively link a patron's order with their real-time location within a service area (’414 Patent, col. 1:22-2:62).
- The Patented Solution: The patent describes a computer-implemented method performed by one or more processors (e.g., a server system). The system provides a venue-specific application to a mobile device, authenticates the user, and then receives location information from the device. It determines the device's location, maps it to a region associated with the venue, receives an order, and then determines updated locations based on new information from the device (’414 Patent, Abstract).
- Technical Importance: The claimed solution provides a centralized, real-time location tracking system for distributed mobile devices to solve the specific technical problem of order fulfillment in a dynamic environment (Compl. ¶¶ 37-39).
Key Claims at a Glance
- The complaint asserts infringement of at least independent claim 8 (Compl. ¶76).
- Claim 8 recites a computer-implemented method with the following essential elements:
- Providing a venue-specific application to a mobile computing device over a wireless channel.
- Communicating with the device to authenticate a user based on a security protocol.
- Receiving location information from the device.
- Determining a location of the device at a first time.
- Mapping the location to a region that is associated with a venue.
- Receiving order information 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.
- The complaint does not explicitly reserve the right to assert dependent claims for the lead patents.
Multi-Patent Capsule
- Patent Identification: U.S. Patent No. 11,195,224, "Patron Service System and Method," issued Dec. 7, 2021.
- Technology Synopsis: The ’224 Patent claims a system for locating electronic devices. The system provides a venue-specific application to multiple mobile devices, receives and determines their locations, and upon receiving an order from one device, sends its updated location to a computing system associated with the venue for display in a graphical user interface (’224 Patent, Abstract).
- Asserted Claims: Independent claim 10 (Compl. ¶96).
- Accused Features: The complaint alleges that Defendant’s system for providing its mobile application, which includes functionality for mobile ordering and location tracking, infringes the ’224 Patent (Compl. ¶¶ 102-104).
III. The Accused Instrumentality
- Product Identification: The accused instrumentality is Defendant H. E. Butt Grocery Company’s mobile-ordering solution, specifically its mobile application (Compl. ¶50, ¶3 fn. 1).
- Functionality and Market Context: The application is described as "venue-specific," with its functionality associated with the Defendant's store-chain (Compl. ¶51). It allows users to order items for pickup and tracks the user's smartphone location to facilitate "Curbside Pickup" (Compl. ¶52). The complaint includes a screenshot from the application stating, "Your location will be used to update our Curbside team so your groceries will be packed and ready, waiting for you when you arrive!" (Compl. p. 16). This functionality is alleged to determine a user's current location and update it as the device approaches the store (Compl. ¶¶ 52-53). Additional screenshots show the application's interface for browsing items and proceeding to checkout (Compl. p. 15).
IV. Analysis of Infringement Allegations
U.S. Patent No. 8,682,729 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| a method of using a wireless patron unit ... within a venue or within the vicinity of the venue | Defendant performs a method using a smartphone or tablet within or near its stores (Compl. ¶64). | ¶64 | col. 2:63-65 |
| providing at least one patron with a wireless patron unit ... by providing at least one venue specific application program to the at least one patron for downloading into a patron-owned wireless communication device | Defendant provides its mobile application for download onto patron-owned smartphones (Compl. ¶66). | ¶66 | col. 3:1-18 |
| connecting the wireless patron unit to a server enabling communication between the wireless patron unit and the server | Defendant's application connects the user's smartphone to a server via a Wi-Fi or cellular connection (Compl. ¶67). | ¶67 | col. 6:11-17 |
| 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 for items from the store's menu into the application on their smartphone (Compl. ¶68). | ¶68 | col. 3:30-32 |
| determining a current location of the wireless patron unit | Defendant determines the location of the user’s smartphone through the application (Compl. ¶69). | ¶69 | col. 10:1-3 |
| updating a status of the patron order, and the current location of the wireless patron unit when the patron moves to a different location, on the wireless patron unit | Defendant updates the order status (e.g., placed, in progress) and tracks the user's location as they move toward the store (Compl. ¶¶ 71-73). | ¶¶71-73 | col. 4:57-62 |
| displaying the patron order on a display of the wireless patron unit | Defendant displays the order details on the screen of the user’s smartphone (Compl. ¶74). | ¶74 | col. 4:26-32 |
- Identified Points of Contention:
- Scope Questions: The patent specification frequently describes the "venue" in the context of a resort, pool, or beach. A potential question is whether the claim term "venue" and the phrase "within the vicinity of the venue" can be construed to cover a grocery store and the public roadways a customer uses to approach it.
- Technical Questions: What evidence does the complaint provide that the accused system performs the specific step of "updating... the current location of the wireless patron unit when the patron moves to a different location, on the wireless patron unit" as required by the claim language, as opposed to merely updating the location on a back-end server?
U.S. Patent No. 10,157,414 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 its venue-specific mobile application over cellular or WiFi networks (Compl. ¶84). | ¶84 | col. 26:40-44 |
| communicating... with the mobile computing device... to authenticate, based on a security protocol, a user | Defendant's system authenticates a user via a login and password and secures financial information (Compl. ¶¶ 85-87). | ¶¶85-87 | col. 26:45-50 |
| receiving, by the one or more processors, location information from the mobile computing device | Defendant’s processors receive location information from the user's device via its location services (Compl. ¶88). | ¶88 | col. 26:51-52 |
| determining, by the one or more processors, a location of the mobile computing device at a first time based on the location information | Based on the received information, Defendant's processors determine the smartphone's location (Compl. ¶90). | ¶90 | col. 26:53-55 |
| mapping, by the one or more processors, the location to a region that is associated with a venue | Defendant maps the location to a region associated with a nearby store or group of stores (Compl. ¶91). | ¶91 | col. 26:56-58 |
| receiving, from the mobile computing device, order information for the venue | Defendant receives order information from a user's input indicating a service request through the application (Compl. ¶92). | ¶92 | col. 26:59-62 |
| receiving, by the one or more processors, updated location information from the mobile computing device | Defendant’s processors receive updated location information as the user’s device approaches the store (Compl. ¶93). | ¶93 | col. 26:63-64 |
| determining, by the one or more processors, an updated location of the mobile computing device at a second time based on the updated location information | Defendant's processors determine updated locations of the smartphone at multiple points after receiving the updated data (Compl. ¶94). | ¶94 | col. 26:65-27:2 |
- Identified Points of Contention:
- Scope Questions: What constitutes "mapping the location to a region that is associated with a venue"? The analysis may question whether simply using GPS coordinates to calculate an estimated time of arrival meets this specific claim limitation, or if the patent requires a more defined process of associating coordinates with pre-defined zones.
- Technical Questions: The complaint asserts that Defendant "maps... the location to a region that is associated with a store or a group of stores" (Compl. ¶91). The technical evidence needed to prove this specific server-side data processing step, beyond merely receiving location data, will be a central issue.
V. Key Claim Terms for Construction
The Term: "venue-specific application" (from ’414 Patent, claim 8 and other asserted claims)
Context and Importance: This term was added during prosecution to overcome a § 101 rejection, making its construction critical to both infringement and validity (Compl. ¶¶ 47-48). The dispute may focus on whether an application that functions for an entire chain of stores (e.g., any H-E-B location) is "specific" to a "venue," or if the term requires an application tailored to a single, discrete location as described in many of the patent's embodiments.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes the system being suitable for "various other venues including, but not limited to, stadiums, arenas, retail locations" (’414 Patent, col. 4:5-8), which suggests the term is not limited to a single resort. An application for a chain of retail locations could fall within this scope.
- Evidence for a Narrower Interpretation: The detailed description repeatedly frames the invention in the context of a single "resort" with distinct areas like a "pool, beach, spa, deck, lounge" (’414 Patent, col. 4:20-22). This could support an argument that the "venue" is a single, contiguous property and the application must be specific to it.
The Term: "mapping... the location to a region that is associated with a venue" (from ’414 Patent, claim 8)
Context and Importance: This term describes a specific data processing step that distinguishes the claimed invention from merely receiving and using raw location data. Its construction will be central to determining if the accused system performs the claimed method. Practitioners may focus on this term because it appears to require an active step of categorization or association rather than a passive use of coordinates.
Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The patent does not explicitly define "mapping" or "region," which may allow for a broad interpretation where any server-side process that associates incoming GPS data with a general service area (e.g., "within 5 miles of store X") meets the limitation.
- Evidence for a Narrower Interpretation: The patent's figures and description of staff units displaying patron locations on a map of the venue (e.g., a map of a pool area showing patron locations) suggest that "mapping to a region" could imply a more granular process of plotting a coordinate onto a defined, graphical map with discrete zones (’414 Patent, Fig. 10; col. 19:51-57).
VI. Other Allegations
- Indirect Infringement: The complaint alleges active inducement of infringement for all three patents. The basis for this allegation is that Defendant supplies the accused application to consumers through app stores and provides instructions and encouragement for users to operate the application in an infringing manner (Compl. ¶¶ 61, 80, 100).
- Willful Infringement: Willfulness is alleged for all three patents. The complaint bases this on Defendant's alleged knowledge of the patents and its infringement from at least the date of the filing and service of the complaint, suggesting a theory of post-suit willfulness (Compl. ¶¶ 62, 81, 101).
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 descriptions of hospitality settings like resorts and pools, be construed to encompass a distributed network of retail grocery stores and the public roads customers use for curbside pickup?
- A second key issue will be one of technical operation and patent eligibility: the patentability of the claims was secured during prosecution by adding limitations like "venue-specific application" and "mapping the location to a region." A central question for the court will be whether the accused system's use of standard smartphone location services to estimate an arrival time performs the specific, multi-step data processing required by the claims, or if it represents a conventional application of technology that could invite renewed challenges under 35 U.S.C. § 101.