DCT
2:23-cv-00413
Tiare Technology Inc v. CVS Health Corp
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Tiare Technology, Inc. (Delaware)
- Defendant: CVS Health Corporation (Delaware) and CVS Pharmacy, Inc. (Rhode Island)
- Plaintiff’s Counsel: The Davis Firm, PC
- Case Identification: 2:23-cv-00413, E.D. Tex., 09/14/2023
- Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant operates multiple "regular and established places of business" (CVS stores) within the District, distributes its mobile application to users in the District, and derives revenue from these activities.
- Core Dispute: Plaintiff alleges that Defendant’s mobile application, which allows customers to order products for pickup, infringes patents related to mobile ordering systems that incorporate location-tracking features.
- Technical Context: The technology at issue resides in the field of location-based mobile commerce, specifically systems that integrate user location data with ordering and fulfillment services in a retail environment.
- Key Procedural History: The complaint highlights an extensive prosecution history for the patent family, noting that the U.S. Patent and Trademark Office considered and ultimately withdrew patent eligibility rejections under 35 U.S.C. § 101 after claim amendments. The complaint also states that a federal court in the same district previously denied a motion to dismiss challenging the eligibility of the asserted patents in separate litigation.
Case Timeline
| Date | Event |
|---|---|
| 2002-09-23 | Earliest Priority Date for Asserted Patents |
| 2014-03-25 | U.S. Patent No. 8,682,729 Issues |
| 2017-12-29 | USPTO Issues Non-Final Rejection in application for ’414 Patent |
| 2018-03-28 | Tiare Responds to Non-Final Rejection in application for ’414 Patent |
| 2018-08-28 | USPTO Issues Final Rejection in application for ’414 Patent |
| 2018-10-31 | USPTO Issues Notice of Allowance for ’414 Patent |
| 2018-12-18 | U.S. Patent No. 10,157,414 Issues |
| 2020-04-29 | USPTO Issues Non-Final Rejection in application for ’224 Patent |
| 2020-11-16 | USPTO Issues Final Rejection in application for ’224 Patent |
| 2021-12-07 | U.S. Patent No. 11,195,224 Issues |
| 2023-09-14 | Complaint Filed |
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 have difficulty placing orders and staff have difficulty locating patrons for delivery, leading to delays and dissatisfaction (Compl. ¶34; ’414 Patent, col. 1:40-2:11). Conventional solutions like centrally-located kiosks or staff-operated handheld terminals were described as inadequate because they were still inconvenient or did not solve the patron location problem (Compl. ¶¶35-36; ’414 Patent, col. 2:22-59).
- The Patented Solution: The invention proposes a system of portable wireless units for both patrons and staff, connected to a central server within a venue (Compl. ¶37; ’414 Patent, Fig. 1). A patron uses their unit to place an order, and the system tracks the unit’s location, enabling staff to find the patron and deliver the order efficiently (’414 Patent, col. 3:1-17).
- Technical Importance: The technology sought to improve service efficiency by integrating a mobile ordering interface with real-time electronic location tracking of the customer within a defined service area (Compl. ¶¶38-39).
Key Claims at a Glance
- The complaint asserts independent claim 1 (Compl. ¶59).
- Claim 1 of the ’729 Patent 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 application on a patron-owned device).
- 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 order and the current location of the unit when the patron moves.
- Displaying the patron order on the unit’s display.
U.S. Patent No. 10,157,414 - Patron Service System and Method
- Issued: December 18, 2018
The Invention Explained
- Problem Addressed: As a continuation of the same family, the ’414 Patent addresses the same service and delivery inefficiencies in venues as described for the ’729 Patent (Compl. ¶34; ’414 Patent, col. 1:40-2:11).
- The Patented Solution: The solution is the same integrated system of mobile ordering and location tracking. The claims of the ’414 Patent are directed toward a computer-implemented method, executed by one or more processors, that focuses on the server-side operations of providing the application and processing location and order data (’414 Patent, Abstract; col. 26:7-40).
- Technical Importance: The technology aimed to provide a technical architecture for a centralized system to manage orders and real-time locations for a distributed network of mobile users within a service environment (Compl. ¶¶37-39).
Key Claims at a Glance
- The complaint asserts independent claim 8 (Compl. ¶78).
- Claim 8 of the ’414 Patent recites a computer-implemented method with the following essential elements:
- Providing a venue-specific application over a wireless channel to a mobile computing device.
- Communicating with the device to authenticate a user.
- Receiving location information from the device.
- Determining a location of the device at a first time.
- Mapping the location to a region 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.
U.S. Patent No. 11,195,224 - Patron Service System and Method
- Issued: December 7, 2021
Technology Synopsis
This patent claims a system for locating multiple electronic devices (Compl. ¶105). The system provides a venue-specific application to the devices, receives location information from them, determines and updates their locations, receives order information from a particular device, and in response, sends data indicating the updated location of that device to a computing system associated with the venue for display (’224 Patent, col. 25:55-26:22).
Asserted Claims
- Independent claim 10 (Compl. ¶98).
Accused Features
- The complaint accuses Defendant's back-end system that provides the mobile application, receives and determines location information from users' devices, processes order information, and sends location data to venue-associated systems (Compl. ¶¶105-116).
III. The Accused Instrumentality
Product Identification
- Defendant’s mobile application (the "CVS App") (Compl. ¶10, fn. 1).
Functionality and Market Context
- The complaint describes the CVS App as a "mobile-ordering solution" that functions as a "venue-specific application" for ordering products from Defendant's stores (Compl. ¶51). The application is alleged to track the user's smartphone location to perform functions such as identifying nearby stores and determining a user's arrival for order pickup (Compl. ¶53). The complaint alleges that the application generates significant revenue for the Defendant through a substantial number of mobile orders (Compl. ¶57). A composite screenshot in the complaint depicts the CVS App's store locator map interface and product selection screen (Compl. p. 15). This visual shows the app using location to identify nearby stores and presenting options for pickup (Compl. p. 15).
IV. Analysis of Infringement Allegations
8,682,729 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 to the at least one patron for downloading into a patron-owned wireless communication device | Defendant provides the CVS App for download into patron-owned smartphones (e.g., via app stores). | ¶¶67-68 | col. 4:26-32 |
| connecting the wireless patron unit to a server | The CVS App connects the user's smartphone to Defendant's server via a Wi-Fi or cellular connection. | ¶69 | 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 selects an item from a store menu within the CVS App to place an order. | ¶70 | col. 4:30-32 |
| determining a current location of the wireless patron unit | The CVS App determines the location of the user's smartphone, for example, to find local stores. | ¶¶71-72 | col. 21:51-56 |
| updating...the current location of the wireless patron unit when the patron moves to a different location, on the wireless patron unit | The complaint alleges Defendant "tracks the location of the smartphone" and "updates the current location of the wireless patron unit...when the patron moves to a different location." | ¶¶73, 75 | col. 22:1-4 |
| updating a status of the patron order...on the wireless patron unit | The CVS App shows the user that an order was placed, is in progress, or has other status updates. | ¶¶73-74 | col. 22:20-24 |
| displaying the patron order on a display of the wireless patron unit | The CVS App displays the user's order on the smartphone's screen. A screenshot shows an order confirmation screen (Compl. p. 19). | ¶76 | col. 4:22-25 |
10,157,414 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's system provides the CVS App to users' smartphones over cellular or WiFi networks. | ¶86 | col. 4:26-32 |
| communicating...with the mobile computing device...to authenticate...a user | The system authenticates a user via login and password and secures financial information. | ¶¶87-89 | col. 22:3-8 |
| receiving...location information from the mobile computing device | Defendant's system receives location information from the user's device via its location services. | ¶90 | col. 21:51-53 |
| determining...a location of the mobile computing device at a first time based on the location information | Based on the received information, the system determines the device's location to, for example, find local stores. | ¶92 | col. 21:51-56 |
| mapping...the location to a region that is associated with a venue | The system maps the determined location to a region associated with a CVS store or group of stores. | ¶93 | col. 16:26-32 |
| receiving, from the mobile computing device, order information for the venue | The system receives order information when a user selects items through the app. | ¶94 | col. 22:9-17 |
| receiving...updated location information from the mobile computing device | The system receives updated location information as it tracks the device, such as when it approaches the store for pickup. | ¶95 | col. 26:1-3 |
| determining...an updated location of the mobile computing device at a second time based on the updated location information | The system determines updated locations at multiple points after receiving the updated location data. | ¶96 | col. 26:1-3 |
Identified Points of Contention
- Scope Questions: A central question may be whether Defendant's nationwide network of retail stores, accessed via a single universal mobile application, constitutes a "venue" as contemplated by the patents. The patent specifications heavily feature examples like resorts, stadiums, and cruise ships, which are typically single, geographically-contained service environments (’414 Patent, col. 3:56-67). The complaint counters this by alleging the application is configured for a venue defined as "a Defendant store" but can apply to multiple such stores (Compl. ¶52).
- Technical Questions: The infringement theory raises the question of whether the functionality of the accused app aligns with that required by the claims. The patents describe a system for tracking a patron's movement within a venue to facilitate mobile delivery of an order to the patron (’414 Patent, col. 5:32-40). The complaint alleges the CVS App infringes by tracking a user's location to find a nearby store and to facilitate order pickup by the patron from a fixed location (Compl. ¶53). The degree of functional correspondence between these two use cases may become a focal point of the dispute.
V. Key Claim Terms for Construction
The Term: "venue"
- Context and Importance: This term is foundational to the asserted claims. The patentability of the claims during prosecution appears to have been linked to their application within a specific context, and the infringement case depends on construing "venue" to read on Defendant's retail store operations. Practitioners may focus on this term because the factual context of the accused system (a national retail chain) differs from the primary embodiments described in the patent (a resort).
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification explicitly lists "retail locations" as an example of a "venue" (’414 Patent, col. 4:5-9). This language may support Plaintiff's position that an individual CVS store qualifies.
- Evidence for a Narrower Interpretation: The "Background" and "Detailed Description" sections repeatedly frame the invention as solving problems unique to self-contained, service-oriented environments like a "resort," "beach," or "pool," where staff deliver items to mobile patrons (’414 Patent, col. 1:40-50, col. 4:18-25). This context may support a narrower construction limited to such environments.
The Term: "venue-specific application"
- Context and Importance: This limitation was added to the claims of the ’414 Patent during prosecution, and the complaint notes that its inclusion led the Patent Office to withdraw a Section 101 rejection (Compl. ¶¶48-49). Its meaning is therefore critical to both validity and infringement. The dispute may center on whether a single, nationally available application like the CVS App can be considered "venue-specific."
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The complaint alleges the app is "specifically configured for a venue (e.g., a Defendant store) but may apply to more than one location" (Compl. ¶52). This suggests an interpretation where an application is "venue-specific" if its functionality is tailored to the services offered at that type of venue (a CVS pharmacy), even if the same application software is used for all such venues.
- Evidence for a Narrower Interpretation: The ordinary meaning of "specific" may suggest that the application must be unique to a particular, single venue (e.g., an app only for the "CVS at 123 Main St.") or a limited, defined set of venues. The patent specification does not appear to explicitly define the term.
VI. Other Allegations
- Indirect Infringement: The complaint alleges induced infringement, stating that Defendant knowingly encourages infringement by distributing the CVS App and providing instructions to users on how to use its allegedly infringing features (Compl. ¶¶63, 82, 102).
- Willful Infringement: Willfulness allegations are based on Defendant's alleged knowledge of the asserted patents and infringement from at least the date of the complaint's filing and service (Compl. ¶¶64, 83, 103).
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 self-contained hospitality environments, be construed to cover individual stores within a nationwide retail pharmacy chain? The outcome of this question will likely determine whether the asserted claims can reach the accused system.
- A key technical question will be one of functional correspondence: does the accused application's use of location services to identify nearby stores for order pickup perform a function that is technically and legally equivalent to the claimed method of tracking a patron's real-time movement within a venue to facilitate mobile delivery to that patron?
- A central validity question may revolve around patent eligibility: although the patents survived Section 101 challenges at the USPTO and in a prior litigation's motion-to-dismiss phase, the Defendant may raise the issue again with a more developed factual record, focusing on whether the claims, as construed, are directed to an abstract idea without a sufficient inventive concept.