DCT
2:24-cv-00476
Tiare Technology Inc v. Home Depot Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Tiare Technology, Inc. (Delaware)
- Defendant: The Home Depot, Inc., Home Depot Product Authority, LLC, and Home Depot U.S.A., Inc. (Delaware / Georgia)
- Plaintiff’s Counsel: The Davis Firm PC
- Case Identification: 2:24-cv-00476, E.D. Tex., 09/17/2024
- Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant operates multiple "regular and established places of business" (retail stores) within the District, distributes its accused mobile application to customers in the District, and derives substantial revenue from those activities.
- Core Dispute: Plaintiff alleges that Defendant’s mobile ordering application infringes three patents related to mobile commerce systems that use location-tracking technology to facilitate order placement and fulfillment.
- Technical Context: The technology at issue falls within the mobile ordering and logistics domain, where a customer's physical location is determined and tracked via their mobile device to streamline the process of picking up an order from a physical venue.
- Key Procedural History: The complaint notes that the asserted patent family underwent extensive examination at the U.S. Patent and Trademark Office, with limitations such as "venue-specific application" being added to overcome patent eligibility rejections under 35 U.S.C. § 101. The complaint also highlights that a federal court in the same district previously denied a motion to dismiss challenging the eligibility of the asserted patents in a case against a different defendant, and that Plaintiff has resolved disputes over this portfolio with numerous other companies.
Case Timeline
| Date | Event |
|---|---|
| 2002-09-23 | Earliest Patent Priority Date (’729, ’414, ’224 Patents) |
| 2014-03-25 | ’729 Patent Issued |
| 2018-12-18 | ’414 Patent Issued |
| 2019-06-16 | Earliest Alleged Date of Accused Functionality |
| 2021-12-07 | ’224 Patent Issued |
| 2024-09-17 | 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 venues like resorts, where patrons face difficulties finding staff to place orders and staff, in turn, struggle to locate patrons for delivery, especially if the patron moves after ordering (e.g., from a beach chair to the pool) (’729 Patent, col. 1:40-2:6). Conventional systems like centrally-located kiosks or staff-operated handhelds did not solve this core problem of connecting a mobile patron to an order fulfillment system in a way that accounted for the patron's location (Compl. ¶¶37-38).
- The Patented Solution: The invention describes a method where a patron uses a "wireless patron unit" (e.g., a smartphone) running a specific application for that venue. The patron can place an order directly from their device, which connects to a central server. Crucially, the system determines the device's current location and can update both the order status and the device's location on the unit's display, allowing service staff to find the patron to fulfill the order (’729 Patent, Abstract; col. 3:3-16).
- Technical Importance: The claimed solution provides a technical improvement to mobile ordering systems by integrating location tracking not just to identify a venue, but to facilitate the final step of order fulfillment for a mobile customer (Compl. ¶39).
Key Claims at a Glance
- The complaint asserts at least independent claim 1 (Compl. ¶61).
- Claim 1 is a method claim with the following essential elements:
- Providing a patron with a wireless patron unit that includes a venue-specific application program.
- 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 wireless patron unit.
- Updating a status of the order and the current location of the unit when the patron moves, with the update occurring 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: December 18, 2018
The Invention Explained
- Problem Addressed: The patent addresses the same technical problem as the ’729 Patent: the logistical challenge of fulfilling orders for patrons who are mobile within a service venue and the inadequacy of kiosk-based or staff-centric POS systems to solve it (’414 Patent, col. 1:22-2:57).
- The Patented Solution: This patent claims the invention from the perspective of the central server system. The claimed method involves the server providing a "venue-specific application" to a mobile device, authenticating the user, and then performing a multi-step location tracking process. The server receives an initial location, maps it to a venue region, receives an order, and then receives updated location information to determine the device's location at a second, later time (’414 Patent, Claim 8). This architecture enables a centralized system to track patrons as they move, facilitating efficient service delivery, as depicted in the patent's system diagrams ('414 Patent, Fig. 1, 13).
- Technical Importance: The complaint asserts that this method is an unconventional technical solution to the problem of tracking distributed mobile computing devices, which it claims was a significant challenge at the time of the invention (Compl. ¶¶40-41).
Key Claims at a Glance
- The complaint asserts at least independent claim 8 (Compl. ¶77).
- Claim 8 is a computer-implemented method claim 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 the device's location at a first time based on that information.
- 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, rather than a method, for locating multiple electronic devices within a venue. The system provides a venue-specific application, receives initial and then updated location signals from multiple devices, and in response to receiving an order from one particular device, sends data indicating that device's updated location to a computing system associated with the venue for display in a graphical user interface (’224 Patent, Claim 10). This solves the problem of enabling venue staff to visually locate a specific patron who has placed an order on a map-like interface.
Asserted Claims & Accused Features
- Asserted Claims: At least independent claim 10 (Compl. ¶94).
- Accused Features: The complaint accuses Defendant's mobile ordering system, which allegedly provides an app, receives location information from users' devices, determines initial and updated locations, and uses this information to process mobile orders (Compl. ¶¶97-108).
III. The Accused Instrumentality
Product Identification
- Defendant's mobile application, referred to as the "Accused Product" (Compl. ¶4, fn. 1).
Functionality and Market Context
- The complaint alleges the accused application allows users to select a Home Depot store, browse items, place an order for pickup, and pay for the order (Compl. ¶21). A series of screenshots in the complaint illustrates a user confirming a pickup store, selecting an item, and proceeding to checkout. (Compl., p. 15). The core accused functionality is the application's use of the mobile device's location services. The complaint alleges the app tracks the device's location to determine an initial location (e.g., to find a local store) and to facilitate the order pickup process (Compl. ¶55). Another screenshot shows the application's disclosure, which states it uses the device's location "to show you our nearest store... and determine if you are shopping in one of our stores" (Compl., p. 16). The complaint alleges that this mobile ordering solution generates significant revenue for the Defendant (Compl. ¶58).
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 its mobile application for users to download onto their personal smartphones or tablets. | ¶66 | col. 4:18-24 |
| connecting the wireless patron unit to a server enabling communication between the wireless patron unit and the server | The application on the user's device connects to Defendant's server via a Wi-Fi or cellular connection. | ¶67 | col. 6:12-16 |
| entering a patron order for at least one item or service provided by the venue into the wireless patron unit | A user places an order for an item available at a Home Depot store using the application interface. A provided screenshot shows an item being added to a cart. | ¶68; p. 18 | col. 4:29-32 |
| determining a current location of the wireless patron unit | The application accesses the device's location services to determine its physical location, for purposes such as finding nearby stores. | ¶69 | col. 5:31-33 |
| 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 | The system allegedly updates the order status (e.g., placed, in progress) and tracks the user's location, such as determining when the device is in proximity to the store for pickup. | ¶¶71-73 | col. 1:1-7 |
| displaying the patron order on a display of the wireless patron unit | The application displays order information, such as the items in the cart, on the user's device screen. | ¶74 | col. 4:58-62 |
Identified Points of Contention:
- Scope Questions: The patent is framed in the context of a hospitality "venue" like a resort. A central question may be whether claim terms like "patron" and "venue" can be construed to cover a customer and a retail hardware store, a context with different operational logistics.
- Technical Questions: Claim 1 requires "updating... the current location of the wireless patron unit... on the wireless patron unit." The complaint alleges Defendant tracks the user's location (Compl. ¶73), but it raises the question of whether evidence will show that the user's own device displays its own updated real-time location back to the user, as the claim language may require.
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 provides its mobile application to users over wireless channels (e.g., cellular network, Wi-Fi) for use on their smartphones. | ¶81 | col. 26:40-43 |
| communicating, by the one or more processors, with the mobile computing device... to authenticate, based on a security protocol, a user... | Defendant's system authenticates a user through a login and password or other security protocols. | ¶¶82-84 | col. 22:3-6 |
| receiving, by the one or more processors, location information from the mobile computing device | Defendant's servers receive location data from the mobile device's location services. A provided screenshot states the app uses "data obtained from your device regarding the device's location." | ¶85; p. 16 | col. 21:56-59 |
| determining, by the one or more processors, a location of the mobile computing device at a first time based on the location information | Defendant's system processes the received data to determine the device's location, for example, to find a nearby store. | ¶87 | col. 26:50-52 |
| mapping, by the one or more processors, the location to a region that is associated with a venue | The system allegedly maps the determined location to a region associated with a specific store or group of stores. | ¶88 | col. 26:53-55 |
| receiving, from the mobile computing device, order information for the venue... | Defendant's servers receive order information when a user selects an item and adds it to their cart through the application. | ¶89 | col. 26:56-59 |
| receiving, by the one or more processors, updated location information from the mobile computing device | The system allegedly receives subsequent, updated location information, for example, to determine when the user is approaching or in the vicinity of the store for pickup. | ¶90 | col. 26:60-61 |
| 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 | Based on the updated information, the system determines the device's location at a later time, such as when the device approaches the store. | ¶91 | col. 26:62-64 |
Identified Points of Contention:
- Scope Questions: The construction of "mapping the location to a region that is associated with a venue" will be a likely point of contention. The question will be whether simply identifying the nearest store based on GPS coordinates meets this limitation, or if it requires defining a specific geographic zone or geofence around the venue.
- Technical Questions: The complaint alleges the system receives "updated location information" to determine a location at a "second time" (Compl. ¶¶90-91). A factual question for the court will be what evidence demonstrates that the accused system performs this two-step location determination (i.e., an initial determination, followed by a subsequent, updated determination) as opposed to a single location check.
V. Key Claim Terms for Construction
The Term: "venue-specific application" (’414 Patent, Claim 8)
- Context and Importance: This term is present in the asserted independent claims of both the ’414 and ’224 Patents. The complaint emphasizes that this limitation was added during prosecution to overcome a patent eligibility rejection under 35 U.S.C. § 101 (Compl. ¶¶50-51). Its construction is therefore critical not only for infringement but also for validity, as it was a basis for allowance.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The complaint argues that the accused app is "venue-specific" because it is configured for the "store-chain" and can apply to more than one location (Compl. ¶54). The patent's abstract describes providing an application "that can be used during the at least one patron's visit to the venue," which does not explicitly restrict the application to a single, unique venue (’414 Patent, Abstract).
- Evidence for a Narrower Interpretation: The patent's background consistently uses the example of a single, unique "resort" or similar hospitality venue (’414 Patent, col. 1:22-29). An argument could be made that "venue-specific" implies an application tailored to the unique layout, services, or features of a single location, rather than a generic application used uniformly across a national chain of retail stores.
The Term: "mapping the location to a region that is associated with a venue" (’414 Patent, Claim 8)
- Context and Importance: This term defines a key step in the claimed location-tracking process. The dispute may turn on whether the accused app's function of identifying a nearby store constitutes "mapping" to a "region."
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification does not appear to provide a specific definition for "mapping" or "region." Plaintiff may argue that any process that correlates a device's GPS coordinates to a known store location satisfies this element in its plain and ordinary meaning.
- Evidence for a Narrower Interpretation: The patent describes tracking patrons as they move around a property like a resort (e.g., from the pool to the beach) (’414 Patent, col. 2:1-6). This context may support an interpretation that "mapping to a region" requires defining distinct zones within or around a venue (e.g., "pool area," "parking lot," "store entrance") rather than simply identifying the venue on a large-scale map.
VI. Other Allegations
The complaint does not contain specific counts or factual allegations for indirect infringement or willful infringement.
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the term "venue-specific application," which was added to overcome a § 101 rejection in the context of a resort-based invention, be construed to cover a general-purpose mobile commerce application used across a national chain of standardized retail stores?
- A key evidentiary question will be one of functional operation: does the accused application's alleged functionality—primarily identifying a "nearest store" and detecting a user's presence for pickup—perform the specific, multi-step location-tracking process required by the claims, which includes determining a location at a first time, receiving an order, and subsequently determining an updated location at a second time?