Avant Location Tech LLC v. Apple Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Avant Location Technologies LLC (Texas)
  • Defendant: ecobee Technologies ULC d/b/a ecobee (Canada)
  • Plaintiff’s Counsel: Fabricant LLP; Davis Firm PC
• Case Identification: 2:24-cv-00354, E.D. Tex., 12/20/2024
• Venue Allegations: Plaintiff alleges venue is proper because Defendant is a foreign corporation and because Defendant conducts business and has committed acts of infringement in the district. Plaintiff further notes that Defendant has not contested venue in prior patent litigation in the Eastern District of Texas.
• Core Dispute: Plaintiff alleges that Defendant’s smart home products and associated services, which use geofencing to determine a user’s home/away status, infringe five patents related to monitoring a mobile device’s presence in a special area.
• Technical Context: The technology involves using local radio signals and mobile network communications to determine if a mobile device is within a predefined geographic zone and to alter device or network services based on that presence.
• Key Procedural History: The complaint notes that Defendant has previously admitted to or not contested proper venue in the Eastern District of Texas in a separate patent infringement case, Ollnova Technologies v. ecobee Technologies ULC d/b/a ecobee, Case No. 2:22-cv-00072.

Case Timeline

Date	Event
2006-03-28	Earliest Priority Date for all Patents-in-Suit
2014-05-27	U.S. Patent No. 8,738,040 Issues
2015-08-25	U.S. Patent No. 9,119,030 Issues
2016-11-01	U.S. Patent No. 9,485,621 Issues
2017-04-11	U.S. Patent No. 9,622,032 Issues
2018-06-26	U.S. Patent No. 10,009,720 Issues
2024-12-20	Complaint Filed

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

U.S. Patent No. 8,738,040 - "Method and System for Monitoring a Mobile Station Presence in a Special Area"

The Invention Explained

• Problem Addressed: The patent describes prior art systems for monitoring a mobile device's location as inflexible, particularly because adding new "special areas" (like a home or office) required modifying the radio transmitting "guide units" in those areas (’040 Patent, col. 2:7-12).
• The Patented Solution: The invention proposes a more flexible system where a "special area" is associated with a mobile device by transmitting "checking data" to the device. The device stores this data and uses it to determine if a received radio signal is a "distinctive defining signal" for that area, without needing to modify the transmitting device ('040 Patent, col. 2:39-50). This allows a mobile network to remotely and securely define new special areas for a user's device (Compl. ¶13).
• Technical Importance: This approach decouples the definition of the special area from the hardware transmitting signals within it, allowing a network operator to dynamically create and manage location-based services.

Key Claims at a Glance

• The complaint asserts at least independent claim 13 (Compl. ¶30).
• Essential elements of Claim 13 (a mobile station) include:
  • observing means to observe a channel and process any received signal to determine if it is receiving a defining signal;
  • a processor to process any received defining signal and to determine, based on previously obtained checking data, whether the defining signal is a distinctive one that at least partially defines a special area;
  • the processor determines whether the mobile station is present in one or more special areas; and
  • the processor sends an updating signal (periodically, upon entry/exit, or while remaining in the area) to a mobile telephone network about its presence, where the updating signal is uncorrelated to any phone call establishment.

U.S. Patent No. 10,009,720 - "Method and System for Monitoring a Mobile Station Presence in a Special Area"

The Invention Explained

• Problem Addressed: Similar to the ’040 Patent, the technology addresses the need for a flexible way to associate special areas with a mobile device for location-based services without modifying local radio transmitters (’720 Patent, col. 2:7-12).
• The Patented Solution: The invention describes a method where a mobile station receives a "distinctive defining signal" that defines a "special area." The mobile station then sends an "updating signal" over the mobile network to a provider of presence-related services. These servers can then use the updating signal to "adjust an operating parameter," such as a "tariff and a service flag," thereby activating or deactivating services for the mobile station ('720 Patent, col. 2:15-41).
• Technical Importance: The invention provides a system architecture where a mobile device's presence in a defined zone can trigger changes in service parameters on a remote server, enabling location-aware service management.

Key Claims at a Glance

• The complaint asserts at least independent claim 1 (Compl. ¶45).
• Essential elements of Claim 1 (a method) include:
  • receiving and processing a distinctive defining signal in the mobile station, where the signal defines a special area;
  • the signal includes information indicating whether the radio communication defining device is in a predetermined environment;
  • sending from the mobile station via a mobile telephone network an updating signal to servers of a presence-related service provider about the mobile station's presence; and
  • the updating signal being usable by the servers to adjust an operating parameter (comprising a tariff or service flag) to adjust, activate, or deactivate the presence-related services.

U.S. Patent No. 9,119,030 - "Method and System for Monitoring a Mobile Station Presence in a Special Area"

• Technology Synopsis: This patent discloses a method where a provider of presence-related services stores data linking a mobile station to a special area. The provider receives an "updating signal" from the mobile station (uncorrelated to a phone call) and uses it to derive the device's presence and enable or disable a presence-related service (Compl. ¶58).
• Asserted Claims: At least independent claim 1 is asserted (Compl. ¶58).
• Accused Features: The accused features include the ecobee app on a mobile device and ecobee's servers, which allegedly store user account and geofence data, receive location updates from the app, and enable/disable services like Home/Away settings based on those updates (Compl. ¶¶59-64).

U.S. Patent No. 9,485,621 - "Method and System for Monitoring a Mobile Station Presence in a Special Area"

• Technology Synopsis: This patent is similar to the ’030 Patent, focusing on a method where a provider of presence-related services, which is "different than the mobile telephone network," electronically stores data linking a mobile station to a special area. The provider's servers receive an updating signal and use it to enable or disable a presence-related service (Compl. ¶72).
• Asserted Claims: At least independent claim 1 is asserted (Compl. ¶72).
• Accused Features: The complaint alleges that ecobee is a provider of presence-related services distinct from the cellular network. Its servers allegedly store linking data and receive updates from the ecobee app via the cellular network to control the Smart Security system (Compl. ¶¶73-79).

U.S. Patent No. 9,622,032 - "Method and System for Monitoring a Mobile Station Presence in a Special Area"

• Technology Synopsis: This patent describes a method where a mobile station stores and uses "first checking data" to identify a distinctive signal defining a special area. Servers of a presence provider receive an updating signal from the mobile station, store an operating parameter based on that signal, and can then send "second checking data" back to the mobile station to modify the special area (Compl. ¶87).
• Asserted Claims: At least independent claim 1 is asserted (Compl. ¶87).
• Accused Features: The complaint alleges the ecobee app stores checking data (the geofence definition) and sends updates to ecobee servers. These servers, in turn, can modify the special area by sending new data back to the app, for instance when a user adjusts the geofence radius from 1000m to 100m (Compl. ¶¶88-93).

III. The Accused Instrumentality

Product Identification

• The accused products include ecobee’s Smart Thermostats, SmartCamera, SmartSensors, and associated mobile applications and services such as Smart Security, which interoperate to form a smart home system (Compl. ¶24).

Functionality and Market Context

• The core accused functionality is the "Arm/Disarm Assist" feature, which works with a feature called "Autopilot." This system uses a combination of a user's phone location (geofencing), Wi-Fi connection status, and data from ecobee sensors to automatically determine if the user is "home" or "away" (Compl. ¶31). Based on this determination, the system can automatically adjust thermostat settings and arm or disarm the security system. A screenshot provided in the complaint shows a map interface for defining a geofence around a home (Compl. p. 13). The complaint alleges these products work together to provide "whole home protection that starts with your thermostat" (Compl. ¶46, p. 23).

IV. Analysis of Infringement Allegations

’040 Patent Infringement Allegations

Claim Element (from Independent Claim 13)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
observing means to observe a channel and process any received signal in order to determine whether or not it is receiving a defining signal	The ecobee app's Arm/Disarm Assist feature, which uses Autopilot to monitor signals such as phone location (geofencing), Wi-Fi status, and sensor data.	¶31	col. 4:58-65
a processor to process any received defining signal and to determine, based on a previously obtained checking data, whether or not the defining signal received is a distinctive defining signal that at least partially defines a special area	The ecobee app uses stored data (the user-defined geofence and Wi-Fi network) as "checking data" to process incoming signals (current phone location and sensor signals) to determine if the user is inside the "special area."	¶32	col. 5:9-16
and to send an updating signal ... to a mobile telephone network about its presence in one or more of the special areas	The ecobee app sends an updating signal (e.g., a notification or status change) to ecobee servers via the mobile telephone network when the user's phone enters or exits the defined geofence. A diagram shows this communication path (Compl. p. 13).	¶¶33-34	col. 2:34-38
where said updating signal sending is uncorrelated to any mobile station phone call establishment	The complaint alleges the updating signal is sent over the cellular data network, not as part of a voice call, citing as an example a user hearing a "little ping" notification rather than making or receiving a call.	¶37	col. 21:34-37

’720 Patent Infringement Allegations

Claim Element (from Independent Claim 1)	Alleged Infringing Functionality	Complaint Citation	Patent Citation
receiving and processing the distinctive defining signal in the mobile station, the distinctive defining signal at least defining a special area by one or more of: (1) a coverage area ...	The ecobee app receives and processes phone location data and sensor signals. The "distinctive defining signal" is the combination of these signals, which define the special area (the geofence).	¶¶46-47	col. 2:26-33
the distinctive defining signal including information indicating whether or not the radio communication defining device is in a predetermined environment	The ecobee app uses stored location data (the home location) and receives signals from SmartSensors to determine if the device is in the predetermined "home" environment.	¶47	col. 2:21-24
sending from the mobile station via a mobile telephone network an updating signal to one or more servers of a provider of presence related services about the mobile station's presence in the special area	The ecobee app sends updated location information via the mobile network to ecobee's servers, which act as the provider of presence-related services.	¶48	col. 2:34-38
the updating signal being useable by the one or more servers...to adjust an operating parameter, which comprises one or more of a tariff and a service flag, to adjust, activate, or deactivate the presence related services	The ecobee servers use the updating signal to change a stored parameter indicating the user's Home/Away status. The complaint alleges this status parameter is a "service flag" that activates or deactivates services like automated thermostat adjustments.	¶49	col. 4:29-32

Identified Points of Contention

• Scope Questions: The infringement theory for multiple patents hinges on construing the accused system’s "Home/Away" status as an "operating parameter" that includes a "service flag" or "tariff." A central question may be whether a status indicator within a proprietary smart home ecosystem, which controls thermostat and security settings, falls within the scope of terms that, in the context of the patent specification, appear related to telecommunications network services and billing rates.
• Technical Questions: The complaint alleges that a combination of phone GPS location, Wi-Fi status, and proprietary sensor signals constitutes the claimed "distinctive defining signal." A potential point of contention could be whether these disparate data sources, processed by an application, function in the same way as the localized, discrete radio signal described in the patent embodiments.

V. Key Claim Terms for Construction

The Term: "special area"

• Context and Importance: This term is foundational to all asserted claims. Its scope will determine what types of location-based services are covered. The dispute may turn on whether a user-defined circle on a map in a smartphone app (a geofence) constitutes a "special area" as contemplated by the patents.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The specification suggests a "special area" can be defined by the coverage of one or more radio signals, including the "sum of the coverage" of several base stations, which supports a flexible and potentially large or irregularly shaped area ('040 Patent, col. 6:23-28).
  • Evidence for a Narrower Interpretation: The patent frequently uses examples like a "home area" defined by a short-range "guide unit" or specific business locations like airports and company premises, which might suggest the invention was aimed at more discrete, physically bounded locations rather than arbitrary geographic circles ('040 Patent, col. 2:59-65).

The Term: "service flag" (’720 Patent, Claim 1)

• Context and Importance: Plaintiff's infringement theory for the ’720 Patent relies on the accused system's "Home/Away" status being a "service flag." The viability of this count will depend on whether this term can be construed to cover an internal system status that controls appliance settings.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The term "service flag" is used alongside "tariff," and the claim states the operating parameter "comprises" one or more of these. This could suggest they are examples, and a "service flag" could broadly mean any binary indicator that enables or disables a "presence related service" ('720 Patent, col. 22:45-48).
  • Evidence for a Narrower Interpretation: The specification discusses the operating parameter in the context of a "special tariff or a service for the mobile station" provided by a "mobile telephone network operator" ('720 Patent, col. 4:29-32). This context may support a narrower construction limited to flags that control telecommunication services (e.g., enabling/disabling roaming or special billing).

VI. Other Allegations

• Indirect Infringement: The complaint alleges inducement of infringement across all asserted patents. It claims Defendant provides instructions, product manuals, advertisements, and online documentation (including support articles and videos) that encourage and instruct end-users on how to set up and use the accused geofencing features, thereby causing them to directly infringe (Compl. ¶¶ 38, 51, 65, 80, 94).
• Willful Infringement: The complaint alleges that Defendant had "actual notice of the Asserted Patents, at least as of the filing date of this Complaint" (Compl. ¶25). This allegation appears to support a claim for post-suit willful infringement rather than pre-suit willfulness.

VII. Analyst’s Conclusion: Key Questions for the Case

The resolution of this dispute may depend on the court’s answers to several key questions:

• A core issue will be one of definitional scope: Can terms like "service flag" and "tariff," which originate in the patent’s context of mobile telecommunications network services, be construed broadly enough to cover the "Home/Away" status parameters used within Defendant's closed smart home ecosystem to control thermostats and security systems?
• A second issue will be one of technical mapping: Does the accused system—which synthesizes a user’s location from multiple sources like smartphone GPS, Wi-Fi networks, and proprietary home sensors—operate in a manner consistent with the patents' descriptions of a mobile device identifying a "distinctive defining signal" from a "radio communication defining device"?
• A final question will be one of system architecture: Can the ecobee app and its associated servers, which provide smart home control, be properly characterized as the claimed "provider of presence related services" that is "different than the mobile telephone network," as required by certain claims, or are they functionally inseparable in a way that falls outside the claim scope?