DCT

2:25-cv-00613

Nostromo LLC v. MacY's Inc

Log In

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 2:25-cv-00613, E.D. Tex., 06/09/2025
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant maintains multiple regular and established places of business within the district and has transacted business there, including sales of the accused products.
  • Core Dispute: Plaintiff alleges that Defendant’s Macy's Mobile Application infringes a patent related to methods for providing customized, location-based information services to portable electronic devices.
  • Technical Context: The technology involves using a device's geographic location to automatically trigger and deliver user-preferred information, a foundational capability for modern mobile commerce and marketing applications.
  • Key Procedural History: U.S. Patent No. 8,559,970, the patent-in-suit, was the subject of an ex parte reexamination proceeding. On February 27, 2025, the USPTO issued a Reexamination Certificate confirming the patentability of claims 1-3, 8, 10-12, and 17. This complaint, asserting at least claim 1, was filed after the issuance of that certificate, a factor that may influence the court’s view of the patent's validity.

Case Timeline

Date Event
2008-12-23 ’970 Patent Priority Date
2013-10-15 ’970 Patent Issue Date
2025-02-27 ’970 Patent Reexamination Certificate Issued
2025-06-09 Complaint Filing Date

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

U.S. Patent No. 8,559,970 - “Method for Providing Location-Based Information Services, Location-Based Information Services System, and Portable Electronic Device”

  • Patent Identification: U.S. Patent No. 8,559,970, “Method for Providing Location-Based Information Services, Location-Based Information Services System, and Portable Electronic Device,” issued October 15, 2013.

The Invention Explained

  • Problem Addressed: The patent describes a limitation in prior art navigation and location-based systems where users had to actively request information. This approach was described as impracticable for staying aware of emergent local phenomena, and the information provided often contained content not of interest to the user or covered an unnecessarily large administrative district (’970 Patent, col. 1:21-42).
  • The Patented Solution: The invention is a method and system that automates the delivery of customized information. A user first establishes preference settings, such as desired categories of information and a specific location range (e.g., a radius around the user). A back-end system then monitors the device’s location and, upon detecting that a pre-set condition has been met (e.g., the user enters the specified range), automatically selects and transmits relevant information from a database to the user's device (’970 Patent, Abstract; col. 6:30-52). This shifts the model from a user-pull to a system-push paradigm based on pre-defined user preferences and real-time location.
  • Technical Importance: The claimed method allowed for the automated, real-time delivery of personalized location-based information, overcoming the need for constant user interaction and filtering out irrelevant data common in earlier systems (’970 Patent, col. 1:33-42).

Key Claims at a Glance

  • The complaint asserts infringement of at least independent claim 1 (Compl. ¶15).
  • The essential elements of independent claim 1 are:
    • (a) providing an information platform and a user preference settings database for receiving and recording preference settings for categories of information and location range from a user;
    • (b) setting and storing in a condition database at least one condition for triggering the information service;
    • (c) receiving positioning information that includes the location of the user's portable device; and
    • (d) determining if the condition has been met and, if so, selecting location information from a database in accordance with the user's preferences and transmitting it to the portable device.
  • The prayer for relief seeks judgment on "one or more claims of the Patent-in-Suit," preserving the right to assert other claims (Compl. p. 9, ¶a).

III. The Accused Instrumentality

Product Identification

  • The complaint names the "Macy's Mobile Application" and its associated "digital fencing and/or geofencing applications" and server infrastructure as the accused instrumentality (Compl. ¶¶14, 16).

Functionality and Market Context

  • The complaint alleges that the Macy's Mobile Application provides location-based services to users' mobile devices, including notifications for coupons, deals, sales, and order statuses (Compl. ¶10). This functionality is allegedly enabled by geofencing and beacon technology that determines a user's proximity to a store to trigger alerts (Compl. ¶¶18-19). The complaint includes a marketing image describing Macy's use of 4,000 beacons for "proximity targeting" and "beacon-powered in-store deal alerts," suggesting this functionality is a significant part of its retail strategy (Compl. p. 6, Image).

IV. Analysis of Infringement Allegations

’970 Patent Infringement Allegations

| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality - | Complaint Citation | Patent Citation |
|:--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |:-----------------------|:--------------------|
| (a) providing an information platform and a user preference settings database for respectively receiving and recording preference settings for categories of information and location range from a user of the portable electronic device; | The Macy's Mobile Application and associated servers where a user registers devices and that receive and record preference settings for categories of information and location range. - | ¶16 | col. 2:1-4 |
| (b) setting and storing in a condition database at least one condition for triggering information services provision to the portable electronic device; | The setting and storing of conditions, such as "custom alerts," in a condition database for triggering the provision of information services to a mobile device. - | ¶17 | col. 2:4-6 |
| (c) receiving positioning information that includes a location of the portable electronic device by having a positioning module; | The use of geofencing to receive mobile device positioning data via positioning modules within the mobile device. - | ¶18 | col. 2:6-9 |
| (d) determining through use of a condition module whether the at least one condition...has been met, and when the condition has been met, selecting location information...and transmitting the selected location information to the portable electronic device. | When a geofence is crossed, the system determines the condition has been met, selects location information (e.g., store location) based on the device's real-time position and user preferences, and transmits it to the device. The complaint provides a screenshot of the Macy's application interface, which describes beacon-powered in-store deal alerts and proximity targeting to deliver promotional messages (Compl. p. 6, Image). | ¶19 | col. 2:9-20 |

  • Identified Points of Contention:
    • Scope Questions: A primary question may be whether the accused application's functionality for enabling location-based notifications satisfies the claim limitation requiring a user to set "preference settings for categories of information and location range." The dispute may turn on whether a general opt-in for marketing alerts is equivalent to the more granular user control (e.g., selecting "weather" and a "10-kilometer radius") described in the patent's specification (’970 Patent, col. 6:40-52).
    • Technical Questions: The complaint maps the accused system to the patent's distinct "condition database" and "user preference settings database" architecture (’970 Patent, Fig. 1). A key factual question for the court will be whether the Macy's system, which may be a more integrated and dynamic advertising platform, actually contains the specific, discrete modules as claimed, or if its architecture differs in a way that negates literal infringement.

V. Key Claim Terms for Construction

  • The Term: "preference settings for categories of information and location range"
  • Context and Importance: The construction of this term appears central to the infringement analysis. If interpreted broadly to include a user's general consent to receive location-based promotions, the infringement case may be strengthened. If construed narrowly to require a user interface for explicitly defining distinct information categories (e.g., "coupons for shoes," "store event alerts") and a specific geographic range (e.g., "within 5 miles"), the plaintiff would face a higher evidentiary burden. Practitioners may focus on this term because it appears to be the primary mechanism for user customization, a key feature distinguished from the prior art.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: Claim 1 itself does not specify the degree of granularity required for the "categories" or "range," which could support an argument that any user-enabled location-based filtering meets the limitation (’970 Patent, col. 8:17-20).
    • Evidence for a Narrower Interpretation: The specification provides more concrete examples, such as a user selecting "categories of information, such as weather and traffic conditions and local events" and specifying a "location range" by defining a "radius distance from the location of the portable electronic device" (’970 Patent, col. 6:35-44). These embodiments may be used to argue that the claim requires a more specific and granular level of user input than a simple opt-in.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges that Macy's induces infringement by providing the Macy's Mobile Application to its customers and providing instructions on its website and in product literature that encourage use in an infringing manner (Compl. ¶¶21, 23).
  • Willful Infringement: Willfulness is alleged based on both post-suit and pre-suit conduct. The complaint alleges knowledge at least as of the filing of the lawsuit (Compl. ¶22). It further alleges pre-suit willful blindness, asserting that Macy's "adopted a policy of not reviewing the patents of others" despite a "high probability" that it would learn of its infringement, particularly after the patent's issuance (Compl. ¶22).

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

  • A core issue will be one of definitional scope: can the act of enabling location-based promotional alerts within a retail application be construed as a user establishing "preference settings for categories of information and location range" as required by claim 1, or does the claim demand a more explicit and granular user-customization interface?
  • A key evidentiary question will be one of architectural correspondence: does the accused Macy's system operate using the distinct "condition database" and "user preference settings database" architecture recited in the patent, or is there a fundamental mismatch between the claimed system and the technical implementation of the accused product that could preclude a finding of infringement?
  • The recent confirmation of claim 1's patentability in an ex parte reexamination raises the question of how much weight the court will give this procedural history in assessing both validity challenges and the potential for a finding of willful infringement.