DCT

5:23-cv-00112

Fall Line Patents LLC v. Chick Fil A Inc

Key Events
Complaint
complaint

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 5:23-cv-00112, E.D. Tex., 10/13/2023
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant transacts business in the district and maintains a regular and established place of business, citing a specific restaurant location in Texarkana, Texas.
  • Core Dispute: Plaintiff alleges that Defendant’s Chick-fil-A Mobile App infringes a patent related to methods for managing and collecting location-specific data from remote computing devices.
  • Technical Context: The technology concerns systems for creating device-independent applications that can be updated dynamically and customized based on a user's geographic location, a foundational concept for modern mobile application ecosystems.
  • Key Procedural History: The complaint notes that the patent-in-suit was previously litigated in Fall Line Patents, LLC v. Zoe's Kitchen, Inc., where the court denied a motion to dismiss and later granted Fall Line's motion for summary judgment of validity under 35 U.S.C. § 101. The patent has also survived Inter Partes Review (IPR) proceedings where the single asserted claim in this case, Claim 7, was found patentable, while other claims were cancelled.

Case Timeline

Date Event
2002-08-19 '748 Patent Priority Date
2016-09-27 '748 Patent Issue Date
2017-10-06 IPR2018-00043 Filing Date
2019-01-22 IPR2019-00610 Filing Date
2021-05-25 Order Denying Motion to Dismiss in Zoe's Kitchen Case
2023-06-29 Order Granting Summary Judgment of Validity in Zoe's Kitchen Case
2023-10-13 Complaint Filing Date

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

U.S. Patent No. 9,454,748 - "System and Method for Data Management"

  • Patent Identification: U.S. Patent No. 9,454,748, "System and Method for Data Management," issued September 27, 2016.

The Invention Explained

  • Problem Addressed: At the time of the invention, developing software for handheld computers was challenging due to a fragmented landscape of incompatible hardware and operating systems, requiring custom programs for each device type (Compl. ¶7, ¶22; ’748 Patent, col. 1:49-2:2). Furthermore, making changes to these programs required recompiling and reloading the entire application, and the intermittent, low-bandwidth network connections of the era made data transfer and updates difficult (Compl. ¶22, ¶24; ’748 Patent, col. 3:7-10, 3:64-4:1).
  • The Patented Solution: The invention proposes a method to overcome these problems by creating a "questionnaire" using device-independent "tokens" on a central server (Compl. ¶25; ’748 Patent, col. 2:13-26). This tokenized questionnaire can be executed by a simple runtime program on various remote devices, allowing for cross-platform compatibility and enabling incremental updates without reloading the entire application ('748 Patent, col. 5:21-32). The system is designed for "loosely networked" environments, storing data locally when a connection is unavailable and transmitting it when restored ('748 Patent, col. 5:7-12). A key feature is the use of an "integral GPS" on the remote device to automatically provide location information for customizing the questionnaire or as a response within it (Compl. ¶27; ’748 Patent, col. 10:55-65).
  • Technical Importance: This approach provided a framework for deploying dynamic, location-aware data collection applications across a variety of early mobile devices in a more efficient and scalable manner than prior art custom programming methods (Compl. ¶7, ¶25).

Key Claims at a Glance

  • The complaint specifically alleges infringement of independent Claim 7 (’748 Patent, col. 15:46-16:6; Compl. ¶11).
  • The essential elements of Claim 7 are:
    • A method for collecting survey data and making responses available via the Internet, comprising:
    • Designing a questionnaire customized for a particular location with branching logic on a first computer platform, where at least one question requests location identifying information.
    • Automatically transferring the questionnaire to a "loosely networked computer" with an integral GPS.
    • When the computer is at the particular location, executing the questionnaire to collect user responses.
    • While executing, using the GPS to automatically provide location information as a response.
    • Automatically transferring collected responses in real time via the loose network to a central computer.
    • Making the transferred responses available via the Internet.
  • The prayer for relief seeks judgment on "one or more claims," but the body of the complaint only identifies Claim 7 for infringement allegations (Compl. ¶11, ¶a).

III. The Accused Instrumentality

Product Identification

  • The Chick-fil-A Mobile App in conjunction with Chick-fil-A's servers (Compl. ¶10).

Functionality and Market Context

  • The complaint alleges that the accused system allows Defendant to "create and execute a location-specific questionnaire to collect responses from users" (Compl. ¶10). The Chick-fil-A Mobile App is used by customers to find restaurant locations and to place orders for pickup at those locations (Compl. ¶5). The complaint does not provide further technical detail regarding the app's specific operation or architecture.

IV. Analysis of Infringement Allegations

No probative visual evidence provided in complaint.

  • Claim Chart Summary: The complaint makes a general infringement allegation without mapping specific features to claim elements. The following chart is based on the single substantive allegation in Paragraph 10.

'748 Patent Infringement Allegations

Claim Element (from Independent Claim 7) Alleged Infringing Functionality Complaint Citation Patent Citation
(a) designing a questionnaire including at least one question said questionnaire customized for a particular location having branching logic… The complaint alleges Chick-fil-A's system creates a "location-specific questionnaire." This implies a design process for the app's ordering interface, which presents menu items and options specific to a chosen restaurant location. ¶10 col. 8:40-65
(b) automatically transferring said designed questionnaire to at least one loosely networked computer having a GPS integral thereto… The user's mobile device (a "loosely networked computer") downloads or updates the Chick-fil-A Mobile App (the "questionnaire") from an app store, which is then stored and executed on the device. ¶10 col. 9:3-13
(c) when said loosely networked computer is at said particular location, executing said transferred questionnaire… collecting responses from the user… The mobile app is executed by a user to select a restaurant, browse a menu, and place an order (the "responses") when the user is at or near a specific Chick-fil-A location. ¶5, ¶10 col. 10:55-65
(d) while said transferred questionnaire is executing, using said GPS to automatically provide said location identifying information as a response… The mobile app uses the device's location services (GPS) to identify nearby restaurants, which the claim frames as providing location information "as a response to said executing questionnaire." ¶10 col. 15:56-61
(e) automatically transferring via the loose network any responses so collected in real time to a central computer… The user's order information ("responses") is transmitted from the mobile app over a cellular or Wi-Fi network (the "loose network") to Chick-fil-A's servers (the "central computer"). ¶10 col. 5:7-12
(f) making available via the Internet any responses transferred to said central computer in step (e). The complaint does not provide sufficient detail for analysis of this element, which relates to how the collected data is made available for review (e.g., to restaurant operators). N/A col. 15:62-67
  • Identified Points of Contention:
    • Scope Questions: A central dispute may arise over whether a modern mobile e-commerce interface, such as an order-and-pay food application, constitutes a "questionnaire" for collecting "survey data" as those terms are used in the patent. The defense may argue the patent is directed at information-gathering tools (like the "mystery shopper" example), not transactional platforms.
    • Technical Questions: The complaint does not specify how the accused app uses location data "as a response to said executing questionnaire" (element d), versus using location data as a preliminary step to select a restaurant before the main ordering "questionnaire" begins. The precise timing and function of the GPS usage will likely be a point of factual dispute.

V. Key Claim Terms for Construction

  • The Term: "questionnaire"

    • Context and Importance: This term's construction is fundamental. If a mobile ordering menu is not a "questionnaire," the entire infringement theory may fail. Practitioners may focus on this term because the patent's examples seem to describe survey-like instruments rather than transactional interfaces.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: The specification states that the terms "program" and "form" are used interchangeably with "questionnaire," and describes it broadly as a "series of questions or statements, each of which calls for a response" ('748 Patent, col. 8:26-39). This could arguably encompass a food menu that presents a series of choices to a user.
      • Evidence for a Narrower Interpretation: The detailed "mystery shopper" embodiment describes a classic survey designed to collect qualitative and quantitative data for analysis, not to facilitate a commercial transaction ('748 Patent, col. 10:37-11:27). This suggests a more limited meaning tied to data gathering and reporting.
  • The Term: "loosely networked computer"

    • Context and Importance: The definition of this term determines whether modern smartphones, with near-ubiquitous connectivity, operate in the environment contemplated by the patent.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: The patent defines the term functionally as a system "tolerant of intermittent network connections" where data can be stored locally and transmitted later when a connection is restored ('748 Patent, col. 5:4-12). Since any mobile device can lose its connection, this could be read to include modern smartphones.
      • Evidence for a Narrower Interpretation: The patent's background section discusses the state of technology in 2002, where intermittent and slow connections were a primary technical hurdle ('748 Patent, col. 3:64-4:17). A party could argue the term should be limited to devices designed for environments where reliable connectivity is not the default expectation.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges inducement by asserting that Defendant provides instructions and encourages customers to use the app in an infringing manner (Compl. ¶15). It further alleges contributory infringement, claiming the app has special features designed for infringement with no substantial non-infringing use (Compl. ¶16). These allegations lack specific factual support.
  • Willful Infringement: Willfulness is alleged based on Defendant’s knowledge of the patent as of the filing of the complaint (Compl. ¶17). Plaintiff also alleges willful blindness, claiming on information and belief that Defendant has a policy of not reviewing the patents of others (Compl. ¶18).

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

  • A core issue will be one of definitional scope: can the term "questionnaire", rooted in the patent's context of survey data collection from the early 2000s, be construed to read on a modern, transactional e-commerce application used for ordering and payment?
  • A key evidentiary question will be one of technical implementation: does the accused app's use of GPS data function "as a response" within the claimed method's sequence, or does it merely serve as a preliminary location-finding tool outside the patented process? The sparseness of technical facts in the complaint leaves this as a central open question.
  • A significant factor influencing the case's trajectory will be the procedural history: how will the asserted claim's survival of an IPR challenge, combined with prior favorable judicial rulings on its patent-eligibility, impact the parties' litigation strategies and valuation of the case?