Famous Group Tech Inc v. Cue Audio Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: The Famous Group Technologies Inc. (Delaware)
  • Defendant: Cue Audio, Inc. (Delaware)
  • Plaintiff’s Counsel: Jackson Walker LLP; Buchalter APC
• Case Identification: 3:24-cv-01173, N.D. Tex., 05/16/2024
• Venue Allegations: Plaintiff alleges venue is proper in the Northern District of Texas because Defendant resides in the district, maintains a regular and established place of business, has committed alleged acts of infringement there, and a substantial part of the events giving rise to the claims occurred in the district.
• Core Dispute: Plaintiff alleges that Defendant’s PostUp and FanSee products, used for live event fan engagement, infringe patents related to integrating social media content into dynamic 3D scenes and managing virtual fan experiences.
• Technical Context: The technology at issue involves systems for enhancing live events by integrating real-time, user-generated content (such as social media posts or live video streams) into large-scale, interactive venue displays.
• Key Procedural History: The complaint emphasizes the prosecution history of both asserted patents, noting that the claims were allowed by the USPTO after examination under post-Alice § 101 guidance. Plaintiff presents this history as evidence that the claims are directed to patent-eligible, inventive concepts rather than abstract ideas.

Case Timeline

Date	Event
2015-02-13	U.S. Patent No. 10,482,660 Priority Date
2015-01-01	Plaintiff's "Vixi Social" product created
2019-11-19	U.S. Patent No. 10,482,660 Issued
2019-11-30	Defendant's alleged notice of '660 Patent begins
2020-10-16	U.S. Patent No. 11,736,545 Priority Date
2023-08-22	U.S. Patent No. 11,736,545 Issued
2023-11-30	Defendant's alleged notice of '545 Patent begins
2024-05-16	Complaint Filed

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

U.S. Patent No. 10,482,660 - "System and Method to Integrate Content in Real Time into a Dynamic Real-Time 3-Dimensional Scene"

• Patent Identification: U.S. Patent No. 10,482,660, “System and Method to Integrate Content in Real Time into a Dynamic Real-Time 3-Dimensional Scene,” issued November 19, 2019.
• The Invention Explained:
  • Problem Addressed: The patent describes a failure of prior systems to provide a truly dynamic 3D platform capable of integrating real-time social media content into customized 3D experiences, such as for live events ('660 Patent, col. 2:3-14).
  • The Patented Solution: The invention proposes a system featuring a "content integrating engine" that retrieves social media posts, maps the content onto geometric 3D tiles within a "Social Wall," and animates a selected tile in a specific manner. The animation involves changes in size, rotation, and a distinct movement path where the tile starts "within" the 3D grid background and ends "above" it, creating an interactive and visually dynamic display ('660 Patent, Abstract; col. 9:45-66).
  • Technical Importance: The technology enables the creation of large-scale, interactive displays that can incorporate live social media content in real-time, offering a more engaging fan experience than static or pre-rendered visuals (Compl. ¶¶ 33-34).
• Key Claims at a Glance:
  • The complaint asserts at least independent claim 1 and reserves the right to assert others (Compl. ¶ 59).
  • Essential elements of independent claim 1 include:
    • An external server with a content management system to search and select a subset of social media posts.
    • A device comprising a content integrating engine that generates a 3D grid background.
    • The engine maps media contents (text or 2D image) from the posts onto a plurality of 3D tiles.
    • The engine causes the 3D tiles to be displayed on at least a front face.
    • The engine causes a select 3D tile to be animated, which includes increasing its size and performing rotational and x, y, z coordinate changes.
    • The animation follows a specific path where "the start position of the select 3D tile is within the 3D grid background and the end position of the select 3D tile is above the 3D grid on a z-axis."
    • A display device to show the animated tile.

U.S. Patent No. 11,736,545 - "Client User Interface for Virtual Fan Experience"

• Patent Identification: U.S. Patent No. 11,736,545, “Client User Interface for Virtual Fan Experience,” issued August 22, 2023.
• The Invention Explained:
  • Problem Addressed: The patent addresses the challenge of bringing the energy and presence of remote fans into a live event venue, a problem highlighted by the COVID-19 pandemic ('545 Patent, col. 1:25-33).
  • The Patented Solution: The invention is a system for managing a virtual fan experience. It receives notifications about a user's registration and selection, communicates the user's live video feed to a broadcasting platform for integration into a "virtual seat," and updates the user's interface in real-time to reflect the status of their participation. The system also uses "policies" to determine the "prominence" of a user's virtual seat in the broadcast ('545 Patent, Abstract; col. 2:1-17).
  • Technical Importance: The system provides the technological framework for creating large-scale, interactive virtual audiences, allowing remote fans to be integrated into live event broadcasts in a managed and curated way (Compl. ¶¶ 49-50).
• Key Claims at a Glance:
  • The complaint asserts at least independent claim 1 and reserves the right to assert others (Compl. ¶ 70).
  • Essential elements of independent claim 1 include:
    • A system that receives a notification that a user has successfully registered for a live event.
    • Communicating a live video feed from the user's device to a live event broadcasting platform.
    • Receiving a notification that the user's feed has been selected for integration into a virtual seat.
    • Causing a notification of the selection to be presented in real-time on the user's interface.
    • Integrating the feed, which includes "determining a prominence of the virtual seat" based on "one or more policies."
    • Receiving a notification that the integration has occurred.
    • Causing the user's interface to be updated in real-time to reflect the integration.

III. The Accused Instrumentality

Product Identification

• The complaint names Defendant’s "PostUp" and/or "FanSee" products, collectively referred to as the "Accused Products" (Compl. ¶ 2).

Functionality and Market Context

• The complaint alleges that the Accused Products "embody the patented technology" and are used to enhance fan engagement at sports and entertainment venues (Compl. ¶¶ 2, 23). The PostUp product is accused of infringing the ’660 Patent, suggesting it is a system for displaying social media content in a 3D format (Compl. ¶ 58). The FanSee product is accused of infringing the ’545 Patent, suggesting it is a system for integrating live fan video feeds into broadcasts (Compl. ¶ 69). The complaint does not provide specific technical details about the operation of the Accused Products, instead referencing exhibits not attached to the pleading. No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

The complaint alleges that the "PostUp Accused Product" infringes at least claim 1 of the ’660 Patent and the "FanSee Accused Product" infringes at least claim 1 of the ’545 Patent (Compl. ¶¶ 59, 70). However, the pleading supports these allegations by referencing Exhibits C and D, which were not filed with the complaint. The complaint's narrative does not provide sufficient factual detail to construct a claim chart or analyze the specific mapping of accused product features to claim elements.

’660 Patent Infringement Allegations

• Identified Points of Contention:
  • Scope Questions: A primary point of contention may be the claim limitation requiring a select tile's animation to start "within the 3D grid background" and end "above the 3D grid on a z-axis." This specific trajectory was highlighted during prosecution (Compl. ¶ 29). The infringement analysis will question whether the accused PostUp product's animations precisely match this claimed geometric path or if they follow a different, non-infringing animation sequence (e.g., flying in from off-screen).
  • Technical Questions: Claim 1 recites a "content integrating engine" that performs a set of discrete functions. The case may raise the question of whether the accused product's architecture includes an analogous, identifiable "engine" or if its functions are performed by a distributed system that does not map onto the claimed structure.

’545 Patent Infringement Allegations

• Identified Points of Contention:
  • Scope Questions: The phrase "determining a prominence of the virtual seat... based on one or more policies" is central to claim 1. A dispute is likely to arise over the definition of these terms. Questions for the court may include whether any algorithm for selecting which fan to display constitutes a "policy" and "determining prominence," or if these terms require a more specific set of explicit, human-defined rules as described in the patent's specification.
  • Technical Questions: The claim requires a specific sequence of receiving and processing notifications (registration, selection, integration). Evidence will be needed to determine if the accused FanSee system uses this exact sequence of discrete signals to manage the user experience, or if it employs a different, state-based, or continuous data flow architecture that does not align with the claimed method steps.

V. Key Claim Terms for Construction

Term from ’660 Patent, Claim 1: "wherein the start position of the select 3D tile is within the 3D grid background and the end position of the select 3D tile is above the 3D grid on a z-axis"

• Context and Importance: This limitation appears to be a key element added to overcome prior art during prosecution, as acknowledged in the complaint (Compl. ¶ 29). Its construction will be critical, as a narrow, literal interpretation could make non-infringement easier to establish if the accused product's animation deviates even slightly from this path.
• Intrinsic Evidence for a Broader Interpretation: The patent's general description of a dynamic 3D environment might be argued to support a less rigid interpretation of the tile's path.
• Intrinsic Evidence for a Narrower Interpretation: The specification describes tiles animating "onto the main 3D tile grid on the z-axis" ('660 Patent, col. 9:41-42) and other tiles folding "back into the surface of the 3D grid" ('660 Patent, col. 11:3-4). This language, combined with the plaintiff's own emphasis on the limitation's role in securing the patent, suggests the patentee intended a precise, literal geometric meaning.

Term from ’545 Patent, Claim 1: "determining a prominence of the virtual seat... based on one or more policies"

• Context and Importance: Practitioners may focus on this term because it defines the "intelligent" aspect of the claimed system. Its definition will determine whether a wide range of content-curation algorithms infringe or if only systems using specific types of rules fall within the claim's scope.
• Intrinsic Evidence for a Broader Interpretation: The patent discloses that policies can be used to ensure fans are appropriately positioned and to manage different tiers of access (e.g., VIPs), suggesting "policies" could encompass a variety of rules related to visual quality, user status, or other criteria ('545 Patent, col. 8:49-54; col. 9:30-44).
• Intrinsic Evidence for a Narrower Interpretation: A defendant may argue that "policies" should be limited to the specific types of rules disclosed in the embodiments, such as those related to geotargeting, attire, or VIP status ('545 Patent, col. 6:39-47; col. 8:19-33). This could support a narrower construction that excludes more general algorithmic sorting or selection criteria.

VI. Other Allegations

• Indirect Infringement: The complaint alleges both inducement and contributory infringement for both patents (Compl. ¶¶ 61, 72). The factual basis for inducement is the allegation that Defendant provides the Accused Products "with knowledge of or willful blindness to the fact that its actions will induce... partners and end users to infringe" (Compl. ¶¶ 63, 74). The complaint does not cite specific evidence of intent, such as user manuals or marketing materials.
• Willful Infringement: Willfulness allegations are based on alleged pre-suit knowledge of the patents. The complaint alleges Defendant had notice of the ’660 Patent "since at least November 2019" and of the ’545 Patent "since at least November 2023" (Compl. ¶¶ 9, 14). Plaintiff seeks treble damages based on the alleged "intentional and willful nature" of the infringement (Compl., Prayer for Relief ¶ C).

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

• A central issue will be one of patent eligibility and technical specificity: Given the complaint's focus on the prosecution history, a key question for the court will be whether the asserted claims, particularly their specific limitations regarding animation paths and policy-based prominence, represent a concrete technical improvement sufficient to overcome a potential challenge that they are directed to abstract ideas implemented with conventional technology.
• A key infringement question will be one of precise compliance: Does the accused PostUp product's animation of content tiles adhere to the specific, multi-part geometric trajectory required by the ’660 patent, a limitation that appears critical to its validity?
• A core dispute will be one of definitional scope: Can the accused FanSee product's algorithm for selecting fan video feeds be properly characterized as "determining a prominence... based on... policies" as claimed in the ’545 patent, and does its system rely on the particular sequence of discrete notifications recited in the claim?