DCT

6:21-cv-00428

EcoFactor Inc v. ecobee Inc

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Key Events
Complaint

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 6:21-cv-00428, W.D. Tex., 04/28/2021
  • Venue Allegations: Plaintiff alleges venue is proper because Defendant is a foreign corporation subject to suit in any district and has transacted business and committed infringing acts in the Western District of Texas, including partnering with Austin Energy to offer incentives for customers to purchase the accused products.
  • Core Dispute: Plaintiff alleges that Defendant’s smart thermostat systems infringe four U.S. patents related to intelligent HVAC control, energy efficiency, and adaptive programming.
  • Technical Context: The technology at issue involves smart home energy management systems that use data analytics, environmental inputs, and user behavior to optimize HVAC performance for energy savings and comfort.
  • Key Procedural History: The complaint does not reference any prior litigation, Inter Partes Review (IPR) proceedings, or licensing history related to the Asserted Patents.

Case Timeline

Date Event
2007-09-17 Earliest Priority Date Claimed (’186 Patent)
2009-05-11 Earliest Priority Date Claimed (’100 Patent)
2009-05-12 Earliest Priority Date Claimed (’597 Patent)
2010-05-26 Earliest Priority Date Claimed (’890 Patent)
2014-06-03 ’100 Patent Issued
2014-06-10 ’186 Patent Issued
2015-11-24 ’597 Patent Issued
2020-03-10 ’890 Patent Issued
2021-04-28 Complaint Filed

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

U.S. Patent No. 8,740,100 - “System, Method and Apparatus for Dynamically Variable Compressor Delay in Thermostat to Reduce Energy Consumption”

  • Patent Identification: U.S. Patent No. 8,740,100, titled “System, Method and Apparatus for Dynamically Variable Compressor Delay in Thermostat to Reduce Energy Consumption,” issued on June 3, 2014 (Compl. ¶16).

The Invention Explained

  • Problem Addressed: Traditional thermostats use a fixed compressor delay to prevent rapid cycling that can damage HVAC equipment, but this fixed delay may not be optimal for energy efficiency under varying environmental conditions (US 8,740,100 B2, col. 2:1-40).
  • The Patented Solution: The invention proposes a thermostatic controller with at least two settings for the compressor delay: a first, shorter interval and a second, longer interval. A processor evaluates parameters, including the outside temperature, to determine whether to adopt the shorter or longer delay, thereby dynamically managing the HVAC system’s cycling behavior to reduce energy consumption (US 8,740,100 B2, Abstract; col. 4:40-67).
  • Technical Importance: This approach allows a thermostat to adapt its protective cycling behavior to external conditions, potentially saving energy by allowing longer "off" cycles when thermal loads are high without sacrificing comfort or equipment safety (US 8,740,100 B2, col. 3:1-4:12).

Key Claims at a Glance

  • The complaint does not identify the specific independent claims asserted from the ’100 Patent. It refers generally to "claims of the '100 Patent" and an associated claim chart in Exhibit 2, which was not filed with the complaint (Compl. ¶¶17, 21).

U.S. Patent No. 8,751,186 - “System and Method for Calculating the Thermal Mass of a Building”

  • Patent Identification: U.S. Patent No. 8,751,186, titled “System and Method for Calculating the Thermal Mass of a Building,” issued on June 10, 2014 (Compl. ¶26).

The Invention Explained

  • Problem Addressed: Conventional thermostats do not account for a building's unique thermal properties (its "thermal mass"), which dictates how quickly it heats up or cools down. This lack of information leads to inefficient and sub-optimal HVAC control (US 8,751,186 B2, col. 1:21-44).
  • The Patented Solution: The invention describes a system that calculates a building's effective thermal mass by obtaining temperature measurements from inside the building, receiving outside temperature data from a separate source (e.g., a weather service), and comparing the actual inside temperature changes to expected changes based on historical data. This allows the system to calculate rates of temperature change and model the building's thermal performance ('186 Patent, Abstract; col. 4:1-15).
  • Technical Importance: By quantifying a building's thermal mass, an HVAC control system can more accurately predict heating/cooling needs, leading to more efficient energy use and improved comfort ('186 Patent, col. 3:1-12).

Key Claims at a Glance

  • The complaint does not identify the specific independent claims asserted from the ’186 Patent. It refers to an associated claim chart in Exhibit 4, which was not filed with the complaint (Compl. ¶¶27, 31).

U.S. Patent No. 9,194,597 - “System, Method and Apparatus for Identifying Manual Inputs to and Adaptive Programming of a Thermostat”

  • Patent Identification: U.S. Patent No. 9,194,597, titled “System, Method and Apparatus for Identifying Manual Inputs to and Adaptive Programming of a Thermostat,” issued on November 24, 2015 (Compl. ¶36).
  • Technology Synopsis: The ’597 Patent addresses systems for making a smart thermostat's programming adaptive. The disclosed technology identifies when a user manually overrides a pre-set schedule by comparing the actual setpoint to the expected setpoint, and then applies rules to interpret that manual input and incorporate it into future programming, thereby learning user preferences over time ('597 Patent, Abstract).
  • Asserted Claims: The specific claims asserted are not identified in the complaint (Compl. ¶37).
  • Accused Features: The complaint accuses the ecobee3 lite and ecobee SmartThermostat with Voice Control of infringement, implicating their smart scheduling and learning capabilities (Compl. ¶¶12-13, 37).

U.S. Patent No. 10,584,890 - “System and Method for Using a Mobile Electronic Device to Optimize an Energy Management System”

  • Patent Identification: U.S. Patent No. 10,584,890, titled “System and Method for Using a Mobile Electronic Device to Optimize an Energy Management System,” issued on March 10, 2020 (Compl. ¶46).
  • Technology Synopsis: The ’890 Patent describes using the geographic location of a networked mobile electronic device (e.g., a smartphone) to infer the occupancy status of a building. Based on whether the device's location indicates the user is home or away, the system automatically adjusts the thermostat's setpoint to reduce energy consumption by avoiding the unnecessary conditioning of an empty space ('890 Patent, Abstract).
  • Asserted Claims: The specific claims asserted are not identified in the complaint (Compl. ¶47).
  • Accused Features: The complaint accuses the ecobee3 lite and ecobee SmartThermostat with Voice Control, implicating their connectivity with mobile applications and use of remote sensors and location data to manage temperature settings (Compl. ¶¶12-13, 47).

III. The Accused Instrumentality

Product Identification

  • The complaint names the "ecobee3 lite" and "ecobee SmartThermostat with Voice Control" as representative Accused Products. The allegations extend more broadly to "smart thermostat systems, smart HVAC systems, smart HVAC control systems, and all components (including accessories) thereof offered for sale by Defendant" (Compl. ¶¶10, 17).

Functionality and Market Context

  • The complaint describes the Accused Products as forming a smart thermostat system when connected as designed (Compl. ¶12). This system comprises a "frontend" device (the thermostat) and a "backend" network of servers and data centers maintained by the Defendant (Compl. ¶13). The products connect to the internet to communicate with Defendant's servers, can be controlled remotely via web or mobile applications, and are marketed as providing features that analyze thermostat and HVAC data (Compl. ¶¶11-13).

IV. Analysis of Infringement Allegations

The complaint alleges that the Accused Products satisfy all limitations of claims of the Asserted Patents but references claim chart exhibits that were not provided with the complaint (Compl. ¶¶21, 31, 41, 51). In the absence of these exhibits, the infringement theory is based on the narrative descriptions of the accused system's functionality. The complaint alleges that the combination of the ecobee thermostats with Defendant's backend servers and software practices the patented methods (Compl. ¶¶12-13).

No probative visual evidence provided in complaint.

  • Identified Points of Contention:
    • ’100 Patent (Compressor Delay): A potential point of contention may be whether the ecobee system's software and hardware actually implement a dynamically variable compressor delay that is adjusted based on external parameters like outside temperature, as opposed to using a fixed or user-selectable delay.
    • ’186 Patent (Thermal Mass): The analysis may turn on the specific method the ecobee system uses to model a home's thermal characteristics. A key question is whether the accused system's process for learning how a home heats and cools meets the claim elements requiring the calculation of a "thermal mass" based on a comparison of inside temperature, outside temperature, and historical HVAC performance data.

V. Key Claim Terms for Construction

The complaint does not provide sufficient detail for analysis of key claim terms as it does not identify the specific claims asserted from any of the patents-in-suit.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges both induced and contributory infringement for all four asserted patents. Inducement is alleged on the basis that Defendant provides user manuals and online instructions that encourage customers to use the Accused Products in an infringing manner, with knowledge of the patents at least from the filing of the complaint (e.g., Compl. ¶¶19, 29). Contributory infringement is alleged on the grounds that the Accused Products are especially made for use in an infringing manner and are not staple articles of commerce suitable for substantial noninfringing use (e.g., Compl. ¶¶20, 30).
  • Willful Infringement: The complaint alleges that Defendant has had knowledge of its infringement "Through at least the filing and service of this Complaint" and continues its accused activities despite this knowledge (e.g., Compl. ¶¶19, 29). The prayer for relief requests "enhanced damages," a remedy associated with findings of willful infringement (Compl. p. 16, ¶c).

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

  1. Evidentiary Basis: The complaint makes broad allegations that the accused systems practice the patented methods, but it relies on unattached exhibits for the element-by-element proof. A primary issue for the case will be whether discovery produces technical evidence—such as source code, system architecture diagrams, and internal technical documentation—demonstrating that the ecobee backend software and thermostat firmware actually perform the specific steps recited in the asserted claims for calculating thermal mass, varying compressor delay, adapting schedules, and using geolocation for occupancy detection.

  2. Claim Scope and System Architecture: The dispute will likely involve the scope of the patent claims relative to the distributed architecture of the accused system. A key question will be whether the claims, which describe methods and systems for HVAC control, can be read to cover a system where some functions are performed by the local thermostat and others are performed by Defendant's remote cloud servers. This raises potential issues of divided infringement and claim construction concerning the definition of the claimed "system" or "controller."