DCT

6:21-cv-00898

AlmondNet Inc v. Amazon.com Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 6:21-cv-00898, W.D. Tex., 08/27/2021
  • Venue Allegations: Plaintiff alleges venue is proper based on Defendant maintaining a regular and established place of business in the district, specifically an Amazon Tech Hub located in Austin, Texas.
  • Core Dispute: Plaintiff alleges that Defendant’s advertising platform infringes ten U.S. patents related to foundational methods for targeted internet advertising, user profiling, and cross-platform ad delivery.
  • Technical Context: The patents address core technologies in the digital advertising ecosystem, including methods for tracking user behavior, creating user profiles, and leveraging those profiles to serve targeted advertisements on third-party websites.
  • Key Procedural History: The complaint alleges that Plaintiff and Defendant communicated regarding Plaintiff’s patent portfolio, including the asserted patents, in 2019. This alleged pre-suit notification forms the basis for Plaintiff's claims of willful infringement.

Case Timeline

Date Event
1999-12-13 Earliest Priority Date ('582', '249', '307' Patents)
2000-11-28 Earliest Priority Date ('586', '639', '089', '615' Patents)
2006-06-16 Earliest Priority Date ('146', '139' Patents)
2006-06-19 Earliest Priority Date ('398' Patent)
2010-10-26 Issue Date (U.S. Patent No. 7,822,639)
2011-07-12 Issue Date (U.S. Patent No. 7,979,307)
2012-08-14 Issue Date (U.S. Patent No. 8,244,586)
2012-08-14 Issue Date (U.S. Patent No. 8,244,582)
2014-03-11 Issue Date (U.S. Patent No. 8,671,139)
2014-03-18 Issue Date (U.S. Patent No. 8,677,398)
2014-07-08 Issue Date (U.S. Patent No. 8,775,249)
2015-02-17 Issue Date (U.S. Patent No. 8,959,146)
2016-11-29 Issue Date (U.S. Patent No. 9,508,089)
2017-11-28 Issue Date (U.S. Patent No. 9,830,615)
2019-01-01 Pre-suit communication alleged to have occurred "in the 2019 time frame"
2021-08-27 Complaint Filing Date

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

U.S. Patent No. 8,244,586 - "Computerized systems for added-revenue off-site targeted internet advertising"

  • Patent Identification: U.S. Patent No. 8,244,586, "Computerized systems for added-revenue off-site targeted internet advertising," issued August 14, 2012.

The Invention Explained

  • Problem Addressed: The patent describes a financial limitation faced by media properties, such as websites, which have a finite amount of space for advertisements. Once this inventory is sold, the media property reaches a "saturation" point and cannot generate additional advertising revenue, even if more advertisers wish to reach its audience ('639 Patent, col. 2:22-28).
  • The Patented Solution: The invention proposes a "super-saturation" method where a first media site ("first broadcaster") that is at or near its advertising capacity can still monetize its audience. It does so by "tagging" its visitors (e.g., with a cookie). When that tagged visitor later browses a second, different media site ("second broadcaster"), the second site recognizes the tag and displays an advertisement intended for the first site's audience. This system, coordinated by a facilitator, creates an "off-site" advertising revenue stream for the first media site while also generating revenue for the second site from its unsold ad space ('639 Patent, Abstract; col. 5:32-54).
  • Technical Importance: This technology describes a foundational model for audience retargeting, where the valuable asset is the user's browsing history and inferred interests, rather than simply an ad slot on a particular webpage.

Key Claims at a Glance

  • The complaint asserts claims generally and references an independent claim in its incorporated exhibit (Compl. ¶¶11, 16). Independent claim 1 is analyzed as representative.
  • Claim 1 (System Claim) Elements:
    • A tangible computer system programmed to implement a method comprising:
    • Automatically creating records of visitor computers that visit a first Internet site, using a tag on each computer;
    • Automatically facilitating direction of an off-site advertisement to visitor computers visiting a second Internet site, based on determining via the tags that those computers have previously visited the first Internet site;
    • Wherein the advertisement is from a third-party advertiser and is targeted based on visitor profile information connected to the tag; and
    • Automatically causing the first Internet site to receive revenue from the off-site advertisement.
  • The complaint does not specify assertion of any dependent claims.

U.S. Patent No. 8,244,582 - "Method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements"

  • Patent Identification: U.S. Patent No. 8,244,582, "Method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued August 14, 2012.

The Invention Explained

  • Problem Addressed: The patent notes that commerce in digital information was historically focused on the sale of whole databases or records. This model lacked a mechanism for the granular buying and selling of individual attributes of information (e.g., a single data point like a user's interest in a specific product), which have discrete economic value for applications like targeted advertising ('307 Patent, col. 1:47-63).
  • The Patented Solution: The invention describes a method for a data marketplace or brokerage. A computer system receives a "partial profile" from a third party (e.g., a publisher website that has collected some data on its visitor via a URL redirection). The system then adds this partial profile to a maintained, larger profile for that entity. Crucially, the system also generates an electronic record of which third party contributed which specific profile attributes, enabling a system for tracking data provenance and facilitating compensation or royalty payments for the use of that data ('582 Patent, col. 17:49-62, Claim 1).
  • Technical Importance: This technology outlines a model for a Data Management Platform (DMP), where data from various sources can be aggregated to create richer user profiles, and where the sources of that data are tracked to enable a commercial ecosystem for data exchange.

Key Claims at a Glance

  • The complaint asserts claims generally and references an independent claim in its incorporated exhibit (Compl. ¶¶21, 26). Independent claim 1 is analyzed as representative.
  • Claim 1 (Method Claim) Elements:
    • An automated method of collecting profiles, comprising:
    • Electronically receiving at a computer system, from a server of an unaffiliated third party, a partial profile of an entity;
    • Wherein receiving the profile is achieved by an automatic electronic URL redirection from a webpage accessed by the entity;
    • Automatically adding the received partial profile to a maintained profile believed to relate to the same entity;
    • Automatically generating and storing a record of which third party contributed which particular profile attributes; and
    • Wherein the maintained profile includes data used for targeting third-party advertisements.
  • The complaint does not specify assertion of any dependent claims.

Multi-Patent Capsules

  • U.S. Patent No. 8,677,398: "System and methods for taking action with respect to one network-connected device based on activity on another device connected to the same network," issued March 18, 2014.

    • Technology Synopsis: This patent relates to cross-device targeting. It describes associating multiple devices (e.g., a computer and a television set-top box) that are connected to the same local network. Activity on one device (e.g., online browsing on the computer) can then be used to trigger an action, such as displaying a targeted advertisement, on the other device (the television).
    • Asserted Claims: The complaint asserts claims of the '398 patent generally (Compl. ¶31).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶31).

  • U.S. Patent No. 8,775,249: "Method, computer system, and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued July 8, 2014.

    • Technology Synopsis: This patent is from the same family as the '582 Patent. It describes a system and method for a data brokerage where a central databank accumulates profile attributes from various sources and tracks the source of each attribute to facilitate compensation when the data is used for targeting advertisements.
    • Asserted Claims: The complaint asserts claims of the '249 patent generally (Compl. ¶42).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶42).

  • U.S. Patent No. 7,979,307: "Method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued July 12, 2011.

    • Technology Synopsis: This patent is the parent of the '582 and '249 Patents. It discloses the core "descriptive-profile mercantile method" where a central system acts as a broker for partial profile data, allowing different entities to buy or sell information attributes to enrich user profiles for ad targeting.
    • Asserted Claims: The complaint asserts claims of the '307 patent generally (Compl. ¶52).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶52).

  • U.S. Patent No. 8,959,146: "Media properties selection method and system based on expected profit from profile-based ad delivery," issued February 17, 2015.

    • Technology Synopsis: This patent describes a method for programmatic ad buying. A system receives profile information about a user and calculates the "expected profit" from delivering a targeted ad to that user on various available media properties (websites). The profit calculation involves deducting the cost of ad space from the expected revenue. If a positive profit is anticipated, the system selects that media property and arranges to "tag" the user for future ad delivery there.
    • Asserted Claims: The complaint asserts claims of the '146 patent generally (Compl. ¶63).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶63).

  • U.S. Patent No. 8,671,139: "Media properties selection method and system based on expected profit from profile-based ad delivery," issued March 11, 2014.

    • Technology Synopsis: This patent is from the same family as the '146 Patent. It similarly describes a system for selecting where to place an advertisement by calculating the potential profit, weighing expected revenue against the cost of ad inventory on different media properties.
    • Asserted Claims: The complaint asserts claims of the '139 patent generally (Compl. ¶74).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶74).

  • U.S. Patent No. 7,822,639: "Added-revenue off-site targeted internet advertising," issued October 26, 2010.

    • Technology Synopsis: This patent is the parent of the '586 Patent. It discloses the core "super-saturation" method where a first website can monetize its audience on a second website's ad space by tagging its visitors and having those tags recognized on the second site for off-site ad delivery.
    • Asserted Claims: The complaint asserts claims of the '639 patent generally (Compl. ¶85).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶85).

  • U.S. Patent No. 9,508,089: "Method and systems for directing profile-based electronic advertisements via an intermediary ad network to visitors who later visit media properties," issued November 29, 2016.

    • Technology Synopsis: This patent describes a retargeting system involving three parties: a "behavioral targeting (BT) company," a "first website," and an "intermediary ad network." The BT company collects profile data on a visitor at the first website, then provides a "price cap" to the ad network, which controls ad space on other media properties. Later, when the visitor is on a property served by the ad network, the network can request and serve an ad from the BT company, with the transaction price not exceeding the cap.
    • Asserted Claims: The complaint asserts claims of the '089 patent generally (Compl. ¶96).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶96).

  • U.S. Patent No. 9,830,615: "Electronic ad direction through a computer system controlling ad space on multiple media properties based on a viewer's previous website visit," issued November 28, 2017.

    • Technology Synopsis: This patent, from the same family as the '089 patent, also describes a method of directing targeted ads based on a user's prior browsing history. It involves a computer system that receives profile information from a "first media property" and uses it to authorize an ad server controlling space on a "second media property" to display a targeted ad to that user.
    • Asserted Claims: The complaint asserts claims of the '615 patent generally (Compl. ¶107).
    • Accused Features: Amazon's advertising platform is accused of infringement (Compl. ¶107).

III. The Accused Instrumentality

  • Product Identification: The accused instrumentality is broadly identified as "Amazon's advertising platform" (Compl. ¶11).
  • Functionality and Market Context: The complaint does not provide specific technical details about the operation of the accused platform. It is generally alleged to be a system for delivering targeted advertising (Compl. ¶2). Such platforms typically operate by using tracking technologies (e.g., cookies, pixels) to monitor user activity on both the primary retailer's website (e.g., Amazon.com) and a network of third-party websites and applications. This activity data is used to build user profiles, which advertisers can then use to target advertisements to specific audiences across the network (Compl. ¶¶1, 2). The complaint alleges that Defendant makes, uses, offers for sale, sells, and/or imports these products in the United States (Compl. ¶11).

IV. Analysis of Infringement Allegations

The complaint alleges that the Accused Products satisfy all claim limitations but incorporates by reference external claim chart exhibits that were not filed with the complaint (Compl. ¶¶16, 26). The following analysis is based on the claim language and the generalized description of the accused instrumentality. No probative visual evidence provided in complaint.

'586 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
A tangible computer system programmed to implement a method... Amazon's advertising platform, which comprises servers, software, and other computing infrastructure. ¶16 col. 29:36-37
automatically creating records of a multitude of visitor computers that visit a first Internet site using a tag on each of such visitor computers; The platform's alleged use of cookies or other identifiers to track users who visit a first site, such as Amazon.com. ¶16 col. 29:40-43
automatically facilitating direction of at least one off-site advertisement to visitor computers visiting a second Internet site as a consequence of computer-determining, using the tags and the records, that the visitor computers have visited the first Internet site... The platform's alleged delivery of targeted advertisements on third-party websites (within Amazon's ad network) to users who were previously tagged on the first site. ¶16 col. 29:44-49
which off-site advertisement concerns at least one offering of a third-party advertiser that has paid to display said advertisement... and has displayable subject matter that is targeted to visitors of the first Internet site based on visitor profile information connected to the tag; The platform allegedly serves ads on behalf of paying advertisers, targeting them based on user profile data (e.g., prior browsing history) associated with the user's tag. ¶16 col. 29:49-56
and as a result of the acts in parts (a) and (b), automatically computer-causing the first Internet site to receive revenue from the off-site advertisement being directed to the visitor computers that have visited the first Internet site. The system by which Amazon allegedly earns revenue from advertisers for placing these off-site targeted ads. ¶16 col. 29:57-62
  • Identified Points of Contention:
    • Scope Questions: The infringement analysis may raise questions regarding the mapping of Amazon's business structure to the claim's roles. Does Amazon itself (e.g., Amazon.com) act as the "first Internet site" that both tags visitors and "receive[s] revenue," or are these functions distributed in a way that differs from the claimed structure?
    • Technical Questions: A central question will be evidentiary: the complaint provides no specific evidence showing how Amazon's platform uses "tags" and "records" to facilitate the direction of off-site advertisements in the specific manner required by the claim.

'582 Patent Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
An automated method of collecting profiles of Internet-using entities, the method comprising: electronically receiving at a programmed computer system...from at least one server controlled by one of a plurality of unaffiliated third parties, a partial profile of an entity... Amazon's advertising platform allegedly receives user data (partial profiles) from third-party publisher websites that are part of its advertising network. ¶26 col. 15:58 - col. 16:6
wherein receiving the partial profile is achieved as a result of automatic electronic URL redirection from a portion of a page of the website accessed by the user computer; The platform is alleged to use a "URL redirection" mechanism to collect this partial profile data from third-party sites when a user visits a page on that site. ¶26 col. 16:7-10
automatically with the computer system electronically adding the received partial profile to a maintained profile believed to be related to the same entity; The platform allegedly aggregates the received data into larger, existing user profiles stored within its systems. ¶26 col. 16:11-14
automatically with the computer system generating and storing an electronic record of which of the plurality of unaffiliated third parties contributed to the maintained profile particular profile attributes; The platform is alleged to maintain records that track the source of different pieces of profile data (i.e., which third-party publisher provided which attribute). ¶26 col. 16:15-19
wherein the maintained profile, including the added partial profile, comprises data used in targeting third-party advertisements... The aggregated profiles are allegedly used by the platform to enable the targeting of advertisements. ¶26 col. 16:20-24
  • Identified Points of Contention:
    • Scope Questions: The term "unaffiliated third parties" may become a point of contention depending on the contractual relationships between Amazon and the websites in its advertising network.
    • Technical Questions: A key technical question will be whether the accused platform actually uses an "automatic electronic URL redirection" to receive profile data, as explicitly required by the claim. The defense may argue that other data collection methods, such as pixel tagging or server-to-server data transfers, do not meet this limitation.

V. Key Claim Terms for Construction

  • For the '586 Patent:

    • The Term: "tag"
    • Context and Importance: The definition of "tag" is fundamental to the scope of infringement, as it defines the mechanism for identifying users across different websites. Practitioners may focus on whether this term is limited to a simple identifier or can encompass more complex data structures.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: The specification suggests flexibility, stating that "a cookie is inserted into a visitor's browser or similar tags are placed into a customer database" ('639 Patent, col. 9:48-51), which could support a construction covering various types of digital identifiers.
      • Evidence for a Narrower Interpretation: The summary states that a tag "simply identifies that its bearer was so marked for having been at a specific location" ('639 Patent, col. 5:28-32). This language could be used to argue for a narrower construction limited to a simple location marker, as opposed to a tag containing extensive profile information.

  • For the '582 Patent:

    • The Term: "automatic electronic URL redirection"
    • Context and Importance: This term specifies the technical mechanism for data collection from third parties. Infringement of claim 1 hinges on whether Amazon's platform uses this specific method. Practitioners may focus on this term because modern ad-tech platforms use various methods for data exchange, and a narrow construction could allow the accused system to fall outside the claim's scope.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: The patent's abstract and background focus on the broader concept of creating a data brokerage ('307 Patent, Abstract). An argument could be made that "URL redirection" is merely an exemplary embodiment of the data transfer, not a strict limitation on the core invention.
      • Evidence for a Narrower Interpretation: The claim explicitly recites this technical step. The specification also describes this mechanism: "By redirecting a portion of the visitor's page to the server, the visitor's browser reports to the server a cookie..." ('307 Patent, col. 3:61-63). This provides strong evidence that the claim is limited to this specific implementation.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges both induced and contributory infringement. Inducement is based on allegations that Defendant provides "user manuals and online instruction materials" that instruct customers on how to use the accused platform in an infringing manner (Compl. ¶¶14, 24). Contributory infringement is based on allegations that the platform is especially made for infringing use and is not a staple article of commerce (Compl. ¶¶15, 25).
  • Willful Infringement: The complaint alleges willful infringement based on Defendant’s alleged pre-suit knowledge of the asserted patents from communications that occurred "in the 2019 time frame" (Compl. ¶¶13, 23).

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

  1. Evidentiary Burden: A primary issue will be one of evidentiary demonstration. Given the complaint's lack of technical specifics, the case will depend on Plaintiff's ability to obtain and present evidence detailing the precise architecture and operational methods of Amazon’s advertising platform and successfully map them to the elements of the asserted claims.
  2. Technical Specificity in Claim Scope: The dispute may turn on questions of functional and structural correspondence. Specifically, can the methods claimed in the patents, which describe specific technical pathways like "URL redirection" ('582 Patent) and a distinct three-party "broadcaster" structure ('586 Patent), be read to cover the potentially different and more complex data exchange protocols used in Amazon's modern advertising ecosystem?
  3. Validity in a Foundational Field: With priority dates reaching back to 1999 and 2000, the patents cover foundational concepts in online advertising. A central question for the court will likely be one of validity over prior art: do the claims capture a genuine invention, or do they describe concepts that were already known or obvious during the rapid, early evolution of the internet advertising industry?