DCT
6:23-cv-00506
Auto Telematics Ltd v. United Services Automobile Association
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Auto Telematics Ltd. (United Kingdom)
- Defendant: United Services Automobile Association (Texas)
- Plaintiff’s Counsel: Bruster PLLC
- Case Identification: 6:23-cv-00506, W.D. Tex., 07/17/2023
- Venue Allegations: Plaintiff alleges venue is proper in the Western District of Texas because Defendant USAA has its principal place of business in San Antonio, maintains a permanent physical presence, and conducts substantial business within the district.
- Core Dispute: Plaintiff alleges that Defendant’s usage-based auto insurance application, the Noblr App, infringes four patents related to methods and systems for logging vehicle behavior using a mobile device's sensors.
- Technical Context: The technology concerns vehicle telematics for usage-based insurance (UBI), a market where smartphone applications monitor driving habits to calculate personalized insurance premiums.
- Key Procedural History: The complaint notes a prior lawsuit filed by Plaintiff against Defendant on May 11, 2022, asserting the same patents against a different product (the "SafePilot System"). Plaintiff alleges this prior suit establishes Defendant's knowledge of the patents as of at least May 13, 2022, forming the basis for its willfulness allegations. The complaint also states that the court in the prior action has already construed disputed terms of the patents-in-suit.
Case Timeline
| Date | Event |
|---|---|
| 2010-12-15 | Earliest Priority Date for all Patents-in-Suit |
| 2016-04-12 | U.S. Patent No. 9,311,271 Issues |
| 2017-04-25 | U.S. Patent No. 9,633,487 Issues |
| 2019-01-29 | U.S. Patent No. 10,192,369 Issues |
| 2019-02-05 | U.S. Patent No. 10,198,879 Issues |
| 2019-10-23 | Noblr announces its launch in Texas |
| 2021-06-01 | USAA acquires Noblr (approximate date) |
| 2022-05-11 | Plaintiff files prior lawsuit against USAA (SafePilot Suit) |
| 2022-05-13 | USAA is served with complaint in SafePilot Suit |
| 2023-02-17 | Court in SafePilot Suit construes disputed patent terms |
| 2023-07-17 | Complaint filed in present case |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 9,311,271 - "Method and System for Logging Vehicle Behavior"
The Invention Explained
- Problem Addressed: The patent’s background section describes traditional vehicle data logging devices, or "black boxes," as often being difficult and costly to install, particularly when retrofitting them to existing vehicles (ʼ271 Patent, col. 1:40-58).
- The Patented Solution: The invention proposes using a general-purpose mobile telecommunications device, such as a smartphone, equipped with its own sensors (e.g., accelerometer, GPS, camera) to log driving behavior. An application on the device controls the data logging, which can be initiated automatically and used to analyze driving patterns or reconstruct accidents, thereby obviating the need for dedicated, hardwired vehicle hardware ('271 Patent, Abstract; col. 2:15-26). The specification suggests using an adapter to hold the device securely to the vehicle to improve the reliability of the sensor data ('271 Patent, col. 3:1-10).
- Technical Importance: This approach leverages the widespread availability of sensor-equipped smartphones to provide vehicle telematics functionality without requiring professionally installed, dedicated in-vehicle hardware (Compl. ¶41, ¶51).
Key Claims at a Glance
- The complaint asserts independent method Claim 1 and independent system Claim 6.
- Claim 1 (Method):
- adapting and installing a mobile telecommunications device to the vehicle;
- registering the start of a driving period;
- processing sensor data from the sensor set during the driving period to derive driving information;
- storing a selection of the driving information to the memory; and
- a negative limitation wherein the driving information is derived without data from the vehicle sensors.
- Claim 6 (System):
- A data-logging system comprising a database for storing accounts and a communications interface;
- The interface is arranged to communicate with a remote mobile device and receive a unique identifier and driving information; and
- The received driving information is derived from the mobile device's user interface and sensor data, without data from vehicle sensors.
U.S. Patent No. 9,633,487 - "Method and System for Logging Vehicle Behavior"
The Invention Explained
- Problem Addressed: As with the parent '271 Patent, this patent addresses the cost and complexity of dedicated vehicle "black box" data recorders ('487 Patent, col. 1:40-58).
- The Patented Solution: The invention describes a mobile telecommunications device that uses its internal sensors to log driving data. This patent further elaborates on a system that can detect the occurrence of a "predetermined event" (such as a crash) and, in response, take a "predetermined action," such as storing detailed driving information leading up to and immediately following the event to memory ('487 Patent, Abstract; col. 5:11-20). The memory architecture may comprise both short-term memory for transient data and long-term memory for persistently storing event-related data ('487 Patent, col. 7:51-64).
- Technical Importance: The technology allows a device with finite memory to selectively preserve high-fidelity data related to significant driving events while overwriting or compressing routine driving data, improving storage efficiency (Compl. ¶51).
Key Claims at a Glance
- The complaint asserts independent device Claim 1.
- Claim 1 (Device):
- A mobile telecommunications device comprising a sensor set, user interface, processor, and memory;
- The device is configured to determine a start of a driving period during which it is removably attached to a vehicle;
- It processes sensor data to derive driving information, without data from vehicle sensors;
- It stores a selection of the driving information; and
- It is controlled by a downloaded application to detect a "predetermined event" and in response take at least one "predetermined action."
U.S. Patent No. 10,192,369 - "Method and System for Logging Vehicle Behaviour"
- Technology Synopsis: A continuation in the same patent family, the '369 Patent describes a system for logging vehicle behavior using a mobile device's sensors. The invention includes defining a "benchmark" based on sensor data from a first set of driving periods and using that benchmark to modify event indication models for subsequent driving periods, thereby tailoring the system's detection capabilities to a specific driver or vehicle ('369 Patent, col. 6:11-39).
- Asserted Claims: Independent Claim 1.
- Accused Features: The complaint alleges the USAA Noblr App uses a customer's mobile device to log driving information associated with a vehicle (Compl. ¶104).
U.S. Patent No. 10,198,879 - "Method and System for Logging Vehicle Behaviour"
- Technology Synopsis: Also a continuation, the '879 Patent describes a mobile device configured to log driving information by processing its own sensor data to determine events such as vehicle acceleration and braking. The system makes such determinations when sensor data accords with "predefined threshold values" and uses the resulting information to generate a driving score ('879 Patent, Claim 46).
- Asserted Claims: Independent Claims 1 and 21.
- Accused Features: The complaint accuses the Noblr App's use of a mobile device to log driving information and the app itself as a non-transitory computer-readable medium (Compl. ¶111-112).
III. The Accused Instrumentality
Product Identification
- The "Noblr App," which is also marketed and branded as the "USAA Pay As You Drive" application (Compl. ¶15, ¶55).
Functionality and Market Context
- The Noblr App is a mobile application for iOS and Android devices that provides usage-based insurance (UBI) (Compl. ¶62, ¶68). The app is alleged to "leverage the sensors and technology that are already active in your phone" to collect driving data, explicitly noting that "No dongles" connected to the vehicle are required (Compl. ¶63). The app runs in the background to track trips and measures factors including "Mileage," "Smoothness" (acceleration and braking), "Focus" (handling the phone), "Road Choice," and "Time of Day" (Compl. ¶66, ¶70). This data is used to calculate a "Driving Score," which in turn is used to determine personalized insurance pricing for the user (Compl. ¶68, ¶73). A screenshot provided in the complaint from the iOS App Store shows an interface displaying a numerical "Driving Score" and individual scores for factors like "Focus" and "Smoothness" (Compl. p. 18). USAA acquired Noblr Inc. and its application to offer this UBI product to its members (Compl. ¶13, ¶57, ¶60).
IV. Analysis of Infringement Allegations
U.S. Patent No. 9,311,271 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| adapting and installing a mobile telecommunications device to the vehicle | USAA instructs users to download the app to their smartphone and enable permissions for location and motion sensors. | ¶67 | col. 3:1-5 |
| registering the start of a driving period | The app is alleged to automatically track trips by running in the background whenever the user is in a moving vehicle. | ¶69, ¶70 | col. 2:3-4 |
| processing sensor data from the sensor set during the driving period to derive driving information associated with how the vehicle is driven | The app uses the phone's internal sensors to measure driving behaviors such as mileage, acceleration, and braking ("smoothness"). | ¶63, ¶66 | col. 2:5-8 |
| and store a selection of the driving information to the memory | The app gathers and stores details for each trip, which are used to calculate a driving score and can be reviewed by the user. | ¶70, ¶73 | col. 2:8-9 |
| wherein the driving information is derived without data from the vehicle sensors | The system operates using only the phone's sensors, with marketing materials stating "No dongles" are required. | ¶63 | col. 1:51-54 |
U.S. Patent No. 9,633,487 Infringement Allegations
| Claim Element (from Independent Claim 1) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| A mobile telecommunications device... configured to: determine... a start of a driving period during which the mobile device is removably attached to the vehicle... | The app is alleged to automatically detect and track trips when the user is in a moving vehicle. | ¶69 | col. 2:3-5 |
| process the sensor data from the sensor set during the driving period to derive driving information... | The app processes data from the phone's sensors to derive metrics like "smoothness" (acceleration/braking). | ¶64, ¶66 | col. 2:6-8 |
| store a selection of the driving information to the memory | The app stores trip details and associated scores in memory for user review and rate calculation. | ¶70, ¶73 | col. 2:8-9 |
| wherein the driving information is derived without data from the vehicle sensors | The system is alleged to function using only the phone's sensors, not data from the vehicle itself. | ¶63 | col. 1:51-54 |
| and the mobile telecommunications device is controlled by a downloaded application to control the mobile device to detect occurrence of a predetermined event and in response take at least one predetermined action | The app allegedly detects events such as hard braking (related to the "smoothness" factor) and takes the action of adjusting the user's driving score. | ¶48, ¶66, ¶68 | col. 5:11-20 |
Identified Points of Contention
- Scope Questions: A potential dispute may arise over the meaning of "installed to the vehicle." The analysis may question whether downloading an application and having the phone present in the car meets this limitation, or if it requires a physical mount as described in the patents' specifications ('271 Patent, col. 3:1-10).
- Technical Questions: For the ’487 Patent, a central question may be what constitutes a "predetermined event" and a "predetermined action." The analysis will likely focus on whether the accused app's measurement of driving behaviors like "smoothness" and the subsequent adjustment of a "driving score" satisfy the claim's requirements for event detection and responsive action.
V. Key Claim Terms for Construction
- The Term: "installed to the vehicle" / "removably attached to the vehicle" (appearing in asserted claims of the '271 and '487 Patents)
- Context and Importance: The definition of this term is critical for determining infringement. The dispute may center on whether the term requires a physical mounting apparatus securing the phone to the vehicle, or if it can be satisfied by the phone simply being present inside the vehicle while the accused application is active. Practitioners may focus on this term because the patent specification emphasizes the use of an adapter for sensor accuracy, while the accused product functions without requiring one.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The plain language of the claims does not explicitly recite a physical mounting bracket or adapter.
- Evidence for a Narrower Interpretation: The specification states that an "adapter arranged to hold the device securely to the vehicle" can "improve the suitability and reliability of the sensor data" ('271 Patent, col. 3:1-10). The patent figures also consistently depict the mobile device in a physical mount (e.g., '271 Patent, Fig. 2).
VI. Other Allegations
- Indirect Infringement: The complaint alleges inducement of infringement, stating that USAA provides instructions on its website explaining how to download and use the Noblr App and markets its infringing use in advertisements (Compl. ¶91, ¶98, ¶105, ¶113).
- Willful Infringement: The complaint alleges that USAA's infringement has been willful since at least May 13, 2022. This allegation is based on USAA's alleged actual knowledge of the patents-in-suit and Plaintiff's infringement allegations, which Plaintiff claims was established upon service of the complaint in a prior lawsuit between the parties involving the same patents (Compl. ¶82, ¶85).
VII. Analyst’s Conclusion: Key Questions for the Case
- A core issue will be one of definitional scope: can the claim term "installed to the vehicle," which is described in the patent specification in the context of a physical adapter for improving sensor accuracy, be construed to cover the act of a user downloading an application and carrying the phone inside the vehicle without a specific mount?
- A key question of functional mapping will likely arise for the '487 patent: does the accused app's system of measuring general driving characteristics like "smoothness" and using that data to update a cumulative "driving score" meet the claim requirement of detecting a discrete "predetermined event" and taking a specific "predetermined action" in response?
- A central procedural question will be the impact of the prior litigation between the parties. The claim constructions adopted by the court in that earlier case may be binding here, potentially narrowing the scope of discovery and future claim construction arguments.