DCT
7:25-cv-00324
Zugara Inc v. Chanel Inc
I. Executive Summary and Procedural Information
- Parties & Counsel:
- Plaintiff: Zugara, Inc. (California)
- Defendant: Chanel, Inc. (New York)
- Plaintiff’s Counsel: Rozier Hardt McDonough PLLC
- Case Identification: 2:25-cv-00324, W.D. Tex., 07/22/2025
- Venue Allegations: Plaintiff alleges venue is proper because Defendant maintains regular and established places of business within the Western District of Texas and has committed acts of infringement there. The complaint further notes that in a prior case, Defendant admitted to having places of business in the district.
- Core Dispute: Plaintiff alleges that Defendant’s "Virtually Try-On" feature for online makeup sales infringes a patent related to technology for simulating the wearing of items in an augmented reality environment.
- Technical Context: The technology at issue falls within the augmented reality (AR) e-commerce sector, which aims to enhance online shopping by allowing consumers to visualize products on themselves in real-time before making a purchase.
- Key Procedural History: The complaint references prior litigation (Lennon Image Technologies, LLC v. Chanel, Inc.) where Defendant allegedly did not contest venue in the Western District of Texas, a point Plaintiff raises to support its current venue contentions.
Case Timeline
| Date | Event |
|---|---|
| 2009-08-12 | '517 Patent - Earliest Priority Date |
| 2015-11-09 | '517 Patent - Application Filing Date |
| 2019-11-19 | '517 Patent - Issue Date |
| 2022-03-09 | Filing in prior litigation referenced for venue |
| 2025-06-24 | Date Plaintiff last visited accused product webpage |
| 2025-07-22 | Complaint Filing Date |
II. Technology and Patent(s)-in-Suit Analysis
U.S. Patent No. 10,482,517 - "Providing A Simulation Of Wearing Items Such As Garments And/Or Accessories"
- Patent Identification: U.S. Patent No. 10,482,517, "Providing A Simulation Of Wearing Items Such As Garments And/Or Accessories," issued November 19, 2019. (Compl. ¶1).
The Invention Explained
- Problem Addressed: The patent identifies a key barrier in e-commerce for wearable goods: potential customers cannot try on items like clothing or accessories before buying, forcing them to speculate on fit and appearance and potentially deterring a purchase. (’517 Patent, col. 1:30-43).
- The Patented Solution: The invention describes a system and method for a "virtual-outfitting interface" that generates a composite video feed. This feed merges a live video of the user with a selected "virtual-wearable item," creating the appearance that the user is wearing the item in real time. (’517 Patent, Abstract; col. 1:56-63). The system is designed to track the user’s motion, allowing the virtual item to move cohesively with the user's body. (’517 Patent, col. 4:1-12).
- Technical Importance: This technology represents an effort to replicate the physical "try-on" experience in a digital environment, aiming to increase consumer confidence and sales conversion in online retail. (’517 Patent, col. 1:39-43).
Key Claims at a Glance
- The complaint asserts at least independent claim 13. (Compl. ¶26).
- Claim 13 recites a method with the following essential elements:
- Obtaining a live video feed from a client computing platform.
- Recognizing the position and/or orientation of a user's body part within the video feed.
- Providing a "virtual-outfitting interface" with at least two separate portions, including a "main display portion" and an "icon that is overlaid" upon it.
- The main display portion includes a composite video feed incorporating the user's live video and a "first virtual-wearable item."
- The position, size, and/or orientation of the virtual item is determined so that it moves with the user in real time, making it appear as if the user is wearing the item.
- Providing a "social-networking tool" in the interface that allows the user to interact with social-networking services.
- The complaint does not explicitly reserve the right to assert dependent claims.
III. The Accused Instrumentality
Product Identification
- The accused products are the "Virtually Try-On" module and related Augmented Reality (AR) ads available on Defendant's website (chanel.com/us/) and associated applications. (Compl. ¶¶15-16).
Functionality and Market Context
- The accused functionality allows online customers to use their device's camera to see a real-time simulation of Chanel's makeup products (e.g., lipsticks, eyeshadows, eyeliners) applied to their own face. (Compl. ¶16).
- The complaint provides a screenshot from Chanel's website promoting the "MAKEUP STUDIO," which invites users to "Virtually try on the CHANEL lipsticks, eyeshadows and eyeliners." This screenshot depicts the marketing entry point for the accused feature. (Compl. ¶16, Figure 1).
- The feature is presented as a tool to help users select from "a myriad of shades, finishes and textures" before purchase, positioning it as a key component of Chanel's online sales strategy for cosmetics. (Compl. ¶16).
IV. Analysis of Infringement Allegations
The complaint references an Exhibit A containing detailed infringement allegations, which was not available for review. The analysis below is based on the narrative summary of infringement provided in the body of the complaint. (Compl. ¶¶26-27).
'517 Patent Infringement Allegations
| Claim Element (from Independent Claim 13) | Alleged Infringing Functionality | Complaint Citation | Patent Citation |
|---|---|---|---|
| obtaining, from a client computing platform, a live video feed; | The Accused Products obtain a live video feed from the user's client computing platform (e.g., phone, computer). | ¶27 | col. 8:60-64 |
| recognizing a position and/or orientation of one or more body parts of a user within the live video feed... | The Accused Products recognize the position and orientation of the user's body parts (e.g., face, lips, eyes) within the video feed. | ¶27 | col. 13:2-12 |
| providing a virtual-outfitting interface... including... a main display portion and an icon that is overlaid upon the main display portion... | The Accused Products provide a virtual-outfitting interface that includes a main display and an overlaid icon. | ¶27 | col. 15:10-24 |
| wherein the main display portion includes a composite video feed that incorporates the live video feed of the user and a first virtual-wearable item... [such that the item] moves within the main display portion... so that the user appears to be wearing the first virtual-wearable item in real time... | The main display shows a composite video of the user's live feed with a virtual-wearable item (e.g., lipstick) applied, which moves with the user in real time. | ¶27 | col. 11:25-41 |
| providing a social-networking tool graphically presented in the virtual-outfitting interface, the social-networking tool allowing the user to interface with one or more social-networking services... | The Accused Products provide a social-networking tool allowing the user to interface with social-networking services. | ¶27 | col. 14:46-56 |
- Identified Points of Contention:
- Scope Question: A primary issue may be whether the term "virtual-wearable item," which the patent describes in the context of "garments and/or accessories" (’517 Patent, Title; col. 1:52-54), can be construed to encompass the "lipstick and makeup" of the accused products. (Compl. ¶16).
- Technical Question: The complaint makes a conclusory allegation regarding a "social-networking tool" and an "overlaid icon." (Compl. ¶27). A key factual question will be what specific features of the Chanel interface correspond to these claimed elements and whether they function in the manner required by the patent.
V. Key Claim Terms for Construction
The Term: "virtual-wearable item"
- Context and Importance: The applicability of the patent to the accused makeup products hinges entirely on the scope of this term. Practitioners may focus on this term because the patent's title and examples focus on clothing and traditional accessories, whereas the accused product is a cosmetic.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The claim language itself is not explicitly limited to clothing. Dependent claim 18 recites that the "virtual-wearable item includes one or both of a virtual garment or a virtual accessory," which could imply that the independent claim term is broader than just those two categories. (’517 Patent, col. 18:63-65).
- Evidence for a Narrower Interpretation: The patent title is "Providing A Simulation Of Wearing Items Such As Garments And/Or Accessories." The Summary and Detailed Description consistently provide examples like "virtual shirt, a virtual hat, virtual pants" and "virtual jewelry." (’517 Patent, Title; col. 1:52-54; col. 8:3-5). A defendant may argue these examples limit the term's scope to such articles.
The Term: "social-networking tool"
- Context and Importance: Infringement of the final element of claim 13 depends on whether the accused product's sharing capabilities meet the definition of this term. Practitioners may focus on this term to determine if a generic "share" button meets the claim limitation or if a more integrated tool is required.
- Intrinsic Evidence for Interpretation:
- Evidence for a Broader Interpretation: The specification describes the tool as allowing a user to "interface with one or more social-networking services (e.g., Facebook™, MySpace™, Twitter™...)" to "share a snapshot with one or more contacts." (’517 Patent, col. 8:49-54). This could be read broadly to cover any feature enabling sharing on such platforms.
- Evidence for a Narrower Interpretation: The claim requires the tool to be "graphically presented in the virtual-outfitting interface." (’517 Patent, col. 17:1-5). A defendant might argue this requires a specific, persistent graphical element or icon within the main interface, not just a sharing option that appears after a snapshot is taken.
VI. Other Allegations
- Indirect Infringement: The complaint alleges inducement by asserting that Chanel provides instructions, advertising, and technical support that guide and encourage customers to use the accused products in an infringing manner. (Compl. ¶28). It further alleges contributory infringement, stating the accused products contain special features that are material to the invention and not suitable for substantial non-infringing use. (Compl. ¶29).
- Willful Infringement: Willfulness is alleged based on post-suit knowledge, asserting Chanel had knowledge of the patent "at least as of the date when it was notified of the filing of this action." (Compl. ¶30). The complaint also alleges willful blindness, claiming on information and belief that Chanel has a "policy or practice of not reviewing the patents of others." (Compl. ¶31).
VII. Analyst’s Conclusion: Key Questions for the Case
The resolution of this dispute may turn on the answers to two central questions:
- A core issue will be one of definitional scope: can the term "virtual-wearable item," which is exemplified in the patent with garments and physical accessories, be construed broadly enough to cover cosmetics like virtual lipstick and eyeshadow as implemented in the accused system?
- A key evidentiary question will be one of technical and functional correspondence: does the Chanel "Virtually Try-On" interface contain components that operate as the claimed "social-networking tool" and the "icon that is overlaid upon the main display portion," or will discovery reveal a functional or structural mismatch with the specific architecture required by claim 13?