`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TEXAS
`WACO DIVISION
`
`
`
` Plaintiff,
`
`
`ADVANCED TRANSACTIONS, LLC,
`
`
`
` v.
`
`
`
`DSW SHOE WAREHOUSE, INC.,
`
` Defendant.
`
`
`
`
`
`
`
`
`
` Case No. 6:24-cv-00103
`
` Jury Trial Demanded
`
`COMPLAINT FOR PATENT INFRINGEMENT
`
`Plaintiff Advanced Transactions, LLC (“Advanced Transactions”) files this
`
`Complaint against DSW Shoe Warehouse, Inc. (hereinafter “DSW or “Defendant”) for
`
`infringement of United States Patent Nos. 7,065,555; 7,386,594; 7,693,950; 7,979,057;
`
`8,150,736; 8,175,519; 9,747,608; and 10,783,529 (the “patents-in-suit”), and alleges as
`
`follows:
`
`NATURE OF THE ACTION
`
`1.
`
`This is an action for patent infringement arising under the patent laws of
`
`the United States, 35 U.S.C. §§ 1 et seq.
`
`
`
`
`
`
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 2 of 183
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`THE PARTIES
`
`2.
`
`Advanced Transactions is a limited liability company organized under
`
`laws of the State of Georgia with its principal place of business situated at the Day
`
`Building, Suite 230, 4725 Peachtree Corners Circle, Peachtree Corners, GA 30092.
`
`3.
`
`On information and belief, defendant DSW is a corporation organized and
`
`existing under the laws of the state of Delaware with a principal place of business at 810
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`DSW Drive, Columbus, Ohio 43219.
`
`4.
`
`On information and belief, DSW may be served with process through its
`
`registered agent, Corporation Service Company, 251 Little Falls Drive, Wilmington,
`
`Delaware 19808 or anywhere it may be found.
`
`5.
`
`DSW has been authorized to do business in the State of Texas and the
`
`Western District of Texas since on or about March 28, 1994, under Texas SoS File
`
`Number 0009943106.
`
`6.
`
`On information and belief, DSW sells and offers to sell products and
`
`services throughout Texas, including in this judicial district, as well as throughout the
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`United States, and introduces products and services that perform infringing processes
`
`into the stream of commerce knowing that they would be used, offered for sale, or sold
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`in this judicial district and elsewhere in the United States.
`
`7.
`
`On information and belief, DSW has made, used, offered to sell and/or
`
`sold products and services, including the following specifically accused products and
`
`2
`
`
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 3 of 183
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`services: (1) DSW Marketing Emails;1 (2) DSW Mobile Apps;2 (3) DSW Gift Cards and e-
`
`Gift Cards;3 (4) the DSW website;4 (5) DSW online shopping services; 5 (6) DSW in-store
`
`shopping services;6 (7) DSW Rewards;7 (8) current or legacy products or services, which
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`use, or have used, one or more of the foregoing products and services as a component
`
`product or component service; (9) combinations of products and/or services
`
`comprising, in whole or in part, two or more of the foregoing products and services;
`
`and (10) all other current or legacy products and services imported, made, used, sold, or
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`offered for sale by DSW that operate, or have operated in a substantially similar manner
`
`as the above-listed products and services. (As used herein, one or more of the forgoing
`
`products and services are individually and collectively referred to as the accused “DSW
`
`Marketing Products and Services”).
`
`8.
`
`On information and belief, DSW, as well as the hardware and software
`
`components comprising the DSW Marketing Products and Services and/or that enable
`
`the DSW Marketing Products and Services to operate, including but not limited to
`
`
`1 See https://www.dsw.com/en/us/legal/privacy-policy.
`
`2 See e.g., https://apps.apple.com/us/app/dsw-designer-shoe-warehouse/id918263528
`and https://play.google.com/store/apps/details?id=com.dsw.android.
`
`3 See https://giftcards.dsw.com/.
`
`4 See https://www.dsw.com/.
`
`5 See https://www.dsw.com/en/us/shopping-bag /.
`
`6 See, e.g., https://stores.dsw.com/usa/tx.html /.
`
`7 See, e.g., https://www.dsw.com/en/us/vip.
`
`3
`
`
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 4 of 183
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`servers, server software, webserver software, webserver hardware, email server
`
`hardware, email server software, website client software, mobile computing device
`
`client application software, networked communications hardware, network routers,
`
`network switches, network hubs, WIFI access point hardware, WIFI access point
`
`software, point-of-sale hardware, point-of-sale software, back-end hardware, back-end
`
`software, cloud-based software, cloud-based hardware, and other hardware and
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`software computing systems and components (individually and collectively referred to
`
`herein as the accused “DSW Marketing System”), infringes (literally and/or under the
`
`doctrine of equivalents) at least one claim of each of the patents-in-suit.
`
`JURISDICTION AND VENUE
`
`9.
`
`This Court has personal jurisdiction over DSW because it committed and
`
`continues to commit acts of infringement in this judicial district in violation of 35 U.S.C.
`
`§§ 271(a). In particular, on information and belief, DSW has made, used, offered to sell
`
`access to, and/or sold access to the accused DSW Marketing Products and Services in
`
`the Western District of Texas, and has made, used, offered to sell access to, and/or sold
`
`access to the DSW Marketing System in the Western District of Texas.
`
`10. On information and belief, DSW is subject to the Court’s jurisdiction
`
`because it regularly conducts and solicits business, or otherwise engages in other
`
`persistent courses of conduct in this judicial district, and/or derives substantial revenue
`
`from the use, sale, and distribution of goods and services, including but not limited to
`
`the accused DSW Marketing Products and Services provided to individuals and
`
`businesses in the Western District of Texas.
`
`4
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 5 of 183
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`11. On information and belief, DSW infringes the patent-in-suit in the
`
`Western District of Texas, at least, by making, using, offering to sell access to, and/or
`
`selling access to the accused DSW Marketing Products and Services in the Western
`
`District of Texas, and its making, use, offering to sell access to, and/or selling access to
`
`the DSW Marketing System.
`
`12. On information and belief, DSW is a footwear store that operates more
`
`than 519 stores in the United States of America and Canada and online at
`
`https://www.dsw.com/.
`
`13.
`
`Indeed, on information and belief, DSW operates at least 46 retail stores in
`
`the State of Texas alone, see https://stores.dsw.com/usa/tx.html, with retail stores
`
`5
`
`
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 6 of 183
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`throughout this judicial district, including in Waco, Austin, El Paso, Round Rock, and
`
`San Antonio, among others.
`
`
`
`
`
`
`
`6
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 7 of 183
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`
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`14. On information and belief, the accused DSW Marketing Products and
`
`Services and/or the DSW Marketing System are made, used, sold and offered for sale
`
`by DSW, or its agents, at DSW retail stores, including those retail stores located in the
`
`Western District of Texas.
`
`15. On information and belief, DSW customers located in the Western District
`
`of Texas have obtained access to and used the accused DSW Marketing Products and
`
`Services and/or the DSW Marketing System while located in the Western District of
`
`Texas.
`
`16.
`
`The Court has personal jurisdiction over DSW at least because it has
`
`continuous business contacts in the State of Texas and in the Western District of Texas;
`
`DSW has engaged in business activities including transacting business in the Western
`
`District of Texas and purposefully directing its business activities, including the sale or
`
`offer for sale of the DSW Marketing Products and Services to the Western District of
`
`7
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 8 of 183
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`Texas to aid, abet, or contribute to the infringement of third parties in the Western
`
`District of Texas.
`
`17.
`
`This Court has personal jurisdiction over DSW because, inter alia, DSW, on
`
`information and belief: (1) has committed acts of patent infringement in this Western
`
`District of Texas; (2) maintains a regular and established place of business in the
`
`Western District of Texas; (3) has substantial, continuous, and systematic contacts with
`
`this State and the Western District of Texas; (4) owns, manages, and operates facilities in
`
`this State and the Western District of Texas; (5) enjoys substantial income from its
`
`operations and sales in this State and the Western District of Texas; (6) employs Texas
`
`residents in this State and the Western District of Texas, and (7) solicits business using
`
`the DSW Marketing Products and Services and DSW Marketing System in this State and
`
`the Western District of Texas.
`
`8
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 9 of 183
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`
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`18.
`
`Venue is proper pursuant to 28 U.S.C. §§ 1391(b), (c), (d) and/or 1400(b),
`
`at least because DSW, has committed acts of infringement in this judicial district, and
`
`has regular and established places of business in this judicial district.
`
`9
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`
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 10 of 183
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`United States Patent No. 7,065,555
`
`19. On June 20, 2006, the USPTO duly and legally issued United States Patent
`
`No. 7,065,555 (“the ’555 patent”) entitled “System and Method Related to Generating
`
`and Tracking an Email Campaign” to inventors Michael G. Foulger, Thomas R.
`
`Chipperfield, Jeremy S. Cooper, and Andrew C. Storms.
`
`20.
`
`The ’555 patent is presumed valid under 35 U.S.C. § 282.
`
`21. Advanced Transactions owns all rights, title, and interest in the ’555
`
`patent.
`
`22. Advanced Transactions has not granted DSW an approval, an
`
`authorization, or a license to the rights under the ’555 patent.
`
`23.
`
`The ’555 patent relates to, among other things, a method and system for
`
`generating and tracking an email campaign.
`
`24.
`
`The claimed invention(s) of the ‘555 patent sought to solve problems with,
`
`and improve upon, existing marketing and market research and analysis systems. For
`
`example, the ‘555 patent states:
`
`The ability to market a product or service to individuals who are accessible on the
`Internet is becoming increasingly important. Effective ways of contacting these
`individuals are being sought. For instance, to market to these individuals, email
`may be sent to the individuals over the Internet, to provide information related to
`the product or service. Email systems exist today for sending email to a target set
`of email addresses for purposes such as marketing, information acquisition, and
`otherwise. A system for sending email to a number of email targets for such
`purposes may be called an email campaign.
`
`Present email campaigns may suffer from difficulties in locating a pool of relevant
`individuals to be contacted. In a small email campaign, each email sent is critical
`to the success of the campaign, and needs to be carefully created. In other
`situations, large numbers of individuals to be contacted may have been found.
`
`10
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 11 of 183
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`This may result in increased difficulty in tailoring the large number of required
`email messages to the individuals for more effective contact.
`
`Furthermore, once an email campaign has been initiated, difficulties in measuring
`success of the email campaign are presented. Effective ways for determining
`whether email recipients have received email from the email campaign have been
`sought. Also, effective ways for allowing the email recipients to provide feedback
`have also been sought. It may be desirable for the email recipients to be able to
`respond with feedback, and for the quantity and content of the responses to be
`monitored and tracked.
`
`See ’555 Specification at col. 1, ll. 15-43.
`
`25.
`
`The ‘555 patent then states:
`
`In light of the foregoing, what is needed is an efficient way to create and track a
`email campaign.
`
`See ’555 Specification at col. 1, ll. 44-45.
`
`26.
`
`The invention(s) claimed in the ’555 patent solves various technological
`
`problems inherent in the then-existing existing marketing and market research and
`
`analysis systems to, among other things, function more efficiently.
`
`United States Patent No. 7,386,594
`
`27. On June 10, 2008, the USPTO duly and legally issued United States Patent
`
`No. 7,386,594 (“the ’594 patent”) entitled “System and method related to generating an
`
`email campaign” to inventors Michael G. Foulger, Thomas R. Chipperfield, Jeremy S.
`
`Cooper, and Andrew C. Storms.
`
`28.
`
`The ’594 patent is presumed valid under 35 U.S.C. § 282.
`
`29. Advanced Transactions owns all rights, title, and interest in the ’594
`
`patent.
`
`11
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 12 of 183
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`30. Advanced Transactions has not granted DSW an approval, an
`
`authorization, or a license to the rights under the ’594 patent.
`
`31.
`
`The ’594 patent relates to, among other things, a method and system for
`
`generating an email campaign.
`
`32.
`
`The specification of the ’594 patent is the same as the ’555 patent
`
`specification, and solves the problems recited above and described in the ’555 patent
`
`specification.
`
`United States Patent No. 7,693,950
`
`33. On April 6, 2010, the USPTO duly and legally issued United States Patent
`
`No. 7,693,950 (“the ’950 patent”) entitled “System and Method Related to Generating
`
`and Tracking an Email Campaign” to inventors Michael G. Foulger, Thomas R.
`
`Chipperfield, Jeremy S. Cooper, and Andrew C. Storms.
`
`34.
`
`The ’950 patent is presumed valid under 35 U.S.C. § 282.
`
`35. Advanced Transactions owns all rights, title, and interest in the ’950
`
`patent.
`
`36. Advanced Transactions has not granted DSW an approval, an
`
`authorization, or a license to the rights under the ’950 patent.
`
`37.
`
`The ’950 patent relates to, among other things, a method and system for
`
`generating and tracking an email campaign.
`
`38.
`
`The specification of the ’950 patent is the same as the ’555 patent
`
`specification, and solves the problems recited above and described in the ’555 patent
`
`specification.
`
`12
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 13 of 183
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`United States Patent No. 7,979,057
`
`39. On July 12, 2011, the USPTO duly and legally issued United States Patent
`
`No. 7,979,057 (“the ’057 patent”) entitled “Third-Party Provider Method and System” to
`
`inventors Luis M. Ortiz and Kermit D. Lopez.
`
`40.
`
`The ’057 patent is presumed valid under 35 U.S.C. § 282.
`
`41. Advanced Transactions owns all rights, title, and interest in the ’057
`
`patent.
`
`42. Advanced Transactions has not granted DSW an approval, an
`
`authorization, or a license to the rights under the ’057 patent.
`
`43.
`
`The ’057 patent relates to, among other things, novel marketing and
`
`commercial transaction systems.
`
`44.
`
`The claimed invention(s) of the ‘057 patent sought to solve problems with,
`
`and improve upon, existing marketing and merchandizing systems. For example, the
`
`‘057 patent states:
`
`The present invention is generally related to electronic hand held devices
`(hereinafter referred to as “hand held devices”) and electronic commerce (“E-
`commerce”). The present invention is also related to hand held devices, such as a
`Personal Digital Assistant (PDA), wireless telephone, pager, or other mobile
`computing and storage device adapted for use in E-commerce. The present
`invention is also related to wireless and wireline computer networks. The present
`invention is additionally related to the fields of electronic cash, credit, award,
`incentive, and/or product management usable with/for retail establishments,
`organizations, and customers. The present
`invention
`is also related to
`merchandising systems and systems for generating and redeeming negotiable
`economic credits and/or data (e.g., electro[nic] product discount coupons and
`other negotiable economic credits, such as enterprise awards, cash, credit, etc.).
`
`See ’057 Specification at col. 1, ll. 18-33.
`
`13
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 14 of 183
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`45.
`
`The ‘057 patent then states:
`
`The recent shift in the consumer electronics industry from an emphasis on analog
`technology to a preference for digital technology is largely based on the fact that
`the former generally limits the user to a role of a passive recipient of information,
`while the latter is interactive and allows the user to control what, when, and how
`he or she receives and manipulates certain information.
`
`This shift in focus has resulted in the development and increasingly widespread
`use of, for example, a hand held digital device generically referred to as a
`“personal digital assistant” (PDA). These hand held devices are becoming
`increasingly popular for storing and maintaining information. Hand held devices,
`such as PDAs, may be connected to a desktop personal computer, networks or
`other PDAs via infrared, direct wire, or wireless communication links.
`
`See ’057 Specification at col. 1, ll. 35-49.
`
`46.
`
`The ‘057 patent then states:
`
`PDAs are increasingly being utilized to access information from remote computer
`networks, such as the “World Wide Web” and the “Internet,” both terms well
`known in the computer networking arts. PDA users can, for example, download
`e-mail from the Internet to the PDA. Web sites also exist that permit PDA users to
`access and download software that may be run on the PDA. For example, some
`web sites offer information to PDAs in the form of compressed news articles, stock
`quotes, and other data obtained from a wide variety of other electronic web-based
`sources.
`
`Based on the foregoing, it can be appreciated that a large number of users of hand
`held devices, such as PDAs, pagers and mobile telephony are increasingly relying
`on such devices to maintain and transmit a variety of personal and business
`information.
`
`See ’057 Specification at col. 2, ll. 13-27.
`
`47.
`
`The ‘057 patent then states:
`
`
`Discount coupons have long been distributed by manufacturers to merchandise
`their products and by retail stores or establishments to attract consumers to their
`particular stores. Discount coupons are a type of negotiable economic credit
`frequently utilized by enterprises for marketing products and services to the
`
`14
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 15 of 183
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`public. Enterprise awards, such as frequent flyer miles, are also negotiable
`economic credits relied upon by enterprises for marketing purposes.
`
`Coupons are typically distributed to attract customers to engage in commercial
`transactions. Such coupons are effective if utilized by a sufficiently high
`percentage of customers. Utilizing this gauge, free-standing inserts are not very
`effective. Their redemption rate is presently approximately 2.8 percent and
`dropping.
`
`Typically, coupons are physically collected at stores and credit is provided to the
`customer purchasing the corresponding product. The coupons are generally
`bundled and forwarded to a clearing house and then to a redemption center for
`sorting and counting. Reports are eventually forwarded to the manufacturers
`issuing the coupons in order to eventually generate a credit to the stores
`redeeming the coupons. It may unfortunately take several months before a store
`is reimbursed for coupons under present coupon redemption/processing
`methods.
`
`Another problem with coupons is a significant misredemption rate of between 20
`and 30 percent as a result of misidentification and outright fraud. The
`misredemption problem is exacerbated by the enormous amount of time, usually
`a number of months, that it takes to reimburse the retail stores for the discount
`given the customer.
`
`See ’057 Specification at col. 2, ll. 28-57.
`
`48.
`
`The ‘057 patent then states:
`
`Attempts have been made to address such problems. Such attempts, however,
`have resulted in additional problems, while not fully addressing the problems
`described above. For example, some companies have implemented a product
`specific micro-marketing system tied to a product point of selection and
`proprietary hardware in the form of an alerting platform attached to a grocery cart.
`A consumer within a retail establishment presses a button on the grocery cart
`alerting platform to select an electronic coupon when a coupon is graphically
`displayed at the exact product location within the retail establishment. The
`customer and the cart must be located at the point of selection to access the coupon.
`Such a micro-marketing system is proprietary in nature and requires a customer
`to retrieve a coupon only from the point of selection within the store. Thus,
`because of the proprietary nature of the system, the coupons, the alerting platform
`and other proprietary hardware cannot be utilized at other retail establishments.
`Further, the enterprise associated with the retail establishment is burdened by the
`maintenance, replacement, and repair of the proprietary hardware attached to the
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`15
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 16 of 183
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`retail establishment's shopping carts due to use, abuse, the weather and so forth.
`Other systems known in the art utilize smart cards and card readers/writers at
`point of product selection for obtaining coupon data. Such systems, however, force
`the user to retrieve data at the point of product selection (i.e. point of selection),
`thereby tying their shopping activities to a proprietary system.
`
`Accordingly, alternatives are needed to traditional mass marketing and couponing
`techniques, and proprietary, point of selection type systems. A need exists for non-
`, or solely-, proprietary, based systems that are flexible, efficient and consumer
`friendly. Further a need exists for credit devices that are not completely owned by
`the enterprise or retail establishment, but owned by the customers themselves and
`which can be utilized at other retail establishments and enterprises. Such a device
`and associated systems and methods, should be ubiquitous in nature to avoid the
`problems inherently associated with prior micro-marketing systems.
`
`It has become apparent to the present inventors that the ability to acquire, store
`and use negotiable economic credits, such as coupons, on hand held devices
`would free users of the time consuming tasks of clipping, organizing and
`redeeming traditional paper coupons or credits (e.g., frequent flier redemption via
`paper-based request), and the problems associated with proprietary micro-
`marketing systems. It has also become apparent to the present inventors that for
`merchandisers and manufacturers, such hand held devices could be utilized to
`effectively market, compile and negotiate credit exchanges/redemption much
`more efficiently than the traditional paper processing methods or proprietary-
`based micro-marketing systems and methods.
`
`See ’057 Specification at col. 2, l. 58 - col. 3, l 43.
`
`49.
`
`The ‘057 patent then states:
`
`It is believed that aspects of the invention presently described herein solve the
`traditional problems associated with negotiable economic credits, including
`coupons, cash, credit and enterprise awards, and the problems associated with
`proprietary-based marketing systems thereof, while addressing an area of user
`control that has not yet been considered, anticipated, or utilized by coupon/credit
`merchandisers and manufacturers, namely, the increasing number of individuals
`who rely on hand held devices, such as PDAs, to maintain and store personal and
`business information.
`
`See ’057 Specification at col. 3, ll. 44–53.
`
`16
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`50.
`
`The invention(s) claimed in the ’057 patent solves various technological
`
`problems inherent in the then-existing marketing and merchandizing systems to,
`
`among other things, (1) function more efficiently, (2) allow customers to become more
`
`actively engaged in retail marketing campaigns, (3) reduce the complexity, costs, and
`
`other problems associated with prior art marketing and merchandizing systems, (4)
`
`improve the security inherent in prior art marketing and merchandizing systems, and
`
`(5) improve accessibility and adoption of marketing and merchandizing systems over
`
`prior art marketing and merchandizing systems.
`
`United States Patent No. 8,150,736
`
`51. On April 3, 2012, the USPTO duly and legally issued United States Patent
`
`No. 8,150,736 (“the ’736 patent”) entitled “Global Electronic Commerce System” to
`
`inventors Michel Horn and Thomas Scott Manaugh.
`
`52.
`
`The ’736 patent is presumed valid under 35 U.S.C. § 282.
`
`53. Advanced Transactions owns all rights, title, and interest in the ’736
`
`patent.
`
`54. Advanced Transactions has not granted DSW an approval, an
`
`authorization, or a license to the rights under the ’736 patent.
`
`55.
`
`The ’736 patent relates to, among other things, a novel electronic shopping
`
`system.
`
`56.
`
`The claimed invention(s) of the ‘736 patent sought to solve problems with,
`
`and improve upon, existing electronic shopping systems. For example, the ‘736 patent
`
`states:
`
`17
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 18 of 183
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`The field of this invention is global sale of products and services using electronic
`means of (a) communications, (b) data storage and retrieval, (c) taking of orders,
`(d) fulfillment, (e) transfers of payments, and (f) providing customer service after
`the sale. Both business-to-business and business-to-consumer sales are
`effectuated.
`
`See ’736 Specification at col. 1, ll. 21-26.
`
`57.
`
`The ‘736 patent then states:
`
`The present invention is a system for use by even small manufacturers to meet a
`long-felt need to sell their products to Buyers around the world. The term
`“manufacturers” is meant to include manufacturers or authorized distributors for
`manufacturers; and the term “Buyers” is meant to include both individuals and
`organizations, including other manufacturers.
`
` A
`
` complete system, termed a Global Store, is disclosed, a system that overcomes
`barriers to global trade of language, culture, and nationality. The Global Store
`integrates communications and database software technologies, hardware
`infrastructure, and operating methods to market and sell products from
`manufacturers around the globe to Buyers in a multitude of locales around the
`globe. Stated another way, The Global Store assembles and operates various
`subsystems to provide the infrastructure for manufacturers to use a new channel
`of global commerce, a Virtual Channel.
`
`
`See ’736 Specification at col. 1, ll. 27-43.
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`58.
`
`The ‘736 patent then states:
`
`A confluence of recognized needs and new technologies now sets the stage for a
`revolutionary change in how manufacturers bring their products to markets
`around the world.
`
`Advances in communications and information technology and their associated
`standards have made geography a much less salient factor in trade than in prior
`years. Electronic communications at the speed of light enables one to purchase a
`product on the other side of the world as quickly as across the street—even more
`quickly should one decide to walk across that street to make the purchase.
`Furthermore, increasing use of English as a de facto language of commerce and
`increasing access to good, real-time translation technology will inevitably lower
`language barriers.
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`18
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 19 of 183
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`The Global Store system, described here, is a method that integrates revolutionary
`and evolutionary developments into a new system of global trade in the Virtual
`Channel. Only in the very recent past have the following compelling trends and
`powerful developments conjoined to permit the construction and operation of a
`complete and integrated system of global trade to meet long-felt needs:
`
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`1) a quickly growing population of Internet users around the world who are
`ready to shop online 24 hours per day and 365 days per year,
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`2) Websites to provide specialized functions such as online payments, online
`currency conversion tables, universal tax tables, and parcel tracking,
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`3) third-party fulfillment services to support regional and global distribution,
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`4) “pull” online marketing that allows customers greater opportunities to
`customize the products they purchase, as compared with the “push”
`marketing of ready-made products that is characteristic of brick-and-
`mortar retail channels,
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`5) international agreements to eliminate tariffs on imports,
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`6) globalization of sources of supply,
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`7) efficiencies and economies of scale resulting from consolidation of
`marketing functions across markets,
`
`8) establishment of ubiquitous delivery services,
`
`9) availability of escrow services to assuage concerns of online Buyers about
`completing purchases after shopping baskets are filled,
`
`10) growth in telecommuting to work and in home-based internet businesses,
`allowing participants to avoid driving and, thereby, less occasion to stop at
`brick-and-mortar stores to shop,
`
`11) increased global travel and increased access to information from around the
`world using wide-band communications, thereby increasing interest in
`products from far-away locales,
`
`12) consolidation of warehousing and distribution centers for quicker and more
`efficient fulfillment of orders,
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`19
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 20 of 183
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`13) manufacturers' need to retain brand control by offering increasing levels of
`customer support from a single point,
`
`14) technology to implement Web-based multi-language global marketing
`systems using newly invoked international standards, locale-specific stored
`SQL procedures, integrated multi-locale Web-based relational data bases,
`and Unicode, and
`
`
`15) integration of manufacturers' Business-to-Consumer sales with their
`Business-to-Business strategies for procuring supplies, offering a means to
`couple direct online customer sales with procurements, thus completing the
`transition to a completely integrated “Pull” model: A custom product is
`created to satisfy a Buyer's needs, and suppliers are enabled to provide
`necessary Business-to-Business products and services on a timely basis.
`
`
`See ’736 Specification at col. 2, l. 16 - col. 3, l. 17.
`
`59.
`
`The ‘736 patent then states:
`
`Pent-up pressures for globalization have produced numerous examples of
`conventional e-commerce businesses attempting to expand globally. These
`businesses generally meet the challenge to provide information in multiple
`languages and across cultures by cloning Websites from one locale to another—
`reproducing some of the design of the original Website and some of the content.
`This multi-headed e-commerce approach is a crude interim step that fails to meet
`the emerging needs of manufacturers who desire global sales. Loss of the
`efficiencies and economies of a truly global approach make the prices of their
`products less competitive than should be possible, and there is the additional
`problem of entering and maintaining current and accurate information across
`multiple databases.
`
`In conventional e-commerce it is not uncommon for the unscrupulous to sell brand
`name goods through Websites when they are not authorized to do so. In response,
`manufacturers desire to maintain better control of prices, marketing information
`about their products, sales, fulfillment, and customer service—all in a global
`context and, ideally, from a single integrated site.
`
`Buyers are reluctant to make international purchases when they fear that they will
`have no practical recourse if they pay for a product but either do not receive it or
`find the product is not acceptable. What is needed for a hesitant Buyer is an escrow
`service that will complete settlement only after the product has been successfully
`delivered and the Buyer is satisfied.
`
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`20
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`Case 6:24-cv-00103-DAE Document 1 Filed 02/26/24 Page 21 of 183
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`Many conventional e-commerce Websites have sought to sell products globally,
`but few if any have made a serious commitment to globalization by providing
`good translations in multiple l