“Shopping cart” Patent Beaten by Newegg Comes Back To Court, Loses Again

Now patent troll will not get any more money from Victoria's Secret, Avon or others. During last congress, one of the patent reforms comes in spotlight and this patent was the patent of “online shopping cart”. In Congressional hearings the issue comes in spotlight, but till that time the shopping cart patent was dead as its owner, Soverain Software was beaten by Newegg, which is one of the retailers. Newegg won an appellate ruling while validating its patents and by throwing out more than $2.5 million jury verdict against it.

This ruling wiped out the biggest win of Soverain, which was the verdict against Victoria's Secret and Avon in 2011 and for that companies have ordered to pay almost more than $18 million with a "running royalty" of about 1 per cent to infringing the same patents over again.

Most of the apparel companies have been able to coast on the same legal platform with the win of Newegg, whereas; on the other side instead of admitting a defeat, Soverain have hired more law firms to file the appeal by Avon and Victoria's Secret. Before some days, a panel of judges in U.S. Court overturned the win of Soverain and re-affirmed the final decision that now "shopping cart" patent and its other patent for e-commerce, were invalid.

In general, whenever a patent-holder loses, then because of longstanding legal rules they wouldn't proceed with outstanding appeals to prevent the other parties from re-litigating the same case in different courts. However Soverain argued on the issue and stated that these rules shouldn’t apply as; Soverain hadn’t a full and fair opportunity to litigate the issue in courts.

It is true that East Texas jury has found that it is in the favor of Soverain's, but they didn’t address the issue that whether patents were obvious or not? But Soverain itself stopped the East Texas jury from considering the issue. The company, who was holding the patent, filed a complaint by arguing that its patents were non-obvious and it’s a matter of law, so the decision of district court will be final. But Newegg raise the issue again and apparently it was great surprise of win for Soverain.


Soverain stated that it would have raised certain different or additional arguments for appeal if it had known that these particular courts might reverse the district court on invalidity rather than only granting a new trial. Soverain argued that its shopping cart patent was special because it used to identify the product, whereas; the concept of product identifiers weren’t present in CompuServe Mall’s prior art technology, which knocked out Soverain's patent.

But the referred court noted that Soverain didn’t talk about the fact of product identifiers in Newegg case and this can be the reason for Soverain loss. However, Avon declined any official comment whereas; Victoria's Secret didn't respond immediately. A spokesperson from Soverain told Ars, that we respectively disagree with the court’s decision and do not feel that it was justice.