Jury Finds Digital River Infringed Patent and Awards $750K to NPE
- October 24, 2012
October 24, 2012- More than six years after the filing of the initial complaint by non-practicing entity, DDR Holdings, a jury returned a verdict on October 12th finding that defendants Digital River and National Leisure Group infringed claims of at least one DDR Holdings patent. In January 2006, DDR Holdings, represented by attorney Louis Hoffman of the Hoffman Zur firm, filed suit against Cendant, Digital River, Expedia, Hotels.com, International Cruse and Excursion, National Leisure Group, OurVacationStore, and Site59.com asserting two patents (6,629,135 and 6,993,572) originating from a failed Internet startup, Nexchange, that ceased commercial operations in 2000. The patents-in-suit were subsequently acquired by the co-inventor and founder of Nexchange and assigned to DDR Holdings. The in-suit-patents relate to host websites that serve pages with the “look and feel” of other websites. The litigation campaign targeted travel sites that serve pages that look like partner/affiliate travel websites. The case was stayed in December 2006 while the two patents underwent reexamination. In June 2010, the patentability of the claims of the two patents was confirmed without changes. After the issuance of the reexamination certificates, the case was reopened and DDR later filed an amended complaint adding defendants Orbitz and Travelocity. A claim construction order entered in November 2011 construed the term “look and feel” to mean “data defining the look and feel.” The jury determined that Digital River infringed claims 13, 17, and 20 of the ’572 patent and National Leisure Group infringed claims 13, 17, and 20 of the ’572 patent in addition to claims 1,3, and 19 of the ’399 patent. Both defendants were ordered to pay DDR $750,000 in damages for infringement through the time of trial 2:06-cv-00042; 2:10-cv-00443.