Jury Says Newegg Infringed, Orders Company to Pay TQP $2.3 Million

  • November 27, 2013

Newegg has unsuccessfully defended against allegations by TQP Development LLC (TQP) that its patent (5,412,730) was infringed. The patent-in-suit describes a method of transmitting encrypted data. It originated with Telequip and was later assigned to the PACid Group, which became TQP.  Trial commenced on November 19th, 2013, before Judge Rodney Gilstrap in the Eastern District of Texas.  A week later, a jury ruled that Newegg infringed all four asserted claims and ordered the online consumer electronics retailer to pay $2.3 million.  TQP, a subsidiary of IPNav, sued Newegg and nine other defendants on May 6, 2011; all defendants except Newegg eventually settled or were dismissed.  In its defense, Newegg argued it did not infringe ‘730 and contended the asserted claims of the in-suit patent were invalid as anticipated and obvious but the jury found those arguments unpersuasive.  IPNav, through its subsidiaries TQP, Data Carriers, and SFA Systems, has brought three lawsuits against Newegg.  The case involving SFA was dismissed with prejudice in September 2013 but the case brought by Data Carriers is still ongoing. TQP has asserted the single ‘730 patent in over 100 cases, against more than 200 companies.  Active defendants in TQP’s ongoing litigations include Adobe, Google, Intuit, LinkedIn, Samsung, and Sony2:11cv00248


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