IP Law Daily, PATENT—D. Del.: Network code image patent asserted against Reolink Innovation, retailers fails Alice test, (Apr 22, 2024)

By Kevin M. Finson

The patent was directed to communicating identifying information using an image and contained no inventive concept.

Patent claims for the use of an image to store and communicate codes for accessing a network were patent-ineligible because they were directed at an abstract idea of communicating identification information using an image, the U.S. District Court in Wilmington has held. The patent owner also failed to show an inventive concept in its network patent. The use of an image such as a QR code to store information used for establishing a network connection was not an inventive concept (ThroughTEK Co., Ltd. v. Reolink Innovation, Inc., April 19, 2024, Williams, G.).

ThroughTEK Co., Ltd. (ThroughTEK) was the owner of U.S. Patent No. RE47,842 (the ’842 patent), which disclosed a system to identify networked devices for establishing point to point connections between networked devices and the terminal device of a network system. ThroughTEK brought suit for infringement against Reolink Innovation, Inc., Lowe’s Home Improvement, LLC, Micro Center Inc., and Walmart, Inc. for infringement. The defendants moved to dismiss on the ground that the ’842 patent was patent-ineligible for being directed at an abstract idea. The magistrate judge recommended the motion be denied, finding that the claimed system provided specific improvements to the capabilities of the computer system used to establish a peer-to-peer connection. The defendants objected to the magistrate judge’s report and recommendations and the court applied the two-step Alice test in analyzing patent eligibility.

Abstract idea. The parties disputed the nature of the asserted claim, with defendants describing it as simply using an image such as a barcode or QR code to convey the information necessary to establish a communication link. ThroughTEK, however, characterized it as a reengineered architecture to establish a peer-to-peer connection in a way that eliminated the need for a management server as was used in the prior art, reducing delays and providing specific technological improvements.

Reviewing the claim language and the specification, the court held that the ’842 patent disclosed systems and methods for using an image to store and communicate identification codes for networked devices, which was an abstract idea.

Inventive concept. ThroughTEK argued that its “reengineered architecture” possessed an inventive concept through its elimination of a “management server” used in the prior art. The court held, however, that the functions of the “management server” seemed to be largely adopted by the patent claim’s “network server” and that there was no explanation forthcoming about how one was an improvement upon the other.

The court found that the claimed invention was no more inventive than the use of bar codes, which were commonplace prior to the date of the patent. In Secured Mail Solutions LLC v. Universal Wilde, Inc., 873 F.3d 905, 910 (Fed. Cir. 2017), the Federal Circuit made clear that the “‘use of barcodes, or similar improvements in computer functionality’ to automate the communication of identification codes ‘is not sufficient to impart patent eligibility.’”

The court granted the motion to dismiss and denied leave to amend, finding that any amendment would be futile.

The Case is No. 1:23-cv-00218-GBW-SRF.

Attorneys: Gerard M. O'Rourke (O'Kelly & O'Rourke, LLC) for ThroughTEK Co., Ltd. Robert M. Oakes (Fish & Richardson, PC) for Reolink Innovation Inc.

Companies: ThroughTEK Co., Ltd.; Reolink Innovation Inc.

Cases: Patent TechnologyInternet DelawareNews