By Kasey Wang – Edited by Yunnan Jiang and Travis West
TQP Development, LLC v. 1-800-Flowers.com, Inc., No. 2:11-CV-248-JRG at *1 (E.D. Tex. 2015).
On July 15, 2015, the District Court for the Eastern District of Texas ruled that online computer hardware retailer Newegg did not infringe on or induce infringement of TQP’s patent for an encryption scheme. After a jury found in favor of TQP, Judge Gilstrap granted Newegg’s Motion for Judgment as a Matter of Law.
At issue is U.S. Patent No. 5,412,730, Claims 1, 6, 8, and 9. TQP asserted that the patent covered any website using Secure Sockets Layer (SSL) with the RC4 encryption cipher, a common combination for web retailers and other websites. After the jury awarded TQP $2.3 million but before Judge Gilstrap issued his final judgement, a different case involving the same TQP patent was decided in the District Court for the Eastern District of Texas. In this separate case, TQP Development, LLC v. Intuit Inc., No. 2:12-cv-180 (E.D. Tex. June 20, 2014), Judge Bryson “revised his earlier construction of a term” in TQP’s patent and “granted summary judgment of non-infringement.” Since the Intuit and Newegg websites use similar encryption schemes, Newegg filed a Notice of Subsequent Authority to inform Judge Gilstrap of this development. Judge Gilstrap ultimately granted Newegg’s Motion for Judgment as a Matter of Law and vacated the jury award.