Newegg, Overstock Win Patent-Infringement Case - Twice

Newegg, Overstock Win Patent-Infringement Case

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Tyler, Texas - Alcatel-Lucent USA has lost a patent-infringement suit against Newegg.com and O.co (formerly Overstock.com), and had one of its patents invalidated in the process.

The global communications company accused the e-tailers of infringing three patents covering basic e-commerce functions including error corrections and product search capabilities.

The defendants successfully argued that the functions are used by virtually every e-commerce site, and a jury in an Eastern District federal court here dismissed the suit.

The jury further found that Alcatel-Lucent's "131 patent," relating to text boxes, drop-down menus and similar functionalities, is "anticipated and obvious" due to prior inventions, and invalidated it.

"Newegg is extremely pleased with [last] Friday's verdict," said Lee Cheng, the company's general counsel. "As an innovator in the online retail space, we have always respected the intellectual property rights of others. However, we will not hesitate to defend ourselves vigorously against frivolous claims and to do what we believe is necessary to prevent abuses of patent law and the legal system that stifle innovation and entrepreneurism."

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