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January 30, 2013

Newegg Wins Shopping Cart Patent Lawsuit

By Raju Shanbhag, TMCnet Contributor

Patent infringement lawsuits in the field of e-commerce are probably as old as the e-commerce business itself. Even major companies like Amazon, eBay (News - Alert) and Zappos have faced patent infringement lawsuits from companies who claim that their patent has been violated in one form or the other.

Newegg Inc. has announced that the company has finally won a legal battle against "patent troll" Soverain Software. This legal tussle has been going on for a while now, and on January 22, 2013, the Federal Circuit Court of Appeals gave decision in Newegg’s favor.

Newegg is an e-retailer that provides improved online customer experience. The company has an excess of 3 million products on its ward winning web site. According to the company, this web site provides users with countless customer reviews along with other advanced features, such as detailed specs and how-to’s.

According to Newegg, the court verdict has invalidated all patents that Soverain had asserted against Newegg.’ Sometime ago, Soverain claimed that the company had won the trial, and the court had ruled in its favor. But this new release by Newegg proves that it’s indeed Newegg which has won the suit.

It all started in 2007, when Soverain filed a lawsuit against numerous well known e-commerce businesses, including Newegg, claiming that these companies violated three patents of the company covering the online checkout process.

“We are pleased and delighted that the Federal Circuit has recognized that all of the patents Soverain asserted against Newegg are invalid,” said Newegg's chief legal Officer, Lee Cheng. “The appellate court's decision exposes Soverain's litigation campaign for what it was: a scheme designed to squeeze money from honest businesses whose hard work and innovation truly benefit society. As an innovator in the field of online commerce, Newegg has great respect for inventors and for valid intellectual property rights.”

Recently, the company announced the list of winners of its 2nd Annual Eggie Awards at the 2013 International CES (News - Alert) Show in Las Vegas.

Edited by Ashley Caputo

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