Almondnet, Inc. V. Amazon.Com, Inc., Et Al.

Parties Involved

  • Plaintiff(s): AlmondNet, Inc. | Intent IQ, LLC
    • Counsel for Plaintiff: Amy Hayden| Daniel B. Kolko | James S. Tsuei | Jonathan Ma | Adam Hoffman | Benjamin T. Wang | Brian D. Ledahl | David T. Shackelford | James Milkey | Jason M. Wietholter | Marc A. Fenster | Reza Mirzaie | Andrea L. Fair
    • Experts for Plaintiff(s): Jim W. Bergman

 

  • Defendant(s): Amazon.Com, Inc.|  Amazon Web Services, Inc. | Amazon.com Services LLC  |
    • Counsel for Defendants: Christopher L. Larson| Dargaye Churnet | David Hadden | James Stephen Trainor | Ravi Ranganath | Saina S. Shamilov | Brian M. Hoffman | Eric B. Young | Jeffrey Ware | Jessica Weili Lin | Johnathan Lee Chai | Johnson Kuncheria | Kevin X. McGann | Todd R. Gregorian | Deron R. Dacus | Eric Arthur Menist
    • Experts for Defendant(s): Dr Henry Houh | W. Christopher Bakewell

Verdict Information

  • Verdict Date: June 14, 2024
  • Total Damages awarded to Plaintiff: $121.95 million

About the Case

Cause

AlmondNet, a company specializing in targeted advertising technology, filed a lawsuit against Amazon and its subsidiaries for patent infringement. The lawsuit claimed that Amazon’s advertising platform and related products infringed on ten of AlmondNet’s patents. The patents asserted by AlmondNet included United States Patent Nos. 8,677,398, 8,244,582, 8,775,249, 7,979,307, 8,959,146, 8,671,139, 9,508,089, 9,830,615, 7,822,639, and 8,244,586.

The patents covered various aspects of targeted advertising technology. They included methods for accumulating user profile data and delivering targeted ads based on that data, systems for selecting ad properties based on expected profits from profile-based ad delivery, techniques for directing profile-based ads through ad networks to users across multiple websites, and methods for generating additional revenue through off-site targeted internet advertising. Several patents specifically focused on leveraging user activity across connected devices to enable targeted advertising. The patents aimed to facilitate effective targeted advertising while respecting user privacy by utilizing user profiles and browsing histories without directly identifying individuals.

AlmondNet alleged that Amazon’s advertising platform used similar technologies for targeted ad delivery, user profiling, and data monetization, infringing on AlmondNet’s patented methods and systems. AlmondNet claimed that Amazon was aware of the patents but continued to infringe despite being notified in 2019. Plaintiff emphasized its pioneering role in privacy-friendly targeted advertising and its extensive intellectual property portfolio. The company sought monetary damages, including enhanced damages for willful infringement, and a permanent injunction against further infringement by Amazon.

Injury

In the patent infringement lawsuit filed by AlmondNet, Inc. and Intent IQ, LLC against Amazon.com, Inc., Amazon.com Services LLC, and Amazon Web Services, Inc., AlmondNet alleged that it suffered injuries due to Amazon’s infringing activities. The injuries were primarily financial losses caused by Amazon’s unauthorized use of AlmondNet’s patented technologies in its advertising platform and related products and services. AlmondNet claimed that Amazon’s infringement of the asserted patents deprived AlmondNet of the opportunity to license its patented technologies to Amazon or collect royalties for Amazon’s use of the patented inventions. By using AlmondNet’s patented targeted advertising methods and systems without authorization, Amazon gained an unfair competitive advantage in the online advertising market. This allowed Amazon to attract more advertisers and generate higher advertising revenues.

Furthermore, AlmondNet alleged that Amazon’s willful infringement, which continued even after being notified of the patents and the alleged infringement, caused AlmondNet to suffer additional financial losses. AlmondNet claimed that it was entitled to enhanced damages, potentially up to treble damages, due to Amazon’s willful and deliberate infringement of the asserted patents. In addition to the financial losses, AlmondNet argued that Amazon’s infringement injured AlmondNet’s ability to commercialize and monetize its patented technologies effectively.

As a pioneer in privacy-friendly targeted advertising, AlmondNet considered its intellectual property portfolio a valuable asset. Amazon’s infringement undermined AlmondNet’s efforts to capitalize on its innovations and recoup its investments in research and development. AlmondNet further alleged that Amazon’s continued infringement, if not stopped, would cause AlmondNet to suffer irreparable harm, as Amazon’s dominant position in the e-commerce and online advertising space could make it increasingly difficult for AlmondNet to compete and enforce its patent rights effectively.

Damages

AlmondNet sought monetary damages, including enhanced damages for willful infringement, as well as a permanent injunction to prevent Amazon from further infringing AlmondNet’s patents and causing additional financial losses and harm to AlmondNet’s business interests.

Jury Verdict

The jury found that AlmondNet proved by a preponderance of the evidence that Amazon infringed certain claims of the asserted patents, which were United States Patent Nos. 8,671,139 and 7,822,639. The jury awarded $121.95 million in damages to AlmondNet for Amazon’s infringement of the patents.

 Court Documents:

Available upon Request