Didomi Wins Again on Appeal Achieving Dismissal of Nuisance Patent Infringement Suit By Veripath
Tuesday, February 9, 2021 - Didomi, a Paris-based marketing technology company, has successfully won again on appeal in a US federal appeals court achieving the dismissal of a nuisance patent infringement lawsuit by Veripath, Inc. Veripath claimed that cookie consent notices on Didomi’s website violated its patent called “Methods and Systems for User Opt-In to Data Privacy Agreements” (U.S. Patent No. 10,075,451), but a US federal district court dismissed the lawsuit in March 2020 finding Veripath’s patent was invalid as being directed merely to an abstract idea and lacked any "inventive concept". This week, the Federal Circuit affirmed the District Court's decision, dismissing Veripath’s claims as patent- ineligible pursuant to 35 U.S.C. § 101.
On Monday February 8, 2021, a three-judge panel of the US Federal Circuit Appeals Court affirmed the District Court's 2020 decision, which dismissed Veripath’s claims as patent-ineligible pursuant to 35 U.S.C. § 101.
The Federal Circuit agreed with Didomi’s arguments and found unpersuasive the tenuous and unsupported arguments advanced by Veripath. The Federal Circuit's reasoning predominantly followed the arguments and logic set forth in the District Court's 2020 decision, which disagreed with Veripath's claim that its patent was patent-eligible.
The Federal Circuit found that "at its most basic level, [Veripath’s patent] is anchored on the abstract idea of exchanging privacy for functionality" and "at most, [it] is directed to no more than an improvement to the abstract notion of exchanging privacy for functionality." The Court indicated that it was not enough to merely improve a fundamental practice or abstract process by invoking a computer merely as a tool.
Furthermore, akin to what the District Court’s 2020 decision already stated, the Federal Circuit was unconvinced by Veripath's arguments and found that the patent lacked any "inventive concept." The Federal Circuit held that Veripath’s claims were insufficient to transform the invention into patent-eligible subject matter and affirmed the District Court’s 2020 decision.
The district court’s grant of Didomi’s motion to dismiss Veripath’s nuisance lawsuit in March 2020 set a very important precedent in our industry. We at Didomi are very happy that the appeals court agreed and found Veripath’s “new” arguments unpersuasive and affirmed the initial judgment. We just cannot let people with vague ideas obtain patents and then file frivolous lawsuits against innovative companies because it would stifle innovation unlawfully. I am thankful that our counsel at Amster, Rothstein & Ebenstein LLP helped us defend our case. All companies should be able to put consent at the heart of their digital operations.
We are pleased to say that the Federal Circuit and District Court agreed with Didomi and concluded that the claims of Veripath’s patent are clearly patent-ineligible pursuant to 35 U.S.C. § 101. Such findings are necessary to ensure that only quality patents that adequately meet the statutory eligibility requirements are enforceable.
The prior timeline of the case can be found here: Didomi Obtains Dismissal By US Court of Nuisance Patent Infringement Suit By Veripath Over "User Opt-in and Data Privacy" Patent (April 2020)
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