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Bracewell Records Patent Victory for Overstock.com

October 17, 2011

HOUSTON — Bracewell & Giuliani LLP won a jury verdict in a patent infringement case on behalf of Overstock.com against plaintiff Alcatel-Lucent in the U.S. District Court for the Eastern District of Texas--Tyler Division, before Judge Leonard Davis.


Alcatel originally filed the suit in September of 2009, accusing additional e-commerce defendants including Sears and Amazon.com of infringing multiple patents. Eight of the 10 defendants eventually settled, leaving Overstock.com and Newegg.com as the only remaining defendants. After deliberating for less than two hours, the jury returned the verdict in favor of Overstock.com  and Newegg.com on Friday, October 14.

The jury found that Overstock.com and co-defendant Newegg.com did not infringe any of the three patents Alcatel asserted against them. The jury also rendered a verdict of "invalidity" on Alcatel’s communications protocol patent – United States Patent 5,649,131 (‘131 patent) – that has been the subject of numerous lawsuits around the country. Evidence at trial showed Alcatel's patent application to the U.S. Patent Office (USPTO) that resulted in the issuance of the '131 patent was faulty because the claimed invention was both anticipated and rendered obvious by technologies from the 1980's that preceded Alcatel's patent application by years.

Bracewell attorneys involved in the matter include:

Partners: John H. Barr, Jr. and Alan D Albright

Associate: Christopher A. Shield

Blending sophisticated litigation experience with in-depth training in science, energy and technology, Bracewell's intellectual property litigation practice delivers an aggressive and practical defense of our clients’ valuable intellectual property rights. Our litigators have experience in courtrooms across the country, from the Eastern District of Texas to the Southern District of New York and the United States Court of Appeals for the Federal Circuit.