Advanced Marketing Systems, LLC (AMS) Has All Asserted Patent Claims Invalidated
MOUNTAIN VIEW, Calif., May 25, 2017 — The United States Patent and Trademark Office’s Patent Trial and Appeal Board (PTAB) recently issued decisions invalidating patent claims in three patents asserted against various retailers, including Walgreens, a longtime partner of Quotient Technology Inc. (NYSE: QUOT).
“This is a huge victory for us and our partners,” said Steven Boal, CEO of Quotient. “Although the claims weren’t against Quotient’s technology, we helped fight baseless litigation targeting the industry. The plaintiff publicly said that roughly 40 retailers would be subject to these patents. Well, we thought differently, and with this ruling sent them and others a strong message.”
The PTAB decisions stem from an aggressive campaign by Connecticut-based Advanced Marketing Systems against retailers with digital coupon programs, beginning with a lawsuit against The Kroger Co. in 2014, which reached a settlement later that year. In 2015, in addition to Walgreens, AMS sued Ahold USA, Inc., Delhaize America, Inc., Brookshire Grocery Company, CVS Pharmacy, Inc., Hy-Vee Inc., Ingles Markets Inc., and Publix Super Markets. AMS alleged that the retailers provided websites and mobile apps for loading digital coupons to rewards cards that infringed three AMS patents. Specifically, AMS alleged infringement of claim 9 of U.S. Patent No. 8,219,445, claim 1 of U.S. Patent No. 8,538,805, and claims 15 and 28 of U.S. Patent No. 8,370,199.
Quotient (identified as a real party-in-interest), along with some of the retailers, including Walgreens, challenged the validity of the AMS patents, filing requests with the PTAB for what’s called covered business method patent reviews (CBMs). After the PTAB instituted review of the patents, the ongoing district court cases filed by AMS were put on hold pending the outcome of the CBMs. Just recently, the PTAB ruled in our favor, invalidating all challenged claims, which are the same claims AMS asserted in the district court cases.
“When we reviewed the AMS patents and prior art, we knew we had to assist our partners in challenging the validity of the patents at the PTAB,” said Connie Chen, General Counsel of Quotient. “We’re delighted that the PTAB agreed with our arguments and found that the asserted patent claims were unpatentable.”
The ramifications of the PTAB decisions are not only significant for Quotient and its partners, but all retailers with digital couponing programs.
About Quotient Technology Inc.
Quotient Technology Inc. (NYSE: QUOT) is a leading digital promotion, media and analytics company that connects brands, retailers and consumers. We distribute digital coupons and media through a variety of products, including digital paperless coupons, digital printable coupons, coupon codes and card-linked offers. We operate Quotient Retailer iQ™, a real-time digital coupon platform that connects into a retailer’s point-of-sale system and provides targeting and analytics for manufacturers and retailers. Our distribution network includes our flagship app and site, Coupons.com, as well as Grocery iQ™, our thousands of publisher partners and, in Europe, the Shopmium mobile app. We serve hundreds of consumer packaged goods companies, such as Clorox, Procter & Gamble, General Mills and Kellogg’s, as well as top retailers like Albertsons Companies, CVS, Dollar General, Kroger and Walgreens. Founded in 1998, Quotient is based in Mountain View, Calif. Learn more at Quotient.com, and follow us on Twitter @Quotient.