Media Coverage
Source: Law360
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
03.28.17
On Monday, the Patent Trial and Appeal Board (PTAB) ruled in favor of Kroger Co. and Brookshire Grocery Co. in a case against NexusCard Inc., reports Law360.
The ruling comes after Kroger and Brookshire challenged the validity of a patent held by NexusCard for a computerized membership system, claiming that the patent protects an “abstract idea of collecting and storing information related to a membership discount program.” The patenting of abstract ideas is invalid under Section 101 of the Patent Act, a precedence set in Alice Corp. v. CLS Bank International.
The two companies challenged the patent after NexusCard filed infringement lawsuits against numerous drugstore and grocery retailers over each’s respective reward program, including Brookshire and Kroger. The case against Brookshire was one of many to be either dropped or settled, while the case against Kroger was dismissed as an outcome of the PTAB ruling.
NexusCard has appealed the decision, and oral arguments in front of the Federal Circuit are set to take place in May.
Kroger and Brookshire were represented by Northern Virginia Intellectual Property partner William Atkins and Austin Intellectual Property partner Michael Chibib and counsel Brian Nash.
Read more about PTAB’s decision on Law360 (subscription required).