Newegg and Overstock defeat Alcatel in e-commerce patent appeal

Managing IP is part of Legal Benchmarking Limited, 1-2 Paris Gardens, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Newegg and Overstock defeat Alcatel in e-commerce patent appeal

The Federal Circuit has upheld a lower court’s decision to invalidate three patents belonging to telecoms equipment provider Alcatel Lucent, covering basic e-commerce functions used by almost every shopping site

Alcatel had claimed that shopping websites Newegg and Overstock infringed the patents, which covered functions including rescaling a website as the user resizes the browser window.

In 2011, Alcatel sued Newegg and Overstock, along with other companies including Amazon, Intuit, Kmart, Lands’ End, QVC, Sears and Zappos. All the defendants except Newegg and Overstock settled before the trial.

Newegg and Overstock fought the lawsuit, and a jury in the Eastern District of Texas ruled the patents were invalid.

Alcatel Lucent appealed, but on Wednesday the Federal Circuit upheld the lower court’s decision on Alcatel-Lucent v Overstock and Newegg without comment.

Newegg’s chief legal officer, Lee Cheng, issued a statement which said: “To date, we have invalidated four e-commerce patents that have been used to extract hundreds of millions of dollars in protection money. We believe that fighting patent trolls is the right thing to do. Our customers, at least, don’t have to subsidize costs to trolls.”

Newegg was represented in the appeal by a team led by Ed Reines of Weil Gotshal & Manges, Overstock was represented by Bracewell & Giuliani and Alcatel was represented by Mark Fleming of Wilmer Cutler Pickering Hale and Dorr.

more from across site and SHARED ros bottom lb

More from across our site

Public figures are turning to trademark protection to combat the threat of AI deepfakes and are monetising their brand through licensing deals, a trend that law firms are keen to capitalise on
News of Avanci Video signing its first video licence and a win for patent innovators in Australia were also among the top talking points
Tom Melsheimer, part of a nine-partner team to join King & Spalding from Winston & Strawn, says the move reflects Texas’s appeal as a venue for high-stakes patent litigation
AI patents and dairy trademarks are at the centre of two judgments to be handed down next week
Jennifer Che explains how taking on the managing director role at her firm has offered a new perspective, and why Hong Kong is seeing a life sciences boom
AG Barr acquires drinks makers Fentimans and Frobishers, in deals worth more than £50m in total
Tarun Khurana at Khurana & Khurana says corporates must take the lead if patent filing activity is to truly translate into innovation
Michael Moore, head of legal at Glean AI, discusses how in-house IP teams can use AI while protecting enforceability
Counsel for SEP owners and implementers are keeping an eye on the case, which could help shape patent enforcement strategy for years to come
Jacob Schroeder explains how he and his team secured victory for Promptu in a long-running patent infringement battle with Comcast
Gift this article