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

Sources say the judge could return to a disputes or mediation-focussed role, though others have questioned whether the Texas court will remain a litigation hotspot in his absence
Sheppard, which has hired 14 IP partners in the last 12 months, has cited client demand for expert counsel in SEP, ITC, and district court disputes
Tingxi Huo joins our ‘Five minutes with’ series to discuss boosting the value of clients’ IP and the importance of reflection
Hefty legal teams assembled for a three-day hearing in what was the court’s first foray into SEPs since Unwired Planet v Huawei
IP firm's new base will be located inside the tallest office space in the UK's ‘second city’
Practitioners at four firms across Asia and Europe share the do’s and don’ts of mindful networking ahead of the INTA Annual Meeting
Brand Action explains why the IP community can be a force for good in the world as thousands of professionals prepare to head to London for INTA’s Annual Meeting
The firm, which has also hired a senior trademark leader to lead operations in the region, believes greater China to be one of the most important IP jurisdictions
Attorneys at Gibson Dunn share why plaintiffs’ growing reliance on DMCA anti-circumvention claims in AI scraping cases exposes a critical vulnerability
Tom Carver, who spent the last 18 months sailing the Mediterranean, tells Managing IP why he’s ready to return to land
Gift this article