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

Cookies Settings

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

The IP boutique is betting that growing investment in quantum and semiconductors will fuel demand as technology shifts toward physical systems
Lawyers say the overhaul better reflects commercial reality, with changes spanning novelty searches, digital designs and access to a small claims track, but stopping short of criminalising unregistered design infringement
Carpmaels & Ransford hires its fourth partner of the year and wins access to UPC files, as fresh orders address costs, confidentiality and the use of divisional patents
Peter Ling of Lenz & Staehelin in Zurich discusses trends in patent litigation, the regulation of AI and the benefits of teaching IP
Brandsmiths and Powell Gilbert will contest claims over several UK trademarks in a High Court case examining the ownership and revival of a heritage brand
Hogan Lovells Cadwalader is taking a fresh strategic approach to pricing in its AI strategy. It could amplify calls for law firms to ditch the billable hour
Charles Harding plans to build a new team around life sciences oppositions and contentious work, drawing on his three decades developing a practice from scratch at D Young & Co
The firm reveals how its litigation strategies informed the arguments that took Masimo’s judgment past $818 million
The firm was rebuilding its IP practice through a string of patent hires and a Texas expansion, but its dissolution has put the newly built talent back into the market
AI can exploit longstanding gaps in copyright protection at remarkable speed, but EU law still provides tools to fight back, says Simon Hembt at Bird & Bird
Gift this article