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

Priya Nagpal, who this month became the firm’s eighth IP partner, says its cross-practice expertise in areas closely linked to IP was a key draw
Harm van der Heijden is to join Ankar AI as head of patent innovation after 17 years in private practice
Alabama attorney Miya Aladebumoye has launched a new firm built on ‘big law’ experience and a personal touch approach
A UKIPO campaign aimed at combating fakes in the pre-loved fashion market and registration of the first Portuguese craft and industrial geographical indication were also among the top talking points
Chris Adams, Managing IP’s research lead, joins us to explain what practitioners need to know ahead of our first rankings release of 2026
Another IP litigator joins Winston & Strawn in Dallas as firm seeks to keep pace with ‘rapid’ growth of Texas market
Anthony O'Malley will replace Andrew Blattman at IPH, which owns several large IP firms across Australia, Asia and Canada
Barry Greenbaum, partner at Olshan Frome Wolosky, explains how in-house teams can update their approach to brand development, and where AI can add value
Christine Chiramel, who joins a full-service law firm after 17 years of working at specialist firms, says she’s excited to explore how corporate commercial issues are blurring into IP
Practitioners say increasing the pecuniary jurisdiction of India’s most popular IP litigation forum to around $2 million would spark unpredictability and make it difficult for SMEs to benefit
Gift this article