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

Despite a broader slowdown in US IP partner hiring in 2025, litigation demand drove aggressive lateral expansion at select firms
Winston Taylor is expected to launch in May 2026 with more than 1,400 lawyers across the US, UK, Europe, Latin America and the Middle East
News of White & Case asking its London staff to work from the office four days a week and a loss for Canva at the Delhi High Court were also among the top talking points
With boutiques offering an attractive alternative to larger firms, former Gilbert’s partner Nisha Anand says her new firm will be built on tech-smart practitioners, flexible fees, and specialised expertise
IP specialists Jonathan Moss and Jessie Bowhill, who worked on cases concerning bitcoin, Ed Sheeran, and the Getty v Stability AI dispute, received the KC nod
Hannah Brown, an active AIPPI member, argues that DEI commitments must be backed up with actions, not just words
A ruling in the Kodak v Fujifilm dispute and a win for Google were among the major recent developments
Nick Aries and Elizabeth Louca at Bird & Bird unpick the legal questions raised by a very public social media spat concerning the ‘Brooklyn Beckham’ trademark
Michael Conway, who joined Birketts after nearly two decades at an IP boutique, says he was intrigued by the challenge of joining a general practice firm
The private-equity-backed firm said hires from DLA Piper and Eversheds Sutherland will help it become the IP partner of choice for innovative businesses
Gift this article