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 2025

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

The firm says new role will be at the forefront of how it delivers value and will help bridge the gap between lawyers, clients and tech
Qantm IP’s CEO and AI programme lead discuss the business’s investment and M&A plans, and reveal their tech ambitions
Controversial plans were scrapped by the Commission earlier this year after the Parliament had previously backed them
Lawyers at Spoor & Fisher provide an overview of how South Africa is navigating copyright and consent requirements to improve access to works for blind and visually impaired people
Gillian Tan explains how she balances TM portfolio management with fast-moving deals, and why ‘CCP’ is a good acronym to live by
In the eighth episode of a podcast series celebrating the tenth anniversary of IP Inclusive, we discuss IP Ability, a network for disabled people and carers active in the IP profession
The longest government shutdown in US history froze ITC operations, yet IP practices stayed steady as firms relied on early preparation and client communication
Licensing chief Patrik Hammarén also reveals that the company will rename its IPR business to better reflect its role in defining standards
The acquisition of Pecher & Partners follows the firm’s earlier expansion into litigation to create a ‘one-stop shop’
News of Via Licensing Alliance launching its first semiconductor patent pool and INTA electing a new president were also among the top talking points
Gift this article