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

IP firms say they have been educating some clients on AI use, with ‘knowledge-sharing’ becoming more prevalent
As the US patent system tilts further toward favouring patent owners, firms with a strong patentee focus can get ahead of the game
Amanda Yang and Rachel Tan at Rouse and Landy Jiang at Lusheng Law Firm provide an overview of the draft amendments to China’s trademark law
News of EIP launching an AI platform and a trade secret blow for TCS in the US were also among the top talking points
The four-partner addition includes A&O Shearman’s former co-head of global IP litigation
A settlement involving Disney and another ruling concerning a lawyer’s request for access to documents were also among the big developments
Merchant & Gould's managing partner explains why the firm launched a Boston office and why it brought on board a local boutique
The model covers court-guided settlements, submissions-led determination of infringement and validity issues, and provides leeway for the court to determine a FRAND rate during negotiations
Tie up between Belgium-based firms will create an outfit with almost 30 UPC representatives, and a tier one-ranked patent disputes team
Blank Rome’s launch in West Palm Beach, marked by the arrival of two IP partners, comes in response to rising demands from technology clients
Gift this article