August 25, 2010 by staff 

Newegg, A federal court has found three Soverain Software patents valid and infringed and ordered a new trial for damages Additional U.S. Patent No. 7,272,639. Judge Leonard Davis of the U.S. District Court for the Eastern District of Texas, Tyler Division entered Final Judgement in the case Soverain Software LLC v. Newegg Inc. on August 11, 2010, accompanied by an order for in-depth opinion on numerous post-trial motions in which all motions were denied Newegg. The court also affirmed the jury damage awards in U.S. Patent regarding Nos. 5,715,314 and 5,909,492 and establishes a fee under way to improve the lives of the two patents.

“This decision reaffirms the validity of an important group of patents dating from the dawn of electronic commerce,” said Katharine Wolanyk, president of Soverain. “We have made considerable investment in developing and defending our intellectual property, and were grateful to have a Court with substantial experience in patent law firmly decided in our favor. While we would have preferred to avoid a trial on, this ruling should put to rest any doubts as we continue our patent licensing program. ”

Newegg was the only defendant remaining in Soverain Software LLC v. CDW Corporation, Newegg Inc., Redcats USA, Inc., Systemax Inc.,, Inc., USA Redcats, LP, The Sportsman’s Guide, Inc., and TigerDirect, Inc. (Civil Action No. 6:07 cv511), a case filed in 2007 Soverain. The law firm Jones Day, a team led by partner Ken Adamo, Soverain successfully represented in this case and in cases before Soverain Software LLC v., Inc. and Gap, Inc. (Civil Action No. 6:04 cv14 and cv528 6:04). Soverain local counsel were Carl Roth, the Roth Law Firm, PC and Michael Smith, the company Siebman, Burg, Phillips & Smith, LLP.

“Soverain patents have been controlled by long years of litigation involving the world’s largest and Internet retailers further discussion at the U.S. Patent Office,” said Ken Adamo from Jones Day. “They are the real deal. Newegg and is awarded to an infringer of patents that are essential for your business, patents, many of their competitors have paid Soverain license.”

Soverain pioneering patent covering key aspects of electronic commerce and are licensed to over 40 companies such as, Inc., The Gap, Inc., Redcats USA, Inc., Shutterfly, Inc., Systemax Inc. TigerDirect, Inc., and, Inc. The patents were submitted in 1994 and 1995 by the predecessor Soverain Open Market Inc. in conjunction with research and development efforts that led to its software product Transact. Soverain acquired the business of dispatching software and related intellectual property in 2003 and launched its patent licensing program in 2004.

“We realized the strength of our patent portfolio from the beginning and thought it would be too much, especially after the licensing of Amazon and other major retailers like The Gap, Zappos and Shutterfly and the positive results of three new tests patents, “said Wolanyk. “This court decision confirms the legitimacy Soverain community established technology licensing.”

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