Posts Tagged: "FitBit"

On July 8, the United States Court of Appeals for the Federal Circuit (CAFC), in Fitbit, Inc. v. Valencell, Inc., vacated a Final Written Decision of the United States Patent Trial and Appeal Board (PTAB) in an appeal from an inter partes review (IPR) of U.S. Patent No. 8,923,941 (the ’941 patent). In particular, the CAFC held that the PTAB erred in failing to consider the patentability of claims 3-5 of the ‘941 patent when determining that the claims were not unpatentable. Thus, the CAFC vacated the PTAB’s decision and remanded for consideration on the merits of patentability.

Although it’s not illegal to earn a profit, unfair business practices in the pursuit of holding a monopoly over an entire industry led to the breakup of Standard Oil, especially the rebates from railroad companies for oil shipments which substantially lowered Standard Oil’s transportation costs relative to its much smaller competitors. Recent academic research has suggested that, while the U.S. government acted appropriately to stop the cartelization of an industry, Standard Oil was engaging in typical capitalist activity in securing better deals which optimized oil shipments. This would seem somewhat less nefarious than an outright copying technologies from smaller competitors in an effort to stave off competition.

The fitness wearables market is driving millions of shipments per year in silicon and devices. By 2019, IDC predicts that the worldwide wearables market will grow to around 155.7 million units. In addition to driving revenues — the fitness wearables market alone is projected to reach nearly $30 billion US dollars in 2016 as noted. The patent licensing landscape for this market is on the verge of explosive growth, especially since many of the patents used in IoT technology are nearly 20 years old.

Technology integrated with health tools is a becoming a very popular trend within the healthcare industry and is increasingly being used on a more regular basis. Many of the wearable devices are providing a plethora of health data that can be used to inform both personal and clinical decisions for consumers utilize the growing roster of available tools. These popular do-dads range from fitness trackers to wearable heart rate monitors. Many are saying these devices will change the way we live and interact with technology from a physical perspective.

If the allegations in the Valencell complaint against Apple proves to be true, the dispute between Valencell and Apple yet another example of a small company that was lead astray by a larger company pretending to want to license their technology only to get a better look so they could shamelessly copy without regard to whether they infringed any existing patents. Indeed, the complaint says that would be in keeping with Apple’s long standing policy, quoting Steve Jobs as having said that Apple has “always been shameless about stealing great ideas.” See Complaint paragraph 14.

On November 2, 2015, San Francisco-based Fitbit Inc. filed a Section 337 complaint with the International Trade Commission (ITC) against AliphCom (d/b/a Jawbone) and BodyMedia, Inc. (Investigation No. ITC-337-3096). In a parallel proceeding in the U.S. District Court for the District of Delaware, Case No. 1:15-CV-00990, Fitbit alleged infringement of three patents assigned to Fitbit—namely, U.S. Patent Nos. 8,920,332 (titled Wearable Heart Rate Monitor); 8,868,377 (titled Portable Monitoring Devices and Methods of Operating Same); and 9,089,760 (titled System and Method for Activating a Device Based on a Record of Physical Activity). According to the district court complaint, Jawbone’s products associated with components of its UP series of trackers indirectly infringe the patents-at-issue. Fitbit hopes that it will be successful in preventing the import and sale in America of wearable activity tracking devices sold by Jawbone by requesting the ITC to issue a limited exclusion order and a cease and desist order.

Technology is in a constant state of evolution, and the Internet of Things (IoT) is no exception. The top five emerging markets for the IoT – medical, fitness wearables, industrial, automotive, and smart homes – are driven by patented IP, much of which is being applied in IoT inventions. The patents for the five technology areas of the IoT – Things, networking, computing and storage, services and analytics – differ in content and maturity. The bottom line is that the technologies at the beginning of this system, Things, and at the end of this system, analytics, are the newest. The technologies in between, networking, computing and storage, and services, are established, but will evolve and scale for IoT. It is in these “in between” areas that we see the most dominance of mature companies.