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Newegg Wins Patent Appeal against Alcatel-Lucent

5/16/2013 Press Release


CITY OF INDUSTRY, Calif., May 16, 2013 --Newegg Inc., the leading electronics-focused e-retailer in the United States, today announced that the U.S. Court of Appeals for the Federal Circuit affirmed Newegg’s 2011 victory against Alcatel-Lucent USA, Inc. in a patent infringement lawsuit. On May 15, 2013, the Federal Circuit upheld the original decision, only days after listening to the parties’ arguments in Washington, D.C. on Friday, May 10, 2013.

In October 2011, only Newegg and one co-defendant, Overstock.com, took the case to trial. Other companies that had also been sued or threatened by suit by Alcatel-Lucent paid tens of millions of dollars to Alcatel-Lucent to avoid trial. Newegg and Overstock’s refusal to pay Alcatel-Lucent for patents they did not believe they infringed paid off not only for them, but also for other similarly situated companies.

Alcatel-Lucent had asserted that the online retailers infringed three patents covering basic e-commerce functionalities used by virtually every e-commerce site. A jury in the Eastern District of Texas found unanimously in favor of Newegg and Overstock and invalidated a critical patent owned by Alcatel-Lucent.

Newegg’s Chief Legal Officer, Lee Cheng, issued the following statement:

“Newegg is thrilled about the Federal Circuit’s decision. We believe this decision is an indication of the strength of the merits of our case.

“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.”

About Newegg Inc.
Newegg Inc. is the leading electronics-focused e-retailer in the United States. It owns and operates Newegg.com (www.newegg.com) and NeweggBusiness.com (www.neweggbusiness.com), and regularly earns industry-leading customer service ratings. Newegg delivers a world-class e-commerce platform and is committed to serving the online technology community, from tech-enthusiasts to small and medium-sized businesses. Both Newegg.com and NeweggBusiness.com feature a comprehensive selection of the latest computer hardware and consumer electronics products, detailed product descriptions and images, as well as how-to information and customer reviews. Newegg Inc. was founded in 2001 and is headquartered in City of Industry, California.



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