DCT

1:23-cv-01373

AlmondNet Inc v. LinkedIn Corp

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 1:23-cv-01373, D. Del., 12/01/2023
  • Venue Allegations: Venue is alleged to be proper in the District of Delaware because the Defendant is incorporated under the laws of the State of Delaware.
  • Core Dispute: Plaintiff alleges that Defendant's LinkedIn Ads and LinkedIn Audience Network products infringe nine U.S. patents related to internet-based advertising systems, cross-device targeting, and user profiling.
  • Technical Context: The patents address foundational technologies in the digital advertising sector, specifically focusing on methods for collecting user data across different websites and devices to enable targeted advertising.
  • Key Procedural History: The complaint alleges that Defendant had pre-suit knowledge of at least five of the asserted patents ('139, '146, '398, '878, and the '878's family member '398) due to a prior lawsuit filed by Plaintiff against Defendant's parent company, Microsoft Corp., in August 2021. In that case, Plaintiff allegedly identified "LinkedIn Ads" as an infringing product in infringement contentions served in February 2022, which may be significant for the claims of willful infringement.

Case Timeline

Date Event
1999-12-13 Earliest Priority Date ('582, '307, '249 Patents)
2000-11-28 Earliest Priority Date ('639, '586 Patents)
2006-06-16 Earliest Priority Date ('139, '146 Patents)
2007-04-17 Earliest Priority Date ('398, '878 Patents)
2010-10-26 '639 Patent Issued
2011-07-12 '307 Patent Issued
2012-08-14 '582 Patent Issued
2012-08-14 '586 Patent Issued
2014-03-11 '139 Patent Issued
2014-03-18 '398 Patent Issued
2014-07-08 '249 Patent Issued
2015-02-17 '146 Patent Issued
2020-07-14 '878 Patent Issued
2021-08-27 Plaintiff files suit, *AlmondNet, Inc. v. Microsoft Corp.*, alleging infringement of related patents
2022-02-18 Plaintiff serves infringement contentions against Microsoft identifying "LinkedIn Ads"
2022-04-27 Plaintiff serves venue discovery requests in Microsoft case
2022-05-03 Microsoft's counsel corresponds with Plaintiff regarding LinkedIn's status as a separate entity
2023-12-01 Complaint Filed

II. Technology and Patent(s)-in-Suit Analysis

U.S. Patent No. 8,244,582 - method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements

  • Patent Identification: U.S. Patent No. 8,244,582, "method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued August 14, 2012 Compl. ¶8

The Invention Explained

  • Problem Addressed: The patent addresses the challenge of creating comprehensive user profiles for targeted advertising when user data is siloed across many different, unassociated websites Compl. ¶1 '582 Patent, col. 1:19-25 Traditional methods struggled to aggregate these disparate pieces of information to form a valuable, holistic user profile '582 Patent, col. 1:26-34
  • The Patented Solution: The patent describes a centralized computer system that receives "partial profiles" of users from a plurality of unaffiliated third-party websites that the user visits Compl. ¶11 '582 Patent, abstract This data is collected, for example, via URL redirection when a user accesses a third-party site '582 Patent, col. 7:46-55 The system then automatically adds this new data to a "maintained profile" believed to be associated with the same user, and generates a record of which website contributed which data, thereby creating a richer, aggregated profile for use in ad targeting '582 Patent, abstract '582 Patent, col. 4:1-24
  • Technical Importance: This method provides a framework for breaking down data silos and creating richer, cross-domain user profiles, which is a foundational capability for modern behavioral and retargeting-based digital advertising systems '582 Patent, col. 2:1-4

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 Compl. ¶11 Doc. 1-2, p. 2
  • Essential elements of independent claim 1 include:
    • An automated method of collecting profiles of Internet-using entities.
    • Electronically receiving at a computer system a partial profile of an entity from at least one server of an unaffiliated third party operating a website.
    • The partial profile contains at least one profile attribute related to the entity.
    • Receiving the partial profile is achieved by automatic electronic URL redirection from a portion of the third-party website.
    • Automatically adding the received partial profile to a maintained profile believed to be related to the same entity.
    • Automatically generating and storing a record of which third party contributed the profile attributes.
    • The maintained profile comprises data used in targeting third-party advertisements to the user.
  • The complaint does not explicitly reserve the right to assert dependent claims, but this is standard practice in patent litigation.

U.S. Patent No. 7,979,307 - method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements

  • Patent Identification: U.S. Patent No. 7,979,307, "method and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued July 12, 2011 Compl. ¶15

The Invention Explained

  • Problem Addressed: As a parent to the '582 Patent, the '307 Patent addresses the same fundamental problem: the difficulty of aggregating user profile data for advertising when that data is fragmented across numerous, independent websites '307 Patent, col. 1:19-34
  • The Patented Solution: The '307 Patent discloses a nearly identical solution to the '582 Patent. A central system receives "partial profiles" from various third-party websites visited by a user, combines them into a "maintained profile," and tracks the source of the data contributions '307 Patent, abstract '307 Patent, col. 3:56-4:24 This allows for the creation of more comprehensive profiles for targeting advertisements.
  • Technical Importance: The technology established a technical and business method for a central entity to act as a broker or aggregator of user attributes, enabling more effective ad targeting than was possible when relying on data from a single domain '307 Patent, col. 2:1-4

Key Claims at a Glance

  • The complaint asserts at least independent claim 1 Compl. ¶18 Doc. 1-4, p. 2
  • The elements of independent claim 1 of the '307 Patent are identical to those of independent claim 1 of the '582 Patent, as described above.

U.S. Patent No. 8,775,249 - method, computer system, and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements

  • Patent Identification: U.S. Patent No. 8,775,249, "method, computer system, and stored program for accumulating descriptive profile data along with source information for use in targeting third-party advertisements," issued July 8, 2014 Compl. ¶22
  • Technology Synopsis: This patent, part of the same family as the '582 and '307 patents, describes a method for collecting "partial profiles" from unaffiliated third-party websites. It specifies that the collected partial profile is already available to the third party and contains at least one attribute related to the user entity, which is then stored in a central system Compl. ¶25 '249 Patent, abstract
  • Asserted Claims: At least independent claim 1 Compl. ¶25 Doc. 1-6, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶23

U.S. Patent No. 7,822,639 - added-revenue off-site targeted internet advertising

  • Patent Identification: U.S. Patent No. 7,822,639, "added-revenue off-site targeted internet advertising," issued October 26, 2010 Compl. ¶29
  • Technology Synopsis: The patent discloses a method for securing revenue from off-site advertising. The system creates electronic records of visitors to a first website (e.g., using a tag), facilitates the delivery of ads to those same visitors when they are on a second, different website, and causes the proprietor of the second site to receive revenue as a consequence '639 Patent, abstract Compl. ¶32 This process allows the first site to monetize its audience even when they are not on the first site itself.
  • Asserted Claims: At least independent claim 24 Compl. ¶32 Doc. 1-8, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶30

U.S. Patent No. 8,244,586 - computerized systems for added-revenue off-site targeted internet advertising

  • Patent Identification: U.S. Patent No. 8,244,586, "computerized systems for added-revenue off-site targeted internet advertising," issued August 14, 2012 Compl. ¶36
  • Technology Synopsis: This patent, related to the '639 Patent, describes a tangible computer system that implements a method for off-site ad revenue. The system creates records of visitors to a first site using a tag, facilitates the direction of off-site ads to those visitors on a second site, and causes the first site to receive revenue as a result '586 Patent, abstract Compl. ¶39
  • Asserted Claims: At least independent claim 1 Compl. ¶39 Doc. 1-10, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶37

U.S. Patent No. 8,671,139 - media properties selection method and system based on expected profit from profile-based ad delivery

  • Patent Identification: U.S. Patent No. 8,671,139, "media properties selection method and system based on expected profit from profile-based ad delivery," issued March 11, 2014 Compl. ¶43
  • Technology Synopsis: The patent describes a method of directing electronic ads by determining an anticipated profit from placing an ad based on a visitor's profile. The system selects a second media property (e.g., a third-party website) on which to place the ad only if doing so is expected to generate a profit, and then authorizes the ad display '139 Patent, abstract Compl. ¶49
  • Asserted Claims: At least independent claim 1 Compl. ¶49 Doc. 1-12, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶44

U.S. Patent No. 8,959,146 - media properties selection method and system based on expected profit from profile-based ad delivery

  • Patent Identification: U.S. Patent No. 8,959,146, "media properties selection method and system based on expected profit from profile-based ad delivery," issued February 17, 2015 Compl. ¶53
  • Technology Synopsis: This patent is a continuation of the '139 Patent and discloses a similar method. It involves directing an ad to a third-party server controlling ad space on a second media property, based on information about an electronic visitor to a first media property, subject to determining that a condition (e.g., a profitable price) has been met '146 Patent, abstract Compl. ¶59
  • Asserted Claims: At least independent claim 1 Compl. ¶59 Doc. 1-14, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶54

U.S. Patent No. 8,677,398 - systems and methods for taking action with respect to one network-connected device based on activity on another device connected to the same network

  • Patent Identification: U.S. Patent No. 8,677,398, "systems and methods for taking action with respect to one network-connected device based on activity on another device connected to the same network," issued March 18, 2014 Compl. ¶63
  • Technology Synopsis: This patent describes a cross-device targeting method. The system takes an action (e.g., delivering an ad) with respect to a second device based on profile data associated with a first device. The association between the two devices is based on their connection to a common local area network (LAN), for example, by having a common IP address '398 Patent, abstract Compl. ¶69
  • Asserted Claims: At least independent claim 13 Compl. ¶69 Doc. 1-16, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶64

U.S. Patent No. 10,715,878 - targeted television advertisements based on online behavior

  • Patent Identification: U.S. Patent No. 10,715,878, "targeted television advertisements based on online behavior," issued July 14, 2020 Compl. ¶73
  • Technology Synopsis: This patent, from the same family as the '398 patent, applies the cross-device association concept to targeting television ads based on online behavior. It describes identifying an association between multiple electronic devices connected to a common LAN and using that association to take a cross-device action, such as delivering a TV ad based on web browsing activity '878 Patent, abstract Compl. ¶79
  • Asserted Claims: At least independent claim 1 Compl. ¶79 Doc. 1-18, p. 2
  • Accused Features: LinkedIn Ads and the LinkedIn Audience Network Compl. ¶74

III. The Accused Instrumentality

Product Identification

  • The complaint identifies "LinkedIn Ads" and/or the "LinkedIn Audience Network" as the "Accused Instrumentalities" Compl. ¶9 Compl. ¶16 Compl. ¶23

Functionality and Market Context

  • The complaint alleges that the accused products form a system for targeted advertising. A core component is the "LinkedIn Insight Tag," a piece of JavaScript code that advertisers place on their websites Doc. 1-2, p. 3
  • This tag enables the collection of data from visitors to those third-party websites, including URL, referrer, IP address, and device characteristics Doc. 1-2, p. 4 This data is used to build user profiles and enables "Retargeting," where personalized ads are shown to users after they have left the initial website Doc. 1-2, p. 2 One such screenshot provided in the complaint describes this functionality as a way to "Engage your audience before, during, and after your event" Doc. 1-2, p. 2
  • The "LinkedIn Audience Network" is a network of third-party publisher websites and applications where LinkedIn can place these targeted ads, extending the reach of an ad campaign beyond LinkedIn's own website Compl. ¶30 Doc. 1-8, p. 2 Another visual from the complaint illustrates how the Audience Network allows advertisers to "Reach millions of professionals across multiple touchpoints on our network of publishers" Doc. 1-8, p. 2
  • The combination of the Insight Tag for data collection and the Audience Network for ad delivery allegedly allows LinkedIn to track users across the internet, build profiles based on their cross-domain behavior, and serve them targeted ads on third-party properties Compl. ¶¶9-11

IV. Analysis of Infringement Allegations

U.S. Patent No. 8,244,582 Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
An automated method of collecting profiles of Internet-using entities, the method comprising: The Accused Instrumentalities perform an automated method of collecting profiles of Internet-using entities, such as through the LinkedIn Insight Tag. Doc. 1-2, p. 2 col. 3:56-59
(a) electronically receiving at a programmed computer system ... a partial profile of an entity that uses a user computer ... which partial profile contains at least one profile attribute related to the entity, and automatically with the computer system storing the received partial profile; The Accused Instrumentalities, via the LinkedIn Insight Tag placed on third-party websites, electronically receive a partial profile (e.g., browsing history, retargeting segments) containing profile attributes, and store it. Doc. 1-2, pp. 3-9 col. 3:60-4:8
(b) wherein receiving the partial profile is achieved by automatic electronic URL redirection from a portion of a page of the website accessed by the user computer; The Accused Instrumentalities allegedly receive the partial profile via URL redirection from the page where the LinkedIn Insight Tag is installed. Doc. 1-2, pp. 9-13 col. 4:9-14
(c) automatically with the computer system electronically adding the received partial profile to a maintained profile believed to be related to the same entity; The Accused Instrumentalities automatically add the received partial profile to a maintained profile associated with the user. Doc. 1-2, pp. 13-17 col. 4:15-19
(d) automatically with the computer system generating and storing an electronic record of which of the plurality of unaffiliated third parties contributed to the maintained profile particular profile attributes; The Accused Instrumentalities generate and store a record indicating which third-party website supplied the profile attributes, as LinkedIn knows the source of the data from the Insight Tag (e.g., "Website Actions"). Doc. 1-2, pp. 17-20 col. 4:20-24
(e) wherein the maintained profile, including the added partial profile, comprises data used in targeting third-party advertisements to the user computer over the global computer network. The maintained profile, which includes the added partial profile information, is used to target third-party advertisements to the user's computer via the LinkedIn Audience Network. Doc. 1-2, pp. 20-25 col. 4:25-30

U.S. Patent No. 7,979,307 Infringement Allegations

Claim Element (from Independent Claim 1) Alleged Infringing Functionality Complaint Citation Patent Citation
An automated method of collecting profiles of Internet-using entities, the method comprising: The Accused Instrumentalities perform an automated method of collecting profiles of Internet-using entities, such as through the LinkedIn Insight Tag. Doc. 1-4, pp. 2-3 col. 3:56-59
(a) electronically receiving at a programmed computer system ... a partial profile of an entity that uses a user computer ... which partial profile contains at least one profile related to the entity, and automatically with the computer system storing the received partial profile; The Accused Instrumentalities, via the LinkedIn Insight Tag placed on third-party websites, electronically receive a partial profile (e.g., browsing history, retargeting segments) containing profile attributes, and store it. Doc. 1-4, pp. 3-9 col. 3:60-4:8
(b) wherein receiving the partial profile is achieved by automatic electronic URL redirection from a portion of a page of the website accessed by the user computer; The Accused Instrumentalities allegedly receive the partial profile via URL redirection from the page where the LinkedIn Insight Tag is installed. Doc. 1-4, pp. 9-13 col. 4:9-14
(c) automatically with the computer system electronically adding the received partial profile to a maintained profile believed to be related to the same entity; The Accused Instrumentalities automatically add the received partial profile to a maintained profile associated with the user. Doc. 1-4, pp. 13-17 col. 4:15-19
(d) automatically with the computer system generating and storing an electronic record of which of the plurality of unaffiliated third parties contributed to the maintained profile particular profile attributes; The Accused Instrumentalities generate and store a record indicating which third-party website supplied the profile attributes, as LinkedIn knows the source of the data from the Insight Tag. Doc. 1-4, pp. 17-20 col. 4:20-24
(e) wherein the maintained profile, including the added partial profile, comprises data used in targeting third-party advertisements to the user computer over the global computer network. The maintained profile, which includes the added partial profile information, is used to target third-party advertisements to the user's computer via the LinkedIn Audience Network. Doc. 1-4, pp. 20-24 col. 4:25-30
  • Identified Points of Contention:
    • Scope Questions: A primary question may be whether the data collected by the LinkedIn Insight Tag (e.g., IP address, user-agent string) constitutes a "partial profile" containing "profile attributes" as those terms are used in the patents. The defense may argue that this is anonymous, technical data, whereas the patent specification provides examples such as gender, age, and education '582 Patent, col. 2:34-36
    • Technical Questions: The infringement theory for the '582 and '307 patents hinges on the claim that the LinkedIn Insight Tag's operation constitutes "automatic electronic URL redirection" '582 Patent, cl. 1 A central technical question will be whether the functionality of a JavaScript tag sending data to a server is technically and legally equivalent to the "URL redirection" described in the patent specification.

V. Key Claim Terms for Construction

Analysis based on U.S. Patent Nos. 8,244,582 and 7,979,307.

  • The Term: "partial profile"

  • Context and Importance: This term is the foundational unit of data that the patented method collects and aggregates. The viability of the infringement case depends on whether the data collected by LinkedIn's Insight Tag (e.g., IP address, browser type, visited URL) falls within the legal construction of "partial profile."

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The specification defines "Profile" broadly as "[a] collection of attributes that describe a person or an organization or any other entity" '582 Patent, col. 2:31-33 This broad definition may support an interpretation that includes the technical and behavioral data collected by the Accused Instrumentalities.
    • Evidence for a Narrower Interpretation: The specification provides specific examples of profile attributes, such as "the person's gender, the person's age, the person's education, the person's interests as reflected in his behavior" '582 Patent, col. 2:34-36 A defendant may argue these examples limit the term to more descriptive, personal data rather than the more technical data points collected by the Insight Tag.

  • The Term: "unaffiliated third parties"

  • Context and Importance: The claims require receiving profile data from servers controlled by "unaffiliated third parties" '582 Patent, cl. 1 Practitioners may focus on this term because the nature of the relationship between LinkedIn and the websites that install its Insight Tag is central to infringement. If these websites are deemed "affiliated," the claim may not be met.

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The patent does not explicitly define "unaffiliated." A plaintiff may argue for its plain and ordinary meaning: separate corporate entities that are not under common ownership or control. Under this view, any third-party advertiser using the Insight Tag would qualify.
    • Evidence for a Narrower Interpretation: The patent's description of a "profile provider" that "cooperates with a CAS" '582 Patent, col. 5:11-20 could be used to argue that the system contemplates a specific, arm's-length transactional relationship. A defendant may argue that by agreeing to install the Insight Tag and participate in LinkedIn's advertising ecosystem, a website becomes an "affiliated" partner in the context of the claimed system, not an "unaffiliated" source of data.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges induced and contributory infringement for U.S. Patent Nos. 8,671,139; 8,959,146; 8,677,398; and 10,715,878 (Compl. ¶47; Compl. ¶48). The allegations are based on Defendant actively encouraging and instructing customers to use the Accused Instrumentalities (e.g., installing the Insight Tag) through "user manuals and online instruction materials on its website" with the intent that users will commit infringing acts Compl. ¶47 Compl. ¶57
  • Willful Infringement: The complaint alleges willful infringement for the same four patents ('139, '146, '398, '878), asserting that Defendant knew of or was willfully blind to the patents and their infringement long before the suit was filed Compl. ¶46 Compl. ¶56 Compl. ¶66 Compl. ¶76 The basis for this allegation is a prior lawsuit against Defendant's parent company, Microsoft, where Plaintiff served infringement contentions in February 2022 that explicitly identified "LinkedIn Ads" as an infringing product Compl. ¶46

VII. Analyst's Conclusion: Key Questions for the Case

  • A core issue will be one of definitional scope: can the technical data collected by the LinkedIn Insight Tag, such as IP addresses and browser characteristics, be construed to meet the meaning of "descriptive profile data" as contemplated by the patents, which provide examples like a user's age, education, and interests?
  • A key question of system architecture will be whether the websites that install the LinkedIn Insight Tag function as the "unaffiliated third parties" required by several key claims, or if their integration into LinkedIn's advertising ecosystem creates a relationship that falls outside the patents' scope.
  • A central question for damages will be one of willfulness: does the prior litigation against LinkedIn's parent company, where "LinkedIn Ads" were specifically accused of infringement, establish pre-suit knowledge and willful blindness, particularly in light of Microsoft's defense that LinkedIn is a "separate and distinct entity"?
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