DCT

8:26-cv-02075

Causam Enterprises Inc v. Baltimore Gas Electric Co

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 8:26-cv-02075, D. Md., 05/26/2026
  • Venue Allegations: Venue is asserted on the basis that Defendant resides in the district, maintains a regular and established place of business in the district, and has committed the alleged acts of infringement within the district.
  • Core Dispute: Plaintiff alleges that Defendant’s demand response programs for residential and commercial customers, which manage electricity consumption during peak demand, infringe six of Plaintiff's patents related to electric power grid management.
  • Technical Context: The technology concerns systems for actively managing an electric power grid by controlling a large number of power-consuming devices to reduce demand, thereby creating a verifiable "reserve" that enhances grid stability and reliability.
  • Key Procedural History: The complaint contextualizes the dispute within the framework of U.S. energy regulation, noting that Federal Energy Regulatory Commission (FERC) Order No. 745, issued in 2011, established a compensation framework for demand response resources, a key regulatory development that created a market for the type of technology claimed in the asserted patents.

Case Timeline

Date Event
2003-01-01 Approximate date inventor Joseph Forbes foresaw need for patented systems (approx.)
2007-08-28 Earliest Priority Date for ’375, ’285, and ’134 Patents
2011-03-15 FERC issued Order No. 745
2012-07-14 Earliest Priority Date for ’654 Patent
2018-10-30 U.S. Patent No. 10,116,134 Issued
2020-09-08 U.S. Patent No. 10,768,654 Issued
2022-03-01 U.S. Patent No. 11,262,779 Issued
2023-07-18 U.S. Patent No. 11,703,903 Issued
2024-10-22 U.S. Patent No. 12,124,285 Issued
2025-08-12 U.S. Patent No. 12,386,375 Issued
2025-12-31 EnergyHub acquires Resideo's grid services business (approx.)
2026-05-26 Complaint Filed

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

This report provides a full analysis for U.S. Patent Nos. 10,116,134 and 10,768,654, as the provided documents contain their full specifications, which is necessary for a detailed review. The remaining four patents are analyzed in capsule format.

U.S. Patent No. 10,116,134

  • Patent Identification: U.S. Patent No. 10,116,134, titled "Systems and Methods for Determining and Utilizing Customer Energy Profiles for Load Control for Individual Structures, Devices, and Aggregation of Same," issued October 30, 2018.

The Invention Explained

  • Problem Addressed: The patent's background section notes that power utilities have historically been unable to collect detailed data about energy consumption within a customer's premises, limiting their ability to create extensive and effective customer profiles for demand management (Compl. ¶¶25-26; ’134 Patent, col. 1:56-68). This prevented demand reduction programs from being treated as reliable "reserves" (Compl. ¶21).
  • The Patented Solution: The invention is a system that creates and uses detailed customer energy profiles to manage electrical load control events (Compl. ¶27). A central server generates profiles for customers based on consumption information from their controllable devices (e.g., smart thermostats) (Compl. ¶¶25-26). These profiles are aggregated and used to generate a "candidate list" of service points for a load control event, allowing the utility to precisely target and verify energy reductions (Compl. ¶¶63, 84; ’134 Patent, abstract; ’134 Patent, col. 2:23-49).
  • Technical Importance: This technology enabled the creation of verifiable, dispatchable demand response resources from a large number of residential and commercial devices, transforming load curtailment into a quantifiable asset for grid stabilization (Compl. ¶¶24, 26).

Key Claims at a Glance

  • The complaint asserts independent claim 19 (Compl. ¶84).
  • The essential elements of independent claim 19 include:
    • A memory storing a database with a plurality of customer profiles for load control events, where each profile includes energy consumption information for controllable temperature control devices.
    • A server processor configured to manage load control events by:
      • generating a plurality of customer profiles;
      • aggregating the profiles into at least one aggregate customer profile;
      • generating a candidate list of service points for load control events;
      • sending a load control event to a selected service point in response to an energy reduction request;
      • determining an energy savings based on a monetary supply equivalent value, which is a measurement and verification of the power reduction; and
      • determining the resulting energy savings is at least equal to the target.
  • The complaint also asserts dependent claims 20-25 (Compl. ¶84).

U.S. Patent No. 10,768,654

  • Patent Identification: U.S. Patent No. 10,768,654, titled "Method and Apparatus for Actively Managing Electric Power Supply for an Electric Power Grid," issued September 8, 2020.

The Invention Explained

  • Problem Addressed: Traditional demand response programs were often voluntary, unpredictable, and difficult to verify, making them insufficient to be considered reliable "reserves" to ensure grid stability during peak demand (Compl. ¶¶20-21). There was a need for systems that could predictably and verifiably curtail energy consumption on a broad scale (Compl. ¶22).
  • The Patented Solution: The patent describes a system where a central server communicates with power-consuming devices to manage the power grid. The server can issue a "power control event message" in response to an inquiry, store power consumption data, and, crucially, generate a "supply equivalence value" for each device based on an actual, measured value of power to be reduced. This value is a "monetary supply equivalence value" that provides a "curtailment value as a supply to the electric power grid" (Compl. ¶66; ’654 Patent, abstract; ’654 Patent, col. 10:11-49).
  • Technical Importance: The invention provides a method to quantify and monetize demand reduction, effectively creating a tradable energy supply commodity ("negawatts") from aggregated consumer load curtailment, in line with regulatory frameworks like FERC Order 745 (Compl. ¶31).

Key Claims at a Glance

  • The complaint asserts independent claim 8 (Compl. ¶88).
  • The essential elements of independent claim 8 include:
    • A server configured for network communication with at least one power consuming device, the server comprising a database.
    • The server is operable to issue a power control event message in response to a power control command comprising a power inquiry.
    • The database is operable to store information on power consumed and power to be reduced.
    • The server is operable to generate a supply equivalence value for each device based on an actual value of power to be reduced, where this value is a monetary supply equivalence value based on measurement and verification.
    • The server is operable to disable a power flow to the device based on the supply equivalence value.
  • The complaint also asserts dependent claims 1-3, 5, 7, and 9-11 (Compl. ¶88).

Multi-Patent Capsules

  • U.S. Patent No. 12,386,375

    • Patent Identification: U.S. Patent No. 12,386,375, "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued August 12, 2025 (Compl. ¶49).
    • Technology Synopsis: The patent claims a system for managing an electric power grid where a server receives a command to reduce power, issues a control message to a client device, and the client device adjusts a setting on a power-consuming device to cause the reduction. A value relating to the power reduction is then generated (Compl. ¶51).
    • Asserted Claims: Independent claim 8; dependent claims 10, 11, 15, 17-20 (Compl. ¶68).
    • Accused Features: The complaint alleges that the entirety of the Accused System, which implements BG&E's demand response programs, infringes the ’375 Patent (Compl. ¶68).

  • U.S. Patent No. 12,124,285

    • Patent Identification: U.S. Patent No. 12,124,285, "System and Methods for Actively Managing Electric Power Over an Electric Power Grid," issued October 22, 2024 (Compl. ¶52).
    • Technology Synopsis: The patent claims a system with an "active load client" and a meter. The client receives a curtailment request from a server and, based on preference information, commands a power-consuming device to turn off. The meter generates an "actual value" for the reduction, which is aggregated by the server and can be utilized as a contingency reserve (Compl. ¶54).
    • Asserted Claims: Independent claim 8; dependent claims 9, 12, 13, 16-19 (Compl. ¶72).
    • Accused Features: The complaint alleges that the Accused System, used for BG&E's DR programs, infringes the ’285 Patent (Compl. ¶72).

  • U.S. Patent No. 11,262,779

    • Patent Identification: U.S. Patent No. 11,262,779, "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued March 1, 2022 (Compl. ¶55).
    • Technology Synopsis: The patent claims a system where a server determines an amount of available power from a device (based on historical load, profile, or real-time measurement) and issues a control message to cause a power reduction. The reduction is then confirmed by measurement and verification transmitted to the server (Compl. ¶57).
    • Asserted Claims: Independent claim 1; dependent claims 3, 6, 9, 11, 12 (Compl. ¶76).
    • Accused Features: The complaint alleges that the Accused System used for BG&E's DR programs infringes the ’779 Patent (Compl. ¶76).

  • U.S. Patent No. 11,703,903

    • Patent Identification: U.S. Patent No. 11,703,903, "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued July 18, 2023 (Compl. ¶58).
    • Technology Synopsis: The patent claims a system where a server issues a control message to a client device, causing a power reduction. A "power supply value (PSV)" is generated, which is described as an "actual value" based on "measured participation" of the device in a load control event. The client device transmits an acknowledgment of participation (Compl. ¶60).
    • Asserted Claims: Independent claim 15; dependent claims 16-22 (Compl. ¶80).
    • Accused Features: The Accused System used for BG&E's DR programs is alleged to infringe the ’903 Patent (Compl. ¶80).

III. The Accused Instrumentality

Product Identification

The accused instrumentality is the system ("Accused System") that Defendant BG&E uses to implement and operate its MPSC-approved "Connected Rewards" and "Peak Rewards" demand response (DR) programs (Compl. ¶¶38, 40).

Functionality and Market Context

The Accused System provides BG&E with network communications and control over thousands of power-consuming devices, such as smart thermostats and load switches, in customer homes and businesses (Compl. ¶40). During high-demand events, the system reduces power consumption by controlling these devices in real time (Compl. ¶40; Compl. ¶44). It then identifies, measures, aggregates, and verifies the amount of reduced power consumption to create an "available operating reserve" that can be used for "peak demand shaving" and compensated under regulatory rules (Compl. ¶40). The complaint alleges the Accused System incorporates the EnergyHub and Resideo Distributed Energy Resources Management System (DERMS) platforms to perform these functions (Compl. ¶41). No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

The complaint references, but does not include, claim chart exhibits detailing its infringement allegations (Compl. ¶68; Compl. ¶72; Compl. ¶76; Compl. ¶80; Compl. ¶84; Compl. ¶88). The following tables synthesize the infringement theory for the lead patents based on the narrative allegations in the complaint.

'134 Patent Infringement Allegations

Claim Element (from Independent Claim 19) Alleged Infringing Functionality Complaint Citation Patent Citation
a memory storing a database containing a plurality of customer profiles for load control events wherein each customer profile includes at least energy consumption information for a plurality of controllable temperature control devices at the plurality of service points; The Accused System's servers obtain and retain customer profiles and preferences, including usage information from devices like smart thermostats (Compl. ¶44). ¶44 col. 2:55-60
a server processor... configured for managing the load control events... by: generating a plurality of customer profiles for the plurality of customers; The Accused System obtains and retains customer profiles and preferences to manage its DR program (Compl. ¶44). ¶44 col. 2:60-62
aggregating the plurality of customer profiles into at least one aggregate customer profile based on at least one predetermined criterion; The Accused System aggregates the amount of power consumption that could be reduced from a portfolio of controlled devices (Compl. ¶40). ¶40 col. 2:62-65
sending a load control event to at least one service point selected from the candidate list of service points in response to an energy reduction request...; BG&E servers use the Accused System to send messages (load control events) to smart thermostats and/or load control switches during a DR event (Compl. ¶44). ¶44 col. 2:37-41
determining an energy savings... wherein the energy savings is determined based on a monetary supply equivalent value for each of the plurality of controllable temperature control devices... The Accused System identifies and measures the amount of power consumption reduced to create an available operating reserve that is compensated under regulatory requirements (Compl. ¶40). ¶40 col. 2:41-45

'654 Patent Infringement Allegations

Claim Element (from Independent Claim 8) Alleged Infringing Functionality Complaint Citation Patent Citation
a server constructed and configured for network communication with at least one power consuming device in the electric power grid, wherein the server comprises a database; The Accused System provides BG&E with network communications and control of thousands of power consuming devices across its grid (Compl. ¶40). BG&E's servers prepare and provide data as required by regulators (Compl. ¶44). ¶40; ¶44 col. 9:1-5
wherein the server is operable to issue a power control event message responsive to a power control command, wherein the power control command comprises a power inquiry command...; During a DR event, BG&E servers send messages to smart thermostats and/or other load control switches to, for example, increase a set point or turn off a unit (Compl. ¶44). ¶44 col. 9:6-12
wherein the database is operable to store information comprising power consumed by the at least one power consuming device and power to be reduced...; The Accused System obtains and retains customer profiles, preferences, and usage information to measure energy saved (Compl. ¶44). ¶44 col. 9:13-17
wherein the server is operable to generate a supply equivalence value for each of the at least one power consuming device based on an actual value of power to be reduced...; The Accused System measures, aggregates, and verifies the reduced power consumption to create an available operating reserve that can be compensated under regulatory requirements (Compl. ¶40). ¶40 col. 9:18-28
wherein the server is operable to disable a power flow to the at least one power consuming device based on the supply equivalence value... The Accused System reduces the power consumption of devices individually and in real time in coordination with high demand events (Compl. ¶40). ¶40 col. 9:29-32
  • Identified Points of Contention:
    • Scope Questions: The claims recite a "server" performing various functions. The complaint alleges BG&E uses third-party DERMS platforms from EnergyHub and Resideo (Compl. ¶41). This raises the question of whether BG&E's actions constitute "use" of the claimed "server" under direct infringement principles, or if liability would depend on a theory of divided infringement where different entities perform different steps of the claims.
    • Technical Questions: A central technical question will be how the Accused System "determines" or "generates" values for energy savings (per the ’134 patent) or a "supply equivalence value" (per the ’654 patent). The patents require these values to be based on "measurement and verification" or "actual value" (Compl. ¶63; Compl. ¶66). The court will need to examine whether the Accused System performs an actual measurement and verification as claimed, or if it relies on estimates, historical averages, or other modeling techniques that may fall outside the claim scope.

V. Key Claim Terms for Construction

  • Term: "customer profile" (from claim 19 of the ’134 Patent)

    • Context and Importance: This term is foundational to the ’134 Patent's claimed invention of managing load control events. The scope of what information must be included in a "customer profile" for it to be infringing will be critical. Practitioners may focus on this term because the value of the patented system lies in its ability to go beyond simple historical usage data.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: Claim 19 itself only requires that the profile "includes at least energy consumption information for a plurality of controllable temperature control devices" (’134 Patent, col. 17:60-63). This language may support a broader interpretation that does not require extensive data points.
      • Evidence for a Narrower Interpretation: The detailed description of the ’134 patent lists numerous data points for a customer profile, including geodetic location, device information, and a list of 21 different "variability factors" like sunlight, humidity, and orientation of the structure (’134 Patent, col. 10:1-21). This may support a narrower construction requiring a more detailed and data-rich profile than just basic consumption information.

  • Term: "supply equivalence value" (from claim 8 of the ’654 Patent)

    • Context and Importance: This term represents the monetization of the demand response event and is the core of the asserted value proposition. Whether the "operating reserve" value calculated by the Accused System meets the definition of a "supply equivalence value" will be a key issue for infringement.
    • Intrinsic Evidence for Interpretation:
      • Evidence for a Broader Interpretation: The claim language defines it as a "monetary supply equivalence value based on measurement and verification" that "provides for a curtailment value as a supply to the electric power grid" (’654 Patent, col. 22:23-28). This could be read broadly on any system that assigns a monetary worth to a measured load reduction for grid supply purposes.
      • Evidence for a Narrower Interpretation: The specification repeatedly links this value to the concepts of Power Supply Value (PSV) and Power Trade Blocks (PTB), which are described as uniform, systematic units for valuing and settling demand response consistent with regulatory frameworks (’654 Patent, col. 17:5-22). This context may support a narrower construction that requires the value to be calculated and formatted in a specific, standardized way suitable for market trading, not just any internal monetary calculation.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges that BG&E operates a system that controls customer-owned devices, including through "Bring Your Own Device or 'BYOD' programs" (Compl. ¶45). These allegations may support a claim for induced infringement, as BG&E's system would necessarily cause customers' devices to operate in an infringing manner. The complaint, however, does not explicitly state a count for indirect infringement.

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

  • A primary issue will be one of divided functionality and control: Given that the Accused System allegedly incorporates third-party DERMS platforms (EnergyHub and Resideo) and interacts with customer-owned devices, a central question for the court will be whether BG&E, as the utility operator, performs all steps of the asserted system claims itself, or whether liability would hinge on more complex theories of divided or indirect infringement.
  • A key evidentiary question will be one of technical implementation: Do the Accused System's methods for quantifying demand reduction—alleged to create a compensable "operating reserve"—meet the specific claim requirements of "measurement and verification" to generate an "actual value" or a "supply equivalence value"? The case may turn on whether the accused functionality is technically equivalent to the specific calculation and verification methods described in the patents, or if it relies on estimations that fall outside the claim scope.
  • A central claim construction question will be one of definitional scope: The dispute will likely involve determining whether the patent term "customer profile", which the specification describes with numerous data points including environmental "variability factors," can be construed to read on the profiles used by BG&E's system, and whether the "supply equivalence value" requires the specific, market-ready format implied by the patent specification.