DCT

8:26-cv-02076

Causam Enterprises Inc v. Southern Maryland Electric Cooperative Inc

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 8:26-cv-02076, D. Md., 05/26/2026
  • Venue Allegations: Venue is alleged to be proper because Defendant resides in the district, maintains a regular and established place of business in the district, and has committed the alleged acts of infringement in the district.
  • Core Dispute: Plaintiff alleges that Defendant’s demand response programs, which manage electricity consumption for residential and small business customers, infringe six patents related to actively managing electric power grids.
  • Technical Context: The technology involves systems for managing electrical grid stability by remotely controlling and aggregating power consumption from a large portfolio of distributed, power-consuming devices to create verifiable "reserves" for peak demand periods.
  • Key Procedural History: The complaint contextualizes the dispute within the framework of regulations from the Federal Energy Regulatory Commission (FERC), such as FERC Order No. 745, which established a compensation framework for demand response resources.

Case Timeline

Date Event
2003-01-01 Approximate time inventor Mr. Joseph Forbes foresaw need for the inventions.
2007-08-28 Earliest Priority Date for '375, '285, '779, '903, '134 Patents.
2011-03-15 FERC issued Order No. 745, "Demand Response Compensation in Organized Wholesale Energy Markets".
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.
2025-12-01 Approximate time EnergyHub acquired the Resideo Connected Savings platform.
2026-05-26 Complaint filed.

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

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

  • Patent Identification: U.S. Patent No. 10,116,134, "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 (Compl. ¶62).
  • The Invention Explained:
    • Problem Addressed: The patent's background section notes that power utilities have historically been limited in their ability to collect detailed data regarding energy consumption patterns within customer premises, which has hindered the creation of extensive customer profiles for load management (Compl. ¶26; '134 Patent, col. 1:57-65).
    • The Patented Solution: The invention provides a system where a central server creates and uses "customer profiles" based on energy consumption patterns of controllable devices (e.g., thermostats) at various locations ("service points") ('134 Patent, abstract). These profiles are aggregated and used to generate a "candidate list" of service points for load control events in response to an energy reduction request from the utility ('134 Patent, col. 2:33-41). An intelligent algorithm then selects service points for the control event, with the goal of meeting an energy savings target ('134 Patent, Fig. 6).
    • Technical Importance: This approach allows a utility to transform a large, diverse set of consumer devices into a predictable and manageable resource for grid stabilization, targeting the best candidates for energy reduction (Compl. ¶¶23-25).
  • Key Claims at a Glance:
    • The complaint asserts independent claim 19 (Compl. ¶85).
    • The essential elements of independent claim 19 are:
      • A system comprising a memory storing a database of customer profiles, with each profile including energy consumption information for controllable temperature control devices at service points.
      • A server processor configured to manage load control events by:
        • generating a plurality of customer profiles;
        • aggregating the profiles into at least one aggregate profile based on a criterion;
        • generating a candidate list of service points for load control events based on a criterion;
        • sending a load control event to a selected service point from the candidate list in response to an energy reduction request;
        • determining an energy savings based on a "monetary supply equivalent value," which is a "measurement and a verification of the reduction in consumed power"; and
        • determining if the resulting energy savings equals the target.
    • The complaint also asserts dependent claims 20-25 (Compl. ¶85).

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

  • Patent Identification: U.S. Patent No. 10,768,654, "Method and Apparatus for Actively Managing Electric Power Supply for an Electric Power Grid," issued September 8, 2020 (Compl. ¶65).
  • The Invention Explained:
    • Problem Addressed: The patent background highlights the inefficiency of traditional "peak shifting" demand response, which lacked real-time measurement and verification, making it unsuitable for creating reliable operating reserves for grid stability ('654 Patent, col. 3:10-4:65).
    • The Patented Solution: The invention describes a server-based system that communicates with power-consuming devices to manage demand. In response to a power control command, the server determines the amount of power available for reduction and can issue a power control event message ('654 Patent, abstract). Crucially, the server generates a "supply equivalence value" for each device based on an actual, measured value of the power reduction, which in turn provides a "curtailment value as a supply to the electric power grid" ('654 Patent, claim 8). This system architecture is illustrated in Figure 1A ('654 Patent, Fig. 1A).
    • Technical Importance: This technology allows for the creation of a monetizable, verifiable energy supply equivalent from aggregated load curtailment, which can be recognized by grid operators as a formal operating reserve (Compl. ¶26; '654 Patent, col. 17:1-18:4).
  • Key Claims at a Glance:
    • The complaint asserts independent claim 8 (as part of asserting claims 1, 2, 3, 5, 7, 8, 9, 10, and 11) (Compl. ¶89).
    • The essential elements of independent claim 8 are:
      • A system for managing power on an electric power grid, comprising a server constructed for network communication with at least one power consuming device, wherein the server comprises a database.
      • The server is operable to issue a power control event message responsive to a power control command requesting the server to determine an amount of power available for reduction.
      • 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.
      • Each supply equivalence value is a "monetary supply equivalence value based on measurement and verification" and provides for a "curtailment value as a supply to the electric power grid."
      • The server is operable to disable a power flow to the device based on the supply equivalence value.
    • The complaint also asserts dependent claims and another independent claim (Compl. ¶89).

Multi-Patent Capsule: 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. ¶50).
  • Technology Synopsis: This patent claims a system where a server receives a power control command, issues a corresponding message to a client device, and causes an adjustment to a power-consuming device. The system then generates a value related to the power reduction based on duty cycles or set points and aggregates this into a total energy savings for a load control event (Compl. ¶52).
  • Asserted Claims: Independent claim 8 and dependent claims 10, 11, 15, 17, 18, 19, and 20 (Compl. ¶69).
  • Accused Features: The complaint alleges that the Accused System as a whole, which provides network communications and control of power-consuming devices, infringes the '375 Patent (Compl. ¶¶41; Compl. ¶69).

Multi-Patent Capsule: 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. ¶53).
  • Technology Synopsis: The patent describes a system where an active load client receives a power control message from a server, including a curtailment request. Based on preference information, the client sends a power reduction command to a device, and a meter generates an actual value for the reduction that is based on regulatory-approved methods and communicated back to the server for aggregation and use as a contingency reserve (Compl. ¶55).
  • Asserted Claims: Independent claim 8 and dependent claims 9, 12, 13, 16, 17, 18, and 19 (Compl. ¶73).
  • Accused Features: The complaint alleges that the Accused System as a whole, which provides network communications and control of power-consuming devices, infringes the '285 Patent (Compl. ¶¶41; Compl. ¶73).

Multi-Patent Capsule: 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. ¶56).
  • Technology Synopsis: This patent covers a system where a server receives a power control command and determines an amount of available power for a device based on historical, estimated, or real-time data. The server then issues a control message that causes a power reduction, which is subsequently confirmed by measurement and verification transmitted to the server (Compl. ¶58).
  • Asserted Claims: Independent claim 1 and dependent claims 3, 6, 9, 11, and 12 (Compl. ¶77).
  • Accused Features: The complaint alleges that the Accused System as a whole, which provides network communications and control of power-consuming devices, infringes the '779 Patent (Compl. ¶¶41; Compl. ¶77).

Multi-Patent Capsule: 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. ¶59).
  • Technology Synopsis: The patent claims a system where a server issues a power control message to a client device, causing a reduction in power flow. Either the server or the client device generates a "power supply value (PSV)" that is an actual value based on measured participation in a load control event, and the client transmits an acknowledgement of participation in near real-time (Compl. ¶61).
  • Asserted Claims: Independent claim 15 and dependent claims 16-22 (Compl. ¶81).
  • Accused Features: The complaint alleges that the Accused System as a whole, which provides network communications and control of power-consuming devices, infringes the '903 Patent (Compl. ¶¶41; Compl. ¶81).

III. The Accused Instrumentality

  • Product Identification: The Accused System comprises Defendant SMECO’s "SmartTemp" and "FlexHome Pilot" demand response (DR) programs (Compl. ¶¶39; Compl. ¶41).
  • Functionality and Market Context: The Accused System is alleged to provide SMECO with network communication and control over thousands of consumer devices, such as smart thermostats and load switches, across its grid (Compl. ¶41). Functionally, it is operated using a Distributed Energy Resources Management System (DERMS) platform provided by EnergyHub, which the complaint states acquired the Resideo Connected Savings platform in December 2025 and integrated its functionality (Compl. ¶¶42-44). During a DR event, SMECO's servers use this platform to send messages to devices, such as instructing a smart thermostat to increase its set point or a load control switch to turn off an HVAC compressor (Compl. ¶45). The system is also alleged to obtain usage information and customer data from these devices and to prepare data on energy savings for settlement with regulatory authorities (Compl. ¶45). The programs are approved by the Maryland Public Service Commission (MPSC) under the EmPOWER Maryland initiative and are compliant with Federal Energy Regulatory Commission (FERC) rules (Compl. ¶¶37; Compl. ¶40).

IV. Analysis of Infringement Allegations

The complaint references, but does not include, claim chart exhibits detailing its infringement allegations (Compl. ¶¶69; Compl. ¶73; Compl. ¶77; Compl. ¶81; Compl. ¶85; Compl. ¶89). The following summarizes the narrative infringement theory for the lead patents.

'134 Patent Infringement Allegations

The complaint alleges that SMECO's use of the Accused System infringes at least claim 19 of the '134 Patent (Compl. ¶85). The infringement theory suggests that the EnergyHub platform, acting as the claimed "server processor," generates "customer profiles" using data collected from customer devices like smart thermostats (Compl. ¶45). These profiles are allegedly aggregated to generate "candidate lists" for load control events. In response to a need for demand reduction (an "energy reduction request"), the system sends "load control events" (e.g., set point changes) to selected devices (Compl. ¶45). The complaint alleges the system then determines the resulting "energy savings" to comply with regulatory requirements, which corresponds to the claim's requirement of determining savings based on a "monetary supply equivalent value" derived from "measurement and a verification" (Compl. ¶45; Compl. ¶41).

'654 Patent Infringement Allegations

The complaint alleges infringement of at least claim 8 of the '654 Patent by the Accused System (Compl. ¶89). The infringement theory posits that the EnergyHub platform functions as the claimed "server" that communicates with customer "power consuming devices" (Compl. ¶45). In response to a "power control command" (e.g., a DR event trigger), the server allegedly issues a "power control event message" to devices, such as a command to a thermostat to raise a setpoint, thereby disabling power flow to an HVAC unit (Compl. ¶45). The system is alleged to generate a "supply equivalence value" by measuring the energy saved, which is then used as a "curtailment value" for regulatory and payment purposes, mirroring the claim's requirements (Compl. ¶¶41; Compl. ¶45).

No probative visual evidence provided in complaint.

Identified Points of Contention:

  • Scope Questions: A primary question for the '134 Patent may be whether the data aggregation and targeting performed by the third-party EnergyHub platform meets the specific, multi-step claim limitations of "generating a plurality of customer profiles," "aggregating" them, and "generating a candidate list." For the '654 Patent, a dispute may arise over whether adjusting a thermostat setpoint, as alleged in the complaint (Compl. ¶45), constitutes "disabl[ing] a power flow" as required by the claim language.
  • Technical Questions: A key technical question for both patents will be how the Accused System actually calculates and verifies energy savings. The claims require a value based on "measurement and verification" ('134 Patent, claim 19; '654 Patent, claim 8). The court may need to determine if the Accused System's methodology, which the complaint alleges involves preparing data for regulatory authorities (Compl. ¶45), performs the specific type of measurement and calculation required to be, for example, a "monetary supply equivalence value" ('654 Patent, claim 8).

V. Key Claim Terms for Construction

'134 Patent: "customer profile"

  • The Term: "customer profile"
  • Context and Importance: This term is foundational to claim 19, as the entire system is built around generating, aggregating, and using these profiles. The viability of the infringement claim will depend on whether the data collected and used by the Defendant's system (Compl. ¶45) qualifies as a "customer profile" under the patent's definition.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification describes the concept in broad terms, relating it to "customer relationship management (CRM)" and including not just what a customer owns but also "how they are used, when they are used, etc." ('134 Patent, col. 1:21-33). This suggests the term could encompass a wide range of behavioral and device data.
    • Evidence for a Narrower Interpretation: Claim 19 itself limits the profile to including "at least energy consumption information for a plurality of controllable temperature control devices." The abstract and Summary of the Invention further tie profiles to "energy consumption patterns" ('134 Patent, abstract; '134 Patent, col. 2:9-22), which may suggest the term requires more than just static device information and implies a specific type of analyzed behavioral data.

'654 Patent: "supply equivalence value"

  • The Term: "supply equivalence value"
  • Context and Importance: This term is the technical and economic heart of claim 8, defining the output that allows curtailed power to be treated as a "supply to the electric power grid." Practitioners may focus on this term because the infringement case will likely turn on whether the value generated by the Accused System (Compl. ¶45) meets the specific two-part definition in the claim: being 1) a "monetary" value and 2) "based on measurement and verification."
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: A related term, "Power Supply Value (PSV)," is described in the specification as being providable in various units, including "electrical power flow" or "monetary equivalent" ('654 Patent, col. 10:35-37), suggesting some flexibility in how the value can be expressed.
    • Evidence for a Narrower Interpretation: Claim 8 explicitly qualifies the term as a "monetary supply equivalence value" that is "based on measurement and verification" and "provides for a curtailment value as a supply." This language suggests a specific, quantified financial value that has been rigorously verified, not just a raw technical measurement of energy reduction. The patent emphasizes that this transforms curtailment into something that can be accepted by governing entities, reinforcing its specific, verifiable nature ('654 Patent, col. 10:25-34).

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

  • A core issue will be one of definitional scope and functionality: can the data processing and control actions performed by Defendant's third-party "EnergyHub" platform be shown to meet the specific, multi-step functional requirements of the asserted claims? This includes whether the data constitutes a "customer profile" as claimed in the '134 Patent and whether the calculated savings represent a "supply equivalence value" based on "measurement and verification" as required by the '654 Patent.
  • A central evidentiary question will be one of system operation: does the Accused System, as a whole, practice every element of the asserted system claims? Because infringement is alleged against a system composed of components from the Defendant, third-party platform providers, and end-users (Compl. ¶¶41-46), the case may turn on whether the Defendant "uses" the entire claimed system and whether the interactions between these disparate components align with the specific communication and processing steps recited in the patent claims.