DCT

8:26-cv-02077

Causam Enterprises Inc v. Delmarva Power & Light Co

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I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 8:26-cv-02077, D. Md., 05/26/2026
  • Venue Allegations: Venue is alleged to be proper as Defendant maintains a regular and established place of business in the District of Maryland and has committed alleged acts of infringement in the district.
  • Core Dispute: Plaintiff alleges that Defendant's demand response programs, which are used to manage electricity consumption, infringe six patents related to the active management of electric power grids.
  • Technical Context: The technology concerns systems and methods for managing electrical grid stability by controlling power consumption across a large number of residential and commercial devices, a practice known as demand response.
  • Key Procedural History: The complaint situates the dispute within the regulatory framework established by FERC Order No. 745, which created a compensation structure for demand response resources, and standards developed by the North American Electric Reliability Corporation (NERC).

Case Timeline

Date Event
2007-08-28 Earliest Priority Date for Asserted Patent Portfolio
2011-03-15 FERC issues Order No. 745
2018-10-30 U.S. Patent No. 10,116,134 Issues
2020-09-08 U.S. Patent No. 10,768,654 Issues
2022-03-01 U.S. Patent No. 11,262,779 Issues
2023-07-18 U.S. Patent No. 11,703,903 Issues
2024-10-22 U.S. Patent No. 12,124,285 Issues
2025-08-12 U.S. Patent No. 12,386,375 Issues
2025-12-01 (approx.) EnergyHub acquires the Resideo Platform
2026-05-26 Complaint Filing Date

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

U.S. Patent No. 12,386,375 - "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued August 12, 2025

The Invention Explained

  • Problem Addressed: The patent addresses the problem of maintaining electric power grid stability during periods of peak consumption Compl. ¶12 Traditional demand response programs were voluntary and unreliable, making them insufficient to be considered dependable "reserves" to satisfy regulatory requirements Compl. ¶¶19-20
  • The Patented Solution: The invention is a system that gives a utility active control over a large number of power-consuming devices (e.g., HVAC units) in homes and businesses Compl. ¶¶22-23 A central server receives a command to reduce power, issues messages to client devices at customer sites, and causes those devices to adjust their settings to lower consumption Compl. ¶52 The system then calculates the resulting energy savings based on device-specific data like duty cycles or set points, rather than historical estimates, allowing for verifiable and aggregable energy reserves (Compl. ¶¶25; Compl. ¶52).
  • Technical Importance: This approach aimed to transform demand response from an unpredictable, voluntary activity into a predictable, measurable, and verifiable resource that could be treated as a quantifiable "reserve" for grid management purposes Compl. ¶¶21-23

Key Claims at a Glance

  • The complaint asserts independent claim 8 Compl. ¶69
  • Essential elements of independent claim 8 include:
    • A system with at least one server and at least one client device.
    • The server receives a power control command requiring a power reduction.
    • The server issues a power control message to the client device.
    • The message causes the client device to adjust a setting on a power-consuming device, resulting in a power reduction.
    • The server or client device generates a value for the power reduction based on duty cycles and/or set points of the device.
    • The server generates a total energy savings for a load control event based on the individual reduction values.
  • The complaint asserts dependent claims 10, 11, 15, 17, 18, 19, and 20 Compl. ¶69

U.S. Patent No. 12,124,285 - "System and Methods for Actively Managing Electric Power Over an Electric Power Grid," issued October 22, 2024

The Invention Explained

  • Problem Addressed: The patent addresses the need for a system that can create, measure, and verify demand-side "reserves" in a way that is acceptable to regulatory bodies Compl. ¶23 Compl. ¶25 This includes accurately measuring actual power reduction in near real-time, aggregating it, and making it available as a tradable unit in energy markets Compl. ¶25 Compl. ¶55
  • The Patented Solution: The invention describes a system where an "active load client" communicates with a server and controls a power-consuming device Compl. ¶55 The system uses a meter to measure the actual reduction in power consumption, generates a value for this reduction based on regulatory-approved methods (such as those in FERC Order 745), and communicates this value back to the server via an advanced metering infrastructure Compl. ¶55 The server then aggregates these values into a "Power Trade Block (PTB) unit" that can be sold on an energy marketplace and used as a contingency reserve Compl. ¶55
  • Technical Importance: This technology sought to create a direct link between measured, real-time demand reduction and the formal energy markets, allowing "negawatts" (saved power) to be treated and traded as a verifiable commodity like generated megawatts Compl. ¶30 Compl. ¶55

Key Claims at a Glance

  • The complaint asserts independent claim 8 Compl. ¶73
  • Essential elements of independent claim 8 include:
    • A system with an active load client, a power-consuming device, and a meter.
    • The active load client receives a power control message from a server and, based on preference information, sends a command to turn off the power-consuming device.
    • The meter generates an "actual value" for the power reduction based on government-approved calculation methods (e.g., from FERC Order 745).
    • The meter communicates this actual value to the server via an advanced metering infrastructure.
    • The server aggregates the actual values into a "Power Trade Block (PTB) unit" for sale on an energy settlement marketplace.
    • The actual value is used as a contingency reserve.
  • The complaint asserts dependent claims 9, 12, 13, 16, 17, 18, and 19 Compl. ¶73

U.S. Patent No. 11,262,779 - "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued March 1, 2022

  • 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 describes a system where a server determines the amount of power available for reduction from a device based on historical load, estimations, or real-time measurements Compl. ¶58 The server then sends a control message that causes a power reduction, which is subsequently confirmed by measurement and verification transmitted back to the server Compl. ¶58
  • Asserted Claims: Independent claim 1 is asserted Compl. ¶77
  • Accused Features: The complaint alleges Delmarva's DR system, which determines available load reduction and verifies the reduction, infringes the '779 Patent (Compl. ¶¶41; Compl. ¶45; Compl. ¶77).

U.S. Patent No. 11,703,903 - "Method and Apparatus for Actively Managing Electric Power Over an Electric Power Grid," issued July 18, 2023

  • 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: This patent discloses a system where a server sends a power control message to a client device, which causes a power reduction Compl. ¶61 The system generates a "power supply value (PSV)" based on the measured reduction, and the client device transmits an acknowledgement of participation in the load control event Compl. ¶61
  • Asserted Claims: Independent claim 15 is asserted Compl. ¶81
  • Accused Features: The complaint alleges Delmarva's DR system, which sends control messages to customer devices and measures the resulting power reduction, infringes the '903 Patent (Compl. ¶¶41; Compl. ¶45; Compl. ¶81).

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

  • 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
  • Technology Synopsis: This patent describes a system for using customer energy profiles to manage load control events. A server processor generates and aggregates customer profiles, creates a candidate list of service points for a load control event, and sends an event to a selected point to meet a target energy savings, with the savings determined based on a "monetary supply equivalent value" Compl. ¶64
  • Asserted Claims: Independent claim 19 is asserted Compl. ¶85
  • Accused Features: The complaint alleges Delmarva's DR system uses customer profiles and data to manage load control events, infringing the '134 Patent (Compl. ¶¶41; Compl. ¶45; Compl. ¶85).

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

  • 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
  • Technology Synopsis: This patent covers a system with a server that issues a power control event message in response to a power inquiry command Compl. ¶67 The server generates a "supply equivalence value" for each device based on an actual value of power to be reduced, which provides a curtailment value as a supply to the grid, and can disable power flow based on this value Compl. ¶67
  • Asserted Claims: Independent claim 8 is asserted Compl. ¶89
  • Accused Features: The complaint alleges Delmarva's DR system, which manages power reduction as a supply resource, infringes the '654 Patent (Compl. ¶¶41; Compl. ¶45; Compl. ¶89).

III. The Accused Instrumentality

  • Product Identification: The accused instrumentalities are Defendant's demand response (DR) programs, branded as "Energy Wise Rewards" and "Flex Rewards", which are implemented using an "Accused System" Compl. ¶¶39-41 This system incorporates Distributed Energy Resources Management System (DERMS) platforms, specifically the Resideo Connected Savings platform and/or the EnergyHub platform Compl. ¶¶42-43
  • Functionality and Market Context:
    • The Accused System provides Delmarva with network communications and control over thousands of consumer-owned power-consuming devices, such as smart thermostats and load switches, across its grid Compl. ¶41
    • During a DR event, Delmarva's servers use these platforms to send messages to the devices, instructing them to reduce power consumption (e.g., by increasing a thermostat's set point) Compl. ¶45
    • The system is also used to obtain information from the devices, such as usage data and customer profiles, and to obtain load data from meters to measure the energy saved during the DR event Compl. ¶45
    • This functionality is used to create a verifiable operating reserve that can be called upon for "peak demand shaving" and compensated under regulatory requirements, including participation in PJM wholesale electricity markets (Compl. ¶¶41; Compl. ¶47). The programs are approved by the Maryland Public Service Commission (MPSC) and the Delaware Public Service Commission (DPSC) Compl. ¶¶38-41
  • No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

The complaint references claim chart exhibits that are not provided Compl. ¶69 Compl. ¶73 The following analysis is based on the claim language and infringement allegations presented in the body of the complaint.

'375 Patent Infringement Allegations

Claim Element (from Independent Claim 8) Alleged Infringing Functionality Complaint Citation Patent Citation
A system for managing an electric power grid, comprising: at least one server, including a processor and a memory, wherein the at least one server receives a power control command requiring a reduction of an amount of power consumed by at least one power consuming device; Delmarva uses servers as part of its Accused System, including the Resideo and/or EnergyHub platforms, to manage its DR program and send messages to reduce power consumption during a DR event. ¶45 '654 Patent, col. 9:10-24
at least one client device in network communication with the at least one server; The Accused System includes smart thermostats and/or load control switches at customer locations that are in network communication with Delmarva's servers. ¶41; ¶45 '654 Patent, col. 10:30-36
wherein the at least one server issues a power control message to the at least one client device in response to the power control command; Delmarva's servers send messages to the smart thermostats and/or load control switch devices during a DR event to instruct them to reduce power consumption. ¶45 '654 Patent, col. 10:46-51
wherein the power control message causes the at least one client device to adjust a setting of the at least one power consuming device, and wherein the adjustment of the setting...results in a reduction of power consumed...; The messages instruct smart thermostats to increase the set point or instruct a load control switch to turn off an HVAC compressor unit, thereby reducing power consumption. ¶45 '654 Patent, col. 10:52-60
wherein the at least one server or the at least one client device generates a value relating to a reduction in consumed power based on duty cycles and/or set points for the at least one power consuming device participating in at least one load control event; The Accused System obtains load data from meters to measure energy saved and prepares this data for regulatory authorities, which relates the reduction to the operational parameters of the controlled devices. ¶45 '654 Patent, col. 10:1-8
wherein the duty cycles and/or the set points of the at least one power consuming device is determined at the at least one client device or at the at least one server; and The set points of smart thermostats are adjusted based on commands from Delmarva's servers. ¶45 '654 Patent, col. 10:52-56
wherein the at least one server generates a total energy savings for one of the at least one load control event based on the value relating to the reduction in consumed power for each of the at least one power consuming device. Delmarva's servers prepare data on the energy saved at each device during a DR event for reporting to regulatory authorities. ¶45 '134 Patent, col. 12:45-50
  • Identified Points of Contention:
    • Scope Question: A potential issue is whether the accused system's aggregation of measured savings Compl. ¶45 meets the claim limitation of generating a "total energy savings...based on the value relating to the reduction in consumed power for each of the at least one power consuming device." This raises the question of the granularity and basis of the calculation performed by the accused system.
    • Technical Question: The complaint alleges the system generates a value "based on duty cycles and/or set points" Compl. ¶52 A point of contention may be whether the accused system's method for quantifying energy savings relies directly on these specific parameters, as required by the claim, or on a different methodology, such as direct metering without reference to the device's internal settings.

'285 Patent Infringement Allegations

Claim Element (from Independent Claim 8) Alleged Infringing Functionality Complaint Citation Patent Citation
A system for managing power on an electric power grid, comprising: at least one active load client constructed and configured for communication with a server and at least one power consuming device; The Accused System uses smart thermostats and load switches (client devices) that communicate with Delmarva's servers and control power-consuming devices like HVAC units. ¶41; ¶45 '654 Patent, col. 9:10-24
at least one meter configured to measure power consumption by the at least one power consuming device; The Accused System obtains load data from meters to measure the energy saved at each location and each load-consuming device during a DR event. ¶45 '654 Patent, col. 10:1-8
wherein the at least one active load client receives a power control message from the server, wherein the power control message includes a curtailment request for the at least one power consuming device; Delmarva's servers send messages to smart thermostats and/or other load control switch devices in their service area during a DR event, instructing a reduction in power consumption. ¶45 '654 Patent, col. 10:46-51
wherein based on the preference information, the at least one active load client transmits at least one power reduction command to the at least one power consuming device; The Accused System uses customer profiles and preferences to inform load control, and the client devices (thermostats/switches) execute the power reduction. ¶45 '134 Patent, col. 12:25-31
wherein the at least one meter generates an actual value corresponding to a reduction in power consumed by the at least one power consuming device; The Accused System uses load data from meters to measure the energy saved at each location during the DR event, which corresponds to the reduction in consumed power. ¶45 '654 Patent, col. 21:26-34
wherein the actual value is generated based on government approved methods of calculation established under Federal Energy Regulatory Commission (FERC) Order 745 or an independent system operator (ISO)...; The complaint alleges Delmarva's DR programs are FERC-compliant and PSC-approved, and that the Accused System complies with such regulatory conditions and requirements. ¶40; ¶47 '654 Patent, abstract
wherein the server aggregates the actual value for each of the at least one power consuming device into at least one Power Trade Block (PTB) unit able to be sold on an energy settlement marketplace;... Delmarva participates in PJM's wholesale electricity markets, and its servers prepare data for regulatory authorities to settle and collect payment for DR reserves. ¶45; ¶47 '134 Patent, col. 16:11-34
wherein the actual value is utilized as contingency reserves for a power utility and/or grid operator; The Accused System is used to create an available operating reserve that can be called upon for peak demand shaving, which functions as a contingency reserve. ¶41 '654 Patent, col. 4:20-25
  • Identified Points of Contention:
    • Scope Question: A central issue will be whether the data aggregation and reporting performed by the Accused System for regulatory compliance Compl. ¶45 constitutes a "Power Trade Block (PTB) unit able to be sold on an energy settlement marketplace" as defined by the patent.
    • Evidentiary Question: The claim requires the "actual value" to be generated based on methods from "FERC Order 745 or an [ISO]." This raises a factual and technical question of whether the specific calculation methods used by the Resideo and/or EnergyHub platforms are the same as, or are based on, the methods established in those regulatory documents.

V. Key Claim Terms for Construction

Analysis based on the '375 and '285 Patents.

Term 1: "active load client" (from '285 Patent, claim 8)

  • Context and Importance: This term defines the hardware at the customer's premises. The scope of this term is critical because infringement requires the presence of this specific component. Practitioners may focus on this term to dispute whether the smart thermostats and load control switches in the Accused System, which may be off-the-shelf consumer devices, meet the detailed functional requirements of an "active load client" as envisioned in the patent.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification describes the active load client as a "computer or processor-based system located on-site at a customer's residence or business" that manages power load levels '134 Patent, col. 15:33-38 This could support an argument that any modern smart device with a processor performing these functions qualifies.
    • Evidence for a Narrower Interpretation: The specification provides detailed diagrams showing the "Active Load Client" with specific internal components like a "smart breaker module controller," a "device control manager," and an "IP-based communication converter" '134 Patent, Fig. 3 '134 Patent, col. 15:30-40 This may support a narrower construction requiring a device with this specific internal architecture, rather than any generic smart thermostat.

Term 2: "Power Trade Block (PTB) unit" (from '285 Patent, claim 8)

  • Context and Importance: This term is central to the patent's claimed monetization of demand response. The case may turn on whether the aggregated energy savings data that Delmarva provides to regulators Compl. ¶45 constitutes a "PTB unit." Practitioners may focus on this term to argue there is a mismatch between the Accused System's regulatory reporting data and the specific, tradable "unit" described in the patent.
  • Intrinsic Evidence for Interpretation:
    • Evidence for a Broader Interpretation: The specification describes the PTB as being derived from aggregating the "Power Supply Value (PSV)," which is an actual, verified value of power reduction '654 Patent, col. 9:15-25 '654 Patent, col. 10:1-8 This could support an argument that any verified aggregation of saved energy for market purposes is a PTB.
    • Evidence for a Narrower Interpretation: The patent states that the PTB is a "uniform, systematic unit for addressing the power curtailment or power supply" '134 Patent, col. 15:53-56 This language, emphasizing a specific, systematic "unit," may support a narrower construction requiring a formally structured data block designed for trading, not just any aggregated data set used for regulatory reporting.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges direct infringement under 35 U.S.C. § 271(a) Compl. ¶69 Compl. ¶73 It does not contain explicit counts or specific factual allegations for indirect infringement (inducement or contributory infringement).
  • Willful Infringement: The complaint does not contain an explicit count for willful infringement or make factual allegations concerning Defendant's pre- or post-suit knowledge of the Asserted Patents.

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

  • A core issue will be one of definitional scope and technical operation: do the third-party DERMS platforms (Resideo and EnergyHub) used by Delmarva create a "Power Trade Block (PTB) unit" as claimed in the '285 Patent? This will likely require the court to analyze whether the data aggregated and reported by the Accused System is merely for regulatory compliance or constitutes a formally structured, tradable energy unit as envisioned by the patent.

  • A second key question will be one of evidentiary mapping: can Plaintiff demonstrate that the specific methods of calculation used in the Accused System are "based on government approved methods of calculation established under Federal Energy Regulatory Commission (FERC) Order 745," as required by claim 8 of the '285 Patent? This will likely be a technical, fact-intensive inquiry into the software and algorithms of the accused platforms.

  • A third central question will be one of component equivalence: do the various smart thermostats and load control switches used in Delmarva's programs, which may include "Bring Your Own Device" products Compl. ¶46, meet the structural and functional requirements of the "active load client" as described in the patent specifications? This will focus on whether generic smart home devices embody the specific architecture claimed in the patents.