Near Field Electronics LLC v. Lowe's Companies Inc

I. Executive Summary and Procedural Information

• Parties & Counsel:
  • Plaintiff: Near Field Electronics LLC (Texas)
  • Defendant: Lowe's Companies, Inc. (North Carolina)
  • Plaintiff's Counsel: Shea | Beaty PLLC
• Case Identification: 4:26-cv-00640, E.D. Tex., 06/12/2026
• Venue Allegations: Venue is based on Defendant allegedly having a regular and established place of business within the Eastern District of Texas.
• Core Dispute: Plaintiff alleges that Defendant's point-of-sale systems incorporating Near Field Communication (NFC) components infringe five patents related to integrated circuit architecture, multi-protocol bus interfacing, and power management.
• Technical Context: The patents address foundational technologies for creating flexible, efficient, and low-power integrated circuits capable of handling various communication standards, which are integral to modern electronics.
• Key Procedural History: The complaint notes that four of the five asserted patents have expired. For these patents, Plaintiff asserts liability only for a specific time period preceding their expiration dates, suggesting the dispute for those patents is limited to past damages.

Case Timeline

Date	Event
2000-06-21	'201 Patent Priority Date
2000-07-25	'071 Patent Priority Date
2000-08-28	'727 Patent Priority Date
2002-06-28	'350 Patent Priority Date
2004-02-10	'201 Patent Issue Date
2004-05-25	'071 Patent Issue Date
2005-01-11	'531 Patent Priority Date
2005-10-25	'350 Patent Issue Date
2006-02-07	'727 Patent Issue Date
2008-05-13	'531 Patent Issue Date
2020-06-12	Alleged Liability Period Begins
2021-11-21	'071 Patent Expiration Date
2022-01-31	'201 Patent Expiration Date
2022-04-14	'727 Patent Expiration Date
2023-08-12	'350 Patent Expiration Date
2026-03-19	'531 Patent Expiration Date
2026-06-12	Complaint Filing Date

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

U.S. Patent No. 6,691,201 - "Dual Mode USB-PS/2 Device"

• Patent Identification: U.S. Patent No. 6,691,201, "Dual Mode USB-PS/2 Device," issued February 10, 2004 Compl. ¶8

The Invention Explained

• Problem Addressed: At the time of the invention, supporting multiple signaling protocols (e.g., USB and PS/2) in a single peripheral device required costly external components, consumed significant circuit board space, and involved complex firmware, which could compromise performance Compl. ¶11 '201 Patent, col. 1:28-54
• The Patented Solution: The invention describes a single integrated circuit that can automatically detect and select the correct communication protocol (USB or PS/2) based on the signaling from the connected bus Compl. ¶10 '201 Patent, col. 2:51-56 This functionality is achieved using a single, shared set of input/output (I/O) pins, thereby eliminating the need for external switching components and simplifying the device's design and firmware '201 Patent, abstract '201 Patent, FIG. 1
• Technical Importance: This single-chip solution offered a way to reduce the cost, size, and complexity of computer peripherals, such as mice, that needed to support multiple interface standards to maximize compatibility Compl. ¶12

Key Claims at a Glance

• The complaint asserts at least independent claim 14 Compl. ¶31
• The essential elements of independent claim 14, a method claim, are:
  • detecting a signaling protocol of a bus connected to an integrated circuit that can operate in multiple signaling protocols; and
  • configuring the integrated circuit to communicate using the detected protocol, where the different protocols operate over the bus through a single set of pins.

U.S. Patent No. 6,742,071 - "Real-time I/O Processor Used to Implement Bus Interface Protocols"

• Patent Identification: U.S. Patent No. 6,742,071, "Real-time I/O Processor Used to Implement Bus Interface Protocols," issued May 25, 2004 Compl. ¶13

The Invention Explained

• Problem Addressed: The patent identifies the limitations of conventional bus interface designs, which were either rigid and protocol-specific or, if programmable, were slow and lacked the sophistication to handle complex, high-speed protocols without significant user intervention '071 Patent, col. 1:13-48
• The Patented Solution: The patent discloses a specialized, real-time I/O processor architecture, referred to as a general-purpose interface (GPIF), designed to replace rigid, protocol-specific hardware Compl. ¶16 '071 Patent, abstract This processor uses a limited instruction set to generate complex, interface-specific waveforms and respond to external events in real-time, allowing data path decisions and control outputs to be changed on every clock cycle '071 Patent, col. 6:4-16 Compl. ¶15
• Technical Importance: This invention provided a flexible, high-speed, and programmable hardware solution for interfacing with a wide range of existing and future bus protocols without requiring a new hardware design for each Compl. ¶16

Key Claims at a Glance

• The complaint asserts at least independent claim 15 Compl. ¶36
• The essential elements of independent claim 15, a method claim, are:
  • generating a plurality of first control signals based on a processor's current state;
  • progressing to a next state based on the current state, an internal control signal, and an external input signal;
  • driving an output control signal onto the external bus; and
  • updating the current state to the next state.

U.S. Patent No. 6,959,350 - "Configurable USB Interface With Virtual Register Architecture"

• Patent Identification: U.S. Patent No. 6,959,350, "Configurable USB Interface With Virtual Register Architecture," issued October 25, 2005 Compl. ¶17
• Technology Synopsis: The patent addresses the inflexibility of conventional USB interface controllers that used hard-coded endpoint configurations, requiring new HDL code for each design variant Compl. ¶20 The invention provides an interface controller that is flexibly configured using a configuration package to generate the necessary circuitry (e.g., configuration registers or combinational logic), avoiding the need for separate HDL code for each endpoint design Compl. ¶19 Compl. ¶21
• Asserted Claims: At least claim 10 is asserted Compl. ¶41
• Accused Features: The functionality of NFC Front-end components when used to process contactless payments Compl. ¶41

U.S. Patent No. 6,996,727 - "Power Supply for Universal Serial Bus Interface with Programmable Bus Pullup Resistor"

• Patent Identification: U.S. Patent No. 6,996,727, "Power Supply for Universal Serial Bus Interface with Programmable Bus Pullup Resistor," issued February 7, 2006 Compl. ¶22
• Technology Synopsis: The patent addresses the lack of a low-power mode in conventional 3.3V power supplies for USB interfaces Compl. ¶25 The invention discloses a dual-mode power supply architecture with a standard operating mode and a power-down standby mode that significantly reduces current consumption by using a low-power programmable resistor to maintain the required bus pullup function during idle states Compl. ¶24
• Asserted Claims: At least claim 18 is asserted Compl. ¶46
• Accused Features: The functionality of NFC Front-end components when used to process contactless payments Compl. ¶46

U.S. Patent No. 7,373,531 - "Signal Detection Method, Frequency Detection Method, Power Consumption Control Method...and Electronic Apparatus"

• Patent Identification: U.S. Patent No. 7,373,531, "Signal Detection Method, Frequency Detection Method, Power Consumption Control Method...and Electronic Apparatus," issued May 13, 2008 Compl. ¶26
• Technology Synopsis: The patent is directed to methods and devices for detecting the presence, absence, or frequency of signals by monitoring the through-current in a circuit, such as one with connected transistors Compl. ¶28 This detection enables the control of power consumption, for example, by stopping or reducing a power supply in response to the detected operational state of a monitored target Compl. ¶29
• Asserted Claims: At least claim 2 is asserted Compl. ¶51
• Accused Features: The functionality of NFC Front-end components when used to process contactless payments Compl. ¶51

III. The Accused Instrumentality

Product Identification

• The accused instrumentalities are identified as "NFC Front-end components, including without limitation the NXP PN512 NFC Front-End," and components with "materially similar" functionality Compl. ¶31 These are components within point-of-sale terminals used by the Defendant.

Functionality and Market Context

• The complaint alleges that these NFC components are used by Lowe's in the regular course of its business operations to process contactless credit card payment transactions at the point of sale Compl. ¶31 Compl. ¶33 The core accused functionality is the performance of the patented methods when these components are put into their intended use for handling NFC payments Compl. ¶33

IV. Analysis of Infringement Allegations

The complaint alleges that the use of the Accused Instrumentalities directly infringes the asserted patents by performing the steps of the claimed methods during contactless payment transactions Compl. ¶31 Compl. ¶36 For each asserted patent, the complaint references an external exhibit containing a preliminary infringement analysis (e.g., Exhibit A-1, B-1), but these exhibits were not filed with the complaint and are not available for review Compl. ¶32 Compl. ¶37 The complaint's narrative itself does not map specific product features to claim elements.

No probative visual evidence provided in complaint.

• Identified Points of Contention:
  • '201 Patent: A primary point of contention may be whether the process of an NFC component negotiating a protocol with a contactless card or mobile device constitutes "automatically select[ing] one of said plurality of signaling protocols" as that phrase is used in the patent. The '201 Patent's specification focuses on switching between wired standards like USB and PS/2 '201 Patent, Title, raising the question of whether the claim scope extends to the distinct technology of wireless NFC communication. Further dispute may arise over whether an NFC antenna and associated RF circuitry constitutes a "single set of pins" in the manner contemplated by the patent '201 Patent, FIG. 1
  • '071 Patent: A key technical question will be whether the accused NFC front-end components, which may be fixed-function application-specific integrated circuits (ASICs), can be said to function as a "processor" that performs the claimed method of "progressing to a next state" and "updating said current state" '071 Patent, claim 15 The defense may argue that the accused devices lack the programmable, instruction-based architecture described in the patent's specification '071 Patent, col. 8:14-67, while the plaintiff may argue that any logic circuit that sequences through states meets the claim's requirements.

V. Key Claim Terms for Construction

'201 Patent (Claim 14)

• The Term: "automatically selects"
• Context and Importance: This term is central to the infringement analysis. The case may turn on whether the negotiation between an NFC reader and a payment card falls within the scope of "automatically selects." Practitioners may focus on this term because the patent's examples concern switching between two specific wired protocols (USB and PS/2), whereas the accused technology involves a different family of wireless protocols.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The claim language is not explicitly limited to any particular protocols. The specification notes that the circuit automatically selects "without user input" in response to the signaling of a connected bus, which could arguably describe any automated protocol negotiation '201 Patent, col. 2:51-56
  • Evidence for a Narrower Interpretation: The patent is titled "Dual Mode USB-PS/2 Device" and the background and detailed description are exclusively focused on the technical challenges and solutions related to supporting those two protocols '201 Patent, Title '201 Patent, col. 1:15-27 '201 Patent, FIG. 1 This context may support an interpretation limited to similar wired peripheral interconnects.

'071 Patent (Claim 15)

• The Term: "processor"
• Context and Importance: The claim requires the method steps to be responsive to the "current state of a processor." The identity and nature of this "processor" will be a critical issue. Practitioners may focus on this term because the accused NFC front-end is likely a highly specialized ASIC, and the defense may argue it is not a "processor" in the sense described by the patent.
• Intrinsic Evidence for Interpretation:
  • Evidence for a Broader Interpretation: The claim itself uses the general term "processor." Plaintiff may argue that any logic circuit capable of having a "current state" and executing sequential operations, as the accused device must, qualifies as a processor for the purposes of the claim.
  • Evidence for a Narrower Interpretation: The specification describes a specific "specialized input-output processor" with a two-instruction set ("Branch on Signal" and "Wait N Clocks") and interaction with memory '071 Patent, col. 5:5-8 '071 Patent, col. 8:14-22 This detailed description of a programmable architecture could be used to argue for a narrower definition that excludes fixed-function hardware.

VI. Other Allegations

The complaint does not contain allegations of indirect infringement or willful infringement. It requests a declaration of an exceptional case for the purpose of attorneys' fees under 35 U.S.C. § 285 Compl., Prayer C

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

1. A core issue will be one of technological scope: can the claims of patents rooted in the technical context of wired peripheral interfaces of the early 2000s (e.g., USB/PS/2 switching, programmable I/O controllers) be construed to cover the operation of modern, wireless NFC front-end components? The construction of terms like "automatically selects," "single set of pins," and "processor" will be decisive.
2. A key evidentiary question will be one of operational mapping: as the complaint defers all technical infringement theories to unprovided exhibits, a central challenge for the plaintiff will be to demonstrate through discovery how the specific, low-level operations of the accused NFC chips perform each step of the asserted method claims. The viability of the case hinges on whether a plausible mapping from accused functionality to claim language can be established.
3. A determinative factor for four of the five patents is the historical nature of the dispute. With the '201, '071, '350, and '727 patents having already expired, the conflict is confined to past damages. This focuses the litigation on monetary remedies rather than forward-looking injunctive relief, which may influence the strategic calculus for both parties.