DCT

5:26-cv-00081

Fall Line Patents LLC v. Great Clips Inc

Key Events
Amended Complaint
complaint Intelligence

I. Executive Summary and Procedural Information

  • Parties & Counsel:
  • Case Identification: 5:26-cv-00081, E.D. Tex., 09/29/2026
  • Venue Allegations: Plaintiff alleges venue is proper in the Eastern District of Texas because Defendant transacts business in the district and maintains regular and established places of business there, including specific salon locations cited in the complaint.
  • Core Dispute: Plaintiff alleges that Defendant’s Great Clips Mobile App infringes a patent related to systems and methods for data management on remote computing devices.
  • Technical Context: The technology relates to creating and executing location-aware, cross-platform "questionnaires" on remote devices, particularly in environments with intermittent network connectivity.
  • Key Procedural History: The asserted patent, U.S. Patent No. 9,454,748, has undergone two Inter Partes Review (IPR) proceedings. In one proceeding (IPR2019-00610), the Patent Trial and Appeal Board (PTAB) found the sole asserted claim in this litigation, Claim 7, to be patentable, while canceling several other claims. In a separate proceeding (IPR2018-00043), additional claims not asserted here were also canceled. The complaint also references a prior case, Fall Line Patents LLC v. Zoe's Kitchen Inc, in which court orders purportedly upheld the patentability of the inventive concepts under 35 U.S.C. § 101.

Case Timeline

Date Event
2002-08-19 Priority Date for ’748 Patent
2016-09-27 ’748 Patent Issued
2017-10-06 IPR2018-00043 Filed
2019-01-22 IPR2019-00610 Filed
2022-12-19 IPR Certificate Issued (IPR2019-00610), Confirming Claim 7 Patentable
2023-08-22 IPR Certificate Issued (IPR2018-00043), Canceling Claims 16-18
2026-09-29 Complaint Filed

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

  • Patent Identification: U.S. Patent No. 9,454,748, "System and Method for Data Management," issued September 27, 2016.
  • The Invention Explained:
    • Problem Addressed: The patent describes a technical landscape where developing software for remote data collection was inefficient due to hardware and software fragmentation across different handheld devices Compl. ¶7 Each type of device often required a custom-built program, and any updates necessitated recompiling and reinstalling the entire program on every device Compl. ¶23 ’748 Patent, col. 3:1-10 Additionally, these remote devices often operated in environments with unreliable or intermittent network connections, making real-time data transfer difficult ’748 Patent, col. 3:64-4:1
    • The Patented Solution: The invention proposes a system that uses "device-indifferent tokens" to create a "tokenized questionnaire" Compl. ¶24 ’748 Patent, col. 13:52-54 This architecture allows a single application to be executed across various remote computing devices without custom recompilation for each one ’748 Patent, col. 4:66-5:2 To address network issues, the system is "loosely networked," meaning it can store data locally on the device when a connection is unavailable and then transmit it automatically when connectivity is restored ’748 Patent, abstract ’748 Patent, col. 5:3-12 The system is also designed to leverage a device's integrated GPS to automatically collect location information as part of the data-gathering process Compl. ¶26 ’748 Patent, col. 10:56-62
    • Technical Importance: The described technology aimed to create a more efficient, flexible, and resilient framework for remote data collection, reducing development overhead and improving the timeliness and accuracy of field-gathered data Compl. ¶23 ’748 Patent, col. 2:55-65
  • Key Claims at a Glance:
    • The complaint asserts independent Claim 7 of the ’748 Patent Compl. ¶11
    • The essential elements of Claim 7 are:
      • A method for collecting survey data comprising:
      • (a) designing a questionnaire customized for a particular location with branching logic on a first computer platform, where at least one question requests location identifying information;
      • (b) automatically transferring the questionnaire to a "loosely networked computer" with an integrated GPS;
      • (c) executing the questionnaire on the device at the particular location to collect user responses;
      • (d) using the GPS to automatically provide location identifying information as a response to the questionnaire while it is executing;
      • (e) automatically transferring collected responses "in real time" to a central computer via the "loose network"; and
      • (f) making the responses available via the Internet from the central computer.
    • The prayer for relief broadly requests judgment on "one or more claims" Compl. p. 11, prayer a

III. The Accused Instrumentality

  • Product Identification: The accused instrumentalities are the "Great Clips Mobile App" operating in conjunction with "Great Clips servers" Compl. ¶10
  • Functionality and Market Context: The complaint alleges that the accused system is used to "create and execute a location-specific questionnaire to collect responses from users" Compl. ¶10 The complaint describes the app as being used by customers to "check in for, one or more Great Clips locations" within the district Compl. ¶5 The complaint does not contain detailed technical specifications of the app's architecture or operation, focusing instead on its user-facing function of facilitating a salon visit. No probative visual evidence provided in complaint.

IV. Analysis of Infringement Allegations

The complaint does not provide a detailed claim chart mapping specific features of the Great Clips Mobile App to the elements of Claim 7. The infringement theory must be inferred from the general allegations. The central allegation is that the system, comprising the app and servers, performs the method of Claim 7 by allowing users to "check in" at specific salon locations, which Plaintiff construes as executing a location-specific questionnaire Compl. ¶¶10-11 The complaint does not provide sufficient detail for analysis of how each claim limitation is allegedly met by the accused instrumentality.

  • Identified Points of Contention:
    • Scope Questions: A primary point of dispute may be whether the "check-in" functionality of the Great Clips Mobile App constitutes a "questionnaire" with "branching logic" as required by Claim 7(a). The defense may argue that a check-in process is a simple scheduling or queuing function, not a "questionnaire" in the sense described by the patent's detailed "mystery shopper" examples ’748 Patent, col. 10:37-11:21
    • Technical Questions: The complaint's assertion that the system meets claim element 7(d) raises a key technical question: Does the app use GPS data as an automatic "response" to a prompt within the questionnaire, or does it simply use location data contextually to identify nearby salons? The claim language requires the location information itself to be a "response," a distinction that may be critical.
    • Technical Questions: Analysis will likely focus on whether the accused system operates as a "loosely networked" system that transfers data in "real time" as defined by the patent (Claim 7(e)). This may require evidence of how the app handles data transfer during periods of intermittent or lost network connectivity.

V. Key Claim Terms for Construction

  • The Term: "questionnaire"

  • Context and Importance: The definition of this term is fundamental to the dispute. Whether the Great Clips app's check-in process infringes hinges on if it can be classified as a "questionnaire." Practitioners may focus on this term because its scope will likely determine whether the patent reads on simple interactive applications or is limited to more complex, survey-style instruments.

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The specification describes a questionnaire as a "series of questions or statements, each of which calls for a response" ’748 Patent, col. 8:27-29 This could support a broad interpretation that covers any structured data input process, including a check-in form.
    • Evidence for a Narrower Interpretation: The patent's detailed embodiment describes a complex "mystery shopper" survey with multiple timers, conditional logic, and qualitative questions ’748 Patent, col. 10:37-11:21 This example could support a narrower construction that limits the term to applications with similar complexity and purpose, potentially excluding a simpler check-in function.
  • The Term: "loosely networked"

  • Context and Importance: This term is explicitly defined in the patent and is central to the claimed method of data transfer. Infringement of element 7(e) depends on whether the accused system operates in this manner.

  • Intrinsic Evidence for Interpretation:

    • Evidence for a Broader Interpretation: The patent defines the term functionally: a network where "if a network connection is unavailable at that moment, the information is temporarily stored in the device and later transmitted when the connection is restored" ’748 Patent, col. 5:9-12 This provides a clear, functional test.
    • Evidence for a Narrower Interpretation: The parties are unlikely to dispute the patent's explicit definition. Instead, the dispute will be factual: whether the accused app actually implements this store-and-forward capability or simply fails to operate when offline.

VI. Other Allegations

  • Indirect Infringement: The complaint alleges inducement, stating Defendant took active steps with specific intent to cause infringement, including by "advising or directing customers and end-users to use the accused products in an infringing manner" Compl. ¶15 It also alleges contributory infringement, claiming the products have special features with no substantial non-infringing uses Compl. ¶16
  • Willful Infringement: Willfulness is alleged based on Defendant's actions being "objectively reckless as to the risk of infringing a valid patent" Compl. ¶18 The complaint also pleads willful blindness, alleging Defendant has a "policy or practice of not reviewing the patents of others" Compl. ¶17 The allegations appear to be based on post-suit knowledge, as no pre-suit notice is mentioned.

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

  • A core issue will be one of definitional scope: can the term "questionnaire," which the patent illustrates with a complex survey, be construed to cover the "check-in" functionality of the accused mobile application? The outcome of this claim construction battle may be determinative.
  • A key evidentiary question will be one of functional operation: does the Great Clips Mobile App perform the specific technical steps recited in Claim 7? In particular, does it use GPS data as an automated "response" to a query, and does it employ the patent's "loosely networked" store-and-forward protocol for data transmission?
  • A central legal question will be the impact of the patent's prosecution history: how will the fact that Claim 7 survived an Inter Partes Review—a proceeding designed to weed out weak patents—affect the court’s analysis of validity and potentially strengthen the plaintiff's position throughout the litigation?