Federal Circuit Upholds Key ‘Targeted Ads’ Claim by B.E. Technology
The U.S. Court of Appeals for the Federal Circuit (CAFC) recently issued a Rule 36 decision affirming several Patent Trial and Appeal Board (PTAB) rulings related to petitions brought by Twitter and Google. The PTAB had found most claims of three B.E. Technology patents unpatentable, except for one crucial claim covering “real-time targeted advertising.”
The underlying inter partes review (IPR) decisions, issued in September 2022, resulted in the Board deeming all challenged claims unpatentable except for Claim 25 of U.S. Patent No. 8,769,440. This particular claim focuses on providing reactive targeting of advertising to users in real-time based on their interactions with a computer.
Google and Twitter, in their appeal to the CAFC, argued that the Board erred in its interpretation of claim 25’s requirement for targeting ads in real-time based on user interaction. They contended that the claim should not be limited to current interactions but should also include past interactions. However, B.E. Technology maintained that the proper construction of the claim necessitates targeting advertisements based at least in part on current user interaction.
B.E. Technology, represented by attorney Kayvan B. Noroozi, expressed satisfaction with the Federal Circuit’s decision, emphasizing the significance of claim 25 in the realm of internet advertising. The technology covered by this claim is considered foundational to Google’s ad revenue, which amounted to $237.86 billion in 2023.
The ongoing dispute between B.E. Technology, Google, and Twitter will now proceed before the District of Delaware, where Google and Twitter will face statutory estoppel under 35 USC 315(e). The outcome of these proceedings holds significant damages at stake for all parties involved.
The Rule 36 decision by the Federal Circuit marks a victory for B.E. Technology, underscoring the importance of claim 25 in the realm of real-time targeted advertising. As the legal battle continues, the implications of this ruling are sure to have a lasting impact on the future of internet advertising and patent rights within the tech industry.