Keystone Global, LLC v. Walmart Inc.

Case Summary

On February 17, 2021, Keystone Global, LLC (“Plaintiff” or “Keystone”), represented by Jeffrey L. Eichen of Faegre Drinker Biddle & Reath LLP, filed an intellectual property lawsuit against Walmart Inc. (“Defendant” or “Walmart”), seeking permanent injunction, damages and other relief under 35 U.S.C. § 284 for allegedly infringing Keystone’s intellectual property relating to protective devices for vehicles, the devices comprising in part stabilizer blocks disposed on and/or formed integrally with the base of the device. This case was filed in U.S. District Court in the District of Delaware with Judge Richard G. Andrews presiding.

The Plaintiff alleged that the Defendant has infringed one or more claims under United States Patent Numbers 8,850,727 relating to a device for attaching a license plate to a vehicle, including in certain claims a license plate frame having pyramid shaped extensions (“the ‘727 Patent”), 7,866,715 (“the ‘715 Patent”) and 8,047,601 (“the ‘601 Patent” which generally generally claim protective devices for vehicles, the devices comprising in part stabilizer blocks disposed on and/or formed integrally with the base of the device (collectively the “Patents-In-Suit”).

The Plaintiff in its complaint alleged that “Keystone reported the infringing listings to Walmart using its online reporting tool. Keystone provided all the information requested by the online reporting tool regarding the infringing products. Walmart confirmed receipt of Keystone’s online infringement report but thereafter took no further action to remove the infringing products from its website.” The Plaintiff also alleged that “Walmart’s legal department has repeatedly denied any responsibility for removing the infringing product listings from Walmart’s website because, according to Walmart, such products originate from Marketplace Retailers.”

Plaintiff further alleged that “Walmart has the ability to remove listings for infringing products sold by Marketplace Retailers through Walmart’s website. Upon information and belief, Walmart has the legal right to remove listings when a Marketplace Retailer’s product infringes a third party’s intellectual property rights. Upon information and belief, Walmart collects fees from the sale of all Marketplace Retailer products sold through Walmart’s website, including Marketplace Retailer products for which Walmart knows (or should know through receipt of actual notice) there is a claim of patent infringement.” and that “Walmart, having received actual and constructive notice of Keystone’s patent rights and further continuing to infringe such rights, has willfully and intentionally infringed Keystone’s Patents-In-Suit.

Two claims for relief laid down by the Plaintiff are for the alleged infringement of one or more claims of the ‘727 Patent, the ‘715 Patent and ‘601 Patent respectively.

In the prayer for relief, Plaintiff has requested the court to pass an order awarding damages to Plaintiff but in no event less than a reasonable royalty, plus pre- and post-judgment interest, also award exemplary damages to Keystone in an amount equal to three times the actual damages and profits awarded pursuant to 35 U.S.C. § 284. Plaintiff also requested the court to pass permanently enjoining Walmart pursuant to 35 U.S.C. § 283 from importing, offering for sale and selling, or inducing any third party from importing, offering for sale or selling, any product which infringes Keystone’s patent rights along with costs of action. 

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