A one-person Texan company is suing the
world's largest retailer Wal-Mart
Stores Inc and some of its key suppliers for allegedly infringing on its RFID
patent.
The plaintiff RFID World Ltd, which was established in recent weeks by the
inventor of the contested patent Ronald Bormaster, is seeking unspecified
damages.
We have not even asked for an injunction, said lead prosecutor Edward
Goldstein of Texan law firm Goldstein, Faucett & Prebeg LLP. It's not my
policy to ask for an injunction for a client who is not a competitor who
doesn't have a product in the marketplace like this company.
Goldstein said RFID World was not after hundreds of millions or billions of
dollars in the case. We plan to allow this technology to be used for a very
modest licensing fee.
RFID World owns the US patent called Inventory Control System, which
relates to a technology that may be used for inventory control or tracking RFID-tagged items.
It covers RFID collision avoidance technology that prevents signals from
multiple RFID-tagged items from colliding, which can interfere with the accuracy
of RFID tag reads.
The patented technique can be found in an RFID chip and the way in which the
RFID reader reads the signals, Goldstein said. RFID World alleges the technology
is currently being used in Wal-Mart's inventory control system and infringes its
patent.
Wal-Mart developed its own technology but we say it's infringing our
technology, Goldstein said. He noted that there was no element of intent in US
patent-infringement law.
Wal-Mart has mandated that its vendors also use this technology in order to
do business, he said. Wal-Mart suppliers Gillette, Michelin North America, Home
Depot USA, Target and Pfizer Health Solutions have also been named in the
suit.
A Wal-Mart spokesperson said the Arkansas-based retailer had been issued a
summons, but was still studying the suit. And until we complete that process we
can't really comment, he said.
Goldstein said Wal-Mart and its suppliers were sent letters alerting them to
the alleged infringement during the past six months, prior to the litigation and
the creation of RFID World. He said they all responded but did not present us
with any reason why our patent was invalid, Goldstein said.
They all claimed, for example, that they were not using the same collision
avoidance technology, Goldstein said. Our research tells us otherwise.
Goldstein also said his law firm had investigated the patent, filed by Bormaster
in 1999, and believes it has merit.
Defendants are expected to next respond to the complaint, at which time they
may ask for the case to be transferred to a different jurisdiction. If not, the
early discovery and motion stages of the case would happen during the next two
months.