<b><i>Online Extra:</b></i> Conn. Tech Company Accuses Facebook of Patent Infringement

A small technology company in Simsbury, CT, is taking on one of the largest technology companies in the world.

ConnectQuest filed a federal lawsuit Sept. 17 claiming that Facebook has infringed upon ConnectQuest's patent for a new technology it developed, known as the “close proximity notification system.”

On the consumer's end, ConnectQuest's tech is simple: You download an app and then look for notifications announcing deals, coupons and “loyalty bonuses” for products and services. Businesses use a CQ Beacon, which emits a signal through a physical transponder by using Bluetooth. Smartphones in the area pick up the message and relay it to customers who are inside the business, walking by or driving past.

The Connecticut company secured the patent for the CQ Beacon in September 2014. At the time, the development was considered innovative and was lauded by publications such as Wired.

“Though this company certainly has a way to go before it catches up with the major players in the space, it demonstrates promising momentum, working with several local retail stores and malls helping to market products and promotions,” Wired wrote in a blog post.

In the November 2014, ConnectQuest sent several letters to Facebook letting the social networking service know about its patent, 8,831,624. But, according to ConnectQuest's claim, in January, Facebook nevertheless launched a similar product, called Facebook Beacon. Its initial trial was with six retail stores in New York City.

“These Facebook Beacons provide a signal that instructs a Facebook mobile app on a user's mobile device (e.g., a smartphone) to display what defendant refers to as 'Place Tips' when the user is in proximity to the Facebook Beacon,” according to the lawsuit. In June, Facebook announced it would offer free beacons to businesses across the country.

In its lawsuit, ConnectQuest said its patent “discloses a novel system” for smartphone and mobile device users. It claims Facebook's technology is too similar, and that by manufacturing and distributing its product, Facebook is not only infringing on ConnectQuest's patent but also causing its customers ' the stores that use Facebook Beacon ' to infringe upon the patent.

ConnectQuest is seeking a permanent injunction to prevent Facebook from further infringement, as well as seeking damages.

“[Facebook] has had specific knowledge of the '624 patent at least since [ConnectQuest] sent its first correspondence in or around September 2014,” according to the lawsuit. “[Facebook] willingly and specifically intended to infringe and/or encourage its customers to infringe one or more claims of the patents-in-suit and knew or should have known that its actions would induce its customers to infringe one or more claims of the patents-in-suit.”

Steven Coyle, of Hartford-based intellectual property firm Cantor Colburn, is representing ConnectQuest. He was not immediately available for comment.

Executives at ConnectQuest also could not be reached for comment. Facebook has yet to reply to the lawsuit. Through a spokeswoman, it declined to comment on the lawsuit.

Facebook has been a target of numerous patent infringement lawsuits in the more than 10 years since it burst onto the scene as a social media company. In one such case, in 2012, Yahoo sued Facebook over allegedly infringing on 10 patents, including methods and systems for advertising on the Web. The case was dismissed three months later.

Earlier this year, BladeRoom Group, a British company, sued Facebook for allegedly stealing its data collection technique. The company contacted Facebook in 2011 about the technique, which was faster and more energy-efficient than what Facebook was using before. That lawsuit is still pending.

– Megan Spicer, The Connecticut Law Tribune

A small technology company in Simsbury, CT, is taking on one of the largest technology companies in the world.

ConnectQuest filed a federal lawsuit Sept. 17 claiming that Facebook has infringed upon ConnectQuest's patent for a new technology it developed, known as the “close proximity notification system.”

On the consumer's end, ConnectQuest's tech is simple: You download an app and then look for notifications announcing deals, coupons and “loyalty bonuses” for products and services. Businesses use a CQ Beacon, which emits a signal through a physical transponder by using Bluetooth. Smartphones in the area pick up the message and relay it to customers who are inside the business, walking by or driving past.

The Connecticut company secured the patent for the CQ Beacon in September 2014. At the time, the development was considered innovative and was lauded by publications such as Wired.

“Though this company certainly has a way to go before it catches up with the major players in the space, it demonstrates promising momentum, working with several local retail stores and malls helping to market products and promotions,” Wired wrote in a blog post.

In the November 2014, ConnectQuest sent several letters to Facebook letting the social networking service know about its patent, 8,831,624. But, according to ConnectQuest's claim, in January, Facebook nevertheless launched a similar product, called Facebook Beacon. Its initial trial was with six retail stores in New York City.

“These Facebook Beacons provide a signal that instructs a Facebook mobile app on a user's mobile device (e.g., a smartphone) to display what defendant refers to as 'Place Tips' when the user is in proximity to the Facebook Beacon,” according to the lawsuit. In June, Facebook announced it would offer free beacons to businesses across the country.

In its lawsuit, ConnectQuest said its patent “discloses a novel system” for smartphone and mobile device users. It claims Facebook's technology is too similar, and that by manufacturing and distributing its product, Facebook is not only infringing on ConnectQuest's patent but also causing its customers ' the stores that use Facebook Beacon ' to infringe upon the patent.

ConnectQuest is seeking a permanent injunction to prevent Facebook from further infringement, as well as seeking damages.

“[Facebook] has had specific knowledge of the '624 patent at least since [ConnectQuest] sent its first correspondence in or around September 2014,” according to the lawsuit. “[Facebook] willingly and specifically intended to infringe and/or encourage its customers to infringe one or more claims of the patents-in-suit and knew or should have known that its actions would induce its customers to infringe one or more claims of the patents-in-suit.”

Steven Coyle, of Hartford-based intellectual property firm Cantor Colburn, is representing ConnectQuest. He was not immediately available for comment.

Executives at ConnectQuest also could not be reached for comment. Facebook has yet to reply to the lawsuit. Through a spokeswoman, it declined to comment on the lawsuit.

Facebook has been a target of numerous patent infringement lawsuits in the more than 10 years since it burst onto the scene as a social media company. In one such case, in 2012, Yahoo sued Facebook over allegedly infringing on 10 patents, including methods and systems for advertising on the Web. The case was dismissed three months later.

Earlier this year, BladeRoom Group, a British company, sued Facebook for allegedly stealing its data collection technique. The company contacted Facebook in 2011 about the technique, which was faster and more energy-efficient than what Facebook was using before. That lawsuit is still pending.

– Megan Spicer, The Connecticut Law Tribune