A US court overturned a $40M patent infringement verdict against Shopify. The judge found insufficient evidence of infringement by Shopify. This decision is a major win for Shopify in its fight against patent trolls, who often target successful companies.
In a significant legal victory, Shopify convinced a Delaware court to overturn a 2022 patent infringement verdict. The original ruling ordered Shopify to pay $40M to Express Mobile, a California-based company. The judge, Richard Andrews, found insufficient evidence to support the jury's decision that Shopify's website-building tools infringed on Express Mobile's patents.
Shopify had always planned to contest the 2022 verdict. A Shopify spokesperson, Jackie Warren, called the judgment "a significant victory in the battle against patent trolls." She stated, "Patent trolls abuse the hard work and success of innovative businesses. We’ll continue to aggressively pursue all legal avenues to defend against this type of exploitation." This highlights Shopify's ongoing commitment to fight against what it views as baseless legal claims.
The case dates back to 2018 when Express Mobile first contacted Shopify about alleged patent infringements. Express Mobile sued Shopify in 2019. The initial verdict came after a five-day trial, where the jury found Shopify had violated three of Express Mobile's patents, leading to a $40M award. However, the recent judgment found no sufficient evidence that any Shopify merchant used the accused functionalities or that Shopify's features met the technical criteria described in Express Mobile's patents.
This ruling could have broader implications for Shopify and other tech companies often targeted by patent trolls. Express Mobile has a history of suing other major tech companies, including Google, Meta, and Amazon, for patent infringement. Shopify, now free from this $40M liability, can refocus on growth and innovation without the looming threat of this lawsuit. This decision sets a precedent for other companies facing similar claims.
How will this legal victory affect Shopify's growth?
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