Press Release November 12, 2020

Federal Circuit Affirms Dismissal of Patent Infringement Claims Against CarMax

In a major victory for Alston & Bird client CarMax Auto Superstores Inc., the U.S. Court of Appeals for the Federal Circuit affirmed a recent Massachusetts federal court ruling dismissing with prejudice patent infringement claims filed by KCG Technologies LLC. 

The complaint alleged that CarMax infringed U.S. Patent No. 9,671,955. Entitled “Virtual Smart Phone,” the patent applies to a mounted touchscreen that emulates a smartphone to give drivers a simple way of using their phone or other handheld device while driving.

In November 2019, the U.S. District Court for the District of Massachusetts granted CarMax’s motion to dismiss the patent infringement action. The court found that the patent was drawn to the abstract idea of “emulating the features of a smartphone or other handheld device on another screen,” and only recited the “desired function” without outlining a particular way to perform it.

Defending CarMax in the appeal is an Alston & Bird team led by partner Bob Lee, senior associate Sean Bedford, and associate Shawn Gannon of the Patent Litigation practice of the firm’s Intellectual Property Litigation Group.

The case is KCG Technologies LLC v. CarMax Auto Superstores Inc., et al., No. 20-1327, in the U.S. Court of Appeals for the Federal Circuit.
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