Federal Circuit Affirms Invalidity of Web-Based POS Builder Patent
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📋 Case Summary
| Case Name | Cloud of Change, LLC v. Lightspeed Commerce, Inc. |
| Case Number | 24-1547 (Fed. Cir.) |
| Court | Federal Circuit, Appeal from D.C. Circuit |
| Duration | Mar 2024 – Nov 2025 1 year 8 months |
| Outcome | Defendant Win – Patent Invalidated |
| Patents at Issue | |
| Accused Products | Web-based point of sale builder (Lightspeed and Clover Network) |
Case Overview
The Parties
⚖️ Plaintiff
Patent-holding plaintiff asserting rights over web-based POS builder technology. A licensing-focused entity.
🛡️ Defendant
Publicly traded commerce platform provider offering cloud-based POS solutions to retailers and restaurateurs globally.
The Patent at Issue
This case involved one software patent covering web-based point-of-sale builder technology:
- • US11226793B2 — Methods and systems enabling the construction and deployment of web-based POS interfaces.
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The Verdict & Legal Analysis
Outcome
The Federal Circuit issued a per curiam affirmance, upholding the finding that U.S. Patent No. 11,226,793 B2 is unpatentable. The single-word disposition—”AFFIRMED”—reflects the panel’s agreement with the lower tribunal’s invalidity analysis. No damages or injunctive relief were awarded.
Key Legal Issues
The case was classified under Invalidity/Cancellation Action with the verdict cause identified as Patentability and the basis of termination confirmed as Unpatentable. This typically involves challenges under 35 U.S.C. §§ 101 (patent-eligible subject matter), 102 (novelty), or 103 (non-obviousness). For web-based software systems, § 101 eligibility often proves to be a critical vulnerability following Alice Corp. v. CLS Bank International.
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⚠️ Freedom to Operate (FTO) Analysis
This case highlights critical IP risks in web-based POS technology. Choose your next step:
📋 Understand This Case’s Impact
Learn about the specific risks and implications from this litigation.
- View all related software patents in this technology space
- See which companies are most active in POS patents
- Understand claim invalidity patterns and strategies
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High Risk Area
Overbroad software claims (especially under § 101)
Numerous Related Patents
In POS software and cloud commerce
Clearer Landscape
For web-based POS builder features
✅ Key Takeaways
For Patent Attorneys & Litigators
§ 101 eligibility continues to be a dispositive vulnerability for software-implemented patent claims.
Search related case law →Per curiam affirmances, even brief, reinforce lower tribunal’s invalidity analysis and serve as valuable precedent.
Explore precedents →For R&D Leaders & IP Professionals
Freedom-to-operate assessments must scrutinize validity, especially § 101, for software patents.
Start FTO analysis for my product →Prioritize technically specific claims that distinguish from abstract ideas to strengthen patent quality and avoid invalidity risk.
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