Lifted Limited v. Novelty Inc. & Walmart: Design Patent Dispute Ends in Stipulated Dismissal
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📋 Case Summary
| Case Name | Lifted Limited, LLC v. Novelty, Inc. and Walmart, Inc. |
| Case Number | 1:16-cv-03135 (D. Colo.) |
| Court | U.S. District Court for the District of Colorado |
| Duration | Dec 2016 – Apr 2024 7 years 3 months |
| Outcome | Resolved — Stipulated Dismissal |
| Patents at Issue | |
| Accused Products | Smoking accessory devices embodying the protected ornamental design |
Case Overview
After more than seven years of litigation in the U.S. District Court for the District of Colorado, Lifted Limited, LLC v. Novelty, Inc. and Walmart, Inc. (Case No. 1:16-cv-03135) concluded not with a jury verdict or judicial ruling on the merits, but with a stipulated dismissal with prejudice — a resolution that closed all claims, counterclaims, and defenses between the parties permanently.
At the center of this design patent infringement dispute was U.S. Design Patent No. USD662,655S — protecting the ornamental design of the Flagship Toker Poker® Smoking Tool, a multi-function smoking accessory device manufactured and marketed by plaintiff Lifted Limited, LLC. The defendants, specialty retailer Novelty, Inc. and retail giant Walmart, Inc., faced allegations that competing products infringed that registered design.
For IP professionals, R&D teams, and patent litigators, this case offers instructive insights into the lifecycle of design patent assertions, the strategic dynamics of pursuing retail distribution chains, and how prolonged litigation ultimately gives way to negotiated resolution.
The Parties
⚖️ Plaintiff
Owner and commercializer of the Toker Poker® brand of multi-function smoking tool accessories, with meaningful retail penetration in the smoking accessories market.
🛡️ Defendant
Novelty, Inc. is a specialty wholesale/retail distributor. Walmart, Inc. is a global retail corporation. Both faced allegations of infringing products.
The Patent at Issue
This dispute centered on a single design patent protecting the ornamental appearance of a popular smoking accessory. Design patents are registered with the U.S. Patent and Trademark Office (USPTO) and protect ornamental appearance rather than functional technology.
- • US D662,655S — Ornamental design of the Flagship Toker Poker® Smoking Tool
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The Verdict & Legal Analysis
Outcome
On April 1, 2024, Chief Judge Philip A. Brimmer entered an order acknowledging the Stipulated Dismissal with Prejudice (Docket No. 324), filed jointly by all appearing parties pursuant to Federal Rule of Civil Procedure 41(a)(1)(A)(ii). The dismissal encompassed “all claims, counterclaims, and defenses that have been or could have been asserted by and between the Parties.” No damages award, injunctive relief, or public judicial ruling on validity or infringement was issued.
Key Legal Issues
The case, designated as an infringement action, involved design patent protection. Design patent litigation under 35 U.S.C. § 289 carries distinctive features, including total profits disgorgement as a potential remedy. Infringement is assessed through the “ordinary observer test” (Egyptian Goddess, Inc. v. Swisa, Inc., Fed. Cir. 2008), which is notably favorable to plaintiffs compared to utility patent claim construction. The involvement of Walmart as a downstream retailer likely created significant settlement pressure due to brand risk and operational disruption concerns.
Freedom to Operate (FTO) Analysis
This case highlights critical IP risks in consumer product design. Choose your next step:
📋 Understand This Case’s Impact
Learn about the specific risks and implications from this litigation.
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High Risk Area
Smoking accessory device designs
1 Related Patent
In smoking accessory design space
Design-Around Options
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✅ Key Takeaways
Stipulated dismissals with prejudice after extensive docket activity typically reflect undisclosed settlement terms — monitor related licensing activity in the market.
Search related case law →Design patent infringement claims against retail chains carry distinct settlement leverage due to brand risk and supply chain disruption concerns.
Explore precedents →The Egyptian Goddess ordinary observer standard remains the operative infringement test — case strategy should be structured accordingly.
Learn more about this standard →Frequently Asked Questions
U.S. Design Patent No. USD662,655S (Application No. US29/413,681), protecting the ornamental design of the Flagship Toker Poker® Smoking Tool.
The case was resolved through a Stipulated Dismissal with Prejudice (Docket No. 324) entered April 1, 2024, under FRCP 41(a)(1)(A)(ii), with no public damages award or merits ruling.
Naming major retail defendants creates significant settlement leverage — retailers face brand reputational risk, supply chain disruption, and operational costs that often make resolution preferable to prolonged litigation.
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References
- PACER — Case No. 1:16-cv-03135, D. Colo.
- USPTO Patent Center — USD662,655S
- Justia Law — Egyptian Goddess, Inc. v. Swisa, Inc., 543 F.3d 665 (Fed. Cir. 2008)
- Cornell Legal Information Institute — 35 U.S.C. § 289
- PatSnap — IP Intelligence Solutions for Law Firms
This article is for informational purposes only and does not constitute legal advice. All case information is drawn from publicly available court records. For platform capabilities, visit PatSnap.