Random Chat LLC v. Costco Wholesale: TCP/IP Multimedia Patent Suit Dropped
Random Chat, LLC filed a patent infringement action against Costco Wholesale in the Western District of Texas, asserting US8402099B2 covering a TCP/IP and UDP-based multimedia communication method. The case closed after just 115 days when the plaintiff voluntarily dismissed without prejudice before Costco filed any answer.
Early voluntary exit before Costco answered: what the record shows
On September 23, 2024, Random Chat, LLC filed a patent infringement action against Costco Wholesale, Corp. in the U.S. District Court for the Western District of Texas (Case No. 7:24-cv-00237). The asserted patent, US8402099B2, claims a method for carrying out multimedia communications over network protocols — specifically TCP/IP and UDP. Costco, a major retail and e-commerce operator, was accused of infringing that method patent through unspecified products or services.
On January 15, 2025 — just 115 days after filing — Random Chat filed a Notice of Voluntary Dismissal Without Prejudice under Federal Rule of Civil Procedure 41(a)(1)(A)(i). Because Costco had not yet served an answer or a motion for summary judgment, the notice was self-effectuating: no court order was required to terminate the case. The court confirmed the dismissal on January 16, 2025, and ordered each party to bear its own costs, expenses, and attorney fees.
The speed of dismissal — before Costco mounted any formal defense — is consistent with early-stage pressure driving a plaintiff exit, though the public record is silent on whether any licensing discussions occurred. The without-prejudice designation preserves Random Chat’s right to refile the same claims, meaning the legal dispute over US8402099B2 and Costco’s exposure are not necessarily resolved. Ramey LLP, known for filing high-volume patent assertion actions, represented the plaintiff.
Filing to Voluntary dismissal in 115 days
115 days — resolved before defendant answered, well below district average for patent cases
Voluntarily dismissed: what the without-prejudice exit means for both sides
FRCP 41(a)(1)(A)(i): plaintiff’s self-executing exit right
Rule 41(a)(1)(A)(i) permits a plaintiff to dismiss an action without a court order by filing a notice before the defendant serves an answer or a motion for summary judgment. Because Costco had done neither, Random Chat’s notice was self-effectuating — the case terminated automatically upon filing. No judicial merits review occurred, and no findings were made regarding the validity or infringement of US8402099B2.
Pre-answer dismissalWithout prejudice: the public record is silent on finality
A dismissal without prejudice does not resolve the underlying dispute. Random Chat retains the right to refile the same infringement claims against Costco or any other party. A dismissal with prejudice would have permanently barred refiling — but the court’s order here confirms the without-prejudice designation. The public record does not disclose whether any licensing agreement or settlement was reached; that possibility cannot be confirmed or excluded from available documents.
Refiling right preservedCostco exits without a merits ruling — but risk is not eliminated
Costco secured dismissal before incurring the cost of formal answer or summary judgment briefing, and no adverse finding was entered against it. However, without a declaration of non-infringement or invalidity, Costco receives no legal shield against future assertion of US8402099B2. The patent remains in force, and the same or substantially similar claims could be reasserted, including in a different venue.
No merits adjudicationPre-answer exit leaves TCP/IP multimedia patent risk open
For retailers, e-commerce operators, and technology providers using TCP/IP or UDP-based multimedia communication methods, this outcome is not a clean bill of health. US8402099B2 was not invalidated and infringement was not adjudicated. Entities offering video, voice, or multimedia networking features should evaluate FTO exposure against this patent, particularly given the plaintiff’s apparent willingness to refile or engage other targets.
Ongoing patent exposureFull party and counsel information
| Role | Name | Type | Detail |
|---|---|---|---|
| Plaintiff | Random Chat, LLC | Company | Patent assertion entity — holder of US8402099B2, TCP/IP multimedia communication methodSearch in Eureka ↗ |
| Defendant | Costco Wholesale, Corp. | Company | Costco Wholesale, Corp. — multinational retail and e-commerce operator; defended by DLA Piper US LLPSearch in Eureka ↗ |
| Plaintiff counsel | Jeffrey Eugene Kubiak | Attorney | Counsel for Random Chat, LLCSearch in Eureka ↗ |
| Plaintiff counsel | William P. Ramey , III | Attorney | Counsel for Random Chat, LLCSearch in Eureka ↗ |
| Plaintiff law firm | Ramey LLP | Law Firm | Representing Random Chat, LLCSearch in Eureka ↗ |
| Defendant counsel | John M. Guaragna | Attorney | Counsel for Costco Wholesale, Corp.Search in Eureka ↗ |
| Defendant law firm | DLA Piper US LLP | Law Firm | Representing Costco Wholesale, Corp.Search in Eureka ↗ |
| Presiding judge | Judge N/A | Judge | Texas Western District CourtSearch in Eureka ↗ |
Official order — verbatim text
The court’s order confirms the dismissal was self-effectuating under FRCP 41(a)(1)(A)(i), requiring no judicial merits review. The phrasing ‘without prejudice’ is legally significant: it means no final adjudication of infringement or validity occurred, and Random Chat’s right to refile is expressly preserved. The cost order — each party bearing its own — is standard for pre-answer voluntary dismissals and does not suggest any finding of bad faith or exceptional case status under 35 U.S.C. § 285.
US8402099B2 — TCP/IP and UDP multimedia communication method
US8402099B2, filed under application number US12/675046, protects a method for carrying out multimedia communications using network protocols — specifically TCP/IP and UDP. These protocols underpin the majority of modern internet-based voice, video, and data communication systems. The patent’s claims cover a method-level invention, meaning the protection attaches to the process of transmitting multimedia over these protocols rather than to specific hardware implementations, which can broaden its potential applicability across diverse product categories.
The strategic reach of a TCP/IP/UDP multimedia communication method patent is substantial. Virtually any product or platform that streams audio, video, or combined multimedia content over the internet — including retail platforms with video chat, IP telephony, streaming storefronts, or customer service tools — could fall within the scope of analysis. For Costco and peers in the retail and e-commerce sector, assessing whether specific implementations of multimedia features implicate this patent’s claim scope is a commercially meaningful undertaking, particularly given the without-prejudice dismissal.
Should you run an FTO analysis against US8402099B2?
Any company developing or deploying TCP/IP or UDP-based multimedia communication features — including video streaming, VoIP, IP-based customer service tools, or real-time communication platforms — should evaluate their exposure to US8402099B2. The patent’s method claims are broad enough to sweep in diverse implementation architectures, and the without-prejudice dismissal against Costco means the patent holder retains full enforcement rights. Retailers, SaaS platforms, and telecoms are particularly relevant categories.
PatSnap Eureka’s FTO Search Agent can map the claim scope of US8402099B2 against your product architecture, surface prior art that may narrow enforceability, and identify related continuations or family members that could extend the risk profile. Eureka also tracks litigation history and assignment records, giving your legal and R&D teams real-time visibility into where this patent has been asserted and who holds it.
Run a freedom-to-operate analysis on US8402099B2 to assess your product’s exposure
Run FTO in Eureka →Similar TCP/IP multimedia patent infringement cases in W.D. Texas
Explore related patent infringement actions involving TCP/IP and multimedia communication method patents filed in the Western District of Texas federal court.
What this case signals for the network protocol patent IP landscape
A rapid pre-answer exit from a Ramey LLP filing in W.D. Texas carries specific signals for defendants and potential targets in the multimedia networking space.
Pre-answer dismissals by Ramey LLP warrant early monitoring
Ramey LLP is a high-volume patent assertion firm in the Western District of Texas. When cases filed by this firm resolve before an answer is filed, it typically signals either early licensing resolution or a strategic pivot to different targets. Companies operating in the TCP/IP multimedia space should track subsequent filings involving US8402099B2.
Without-prejudice exits preserve plaintiff optionality — defendants should not stand down
Costco’s exit without a court ruling means Random Chat can refile. Companies in retail and e-commerce that deploy multimedia communication infrastructure — streaming, video chat, IP telephony — should treat this outcome as a pause, not a resolution, and assess their exposure to US8402099B2 proactively.
Random v Costco — key questions answered
Random Chat, LLC sued Costco Wholesale, Corp. in the Western District of Texas on September 23, 2024, asserting infringement of US8402099B2, a TCP/IP multimedia communication method patent. The case was voluntarily dismissed without prejudice on January 16, 2025 — 115 days after filing — before Costco served any answer or motion for summary judgment.
A dismissal without prejudice means no merits ruling was entered. Random Chat retains the legal right to refile the same infringement claims against Costco or other parties. Costco did not receive a declaration of non-infringement or invalidity, so its exposure to US8402099B2 is not legally resolved. Companies in similar technology sectors should treat this as an open risk.
US8402099B2 (application no. US12/675046) claims a method for carrying out multimedia communications over network protocols, specifically TCP/IP and UDP. These protocols underlie most internet-based voice, video, and data communication systems. The patent’s method claims could potentially apply to a wide range of products and platforms that transmit multimedia content over IP networks.
The public record does not disclose the reason for the early dismissal. Possible explanations — none of which can be confirmed from available documents — include an out-of-court licensing agreement, a strategic decision to pursue other targets, or insufficient evidence to proceed. The pre-answer timing means no discovery had occurred and no formal defense was filed.
Ramey LLP, which represented Random Chat, is a Texas-based firm known for high-volume patent assertion litigation in the Western District of Texas. The firm’s involvement is consistent with a structured enforcement campaign model. Practitioners monitoring patent risk in the TCP/IP multimedia space should track Ramey LLP filings involving US8402099B2 and related patents for signs of continued or expanded assertion activity.
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