Shopify owes $40 million in web-technology patent case, jury says

The logo of Shopify is seen. REUTERS/Chris Wattie

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  • Jury finds Shopify’s website-building tools infringe Express Mobile patents
  • Express Mobile has sued dozens of companies over same patents

(Reuters) – E-commerce platform Shopify Inc owes patent holder Express Mobile Inc $40 million for infringing three patents related to mobile-website technology, a Delaware jury said in a verdict made public Thursday.

The federal jury on Wednesday awarded Express Mobile a lump sum and rejected Shopify’s argument that the patents are invalid. Express Mobile has sued dozens of tech companies for allegedly infringing the same and other patents, including in ongoing cases against Google, Meta and Amazon.

A Shopify spokesperson said Thursday that the company was “disappointed and surprised” by the verdict but is confident that it does not infringe and “intends to pursue the matter in the district court or, if necessary, on appeal.”

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Express Mobile attorney Jay Nuttall of Steptoe & Johnson said Thursday that the verdict showed the company’s technology is “an important and valuable improvement that was being used by Shopify.”

Express Mobile owns patents related to internet and mobile technology developed by the company’s founder, former IBM engineer Steven Rempell. The company argued that Shopify’s website-building tools infringed its patents, which relate to software for providing content to mobile devices.

It sued Shopify in 2019 after Shopify asked the Delaware court for a declaration that it did not infringe.

The case is Shopify Inc v. Express Mobile Inc, U.S. District Court for the District of Delaware, No. 1:19-cv-00439.

For Shopify: Daralyn Durie of Durie Tangri

For Express Mobile: Jay Nuttall, John Abramic and Kate Johnson of Steptoe & Johnson

(NOTE: This story has been updated with comment from an Express Mobile attorney.)

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Blake Brittain

Thomson Reuters

Blake Brittain reports on intellectual property law, including patents, trademarks, copyrights and trade secrets. Reach him at blake.brittain@thomsonreuters.com

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