Finnegan Scores Another Victory for BMW Group After 13-Year Litigation

FOR IMMEDIATE RELEASE
November 8, 2024

After 13 years of litigation, BMW Group claims victory over Non-Practicing Entity, Beacon Navigation. The U.S. District Court for the Eastern District of Michigan granted summary judgment of non-infringement on all asserted claims of U.S. Patent No. 5,862,511 (the "'511 patent"), effectively ending this decade-long battle with Beacon.

This saga began in October 2011 when Beacon filed suit against BMW (along with 50 other automotive manufacturers and distributors) in the U.S. Court for the District of Delaware, asserting patents directed to improved navigation systems: U.S. Patent Nos. 6,374,180; 6,029,111; and 5,862,511. Beacon also filed an investigation in the ITC in December 2011.

BMW moved to stay the Delaware case pending the parallel ITC Investigation, which Beacon unilaterally moved to terminate in the midst of discovery. Next, BMW AG filed a motion to transfer venue and the case was then transferred to the Eastern District of Michigan.

In the Eastern District of Michigan, the case was stayed pending 6 reexaminations at the Patent Office filed by, inter alia, BMW AG and other defendants. Following the last reexamination, the stay was lifted, and Beacon filed an amended complaint asserting claims 1 and 3 of the '511 patent-the only claims to survive the reexaminations. Believing that the remaining claims were invalid and not infringed, BMW Group remained the only automaker that refused Beacon's settlement demands.

Throughout the litigation, Beacon relied heavily on the NPE playbook for forcing settlement through litigation costs. Unfazed, BMW Group stood alone in refusing to accept Beacon's exorbitant settlement demands, resulting in a last-minute effort by Beacon to gather sufficient evidence to escape summary judgment. Over a ten-year period, Beacon failed to conduct discovery, or gather any evidence of infringement beyond the visual observation of the accused navigation system during a test drive in 2011. Finally, after the close of fact discovery, and ignoring the Court's deadlines, Beacon scrambled to review the accused products.

Following a review of the accused products, Beacon's expert submitted an expert report-alleging infringement based entirely on lines of software code. But, the expert report consisted entirely of conclusory statements, attempting to connect the software code to the patent's narrow claim limitations. But, it was clear from the software code that the accused navigation systems at BMW did not infringe, which the expert for Beacon had to essentially concede during his extensive deposition.

In the end, Beacon's protracted litigation efforts at the ITC, U.S. District Court for the District of Delaware, and the U.S. District Court for the Eastern District of Michigan failed. The Court in E.D.MI. saw through Beacon's forced attempts to find infringement based on the supplier's source code and granted Summary Judgment of Non-Infringement, defeating Beacon's efforts to extract any payment from BMW Group.

Reinhold Diener, VP of Intellectual Property for BMW Group, said, "BMW Group has yet again fought off the meritless allegations of a patent assertion entity without giving them a cent."

Lionel Lavenue, Finnegan partner and counsel for BMW, said, "At Finnegan, we are pleased to stand together with BMW Group against patent assertion entities' efforts to monetize low-quality patent claims lacking factual or legal basis."

This case is Beacon Navigation GMBH v. Bayerische Motoren Werke AG et al., No. 2:13-cv-11410 (E.D.MI.).