U.S. government owes over $100 million for TSA’s patent infringement

• summary
• Law firms
• Associated documents

• TSA uses a patented process to recycle trays at major airports
• Had previously turned down a deal with SecurityPoint Holdings
• The court says SecurityPoint is due at least $ 103 million in license fees

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(Reuters) – The U.S. government owes at least $ 103 million to a patent holding company for the Transportation Security Administration’s misuse of its technology for handling trays at airport security checkpoints, a Washington, DC-based federal court said.

In a statement released on Friday, the US Federal Court of Justice said the TSA had used SecurityPoint Holdings Inc.’s patented methods for most of its security checks at major US airports since 2008 without compensation.

The US Department of Justice, which represented the US government, declined to comment.

The founder of SecurityPoint, based in St. Petersburg, Florida, Joseph Ambrefe, offered the TSA a license for his patent in 2005 in exchange for the exclusive right to advertise on the trays at US airports.

The TSA had successfully tested SecurityPoint’s technology and equipment, but rejected SecurityPoint’s offer.

The court said the TSA began using the same method with its own equipment at most or all of the airports under its control later that year, and SecurityPoint sued the US government for patent infringement in 2011.

The government acknowledged that it has used the technology at 10 airports since 2008, including Dallas / Fort Worth, Boston Logan, Phoenix Sky Harbor, and all three major airports in the Washington, DC area.

The court dismissed the government’s arguments that SecurityPoint’s patent was invalid in 2015, leaving questions about the extent of the government’s violation and the amount of compensation claims.

Following last year’s trial, senior US Judge Eric Bruggink of the Court of Federal Claims said in an opinion unsealed Friday that the government owed SecurityPoint $ 103.6 million in royalties from 2008 to the date of the opinion.

Bruggink said the TSA’s checkpoint design guides, staff and expert testimonies showed that SecurityPoint’s tray recycling method was “universally used as the standard method for all lanes” at major US airports, with a few exceptions.

The court award was lower than SecurityPoint’s $ 618 million royalty request, but higher than the government’s proposed lump sum of $ 12.6 million.

Bruggink also said SecurityPoint should receive additional damages based on the interest accrued during the breach, “given the length of the unreimbursed breach.”

Bradley Graveline, attorney for SecurityPoint at Sheppard Mullin Richter & Hampton, said in a statement that he and his client were satisfied with the decision and “historic outcome” that they expect to be “the greatest damages for patent infringement of its kind.” is against the government. Laura Burson from Sheppard Mullin also led the SecurityPoint legal team.

The case is SecurityPoint Holdings Inc v United States, US Federal Court, No. 1: 11-cv-00268.

For SecurityPoint: Bradley Graveline and Laura Burson from Sheppard Mullin Richter & Hampton

For the US Government: Gary Hausken, Department of Justice

Blake Brittain

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