Audi swings for the (geo) fences with Finnegan

Audi of America was sued in the Eastern District of Michigan based on a patent that was asserted in 36 lawsuits, sweeping in companies from automotive manufacturers to delivery services and cellular providers. While many defendants chose to settle, Audi defended itself by filing a motion to dismiss.

Audi persuaded the court that the asserted claims, which are directed to methods of controlling an entity with an attached transponder (an alleged form of geofencing technology), were ineligible under 35 U.S.C. § 101. The Eastern District of Michigan agreed, finding the patent invalid and dismissing the case with prejudice in the first instance.

For Audi, the result was an unequivocal win—not only ending the suit but decisively invalidating the patent. What began as a defensive stand for Audi became a boon for countless others who faced, or might have faced, the same claims.