By Paxtyn Merten | Puget Sound Business Journal
A Seattle real estate technology company, led by one of Redfin’s co-founders, is suing the brokerage for alleged patent infringement on its 3D home tour technology.
Online real estate broker Surefield is suing Redfin, as is co-founder and former Redfin executive David Eraker in an individual lawsuit.
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“During the time of this pandemic, like other times of economic distress, businesses that are able to pivot to the needs of the changing market often not only weather the storm of the economic crisis, but actually succeed. A complex issue arises though when competitors enter the market with similar proprietary technology and strategies, that may violate and infringe upon trade secrets and patented methodologies. David Eraker, the co-founder and former executive of Redfin, a Seattle based high tech real estate brokerage, has recently brought a suit against Redfin for an alleged violation of patent relating to Redfin’s virtual home tour technology. Particularly, Redfin’s virtual home tour technology usage has increased substantially in the past few months due to shut down and quarantine caused by the pandemic. Mr. Eraker, after leaving Redfin, began a new company online real estate broker Surefield. Around the time Mr. Eraker and Surefield launched a special virtual home tour program and filed for a patent with the United States Patent and Trademark Office. The issue is months later, Redfin launched its own virtual home tour technology with a company named Matterport. Surefield, as a company filed suit against Redfield and Matterport alleging patent infringement of its patented virtual home tour technology it had released months prior. Mr. Eraker filed another suit directly against Redfin and another company, Madron, for an unrelated patent dispute regarding technology relating to customer interfaces. If Surefield’s allegations are true, it could expose Redfin to substantial liability associated with profits earnings due to the virtual home tour technology. Patent infringement and litigation is a complex area of law that is set forth primarily by federal statute and case law. Generally, patent infringement is either “direct” or “indirect” infringement. Direct versus indirect infringement is differentiated by varying degrees of knowledge of the infringement. Patent infringement matters may be costly, requiring experts to opine on whether or not the infringing product is substantially similar and is actually infringing upon the patent. Further, economic experts are often necessary to substantiate and quantify the harm caused by the infringement. Experienced and competent patent litigators are essential for enforcing the rights of a patent holder, as well as defending companies from costly frivolous patent suits. This matter highlights likely trend that will appear after states reopen from the pandemic. That is, forward thinking and innovative business technologies and strategies that arose as a result of the pandemic, and disputes over ownership of these methodologies. This also highlights the importance of counsel to advise on the formation of entities, termination of key employees, ownership of intellectual rights during the employees’ tenure, as well as well written and consistent employee procedures and protocols.” ~ Kenny Ho, Attorney at Rose Law Group
