Carvana, LLC v. International Business Machines Corporation

CourtDistrict Court, S.D. New York
DecidedJanuary 27, 2026
Docket7:23-cv-08616
StatusUnknown

This text of Carvana, LLC v. International Business Machines Corporation (Carvana, LLC v. International Business Machines Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carvana, LLC v. International Business Machines Corporation, (S.D.N.Y. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK

CARVANA, LLC,

Plaintiff, No. 23-CV-8616 (KMK) v. OPINION & ORDER INTERNATIONAL BUSINESS MACHINES CORPORATION,

Defendant.

Appearances: Andrew Hensley, Esq. Brian W. LaCorte, Esq. Mitchell Lee Turbenson, Esq. Ballard Spahr LLP Phoenix, AZ Counsel for Plaintiff Doyle Tuvesson, Esq. Marc Segal, Esq. Ballard Spahr LLP Philadelphia, PA Counsel for Plaintiff Jeffrey C. Morgan, Esq. Ballard Spahr LLP Atlanta, GA Counsel for Plaintiff Padmaja Chinta, Esq. Dunnington Bartholow & Miller LLP New York, NY Counsel for Plaintiff

Samuel J. Erlanger, Esq. Wendy R. Stein, Esq. Ballard Spahr LLP New York, NY Counsel for Plaintiff Karim Zeddam Oussayef, Esq. Tamir Packin, Esq. Asim Zaidi, Esq. Jordan Nathaniel Malz, Esq. Lindsey Miller, Esq. Michael Hilyard, Esq. William N. Yau, Esq. Desmarais LLP New York, NY Counsel for Defendant

KENNETH M. KARAS, United States District Judge: Plaintiff Carvana, LLC (“Plaintiff” or “Carvana”) brings this Action seeking a declaration of non-infringement regarding two patents owned by Defendant International Business Machines Corporation (“IBM” or “Defendant”): U.S. Patent Nos. 7,543,234 (the “’234 Patent”) and 7,631,346 (the “’346 Patent”).1 (See Compl. (Dkt. No. 1).) Defendant, in turn, brings counterclaims for infringement of U.S. Patent No. 7,702,719 (the “’719 Patent”), the ’234 Patent and the ’346 Patent. (See Am. Answer (Dkt. No. 63).). The Parties have proposed their own construction of the disputed claims in the ’234, ’346, and ’719 Patents pursuant to Markman v. Westview Instruments, Inc., 517 U.S. 370 (1996). The Court addresses the disputed terms below. I. Background A. Factual Background 1. The ’234 Patent The ’234 Patent is titled: “Stacking Portlets in Portal Pages.” (Carvana Claim Construction Stmt. (“Carvana Br.”) Ex. 8 (“’234 Patent”) 2 (Dkt. No. 122-9).) The ’234 Patent

1 Carvana originally sought declaratory judgment of its non-infringement of U.S. Patent No. 7,072,849, (see Compl.), but has since voluntarily dismissed that claim, (see Dkt. No. 54). “relates generally to graphical user interface,” and in particular “an improved method, apparatus, and computer usable code for customizing portal pages.” (Id. col. 1 l. 6–9.) The invention provides for a “portal” which is “comprised of a plurality of portlets.” (Id. col. 1 l. 42–43.) “Portlets,” in turn, “access[] hardware and software to gather data.” (Id. col. 1 l. 44–45.) “Portlets” can be stacked into a portal if they share “one or more of the same hardware, software,

content type, or markup.” (Id. col. 1 l. 46–48.) “If the subset of portlets is stackable” and a user decides to stack them, then the portlets are “stacked such that the stack of portlets presents a first portlet and a control for selecting a second portlet from within the subset of portlets that is not currently presented.” (Id. col. 1 l. 51–55.) 2. The ’346 Patent The ’346 Patent is titled: “Method and System for a Runtime User Account Creation Operation Within a Single-Sign-On Process in a Federated Computing Environment.” (Carvana Br. Ex. 1 (“’346 Patent”) 2 (Dkt. No. 122-2).) It purports to provide a “method, system, apparatus, and computer program product” that “support[s] computing systems of different

enterprises that interact within a federated computing environment.” (‘346 Patent 2.) “According to the ’346 patent, when a user navigates domains within the Internet by accessing resources at the different domains, the user may be subjected to multiple user authentication requests, which can slow the user’s navigation.” Ebates Performance Mktg., Inc. v. Int’l Bus. Mach. Corp., No. IPR2022-00646, 2023 WL 7358027, at *2 (P.T.A.B. Oct. 11, 2023). “The ’346 patent describes a federated computing environment in which entities may provide a user with a single-sign-on (SSO) experience, doing away with the frustration of having to authenticate to multiple domains for a single transaction.” Id. 3. The ‘719 Patent The ’719 Patent is titled: “Methods and Apparatus for Reducing the Number of Server Interactions in Network-Based Applications using a Dual MVC Approach.” (Carvana Br. Ex. 5 (“’719 Patent”) 2 (Dkt. No. 122-6).) The ‘719 Patent’s invention is a dual-Model-View- Controller (“MVC”) model. (See id.) “In [the MVC] paradigm, the ‘Model’ contains the data,

rules, and algorithms affecting the data. The ‘View’ is a screen or window representation of a subset of the model that the application chooses to display. The ‘Controller’ is the logic that processes user requests, such as pressing a button. The Controller causes the Model to be changed and/or the View to be refreshed.” (Id. col. 1 l. 41-46.) The ‘719 Patent’s central innovation is its “dual-MVC approach, in which a subset of the application's Model-View- Controller reside on the client, and the full Model-View-Controller and View-Generating-Logic reside on the server, thereby reducing the number of required server interactions.” (Id. col. 2 l. 42–47.) B. Procedural Background

On September 29, 2023, Carvana brought this action against IBM, seeking declaratory relief under 28 U.S.C. §§ 2201–2202 of its non-infringement of three of IBM’s patents. (See Compl. (Dkt. No. 1).) IBM filed its answer along with counterclaims for infringement on December 4, 2023. (See Answer (Dkt. No. 36).) Carvana originally sought declaratory judgment of its non-infringement of U.S. Patent No. 7,072,849, (see Compl. (Dkt. No. 1)), but has since voluntarily dismissed that claim, (see Dkt. No. 55). Thus, the patents that Carvana seeks a declaration of non-infringement for are the ’234 Patent and ’346 Patent. On April 2, 2024, IBM amended its complaint to add a patent infringement claim against Carvana for its alleged infringement of the ’719 Patent. (See Am. Answer (Dkt. No. 63).) Thus, the remaining patents at issue in this action are the ’234, ’346, and ’719 Patent. The Court held an initial conference on December 25, 2023, (see Dkt. No. 37), and set a case management plan, (see Dkt. No. 39). Pursuant to a briefing schedule set by the Court, (see Dkt. No. 82), the Parties briefed claim construction statements, (see Not. of Joint Claim

Construction Stmt., Ex. A (“Joint Stmt.”) (Dkt. No. 105-1); IBM Claim Construction Br. (“IBM Br.”) (Dkt. No. 110); Carvana Claim Construction Br. (“Carvana Br.”) (Dkt. No. 122); IBM Rep. Claim Construction Br. (“IBM Rep. Br.”) (Dkt. No. 132); Carvana Sur-Reply Claim Construction Stmt. (“Carvana Rep. Br.”) (Dkt. No. 133)), and the Court held a Markman hearing on November 20, 2024, (see Jul. 16, 2024 Dkt. Entry.) On January 31, 2025, Carvana sought inter partes review (“IPR”) of the ’719 Patent with the U.S. Patent and Trademark Office’s (the “PTO”) Patent Trial and Appeal Board (the “PTAB”). (See Dkt. No. 141.) Carvana then sought a stay in light of the pending IPR and in light of an ongoing appeal of the ‘346 Patent before the Federal Circuit. (See id.) The Court

provided the Parties an opportunity to brief the issue. (See Dkt. Nos. 147, 148, 150, 151, 152.) On July 18, 2025, the Parties informed the Court that Carvana’s IPR petition had been denied by the PTAB. (See Dkt. No. 154.) On August 5, 2025, Carvana notified the Court that the appeal of the ‘346 Patent was scheduled for September 2025. (See Dkt. No. 155.) On September 3, 2025, the Court granted Carvana’s Motion to Stay pending a determination by the Federal Circuit of the validity of the ‘346 Patent. (See Dkt. No. 156.) The Federal Circuit then ruled in Int’l Bus’n Mach. Corp. v. Zillow Grp., Inc. et al., 160 F.4th 1360, 1362 (Fed. Cir.

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