AOPA Sued Over Flight Planning Patent Squabble

OK... its been kind of quiet on the FlightPrep front... but a suit that the company's bosses threatened in 2010 appears have come back to life, under new names, but with the same players behind the scenes... and the same lawyer leading the charge.

As you may recall, when operating under the corporate guise of FlightPrep, its principles Stenbock & Everson, attempted to send bills/demands to a number of flight planning businesses working on the web claiming that their efforts violated their patent... a patent that had gone through multiple iterations and machinations before finally being granted. A number of the most powerful players in the business were threatened with legal action and the industry DID NOT take kindly to the whole thing... at all. In short order, FlightPrep became an Aero-Pariah (and after some bizarre threats to ANN for our coverage of the event (including one particularly weird scenario that caused us to call the Feds and another really amusing exchange with Jeppesen), the whole mess kinda faded away.

That was then... this is now.

Sigh...

ANN has learned that SD Holdings LLC, a Washington corporation,  has filed a civil action against the Aircraft Owners and Pilots Association (AOPA), Inc., and demanded a jury trial. The suit was filed on behalf of SD Holdings by Peter Haas-- who you also may remember form his appearances in the FlightPrep debacle some many months ago and claims that the action is a Complaint For Patent Infringement.

Haas claims that, "AOPA has committed acts of patent infringement in this judicial district, by allowing their member pilots access to, via networked computer systems,and continues to commit acts of patent infringement in this judicial district by offering to sell and selling the FlyQ online flight planning system."

Additional details state that, "SD Holdings is the lawful owner and assignee to the entire title and rights granted under the ‘098 Patent and the ‘512 Patent..."

SD smells money and sets out with the position that, "On September 1st, 2010 AOPA wrote a response acknowledging the ‘098 Patent and denying infringement thereof.... On information and belief, AOPA has since at least the dates U.S. Patent No.7,640,098 (“the ‘098 Patent”) and U.S. Patent No. 8,447,512 (the ‘512 patent) issued an until present approximately 400,000 members.... On information and belief, AOPA’s members have access to and AOPA distributes and offers to its member, and its members in fact use an interactive online flight planner. The retail price for an interactive online flight planner licensed under U.S. Patent No. 7,640,098 (“the ‘098 Patent”) and U.S. Patent No. 8,447,512 (the ‘512 patent) is $150.00. A reasonable royalty for the product of paragraph 22 is 10% or 15.00 per user."

Add that up, folks... 6 million bucks. And right after Craig Fuller (who augmented the FlyQ program via a sweetheart deal with Seattle Avionics -- a company with NOT the best rep in the business) beat feet and left town.

Eeeek. Welcome to AOPA, Mark!

But wait... it gets worse (this is a FlightPrep legacy, folks... what else would it do?). After a bunch of legalese, SD Holdings sets forth the damages it feels it is owed... and as usual, they're pretty greedy about it.

Here comes the legalese...

Plaintiff SD Holdings seeks for this Court to enter judgment against AOPA as follows:

a) Declaring that AOPA has infringed at least one claim of the '098 Patent by the internet based flight planning product(s) provided by AOPA; 

b) Declaring that AOPA has infringed at least one claim of the '512 Patent by the internet based flight planning product(s) provided by AOPA;

c) Awarding SD Holdings damages of no less than a reasonable royalty arising from AOPA’s infringement of the '098 Patent and/or the ‘512 patent;

d) Awarding SD Holding no less than $6,000,000 as a reasonable royalty arising from AOPA’s infringement of the ‘098 Patent and/or the ‘512 patent for each year such infringing activity took place;
 
e) Awarding SD Holdings no less than $60,000,000 as lost profits arising from AOPA’s infringement of the '098 Patent and/or the ‘512 patent for each year such infringing activity took place;

f) Declaring that the AOPA willfully infringed the '098 Patent;

g) Awarding SD Holdings prejudgment and post-judgment interest;

h) Declaring this case to be exceptional and awarding attorney fees and costs to SD Holdings pursuant to 35 U.S.C. §285 or as otherwise permitted by law;

i) For an order preliminarily and permanently enjoining AOPA, its officers, directors, shareholders, agents, servants, employees and attorneys, and all entities and individuals acting in concert with them or on their behalf, from infringing the ‘098 Patent and/or the ‘512 patent; and

j) Awarding such other costs and further relief as the Court may deem just and proper under the circumstances.

SO... they want $6M per year of alleged infringement... AND another $60 Million bucks, to boot.

ANN is looking into the matter and has calls into the respective parties (who, in the past, have rarely given substantive info) but we must note some interesting details... including the fact that the suit was filed in late July and we've not heard a peep from AOPA about this... which one might naturally assume would be of interest to its membership -- though AOPA often has a somewhat limited idea of what it thinks its members need to know. We have not heard from AOPA, as yet, and expect that this is a topic that will be part of the conversation at AOPA's last summit, next week in Texas.

More info to come.

FMI: www.aopa.gov, www.scribd.com/doc/156963774/SD-Holdings-v-Aircraft-Owners-and-Pilots-Association