Nest thermostats' energy saving feature costs Google $20 million in patent infringement case
At the beginning of this year, Google wasforced to change how Nest speakers workfollowing a Trade Commission ruling that found it guilty of infringing on Sonos' patents. Just a month later, the company is at the receiving end of a patent infringement case related to Nest products again, though this time it has to do with the tech used in Nest thermostats. A West Texas jury has ordered Google to pay $20 million afterfinding it guiltyof infringing on one of EcoFactor’s patents.
In its lawsuit related to theinfringement of two patents, EcoFactor demanded $5.16 for every Nest thermostat unit sold between January 2020 and January 2022, which it estimated would be around $29 million. Google, however, argued that it independently developed the energy-saving features in Nest, and even in case of a patent violation, a royalty amount of anything over $0.22 per unit was too high. Nonetheless, the jury decided on a figure just over $20 million for damages, including units that would be sold in the future. They found Nest thermostats to infringe on only one patent related to the Early-On feature, which automatically adjusts the HVAC system based on the weather and user schedule.
Founded in 2006, EcoFactor is based out of Palo Alto, California. It is a “leader in smart home energy management services” and helps reduce energy bills and improve efficiency by using its “patent big-data analytics and machine learning algorithms.” The company does not sell its services directly to consumers; instead, they are offered through utilities, HVAC companies, and broadband providers. It first sued Google for patent infringement in 2020, and it also has cases against Amazon, Ecobee, Vivint, and others for the same issue in West Texas.
A Google spokesperson confirmed toReutersthat it would appeal against the verdict and the ruling won’t change the behavior of its Nest thermostats.
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