Small Company Files Patent Infringement Suit Accusing Honeywell of Willfully Appropriating Smart Thermostat Technology and False Advertising in Billion-Dollar Industry

Allure Energy, a pioneer in smart home technology, filed a patent infringement lawsuit against Honeywell today, alleging that Honeywell’s Lyric™ product willfully infringes the patented proximity control technology that Allure Energy developed several years ago. The technology at issue was developed by Allure Energy and is used in its smart thermostat product known as EverSense®, released in 2013. The complaint was filed in the U.S. District Court for the Western District of Texas and also includes a false advertising claim under the Lanham Act.

Allure Energy, Inc., based in Austin, Texas, was founded in 2009 and has secured numerous patents covering its technology. With the idea that the household thermostat – traditionally among the most utilitarian but least glamorous devices in the home – could become something much more, Allure Energy focused intensely on developing a smart thermostat, one which avoids the need for manual programming, but instead adjusts temperature settings automatically. The company developed and patented key features for the smart thermostat, including automated proximity control by geofencing, and took its idea even further by building into its design the capability for its thermostat to function as a hub for the connected home. Allure Energy received accolades and awards for its advancements in these energy-saving technologies: it was the 2013 Good Design Award winner, the 2013 Spark Product Design Award finalist, and a 2014 International CES Innovations Design and Engineering Awards honoree.

Allure Energy “is able to compete with much larger companies only because of its cutting-edge technology – its innovations and technological advancements help level the playing field. Its technology and reputation for innovation allow Allure Energy to serve well-regarded retailers throughout the United States which offer its EverSense® product. Allure Energy depends on patent protection to effectively compete and build a business,” as stated in the lawsuit.

“When I founded Allure, our mission as a company was to change the way people save energy in the home without having to overthink it. We accomplished that goal and protected our technology,” said founder and CEO Kevin Imes. “As a small company pioneering this important space, it’s critical that we protect our intellectual property and enforce our exclusive rights to this technology under the U.S. patent laws. Up against global giants with greater resources and reach, our competitive advantage is our cutting-edge technology, on which we cannot allow others to have a free ride.”

The technology at issue can detect whether users are home or away through their smartphones and automatically adjust its temperature settings based on the users’ distance from the home. The technology is a critical element of the emerging connected home industry, enabling home appliances, heating and air conditioning, and security systems to be controlled based on a user’s presence at or distance from the home.

According to the lawsuit, Honeywell was aware of Allure Energy’s patents and technology before its introduction of Lyric™, a smart thermostat that uses Allure Energy’s technology. At a January 2012 technology tradeshow in San Antonio, Texas, Honeywell asked for a demo of EverSense®, and later ordered samples of the product when it became available.

“We thought Honeywell was interested in a business relationship. We were aware that Honeywell’s product offerings had fallen behind consumers’ increasing desire for a connected smart thermostat. We thought our technology could be used to help Honeywell finally enter the ‘smart’ thermostat market,” Imes said.

Instead, Honeywell launched its Lyric™ product in the summer of 2014, incorporating key aspects of Allure Energy’s patented technology, and advertising itself as the only thermostat to use geofencing technology to track smartphones – a false claim, according to the lawsuit, that serves to damage Allure Energy and unfairly promote Honeywell’s product.

The lawsuit seeks an injunction to preclude Honeywell from further use of Allure’s patented technology and to stop its false advertising, as well as damages and related remedies.

According to Allure Energy’s complaint, “Allure Energy believes that fair and legitimate competition benefits consumers and the industry as a whole. But small companies – the largest employers in the U.S. – are at risk if their innovations can be taken in disregard of patent and other intellectual rights and then be falsely promoted by companies with the wealth and resources to dominate the market through unfair and deceptive competition. This lawsuit is about Allure Energy’s very survival as a commercial enterprise and its ability to compete in the sale of the remarkable products it innovated.”

According to Imes, “it’s also about protecting consumers and allowing small companies, such as ours, to continue to develop new technologies and bring the best products to the marketplace.”

Allure Energy is represented by Courtland L. Reichman, Douglas A. Cawley, Kat Li, and Bahrad A. Sokhansanj of McKool Smith; and John S. Artz and Michelle L. Alamo of Dickinson Wright PLLC.

Allure Energy has been awarded 21 patents directed to various inventions in the field of learning thermostats and proximity detection, with another 34 patent applications pending. The patents Allure Energy has asserted in the lawsuit are:

• United States Patent No. 8,626,344, issued for an invention entitled “Energy Management System and Method,” and
• United States Patent No. 8,457,797, issued for an invention entitled “Energy Management System and Method.”

About Allure Energy, Inc.

Based in Austin, Texas, Allure Energy, Inc., is a smart technology provider that develops leading-edge smart solutions that enhance a user’s experience with minimal effort. Allure Energy designs, manufactures, and sells home environment and energy management products, including smart thermostats. For more information, visit its website at www.allure-energy.com.

for Allure Energy, Inc.Zinie Sampson, 804-381-1272zsampson@hellermanbaretz.com