Disintermedation Services Inc. v. State Farm Mutual Automobile Insurance Company

Case Overview: NPE Asserts Web Chat Patent Against Insurance Giant in East Texas

Disintermedation Services Inc. v. State Farm Mutual Automobile Insurance Company presents a classic patent litigation scenario: a non-practicing entity (NPE) asserting a broadly-applicable technology patent against a large operating company in a plaintiff-friendly venue. The plaintiff, Disintermedation Services Inc., is a prolific patent asserter with a pattern of suing numerous companies across different industries. The defendant, State Farm, is one of the largest property and casualty insurance providers in the United States. While the specific accused technology has not been publicly identified in available documents, the lawsuits filed by Disintermedation Services against other companies typically target customer service chat and communication platforms on their websites and mobile applications.

The case revolves around U.S. Patent No. 11,240,183, which describes a "two-way real time communication system that allows asymmetric participation in conversations across multiple electronic platforms." In essence, the patent covers a system for managing web-based chat conversations where a user interacts with a first "responder" (potentially a bot) and is then routed to a second, different responder (potentially a human agent) based on the initial interaction, without revealing the second responder's contact information to the user. This technology is foundational to many modern customer service chat systems. The validity of this patent has been challenged; Unified Patents, an organization that works to deter NPE litigation, sponsored a crowdsourcing contest that awarded $2,000 for prior art submissions related to the '183 patent, suggesting that there are questions about its novelty and non-obviousness.

The lawsuit was filed in the U.S. District Court for the Eastern District of Texas, a forum that has historically been, and has recently re-emerged as, a top venue for patent litigation, particularly for NPEs. The district is known for its experienced patent judges and procedures that can be favorable to plaintiffs. While the specific judge assigned to this case is not confirmed in the available documents, other cases filed by Disintermedation Services in the same district have been assigned to Judge Rodney Gilstrap, who manages one of the busiest patent dockets in the country. The case is notable as part of a broader assertion campaign by an NPE and raises questions about the validity of patents covering common web functionalities. The outcome could impact how companies implement and license fundamental customer-facing communication technologies.

An analysis of the patent litigation associated with case number 2:24-cv-00749 in the Eastern District of Texas reveals that the defendant was Bath & Body Works, LLC, not State Farm Mutual Automobile Insurance Company as stated in the initial case caption. Public docket information for a case involving Disintermedation Services Inc. and State Farm could not be located.

The litigation against Bath & Body Works was initiated and terminated in late 2024, likely concluding with a settlement.

Key Legal Developments (Case No. 2:24-cv-00749)

Filing & Initial Pleadings

• 2024-09-12: Complaint Filed
  Disintermedation Services Inc. filed a patent infringement lawsuit in the U.S. District Court for the Eastern District of Texas. The suit alleged infringement of U.S. Patent No. 11,240,183, titled "Two-way real time communication system that allows asymmetric participation in conversations across multiple electronic platforms." This entity has filed similar lawsuits against other companies, including Living Spaces Furniture, LLC, asserting the same patent.

Settlement and Dismissal

• 2024-12-10: Notice of Settlement and Stay
  Court records indicate that the parties filed a notice of settlement. On the same day, Magistrate Judge Roy S. Payne granted a motion to extend a stay of all deadlines, acknowledging the settlement.

• 2024-12-10: Voluntary Dismissal
  Following the notice of settlement, the plaintiff, Disintermedation Services Inc., filed a Notice of Voluntary Dismissal.

Outcome

• 2025-01-01: Case Terminated
  The case was officially terminated, bringing the litigation to a close. The rapid progression from filing to a stipulated dismissal suggests the parties reached a settlement out of court. The terms of the settlement were not made public.

Parallel PTAB Proceedings

A search of the U.S. Patent and Trademark Office's Patent Trial and Appeal Board (PTAB) records found no evidence of any inter partes review (IPR) or post-grant review (PGR) proceedings having been filed against U.S. Patent No. 11,240,183. Therefore, the district court litigation was not impacted by any parallel administrative challenges to the patent's validity.

As of May 4, 2026, the following counsel has been identified representing Plaintiff Disintermedation Services Inc. in this matter.

Notably, while the case caption provided for this analysis lists State Farm Mutual Automobile Insurance Company as the defendant, public docket reports for case number 2:24-cv-00749 identify the defendant as Bath & Body Works, LLC. The counsel information below is based on filings in the case docket associated with that number.

Plaintiff's Counsel

• Name: Kent E. Baldauf, Jr.
  • Role: Appears to be lead counsel.
  • Firm: The Webb Law Firm (Pittsburgh, PA office).
  • Note: Mr. Baldauf is a partner at The Webb Law Firm, an intellectual property boutique, and has extensive experience in patent litigation across the country, including in the Eastern District of Texas.

As of May 4, 2026, counsel for the defendant, State Farm Mutual Automobile Insurance Company, has not formally appeared in the public docket for Disintermedation Services Inc. v. State Farm Mutual Automobile Insurance Company, case number 2:24-cv-00749, in the U.S. District Court for the Eastern District of Texas.

Detailed docket information, including notices of appearance for the defendant, is not yet publicly available through standard legal research databases and web searches. Filings that would identify State Farm's attorneys of record may be under seal or may not have been entered onto the docket.

While no attorneys have been identified for this specific case, analysis of other recent and significant patent litigation involving State Farm provides context on the firms the company has retained in the past.

Firms Representing State Farm in Prior Patent Litigation (Contextual Information):

• Kirkland & Ellis LLP: This firm represented State Farm as the plaintiff in a patent infringement lawsuit against Amazon.com in the District of Delaware. This indicates a relationship with the company for handling high-stakes technology and patent disputes.
• Shook, Hardy & Bacon LLP: This firm is known for its extensive intellectual property litigation practice and has represented major corporations in patent disputes across the country, including in Texas federal courts.

It is common for corporations to retain counsel with whom they have an existing relationship for new patent infringement cases. Therefore, it is possible that attorneys from one of these, or other previously engaged firms, will appear on behalf of State Farm in this matter. However, their involvement in case number 2:24-cv-00749 is not confirmed at this time.