Mercedes-Benz USA, LLC v. Yechezkal Evan Spero

Mercedes-Benz USA, LLC (MBUSA), a U.S. subsidiary responsible for the import, distribution, marketing, and customer service of Mercedes-Benz vehicles, is the petitioner in this Inter Partes Review (IPR). MBUSA is an operating company within the automotive industry, and it frequently utilizes IPRs as a defensive strategy against patent infringement lawsuits. The patent owner and defendant is Yechezkal Evan Spero, identified as an individual inventor and patent holder. Spero is associated with "Off-Market Consultants" in real estate and has a history of asserting patents, particularly against automotive companies, suggesting he operates as a Non-Practicing Entity (NPE) or Patent Assertion Entity (PAE) seeking to monetize his intellectual property through licensing or litigation.

This IPR, IPR2023-01027, targets US Patent 10,894,503, titled "Method and system for operating a vehicle based on driver awareness." The patent generally describes a method for automatically determining a driver's level of awareness and operating the vehicle based on this determination. This technology is relevant to adaptive and sensor-driven automotive systems, particularly in the context of advanced driver-assistance systems (ADAS) and autonomous vehicle development. The IPR was filed by Mercedes-Benz USA, LLC in response to an underlying patent infringement lawsuit, Torchlight Techs. LLC v. Daimler AG et al., Civil No. 1:22-cv-00751 (D. Del.), filed on June 7, 2022, which asserted patents owned by Spero against Mercedes-Benz's parent company and others.

The procedural posture of this case is an Inter Partes Review before the Patent Trial and Appeal Board (PTAB), a judicial body within the U.S. Patent and Trademark Office (USPTO). The case has reached a Final Written Decision. The PTAB serves as a critical venue for challenging the validity of issued patents, offering a potentially faster and more cost-effective alternative to district court litigation. This case is notable due to the assertion patterns of Yechezkal Evan Spero, an individual or NPE actively litigating patents against major automotive manufacturers. Both Mercedes-Benz and Volkswagen have filed multiple IPRs challenging Spero's patents, indicating a concerted industry effort to address these assertions in the rapidly evolving field of automotive technology. Related appeals concerning Spero's patents have also been seen at the Court of Appeals for the Federal Circuit.

Mercedes-Benz USA, LLC filed an Inter Partes Review (IPR) petition, IPR2023-01027, against patent owner Yechezkal Evan Spero, challenging the patentability of U.S. Patent 10,894,503. The IPR proceeding, which took place before the Patent Trial and Appeal Board (PTAB), has concluded with a Final Written Decision and subsequent appeal to the Federal Circuit.

Here is a chronological overview of the key legal developments and outcome:

• IPR Petition Filing (2023-06-06): Mercedes-Benz USA, LLC, as the petitioner, filed the IPR petition challenging the claims of U.S. Patent 10,894,503.
• Institution Decision (2024-01-17): The PTAB decided to institute the Inter Partes Review, indicating that Mercedes-Benz had shown a reasonable likelihood of prevailing on at least one challenged claim.
• Final Written Decision (2025-01-16): The PTAB issued its Final Written Decision for IPR2023-01027. While the specific details of the decision regarding which claims were found unpatentable are not explicitly detailed in the provided snippets, the subsequent appeal by the patent owner, Yechezkal Evan Spero, indicates that the decision was adverse to Spero's patent interests.
• Appeal to the Federal Circuit (Post 2025-01-16): Yechezkal Evan Spero, the patent owner, appealed the PTAB's Final Written Decision to the U.S. Court of Appeals for the Federal Circuit. This appeal likely covered multiple IPRs, with Federal Circuit case numbers 2025-1306, 2025-1307, and 2025-1473. Frank A. Angileri of Brooks Kushman PC represented Spero, while Damon M. Lewis of Hogan Lovells US LLP represented Mercedes-Benz USA, LLC.
• Federal Circuit Judgment (2026-05-14): The Federal Circuit issued a Per Curiam judgment, affirming the PTAB's decision under Rule 36. This means the Federal Circuit upheld the PTAB's ruling without issuing a full precedential opinion.
• Petition for Rehearing En Banc (2026-06-15): Following the Federal Circuit's affirmance, Appellant Yechezkal Evan Spero filed a Combined Petition for Panel Rehearing and Rehearing En Banc. This motion sought a review of the Federal Circuit's decision by the original panel or by the full court. The questions presented in the petition concerned whether the PTAB violated 35 U.S.C. § 316(e) by failing to address the sufficiency of the petitioner's evidence before finding a claim obvious, whether a patent owner's arguments can shift the burden of proving obviousness, and whether the PTAB violated the Administrative Procedure Act by reaching contradictory findings in parallel proceedings.

As of the current date (2026-07-08), the case's final disposition rests on the outcome of the petition for rehearing at the Federal Circuit, though the PTAB's decision was affirmed.

Mercedes-Benz USA, LLC, the petitioner in IPR2023-01027, was represented by counsel from Hogan Lovells US LLP. While the specific docket for IPR2023-01027 was not directly retrieved showing counsel appearances, Federal Circuit records for appeals stemming from related IPRs filed by Mercedes-Benz USA, LLC against Yechezkal Evan Spero list the following attorneys as representing Mercedes-Benz USA, LLC (Appellee in the appeal):

• Damon M. Lewis
  • Role: Lead Counsel (argued for appellee in Federal Circuit appeal)
  • Firm: Hogan Lovells US LLP, Washington, D.C.
  • Experience: Mr. Lewis is a partner at Hogan Lovells and focuses on patent litigation, post-grant proceedings before the PTAB, and intellectual property counseling. His practice often involves complex technology cases, particularly in the automotive and high-tech sectors.
• Celine Jimenez Crowson
  • Role: Counsel
  • Firm: Hogan Lovells US LLP, Washington, D.C.
  • Experience: Ms. Crowson is a partner at Hogan Lovells, specializing in intellectual property litigation, including patent infringement and inter partes reviews. She has experience representing clients in various technology fields.
• Joseph James Raffetto
  • Role: Counsel
  • Firm: Hogan Lovells US LLP, Washington, D.C.
  • Experience: Mr. Raffetto is a partner at Hogan Lovells with a practice focused on intellectual property litigation, including patent litigation and PTAB proceedings. He represents clients in diverse industries.
• Nicholas Rotz
  • Role: Counsel
  • Firm: Hogan Lovells US LLP, Washington, D.C.
  • Experience: Mr. Rotz is an attorney at Hogan Lovells whose practice includes patent litigation and post-grant proceedings before the PTAB.

Mercedes-Benz USA, LLC is a frequent participant in PTAB cases, having filed the most PTAB cases among major automakers in 2023, often utilizing IPRs to challenge patents asserted by non-practicing entities (NPEs). The company's in-house intellectual property team also manages its patent portfolio and assesses third-party intellectual property rights.

Yechezkal Evan Spero, the defendant in IPR2023-01027, was represented by attorneys from Brooks Kushman P.C. in the related appeal to the Federal Circuit (Case No. 2025-1470, concerning IPR2023-01027 and IPR2023-01026). These attorneys also have extensive experience in PTAB proceedings for patent owners.

The counsel of record for Yechezkal Evan Spero are:

• Frank A. Angileri

  • Role: Lead Counsel (in related Federal Circuit appeals, and Co-Chair of the firm's Post-Grant Proceedings practice).
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: Focuses on intellectual property litigation and post-grant proceedings, with over 30 years of experience trying patent, trademark, trade secret, and copyright cases in federal courts and the Federal Circuit. He has successfully represented clients in numerous IP rights proceedings, including obtaining final written decisions from the PTAB holding patent claims unpatentable.

• Sangeeta G. Shah

  • Role: Counsel (President and CEO of Brooks Kushman, Co-Chair of the firm's Post-Grant Proceedings practice group).
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: Has over 20 years of experience in intellectual property litigation, prosecution, and counseling, with a special focus on post-grant challenges and patent opinions. She leads teams to challenge and defend patents using post-grant challenges.

• John M. Halan

  • Role: Counsel.
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: Specializes in high-stakes intellectual property litigation, including patent, trade secret, and related commercial litigation, with considerable experience handling matters before the PTAB, including inter partes reviews and appeals to the Federal Circuit.

• Thomas A. Lewry

  • Role: Counsel.
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: An experienced patent litigator with over 40 years of experience in intellectual property litigation, having tried cases in federal and state courts across a variety of technology areas.

• Andrew B. Turner

  • Role: Counsel (Co-Chair of the firm's Post-Grant Proceedings practice group).
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: Focuses on post-grant proceedings and patent prosecution, having worked on over 50 IPR proceedings representing both petitioners and patent owners, with experience in appeals to the Federal Circuit.

• Bernard P. Tomsa

  • Role: Counsel.
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: Involved in PTAB proceedings for Yechezkal Evan Spero related to the patent at issue.

• David S. Bir

  • Role: Counsel.
  • Firm: Brooks Kushman P.C., Royal Oak, MI.
  • Experience Note: Involved in PTAB proceedings for Yechezkal Evan Spero related to the patent at issue.

While Sterne, Kessler, Goldstein & Fox P.L.L.C. was mentioned as "Back-Up Counsel" in some IPR filings for Yechezkal Evan Spero, they are also consistently identified as representing Volkswagen Group of America, Inc., an opposing party, in related Federal Circuit appeals involving the same patent. Given this conflict and the clear listing of Brooks Kushman P.C. as counsel for Spero in the direct Federal Circuit appeal for IPR2023-01027, the Brooks Kushman attorneys are identified as the primary counsel of record for the defendant in this matter.