Neldon Johnson, president and chief executive officer, International Automated Systems, Inc. announced Tuesday that the company has filed a civil action complaint in the United States District Court for the District of Utah Central Division against The Kroger Company alleging patent infringement arising under the patent laws of the United States, and more specifically, under Title 35, U.S.C., section 271, 281, 283, 284, and 285.
“We are disappointed in what we believe to be an intentional disregard of IAS’s U.S. patent rights. After reasonable notice to Kroger, we believe that by its continued use of the U-Scan system, we are left no choice but to pursue our rights under the law,” said Johnson. “We are confident in our ability to establish ourselves as the first to develop an automated checkout lane that specifically and individually identifies each item by its recorded weight.”
The automated express lane industry offers an estimated $3 billion in equipment sales. This calculation is based upon the assumption that only 25-30% of the total checkout lanes of each store could be automated. Since the IAS automated system gives the option of toggling between self-service and full-service with a simple push of a button, 100% of a supermarket’s checkout lanes could be replaced with the IAS system. Hence, the company’s potential market could be expanded three- or four-fold.
In addition, IAS’s system is designed to facilitate a fully automated store. The company estimates, based upon projected cost reduction, that this format can profit in approximately 17,000 new locations throughout the United States where a traditional supermarket would find it cost-prohibitive.Details