AllThingsD » Tony Fadell

Why Honeywell Is Suing Nest Labs

Lauren Goode — Tue, 07 Feb 2012 19:04:38 +0000

Honeywell International filed a patent-infringement lawsuit on Palo Alto-based Nest Labs yesterday, alleging that Nest’s relatively new digital thermostat encroaches on Honeywell’s patented technology.

You might be thinking: A thermostat’s a thermostat … right?

In Honeywell’s view, it’s not so simple. In the complaint, filed in a U.S. district court in Minnesota, the maker of aerospace systems, consumer products and technology solutions identified seven patents it believes Nest Labs infringes on.

Honeywell is also seeking damages from Best Buy, which features and sells Nest’s product in home-energy departments around the U.S. (Best Buy also sells Honeywell programmable thermostats.)

Nest Labs was recently launched by Matt Rogers and Tony Fadell, a former Apple executive who worked on the iPod. Last fall, Nest Labs began selling the Nest Learning Thermostat, a buzzed-about, easily programmable “smart” thermostat that uses the same wheel interface as the original iPod. The device can be controlled from a user’s smartphone, tablet or Web browser, and Fadell has been quoted as saying the Nest will save users up to 30 percent off their utility bills. With Nest, the uncool thermostat suddenly became a hot item.

Nest Labs did not respond to requests for comments on the suit, except to release a statement yesterday, saying they had not yet reviewed the actual filing, and that the company will provide comment once they’ve had the opportunity to review it.

Speaking for Honeywell, Bruce Eric Anderson, the company’s director of external communications, expounded on Honeywell’s statement from yesterday, saying that intellectual property is a “part of what Honeywell is as a company. We have 20,000 engineers that come here every day and it’s about protecting those individuals. This suit is not unique,” Anderson added.

Rather than go through the filing patent by patent, here are a few of the key sticking points of the suit:

First, Honeywell points out that it commercialized the first adjustable thermostat that allowed users to sleep through the night without having to manually turn their furnaces on and off; and that it is a global leader of innovative thermostats, and created the iconic “round” thermostat that’s now featured in the Smithsonian museum collection.

Honeywell goes on to mention more recent innovations, including its Prestige 2.0 Comfort Systems and RedLINK Wireless Comfort Sytems. More on the Prestige in a bit.

In the section titled “Acts Giving Rise to the Action,” the Honeywell filing points to various features of the Nest thermostat that have been promoted by Nest Labs and Best Buy as “innovative,” including the ability to connect the device to the Internet, store private data and control the Nest remotely through a Wi-Fi connection. Honeywell also takes issue with Fadell and Rogers having said that there hasn’t been any real innovation in decades in the thermostat space, though the sources of this quote and others are unclear.

Honeywell alleges that Nest Labs does not appear to have originated the design or functionality of the Nest thermostat — and says the key functional features at the core of the device are the results of years of research and development that culminated in patents owned by Honeywell.

For example, Honeywell’s complaint says, the fact that the Nest thermometer came with a patented “question system” — “What are the lowest and highest temperatures you’d like when you are away?” — is not new. Honeywell’s Prestige thermostat, introduced in late 2008, also incorporates an “interview-based interface.”

Honeywell also says that controlling a thermostat remotely through the Internet is not a Nest Labs innovation.

Interestingly, General Electric also offers consumers — as part of a home-energy management system — the ability to remotely control a GE “smart” thermostat from a smartphone or home computer. “Connect seamlessly to your programmable thermostat to remotely adjust your home climate,” says GE’s Web page for this feature.

When I asked Anderson whether Honeywell had ever examined GE’s system, he simply said, “I don’t know. I’m not familiar with that product.”

In the filing, Honeywell also references this AllThingsD video from last November as showing evidence that Nest Labs was examining “numerous” Honeywell thermostats in its research, indicating that Nest — which it calls a “well-funded, sophisticated company” — was well aware of Honeywell’s contributions to the thermostat industry.

So, Honeywell says, it has suffered and will suffer monetary damages and irreparable harm as a result of Nest Labs’s infringements, as well as from Best Buy’s infringements by using, offering to sell and/or selling the Nest device.

Since we don’t have a more detailed response from Nest Labs yet, it’s hard to know how this will play out. It’s also unclear whether Honeywell contacted Nest Labs prior to filing the formal suit.

Ed Weisz, a senior intellectual property lawyer at the firm of Cozen O’Connor (which is not involved in the Honeywell suit), says that most cases like this one result in a settlement. However, if it is determined that there has been a patent infringement, Weisz says, Honeywell could seek an injunction — which the courts may be more likely to grant, because there’s actually a product already out on the market.

Weisz also said that, while Best Buy is enjoined in the suit, he doesn’t think the retailer will be on the hook for additional damages, as their sale of goods — even ones that might infringe on IP — will be covered by the Uniform Commercial Code.

“It’s way too premature to have any read on the merits of this,” Weisz said.

What we do know is that in Silicon Valley — and in Honeywell’s case, outside of the Valley, too — tech-patent lawsuits are hardly uncommon, especially in the smartphone and tablet market.

We’ll keep you posted as this story evolves.

From iPods to Thermostats: Nest CEO and Founder Tony Fadell Speaks! (Video)

Kara Swisher — Tue, 29 Nov 2011 19:02:43 +0000

When Tony Fadell left Apple for good in March of last year, the man who has been dubbed the “father of the iPod” said in an interview that his “primary focus will be helping the environment by working with consumer green-tech companies.”

Fadell has kind of kept that promise with the recent launch of Nest, his new start-up that is focused on super-smart, well, thermostats.

Before you drift off to dreamland at the thought of being even slightly interested in the mundane household device that you fight over with your family (along with the remote), Nest is indeed in keeping with the idea of making the home more digitally aware.

With a wheel user interface, a Wi-Fi connection, sensors aplenty and an ability to learn your behavorial patterns, Nest is a temperature-taking version of an iPod.

And it’s also pretty, clad in simple brushed stainless steel, and pricey too. And, also like most Apple products, it is selling like hotcakes.

Here’s the always affable Fadell talking about why he moved in this unusual direction, although he gives up little info about Nest’s funding:

[ See post to watch video ]

Tony "Father of the iPod" Fadell Leaves Apple

John Paczkowski — Tue, 30 Mar 2010 12:45:34 +0000

Nearly a year and a half after stepping down as senior vice president of Apple’s iPod division, Tony Fadell is leaving the company for good.

Fadell, one of the chief architects of Apple’s audio strategy (there were obviously others, and top Apple execs sometimes bristle at Fadell being credited with paternity), had been working as an adviser to Apple (AAPL) CEO Steve Jobs since being replaced in November 2008 by former IBM (IBM) exec Mark Papermaster. Now his time in that diminished role has ended and Fadell is moving on.

Fadell’s plans? “My primary focus will be helping the environment by working with consumer green-tech companies,” he told the New York Times, which first reported his departure. “I’m determined to tell my kids and grandkids amazing stories beyond my iPod and iPhone ones.”

Google and Yahoo, Ahem, "Downsize" Ad Pact

John Paczkowski — Wed, 05 Nov 2008 19:00:06 +0000

[ See post to watch video ]

Google and Yahoo, Ahem, "Downsize" Ad Pact

John Paczkowski — Wed, 05 Nov 2008 19:00:06 +0000

[ See post to watch video ]

Apple to Pay Departing "Father of iPod" $300,000 Shut-Up Money Annually

John Paczkowski — Wed, 05 Nov 2008 16:17:23 +0000

“Advisor” to Apple CEO Steve Jobs is a killer gig–if you can swing it. Just ask Tony Fadell. The now former senior vice president of the company’s iPod division will collect an annual salary of $300,000 until March 24, 2010, in his new role of Special Advisor to the CEO, according to Apple’s latest 10-K. He’ll also be entitled to bonus and health benefits. And be expected to keep his distance from Apple’s rivals. If he doesn’t, he can say goodbye to those 77,500 restricted Apple (AAPL) stock options set to vest in full in March of 2010. Silence is golden–in this case, golden handcuffs.

On November 3, 2008, Tony Fadell, Senior Vice President, iPod Division of Apple became Special Advisor to the Company’s Chief Executive Officer. In this new position, Mr. Fadell no longer will be an executive officer of the Company. In connection therewith, Mr. Fadell and the Company have entered into a Transition Agreement and a Settlement Agreement and Release (the “Transition Agreement” and the “Settlement Agreement,” respectively), under which Mr. Fadell will receive a salary of three hundred thousand dollars annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers for the duration of the Transition Agreement, which remains in effect until March 24, 2010. The Transition Agreement also provides for the cancellation of outstanding and unvested 155,000 restricted stock units held by Mr. Fadell. Upon approval by the Compensation Committee of the Company’s Board of Directors, Mr. Fadell will be granted 77,500 restricted stock units that will vest in full on March 24, 2010, subject to his continued employment with the Company through the vesting date and further subject to accelerated vesting if the Company terminates his employment without cause. The restricted stock units are payable upon vesting in shares of the Company’s common stock on a one-for-one basis. The Settlement Agreement includes Mr. Fadell’s release of claims against the Company and agreement not to solicit the Company’s employees for one year following the termination of his employment.”

Apple to Pay Departing "Father of iPod" $300,000 Shut-Up Money Annually

John Paczkowski — Wed, 05 Nov 2008 16:17:23 +0000

On November 3, 2008, Tony Fadell, Senior Vice President, iPod Division of Apple became Special Advisor to the Company’s Chief Executive Officer. In this new position, Mr. Fadell no longer will be an executive officer of the Company. In connection therewith, Mr. Fadell and the Company have entered into a Transition Agreement and a Settlement Agreement and Release (the “Transition Agreement” and the “Settlement Agreement,” respectively), under which Mr. Fadell will receive a salary of three hundred thousand dollars annually, and will be entitled to bonus and other health and welfare benefits generally available to other senior managers for the duration of the Transition Agreement, which remains in effect until March 24, 2010. The Transition Agreement also provides for the cancellation of outstanding and unvested 155,000 restricted stock units held by Mr. Fadell. Upon approval by the Compensation Committee of the Company’s Board of Directors, Mr. Fadell will be granted 77,500 restricted stock units that will vest in full on March 24, 2010, subject to his continued employment with the Company through the vesting date and further subject to accelerated vesting if the Company terminates his employment without cause. The restricted stock units are payable upon vesting in shares of the Company’s common stock on a one-for-one basis. The Settlement Agreement includes Mr. Fadell’s release of claims against the Company and agreement not to solicit the Company’s employees for one year following the termination of his employment.”

Apple's iPod VP to Spend More Time With Friends, Family …

John Paczkowski — Tue, 04 Nov 2008 13:31:25 +0000

If IBM veteran Mark Papermaster is able to begin work at Apple (AAPL) without being sued into oblivion by his former employer, he may end up in Tony Fadell’s old office. Fadell, senior vice president of Apple’s iPod division and one of the chief architects of its audio strategy, is leaving the company and Papermaster is his intended replacement. The reason for Fadell’s departure? A young family that needs tending to.

Fadell is one of Apple’s key technology executives, and the company is spinning the hell out of his departure, which frankly can’t be viewed as anything other than bad news. Fadell is not leaving Apple, so much as he is “reducing” his role, the company tells us. And he will, of course, remain a trusted adviser to Steve Jobs, which I suppose means he’s still on the Apple CEO’s Christmas card list.

Fadell, it should be noted, has on occasion been mentioned as one of Jobs’s potential successors, given his deep involvement in some of Apple’s marquee product lines. That said, he was nowhere to be seen at either of the company’s last two public events, which were clearly intended to show off the depth of Apple’s executive bench. And obviously his name is no longer on the short list for the CEO seat. Perhaps, it hasn’t been for some time, and that’s what inspired this new focus on family life.

Below is the full text of Apple’s release on the personnel changes.

Mark Papermaster Joins Apple as Senior Vice President of Devices Hardware Engineering

CUPERTINO, California—November 4, 2008—Apple today announced that Mark Papermaster is joining the Company as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod and iPhone hardware engineering teams. Papermaster has 25 years of product and technology experience, and was previously a vice president at IBM.

Apple also announced that Tony Fadell, Apple’s senior vice president of the iPod Division, and his wife Danielle Lambert, vice president of Human Resources, are reducing their roles within the company as they devote more time to their young family. Fadell will remain at Apple as an advisor to the CEO. Lambert will depart the company at the end of this year after a successor is in place.

‘Mark is a seasoned leader and is going to be an excellent addition to our senior management team,’ said Steve Jobs, Apple’s CEO. ‘Tony and Dani have each made important contributions to Apple over the past eight years. We’re sorry to see Dani go, and are looking forward to working with Tony in his new capacity.’

Papermaster has a Bachelors of Science in Electrical Engineering degree from the University of Texas, and Masters of Science in Electrical Engineering from the University of Vermont in 1988. He is active with the University of Texas where he is a member of the Electrical and Computer Engineering Advisory Council.”

Apple's iPod VP to Spend More Time With Friends, Family …

John Paczkowski — Tue, 04 Nov 2008 13:31:25 +0000

Below is the full text of Apple’s release on the personnel changes.

Mark Papermaster Joins Apple as Senior Vice President of Devices Hardware Engineering

CUPERTINO, California—November 4, 2008—Apple today announced that Mark Papermaster is joining the Company as senior vice president of Devices Hardware Engineering, reporting to Apple CEO Steve Jobs. Papermaster, who comes to Apple from IBM, will lead Apple’s iPod and iPhone hardware engineering teams. Papermaster has 25 years of product and technology experience, and was previously a vice president at IBM.

Apple also announced that Tony Fadell, Apple’s senior vice president of the iPod Division, and his wife Danielle Lambert, vice president of Human Resources, are reducing their roles within the company as they devote more time to their young family. Fadell will remain at Apple as an advisor to the CEO. Lambert will depart the company at the end of this year after a successor is in place.

‘Mark is a seasoned leader and is going to be an excellent addition to our senior management team,’ said Steve Jobs, Apple’s CEO. ‘Tony and Dani have each made important contributions to Apple over the past eight years. We’re sorry to see Dani go, and are looking forward to working with Tony in his new capacity.’

Papermaster has a Bachelors of Science in Electrical Engineering degree from the University of Texas, and Masters of Science in Electrical Engineering from the University of Vermont in 1988. He is active with the University of Texas where he is a member of the Electrical and Computer Engineering Advisory Council.”