3rd Eye Surveillance, LLC v. United States

CourtUnited States Court of Federal Claims
DecidedNovember 30, 2020
Docket15-501
StatusPublished

This text of 3rd Eye Surveillance, LLC v. United States (3rd Eye Surveillance, LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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3rd Eye Surveillance, LLC v. United States, (uscfc 2020).

Opinion

In the United States Court of Federal Claims No. 15-501C (Filed Under Seal: November 20, 2020) (Reissued: November 30, 2020)

) 3RD EYE SURVEILLANCE, LLC and ) Patent case; motion for partial summary DISCOVERY PATENTS, LLC, ) judgment of infringement; cross-motion ) for judgment of noninfringement; 28 Plaintiffs, ) U.S.C. § 1498(a); “all elements” rule; ) evidence in dispute as to one element v. ) ) UNITED STATES, ) ) Defendant, ) ) and ) ) ELBIT SYSTEMS OF AMERICA, ) LLC, GENERAL DYNAMICS ONE ) SOURCE LLC, NORTHROP ) GRUMMAN SYSTEMS ) CORPORATION, and VIDSYS, INC., ) ) Defendant-Intervenors. ) )

Michelle D. Daniel, Kennedy Law, P.C., Dallas, Texas, for the plaintiffs. With her on briefs was Steven A. Kennedy, Kennedy Law, P.C., Dallas, Texas.

Lee Perla, Trial Attorney, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C., for defendant. With him on briefs were Ethan P. Davis, Acting Assistant Attorney General, Civil Division, and Gary L. Hausken, Director, Commercial Litigation Branch, Civil Division, United States Department of Justice, Washington, D.C.

Kurt G. Calia, Covington & Burling LLP, Palo Alto, California, for defendant-intervenor Elbit Systems of America, LLC. With him on briefs were Ranganath Sudarshan, Matthew Kudzin, Grant D. Johnson, Yiye Fu, Jennifer D. Cieluch, and Ryan Roberts, Covington & Burling LLP, Palto Alto, California.

Scott Andrew Felder, Wiley Rein, LLP, Washington, D.C., for defendant-intervenor General Dynamics One Source LLC. Gregory H. Lantier, Wilmer Cutler Pickering Hale and Dorr LLP, Washington, D.C., for defendant-intervenor Northrop Grumman Systems Corporation.

David R. Yohannan, Yohannan Law, Alexandria, Virginia, for defendant-intervenor Vidsys, Inc.

OPINION AND ORDER 1

LETTOW, Senior Judge.

Claims of three patents are at issue: U.S. Patent No. 6,778,085 (the “’085 Patent”), titled “Security System and Method with Realtime Imagery;” U.S. Patent No. 6,798,344 (the “’344 Patent”), titled “Security Alarm System and Method with Realtime Streaming Video;” and U.S. Patent No. 7,323,980 (the “’980 Patent”), titled “Security System and Method with Realtime Imagery.” As to one allegedly infringing system, plaintiffs 3rd Eye Surveillance, LLC and Discovery Patents, LLC (“plaintiffs”) move for partial summary judgment against the United States (“the government” or “defendant”) and defendant-intervenor Elbit Systems of America, LLC (“Elbit”). See Pls.’ Mot for Partial Summ. J. (“Pls.’ Mot.”) ECF No. 363. Plaintiffs contend that Elbit’s “Peregrine” system infringes on the ’085, ’344, and ’980 Patents. See id. The government, through a contract with Elbit, uses the Peregrine system at facilities near United States’ border with Mexico. See Hr’g Tr. 9:12-21 (Sept. 23, 2020). 2 The government and Elbit (collectively “defendants”), in turn, cross-move for summary judgment, arguing that plaintiffs have failed to provide evidence that the Peregrine system embodies all elements of the claims at issue. See Elbit Systems of America, LLC and United States’ Joint Resp. to Pls.’ Mot. for Partial Summ. J. and Cross-Mot. for Summ. J. of Noninfringement (“Defs.’ Cross-Mot.”), ECF No. 376. The parties have completed briefing. See Pls.’ Reply and Resp. (“Pls.’ Reply”), ECF No. 384; Elbit and United States’ Joint Reply (Defs.’ Reply”), ECF No. 388; Pls.’ Surreply, ECF No. 392- 1; Elbit and United States’ Joint Resp. to Pls.’ Surreply (Defs.’ Resp. to Pls.’ Surreply”), ECF No. 405-1. The court held a hearing, and the cross-motions are ready for disposition.

1 Because of the protective order entered in this case, this opinion was being initially filed under seal. The parties were requested to review this opinion and to submit proposed redactions of any confidential or trade secret material. The parties submitted jointly proposed redactions, extensive in scope, but reasonable given the subject matter. The court accepts the proposed redactions, shown as asterisks enclosed by brackets, e.g., “[***].”

The date will be omitted from future citations to the transcript of the hearing held on 2

September 23, 2020.

2 BACKGROUND 3

A. The ’085, ’344, ’980 Patents

The ’344 Patent was filed on October 17, 2002 and issued September 28, 2004. U.S. Patent No. 6,798,344. The ’085 Patent and the ’980 Patent were filed as continuation-in-part applications to the ’344 Patent on January 10, 2003 and August 2, 2004, respectively. See U.S. Patent No 6,778,085 (issued Aug. 17, 2004); U.S. Patent No. 7,323,980 (issued Jan. 29, 2008). Plaintiff 3rd Eye Surveillance, LLC is the exclusive licensee of all three patents, and plaintiff Discovery Patents, LLC is the assignee. Pls.’ Fourth Am. Compl. ¶¶ 14-15, ECF No. 323. The ’980 Patent describes itself as “enhanc[ing] security alarm systems, and security services in general, by providing secure real-time video or image information, as well as other pertinent information relating to the emergency, to the appropriate emergency response agency or agencies.” ’980 Patent col. 1, lines 59-63 (language is representative of all three patents). The ’344 Patent sets out 16 claims, the ’085 Patent has 56 claims, and the ’980 Patent contains 31 claims. ’344 Patent cols. 8-10; ’085 Patent cols. 11-16; ’980 Patent cols. 12-14.

The patented inventions claim a three-part structure—an imaging device at a secured location, a central station, and response agencies. See, e.g., ’980 Patent fig. 2, col. 1. These three components are connected by a network connection, such as the internet. See ’980 Patent col. 4, lines 62-66. When an alarm is triggered at the secured location, real-time imagery is transmitted from the imaging device located at the secured location to the central station. ’980 Patent col. 4, lines 7-11. The central station then receives and processes the imagery. ’980 Patent col. 4, lines 11-13. Imagery can be displayed or recorded at the central station, if desired. ’980 Patent col. 4, lines 12-14. From the central station, imagery is simultaneously transferred to an emergency response agency. ’980 Patent col. 4, lines 19-24.

B. The Peregrine System

Elbit provided the United States government with the Peregrine system pursuant to the Integrated Fixed Towers procurement, awarded by the Department of Homeland Security. See Pls.’ Mot. at 6; see also Def.’s Mot. to Notify Interested Party at A171, ECF No. 25-1.4 Elbit

3 The following recitations do not constitute findings of fact by the court. Instead, the recited factual elements are taken from the relevant complaint and the parties’ briefs and attached appendices. 4 This action potentially relates to a number of federal installations and systems, which breadth and scope has complicated discovery and other pretrial steps. To address this circumstance, the court recently “rein[ed] in the scope of the case by limiting plaintiffs’ discovery requests to 11 potential infringing systems that will serve as bellwethers for further proceedings.” Order of July 28, 2020, ECF No. 381. On August 14, 2020, plaintiffs designated 11 bellwether systems, see Pls.’ Notice, ECF No. 385, the first of which, Elbit’s Peregrine System, is the subject of the pending cross-motions.

3 describes the Peregrine system as containing two main components—a command and control [***]. Defs.’ Cross-Mot. Ex. A at 2, 15. [***]. Pls.’ Mot. Ex. 4 (Decl. of Richard Barrett, Senior Dir. of Engr. at EFW, Inc., a subsidiary of Elbit (“Barrett Decl.”)) ¶ 7, ECF No. 363-4. [***]. Id. ¶ 9. [***]. Id. ¶ 11. [***]. Id. [***]. Elbit’s Mot. for Leave to File Sur-Reply Ex. A § 1.4.2.3.7, ECF No. 275-2 (“ECF No. 275-2”). [***]. Id.

C. Procedural History

Plaintiffs first filed suit against the United States in May 2015, alleging patent infringement under 28 U.S.C.

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