Acceleration Bay LLC v. Electronic Arts Inc.

CourtDistrict Court, D. Delaware
DecidedOctober 7, 2022
Docket1:16-cv-00454
StatusUnknown

This text of Acceleration Bay LLC v. Electronic Arts Inc. (Acceleration Bay LLC v. Electronic Arts Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acceleration Bay LLC v. Electronic Arts Inc., (D. Del. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

ACCELERATION BAY LLC, Plaintiff, C.A. No. 16-454-RGA ELECTRONIC ARTS INC.,, Defendant.

MEMORANDUM OPINION Philip A. Rovner, Jonathan A. Choa, POTTER ANDERSON & CORROON LLP, Wilmington, DE; Aaron M. Frankel (argued), KRAMER LEVIN NAFTALIS & FRANKEL LLP, New York, NY; Paul J. Andre, Lisa Kobialka, James R. Hannah, KRAMER LEVIN NAFTALIS & FRANKEL LLP, Menlo Park, CA; Attorneys for Plaintiff. Jack B. Blumenfeld, Cameron P, Clark, MORRIS NICHOLS ARSHT & TUNNELL LLP, Wilmington, DE; Michael A. Tomasulo (argued), David P. Enzminger, Gino Cheng, Joe S. Netikosol, WINSTON & STRAWN LLP, Los Angeles, CA; Louis L. Campbell, WINSTON & STRAWN LLP, Menlo Park, CA; Daniel K. Webb, WINSTON & STRAWN LLP, Chicago, IL; Joseph C. Masullo, WINSTON & STRAWN LLP, Washington, DC; Attorneys for Defendant.

October ‘L 2022

bel G Medllac so: Before me is Defendant’s motion for summary judgment of non-infringement by collateral estoppel. (D.I. 580). I have considered the parties’ briefing. (D.I. 581, 582, 586). For the reasons set forth below, I will GRANT Defendant’s motion. I. BACKGROUND On June 17, 2016, Plaintiff Acceleration Bay filed suit against Defendant Electronic Arts (“EA”) alleging infringement of U.S. Patent Nos. 6,701,344 (344 Patent), 6,714,966 (966 Patent), 6,732,147 (147 Patent), 6,829,634 (634 Patent), 6,910,069 (069 Patent), and 6,920,497 (°497 Patent). (D.I. 1 at 410). After prior summary judgment rulings on infringement and on invalidity, two infringement . allegations remain: (1) DOE infringement by all accused products of the ’147 Patent, and (2) literal infringement by the accused NHL and Plants vs. Zombies (“PvZ”) games of the ’344 and □□□□ Patents when EA internally tests those games in the United States. (See D.I. 581 at 1 (citing Acceleration Bay LLC v. Activision Blizzard, Inc., 324 F. Supp. 470, 478-59, 485-87 (D. Del. 2018) (summary judgment opinion addressing claim invalidity); Acceleration Bay LLC v. Elec. Arts Inc., No. 16-454-RGA, 2019 WL 1376036 (D. Del. Mar. 27, 2019) (summary judgment opinion addressing noninfringement by Defendant)); D.I. 582 at 2 n.1 (confirming that Plaintiff “is narrowing its election of asserted claims to no longer include any claims from [the °497 Patent]”)). This case is related to Acceleration Bay LLC v. Take-Two Interactive Software, Inc., No. 16-455-RGA (“Take-Two Case”), where Plaintiff accused online features of three video games— NBA 2K15 and NBA 2K 16 (collectively, “NBA 2K”), and Grand Theft Auto Online (““GTAO”)— of infringing the °344, °966, ’147, °069, and ’497 Patents. See Take-Two Case, 2020 WL 1333131, at *1 (D. Del. Mar. 23, 2020) (“Take-Two SJ Opinion”), appeal dismissed sub

nom. Acceleration Bay LLC v. 2K Sports, Inc., 2020 WL 9459373 (Fed. Cir. Oct. 2, 2020) (dismissing cross-appeal), and aff'd in part, dismissed in part sub nom. Acceleration Bay LLC vy. 2K Sports, Inc., 15 F.4th 1069 (Fed. Cir. 2021) (“Take-Two Appeal”). In the Take-Two Case, the defendants moved for summary judgment of non-infringement, which I granted in a detailed opinion. See Take-Two SJ Opinion. Plaintiff appealed. See Take-Two Appeal. On April 21, 2020, I stayed this case pending resolution of Plaintiff's appeal of my summary judgment ruling in the Take-Two Case. (See D.I. 561). The Court of Appeals for the Federal Circuit issued a decision on that appeal on October 4, 2021. See Take-Two Appeal (affirming-in-part the Take-Two SJ opinion and dismissing-in-part Plaintiffs appeal on mootness grounds). With the Take-Two Case’s appeal resolved, Defendant now moves for summary judgment of noninfringement, arguing that Plaintiff is collaterally estopped from relitigating infringement issues it lost in the Take-Two Case. In this case, each remaining asserted claim requires a network that is “m-regular.” I construed “m-regular” to mean “[a] state that the network is configured to maintain, where each [participant or computer] is connected to exactly m neighbor [participants or computers].” □□□□□ 260 at 5). This construction also applied in the Take-Two Case, and Defendant did not appeal this construction. See Take-Two Appeal. I held a hearing on this motion on September 30, 2022. (See D.I. 588). Il. LEGAL STANDARD “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). Material facts are those “that could affect the outcome” of the proceeding, and “a dispute about a material fact is genuine if the evidence is sufficient to permit a reasonable jury to

return a verdict for the nonmoving party.” Lamont v. New Jersey, 637 F.3d 177, 181 (3d Cir. 2011) (cleaned up). In deciding a motion for summary judgment, the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable inferences in that party’s favor. See Scott vy. Harris, 550 U.S. 372, 380 (2007); Wishkin v. Potter, 476 F.3d 180, 184 (3d Cir. 2007). Collateral estoppel, also known as issue preclusion, bars parties from relitigating matters that they previously had a full and fair opportunity to litigate. See Montana v. United States, 440 U.S. 147, 153 (1979). This “protects their adversaries from the expense and vexation attending multiple lawsuits, conserves judicial resources, and fosters reliance on judicial action by minimizing the possibility of inconsistent decisions.” Jd. at 153-54. In a patent case, the law of the regional circuit applies to collateral estoppel generally and Federal Circuit precedent applies where the determination of collateral estoppel involves substantive issues of patent law. See Ohio Willow Wood Co. v. Alps South, LLC, 735 F.3d 1333, 1342 (Fed. Cir. 2013). Under Third Circuit law, collateral estoppel applies when “(1) the issue sought to be precluded is the same as that involved in the prior action; (2) that issue was actually litigated; (3) it was determined by a final and valid judgment; and (4) the determination was essential to the prior judgment.” Burlington N. R. Co. v. Hyundai Merch. Marine Co., 63 F.3d 1227, 1231-32 (3d Cir. 1995) (cleaned up). The “essential to the prior judgment” element can be satisfied when the prior judgment was reached through alternative findings. Jean Alexander Cosms., Inc. v. L’Oreal USA, Inc., 458 F.3d 244, 255 (3d Cir. 2006) (“we will follow the traditional view that independently sufficient alternative findings should be given preclusive effect”). Whether the “basic requirements for issue preclusion are satisfied” is a question of law. Id. at

4 □

248; see also Ohio Willow Wood, 735 F.3d at 1341 (de novo review of the application of collateral estoppel). As is particular to patent law, “an infringement claim in a second suit is the same claim as in an earlier infringement suit if the accused products in the two suits are essentially the same.” Phil-Insul Corp. vy.

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Related

Montana v. United States
440 U.S. 147 (Supreme Court, 1979)
Scott v. Harris
550 U.S. 372 (Supreme Court, 2007)
Lamont v. New Jersey
637 F.3d 177 (Third Circuit, 2011)
Aspex Eyewear, Inc. v. Zenni Optical Inc.
713 F.3d 1377 (Federal Circuit, 2013)
Manos v. Trans World Airlines, Inc.
324 F. Supp. 470 (N.D. Illinois, 1971)
Ohio Willow Wood Co. v. Alps South, LLC
735 F.3d 1333 (Federal Circuit, 2013)
Phil-Insul Corp. v. Airlite Plastics Co.
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Acceleration Bay LLC v. Take-Two Interactive Software
15 F.4th 1069 (Federal Circuit, 2021)

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