Ameranth, Inc. v. Domino's Pizza, LLC

CourtCourt of Appeals for the Federal Circuit
DecidedNovember 1, 2019
Docket19-1141
StatusUnpublished

This text of Ameranth, Inc. v. Domino's Pizza, LLC (Ameranth, Inc. v. Domino's Pizza, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ameranth, Inc. v. Domino's Pizza, LLC, (Fed. Cir. 2019).

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

AMERANTH, INC., Plaintiff-Appellant

v.

DOMINO'S PIZZA, LLC, DOMINO'S PIZZA, INC., Defendants-Appellees

PAPA JOHN'S USA, INC., OPENTABLE, INC., GRUBHUB, INC., SEAMLESS NORTH AMERICA, LLC, O-WEB TECHNOLOGIES LTD., HOTELS.COM, L.P., STUBHUB, INC., TICKETMASTER, LLC, LIVE NATION ENTERTAINMENT, INC., TRAVELOCITY.COM LP, HOTEL TONIGHT, INC., ORBITZ, LLC, EXPEDIA, INC., FANDANGO, INC., HOTWIRE, INC., KAYAK SOFTWARE CORPORATION, EMN8, INC., HILTON INTERNATIONAL CO., HILTON RESORTS CORPORATION, HILTON WORLDWIDE, INC., USABLENET, INC., STARWOOD HOTELS & RESORTS WORLDWIDE INC., MOBO SYSTEMS, INC., AGILYSYS, INC., ATX INNOVATION, INC., BEST WESTERN INTERNATIONAL, INC., HYATT CORPORATION, ORDR.IN, INC., NAAMA NETWORKS, INC., MARRIOTT HOTEL SERVICES, INC., MARRIOTT INTERNATIONAL, INC., RITZ CARLTON HOTEL COMPANY, LLC, RENAISSANCE HOTEL OPERATING COMPANY, APPLE, INC., TICKETBISCUIT, LLC, EVENTBRITE, INC., TICKETFLY, INC., 2 AMERANTH, INC. v. DOMINO'S PIZZA, LLC

STARBUCKS CORPORATION, IPDEV CO., ORACLE CORPORATION, Defendants ______________________

2019-1141, 2019-1144 ______________________

Appeals from the United States District Court for the Southern District of California in Nos. 3:11-cv-01810-DMS- WVG, 3:12-cv-00733-DMS-WVG, Judge Dana M. Sabraw. ______________________

Decided: November 1, 2019 ______________________

RICHARD CHARLES WEINBLATT, Stamoulis & Weinblatt LLC, Wilmington, DE, argued for plaintiff-appellant.

FRANK A. ANGILERI, Brooks Kushman PC, Southfield, MI, argued for defendants-appellees. Also represented by THOMAS W. CUNNINGHAM, JOHN P. RONDINI. ______________________

Before PROST, Chief Judge, PLAGER and DYK, Circuit Judges. DYK, Circuit Judge. Ameranth, Inc. (“Ameranth”) sued Domino’s Pizza, LLC and Domino’s Pizza, Inc. (together, “Domino’s”) for in- fringement of various claims of U.S. Patent No. 8,146,077 (“the ’077 patent”). The district court entered judgment that claims 1, 4–9, 11, and 13–18 of the ’077 patent are pa- tent ineligible under 35 U.S.C. § 101. We affirm as to claims 1, 6–9, 11, and 13–18, but hold that the district court lacked declaratory judgment jurisdiction as to claims 4 and 5. AMERANTH, INC. v. DOMINO'S PIZZA, LLC 3

BACKGROUND Beginning in 2011, Ameranth filed numerous actions against companies in the hospitality industry for infringe- ment of various patents covering communications systems for generating and transmitting menus. Ameranth as- serted various claims of the ’077 patent and U.S. Patent Nos. 6,384,850 (“the ’850 patent”), 6,871,325 (“the ’325 pa- tent”), and 6,982,733 (“the ’733 patent”). The district court consolidated the actions for pretrial purposes including discovery and claim construction. Ameranth’s complaint against Domino’s asserted infringe- ment of the ’077, ’850, ’325, and ’733 patents. Domino’s filed counterclaims asserting that the ’077, ’850, ’325, and ’733 patents are patent ineligible under § 101. Various defendants challenged Ameranth’s patents be- fore the Patent Trial and Appeal Board (“Board”) in Cov- ered Business Method proceedings. In Apple, Inc. v. Ameranth, Inc., 842 F.3d 1229, 1245 (Fed. Cir. 2016), this court held that claims of the ’850, ’325, and ’733 patents on appeal from the Board’s decision are patent ineligible. By early 2017, those three patents were no longer at issue in the consolidated district court proceeding, and only in- fringement of the related ’077 patent remained. Domino’s was among the various defendants accused of infringement in the district court actions. In June 2018, defendants Pizza Hut, Inc. and Pizza Hut of America, Inc. (together, “Pizza Hut”) filed a motion for summary judg- ment of unpatentability under § 101 with respect to the ’077 patent. Ameranth and Pizza Hut settled, and Dom- ino’s requested permission in effect to substitute itself for Pizza Hut to pursue the motion. That request was granted. On September 25, 2018, the district court granted the motion for summary judgment of unpatentability, finding that “the asserted claims of the [’]077 Patent are unpatent- able under § 101.” J.A. 15. The district then entered final 4 AMERANTH, INC. v. DOMINO'S PIZZA, LLC

judgment in the action against Domino’s and adjudicated that “all asserted claims of the ’077 Patent (claims 1, 4–9, 11, 13–18) are patent ineligible under Section 101.” J.A. 1– 2. Ameranth appeals. We have jurisdiction under 28 U.S.C. § 1295(a)(1). We review a district court’s grant of summary judg- ment without deference. A district court’s decision on pa- tent eligibility is reviewed de novo except that its factual determinations are reviewed for clear error. Berkheimer v. HP Inc., 881 F.3d 1360, 1365, 1368 (Fed. Cir. 2018). With respect to jurisdiction, we review de novo whether a case or controversy exists and apply Federal Circuit law. Sanofi-Aventis U.S., LLC v. Dr. Reddy’s Labs., Inc., 933 F.3d 1367, 1372 (Fed. Cir. 2019). DISCUSSION I. Jurisdiction Ameranth contends that it asserted only claims 1, 6, 9, 13, and 17 against Domino’s and thus the district court’s order invalidating nine other claims (i.e., claims 4–5, 7–8, 11, 14–16, and 18) should be vacated for lack of declaratory judgment jurisdiction. Article III courts have subject matter jurisdiction only if there is an actual case or controversy. See MedImmune, Inc. v. Genentech, Inc., 549 U.S. 118, 126–27 (2007). “[T]he existence of a case or controversy must be evaluated on a claim-by-claim basis” in patent cases. Fox Grp., Inc. v. Cree, Inc., 700 F.3d 1300, 1307 (Fed. Cir. 2012) (quoting Jervis B. Webb Co. v. So. Sys., Inc., 742 F.2d 1388, 1399 (Fed. Cir. 1984)). “[J]urisdiction must exist ‘at all stages of review, not merely at the time the complaint [was] filed,’” Streck, Inc. v. Research & Diagnostic Sys., Inc., 665 F.3d 1269, 1282 (Fed. Cir. 2012) (second alteration in original) (quoting Benitec Austl., Ltd. v. Nucleonics, Inc., 495 F.3d AMERANTH, INC. v. DOMINO'S PIZZA, LLC 5

1340, 1343 (Fed. Cir. 2007)), and “a counterclaimant must show a continuing case or controversy with respect to with- drawn or otherwise unasserted claims,” id. at 1283. All of the circumstances are considered in determining the exist- ence of a case or controversy. See MedImmune, 549 U.S. at 127. Ameranth does not dispute the existence of a case or controversy for claims 1, 6, 9, 13, and 17. But Ameranth argues that the district court was without power to deter- mine the patent eligibility of claims 4–5, 7–8, 11, 14–16, and 18 of the ’077 patent because there was no case or con- troversy with respect to those claims. We first address the latter seven claims (claims 7–8, 11, 14–16, and 18). In its infringement contentions, Ameranth accused Domino’s of infringing various claims of the ’077 patent in- cluding the seven claims. Ameranth attached to the com- plaint, its Disclosure of Asserted Claims and Infringement, including allegations that “Domino’s Ordering System in- fringes at least . . . claims 1, 3, 6, 7, 8, 9, 11, 12, 13, 15, 16, 17, and 18 of the [’]077 patent.” J.A. 12425–26.

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