Apple Inc v. Voip-Pal.com, Inc.

District Court, N.D. California·Decided December 11, 2020·No. 3:20-cv-02460·Unknown

Opinion

NORTHERN DISTRICT OF CALIFORNIA SAN JOSE DIVISION APPLE INC., Case No. 20-CV-02460-LHK Plaintiff, ORDER DENYING CONSOLIDATED v. Re: Dkt. No. 32 VOIP-PAL.COM, INC., Defendant.

AT&T CORP., et al., Case No. 20-CV-02995-LHK

Plaintiffs,

v.

Defendant. CELLCO PARTNERSHIP, Case No. 20-CV-03092-LHK Plaintiff, v. VOIP-PAL.COM, INC., Defendant. Plaintiffs Apple, Inc. (“Apple”); AT&T Corp., AT&T Services, Inc., and AT&T Mobility (collectively, “AT&T”); and Cellco Partnership d/b/a Verizon Wireless (“Verizon”) (collectively, “Plaintiffs”) each sue Defendant VoIP-Pal.com, Inc. (“Defendant”) for a declaration of non- infringement and invalidity of U.S. Patent No. 10,218,606 (“the ’606 patent”). In addition, Apple sues Defendant for a declaration of non-infringement and invalidity of U.S. Patent No. 9,935,872 (“the ’872 patent”). Before the Court is Defendant’s consolidated motion to dismiss Plaintiffs’ complaints.1 Having considered the parties’ submissions, the relevant law, and the record in this case, the Court DENIES Defendant’s motion to dismiss. This case represents the latest chapter in a long dispute between the parties regarding whether Plaintiffs infringe Defendant’s patents, which relate to a system for routing internet- protocol communications. Below, the Court discusses in turn: (1) the parties; (2) Defendant’s first set of lawsuits against the Plaintiffs, originally filed in the District of Nevada in 2016 (“the 2016 cases”); (3) Defendant’s second set of lawsuits against Apple and Amazon, originally filed in the District of Nevada in 2018 (“the 2018 cases”); (4) Defendant’s most recent lawsuits against Plaintiffs, filed in the Western District of Texas in April of 2020 (“the Texas cases”); and (5) the instant cases, which were filed by Plaintiffs in this Court in April and May of 2020. A. The Parties Plaintiff Apple is a California corporation with its principal place of business in Cupertino, California. ECF No. 1 ¶ 7. Apple “designs, manufactures, and markets mobile communication and media devices and personal computers, and sells a variety of related software, services, accessories, networking solutions, and third-party digital content and applications.” Id. Apple “provides, supports, and/or operates messaging technology, including iMessage, an instant messaging service supported by Apple’s Messages application and computer infrastructure that

1 Briefing was consolidated in these three cases. For ease of reference and unless otherwise specified, the Court refers to documents filed in the Apple litigation, Case No. 20-CV-02460- LHK. allows smartphone and desktop users to send messages including text, images, video and audio to other users.” VoIP-Pal.Com, Inc. v. Apple Inc., 375 F. Supp. 3d 1110, 1117 (N.D. Cal. 2019) (quotation omitted). Plaintiff AT&T Corp. is a New York corporation with its principal place of business in Bedminster, New Jersey. Case No. 20-CV-02995-LHK, ECF No. 1 ¶ 7. Plaintiff AT&T Services, Inc. is a Delaware corporation with its principal place of business in Dallas, Texas. Id. ¶ 8. Plaintiff AT&T Mobility LLC is a Delaware corporation with its principal place of business in Atlanta, Georgia. Id. ¶ 9. AT&T “supports and operates a messaging platform . . . [that] allows smartphone users to send messages including text, images, video and audio to others.” VoIP- Pal.Com, 375 F. Supp. 3d at 1117 (quotation omitted). AT&T also supports Voice over Internet Protocol products and services as well as a Wi-Fi based calling platform. Id. at 1117–18. Plaintiff Cellco Partnership d/b/a Verizon Wireless is a Delaware corporation with its principal place of business in Basking Ridge, New Jersey. Case No. 20-CV-03092-LHK, ECF No. 1 ¶ 7. Verizon “supports and operates a messaging platform . . . [that] allows smartphone users to send messages including text, images, video and audio to others.” VoIP-Pal.Com, 375 F. Supp. 3d at 1118 (quotation omitted). Verizon also supports Voice over Internet Protocol products and services and a Wi-Fi based calling platform. Id. Defendant VoIP-Pal is a Nevada corporation with its principal place of business in Bellevue, Washington. ECF No. 1 ¶ 8. Defendant owns a portfolio of patents relating to Internet Protocol based communication. VoIP-Pal.Com, Inc. v. Apple Inc., 411 F. Supp. 3d 926, 930 (N.D. Cal. 2019). B. The 2016 Cases On February 9, 2016, Defendant sued Apple in the District of Nevada for infringement of U.S. Patent Nos. 8,542,815 (“the ’815 patent”), and 9,179,005 (“the ’005 patent”), both of which relate to a system for routing calls between a caller and a callee over Internet Protocol. VoIP- Pal.Com, 375 F. Supp. 3d at 1118, 1122. The following day, Defendant sued Verizon and AT&T in the District of Nevada for infringement of the same patents. Id. On October 6, 2016, Defendant sued Twitter in the District of Nevada for infringement of the same patents. Id. at 1121. The District of Nevada stayed the cases pending inter partes review. Id. After the stays were lifted, on February 28, 2018, Twitter moved to change venue to the Northern District of California. VoIP-Pal.Com, Inc. v. Twitter, Inc., Case No. 16-CV-02338, 2018 WL 3543031, at *1 (D. Nev. July 23, 2018). On July 23, 2018, the District of Nevada granted Twitter’s motion for change of venue. Id. On October 1, 2018, the District of Nevada granted Verizon and Defendant’s stipulation to transfer the case. VoIP-Pal.Com, 375 F. Supp. 3d at 1121. On October 4, 2018, the District of Nevada granted a similar stipulation by AT&T and Defendant. Id. The following day, the District of Nevada granted a similar stipulation by Apple and Defendant. Id. As a result, all four cases were transferred to this Court, where they were consolidated. On March 25, 2019, this Court granted Apple, AT&T, Verizon, and Twitter’s consolidated motion to dismiss all four cases. Id. at 1117. In a 45-page order, the Court concluded that the ’815 and ’005 patents were unpatentable under 35 U.S.C. § 101. Id. at 1138, 1144. On March 16, 2020, the Federal Circuit affirmed this Court’s decision. VoIP-Pal.Com, Inc. v. Apple, Inc., 798 F. App’x 644, 645 (Fed. Cir. 2020). On May 18, 2020, the Federal Circuit denied Defendant’s petition for panel or en banc rehearing. VoIP-Pal.Com, Inc. v. Twitter, Case No. 2019-1808, ECF No. 99. C. The 2018 Cases On May 24, 2018, Defendant sued Apple in the District of Nevada for infringement of four more patents: U.S. Patent Nos. 9,537,762 (“the ’762 patent”); 9,813,330 (“the ’330 patent”); 9,826,002 (“the ’002 patent”); and 9,948,549 (“the ’549 patent”). VoIP-Pal.Com, 411 F. Supp. 3d at 934. Like the two patents that were the subject of the 2016 Cases, these four patents relate to a system for routing communications over Internet Protocol. Id. at 931. On June 15, 2018, Defendant sued Amazon in the District of Nevada for infringement of the same patents. Id. The lawsuits against Apple and Amazon were transferred from the District of Nevada to this Court, where they were consolidated and related to the 2016 cases. Id. On November 1, 2019, this Court granted Apple and Amazon’s consolidated motion to dismiss both cases with prejudice. Id. at 930. Just as with the 2016 Cases, the Court concluded, in a 68-page order, that the four patents were unpatentable under 35 U.S.C. § 101. Id. at 941. On November 3, 2020, the Federal Circuit affirmed this Court’s decision. VoIP-Pal.Com, Inc. v. Apple, Inc., 828 F. App’x 717, 717 (Fed. Cir. 2020). If Defendant chooses to petition for rehearing, the petition is due on December 17, 2020. See Order, VoIP-Pal.Com, Inc. v. Apple, Inc., Case No. 2020-1241 (Fed. Cir. Nov. 9, 2020). If Defendant chooses to petition the United States Supreme Court for a writ of certiorari, Defendant’s petition is due o

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Apple Inc v. Voip-Pal.com, Inc., (N.D. Cal. 2020).

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