Applications in Internet Time, LLC v. Salesforce, Inc.

CourtCourt of Appeals for the Federal Circuit
DecidedOctober 10, 2024
Docket24-1133
StatusUnpublished

This text of Applications in Internet Time, LLC v. Salesforce, Inc. (Applications in Internet Time, LLC v. Salesforce, Inc.) 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
Applications in Internet Time, LLC v. Salesforce, Inc., (Fed. Cir. 2024).

Opinion

Case: 24-1133 Document: 47 Page: 1 Filed: 10/10/2024

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

APPLICATIONS IN INTERNET TIME, LLC, Plaintiff-Appellant

v.

SALESFORCE, INC., Defendant-Appellee ______________________

2024-1133 ______________________

Appeal from the United States District Court for the District of Nevada in No. 3:13-cv-00628-RCJ-CLB, Senior Judge Robert Clive Jones.

-------------------------------------------------

2024-1685 ______________________ Case: 24-1133 Document: 47 Page: 2 Filed: 10/10/2024

Appeal from the United States District Court for the District of Nevada in No. 3:13-cv-00628-RCJ-CLB, Senior Judge Robert Clive Jones. ______________________

Decided: October 10, 2024 ______________________

MICHAEL DEVINCENZO, King & Wood Mallesons LLP, New York, NY, argued for plaintiff-appellant. Also repre- sented by ANDREA PACELLI, CHARLES WIZENFELD; STEVEN C. SEREBOFF, SoCal IP Law Group LLP, Westlake Village, CA.

KEVIN P.B. JOHNSON, Quinn Emanuel Urquhart & Sul- livan, LLP, Redwood Shores, CA, argued for defendant-ap- pellee. Also represented by BRIAN C. CANNON, RAY ROBERT ZADO; GAVIN SNYDER, Seattle, WA; SAM STEPHEN STAKE, OGNJEN ZIVOJNOVIC, San Francisco, CA. ______________________

Before LOURIE, LINN, and STOLL, Circuit Judges. LINN, Circuit Judge. Applications in Internet Time (“AIT”) appeals the grants of summary judgment of non-infringement and in- validity of the asserted claims of U.S. Patent Nos. 7,356,482 (the “’482 patent”) and 8,484,111 (the “’111 pa- tent”). See Applications in Internet Time, LLC v. Sal- lesforce.com, Inc., 691 F. Supp. 3d 1223, 1228, 1230–31 (D. Nev. 2023) (“Summary Judgment Order”). Further, AIT challenges the district court’s construction of “automati- cally detecting” as requiring the use of intelligent agents. See Applications in Internet Time, LLC v. Salesforce.com, Inc., No. 3:13-CV-00628-RCJ-CLB, 2021 WL 5238767, at *13, (D. Nev. Nov. 9, 2021) (“Markman Order”). AIT also appeals the district court’s conclusion that its case was ex- ceptional under 35 U.S.C. § 285 and the award of nearly Case: 24-1133 Document: 47 Page: 3 Filed: 10/10/2024

APPLICATIONS IN INTERNET TIME, LLC v. SALESFORCE, INC. 3

$6.9 million in attorneys’ fees. See Applications in Internet Time, LLC v. Salesforce, Inc., 3:13-CV-00628-RCJ-CLB, 2024 WL 1199594, at *6 (D. Nev. Mar. 20, 2024) (“Fee Or- der”). For the reasons that follow, we modify the district court’s claim construction of “automatically detecting,” va- cate the district court’s grants of summary judgment of non-infringement and invalidity, and reverse its excep- tional case determination. BACKGROUND In 2013, AIT sued Salesforce in the District of Nevada for patent infringement of the ’482 and ’111 patents. The ’482 and ’111 patents have substantially identical specifi- cations. The asserted patents are directed to methods and systems for automatically detecting changes to business re- quirements and incorporating such changes into an appli- cation. Representative claim 1 of the ’482 patent recites: 1. A system for providing a dynamically gener- ated application having one or more functions and one or more user interface elements; comprising: a server computer; one or more client computers connected to the server computer over a computer net- work; a first layer associated with the server com- puter containing information about the unique aspects of a particular application; a second layer associated with the server computer containing information about the user interface and functions common to a variety of applications, a particular applica- tion being generated based on the data in both the first and second layers; Case: 24-1133 Document: 47 Page: 4 Filed: 10/10/2024

a third layer associated with the server com- puter that retrieves the data in the first and second layers in order to generate the func- tionality and user interface elements of the application; and a change management layer for automati- cally detecting changes that affect an appli- cation, each client computer further comprising a browser application being executed by each client computer, wherein a user interface and functionality for the particular applica- tion is distributed to the browser application and dynamically generated when the client computer connects to the server computer. ’482 patent col. 32 ll. 9–34 (emphases added). Relevant to this appeal, unasserted claim 8 recites: 8. The system of claim 1, wherein the change management layer further comprises one or more intelligent agents that detect changes that affect an application. ’482 patent col. 32 ll. 59–61 (emphasis added). In its Markman order, the district court construed “au- tomatically detecting” as requiring the use of one or more intelligent agents, concluding that the specification made clear that intelligent agents were integral to the invention. Markman Order, at *6–7. Additionally, the district court afforded “changes that affect” its plain and ordinary mean- ing. See id. at *8. Salesforce moved for summary judgment of non-in- fringement of all asserted claims. Summary Judgment Or- der, 691 F. Supp. 3d at 1227. Salesforce also moved for summary judgment of invalidity, contending that the claims were anticipated by U.S. Patent No. 6,249,291 Case: 24-1133 Document: 47 Page: 5 Filed: 10/10/2024

APPLICATIONS IN INTERNET TIME, LLC v. SALESFORCE, INC. 5

(“Popp”) and rendered obvious by the combination of Popp with an academic reference (“Amati”). Id. at 1237. AIT filed a motion for summary judgment of no anticipation, contending that Salesforce failed to prove that Popp dis- closed an intelligent agent. Id. at 1227, 1242. The district court granted summary judgment of non- infringement, reasoning that because AIT’s expert, Mr. Zatkovich, failed to compare the accused products to the specification’s description of intelligent agents, no reason- able jury could find in AIT’s favor. Summary Judgment Order, 691 F. Supp. 3d at 1234–35. The district court also granted summary judgment of invalidity, concluding that the asserted claims were anticipated by Popp and rendered obvious by the Popp–Amati combination. Id. at 1253. De- termining that its Markman order ended any reasonable likelihood of AIT prevailing on the merits, the district court held that AIT’s continued litigation after the Markman or- der made this case exceptional and awarded Salesforce $6,890,328.28 in attorneys’ fees. See Fee Order, at *6. These appeals followed. We have jurisdiction under 28 U.S.C. § 1295(a)(1). ANALYSIS I. Standard of Review “Claim construction is ultimately a question of law, de- cided de novo on review, as are the intrinsic-evidence as- pects of a claim-construction analysis.” Intel Corp. v. Qualcomm Inc., 21 F.4th 801, 808 (Fed. Cir. 2021). “To the extent the district court, in construing the claims, makes underlying findings of fact based on extrinsic evidence, we review such findings of fact for clear error.” Williamson v. Citrix Online, LLC, 792 F.3d 1339, 1346 (Fed. Cir. 2015); see also Teva Pharms. USA, Inc. v. Sandoz, Inc., 574 U.S. 318, 321–22 (2015). Claim terms generally carry their or- dinary and customary meaning as understood by an ordi- narily skilled artisan. Phillips v. AWH Corp., 415 F.3d 1303, 1312–13 (Fed. Cir. 2005) (en banc). “But where the Case: 24-1133 Document: 47 Page: 6 Filed: 10/10/2024

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