AR Design Innovations LLC v. Ashley Furniture Industries, Inc.

CourtDistrict Court, E.D. Texas
DecidedMarch 30, 2021
Docket4:20-cv-00392
StatusUnknown

This text of AR Design Innovations LLC v. Ashley Furniture Industries, Inc. (AR Design Innovations LLC v. Ashley Furniture Industries, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AR Design Innovations LLC v. Ashley Furniture Industries, Inc., (E.D. Tex. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TEXAS SHERMAN DIVISION

AR DESIGN INNOVATIONS § LLC § § v. § ASHLEY FURNITURE § CIVIL NO. 4:20-CV-392-SDJ INDUSTRIES, INC. § LEAD CASE § LA-Z-BOY, INC. § CIVIL NO. 4:20-CV-395-SDJ §

MEMORANDUM OPINION AND ORDER

Before the Court is Defendants Ashley Furniture Industries, Inc.’s (“Ashley”) and La-Z-Boy Incorporated’s (“La-Z-Boy”) Motion to Dismiss. (Dkt. #19). Plaintiff AR Design Innovations LLC (“AR Design”) has responded, (Dkt. #32), Ashley and La-Z- Boy have replied, (Dkt. #35), and AR Design has filed a sur-reply, (Dkt. #40).1 Having considered the motion, the subsequent briefing, and the relevant law, the Court concludes that the motion should be DENIED. I. BACKGROUND AR Design is the owner of U.S. Patent No. 7,277,572 (the “’572 Patent”). The ’572 Patent, which is titled “Three-Dimensional Interior Design System,” describes a “software application configured to reside on a client computer, which is capable of manipulating 3-D object representations in-situ with a user-selected or user- generated interior design scene, and rendering photographic quality perspective

1 AR Design’s response also responds to a substantively similar motion to dismiss filed by a now-dismissed Defendant, Ethan Allen Interiors, Inc. images of the composite scene.” ’572 Patent col. 1 ll. 8–13. More specifically, Claim 1 of the ’572 Patent, which the Court concludes is representative of the other claims, and which is the only asserted independent claim, reads as follows:

1. A method in a client-server computing environment for generating and rendering a photorealistic three-dimensional (3D) perspective view of a 3D object selectively positioned within a 3D scene, the method comprising: (a) communicably accessing a server with a client; (b) operating with the client, a client application configured for scene editing and rendering, including a graphical user interface (GUI); (c) displaying a 3D with the GUI; (d) configuring the 3D scene for being selectively displayed in a plurality of views; (e) retrieving at least one 3D object from the server; (f) importing the 3D object into the 3D scene to generate a composite; (g) manipulating the 3D object within the composite for placement and orientation; (h) rendering a 3D image of the composite at the client; (i) selectively reconfiguring the 3D image in real time; (j) applying luminosity characteristics to the 3D image; and (k) rendering, with the client application, a photorealistic 3D view of the composite image, including the luminosity characteristics. ’572 Patent col. 36 ll. 20–42. The ’572 Patent’s specification contemplates sundry embodiments. One such embodiment relevant here is the use of the technology as a means for furniture manufacturers and sellers to “showcase their products.” ’572 Patent col. 7 ll. 1–2. The specification states that the patent “will allow end users to see a manufacturer’s products in full, realistic, 3D with the ability to change the texture (textile covering, finish, etc.) of the product” and “may allow a furniture manufacturer to exhibit their sofas or chairs covered in all of the different materials offered by them.” Id. col. 7

ll. 2–7. Defendants Ashley and La-Z-Boy are furniture companies. AR Design alleges that both companies have developed mobile software applications—the Ashley HomeStore Mobile App and the La-Z-Boy AR application—that infringe upon the ’572 Patent. Specifically, AR Design alleges that these mobile applications allow Defendants’ customers to generate and render photorealistic 3D objects (Defendants’

products), selectively position those objects within a 3D scene (the customers’ rooms), and rearrange or edit the objects and scenes in real time. Defendants now move to dismiss AR Design’s patent-infringement claim, asserting that AR Design’s ’572 Patent is not eligible as a patent under 35 U.S.C. § 101 because it is “directed to” an abstract idea—specifically, the abstract idea of “retrieving, manipulating, and displaying three-dimensional objects in space,” which, Defendants argue, “is just a well-known longstanding practice commonly used by model builders, students

constructing dioramas, architects, and even movie makers.” (Dkt. #19 at 18). II. LEGAL STANDARD A. Rule 12(b)(6) Patent eligibility under Section 101 can often be resolved on a motion to dismiss. Berkheimer v. HP Inc., 881 F.3d 1360, 1368 (Fed. Cir. 2018) (“Berkheimer I”). When a 12(b)(6) motion to dismiss for failure to state a claim challenges the eligibility of a patent, courts apply the same, well-known standard that applies to all 12(b)(6) motions. Aatrix Software, Inc. v. Green Shades Software, Inc., 890 F.3d 1354, 1357 (Fed. Cir. 2018) (en banc) (per curiam).

In order to survive a Rule 12(b)(6) motion to dismiss, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Waller v. Hanlon, 922 F.3d 590, 599 (5th Cir. 2019) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)). This involves a two- step inquiry. First, courts assess the allegations of the complaint and distinguish well-pleaded factual allegations from unsupported legal conclusions. Id. (citing Doe v.

Robertson, 751 F.3d 383, 388 (5th Cir. 2014)). The complaint need not lay out its factual allegations in significant detail, but it must be enough that, when accepted as true, the allegations suggest that the plaintiff’s right to recovery is more than just speculative. Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). This means that a complaint requires more than mere “labels and conclusions” or a “formulaic recitation of the elements of a cause of action,” and courts need not assume the truth of legal conclusions framed as allegations. Id.

Second, courts must “ask whether the remaining allegations are sufficient to nudge the plaintiff’s claim across the plausibility threshold.” Waller, 922 F.3d at 599 (quotation and brackets omitted); accord Iqbal, 556 U.S. at 678. In other words, courts determine whether the complaint’s factual allegations establish more than just a possibility of the plaintiff’s success on its claims. Making this determination is “a content-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Waller, 922 F.3d at 599 (internal quotation marks omitted) (quoting Iqbal, 556 U.S. at 679). B. The Alice/Mayo Test

Under 35 U.S.C. § 101, “[w]hoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.” However, the Supreme Court has long held that Section 101 contains an implicit exception to patent eligibility for claims directed toward laws of nature, physical phenomena, and abstract ideas. Diamond v.

Chakrabarty, 447 U.S. 303, 309, 100 S.Ct. 2204, 65 L.Ed.2d 144 (1980); accord Ass’n for Molecular Pathology v. Myriad Genetic, Inc., 569 U.S. 576, 589, 133 S.Ct. 2107, 186 L.Ed.2d 124 (2013). Relevant here, “[t]he abstract idea exception has been applied to prevent patenting of claims that abstractly cover results where ‘it matters not by what process or machinery the result is accomplished.’” McRO, Inc. v.

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