Atlas IP, LLC v. Exelon Corp.

189 F. Supp. 3d 768, 2016 U.S. Dist. LEXIS 64571, 2016 WL 2866134
CourtDistrict Court, N.D. Illinois
DecidedMay 17, 2016
DocketCase No. 15 C 10746
StatusPublished
Cited by14 cases

This text of 189 F. Supp. 3d 768 (Atlas IP, LLC v. Exelon Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlas IP, LLC v. Exelon Corp., 189 F. Supp. 3d 768, 2016 U.S. Dist. LEXIS 64571, 2016 WL 2866134 (N.D. Ill. 2016).

Opinion

[771]*771MEMORANDUM OPINION AND ORDER

Milton I. Shadur, Senior United States District Judge

Atlas IP, LLC (“Atlas”) brought this action alleging that Exelon Corp. (“Exe-lon”) and Commonwealth Edison Co. (“ComEd”) infringed U.S. Patent No. 5,371,734 (“Patent '734”), entitled “Medium Access Control Protocol For Wireless Network.” Exelon has since been dismissed as a defendant. Now before this Court for decision is ComEd’s motion under Fed. R. Civ. P. (“Rule”) 12(b)(6) to dismiss Atlas’ Second Amended Complaint (“SAC”) for failure to state a claim on which relief can be granted. For the reasons explained in this opinion, not only the SAC but this action itself must be and are dismissed.

Motion To Dismiss Standards

Under Rule 12(b)(6) a party may move for dismissal for the “failure to state a claim upon which relief can be granted.” In patent cases, the standards applicable to motions under Rule 12(b)(6) are those articulated by the regional Court of Appeals rather than any uniform standard set by the Federal Circuit (see R+L Carriers, Inc. v. DriverTech LLC (In re Bill of Lading Transmission & Processing Sys. Patent Litig.), 681 F.3d 1323, 1331 (Fed.Cir.2013)). Here familiar Rule 12(b)(6) principles taught by our Court of Appeals require the district court to accept as true all of Atlas’ well-pleaded factual allegations and to view them in the light most favorable to it as the non-moving party (Lavalais v. Vill. of Melrose Park, 734 F.3d 629, 632 (7th Cir.2013)). But “legal conclusions or conclusory allegations that merely recite a claim’s elements” are not entitled to any presumption of truth (Munson v. Gaetz, 673 F.3d 630, 632 (7th Cir.2012)).

In the past decade the Supreme Court made an important change in the evaluation of Rule 12(b)(6) motions via what this Court regularly .refers to as the “Twombly-Iqbal canon,” a usage drawn from Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), as more finely tuned in Erickson v. Pardus, 551 U.S. 89, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007) (per curiam), and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)). That canon has introduced the concept of “plausibility” into the analysis, and in that respect our Court of Appeals 'has “interpreted Twom-bly and Iqbal ■ to require the plaintiff to provid[e] some specific facts to support the legal claims asserted in the complaint” (McCauley v. City of Chicago, 671 F.3d 611, 616 (7th Cir.2011) (internal quotation marks omitted)). As McCauley went on to reconfirm, claimants “must give enough details about the subject-matter of the case to present a story' that holds together” (id). Allegations that are merely consistent with (rather than suggestive of) an entitlement to relief, especially in the face of an obvious alternative explanation, fail that test (id.).

Because the focus of Rule 12(b)(6) motions is on the pleadings, they “can be based only on the complaint itself, documents attached to the complaint, documents that are critical to the complaint and referred to in it, and information that is subject to proper judicial notice” (Geinosky v. City of Chicago, 675 F.3d 743, 745-46 n. 1 (7th Cir.2012)). But a nonmovant has more flexibility, for it “may elaborate on [its] factual allegations so long as the new elaborations are consistent with the pleadings” (id.).

In granting a dismissal courts should usually give a claimant at least one opportunity to amend (Runnion ex rel. Runnion v. Girl Scouts of Greater Chicago & Nw. Ind., 786 F.3d 510, 519 (7th Cir.2015)). And consistently with the principles of Rule 15(a)(2), courts generally grant [772]*772leave to amend freely. But where “it is certain.. .that any amendment would be futile or otherwise unwarranted,” the court can deny leave to amend (id. at 519-20, emphasis in original).

Background

Filed in January 1993, Patept '734 describes a medium access control (“MAC”) protocol for a wireless network that (1) permits multiple stations to copimunieate over the network without interfering with each other and (2) .conserves the battery life of those stations (Patent '734 at col. 5 11. 9-33).1 In outline, the first goal is accomplished by having the stations take turns, with a central hub assigning each remote station an interval of time in which it will be allowed to transmit frames of data over the wireless medium (id. at col. 5 11. 42-54). That time-sharing arrangement permits the remote stations to conserve their batteries by powering down their transmitters when it is not their turn to transmit and their receivers when it is not the hub’s turn to transmit (id. at col. 5 11. 55-65).

Several MAC protocols exist that function in roughly the same manner (see id. at col. 2 1. 63 — col. 4 1. 22; St. Jude Med., Inc. v. Atlas IP, LLC, No. IPR2014-00916 at 13-15, 25-26 (P.T.A.B. Dec. 3, 2015)). Patent '734 represents one variation on that theme.

This action involves that patent’s Claim 1, which reads in full (Patent '734 at col. 44 1. 63 — col. 45 1. 40):

A communicator for wirelessly transmitting frames to and receiving frames from a [sic] least one additional communicator in accordance with a predetermined medium access control protocol, the communicators which transmit and receive the frames constituting a Group, each communicator including a transmitter and a receiver for transmitting and receiving the frames respectively, the medium access control protocol controlling each communicator of the Group to effect predetermined functions comprising:
designating one of the communicators of the Group as a hub and the remaining the [sic] communicators of the Group as remotes;
the hub establishing repeating communication cycles, each communication cycle having intervals during which the hub and the remotes transmit and receive frames;
the hub transmitting cycle establishing information to the remotes to establish the communication cycle and the plurality of predeterminable intervals during each communication cycle, the intervals being ones when the hub is allowed to transmit frames to the remotes, when the remotes are allowed to transmit frames to the hub, and when each remote is expected to receive a frame from the hub;
the hub transmitting a frame containing the cycle establishing information which establishes both an outbound portion of the communication cycle when the hub transmits frames to the remotes and an inbound portion of the communication cycle when the remotes transmit frames to the hub, the frame containing the cycle establishing information also establishing the predetermined intervals during the outbound and inbound portions of the [773]

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189 F. Supp. 3d 768, 2016 U.S. Dist. LEXIS 64571, 2016 WL 2866134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlas-ip-llc-v-exelon-corp-ilnd-2016.