Automated Business Companies v. Webex Communications, Inc.

712 F. Supp. 2d 608, 2010 U.S. Dist. LEXIS 41303, 2010 WL 1708404
CourtDistrict Court, S.D. Texas
DecidedApril 26, 2010
DocketCivil Action H-06-1032
StatusPublished

This text of 712 F. Supp. 2d 608 (Automated Business Companies v. Webex Communications, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Automated Business Companies v. Webex Communications, Inc., 712 F. Supp. 2d 608, 2010 U.S. Dist. LEXIS 41303, 2010 WL 1708404 (S.D. Tex. 2010).

Opinion

*611 MEMORANDUM OPINION AND ORDER

SIM LAKE, District Judge.

Automated Business Companies (“ABC”) brought this action against Web-Ex Communications, Inc. (“WebEx”) alleging patent infringement involving certain claims of United States Patent Nos. 6,360,-253 (“'253 patent”), 6,999,945 (“'945 patent”), and 7,016,943 (“'943 patent”). Pending before the court is Defendant Web-Ex Communications, Inc.’s Motion for Summary Judgment of Noninfringement of United States Patent Nos. 6,360,253, 6,999,945, and 7,016,943 and Invalidity of United States Patent No. 6,999,945 (Docket Entry No. 203). For the reasons explained below, the court will grant in part and deny in part WebEx’s motion.

I. Background

This action concerns allegations by ABC that various computer software products and services offered by WebEx infringe certain claims of the '253, '945, and '943 patents (“the Freeny patents”). The '253 patent and the '943 patent, which share a common specification except for the abstract, are directed to a “split personal computer system.” 1 The '945 patent is directed to a “multiple customer and multiple location PC service provider system.” 2 All three patents involve similar inventions that enable an individual user to control or utilize one or more remotely located computer units via a local interface device.

A. Patent Background

Each of the three patents asserted in this action assert priority to a common parent, United States Patent No. 6,243,743 (“'743 patent”), the application for which was filed on January 29, 1998. 3 The '253 patent issued on March 19, 2002, and is a continuation of the '743 patent. 4 The '945 patent issued on February 14, 2006, and is a continuation-in-part of the '743 patent. 5 The '943 patent issued on March 21, 2006, and is a continuation of application No. 10/050,624, now abandoned, which was a continuation of the '253 patent. 6

Although the asserted claims vary in important ways, each claim generally outlines an invention made up of or utilizing three elements: (1) the local element, (2) the intermediate element, and (3) the remote element. The local element is an interface device physically located in the same place as the user through which the user inputs commands and receives output, but which itself has minimal functionality and does not perform the computing functions desired by the user. 7

The intermediate element — -referred to in the asserted patent claims as a “remote system controller,” 8 “network control com *612 puter,” 9 or “website” 10 — essentially facilitates the connection between the local element and the remote element. 11 In all of the asserted claims the intermediate element performs at least two key functions. First, the intermediate element receives logon commands from the local element and checks their validity. 12 Second, if the logon commands are valid, the intermediate element establishes the connection between the local element and the appropriate computer unit in the remote element, allowing the user to operate the remote computer unit. 13

)

claim 1, as amended, is included in Ex Parte Reexamination Certificate, Exhibit 3 to Web-Ex's Brief, at 6).

The remote element is made up of one or more computer units physically located remotely from the user. 14 The remote element performs the computing functions desired by the user. 15 Output from the remote element is relayed back to the user via the intermediate element and is displayed or otherwise expressed in a usable format by the local element. 16 Data is transmitted from one element to another via the internet or other similar connection. 17

In summary, the invention allows a user “to remotely operate the remote computer unit as if [he] were sitting in front of the remote computer unit and actually operating the remote computer unit.” 18 Al *613 though the user is in one physical location and the computer unit performing the desired computational tasks are in another physical location, the invention provides “the illusion of utilizing a complete personal computer system.” 19

B. Procedural History

ABC initiated this action on March 27, 2006, asserting causes of action against multiple defendants, including WebEx, for infringement of claim 16 of the '253 patent, claims 1-5 of the '945 patent, and claims 1 and 2 of the '943 patent. 20 At the request of the parties the court granted a stay of the action on September 6, 2006, pending an ex parte reexamination of the asserted patent claims by the United States Patent and Trademark Office (“USPTO”). 21

During the reexamination of the '253 patent, ABC amended claim 16 to clarify that the “remote system controller” was not a passive device, but instead that it was capable of actively receiving and checking logon commands and actively interfacing the local element and the remote element. 22 On March 27, 2009, the USP-TO completed the ex parte reexamination of the '253 patent, concluding that claim 16, as amended, was patentable. 23

For the '943 patent ABC made amendments to claims 1 and 2 similar to the amendments made to claim 16 of the '253 patent. The amendments clarified that the “remote system controller” of claim 1 and the “network control computer” of claim 2 are active devices, not mere passive switches or pass-through devices. 24 The amendments made explicit that the claimed “remote system controller” and the “network control computer” were capable of receiving and checking logon commands. 25 On March 27, 2009, the USPTO announced that it found claims 1 and 2 patentable as amended, concluding the ex parte reexamination of the '253 patent. 26

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Bluebook (online)
712 F. Supp. 2d 608, 2010 U.S. Dist. LEXIS 41303, 2010 WL 1708404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/automated-business-companies-v-webex-communications-inc-txsd-2010.