Beam Laser System, Inc. v. Cox Communications, Inc.

144 F. Supp. 2d 475, 2001 U.S. Dist. LEXIS 11957, 2001 WL 648980
District Court, E.D. Virginia·Decided June 1, 2001·No. 2:00CV195·Published·Cited by 2 cases

Opinion

OPINION

REBECCA BEACH SMITH, District Judge.

This matter came before the court on March 13, 2001, for a hearing on the proper construction of certain patent claims, see Markman v. Westview Instruments, Inc., 52 F.8d 967 (Fed.Cir.1995) (in banc), ajfd, 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996), and for a hearing on a plethora of pending motions. Still pending before the court 1 are the claim construction and the following four summary judgment motions: (1) SeaChange International, Inc. (“SeaChange”), an intervenor in this action, and Cox Communications, Inc. (“CCI”), CoxCom, Inc., and CableRep, Inc. (collectively, “the Cox Companies” or the “Cox Defendants”) filed a Motion for Summary Judgment of Inequitable Conduct Barring Enforcement of U.S.Patent No. 4,814,883 and U.S.Patent No. 5,200,825; (2) SeaChange filed a Motion for Summary Judgment of Non-Infringement for Lacking a “Local Video Signal” (the “Non-Infringement Motion”); (3) SeaChange *479 and the Cox Companies (collectively, “Defendants”) filed a Motion for Summary Judgment of Non-Infringement of U.S.Patent No. 4,814,883 and U.S.Patent No. 5,200,825 With Respect to the Cox Companies’ Hampton Roads-Type Facilities (the “Hampton Roads Motion”); and (4) Defendants filed a Motion for Summary Judgment of Invalidity of U.S.Patent No. 5,200,825.

The court construes the disputed claim terms below. Additionally, for the reasons given below, SeaChange’s Non-Infringement Motion and Defendants’ Hampton Roads Motion are both GRANTED. The other two motions for summary judgment are not addressed herein and remain pending before the court for decision.

1. Background and Procedural History

A. Technical Background

A cable company purchases programmed channel signals from several individual program sources (network program providers) 2 for distribution to its customers, who, in turn, pay fees to the cable company. The original program signals (the “network feeds”) are communicated to a “headend” operated by the cable company via satellite or fiber-optic cables; the cable company then distributes the programmed channel signals to its individual customers via coaxial cable (hence the term “cable company”). The companies that create the original programmed channel signal (the “cable programmers”), CNN, for example, generate revenue both in the sale to the cable companies of broadcast rights to their channels and in the sale of air time for advertisements.

In the middle 1980’s, cable programmers, as an incentive for carriage on local cable systems, offered to make time slots available to the operator of the local cable system for local advertising (“local avails”). Thus, time was set aside during the hourly run of the programmed show or segment during which local cable systems were permitted to pre-empt the advertisements on the channel in favor of local commercial inserts. Advertisements inserted by the local cable company are called “spots.” Cable operators use these local avails as a revenue source in addition to subscriber fees.

Typically, the local avails are one-minute or two-minute time periods and are found in the time block extending from twenty minutes until thirty-six minutes past the hour and in the time block from fifty past the hour until six minutes past the succeeding hour. Originally, the cable companies employed the same technique for inserting local spots as did broadcast television networks: The cable company aired local advertising by switching the network feed to a local video tape drive when the network feed signaled the start of the local avail. The switch to the local advertising video was typically signaled with a “cue tone” on the network feed which activated a video switch that had an input for the network feed and two inputs for tape drives. Two tape drives were employed for reliability (a missed play of local advertising was costly) and to allow a new tape to be inserted without risking missing a local avail. A cue tone was issued both shortly before the local avail and immediately at the leading time edge of the local avail.

Cable operators developed a promising local advertising business, but also faced some technical and business problems. Operators were inserting local advertising into a number of cable network feeds — not just one, as was the case with television stations — and needed multiple tape drives and a video switch for each programmed *480 channel. Advertising could be sold to anon one channel or across all advertising channels, requiring that advertising tapes be created for each tape machine associated with an advertising cable channel. Cable systems did not cover as much area as the broadcast signal. Thus, an advertiser might have to place ads on five or ten cable systems to reach the same size audience that a single broadcast station could reach. The inventions claimed in the patents at issue attempt to deal with the problems described above.

B. The Patents at Issue

At issue are U.S.Patent No. 4,814,883 (“the ’883 Patent”), entitled “Multiple Input/Output Video Switch for Commercial Insertion System,” and U.S.Patent No. 5,200,825 (“the ’825 Patent”), entitled “Commercial Insertion System Remotely Controlling Multiple Video Switches,” (collectively, “the Beam patents”). An application for the ’883 Patent was filed on January 4, 1988, and the patent issued on March 21, 1989. The technology was invented by Michael C. Perine and Eric J. Softley, but the patent was assigned to Beam Laser. An application for the ’825 Patent was filed on July 1, 1992, and the patent issued on April 6, 1993. This technology was invented by Perine, but the patent was assigned to Beam Laser.

The inventors of the ’883 Patent acknowledged a prior art device that could automatically insert one commercial into a single programming channel. This prior art device required a separate, independent switching device for each programming channel, and was thus incapable of exploiting the overlapping nature of the local avails by inserting the same commercial into several channels. See ’883 Patent, col. 1,11.45-55.

The invention claimed by the ’883 Patent was designed to “overcome[] this disadvantage by utilizing a multiple input, multiple output video switch system, that has a video switch for each channel, and that is controlled by a remote control center sending command signals and commercial insert video signals to the switch over a telecommunications network....” Id. col. 2, 11.3-8. Generating the commercial inserts at a central location allowed for only one “copy” of the commercial inserts to be used, with simultaneous broadcast of a commercial spot to all programmed channels. Moreover, the commercials could be fed to the switches in a continuous stream, which each switch could access as its programmed channel signaled a local avail. See id. col. 2,11.24-57.

Free access — add to your briefcase to read the full text and ask questions with AI

Beam Laser System, Inc. v. Cox Communications, Inc., 144 F. Supp. 2d 475, 2001 U.S. Dist. LEXIS 11957, 2001 WL 648980 (E.D. Va. 2001).

144 F. Supp. 2d 475 (Beam Laser System, Inc. v. Cox Communications, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Coalition for Clean Air v. VWR International, LLC
922 F. Supp. 2d 1089 (E.D. California, 2013)
SuperGuide Corp. v. DIRECTV ENTERPRISES, INC.
169 F. Supp. 2d 492 (W.D. North Carolina, 2001)