Bell Atlantic Network Services, Inc. v. Covad Communications Group, Inc.

92 F. Supp. 2d 483, 2000 WL 354192
CourtDistrict Court, E.D. Virginia
DecidedApril 4, 2000
DocketCIV. A. 2:99CV712
StatusPublished
Cited by9 cases

This text of 92 F. Supp. 2d 483 (Bell Atlantic Network Services, Inc. v. Covad Communications Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bell Atlantic Network Services, Inc. v. Covad Communications Group, Inc., 92 F. Supp. 2d 483, 2000 WL 354192 (E.D. Va. 2000).

Opinion

OPINION AND ORDER

FRIEDMAN, District Judge.

On January 13, 2000, Bell Atlantic Network Services, Inc. (“Bell Atlantic”) filed a motion for summary judgment on Covad Communications Group, Inc., Covad Communications Company, Inc., and DIECA Communications, Ine.’s (collectively “Co-vad”) seventh (estoppel) and ninth (implied license) affirmative defenses. On January 14, 2000, Bell Atlantic filed a motion for summary judgment on Covad’s fifth (patent misuse) affirmative defense. On January 14, 2000, Bell Atlantic filed a motion for summary judgment on Covad’s eighth (Telecommunications Act) affirmative defense. On January 20, 2000, Covad filed a motion for summary judgment of nonin-fringement of claims 1, 5, 7, 8, 9, and 21 of the ’786 patent. On January 27, 2000, Covad filed a motion for summary judgment on its eighth (Telecommunications Act) affirmative defense. A hearing was held on these motions on February 11, 2000. On February 18, 2000, the Court sent a letter to the parties as a courtesy to inform them of the Court’s decision to grant Covad’s motion for summary judgment of noninfringement. On February 25, 2000, Bell Atlantic filed a motion for leave to file a supplemental memorandum establishing that Covad’s own experts reject and contradict Covad’s key nonin-fringement argument. For the reasons set forth below, Covad’s motion for summary judgment of noninfringment is GRANTED. The remaining motions for summary judgment are moot in light of the Court’s ruling on Covad’s motion for summary judgment of noninfringement. Accordingly, these motions need not be addressed by the Court. Bell Atlantic’s motion for leave to file a supplemental memorandum is DENIED.

Factual and Procedural Background I. The Lawsuit

Bell Atlantic filed its application for U.S. Patent No. 5,812,786 (“the ’786 patent”) with the United States Patent and Trademark Office (“PTO”) on June 21, 1995. The patent is entitled ‘Variable Rate and Variable Mode Transmission System,” and describes asymmetrical digital subscriber line interface units operating at variable rates and in variable modes (ADSL/AVR) over a local loop. The PTO allowed the claims in the ’786 patent on October 15, 1997. The patent was issued on September 22, 1998. Specifically, the ’786 patent contains two independent claims at issue in this case k claim 1 and claim 21.

Independent claim 1 recites the following:

A transmission system for variably transmitting information data in a plurality of different modes over a network, said transmission system comprising: a first transceiver, connected to a first end of a subscriber loop, for selectively *486 operating in one of said plurality of 1 different modes, said first transceiver transmitting or receiving signals, at a first transmission rate, on a first channel, and transmitting or receiving signals, at a second transmission rate, on a second channel, in each of said plurality of different modes;
a second transceiver, connected to said first transceiver via said subscriber loop, for selectively operating in one of said plurality of different modes, said second transceiver transmitting or receiving said first channel signals at said first transmission rate on said first channel and transmitting or receiving said second channel signals at said second transmission rate on said second channel; and
a controller connected to said first transceiver for selectively changing said first and second transmission rates.

Col. 17,11. 5-23.

Independent claim 21 states the following:

An ADSL/AVR transmission system for variably transmitting information data over a plurality of channels, comprising: a first ADSL/AVR transceiver for transmitting or receiving signals at a first transmission rate on a first channel, and transmitting or receiving signals at a second transmission rate on a second channel;
a second ADSL/AVR transceiver for transmitting or receiving signals at said first transmission rate on said first channel and transmitting or receiving said second channel signals at said second transmission rate on said second channel; and
a subscriber loop for connecting said first and second ADSL/AVR transceivers together; wherein each of said first and second ADSL/AVR transceivers includes a controller for selectively changing the transmission rates on said first and second channels.

Col. 19,11. 27-44.

The Telecommunications Act of 1996, Pub.L. No. 104-104, 110 Stat. 56, requires companies such as Bell Atlantic (“incumbent local exchange carriers” or “ILECs”) to provide access to their network to any competitive local exchange carrier (“CLEC”). Pursuant to this statute, Bell Atlantic and Covad, a CLEC that provides digital subscriber line (“DSL”) services, have negotiated a series of “interconnection” agreements, on a state-by-state basis, affording Covad access to Bell Atlantic’s network and allowing it to collocate equipment in Bell Atlantic’s central offices. Bell Atlantic offers its “InfoSpeed DSL” service in Northern Virginia and elsewhere throughout the Mid-Atlantic and Northeastern states. See Complaint, at ¶ 11. Covad did not even come into existence until 1996, and it did not begin to offer commercial services until December 1997, well after the application had been filed for what would become the ’786 patent.

In May of 1999, eight months after the ’786 patent issued, and two weeks after Covad filed an antitrust action alleging that Bell Atlantic is seeking to monopolize the markets related to DSL services, 2 Bell Atlantic brought this action to enforce its patent against Covad. Having originally identified three of the 26 patent claims as infringed by Covad (claims 1, 5, and 7), Bell Atlantic subsequently asserted infringement of three additional claims (claims 8, 9, and 21). Bell Atlantic asserts that Covad currently offers the Teles-peed® and Telesurfer SM DSL services 3 in *487 direct competition with Bell Atlantic’s DSL services in Northern Virginia and elsewhere in the United States. See Complaint, at ¶ 13. Covad has made no effort to obtain a license for the ’786 patent and is not presently licensed under the patent. See id. In essence, this dispute centers around Bell Atlantic’s assertion that Co-vad’s DSL service infringes on Bell Atlantic’s ’786 patent. If the Court interprets the disputed claim terms as argued by Covad in its motion for summary judgment of noninfringement, the ultimate conclusion would be that Covad’s DSL services employ technology that is different from, and, therefore, not covered by Bell Atlantic’s ’786 patent. As a result, no infringement could occur since Covad is utilizing technology that is beyond the scope of Bell Atlantic’s “right to exclude” as defined by, and limited to the claims in the ’786 patent.

II. The Technology 4

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Cite This Page — Counsel Stack

Bluebook (online)
92 F. Supp. 2d 483, 2000 WL 354192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bell-atlantic-network-services-inc-v-covad-communications-group-inc-vaed-2000.