Blackbird Tech LLC v. Uber Technologies, Inc.

CourtDistrict Court, D. Delaware
DecidedJanuary 6, 2020
Docket1:19-cv-00561
StatusUnknown

This text of Blackbird Tech LLC v. Uber Technologies, Inc. (Blackbird Tech LLC v. Uber Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blackbird Tech LLC v. Uber Technologies, Inc., (D. Del. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

BLACKBIRD TECH d/b/a ) BLACKBIRD TECHNOLOGIES, ) ) Plaintiff, ) ) v. ) C.A. No. 19-561 (MN) ) UBER TECHNOLOGIES, INC., ) ) Defendant. ) BLACKBIRD TECH d/b/a ) BLACKBIRD TECHNOLOGIES, ) ) Plaintiff, ) ) C.A. No. 19-566 (MN) v. ) ) LYFT, INC., ) ) Defendant. )

MEMORANDUM ORDER

At Wilmington this 6th day of January 2020: As announced at the hearing on December 20, 2019, IT IS HEREBY ORDERED that: 1. Uber Technologies, Inc.’s (“Uber”) Motion to Dismiss for Failure to State a Claim (D.I. 11 in C.A. No. 19-561) is DENIED. 2. Lyft, Inc.’s (“Lyft”) Motion to Dismiss for Failure to State a Claim (D.I. 10 in C.A. No. 19-566) is DENIED. Defendants moved to dismiss the operative complaints in each of their actions pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, alleging that the claims of U.S. Patent No. 6,754,580 (“the ’580 Patent”) are invalid as claiming ineligible subject matter under 35 U.S.C. § 101 and also invalid as indefinite under 35 U.S.C. § 112. In their motions, Defendants also seek dismissal of Plaintiff’s allegations of direct infringement under Rule 12(b)(6) as insufficiently pleaded under the standards of Iqbal and Twombly. Defendants’ motions were fully briefed as of September 9, 2019,1 and the Court received further submissions in both cases regarding which Supreme Court or Federal Circuit case each party contends is analogous to the claims at issue in

Defendants’ motions as related to the § 101 arguments. (See D.I. 22, 23, 24 in C.A. No. 19-561; D.I. 17, 19, 20 in C.A. No. 19-566). The Court carefully reviewed all submissions in connection with Defendants’ motions, heard oral argument2 and applied the following legal standard in reaching its decision: I. LEGAL STANDARDS A. Motion to Dismiss for Failure to State a Claim In ruling on a motion to dismiss pursuant to Rule 12(b)(6), the Court must accept all well- pleaded factual allegations in the complaint as true and view them in the light most favorable to the plaintiff. See Mayer v. Belichick, 605 F.3d 223, 229 (3d Cir. 2010); see also Phillips v. Cnty. of Allegheny, 515 F.3d 224, 232-33 (3d Cir. 2008). “[A] court need not ‘accept as true allegations

that contradict matters properly subject to judicial notice or by exhibit,’ such as the claims and the patent specification.” Secured Mail Sols. LLC v. Universal Wilde, Inc., 873 F.3d 905, 913 (Fed. Cir. 2017) (quoting Anderson v. Kimberly-Clark Corp., 570 F. App’x 927, 931 (Fed. Cir. 2014)). Dismissal under Rule 12(b)(6) is only appropriate if a complaint does not contain “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)); see also Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009). “[P]atent eligibility can

1 (See D.I. 12, 19, 20 in C.A. No. 19-561; see also D.I. 11, 14, 15 in C.A. No. 19-566). 2 (See D.I. 26 in C.A. 19-561; D.I. 22 in C.A. No. 19-566). be determined at the Rule 12(b)(6) stage . . . when there are no factual allegations that, taken as true, prevent resolving the eligibility question as a matter of law.” Aatrix Software, Inc. v. Green Shades Software, Inc., 882 F.3d 1121, 1125 (Fed. Cir. 2018). B. Patent-Eligible Subject Matter

Section 101 of the Patent Act provides that anyone who “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. 35 U.S.C. § 101. The Supreme Court has long recognized three exceptions to the broad categories of subject matter eligible for patenting under § 101: laws of nature, physical phenomena, and abstract ideas. Alice Corp. Pty. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). These three exceptions “are ‘the basic tools of scientific and technological work’ that lie beyond the domain of patent protection.” Ass’n for Molecular Pathology v. Myriad Genetics, Inc., 569 U.S. 576, 589 (2013) (quoting Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 77-78 (2012)); see also Alice, 573 U.S. at 216. A claim to any one of these three categories is directed to ineligible subject matter under § 101. “[W]hether

a claim recites patent eligible subject matter is a question of law which may contain underlying facts.” Berkheimer v. HP Inc., 881 F.3d 1360, 1368 (Fed. Cir. 2018). Courts follow a two-step “framework for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts.” Alice, 573 U.S. at 217; see also Mayo, 566 U.S. at 77-78. First, at step one, the Court determines whether the claims are directed to one of the three patent-ineligible concepts. Alice, 573 U.S. at 217. If the claims are not directed to a patent-ineligible concept, “the claims satisfy § 101 and [the Court] need not proceed to the second step.” Core Wireless Licensing S.A.R.L. v. LG Elecs., Inc., 880 F.3d 1356, 1361 (Fed. Cir. 2018). If, however, the Court finds that the claims at issue are directed a patent-ineligible concept, the Court must then, at step two, search for an “inventive concept” – i.e., “an element or combination of elements that is ‘sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.’” Alice, 573 U.S. at 217-18 (alteration in original) (quoting Mayo, 566 U.S. at 72-73).

1. Step One of the Alice Framework At step one of Alice, “the claims are considered in their entirety to ascertain whether their character as a whole is directed to excluded subject matter.” Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1346 (Fed. Cir. 2015); see also Affinity Labs of Texas, LLC v. DIRECTV, LLC, 838 F.3d 1253, 1257 (Fed. Cir. 2016) (step one looks at the “focus of the claimed advance over the prior art” to determine if the claim’s “character as a whole” is to ineligible subject matter). In addressing step one of Alice, the Court should be careful not to oversimplify the claims or the claimed invention because, at some level, all inventions are based upon or touch on abstract ideas, natural phenomena, or laws of nature. Alice, 573 U.S. at 217; see also McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299, 1313 (Fed. Cir. 2016). “At step one, therefore, it is not

enough to merely identify a patent-ineligible concept underlying the claim; [courts] must determine whether that patent-ineligible concept is what the claim is ‘directed to.’” Rapid Litig. Mgmt. Ltd. v. CellzDirect, Inc., 827 F.3d 1042, 1050 (Fed. Cir. 2016). 2. Step Two of the Alice Framework At step two of Alice, in searching for an inventive concept, the Court looks at the claim elements and their combination to determine if they transform the ineligible concept into something “significantly more.” Alice, 573 U.S. at 218; see also McRO, 837 F.3d at 1312.

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

Related

Warner-Jenkinson Co. v. Hilton Davis Chemical Co.
520 U.S. 17 (Supreme Court, 1997)
Festo Corp. v. Shoketsu Kinzoku Kogyo Kabushiki Co.
535 U.S. 722 (Supreme Court, 2002)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Mayer v. Belichick
605 F.3d 223 (Third Circuit, 2010)
Rembrandt Data Technologies, LP v. AOL, LLC
641 F.3d 1331 (Federal Circuit, 2011)
Atmel Corporation v. Information Storage Devices, Inc.
198 F.3d 1374 (Federal Circuit, 1999)
Ipxl Holdings, L.L.C. v. Amazon.com, Inc.
430 F.3d 1377 (Federal Circuit, 2005)
Technology Licensing Corp. v. Videotek, Inc.
545 F.3d 1316 (Federal Circuit, 2008)
Phillips v. County of Allegheny
515 F.3d 224 (Third Circuit, 2008)
Fowler v. UPMC SHADYSIDE
578 F.3d 203 (Third Circuit, 2009)
Nautilus, Inc. v. Biosig Instruments, Inc.
134 S. Ct. 2120 (Supreme Court, 2014)
Anderson v. Kimberly-Clark Corporation
570 F. App'x 927 (Federal Circuit, 2014)
Internet Patents Corporation v. Active Network, Inc.
790 F.3d 1343 (Federal Circuit, 2015)
Enfish, LLC v. Microsoft Corporation
822 F.3d 1327 (Federal Circuit, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
Blackbird Tech LLC v. Uber Technologies, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/blackbird-tech-llc-v-uber-technologies-inc-ded-2020.