Bright Data Ltd. v. Bi Science (2009) Ltd.

CourtCourt of Appeals for the Federal Circuit
DecidedAugust 30, 2023
Docket20-2118
StatusUnpublished

This text of Bright Data Ltd. v. Bi Science (2009) Ltd. (Bright Data Ltd. v. Bi Science (2009) Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bright Data Ltd. v. Bi Science (2009) Ltd., (Fed. Cir. 2023).

Opinion

Case: 20-2118 Document: 128 Page: 1 Filed: 08/30/2023

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

BRIGHT DATA LTD., Plaintiff-Cross-Appellant

v.

BI SCIENCE (2009) LTD., Defendant-Appellant

BI SCIENCE INC., Defendant ______________________

2020-2118, 2020-2181, 2021-1664, 2021-1667 ______________________

Appeals from the United States District Court for the Eastern District of Texas in No. 2:18-cv-00483-JRG, Chief Judge J. Rodney Gilstrap. ______________________

Decided: August 30, 2023 ______________________

ROBERT M. HARKINS, JR., Cherian LLP, Berkeley, CA, argued for plaintiff-cross-appellant. Also represented by KORULA T. CHERIAN; RONALD WIELKOPOLSKI, Washington, DC; COLBY DAVIS, Allen & Overy LLP, Washington, DC.

MICHAEL A. CHARISH, Charish Law Group PC, New York, NY, argued for defendant-appellant. Also argued by Case: 20-2118 Document: 128 Page: 2 Filed: 08/30/2023

2 BRIGHT DATA LTD. v. BI SCIENCE (2009) LTD.

WILLIAM MILLIKEN, Sterne Kessler Goldstein & Fox, PLLC, Washington, DC. Also represented by JOHN CHRISTOPHER ROZENDAAL,. ______________________

Before PROST, SCHALL, and HUGHES, Circuit Judges. PROST, Circuit Judge. Bright Data Ltd. (“Bright Data”)1 sued BI Science (2009) Ltd. and BI Science Inc. (individually or collectively, “BI Science”) 2 for patent infringement in the Eastern Dis- trict of Texas. The district court entered final judgment that: (1) incorporated all terms of the parties’ mediated set- tlement agreement; (2) incorporated all terms of the arbi- tration award (the product of an arbitration that followed the district court’s enforcement of the settlement); and (3) held claim 108 of U.S. Patent No. 9,241,044 (“the ’044 patent”) invalid as indefinite. J.A. 3. BI Science appeals, arguing that the district court erred by finding an enforce- able agreement. Bright Data cross-appeals the district court’s determination that claim 108 of the ’044 patent is invalid as indefinite. We affirm. BACKGROUND Bright Data brought claims of patent infringement— asserting the ’044 patent and U.S. Patent No. 9,742,866 (“the ’866 patent”)—and false advertising against BI

1 Bright Data was formerly known as Luminati Net- works Ltd. Order (June 9, 2021), ECF No. 40. 2 The district court indicated that it is unclear whether BI Science (2009) Ltd. and BI Science Inc. are merely two names for the same entity or whether the two entities are separate. J.A. 2 n.1. Case: 20-2118 Document: 128 Page: 3 Filed: 08/30/2023

BRIGHT DATA LTD. v. BI SCIENCE (2009) LTD. 3

Science. 3 J.A. 656–83; see also Am. Compl., Luminati Net- works Ltd. v. BI Sci. Inc., No. 2:18-cv-00483 (E.D. Tex. Feb. 19, 2019), ECF No. 28. BI Science, a company headquar- tered and with its principal place of business in Israel, moved to dismiss for lack of personal jurisdiction. J.A. 727–32. The district court denied that motion, deter- mining that it had specific personal jurisdiction over BI Science based on its purposeful contacts with Texas and the direct relationship between those contacts and its al- leged infringement and false advertising. J.A. 858–68. After its motion to dismiss was denied, BI Science an- swered and counterclaimed for declaratory judgment of in- validity. Answer to Am. Compl. and Countercl. ¶¶ 109– 114, Luminati Networks Ltd., No. 2:18-cv-00483 (E.D. Tex. May 28, 2019), ECF No. 85. Subsequently, as part of claim construction, claim 108 of the ’044 patent was determined to be invalid as indefinite. J.A. 1373–74, 1410. This deter- mination was later incorporated into the district court’s fi- nal judgment, J.A. 3, and is the subject of Bright Data’s cross-appeal. Following its claim construction order, the district court noted its “opinion that th[e] case could benefit from renewed mediation efforts” and ordered the parties to con- duct a mediation session within ten days. J.A. 1449. Nine- teen days later, on February 23, 2020, the parties filed a joint motion to stay and notice of settlement, which (1) stated “[t]he Parties hereby notify the Court that all matters in controversy between the Parties have been set- tled, in principle,” (2) requested a thirty-day stay “so that appropriate dismissal papers may be submitted,” and (3) was signed by counsel for Bright Data and BI Science. J.A. 1474–75. The district court granted the joint motion

3 Bright Data also brought claims of tortious inter- ference, J.A. 683, but the district court declined to exercise supplemental jurisdiction over those claims, J.A. 861–63. Case: 20-2118 Document: 128 Page: 4 Filed: 08/30/2023

4 BRIGHT DATA LTD. v. BI SCIENCE (2009) LTD.

to stay and cancelled the hearing set for the following day. J.A. 1477. The next day, the mediator also filed a report indicating that mediation had “resulted in settlement of all claims.” J.A. 1478. Bright Data moved to enforce the settlement about a month after the joint notice of settlement was filed. J.A. 1479–95. BI Science opposed with arguments related to why its performance should be excused. J.A. 1547–54. At a hearing on the motion to enforce, BI Science argued for the first time that there was no binding agreement be- tween the parties. The district court disagreed, determin- ing that “[i]t’s clear that the major points were agreed to and a meeting of the minds was reached at the time the Court was informed of the settlement.” J.A. 1694. And since “that resolution includes at a minimum a binding pro- vision that any unresolved issues . . . would be resolved by binding arbitration,” the court instructed the parties to ei- ther work together to resolve, or submit to arbitration to resolve, any outstanding issues related to the settlement terms. J.A. 1693–94. After arbitration, the district court entered final judg- ment that fully incorporated the settlement agreement and arbitration award. J.A. 3. The judgment also incorporated the court’s indefiniteness determination on claim 108 of the ’044 patent. Id. BI Science timely appealed. Bright Data timely cross-appealed. We have jurisdiction under 28 U.S.C. § 1295(a)(1). DISCUSSION BI Science raises two issues on appeal. First, it argues that the district court erred by denying its motion to dis- miss for lack of personal jurisdiction. Second, it argues that the district court erred by finding a binding agreement between the parties. As for the cross-appeal, Bright Data raises a single issue. It argues that the district court’s in- definiteness determination as to claim 108 of the ’044 pa- tent was erroneous. We address these issues in that order: Case: 20-2118 Document: 128 Page: 5 Filed: 08/30/2023

BRIGHT DATA LTD. v. BI SCIENCE (2009) LTD. 5

(1) personal jurisdiction; (2) existence of an enforceable agreement; and (3) indefiniteness. I Because jurisdiction is a threshold matter, we address it first. Unlike with subject-matter jurisdiction, a party can consent to personal jurisdiction. Ins. Corp. of Ir. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 702–04 (1982). BI Science dedicated significant briefing to its ar- gument that the district court erred by denying BI Sci- ence’s motion to dismiss for lack of personal jurisdiction. See Appellant’s Br. 21–38; Appellant’s Reply Br. 24–31. But BI Science also acknowledged that if we affirm the dis- trict court’s determination that a binding settlement agree- ment was formed, then the district court had personal jurisdiction over BI Science for purposes of enforcing that settlement agreement—i.e., it had consented to personal jurisdiction at least to that extent. Oral Arg. at 0:40–57.

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