Cave Consulting Grp., Inc. v. Truven Health Analytics Inc.

293 F. Supp. 3d 1038
CourtDistrict Court, N.D. California
DecidedMarch 14, 2018
DocketCase No. 15–cv–02177–SI
StatusPublished
Cited by1 cases

This text of 293 F. Supp. 3d 1038 (Cave Consulting Grp., Inc. v. Truven Health Analytics Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cave Consulting Grp., Inc. v. Truven Health Analytics Inc., 293 F. Supp. 3d 1038 (N.D. Cal. 2018).

Opinion

SUSAN ILLSTON, United States District Judge

On March 2, 2018, the Court held a hearing on the motion by defendant Truven Health Analytics ("Truven") for attorneys' fees and nontaxable expenses related to Truven's defense against plaintiff Cave Consulting Group's ("CCGroup") assertion of U.S. Patent No. 8,340,981 ("the '981 patent"). For the reasons set forth herein, the Court GRANTS in part Truven's motion as to CCGroup's liability for fees under 35 U.S.C. § 285. Truven is directed to recalculate its fees in accordance with this Order, and resubmit its request and supporting documentation no later than April 6, 2018 . CCGroup may submit a response no later than April 13, 2018 , and Truven may submit a reply by April 20, 2018 . The Court will then take the matter under submission and issue an order shortly thereafter.

BACKGROUND

In December 2014, prior to filing this lawsuit, CCGroup sent Truven a letter listing the '981 patent, as well as five other *1041patents, and asserting that "certain of Truven's products generally relate to the technology described and claimed in CCGroup's patents." Dkt. No. 348-11. Among the other patents listed were U.S. Patent No. 7,739,126 ("the '126 patent"), U.S. Patent No. 8,768,726 ("the '726 patent"), and U.S. Patent No. 8,340,981 ("the '981 patent"). Id.

The '126 patent issued from U.S. Patent Application No. 10/794,216 ("the '216 application"), having an effective filing date of March 2, 2004. Dkt. No. 358-8 ('126 Patent at cover page). The application giving rise to the '981 patent, U.S. Patent Application No. 13/012,219 ("the '219 application"), was filed on January 24, 2011, as a continuation-in-part ("CIP")1 of another application that was in turn a continuation2 of the '216 application. Dkt. No. 1-1 ('981 Patent at cover page). The '981 patent claims priority to the '216 application. Id. The '726 patent was filed in 2013, and claims priority to the '216 and the '219 applications. Dkt. No. 1-2 ('726 Patent at cover page).

On May 14, 2015, CCGroup filed this lawsuit alleging that Truven infringed numerous claims of the '726 patent and claims 13 and 20 of the '981 patent. Dkt. No. 1. In its infringement contentions, CCGroup expressed its intent to "claim a priority date at least as early as March 2, 2004" for all asserted claims, and identified "its own Marketbasket System as practicing at least claims 13 and 20 of the '981 patent...." Dkt. No. 348-6 at 3:18-22. In response to Truven's interrogatories, CCGroup again stated that the "asserted claims are entitled to a priority date of March 2, 2004" and identified the "Marketbasket System as practicing and/or embodying the limitations of the asserted claims." Dkt. No. 348-5 at 4:19-5:2. CCGroup later stated in its response to Truven's Request for Admissions that "its own system, which existed prior to March 2, 2004, used medical claims data to form episodes of care." Dkt. No. 348-7 at 3:3-4. It is not disputed that as early as March 14, 2006, CCGroup made its Marketbasket System publicly available. Dkt. No. 348-8.

On November 13, 2015, Truven served its invalidity contentions on CCGroup. Dkt. No. 362-3. In those contentions, Truven asserted that the priority date for the '981 patent was the filing date of the '981 patent application, January 24, 2011, and that the priority date could not be March 2, 2004, because (a) the '981 patent issued from a CIP of an earlier application and (b) the patent claims encompassed new matter not disclosed in the earlier applications. Dkt. No. 362-3. Specifically, Truven asserted,

The '981 patent was filed on January 24, 2011 as a continuation-in-part of application No. 12/769,090 ("the '090 application"), filed on April 28, 2010, now abandoned. The '090 application is a continuation of application No. 10/794,216 ("the '216 application"), filed on March 5, 2004, now issued as U.S. Patent Number 7,739,126.3
*1042In order for the '981 patent to claim priority to the '090 and '216 applications, the claims in the '981 patent must be "supported by the specification and claims of the parent application." M.P.E.P. § 706.02(VI) ; see also Cordance Corp. v. Amazon.com, Inc. , 658 F.3d 1330, 1334-1335 (Fed. Cir. 2011).
The claims in the '981 patent are not supported by the specification and claims of the parent applications. For example, all independent claims in the '981 patent include at least the new matter directed to "variable window periods" and "static window periods." See U.S. Pat. No. 8,340,981, claims 1, 11, 12, 13, 20, 21, col. 45, l. 44-col. 48, l. 5, Figs. 3-5. This new matter directed to "variable window periods" and "static window periods" is not mentioned, disclosed, or supported in the parent '090 and '216 applications.
Thus, all claims in the '981 patent"have an effective filing date equal to the filing date of the new application," which is January 24, 2011. See M.P.E.P. § 706.02(VI).

Id.

Five days later, on November 18, 2015, CCGroup filed an amended complaint that continued to allege that the '981 patent was valid and that Truven infringed it. Dkt. No. 44 at ¶¶ 10, 17. CCGroup also attached as an exhibit a Certificate of Correction ("Certificate") for the '981 patent issued by the U.S. Patent and Trademark Office ("PTO") on September 22, 2015.4 Id. at ¶ 8. The Certificate corrected a phrase in claim 13, one of the claims asserted in this case, to replace "variable window periods episodes of care" with "variable window periods to identify episodes of care." Dkt. No. 44-2.

On October 12, 2016, Truven informed CCGroup that the priority date for the '981 patent was January 24, 2011, and that the CCGroup Marketbasket System therefore invalidates its patent under 35 U.S.C. § 102

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
293 F. Supp. 3d 1038, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cave-consulting-grp-inc-v-truven-health-analytics-inc-cand-2018.