Chewy, Inc. v. International Business Machines Corporation

CourtDistrict Court, S.D. New York
DecidedApril 11, 2022
Docket1:21-cv-01319
StatusUnknown

This text of Chewy, Inc. v. International Business Machines Corporation (Chewy, Inc. v. International Business Machines Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chewy, Inc. v. International Business Machines Corporation, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -----------------------------------x CHEWY, INC., : : Plaintiff, : : 21-cv-1319 (JSR) -v- : : OPINION AND ORDER INTERNATIONAL BUSINESS MACHINES : CORPORATION, : Defendant. : : -----------------------------------x

JED S. RAKOFF, U.S.D.J.

This suit concerns a number of patents that claim improvements to web-based technologies. Before the Court are the motion for summary judgment of plaintiff Chewy, Inc. and the cross-motion for partial summary judgment of defendant International Business Machines Corporation (“IBM”). After careful consideration of the briefs and applicable law, the Court grants Chewy’s motion in full and denies IBM’s motion as moot. BACKGROUND The Court here assumes the parties’ familiarity with the facts and prior proceedings of this case. As relevant here, after IBM sent Chewy a July 6, 2020 letter alleging that Chewy infringed four of IBM’s patents by operation of its website, Chewy.com, and mobile applications, the parties exchanged letters and competing claim charts for several months. Chewy then filed the instant action on February 15, 2021, seeking a 1 declaratory judgment of non-infringement as to those four patents – U.S. Patent Nos. 7,072,849 (the “’849 patent”), 9,569,414 (the “’414 patent”), 7,076,443 (the “’443 patent”), and 6,704,034 (the “’034 patent”). On April 19, 2021, IBM filed its answer along with counterclaims for infringement of those same four patents.

Then, on May 24, 2021, IBM filed its amended answer and added a counterclaim for infringement of a fifth patent – U.S. Patent Nos. 7,496,831 (the “’831 patent”) Chewy moved to dismiss four of IBM’s infringement counterclaims, arguing that IBM did not plausibly allege infringement of two of the patents and that the claims of each of the four patents are invalid as abstract ideas under 35 U.S.C. § 101. The Court denied plaintiff’s motion by bottom- line order dated August 4, 2021 and issued an opinion setting forth the reasons for that order on August 23, 2021. See ECF No. 66 (Chewy, Inc. v. Int’l Bus. Machines Corp., 2021 WL

3727227, at *1 (S.D.N.Y. Aug. 23, 2021)). On August 18, 2021, Chewy filed its answer to IBM’s counterclaims. On October 8, 2021, following extensive briefing, the Court conducted a lengthy Markman hearing in connection to the parties’ claim construction disputes, including Chewy’s contentions of indefiniteness as to certain of the asserted claims. The Court subsequently issued its Markman Order, 2 adopting various claim constructions and holding the one independent claim of the ’414 patent to be invalid for indefiniteness. See ECF No. 90 (“Markman Order”) (Chewy, Inc. v. Int’l Bus. Machines Corp., 2021 WL 5225685, at *1 (S.D.N.Y. Nov. 9, 2021)). Chewy now moves for summary judgment on IBM’s remaining

infringement claims, arguing that there is no genuine issue of material fact that Chewy does not infringe any of the asserted claims as well as that all of the asserted claims of the ’443 and ’849 patents are invalid. IBM cross-moves for partial summary judgment of no anticipation or obviousness for the asserted claims of the ’831 patent. THE PATENTS I. The ’849 Patent The ’849 patent claims a method for presenting advertising to a user of an interactive service in a manner intended “to minimize interference with retrieval and presentation of

application data” by, among other things, “storing and managing” such advertising at the user’s reception system — that is, the user’s terminal — before it is “called [for] by the respective user reception system.” ECF No. 1-1 (“Patent ’849”) at 1:16-28, 3:37-42. The patent also claims a method of “individualizing the advertising supplied to enhance potential user interest by 3 providing advertising based on a characterization of the user as defined by the user[’]s interactions with the service, user demographic and geographical location.” Id. at 3:24-29; see also id. at 3:54-56 (the selected advertisements are “individualized to the user based on, as noted, the user’s prior interaction history with the service, demographics and

local[e]”). IBM is asserting claims 1, 2, 12, 14, and 18 of the ’849 patent. Claim 1, on which claim 2 depends, recites as follows: 1. A method for presenting advertising obtained from a computer network, the network including a multiplicity of user reception systems at which respective users can request applications, from the network, that include interactive services, the respective reception systems including a monitor at which at least the visual portion of the applications can be presented as one or more screens of display, the method comprising the steps of: a. structuring applications so that they may be presented, through the network, at a first portion of one or more screens of display; and b. structuring advertising in a manner compatible to that of the applications so that it may be presented, through the network, at a second portion of one or more screens of display concurrently with applications, wherein structuring the advertising includes configuring the advertising as objects that include advertising data and; c. selectively storing advertising objects at a store established at the reception system. Id., claim 1. Unasserted claim 8, on which claim 12 depends, recites as follows: 4 8. A method for presenting advertising in a computer network, the network including a multiplicity of user reception systems at which respective users can request applications that include interactive services, the method comprising the steps of: a. compiling data concerning the respective users; b. establishing characterizations for respective users based on the compiled data; and c. structuring advertising so that it may be selectively supplied to and retrieved at the reception systems for presentation to the respective users in accordance with the characterizations established for the respective reception system users, wherein structuring advertising includes supplying advertising data to the reception system and storing a predetermined amount of the advertising data in a store established at the respective reception systems. Id., claim 8. Finally, claim 14, on which claim 18 depends, recites as follows: 14. A method for presenting advertising obtained from a computer network, the network including a multiplicity of user reception systems at which respective users can request applications from the network that include interactive services, the respective reception systems including a monitor at which at least the visual portion of the applications can be presented as one or more screens of display, the method comprising the steps of: a. structuring applications so that a user requested application may be presented, through the network, at a first portion of one or more screens of display; b. separately structuring the advertising in a manner compatible to that of the applications so that advertising may be presented, through the network, at a second portion of one or more screens of 5 display concurrently with any one of a plurality of user requested applications, c. configuring the advertising as objects that include advertising data, and d. selectively storing advertising objects at a store established at the reception system. Id., claim 14. As reflected above, both independent claim 1 and independent claim 14 include a claim limitation of “selectively storing advertising objects at a store established at the reception system.” At the Markman hearing, the Court heard the parties’ arguments as to the proper construction of this claim limitation, with the primary dispute being “whether ‘advertising objects’ must be ‘pre-fetched,’” that is, whether “the user’s system must download and store the advertising in advance, before it is needed for viewing.” Markman Order at 8-9.

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Chewy, Inc. v. International Business Machines Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chewy-inc-v-international-business-machines-corporation-nysd-2022.