Chrimar Systems, Inc. v. Ruckus Wireless Inc.

District Court, N.D. California·Decided July 31, 2020·No. 3:16-cv-00186·Unknown

Opinion

CHRIMAR SYSTEMS INC, et al., Case Nos. 16-cv-00186-SI, 16-cv-00558- SI, 16-cv-00624-SI, 16-cv-00897-SI Plaintiffs,

v. ORDER GRANTING DEFENDANTS’ MOTIONS FOR SUMMARY Defendant. Re: Dkt. Nos. 144, 146

Before the Court are defendants’ Motions for Summary Judgment. Dkt. No. 144 (Defs’ ‘760 MSJ); Dkt. No. 146 (Defs’ ’825 MSJ).1 Having reviewed the parties’ submissions, the Court hereby GRANTS both motions pursuant to Fed. R. Civ. P. 56. Plaintiff Chrimar Systems Inc. and Chrimar Holding Company LLC (collectively, “Chrimar”) filed patent infringement actions against Juniper Networks Inc. (“Juniper”), Ruckus Wireless Inc. (“Ruckus”), Netgear Inc. (“Netgear”), and Fortinet Inc. (“Fortinet”) (collectively, “defendants”) on July 1, 2015, in the Eastern District of Texas. See Dkt. No. 1 (Complaint). The complaint alleged infringement of four patents held by Chrimar: U.S. Patent Nos. 8,115,012 (“’012 patent”), 8,942,107 (“’107 patent”), 8,902,760 (“’760 patent”), and 9,019,838 (“’838 patent”). Id. The patents generally relate to ethernet connection technology. Id. In December 2015, the actions were transferred to the Northern District of California. Dkt. No. 89 (Response to Motion to Stay). 1 Chrimar filed suit against each defendant creating four separate suits. The Motion for Summary Judgment for the ’760 patent is the same across all four suits. For convenience, the On July 8, 2016, defendant Juniper filed petitions for Inter Partes Review (“IPR”) of the four patents and was later joined by defendants Ruckus and Netgear. Dkt. No. 126 at 2 (CMC Statement). Specifically, Juniper, Ruckus and Netgear challenged original claims 73 and 145 in the ’760 patent. Dkt. No. 144 at 5 (Defs’ ‘760 MSJ). On September 26, 2016, this Court stayed the patent infringement actions until the Patent Trial and Appeal Board (“PTAB”) reached final written decisions with respect to the four IPR petitions. Dkt. No. 96 at 10 (Order Granting Motion to Stay). An ex parte reexamination was filed by a third party on the ’760 patent prior to the PTAB’s final written decision, and claims 73-100, 104-169, and 173-219 were amended and found patentable; amended claims 73 and 145 are of particular relevance for the instant motion regarding the ’760 patent. Dkt. No. 122 at 2; see Dkt. No. 144 at 5 (Defendants’ ‘760 MSJ). Claim 145’s amendments modified the claim’s dependencies but did not otherwise change the language of claim 145 itself. Compare Dkt. No. 149 at 8 with Dkt. No. 144 at 3-4. Amended claim 145 reads:

The BaseT Ethernet system according to any one of claims 73, 82- 91, 94-100, 104- 107, 108-121, 127-132, 134-139, or 140-144 wherein the piece of BaseT Ethernet terminal equipment is a powered-off piece of BaseT Ethernet equipment. Dkt. No. 144 at 3-4 (amended claim 145 in the ’760 patent no longer depends on claims 101-103). Claim 73’s amendments included the additional limitation of “the piece of central network equipment is a BaseT Ethernet hub[.]” Dkt. No. 144 at 3 (Defs’ ‘760 MSJ). The PTAB did not review the ’760 patent’s amended claims that were found patentable during the ex parte reexamination, including claims 73 and 145. Dkt. No. 144 at 4 (Defs’ ‘760 MSJ). On April 26, 2018, the IPR proceeding found original claim 73 and 145 in the ’760 patent invalid based on prior art. Dkt. No. 144 at 5 (Relevant prior arts include Hunter et al., PCT Publication No. WO 96/23377 (published Aug. 1, 1996) (“Hunter”) and Bulan et al., U.S. Patent No. 5,089,927 (issued Feb. 18, 1992) (“Bulan”)) (Defendants’ ‘760 MSJ). Chrimar appealed all four of the PTAB’s final written decisions to the U.S. Court of Appeals for the Federal Circuit. Dkt. No. 126. The Federal Circuit upheld the PTAB decision, including that original claims 73 and 145 of the ‘760 patent were invalid based on prior art. Id. Chrimar filed a petition for Writ of Certiorari in the United States Supreme Court challenging the Federal Circuit’s affirmations. Id. On February On March 21, 2019, Chrimar sent letters to each of the defendants’ outside counsel alleging infringement of U.S. Patent No. 9,812,825. Dkt. No. 146 at 8 (Defs’ ’825 MSJ). The letter states, in relevant part:

As you know, we represent Chrimar Holding Company, LLC and Chrimar Systems, Inc. (collectively, “Chrimar”) in connection with certain intellectual property matters, including Chrimar’s lawsuit with Juniper Networks Inc. (“Juniper”). I write to inform you that besides the Chrimar patents already asserted against Juniper, Juniper also infringes U.S. Patent No. 9,812,825 (“the ’825 patent,” attached). Chrimar contends that at least the following products sold by Juniper (identified by product type and model number) infringe at least one claim of the ’825 patent. Id. (the letters to the defendants are substantively the same). In the letters, Chrimar lists defendants’ products that allegedly infringe at least one claim of the ’825 patent’s 68 claims. Dkt. No. 146 at 6 n.2 (Chrimar listed 98 Juniper products, 70 Netgear products, 47 Fortinet products, and 32 Ruckus products) (Defendants’ ’825 MSJ). On May 23, 2019, the ’825 patent expired. Id. at 8. On December 16, 2019, this Court lifted the stay. Dkt. No. 123 (Order Lifting Stay). On February 7, 2020, Chrimar filed its third amended complaint (“TAC”) across all four lawsuits, alleging four causes of action for infringement of: (1) the ’107 Patent, (2) the ’760 Patent, (3) the ’838 Patent, and (4) the ’825 Patent. Dkt. No. 129 (TAC). Chrimar’s TAC pleaded infringement of the ’760 patent’s amended claim 145 and, for the first time, alleged infringement of the ’825 patent.2 Dkt. No. 129 at 3 (TAC). Chrimar argues defendants infringe claim 97+145 which has limitations based on claims 73, 95, 96, and 97. Id. Defendants filed a Motion to Strike, or in the alternative, to Dismiss the first cause of action of plaintiff’s TAC for infringement of the ’107 patent. Dkt. No. 131. The Court dismissed the ’107 patent cause of action with prejudice. Dkt. No. 136. On May 22, 2020, defendants filed the instant Motions for Summary Judgment. Dkt. No. 144 (Defs’ ‘760 MSJ); Dkt. No. 146 (Defs’ ’825 MSJ).

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Chrimar Systems, Inc. v. Ruckus Wireless Inc., (N.D. Cal. 2020).

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