Clear with Computers, LLC v. Dick's Sporting Goods, Inc.

21 F. Supp. 3d 758, 2014 U.S. Dist. LEXIS 32209, 2014 WL 923280
CourtDistrict Court, E.D. Texas
DecidedJanuary 21, 2014
DocketCASE NO. 6:12-CV-674
StatusPublished
Cited by3 cases

This text of 21 F. Supp. 3d 758 (Clear with Computers, LLC v. Dick's Sporting Goods, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clear with Computers, LLC v. Dick's Sporting Goods, Inc., 21 F. Supp. 3d 758, 2014 U.S. Dist. LEXIS 32209, 2014 WL 923280 (E.D. Tex. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

LEONARD DAVIS, UNITED STATES DISTRICT JUDGE

Before the Court are Defendants’ Motion for Judgment on the Pleadings (Docket Nos. 59, 60, 61, 63),1 and Defendants’ Motion to Stay Pending a Covered Business Method Review (Docket Nos. 83, 87, 89).2 On December 19, 2013, the Court heard oral arguments on the Motions. For the following reasons, Defendants’ Motion for Judgment on the Pleadings is GRANTED and Defendant’s Motion to Stay Pending Covered Business Method Review is DENIED AS MOOT.

BACKGROUND

Plaintiff Clear with Computers, LLC (“CWC”) asserts claims 1-4, 10 and 11 of U.S. Patent No. 8,266,015 (“the ‘015 Patent”) against Defendants.3 The ‘015 Patent is entitled “Inventory Sales System and Method” and is directed to a “system which facilitates sales from an inventory of the selling entity.” ‘015 Patent col. 1:15— 16. The ‘015 Patent issued September 11, 2012 and traces its priority to Application No. 08/879,070, which was filed on June 19, 1997.

The ‘015 Patent’s specification explains that sellers often prefer to sell from inventory rather than by selling custom orders. [762]*762Id. at col. 1:56-58. However, as the number of options, features or variations for a product increases, finding a specific product in inventory which meets the customer’s desires becomes difficult, and often sales representatives custom order the desired product instead of searching through existing inventory. Id. at col. 1:47-52. The invention attempts to solve this problem with computer technology that “allows a sales representative to review, select, and prepare a solution for the customer.” Id. at col. 6:23-27. The specification does not describe specific programming or hardware to accomplish this, but rather recites “any type of computer system” may be sufficient. Id. at col. 4:15-16. The claimed method broadly applies to environments where such computer related technology is used and selling products from an existing inventory may be desired, otherwise known as a technology-enabled selling environment. Id. at col. 3:38-39.

MOTION ON THE PLEADINGS

Independent claim 1 is a method claim comprising four steps. Id. at col. 13:36-47. The remaining asserted claims are method claims that depend from claim 1. Id. at col. 13:48-14:22. Defendants move for judgment on the pleadings that the ‘015 Patent is invalid for claiming ineligible subject matter under 35 U.S.C. § 101.

APPLICABLE LAW

A motion for judgment on the pleadings provides the Court with a method for summary adjudication of a defense after the pleadings are closed, but before trial. See Fed. R. Civ. P. 12(c). The standard for deciding a Rule 12(c) motion is the same as that for deciding a Rule 12(b)(6) motion to dismiss. Guidry v. Am. Pub. Life Ins. Co., 512 F.3d 177, 180 (5th Cir.2007). The Court “accepts all well-pleaded facts as true, viewing them in the light most favorable to the plaintiff.” Id. Thus, the Court determines whether the complaint alleges “enough facts to state a claim to relief that is plausible on its face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). A claim is facially plausible “when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). The Court must accept all factual allegations in the complaint as true and draw all reasonable inferences in favor of the non-movant. Erickson v. Pardus, 551 U.S. 89, 93-94, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007).

Eligible Subject Matter

Section 101 of the Patent Act defines the four broad categories of patentable subject matter as “any new and useful process, machine, manufacture, or composition of matter.” 35 U.S.C. § 101 (2006). “In choosing such expansive terms ... modified by the comprehensive ‘any,’ Congress plainly contemplated that the patent laws would be given wide scope.” Bilski v. Kappos, 561 U.S. 593, 130 S.Ct. 3218, 177 L.Ed.2d 792 (2010) (“Bilski II”) (quoting Diamond v. Chakrabarty, 447 U.S. 303, 308, 100 S.Ct. 2204, 65 L.Ed.2d 144 (1980)). Although Section 101 encompasses a broad domain of patentable subject matter, the Supreme Court has recognized three exceptions: “laws of nature, physical phenomena, and abstract ideas.” Chakrabarty, 447 U.S. at 309, 100 S.Ct. 2204.

Abstract ideas are deemed ineligible subject matter in order to prevent a “monopoly” over the idea that would “preempt” its use in all fields. Bilski II, 130 [763]*763S.Ct. at 3231; see also Gottschalk v. Benson, 409 U.S. 63, 67, 93 S.Ct. 253, 34 L.Ed.2d 273 (1972) (emphasizing that “abstract intellectual concepts are not patentable, as they are the basic tools of scientific and technological work”). However, while abstractness places subject matter outside the statutory categories, “inventions with specific applications or improvements to technologies in the marketplace are not likely to be so abstract that they override the statutory language and framework of the Patent Act.” Research Corp. Techs., Inc. v. Microsoft Corp., 627 F.3d 859, 869 (Fed.Cir.2010). Thus a claim may cover an application of an abstract idea but may not cover the abstract idea itself. Ultramercial, Inc. v. Hulu, LLC, 722 F.3d 1335, 1343 (Fed.Cir.2013).

Assessing whether a claim covers an abstract idea or its application involves two steps. First, the Court identifies what, if any, abstract idea is involved in the claim; and second, “whether meaningful limitations in the claim make it clear that the claim is not to the abstract idea itself, but to a non-routine and specific application of that idea.” Ultramercial, 722 F.3d at 1349 n. 2 (Fed.Cir.2013) (emphasis added); see also CLS Bank Int’l v. Alice Corp. Pty. Ltd., 717 F.3d 1269, 1282 (Fed.Cir.2013) (plurality opinion) cert. granted,— U.S. -, 134 S.Ct. 734, 187 L.Ed.2d 590 (2013)).

A “claim is not meaningfully limited if it merely describes an abstract idea or simply adds ‘apply it.’ ” Ultramercial, 722 F.3d at 1346; see also Mayo Collaborative Servs. v. Prometheus Labs., Inc., — U.S. -, 132 S.Ct. 1289, 182 L.Ed.2d 321 (2012).

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21 F. Supp. 3d 758, 2014 U.S. Dist. LEXIS 32209, 2014 WL 923280, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clear-with-computers-llc-v-dicks-sporting-goods-inc-txed-2014.