CNET Networks, Inc. v. Etilize, Inc.

584 F. Supp. 2d 1260, 2008 U.S. Dist. LEXIS 84981, 2008 WL 4666839
District Court, N.D. California·Decided October 22, 2008·No. C 06-5378 MHP·Published·Cited by 4 cases

Opinion

MEMORANDUM & ORDER

MARILYN HALL PATEL, District Judge.

Plaintiff CNET Networks, Inc. (“CNET”) filed this action against defendant Etilize, Inc. (“Etilize”), alleging infringement of United States Patent No. 6,714,933 (“the '933 patent”) and its continuation-in-part, United States Patent No. 7,082,426 (“the '426 patent”) (together, “the patents-in-suit”). These patents generally relate to methods and processes of compiling information about consumer products into catalogued databases for online merchants. The court recently ruled on Etilize’s motion for summary judgment on non-infringement, granting the motion as to the '426 patent and denying the motion as to the '933 patent. Now before the court is Etilize’s motion for summary judgment of invalidity of both patents under 35 U.S.C. § 102(b) based on anticipation due to printed prior art. Etilize has also moved to amend its answer and counterclaims, to add an affirmative defense for inequitable conduct and new counterclaims for Walker Process fraud. CNET opposes both motions. Having considered the parties’ arguments and for the reasons stated below, the court enters the following memorandum and order.

BACKGROUND

Plaintiff CNET is a digital media company that provides customers with a central shopping portal from which they can search for product information and purchase products from a variety of vendors. Pl.’s Opening Brief at 4. Defendant Etilize is a company that markets and sells electronic product catalogs stored on a server. Hameed Dec. ¶ 6. CNET filed suit against Etilize on August 31, 2006, asserting claims for infringement of two patents related to methods and systems for aggregating product information to create electronic purchasing and cataloguing systems of goods and services. Further details regarding the parties’ background and the technology at issue in this action can be found in prior orders issued by the court. See, e.g., CNET Networks, Inc. v. Etilize, Inc., 528 F.Supp.2d 985 (N.D.Cal.2007) (“First Summary Judgment Order”) and CNET Networks, Inc. v. Etilize, Inc., 547 F.Supp.2d 1055 (N.D.Cal.2008) (“Claim Construction Order”), respectively.

On February 7, 2007, Etilize filed its original answer and counterclaims. On *1264 March 23, 2007, upon stipulation and leave of court, Etilize filed a first amended answer and counterclaims. On March 19, 2008, the court issued a stipulation and order modifying the case schedule and setting forth various deadlines, including the following: May 7, 2008 for Final Infringement Contentions; May 26, 2008 for Final Invalidity Contentions; and June 27, 2008 for close of fact discovery. On June 9, 2008, Etilize moved for summary judgment that its accused products do not infringe CNET’s '933 and '426 patents, either literally or under the doctrine of equivalents. The case schedule was again modified so that oppositions and replies to that motion were filed prior to the August 11, 2008 hearing.

On July 31, 2008, two days after filing its reply brief in support of its summary judgment motion for non-infringement, Etilize filed a second summary judgment motion for invalidity of claims 1 and 15 of the '933 patent and claims 1, 14, 16, 20, 23, 24, 39 and 52 of the '426 patent. 1 Etilize argues that those claims are invalid based on anticipation under 35 U.S.C. § 102(b), because the claimed subject matter was described in various Liaison Technology products and services that were available more than one year prior to April 10, 2002, the earliest effective filing date of the '933 application. At the same time, Etilize moved to amend its answer and counterclaims for a second time. Etilize alleged that new facts revealed through discovery established grounds to plead an affirmative defense for inequitable conduct and new counterclaims for Walker Process fraud. In particular, Etilize contends that CNET filed this lawsuit knowing that the '933 and '426 patents were invalid after having failed to provide available material information regarding invalidating prior art to the United States Patent and Trademark Office (“USPTO”).

Details of the asserted patents are provided in the court’s Claim Construction Order. The claims at issue in the present summary judgment motion are summarized below.

There are two claims at issue for the '933 patent. Claim 1 of the '933 patent claims as follows:

A method of aggregating product information for use in a product database including various products arranged in product categories, the product information being collected from a plurality of sources in a networked computer environment regarding products of a product category comprising the steps of:
generating a crawler from a server interconnected to the network computer environment to visit the plurality of sources;
gathering product phrase information from each of the plurality of sources via said crawler; and
determining whether at least one phrase of said product phrase information is a product characteristic associated with a product category; wherein said crawler utilizes computational linguistics to gather said product phrase information which includes a phrase and at least one characteristic of said phrase.

'933 patent at 18:49-65. Claim 15 depends upon the method of claim 1. If the independent claim is not found invalid for an *1265 ticipation, the dependent claim cannot be either.

There are eight claims at issue for the '426 patent — Claims 1,14,16, 20, 23, 24, 39 and 52. Of these only claims 1, 39 and 52 are independent while the rest are dependent.

Claim 1 of the '426 patent claims as follows:

A method of creating a product catalog stored on computer readable media by aggregating product information from a plurality of product information sources having disparate formats for product information and storing the information in a taxonomy, said method comprising:
processing plural product information records from the product information sources into one or more groups based on which product information records are likely to correspond to the same product;
correlating a unique product ID corresponding to the product associated with each of said groups to identify the product;
electronically comparing each identified product to categories of a taxonomy to determine a category for the identified products in the taxonomy; and
electronically parsing the product information records corresponding to each group to electronically determine attributes for each categorized product based on the product information records;
electronically generating product specifications based on the determined attributes; and

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CNET Networks, Inc. v. Etilize, Inc., 584 F. Supp. 2d 1260, 2008 U.S. Dist. LEXIS 84981, 2008 WL 4666839 (N.D. Cal. 2008).

584 F. Supp. 2d 1260 (CNET Networks, Inc. v. Etilize, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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