Cordance Corp. v. Amazon. Com, Inc.

658 F.3d 1330, 100 U.S.P.Q. 2d (BNA) 1230, 2011 U.S. App. LEXIS 19441
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 23, 2011
Docket2010-1502, 2010-1545
StatusPublished
Cited by19 cases

This text of 658 F.3d 1330 (Cordance Corp. v. Amazon. Com, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cordance Corp. v. Amazon. Com, Inc., 658 F.3d 1330, 100 U.S.P.Q. 2d (BNA) 1230, 2011 U.S. App. LEXIS 19441 (Fed. Cir. 2011).

Opinion

LINN, Circuit Judge.

Cordance Corporation (“Cordance”) filed a complaint with the United States District Court for the District of Delaware against Amazon.com, Inc. (“Amazon”) alleging that Amazon infringed, among others, U.S. Patent Nos. 5,862,325 (“the '325 Patent”), 6,088,717 (“the '717 Patent”), and 6,757,710 (“the '710 Patent”). The jury reached a verdict that Amazon infringes claims 1, 3, 5, 7, and 8 of the '710 Patent; that all the asserted claims of the '710 Patent are invalid; and that Amazon does not infringe any of the asserted claims of the other patents-in-suit. The district court then granted Cordance’s post-verdict JMOL motion that insufficient evidence supported a finding that: (1) claims 7-9 of the '710 Patent lack written description support; (2) claims 1-3, 5, and 7-9 of the '710 Patent are invalid as anticipated; and (3) claims 1, 3, 5, 7, and 8 of the '710 Patent are invalid under § 102(f). Cordance Corp. v. Amazon.com, Inc., 687 F.Supp.2d 449 (D.Del.2010) (“JMOL Opinion”). The district court denied Cordance’s post-verdict JMOL motions as to the '325 and '717 Patents. Id. Amazon appeals and Cor-dance cross-appeals. For the reasons explained below, this court reverses the district court’s JMOL determination that claims 1, 3, 5, 7, and 8 of the '710 Patent are not invalid, vacates the district court’s JMOL determination that claim 9 is not invalid, and affirms the district court’s judgment as to the '325 and '717 Patents. As a result, each asserted claim of the '710 Patent is invalid and the asserted claims of the '325 and '717 Patent remain valid and not infringed.

I. Background

A. Technology

The '710 Patent, titled “Object-Based On-Line Transaction Infrastructure,” covers an online purchasing system. Independent claim 1 of the '710 Patent is exemplary and recites:

1. A computer implemented method comprising:
*1332 providing customer data storing information for a customer usable to automatically complete an online purchase of an item from a seller; providing the customer with information from the seller with respect to an item; receiving from the customer an indication to initiate a purchase transaction for purchasing the item including metadata associating said customer data with said transaction;
in response to the received indication, automatically completing the purchase of an item from the seller by processing said metadata associating said customer data so as to complete the purchase transaction,

col. 144 ll. 37-52.

Independent claim 7 of the '710 Patent, the only other independent claim, is similar to claim 1 except that “information provider” replaces “customer,” “information consumer” replaces “seller,” and “indication to complete” replaces “indication to initiate.” The '710 Patent is a continuation of the '717 Patent.

The '717 and '325 Patents (collectively, “the Feedback Patents”), both titled “Computer-Based Communication System and Method Using Metadata Defining a Control-Structure,” cover computerized feedback systems. The '717 Patent is a continuation of the '325 Patent. Independent claim 109 of the '325 Patent is exemplary and recites:

109. A computer-based communication method, comprising operating one or more computers to communicate by performing the steps of:
in a provider memory, storing information including provider information;
in a consumer memory, storing information including consumer information;
creating metadata describing associations with portions of said information and defining a control structure which is processed at least at said consumer memory to associate one or more processes for controlling communications of said associated information, said meta-data including data exchange metadata associating a process for controlling the transfer or feedback information, said feedback information including at least a portion of said consumer information, to said provider memory;
transferring said information, including said metadata defining said control structure, from said provider memory to said consumer memory;
processing said metadata to execute instructions external to said control structure to perform said processes; and
communicating said feedback information from said consumer memory to said provider memory,

col. 158 ll.17-41.

B. Accused Products

Cordance accused Amazon’s “1-Click®” (“1-Click”) purchasing features of infringing claims 1-3, 5, and 7-9 of the '710 Patent. Amazon’s customers can store payment information and shipping addresses in their Amazon customer accounts. This information can then be retrieved later when that customer uses the 1-Click features. Cordance also alleged that Amazon’s features allowing customers to enter reviews of products for sale on Amazon’s website and to enter reviews of transactions with third-party sellers infringe the Feedback Patents.

C. Procedural History

After the district court construed the claims, Cordance Corp. v. Amazon.com, Inc., 636 F.Supp.2d 310 (D.Del.2008), ECF No. 279 (“Claim Construction Order”), a jury trial was conducted in August 2009. At trial, Cordance’s expert, Dr. Shamos (“Shamos”), explained how Amazon’s 1-Click features infringed the asserted *1333 claims of the '710 Patent. Amazon’s expert, Dr. Alvisi (“Alvisi”), presented evidence that all asserted claims of the '710 Patent were invalid for derivation and for failure to satisfy the written description requirement and that claims 1, 3, 5, 7, and 8 were also invalid as anticipated.

The jury rendered a verdict concluding that Amazon infringed claims 1, 3, 5, 7, and 8 of the '710 Patent, but that claims 1-3, 5, and 7-9 of the '710 Patent were invalid. The verdict form did not specify the basis for the invalidity finding. The jury also found that Amazon’s feedback features did not infringe any claims of the Feedback Patents.

Cordance filed post-verdict motions for JMOL and a new trial. Cordance sought, among other things, judgment of non-invalidity of the asserted claims of the '710 Patent and challenged the court’s construction of “feedback information” as recited in the asserted claims of the Feedback Patents. The district court granted JMOL that Amazon failed to provide sufficient evidence to support a finding that (1) claims 7-9 of the '710 Patent lacked written description; (2) claims 1-3, 5, and 7-9 of the '710 Patent are invalid as anticipated; and (3) claims 1, 3, 5, 7, and 8 of the '710 Patent are invalid under § 102(f). JMOL Opinion at 463-80. The court denied Cordance’s motion challenging the construction of “feedback information.” Id. at 481-83.

Amazon appeals the district court’s grant of Cordance’s JMOL motion and seeks to restore the jury’s verdict that each asserted claim of the '710 Patent is invalid.

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Bluebook (online)
658 F.3d 1330, 100 U.S.P.Q. 2d (BNA) 1230, 2011 U.S. App. LEXIS 19441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cordance-corp-v-amazon-com-inc-cafc-2011.