D2L LTD. v. Blackboard, Inc.

671 F. Supp. 2d 768, 2009 U.S. Dist. LEXIS 111827, 2009 WL 4348806
CourtDistrict Court, D. Maryland
DecidedDecember 2, 2009
DocketCivil No.: WDQ-09-1763
StatusPublished
Cited by239 cases

This text of 671 F. Supp. 2d 768 (D2L LTD. v. Blackboard, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D2L LTD. v. Blackboard, Inc., 671 F. Supp. 2d 768, 2009 U.S. Dist. LEXIS 111827, 2009 WL 4348806 (D. Md. 2009).

Opinion

MEMORANDUM OPINION

WILLIAM D. QUARLES, JR., District Judge.

D2L Ltd. and Desire2Learn, Inc. sued Blackboard, Inc. for a declaratory judgment of non-infringement and invalidity of U.S. Patent No. 7,558,853 (“the '853 patent”). Pending are Blackboard’s motions to dismiss for lack of subject matter juris *773 diction and to transfer the case to the Eastern District of Texas. Also pending are the Plaintiffs’ motions to correct the filing date of the complaint and to file a surreply to Blackboard’s motion to transfer. For the following reasons, Blackboard’s motion to dismiss will be granted in part and denied in part, and its motion to transfer will be granted. The Plaintiffs’ motions to correct the filing date of the complaint and to file a surreply will be denied.

I. Background

Desire2Learn, a Canadian corporation based in Ontario, develops and sells online course management (or “eLearning”) software. Compl. ¶4. D2L Ltd. — a wholly-owned subsidiary of Desire2Learn — is a Maryland corporation based in Baltimore. Id. ¶2. Blackboard — the Plaintiffs’ chief eLearning competitor — is a Delaware corporation based in Washington, DC. Id. ¶ 6. Blackboard is the larger company and has a greater share of the U.S. market. Id.

Blackboard filed an infringement suit against Desire2Learn in the Eastern District of Texas on July 26, 2006. Id. ¶ 9. The suit alleged that “all [Desire2Learn] products based on the D2L learning system or platform” infringed U.S. Patent No. 6,998,138 (“the '138 patent”), which had been issued to Blackboard on January 17, 2006. Id.; PL’s Opp., Guaragua Decl. Ex. 9. The court found that claims 1 through 35 of the patent were invalid as a matter of law, and a jury found that Desire2Learn infringed claims 36 though 38. 1

On February 17, 2009, Blackboard was issued U.S. Patent No. 7,493,396 (“the '396” patent), which is a continuation of the '138 patent. Compl. ¶ 12; Def.’s Mot. to Dismiss 4. On March 16, 2009, Blackboard sued Desire2Learn in the Eastern District of Texas for infringing the '396 patent. Compl. ¶ 13. This case is pending.

On March 10, 2009, Blackboard was issued Canadian Patent No. 2,378,200 (“the CA '200 patent”), the Canadian counterpart of the '138 patent. Id. ¶ 14. On April 24, 2009, Blackboard sued Desire2Learn in Canada for infringing that patent. Id. This case is also pending.

On April 20, 2009, Blackboard filed a complaint with the United States International Trade Commission (“ITC”), alleging that Desire2Learn’s products infringed the '138 patent and their importation violated 19 U.S.C. § 1337. Id. ¶ 15. The ITC’s investigation has been stayed during the appeal from the Texas '138 infringement suit. Guaragna Decl., Ex. 14.

On April 28, 2009, the Patent and Trademark Office issued a notice that the '853 patent would be issued to Blackboard on July 7, 2009. Id., Ex. 6. The '853 patent is a continuation of the '396 patent; they share the same subject matter and have been described as “very similar” by Blackboard. Id., Ex. 3; Def.’s Mot. to Dismiss 9; Def.’s Mot. to Transfer ¶ 3. Blackboard has alleged that the '853 and '396 patents cover the same Desire2Learn technology. Def.’s Mot. to Transfer ¶ 6.

Desire2Learn and D2L Ltd. expected that Blackboard would sue for infringement of the '853 patent. Pi’s Opp. to Mot to Dismiss 1. This expectation was based on Blackboard’s having asserted other members of the '138 family against Desire2Learn, PL’s Opp. 1, and on a statement by Blackboard’s General Counsel during settlement negotiations in a previous suit that Blackboard expected to add *774 more continuation patents to the '138 family. 2 Compl. ¶ 18; Def s Mot. to Dismiss, Small Decl. ¶ 10. Desire2Learn thought this statement implied that Blackboard planned to assert the '853 patent against Desire2Leam. Pl.’s Opp. to Mot. to Dismiss 9.

On June 29, 2009, Desire2Learn contacted Blackboard’s counsel to find out whether Blackboard planned to assert the '853 patent in the ITC suit. Def.’s Mot. to Dismiss, Nadel Decl. ¶ 5. Blackboard’s counsel responded that he did not know Blackboard’s plans. Id. ¶ 3-4. On July 6, 2009, Desire2Learn requested a “standstill agreement” with Blackboard, under which neither party would sue on the '853 patent for 30 days after its issuance. Def.’s Mot. to Dismiss, Nadel Decl. ¶ 5. Blackboard declined because it had not investigated whether Desire2Learn’s products infringed the '853 patent. Def.’s Mot. to Dismiss, Ex. B.

On July 7, 2009 3 , the Plaintiffs filed this complaint, which seeks a declaratory judgment that the '853 patent is invalid and has not been infringed. Paper No. 1. On August 10, 2009, Blackboard moved to dismiss for lack of subject matter jurisdiction. Paper No. 16. On September 15, 2009, Blackboard moved to transfer venue to the Eastern District of Texas. Paper No. 27. 4 On October 29, 2009, the Plaintiffs moved to file a surreply to Blackboard’s motion to transfer. Paper No. 34.

II. Analysis

A. Blackboard’s Motion to Dismiss for Lack of Subject Matter Jurisdiction

1. Standard of Review

The plaintiff has the burden of proving subject matter jurisdiction. See Richmond, Fredericksburg & Potomac R.R. v. United States, 945 F.2d 765, 768 (4th Cir.1991). When, as here, “the challenge is made, not to the sufficiency of the jurisdictional allegations, but to the underlying facts supporting those allegations, a trial court may go beyond the allegations of the complaint and may consider evidence by affidavit, depositions or live testimony without converting the proceeding to one for summary judgment.” Kim v. United States, 609 F.Supp.2d 499, 504 (D.Md.2009) (quoting Adams v. Bain, 697 F.2d 1213, 1219 (4th Cir.1982)) (internal quotation marks omitted).

2. Blackboard’s Motion

The Plaintiffs assert that this Court has subject matter jurisdiction under the De *775 claratory Judgment Act 5 (“the DJA”) and 28 U.S.C. § 1388. Blackboard counters that the Court lacks jurisdiction because this suit is not a “case” or “controversy” under Article III of the Constitution.

Under the DJA, “[i]n a case of actual controversy within its jurisdiction ... any court of the United States ... may declare the rights and other legal relations of any interested party seeking such declaration.” 28 U.S.C. § 2201

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671 F. Supp. 2d 768, 2009 U.S. Dist. LEXIS 111827, 2009 WL 4348806, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d2l-ltd-v-blackboard-inc-mdd-2009.