Datanet LLC v. Microsoft Corporation

CourtDistrict Court, W.D. Washington
DecidedJune 12, 2023
Docket2:22-cv-01545
StatusUnknown

This text of Datanet LLC v. Microsoft Corporation (Datanet LLC v. Microsoft Corporation) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Datanet LLC v. Microsoft Corporation, (W.D. Wash. 2023).

Opinion

1 2 3

4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 DATANET LLC, CASE NO. 2:22-cv-1545 8 Plaintiff, ORDER DENYING DEFENDANT’S 9 MOTION FOR JUDGMENT ON THE v. PLEADINGS 10 MICROSOFT CORPORATION, 11 Defendant. 12 13

14 Plaintiff Datanet LLC sued Defendant Microsoft Corporation, alleging Microsoft’s 15 OneDrive file-backup service infringed upon three patents held by Datanet. Microsoft moved to 16 dismiss the lawsuit, arguing the asserted patents aren’t patentable because they represent abstract 17 ideas and lack any inventive concept. Dkt. No. 36. The Court disagrees and DENIES Microsoft’s 18 motion for the reasons stated below. 19 BACKGROUND 20 In 2018, Plaintiff Datanet LLC purchased the rights to a portfolio of patents from the 21 software company IPCI, Inc. Dkt. No. 1 at 3. Two decades before, IPCI attempted to “develop an 22 automated, real-time zero-touch data safety, backup, and recovery software product.” Id. 23 Although it never marketed or sold a finished product, IPCI secured several patents that, at a 24 high level, describe “systems and techniques for archiving and restoring files.” Id. IPCI assigned 1 its rights in these patents to Plaintiff, including Patent Numbers 8,473,478 (“’478 Patent”), 2 9,218,348 (“’348 Patent”), and 10,585,850 (“’850 Patent”) (collectively, the “Asserted 3 Patents”).1 Id. at 2. Each of the Asserted Patents is titled “Automatic Real-Time File 4 Management Method and Apparatus.” Id. at 31, 44, 59. 5 According to the Asserted Patents, protecting and managing data is “one of the greatest 6 challenges” facing IT professionals and computer users alike. Dkt. No. 36-2 at 9. The Asserted 7 Patents claim the prior art methods for “data preservation and integrity” were flawed or 8 inefficient. Id. For example, the Asserted Patents claim manual backup systems were only as 9 good as a user’s memory to run the backup procedure and they often contained gaps between 10 backups. Id. Scheduled backups fared no better because they missed work done between 11 scheduled points and functioned poorly, if at all, if the backup storage device became 12 unavailable. Id. Finally, the mirroring technique to backup was susceptible to viruses and offered

13 no protections against accidental deletions. Id. 14 Enter Plaintiff’s technology, which “actively monitors a computer’s operating system” 15 for file modifications and “[u]pon detecting those operating system activities, the technology 16 initiates, in near real time, a backup operation to a local queue or buffer.” Dkt. No. 37 at 6. Once 17 a “suitable backup storage device becomes available, the modified file contents are transmitted to 18 the backup storage device for long-term storage.” Id. Plaintiff alleges that this “new way of 19 managing data backups” creates archive files in real-time and allows users to “preview and 20 restore multiple versions of archived files.” See id. at 6–8. Plaintiff alleges the Asserted Patents 21 improve computer functionality by optimizing various storage locations to capture changes in 22 1 The United States Patent and Trademark Office (“PTO”) issued the ’478 Patent on June 25, 23 2013. Id. at 31. As a continuation of the ’478 Patent, PTO issued ’348 Patent on December 22, 2015. Id. at 3, 44. As a continuation of the ’348 Patent, PTO issued the ’850 Patent on March 10, 24 2020. Id. at 3, 59. near real time “so that previous versions of file(s) can be efficiently retrieved and restored 1 > 2 || without overburdening . . . network resources in the process.” Dkt. No. | at 5. Figure 3 of the 3 Patent provides an example timeline depicting Plaintiff's proposed method.

: User : , ; continues to 5 “of edit file i Real-time, with minimised performance impact. LE Deena 6 oat Rann nnn hn enn nn ee ccsnesseos “ep oe ED roomed ee ew fies natn lp scressecses ae IME

8 a tile for * f Liser alters file. E : ‘, Appheation : olteraté : } 4 : E closes. j alteration i i ' 9 208 240

saves file if | Program 94 Sle and by user or | proce saves file . (pens BAS maniio nth g rogram if not already i 11 not already □□□ makes ii appicalion Saves FP sawed and if | saved and if File | inilable i or wes waved and if user has _ een fon est ie i i application. | File USGr Has WSCr aM ‘or ectling. BS eptaciied Hae 12 | —_-selected the is shetdows

7 described a “method of restoring a file to a previous version of the file, [with] a current version

18 of the file being available at a local storage location.” Dkt. 36-4 at 1.

19 Plaintiff alleges Defendant’s backup software, Microsoft OneDrive, infringes on the

20 Asserted Patents. Dkt. No. 1 at 1. Launched in 2007, OneDrive allows users to “share,

synchronize, and backup their files.” /d. at 6. OneDrive users can restore prior versions of a file

as well as “archive files in close proximity” to “opening, updating, closing, or saving” a file. /d.

73 at 7. Each of the Asserted Patents contain multiple independent and dependent claims, but the

l Court will focus its analysis on the following claims as representative of the Asserted Patents as 2 a whole.” 3 Claim 1 of the °478 Patent recites: 4 1. In a computing device, a method for archiving files comprising: 5 detecting an instruction by an operating system to perform 6 an operation on an operating file; creating an archive file from the operating file and storing 7 the archive file in a temporary first storage location tem- porally proximate to the operation being performed on 8 the operating file and responsive to detecting the instruc- tion; ? searching the first temporary storage location for the 10 archive file responsive to the occurrence of a first event; and 11 moving the archive file to a second storage location respon- sive to a second event, the second storage location being 12 a permanent storage location, after storing the archive file in the first temporary storage 13 location, updating a database to indicate that the archive 14 file is located in the first temporary storage location; determining a final destination for the archive file; 15 moving the archive file from the first temporary storage location to an intermediate storage location; 16 updating the database to indicate that the archive file is located in the intermediate storage location; and 17 after moving the archive file to the second storage location, 18 updating the database to indicate that the archive file is located in the second storage location. 19 Dkt. No. 36-2 at 12. 20 21 2 “Courts may treat a claim as representative . . . if the patentee does not present any meaningful argument for the distinctive significance of any claim limitations not found in the representative 22 claim or if the parties agree to treat a claim as representative.” Berkheimer v. HP Inc., 881 F.3d 1360, 1365 (Fed. Cir. 2018). Here, Defendant argues Claim 1, Claim 15, and Claim 10 are 23 representative of the °478, °348, and ’850 Patents, respectively. Dkt. No. 36 at 22—23, 27. Plaintiff appears to accept this designation as it does not argue the other claims provide 24 limitations not found in the representative claims. See generally Dkt. No. 37.

1 Claim 15 of ’348 Patent describes: 2 15.

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Datanet LLC v. Microsoft Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/datanet-llc-v-microsoft-corporation-wawd-2023.