DE Technologies, Inc. v. Ishopusa, Inc.

826 F. Supp. 2d 937, 2011 U.S. Dist. LEXIS 137894, 2011 WL 6008973
CourtDistrict Court, W.D. Virginia
DecidedDecember 1, 2011
DocketCivil Action No. 7:11CV00183
StatusPublished
Cited by2 cases

This text of 826 F. Supp. 2d 937 (DE Technologies, Inc. v. Ishopusa, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DE Technologies, Inc. v. Ishopusa, Inc., 826 F. Supp. 2d 937, 2011 U.S. Dist. LEXIS 137894, 2011 WL 6008973 (W.D. Va. 2011).

Opinion

MEMORANDUM OPINION

GLEN E. CONRAD, Chief Judge.

DE Technologies, Inc. (“DE”) filed this patent infringement action, alleging that defendants IShopUSA, Inc. (“IShop”) and International Checkout, Inc. (“IC”) implemented the technology claimed by DE in U.S. Patent No. 6,460,020 (“the '020 Patent”) and U.S. Patent No. 6,845,364 (“the '364 Patent”). The court previously construed the claims of the same patents in an infringement action filed by DE against Dell, Inc. DE Techs., Inc. v. Dell, Inc., No. 7:04CV00628 (W.D.Va.). The case is presently before the court for consideration of the legal effect of the court’s rulings in the earlier infringement action.

Background

DE is a Delaware corporation based in Blacksburg, Virginia. The company “was established to develop, test, and later sell [939]*939... a computer system to conduct international commercial transactions for the selling and purchase of goods over the Internet, Intranet, and other computer-to-computer systems.” (Am. Compl. at 2-3). Both of its patents, the '020 Patent and the '364 Patent, are “directed to the facilitation of international purchasing of goods over the interneVintranet, addressing all aspects of such transactions.” (Am. Compl. Exs. A & B).

In October of 2004, DE filed a patent infringement action against Dell, Inc. (“Dell”) in the Western District of Virginia, alleging that Dell infringed the '020 Patent and the '364 Patent. The case was assigned to the undersigned district judge and, after three years of pretrial proceedings, the case settled prior to trial.

Before DE and Dell entered into their settlement agreement, the court issued a number of rulings. On February 14, 2006, following a Markman1 hearing, the court issued a claim construction opinion and order, construing the disputed terms of the '020 and '364 Patents. DE Techs., Inc. v. Dell, Inc., No. 7:04CV00628, 2006 WL 335608, at *2-11, 2006 U.S. Dist. LEXIS 5459, at *5-35 (W.D.Va. Feb. 14, 2006). Three months later, the court granted Dell’s motion for partial summary judgment of invalidity, concluding that claims 13 through 15 and 17 of the '020 Patent are indefinite as a matter of law. DE Techs., Inc. v. Dell, Inc., 428 F.Supp.2d 512, 522 (W.D.Va.2006). Thereafter, DE and Dell filed additional motions for summary judgment. By opinion and order entered April 9, 2007, DE’s motions were denied and Dell’s motions were granted in part and denied in part. DE Techs., Inc. v. Dell, Inc., No. 7:04CV00628, 2007 WL 1112406, at *37-38, 2007 U.S. Dist. LEXIS 27157, at *110 (W.D.Va. Apr. 9, 2007).

Neither DE nor Dell asked to have the court’s rulings withdrawn as part of their settlement. However, the final order, prepared by the parties, provided that all of the previous orders in the case, including the court’s claim construction rulings and the court’s rulings on partial summary judgment, “were not final, were interlocutory in nature and were subject to further revision by this Court at any time prior to entry of final judgment.”

On April 23, 2010, DE filed the instant action for patent infringement against IShop, IC, and two other defendants in the Eastern District of Texas.1 2 After the action was filed, IShop and IC moved to transfer it to this district. On March 24, 2011, 2011 WL 1113486 (E.D.Tex. Mar. 24, 2011), the motion was granted, and the case was transferred to the undersigned district judge.

At the request of the court, and in accordance with the scheduling order entered on August 2, 2011, the parties submitted cross-briefs regarding the legal effect of the court’s rulings in the earlier patent case. The court held a hearing on the issue on November 18, 2011.

Discussion

In their respective briefs, DE and the defendants focus on two opinions in the previous patent case: (1) the court’s ruling on partial summary judgment that claims 13 through 15 and 17 of the '020 Patent are invalid; and (2) the court’s Markman rulings regarding the proper interpretation of disputed claims from the '020 and '364 Patents.

[940]*940I. The Court’s Invalidity Finding as to Claims 13-15 and 17 of the '020 Patent

As noted above, the court ruled on partial summary judgment in the previous case that Claims 13 through 15 and 17 of the '020 Patent are indefinite as a matter of law and, thus, invalid. While the defendants ask the court to determine what preclusive effect, if any, the court’s partial summary judgment order has on the current proceedings, the court declines to do so at this time. As the defendants acknowledge in their briefs, it is undisputed that, in the instant action, DE has not asserted any of the claims that were the subject of the court’s invalidity ruling. Consequently, unless and until DE attempts to assert Claims 13, 14, 15, or 17, the court will refrain from ruling on the legal effect of the court’s partial summary judgment order in the previous case. See, e.g., Jackson v. Jackson, 857 F.2d 951, 956 n. 1 (4th Cir.1988) (“When a controversy has yet to arise, but might arise in the future, the court may not issue an opinion on the potential controversy because that controversy is not yet ‘ripe’ for adjudication.”).

II. The Court’s Claim Construction Rulings

According to the parties’ briefs, DE has identified three patent terms requiring construction: “selecting language from a menu”; “selecting a currency from a menu”; and “international shipping information.” Each of these terms was construed in the court’s Markman opinion in the previous action. DE Techs., Inc. v. Dell, Inc., No. 7:04CV00628, 2006 WL 335608, at *4-6, 2006 U.S. Dist. LEXIS 5459, at *14-21 (W.D.Va. Feb. 14, 2006). Shortly after the Markman opinion was issued, DE moved for reconsideration of the court’s construction of “selecting a language from a menu” and “selecting a currency from a menu.” DE also asked the court to clarify its construction of “international shipping information.” By opinion and order entered March 21, 2006, the court denied DE’s motion for reconsideration and granted its request for clarification. In so doing, the court slightly modified its construction of the phrase “international shipping information” to address the concerns raised by DE. DE Techs., Inc. v. Dell, Inc., No. 7:04CV00628, 2006 WL 733967, at *2, 2006 U.S. Dist. LEXIS 11603, at *6-7 (W.D.Va. Mar. 21, 2006).

The defendants contend that the court’s prior Markman rulings should be given preclusive effect, and that the doctrine of collateral estoppel bars DE from relitigating the terms’ appropriate construction. In response, DE argues that the claim construction order was not a “final judgment” to which collateral estoppel could apply and, thus, that the court’s prior Markman rulings are not entitled to preclusive effect. See Kloth v. Microsoft Corp., 355 F.3d 322

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826 F. Supp. 2d 937, 2011 U.S. Dist. LEXIS 137894, 2011 WL 6008973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/de-technologies-inc-v-ishopusa-inc-vawd-2011.