directPacket Research, Inc. v. Polycom, LLC

District Court, N.D. California·Decided September 26, 2023·No. 3:19-cv-03918·Unknown

Opinion

DIRECTPACKET RESEARCH, INC., Case No. 3:19-cv-03918-JD

Plaintiff, ORDER RE JUDGMENT ON THE v. PLEADINGS

Defendant.

Plaintiff directPacket Research, Inc., sued defendant Polycom, Inc., for infringement of three patents related to methods of multimedia communication across computer networks. See Dkt. No. 1. Polycom filed petitions for inter partes review of all three patents. The Patent Trial and Appeal Board (PTAB) found that all asserted claims in two of directPacket’s three patents were unpatentable. Only U.S. Patent No. 7,773,588 (the ’588 patent) remains at issue in this case. Polycom says that the ’588 patent is directed to patent-ineligible subject matter under 35 U.S.C. § 101 and related cases, and asks for a dismissal under Federal Rule of Civil Procedure 12(c). Dkt. No. 257. The first, second, and third claims in the complaint, which concern the ’588 patent, are dismissed with leave to amend. As alleged in the complaint, the ’588 patent was issued on August 10, 2010 and is assigned to directPacket. Dkt. No. 1 at 5. The patent is directed to “a system and method for facilitating multimedia communication with multiple communication protocols.” Dkt. No. 1-1 at 2:1-5. As the background of the patent states, “Multimedia communication systems . . . are typically designed to be implemented in one of the various protocols. . . . A problem arises when a party communicate with another party using a different protocol endpoint on another communication system.” Id. at 1:48-58. The patent is said to “allow[] communication devices that use different communication protocols to participate in multimedia communications in the same system.” Id. at 2:25-27. The ’588 claim comprises 23 claims in total, including four independent claims: Claims 1, 7, 11, and 18. Dkt. No. 1-1 at 7:25-10:60. directPacket asserts claims 1-4, 6-9, 11-14, 16-21, and 21. Dkt. No. 257 at 5. Claims 1 and 7 recite: 1. A method for multimedia communication comprising: receiving a multimedia data stream at a communication controller in a first protocol from a communication device, wherein the first protocol comprises a signaling protocol; detecting a type of said first protocol; converting said first protocol into an intermediate protocol translating said intermediate protocol into a second protocol, wherein the second protocol comprises a signaling protocol; and transmitting said multimedia data stream in second protocol to a target communication device; wherein said first protocol comprises one of a text-based protocol and a binary protocol and wherein second protocol comprises one of a binary protocol and a text-based protocol. 7. A communication controller in a multimedia communication system, said communication controller comprising: A message interface to transceive multimedia data from a communication endpoint in a first protocol, wherein the first protocol comprises a signaling protocol, and wherein said first protocol is either a text-based protocol or a binary protocol; A protocol signaler to determine a type of said first protocol; and a plurality of interim protocol messages, wherein said plurality of interim protocol messages correspond to ones of said plurality of first protocol messages; A protocol conversion utility to convert said first protocol into an interim protocol using said first protocol conversion table; and A network interface to transceive said multimedia data in said interim protocol to a target communication endpoint. Dkt. No. 1-1 at 7:25-8:37. Claim 11 is identical to Claim 1, except that the conversion is performed “irrespective of a second protocol in which the multimedia data stream is to be transmitted to a target communication device.” Dkt. No. 1-1 at 8:57-9:6. Claim 18 recites a “computer program product having a computer readable storage medium with computer program logic” comprising code for performing each of the five steps laid out in Claims 1 and 11 (receiving, detecting, converting, translating, and transmitting). Dkt. No. 1-1 at 9:54-10:13. Polycom previously petitioned for inter partes review of the ’588 patent, challenging Claims 1-23 as obvious and consequently unpatentable. The PTAB concluded that all of the challenged claims were rendered obvious by the prior art. Polycom, Inc. v. directPacket Rsch., Inc., No. IPR2019-01233, 2021 WL 96053 at *1 (P.T.A.B. Jan. 11, 2011). The decision relied on a construction of “multimedia data stream” as a stream consisting of signaling and media messages, but not necessarily both at the same time. directPacket appealed the PTAB’s ruling on the claim construction issue. The Federal Circuit vacated the ruling and remanded, finding that a “multimedia data stream” must include media, and not only signaling, messages. directPacket Rsch., Inc. v. Polycom, Inc., No. 2021-1661, ___ F. App’x ___, 2022 WL 243918 (Fed. Cir. Jan. 26, 2022). On remand, the PTAB found that the ’588 patent was not rendered obvious under the new construction. See Polycom, Inc. v. directPacket Rsch., Inc., No. IPR2019-01233 (P.T.A.B. Aug. 26, 2022).1 Rule 12(c) provides that “[a]fter the pleadings are closed -- but early enough not to delay trial -- a party may move for judgment on the pleadings.” Fed. R. Civ. P. 12(c). The Federal Rules treat Rule 12(c) and Rule 12(b)(6) motions as functionally identical, and the standards for a Rule 12(b)(6) motion apply to a Rule 12(c) motion. See Gregg v. Hawaii, 870 F.3d 883, 887 (9th Cir. 2017). Where there is no dispute of material fact, and the moving party is entitled to judgment as a matter of law, a Rule 12(c) motion may be granted. See Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009). “Challenges to patentability under Section 101 may be brought solely on the pleadings, including on a Rule 12(c) motion for judgment on the pleadings.” Open Text S.A. v. Box, Inc., 78 F. Supp. 3d 1043, 1045 (N.D. Cal. 2015). The question of eligibility may be determined on a Rule 12(c) motion “only when there are no factual allegations that, taken as true, prevent resolving the eligibility question as a matter of law.” Aatrix Software, Inc. v. Green Shades Software, Inc., 882 F.3d 1121, 1125 (Fed. Cir. 2018) (citing FairWarning IP, LLC v. Iatric Sys., Inc., 839 F.3d 1089, 1097 (Fed. Cir. 2016)). The inquiry in a motion to dismiss is confined to the contents of the complaint and the plain words of the patent that is incorporated by reference. See Broadcom Corp. v. Netflix Inc., ___ F. Supp. 3d ___, 2023 WL 3958361, at *4 (N.D. Cal. 2023); Linquet Techs., Inc. v. Tile, Inc., 559 F. Supp. 3d 1101, 1106 (N.D. Cal. 2021). A patentee cannot avoid dismissal for ineligible claims solely based on conclusory statements or unfounded allegations later proved to be unsupported. Cellspin Soft, Inc. v. Fitbit, Inc., 927 F.3d 1306, 1317 (Fed. Cir. 2019). directPacket did not raise any factual disputes that might make a judgment on the pleadings inappropriate. In addition, neither side suggests that resolution of the Section 101 question should be deferred until after claim construction. As a general rule, claims need not be formally construed before a Section 101 challenge is decided. See Genetic Techs. Ltd. v. Merial L.L.C., 818 F.3d 1369, 1373-74 (Fed. Cir. 2016) (citations omitted); Aatrix Software, 882 F.3d at 1125. Polycom states that cl

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