Eagle View Techs., Inc. v. Xactware Solutions, Inc.

358 F. Supp. 3d 399
CourtUnited States District Court
DecidedJanuary 29, 2019
DocketCivil No. 15-07025 (RBK/JS)
StatusPublished
Cited by1 cases

This text of 358 F. Supp. 3d 399 (Eagle View Techs., Inc. v. Xactware Solutions, Inc.) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eagle View Techs., Inc. v. Xactware Solutions, Inc., 358 F. Supp. 3d 399 (usdistct 2019).

Opinion

The linguistic distinction is important in order to apply the correct burden of proof. Under 35 U.S.C. § 282, a U.S. patent is afforded a statutory presumption of validity. A party seeking to prove an *404invalidity defense to infringement-such as patent ineligibility under § 101 -can overcome this presumption only by clear and convincing evidence.4 Microsoft Corp. v. i4i Ltd. Partnership , 564 U.S. 91, 97, 131 S.Ct. 2238, 180 L.Ed.2d 131 (2011). Thus, the motion seeks to have this Court determine whether the relevant granted claims are patent ineligible under 35 U.S.C. § 101, and thus invalid. The Federal Circuit has clarified the clear and convincing burden applies to all invalidity arguments ( Sciele Pharma Inc. v. Lupin Ltd. , 684 F.3d 1253, 1260 (Fed. Cir. 2012) ) whether previously raised before the U.S. Patent and Trademark Office ["USPTO"] or newly raised during litigation. Id.

3.3 Invalidity Standard Under 35 U.S.C. 101 [" § 101" or "101"]

Amendments to the U.S. Patent Act under the America Invents Act of 2011 did not change 35 U.S.C. § 101, which provides four broad categories of patentable subject matter: any new and useful process, machine, manufacture, or composition of matter as well as any new and useful improvement of these. Id. The Supreme Court recognizes three exceptions to the statutory categories: "law of nature, physical phenomena, and abstract ideas". Bilski v. Kappos , 561 U.S. 593, 601, 130 S.Ct. 3218, 177 L.Ed.2d 792 (2010) [" Bilski II "].

Moreover, the Supreme Court in Alice Corp. Pty. Ltd. v. CLS Bank Intern , 573 U.S. 208, 217, 134 S.Ct. 2347, 189 L.Ed.2d 296 (2014) has articulated a two-step analysis [" § 101 inquiry"] to identify whether claims are patent eligible (i.e., valid) or patent ineligible as a statutory exception (i.e., invalid). In step one of the § 101 inquiry, the "abstract idea step", a court analyzes whether the claims are directed to a patent-ineligible concept (law of nature, naturally occurring phenomena, or abstract idea). Id. If so, the court in step two considers the elements of each claim both individually and as an ordered combination to determine if additional elements in each claim "transform the nature of the claim" into a patent-eligible invention. Id. [quoting Mayo Collaborative Servs. v. Prometheus Labs., Inc. , 566 U.S. 66, 78-79, 132 S.Ct. 1289, 182 L.Ed.2d 321 (2012) ].

Step one is a meaningful first-stage filter and requires considering whether the character of the claims as a whole is directed to excluded subject matter. Internet Patents Corp. v. Active Network, Inc. , 790 F.3d 1343, 1346 (Fed. Cir. 2015).5 For claims that recite a computerized method, the step one inquiry focuses on "whether the claims are directed to an improvement to computer functionality versus being directed to an abstract idea." Visual Memory LLC , 867 F.3d at 1258 [quoting Enfish, LLC v. Microsoft Corp. , 822 F.3d 1327, 1335 (Fed. Cir. 2016). Moreover, at step one, the court also reflects on the specifically recited elements in the claim to avoid characterizing the invention too generally.

*405McRO, Inc. v. Bandai Namco Games Am. Inc. , 837 F.3d 1299, 1313 (Fed. Cir. 2016).

At this stage, if the court finds the claims recite a patent eligible invention, the § 101 inquiry ends. However, if a claim is found to recite a law of nature, a naturally occurring phenomenon, or an abstract idea, the court moves to step two, the "inventive concept" step. This inquiry looks at what else is recited in the claim besides the patent ineligible idea, and particularly for an inventive concept that transforms the claim into something significantly more than the idea itself. Alice , 573 U.S. at 217-218, 134 S.Ct. 2347.

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358 F. Supp. 3d 399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eagle-view-techs-inc-v-xactware-solutions-inc-usdistct-2019.