Enfish, LLC v. Microsoft Corp.

56 F. Supp. 3d 1167, 113 U.S.P.Q. 2d (BNA) 2082, 2014 U.S. Dist. LEXIS 156760, 2014 WL 5661456
District Court, C.D. California·Decided November 3, 2014·No. Case No. 2:12-cv-07360-MRP-MRW·Published·Cited by 20 cases

Opinion

ORDER GRANTING DEFENDANTS’ MOTION FOR SUMMARY JUDGMENT ON INELIGIBILITY UNDER 35 U.S.C. § 101

MARIANA R. PFAELZER, District Judge.

I. Introduction

Plaintiff Enfish, LLC (“Enfish”) has sued Defendants Microsoft Corporation (“Microsoft”), Fiserv, Inc., Intuit, Inc., Sage Software, Inc., and Jack Henry & Associates, Inc. (collectively,. “Defendants”) for infringement of two patents: U.S. Patent Nos. 6,151,604 (“the '604 Patent”) and 6,163,775 (“the '775 Patent”).1 In an order issued March 31, 2014, the Court invalidated claims 1, 2, and 16 of the '604 patent as single means claims prohibited by 35 U.S.C. § 112(a). See Enfish, LLC v. Microsoft Corp., 9 F.Supp.3d 1126 (C.D.Cal.2014). In a separate order issued March 31, 2014, the Court invalidated claims 31, 32, 46, and 47 of the '604 patent and claims 31, 32, and 47 of the '775 patent as anticipated under 35 U.S.C. § 102. See Enfish, LLC v. Microsoft Corp., No. 2:12-cv-07360, 2014 U.S. Dist. LEXIS 46523 (C.D.Cal. Mar. 31, 2014).

Defendants move for summary judgment on the basis that all asserted claims are unpatentable under 35 U.S.C. § 101.2 For the reasons set forth in this order, the Court grants the motion.

II. Background

The abstract of the patents provides a clear explanation of the invention. See '604 Patent, Abstract. The patents are directed to an information management and database system. The patents improve upon prior art by employing a flexible, self-referential table to store data. This table is composed of rows and columns. Each column and each row has an object identification number (“OID”). Rows correspond to records and columns correspond to attributes. The intersection of a row and column comprises a cell, which may contain information for a particular record relating to a particular attribute. A cell also may simply point to another record. Columns are entered as rows in the table. The record corresponding to a column contains information about the column, rendering the table self-referential.

The invention includes an index structure to allow for searching. A key word index contains text from each cell in the table. This index is itself stored in the table. Text cells in the table contain pointers to entries in the index, and the index contains pointers to the cells. This arrangement provides for extended inquiries. See '604 Patent, 2:66-3:6.

[1170] III. Standard for Summary Judgment

The Court shall grant summary judgment if there is no genuine dispute as to any material fact, as supported by facts on the record that would be admissible in evidence, and if the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56; see Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Ineligibility under § 101 is a question of law.3 In re Comiskey, 554 F.3d 967, 975 (Fed.Cir. 2009). The Court may appropriately decide this issue at the summary judgment stage.

IV. Ineligibility Under 35 U.S.C. § 101

Section 101 of the Patent Act defines patentable subject matter: “Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.” 35 U.S.C. § 101. Section 101 defines four broad categories of patentable inventions: processes, machines, manufactures, and compositions of matter. “Congress took this permissive approach to patent eligibility to ensure that ingenuity should receive a liberal encouragement.” Bilski v. Kappos, 561 U.S. 593, 601, 130 S.Ct. 3218, 177 L.Ed.2d 792 (2010) (internal quotation marks omitted). But § 101 does not encompass all products of human effort and discovery. Laws of nature, physical phenomena, and abstract ideas are not patentable. Diamond v. Chakrabarty, 447 U.S. 303, 309, 100 S.Ct. 2204, 65 L.Ed.2d 144 (1980). These exceptions are well established. See, e.g., Chakrabarty, 447 U.S. at 309, 100 S.Ct. 2204; Diamond v. Diehr, 450 U.S. 175, 185, 101 S.Ct. 1048, 67 L.Ed.2d 155 (1981); Parker v. Flook, 437 U.S. 584, 600, 98 S.Ct. 2522, 57 L.Ed.2d 451 (1978) (Stewart, J., dissenting); Gottschalk v. Benson, 409 U.S. 63, 67, 93 S.Ct. 253, 34 L.Ed.2d 273 (1972); Funk Bros. Seed Co. v. Kalo Inoculant Co., 333 U.S. 127, 130, 68 S.Ct. 440, 92 L.Ed. 588 (1948); Le Roy v. Tatham, 55 U.S. 156, 175, 14 How. 156, 14 L.Ed. 367 (1853).

On occasion, the Federal Circuit has described § 101 as a “coarse eligibility filter,” barring only “manifestly abstract” inventions and leaving §§ 102, 103, and 112 as the finer sieves. See Ultramercial, Inc. v. Hulu, LLC, 722 F.3d 1335, 1341, 1354 (Fed.Cir.2013), vacated sub nom. Wild-Tangent, Inc. v. Ultramercial, LLC, — U.S.-, 134 S.Ct. 2870, 189 L.Ed.2d 828 (2014). But in the Supreme Court’s last few terms, it has indicated that patentability is a higher bar. See Alice Corp. Pty. Ltd. v. CLS Bank Int’l, — U.S.-, 134 S.Ct. 2347, 2354-55, 189 L.Ed.2d 296 (2014); Ass’n for Molecular Pathology v. Myriad Genetics, Inc., — U.S.-, 133 S.Ct. 2107, 2116, 186 L.Ed.2d 124 (2013); Mayo Collaborative Servs. v. Prometheus Labs., Inc., — U.S.-, 132 S.Ct. 1289, 1293-94, 182 L.Ed.2d 321 (2012); Bilski, [1171] 130 S.Ct. at 3230-31. As noted by Judge Mayer of the Federal Circuit, a “robust application” of § 101 ensures “that patent protection promotes, rather than impedes, scientific progress and technological innovation.” I/P Engine, Inc. v. AOL Inc., 576 Fed.Appx. 982, 996 (Fed.Cir.2014) (nonprecedential) (Mayer, J., concurring).

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Enfish, LLC v. Microsoft Corp., 56 F. Supp. 3d 1167, 113 U.S.P.Q. 2d (BNA) 2082, 2014 U.S. Dist. LEXIS 156760, 2014 WL 5661456 (C.D. Cal. 2014).

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