eResearchTechnology, Inc. v. CRF, Inc.

186 F. Supp. 3d 463, 2016 U.S. Dist. LEXIS 61653, 2016 WL 2643264
CourtDistrict Court, W.D. Pennsylvania
DecidedMay 10, 2016
DocketCivil Action No. 15-918
StatusPublished

This text of 186 F. Supp. 3d 463 (eResearchTechnology, Inc. v. CRF, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
eResearchTechnology, Inc. v. CRF, Inc., 186 F. Supp. 3d 463, 2016 U.S. Dist. LEXIS 61653, 2016 WL 2643264 (W.D. Pa. 2016).

Opinion

MEMORANDUM OPINION

Nora Barry Fischer, United States District Judge

I. Introduction

Plaintiff eResearchTechnology, Inc. (“ERT”) filed suit against Defendant CRF, Inc., d/b/a CRF Health (“CRF”) on July 15,' 2015, and filed an 'amended complaint on October 22, 2015, alleging that CRF’s products infringe five of Plaintiffs patents.1 (Docket Nos. 1,18). Presently before the Court is Defendant’s Motion to Dismiss, Pursuant to Rule 12(b)(6) and related brief, (Docket Nos. 24-25), Plaintiffs response thereto, (Docket No. 29), Defendant’s Reply, (Docket No. 34), and Plaintiffs Sur-Reply, (Docket No. 35). The Court has also had the benefit of hearing and oral argument which occurred on January 29, 2016 and March 10, 2016. (Docket Nos. 36, 38). For the following ■ reasons, Defendant’s Motion to Dismiss, Pursuant to Rule 12(b)(6) [24] is GRANTED.

II. Background

Plaintiff ERT is a Delaware corporation with its principal place of business in Pittsburgh, and is a leading cloud platform solutions provider for clinical trials. (Dock[467]*467et No. 18 at 2). ERT advertises that its services and products improve the accuracy and reliability of patient' data within the clinical drug trial process. (Docket No. 29 at 1). Defendant CRF is likewise a Delaware corporation, but with a principal place of business in Plymouth Meeting, Pennsylvania. (Docket No. 18 at 2). CRF competes with ERT, and similarly provides mobile technology and services in the clinical trial space. (Docket No. 29 at 1-2).

Participant noncompliance with clinical drug trials is expensive and problematic for pharmaceutical companies trying to navigate the drug approval process. (See Docket No. 18-1 at 1:28-48). In the past, trial participants were given paper-based diaries to record their medical information during the course of a clinical trial, but that method of collecting data proved error prone. (Id.). "Additionally,, evaluating participant compliance using the paper-based diaries itself was complicated. (Id.). In response, clinical drug trial companies like ERT and CRF started offering electronic solutions to help pharmaceutical companies better record and analyze trial participant data. (See Docket No. 29-2; also CRF Health (last visited May 6, 2016) http://www.crfhealth.com/platform/; PRO eCOA Scientific Services, ERT (last visited May 6, 2016) https://www.ert.com/ecoa/ pro-ecoa-scientific-services/). The benefits of using an electronic system appear to be substantial both in terms of cost-savings and increasing the quality of the clinical drug trial process. (See Docket No. 29-2). Accordingly, both parties have a strong incentive to police their intellectual property assets; hence, Plaintiff filed the instant lawsuit.

Plaintiff is the owner of the five patents-in-suit, i.e., the ’180, ’519, ’605, ’970, and the ’447 Patents, which are collectively directed to improving clinical trials. (Docket No. 18 at ¶ 2). Plaintiff asserts that Defendant infringes its patents, and particularly accuses Defendant of infringing them, both directly and indirectly, by way of providing and inducing others to use Defendant’s “’eCOA’ solution.”2 (Docket No. 18 at ¶ 20).

In the instant motion to dismiss, Defendant contends that Plaintiffs patents are not patent-eligible, and thus, Defendant cannot be found liable for infringement. (Docket No. 24). Plaintiff counters by arguing that its patents are patent-eligible and that Defendant has infringed same. (Docket Ño. 29).

III. Procedural Posture

Plaintiff initiated this lawsuit against Defendant on July 15, 2015, alleging that the Defendant infringed the ’180, ’519, and ’605 Patents. (Docket No. 1). Shortly thereafter, Plaintiff filed an amended complaint, asserting the ’970 and ’447 Patents as well. (Docket No. 18). Defendant filed the instant Motion to Dismiss on November 5, 2015, (Docket No. 24), and the parties briefed same. (Docket Nos. 25, 29, 34, 35). As noted, the Court conducted Motion Hearings. (Docket Nos. 36, 38). Hence, the matter is now ripe for disposition.

IV. Legal Standard3

When reviewing a motion to dismiss pursuant to Federal Rule of Civil Proce[468]*468dure 12(b)(6), the court must “accept all factual allegations as true, construe the complaint in the light most favorable to the plaintiff, and determine whether, under any reasonable reading of the complaint, the plaintiff may be entitled to relief.” Eid v. Thompson, 740 F.3d 118, 122 (3d Cir.2014) (quoting Phillips v. Cnty of Allegheny, 515 F.3d 224, 233 (3d Cir. 2008)). A pleading party need not establish the elements of a prima facie case at this stage; the party must only “put forth allegations that ‘raise a reasonable expectation that discovery will reveal evidence of the necessary element[s].”’ Fowler v. UPMC Shadyside, 578 F.3d 203, 213 (3d Cir.2009) (quoting Graff v. Subbiah Cardiology Associates, Ltd., 2008 WL 2312671 (W.D.Pa. June 4, 2008)); see also Connelly v. Lane Const. Corp., 809 F.3d 780, 790 (3d Cir.2016) (“Although a reviewing court now affirmatively disregards a pleading’s legal conclusions, it must still... assume all remaining factual allegations to be true, construe those truths in the light most favorable to the plaintiff, and then draw all reasonable inferences from them.”) (citing Foglia v. Renal Ventures Mgmt., LLC, 754 F.3d 153, 154 n. 1 (3d Cir.2014)).

Nonetheless, a court need not credit bald assertions, unwarranted inferences, or legal conclusions cast in the form of factual averments. Morse v. Lower Merion School District, 132 F.3d 902, 906, n. 8 (3d Cir.1997). The primary question in deciding a motion to dismiss is not whether the Plaintiff will ultimately prevail, but rather whether he or she is entitled to offer evidence to establish the facts alleged in the complaint. Maio v. Aetna, 221 F.3d 472, 482 (3d Cir.2000). The purpose of a motion to dismiss is to “streamline [ ] litigation by dispensing with needless discovery and factfinding.” Neitzke v. Williams, 490 U.S. 319, 326-327, 109 S.Ct. 1827, 104 L.Ed.2d 338 (1989).

A patent case may be dismisséd based on a lack of patent-eligibility,4 under 35 U.S.C. § 101. See e.g., Genetic Techs. Ltd. v. Merial L.L.C., 818 F.3d 1369 (Fed.Cir.2016) (affirming motion to dismiss based on 35 U.S.C. § 101).

Title 35, United States Code Section 101, recites:

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Bluebook (online)
186 F. Supp. 3d 463, 2016 U.S. Dist. LEXIS 61653, 2016 WL 2643264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eresearchtechnology-inc-v-crf-inc-pawd-2016.