Etison LLC v. Highlevel, Inc.

Court of Appeals for the Federal Circuit·Decided July 2, 2026·No. 25-1711·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

ETISON LLC, D/B/A CLICKFUNNELS, Plaintiff-Appellant

v.

HIGHLEVEL, INC., Defendant-Appellee

2025-1711

Appeal from the United States District Court for the District of Delaware in No. 1:24-cv-00502-JCB, Judge Campbell J. Barker.

Decided: July 2, 2026

JOHN HINTZ, FBT Gibbons LLP, New York, NY, argued for plaintiff-appellant. Also represented by KEVIN J. CULLIGAN.

ROBERT SHAFFER, O'Melveny & Myers LLP, Washington , DC, argued for defendant-appellee. Also represented by JONATHAN HACKER, KHANH NGUYEN LEON, BROOKE WILNER; JEFFERY D. BAXTER, TIMOTHY S. DURST, Dallas, TX.

2 ETISON LLC v. HIGHLEVEL, INC.

Before LOURIE, CUNNINGHAM, and STARK, Circuit Judges. STARK, Circuit Judge.

Etison LLC, d/b/a ClickFunnels (“ClickFunnels”), appeals a judgment of the District Court for the District of Delaware dismissing its patent infringement lawsuit for failure to state a claim. The district court held that all claims of ClickFunnels’ U.S. Patent Nos. 10,846,357 (“’357 patent”) and 11,361,047 (“’047 patent”) were invalid under Section 101 of the Patent Act. We conclude that the district court erred by treating one claim as representative of all challenged claims. Nevertheless, we agree with the district court that all of the claims are invalid, rendering any error harmless. Therefore, we affirm.

I

A

ClickFunnels owns the ’357 and ’047 patents (together, the “patents-in-suit”). The patents-in-suit share a specification and title, “Website Creation System for Creating Websites Having At Least One Series of Directional Webpages and Related Methods.” J.A. 58 (’357 pat. at 1:1- 4); J.A. 113 (’047 pat. at 1:1-4). 1 The claimed invention generally “provide[s] a plurality [of] website templates” to facilitate website creation and enhance the experience of end users of those websites. J.A. 23 (’357 pat. at Abstract). More particularly, the specification explains that the patented technology enables business owners to use website templates to create digital sales “funnels” that are “designed to entice” potential customers and strategically “direct ” them to purchase the products or services offered by the business. J.A. 58-59 (’357 pat. at 2:60-3:16). As further

1 We generally cite to the specification of the ’357 patent throughout this opinion.

ETISON LLC v. HIGHLEVEL, INC. 3

detailed in ClickFunnels’ amended complaint (“Amended Complaint”):

[T]he owner of the website can attract as many potential customers as possible for the products or services offered on that website (the broadest part of the funnel) and then, by using ClickFunnels technology, the website can provide the potential customers a series of directional webpages through which the potential customers can learn more about the product that is of interest to them (a narrower part of the funnel), the potential customers can purchase the products or services they know they already want (a still narrower part of the funnel), and the potential customers can be ‘funneled’ to different webpages on the website to encourage them to take other actions such as purchasing other products offered on the website (an even narrower part of the funnel).

J.A. 136-37 (Am. Cmplt. ¶ 27).

Claim 1 of the ’357 patent, which the district court treated as representative, recites:

A method, comprising:

providing, to a user for display on a client device, via a website creation system, a user dashboard comprising a selectable option to create a website; receiving a selection of the selectable option to create a website; in response to receiving the selection of the selectable option to create a website, providing, to the user for display on the client device, a plurality of website types for selection;

4 ETISON LLC v. HIGHLEVEL, INC.

receiving a selection of a website type of the plurality of website types, wherein each website type of the plurality of website types comprises a series of directional webpages configured to cause an end user interaction with a website, wherein the series of directional webpages of each website type of the plurality of websites types comprises a unique plurality of sequential webpages configured to be provided sequentially one after another; in response to receiving the selection of a website type of the plurality of website types, providing, to the user for display on the client device, a plurality of website templates for selection, the plurality of website templates being particular to the selected website type; receiving a selection of a website template of the plurality of website templates and the series of directional webpages of the selected website type; in response to receiving the selection of a website template, generating and launching a generic website based on the selected website type and selected website template and providing, to the user for display on the client device, a website editor graphical user interface, the website editor graphical user interface comprising a plurality of webpage tabs, each webpage tab of the plurality of webpage tabs representing a webpage of the series of directional webpages;

ETISON LLC v. HIGHLEVEL, INC. 5

receiving at least one indication of a user interaction editing at least one webpage of the series of directional webpages; and in response to receiving the at least one indication of a user interaction editing at least one webpage of the series of directional webpages, editing the launched generic website to create a customized website.

J.A. 75 (’357 pat. at 35:51-36:27).

B

In April 2024, ClickFunnels sued HighLevel, Inc.

(“HighLevel”) in the District of Delaware, alleging that HighLevel’s software-as-a-service website platform infringes at least claim 1 of each of the patents-in-suit. After ClickFunnels filed its Amended Complaint, HighLevel moved to dismiss on the grounds that both patents claim ineligible subject matter under Section 101. In analyzing ClickFunnels’ claims under the two-step test set out by the Supreme Court in Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 217-18 (2014), the district court accepted HighLevel’s proposal to treat claim 1 of the ’357 patent as representative of all 20 claims of each of the patents-in-suit. After oral argument, the district court determined at step one of the Alice test that the claims are directed to the abstract idea of “filtering information based on user preferences to arrive at a final result,” and at step two that the claims add no inventive concept. J.A. 11, 15.

ClickFunnels timely appealed. The district court had jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a), and we have jurisdiction under 28 U.S.C. § 1295(a)(1).

6 ETISON LLC v. HIGHLEVEL, INC.

II

We review a district court’s dismissal of a complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure under the law of the applicable regional circuit. See Universal Secure Registry LLC v. Apple Inc., 10 F.4th 1342, 1345-46 (Fed. Cir. 2021). The Third Circuit reviews grants of a motion to dismiss de novo. See Klotz v. Celentano Stadtmauer & Walentowicz LLP, 991 F.3d 458, 462 (3d Cir. 2021). “When reviewing a Rule 12(b)(6) motion, we accept as true all factual allegations in the complaint and view those facts in the light most favorable to the non-moving party.” Id. To survive a motion to dismiss, a complaint must allege “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007).

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