Factory Direct Wholesale, LLC v. Office Kick, Inc.

District Court, S.D. Georgia·Decided September 11, 2023·No. 4:21-cv-00368·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF GEORGIA SAVANNAH DIVISION

FACTORY DIRECT WHOLESALE, LLC,

Plaintiff,

v.

OFFICE KICK, INC., and CKNAPP SALES, INC.

Defendant.

CIVIL ACTION NO.: 4:21-cv-368

OFFICE KICK, INC., and CKNAPP SALES, INC.,

Counterclaim Plaintiffs,

v.

FACTORY DIRECT WHOLESALE, LLC, DEFU USA, LLC, and HANPING LIU,

Counterclaim Defendant/Third Party Counterclaim Defendants.

O RDER Before the Court is the Magistrate Judge’s July 5, 2023 Report and Recommendation (“R&R”) regarding the construction of disputed claims in the patents at issue in this case. (Doc. 103.) Defendants Office Kick, Inc. (“Office Kick”) and CKNAPP Sales, Inc. (“CKNAPP”, and, collectively with Office Kick, “Defendants”) object to a limited portion of the R&R, (doc. 104); Plaintiff Factory Direct Wholesale, LLC responded, (doc. 106), and Defendants replied, (doc. 112). For the following reasons, the Court SUSTAINS Defendants’ objections, in part, and OVERRULES them, in part. (Doc. 104.) The Court ADOPTS the July 5, 2023 R&R as its opinion, in part, and DECLINES to ADOPT it, in part. (Doc. 103.) BACKGROUND As the Magistrate Judge explained, Plaintiff sells adjustable standing desk converter units

on Amazon.com which allow users to either stand or sit while using the work surface. (Doc. 103, pp. 1-2.) CKNAPP, also known as “Vivo,” is a parent company of Office Kick, which holds three desk converter patents: (1) Patent No. 11,134,773 (the “773 Patent”), (2) Patent No. 11,134,774 (the “774 Patent”), and (3) Patent No. 10,575,630 (the “630 Patent,” and, collectively with the 773 and 774 Patents, the “Patents”). (Id., p. 2; see also doc. 15-6 (630 Patent); doc. 15-1 (773 Patent); doc. 15-5 (774 Patent).) Plaintiff asserts that although the 774 Patent purports to be a continuation of the 773 Patent, and the 773 Patent purports to be a continuation of the 630 Patent, the 774 Patent and 773 Patent are actually “continuations-in-part” because they add substantive content. (Doc. 103, p. 2 (citing doc. 71, p. 6 n.3).) Plaintiff alleges that Defendants’ counsel wrote to Amazon demanding that it remove two of Plaintiff’s models because they infringed the 773 Patent; Amazon

subsequently removed the models. (Id., pp. 2-3.) Amazon eventually removed more of Plaintiff’s models at Defendants’ request because they purportedly infringed one of the Patents. (Id., p. 3.) Plaintiff brought this action against Defendants asserting claims for tortious interference, civil conspiracy, declaratory judgment of non-infringement of the Patents, and declaratory judgment of invalidity of the Patents. (Doc. 15, pp. 30-43.) Following a claim construction hearing, (doc. 82 (Minute Entry); doc. 86 (Transcript)), the Magistrate Judge recommended constructions for eleven disputed claims in the Patents, (doc. 103), to which Defendants filed limited objections, (doc. 104.) ANALYSIS As the Magistrate Judge explained, (doc. 103, p. 4), “a district court’s duty at the claim construction stage is, simply, the one that [the Federal Circuit1] described . . . many times before: to resolve a dispute about claim scope that has been raised by the parties.” Eon Corp. IP Holdings

v. Silver Spring Networks, 815 F.3d 1314, 1319 (Fed. Cir. 2016). Claim construction is a matter of law. Markman v. Westview Instruments, Inc., 52 F.3d 967, 979 (Fed. Cir. 1995). “When a court is presented with a purported dispute as to the meaning and scope of patent claim terms, the threshold question must be whether claim construction is truly necessary.” Britax Child Safety, Inc. v. Nuna Int’l B.V., 2019 WL 7161687, at *3 (E.D. Pa. Dec. 23, 2019). Claim construction is necessary “[w]hen the parties raise an actual dispute regarding the proper scope of claims.” Kaufman v. Microsoft Corp., 34 F.4th 1360, 1369 (Fed. Cir. 2022) (quoting O2 Micro Int’l Ltd. v. Beyond Innovation Tech. Co., 521 F.3d 1351, 1360 (Fed. Cir. 2008) (emphasis added)); see also Fastship, LLC v. United States, 114 Fed. Cl. 499, 504 (2013) (“Although the trial court is not required to construe every term in a patent, it must construe any term for which claim

scope is disputed.”). “A [court’s] determination that a claim term ‘needs no construction’ or has the ‘plain and ordinary meaning’ may be inadequate when a term has more than one ‘ordinary’ meaning or when reliance on a term's ‘ordinary’ meaning does not resolve the parties’ dispute.” O2 Micro, 521 F.3d at 1361. The Federal Circuit has “frequently stated that the words of a claim are generally given their ordinary and customary meaning. [Cits.] [It has] made clear, moreover, that the ordinary and customary meaning of a claim term is the meaning that the term would have to a person of ordinary skill in the art in question at the time of the invention, i.e., as of the effective filing date

1 The Court applies Federal Circuit law to substantive patent issues, and Eleventh Circuit law to procedural nonpatent issues. See In re Cambridge Biotech Corp., 186 F.3d 1356, 1368 (Fed. Cir. 1999). of the patent application.” Phillips v. AWH Corp., 415 F.3d 1303, 1312-13 (Fed. Cir. 2005) (quotations and citations omitted).2 “Importantly, the [POSITA] is deemed to read the claim term not only in the context of the particular claim in which the disputed term appears, but in the context of the entire patent, including the specification.” Id.3 Although “[t]he claim construction inquiry

. . . begins and ends in all cases with the actual words of the claim,” Renishaw PLC v. Marposs Societa’ per Azioni, 158 F.3d 1243, 1248 (Fed. Cir. 1998), courts must also consider “the remainder of the specification, the prosecution history, and extrinsic evidence concerning relevant scientific principles, the meaning of technical terms, and the state of the art.” Phillips, 415 F.3d at 1314 (quoting Innova/Pure Water, Inc. v. Safari Water Filtration Sys., Inc., 381 F.3d 1111, 1116 (Fed. Cir. 2004)). “Further, a court construing patent claim terms need not adopt the constructions proposed by the parties, and should determine its own constructions if it determines the parties’ proposals to be legally flawed.” Holmberg v. United States, 124 Fed. Cl. 610, 613 (2016). As the Magistrate Judge explained, (doc. 103, pp. 8-9), “the specification ‘is always highly relevant to the claim construction analysis. Usually, it is dispositive; it is the single best guide to

the meaning of a disputed term.’ ” Phillips, 415 F.3d at 1315 (quoting Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576, 1582 (Fed. Cir. 1996)). Courts, however, must “us[e] the specification [only] to interpret the meaning of a claim”, and may not “import[ ] limitations from the specification into the claim.” Phillips, 415 F.3d at 1323. “[T]he court may also consider the

2 The Magistrate Judge referred to the person of ordinary skill in the art as the “POSITA”, (see doc. 103, p. 6 (citing Sci. Applications Int’l Corp. v. United States, 161 Fed. Cl. 373, 376 (2022)), and the Court will use that abbreviation in this Order.

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