Ficep Corporation v. Peddinghaus Corporation

CourtDistrict Court, D. Delaware
DecidedFebruary 28, 2022
Docket1:19-cv-01994
StatusUnknown

This text of Ficep Corporation v. Peddinghaus Corporation (Ficep Corporation v. Peddinghaus Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ficep Corporation v. Peddinghaus Corporation, (D. Del. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

FICEP CORPORATION, Plaintiff, “ Civil Action No. 19-1994-RGA PEDDINGHAUS CORPORATION, Defendant.

MEMORANDUM OPINION Adam W. Poff, Robert M. Vrana, YOUNG CONAWAY STARGATT & TAYLOR, LLP, Wilmington, DE; Matthew B. Lowrie (argued), Kevin M. Littman, FOLEY & LARDNER LLP, Boston, MA, Attormeys for Plaintiff. Kelly E. Farman, RICHARDS, LAYTON & FINGER, P.A., Wilmington, DE; Stephanie P. Koh (argued), Leif E. Peterson, II, SIDLEY AUSTIN LLP, Chicago, IL, Attorneys for Defendant.

February of , 2022

Before me is Defendant’s Motion for Summary Judgment of Unpatentability Under 35 U.S.C. § 101. (D.I. 49). Ihave reviewed the parties’ briefing (D.I. 50, 53, 58), and I heard oral argument on February 17, 2022. (References to the transcript of the oral argument are indicated by “Tr.”). For the reasons that follow, I will GRANT this motion. I. BACKGROUND In its First Amended Complaint (D.I. 13), Plaintiff Ficep Corporation alleges that Defendant Peddinghaus Corporation infringes one or more claims of U.S. Patent No. 7,974,719 (“the ’719 patent”). Ficep and Peddinghaus are competitors in the production of steel fabrication machinery, which can be used to manufacture large steel beams for use in construction projects. (D.I. 13 at 6, 9; °719 patent, 3:62-4:7). The ’719 patent is entitled “Method and an Apparatus for Automatic Manufacture of an Object with Multiple Intersecting Components.” It generally relates to “systems and methods for automatic manufacture of an object based on automatic transmission of a three-dimensional rendering of the object, such as a rendering from a CAD to an assembly line for manufacture.” (’°719 patent, 1:9-13). Peddinghaus filed a motion to dismiss the First Amended Complaint for lack of patent eligible subject matter. (D.I. 15). The Magistrate Judge issued a Report & Recommendation recommending that I deny the motion because there were factual disputes as to whether the claims recited an inventive concept. (D.I. 30). I did not rule on the merits as to any objections to the Report & Recommendation, but I did adopt its conclusion that I deny the motion to dismiss. (D.I. 33 at 2). I suggested an early summary judgment motion on the patent eligibility issue would be appropriate. (/d.). Peddinghaus later filed the present motion for summary judgment of unpatentability. (D.I. 49).

II. LEGALSTANDARDS A. Summary Judgment “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” FED. R. Civ. P. 56(a). Material facts are those “that could affect the outcome” of the proceeding. Lamont v. New Jersey, 637 F.3d 177, 181 (3d Cir. 2011) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)). “[A] dispute about a material fact is ‘genuine’ if the evidence is sufficient to permit a reasonable jury to return a verdict for the nonmoving party.” Id The burden on the moving party may be discharged by pointing out to the district court that there is an absence of evidence supporting the non-moving party’s case. Celotex Corp. v. Catrett, 477 USS. 317, 323 (1986). The burden then shifts to the non-movant to demonstrate the existence of a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87 (1986); Williams v. Borough of West Chester, 891 F.2d 458, 460-61 (3d Cir. 1989). A non-moving party asserting that a fact is genuinely disputed must support such an assertion by: “(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations . . . , admissions, interrogatory answers, or other materials; or (B) showing that the materials cited [by the opposing party] do not establish the absence .. . of a genuine dispute... FED. R. Civ. P. 56(c)(1). The non-moving party’s evidence “must amount to more than a scintilla, but may amount to less (in the evaluation of the court) than a preponderance.” Williams, 891 F.2d at 461. When determining whether a genuine issue of material fact exists, the court must view the evidence in the light most favorable to the non-moving party and draw all reasonable

inferences in that party’s favor. Wishkin v. Potter, 476 F.3d 180, 184 (3d Cir. 2007). Ifthe non-moving party fails to make a sufficient showing on an essential element of its case with respect to which it has the burden of proof, the moving party is entitled to judgment as a matter of law. See Celotex Corp., 477 U.S. at 322. B. Patent-Eligible Subject Matter Section 101 of the Patent Act defines patent-eligible subject matter. It provides: “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. The Supreme Court recognizes three categories of subject matter that are not eligible for patents—laws of nature, natural phenomena, and abstract ideas. Alice Corp. Pty. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). The purpose of these exceptions is to protect the “basic tools of scientific and technological work.” Mayo Collaborative Servs. v. Prometheus Lab’ys, Inc., 566 U.S. 66, 71 (2012). In Alice, the Supreme Court reaffirmed the framework laid out in Mayo “for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts.” Alice, 573 U.S. at 217. First, the court must determine whether the claims are drawn to a patent-ineligible concept. Jd Ifthe answer is yes, the court must look to “the elements of the claim both individually and as an ordered combination” to see if there is an “inventive concept—i.e., an element or combination of elements that is sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the ineligible concept itself.” Jd. at 217-18 (cleaned up).

“While the ultimate determination of eligibility under § 101 is a question of law, . . . there can be subsidiary fact questions which must be resolved en route to the ultimate legal determination.” Aatrix Software, Inc. v. Green Shades Software, Inc., 882 F.3d 1121, 1128 (Fed. Cir. 2018). Wt. DISCUSSION A. Representative Claim A court may treat a claim as representative where all claims are “substantially similar and linked to the same abstract idea.” Content Extraction & Transmission LLC vy. Wells Fargo Bank, Nat. Ass’n, 776 F.3d 1343, 1348 (Fed. Cir. 2014). Peddinghaus argues that claim 7 is representative of all claims of the ’719 patent. (D.I. 50 at3 &n.1). Ficep disagrees. (D.I. 53 at 25). Claims 1, 7, and 14 are the only independent claims in the patent.

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Ficep Corporation v. Peddinghaus Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ficep-corporation-v-peddinghaus-corporation-ded-2022.