FullView, Inc. v. Polycom, Inc.

District Court, N.D. California·Decided April 28, 2021·No. 3:18-cv-00510·Unknown

Opinion

FULLVIEW, INC., Case No. 18-cv-00510-EMC

Plaintiff, ORDER DENYING PLAINTIFF’S MOTION FOR LEAVE TO FILE v. SUPPLEMENTAL COMPLAINT, AND DENYING DEFENDANT’S MOTION Defendant. Docket Nos. 123, 129

Plaintiff FullView, Inc. (“FullView”) filed this lawsuit against Defendant Polycom, Inc. (“Polycom”) alleging patent infringement. FullView is the owner of a group of patents disclosing technology involving the creation of composite images—i.e., a device capable of producing panoramic photographs. Pending before the Court are (1) FullView’s motion for leave to amend the complaint pursuant to Federal Rule of Civil Procedure 15, see Docket No. 123 (“Amend Mot.”); and (2) Polycom’s cross-motion to sever the case pursuant to Federal Rule of Civil Procedure 21 and to stay the action, see Docket No. 129 (“Sever Mot.”). For the following reasons, Court DENIES both motions. A. Factual Background FullView’s second amended complaint (SAC) alleges as follows. Dr. Nishvjit Singh Nalwa owns numerous patents and is the co-founder and current president of FullView. Docket No. 75 (“SAC”) ¶ 7. FullView is the owner of U.S. Patent No. 6,700,711 (“’711 Patent”), which owner of U.S. Patent 6,128,143 (“’143 Patent”), which is entitled “Panoramic viewing system with support stand.” Id. ¶ 10. The ’711 Patent is comprised of thirty-nine claims that cover “an omni-directional or panoramic viewer.” In other words, “[i]t describes several cameras looking out in different directions off mirrors, from offset rather than coincident viewpoints, to provide the user with seamless 360° composite images to the view’s eye that allow the user to look in any direction.” Id. ¶ 12. The ’711 Patent is made up of the following claims: • Claim 25 and its dependent claims—e.g., 26. 28, 29, 33, 35, 37, and 39—are the “Composite Image Claims.” • Claim 1 and its dependent claims—e.g., 2, 4, 5, 9, 11, 13, and 15—are the “Method Claims.” • Claim 16 and 18 are the “Apparatus Claims.” Id. ¶ 34 (“FullView asserts only the following 18 claims here: 1, 2, 4, 5, 9, 11, 13, 15, 16, 18, 25, 26, 28, 29, 33, 35, 37 and 39.”). The ’143 Patent is made up of eighteen claims covering a “system and apparatus for a compact and non-instructive omni-directional or panoramic viewer in which several cameras look off a mirrored pyramid, this pyramid and these cameras secured to a support member that intersects an inner volume of the pyramid.” Id. ¶ 13. FullView owns two other patents that it never asserted against Polycom until now: U.S. Patent No. 6,356,397 (the “’397 Patent”), which is entitled “Panoramic viewing system with shades,” Docket No. 123-1 (Third Am. Compl. (“Proposed TAC”)), Ex. J (“’397 Patent”); and U.S. Patent No. 6,219,090 (the “’090 Patent”), which is entitled “Panoramic viewing system with offset virtual optical centers,” id., Ex. K (“’090 Patent”). These patents are “from the same family as the ’711 Patent: All three patents are continuations of [Mr. Nalwa’s] application of October 7, 1997, have identical figures, and very similar specifications.” Amend Mot. at 2. In fact, the ’397 and ’090 Patents—like the ’711 Patent—also expired on November 30, 2015. Patents— to Polycom, which allowed Polycom to manufacture its CX5000 camera that provides for 360° video conferencing. Proposed TAC ¶ 14. On July 2, 2012, Polycom gave notice to FullView that it intended to terminate their agreement; however, Polycom terminated the agreement earlier than required under the agreement’s ninety-day-notice provision. SAC ¶ 16. Although Polycom ceased manufacturing its CX5000, FullView alleges that Polycom continued to sell the CX5000, which FullView contends practices the subject patents without reporting these sales, thus foregoing payment of royalties owed to FullView. See id. ¶¶ 20, 31. B. Procedural Background 1. Inter Partes Review History In January 2012, Polycom filed an Inter Partes Reexamination (“IPR”) challenging the validity of the ‘711 Patent based on obviousness grounds. See SAC ¶ 18; see also Polycom, Inc. v. Fullview, Inc., 767 F. App’x 970, 983 (Fed. Cir. 2019). On January 4, 2017, the Patent Trial and Appeal Board (“PTAB”) upheld the ’711 Patent as valid, and the Federal Circuit affirmed the PTAB’s decision on April 29, 2019. SAC ¶¶ 21, 23. On January 31, 2019, Polycom sought an IPR of the ’143 Patent. Id. ¶ 24. The PTAB denied this petition as well as Polycom’s request for rehearing on September 10, 2019. Id. ¶ 25. 2. Litigation History On January 23, 2018, FullView filed its initial complaint. Docket No. 1. On March 7, 2018, this Court stayed this action pending the resolution of the ’711 Patent’s IPR. Docket No. 16. After the Federal Circuit affirmed the PTAB’s decision, FullView amended its complaint to also include fraud allegations. Docket No. 48 (FAC). Polycom moved to dismiss the fraud allegations for failure to satisfy Rule 9(b). Docket No. 51. Before the parties could fully brief Polycom’s motion, FullView sought leave to amend its complaint to enhance the fraud allegations and assert an additional false marketing claim. Docket No. 65. This Court partially denied FullView’s request for leave to amend because both the fraud allegations and false marketing claims were futile. Docket No. 72. This denial also rendered Polycom’s motion to dismiss moot. Id. However, the Court allowed FullView to file the remainder of its second amended complaint, On July 2, 2020, FullView filed its SAC alleging a single claim for relief: infringement of both the ’711 and ’143 Patents under 35 U.S.C. § 271 by (1) direct infringement; (2) infringement by inducement; and (3) infringement via the doctrine of equivalents. SAC ¶¶ 59-66. Polycom moved to partially dismiss the ’711 Patent from the SAC because it was directed at nonpatentable subject matter and sought to protect an abstract idea without an inventive concept in contravention of 35 U.S.C. § 101. See Docket No. 80. The Court agreed and granted Polycom’s partial motion to dismiss on both grounds. See Docket No. 105 (“Partial MTD Order”). At this stage in the litigation, the ’143 Patent is the sole patent at issue and only claims 10 through 12 are in dispute. See SAC ¶ 47. On April 5, 2021, the Court issued an order construing the disputed terms of the ’143 Patent. On March 5, 2021, FullView moved to file a third amended complaint (TAC) seeking to add the ’397 and’090 Patents (collectively, “the Additional Patents”) to this action. See Amend Mot. On March 19, 2021, along with its opposition to FullView’s motion for leave to amend, Polycom filed a cross-motion to sever the case so that the Court can proceed separately with FullView’s allegations pertaining to the ’143 Patent separately from those pertaining to the ’711 Patent. See Sever Mot. at 1. The cross-motion also asks the Court to stay the case as to the ’143 Patent while the Federal Circuit reviews this Court’s dismissal of the SAC’s allegations pertaining to the ’711 Patent. Id. A. Legal Standard After a party has amended a pleading once as a matter of course, it may only amend further after obtaining leave of the court, or by consent of the adverse party. Fed. R. Civ. P. 15(a). Generally, Rule 15 advises the court that “leave shall be freely given when justice so requires.” Id. However, “the grant or denial of a subsequent opportunity to amend is within the discretion of the district court.” Foman v. Davis, 371 U.S. 178, 182 (1962). In determining whe

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FullView, Inc. v. Polycom, Inc., (N.D. Cal. 2021).

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