Function Media, L.L.C v. Google Inc.

708 F.3d 1310, 105 U.S.P.Q. 2d (BNA) 1754, 2013 WL 516366, 2013 U.S. App. LEXIS 3033
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 13, 2013
Docket2012-1020
StatusPublished
Cited by62 cases

This text of 708 F.3d 1310 (Function Media, L.L.C v. Google Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Function Media, L.L.C v. Google Inc., 708 F.3d 1310, 105 U.S.P.Q. 2d (BNA) 1754, 2013 WL 516366, 2013 U.S. App. LEXIS 3033 (Fed. Cir. 2013).

Opinion

REYNA, Circuit Judge.

In this patent case, Function Media, L.L.C. (“FM”) appeals the district court’s invalidation of one of FM’s patents as indefinite and the jury’s verdict that two other FM patents are invalid and also not infringed. FM raises several other issues on appeal, including a claim that the district court abdicated to the jury its responsibility to construe disputed claim terms, an argument that the district court incorrectly denied its motion for a new trial on the grounds that the verdict was against the great weight of the evidence, and an argument that the verdicts of infringement and invalidity are irreconcilable. For the reasons explained below, we affirm.

BACKGROUND

FM sued Google, Inc. (“Google”) 1 in the United States District Court for the Eastern District of Texas for infringing U.S. Patent Nos. 6,446,045 (the “'045 Patent”), 7,240,025 (the “'025 Patent”), and 7,249,059 (the “'059 Patent”). 2 The purpose of the invention disclosed in all three patents is to facilitate advertising on multiple advertising outlets such as newspapers and websites. The specification characterizes the prior art as inefficient because, among other reasons, it requires advertisers to manually ensure that their ads conform to the differing requirements of each advertising venue. '025 Patent col. 1 11. 36-47. For example, if one website required square ads with red borders, while another required rectangular ads with blue borders, the prior art systems required' the advertiser to manually create both ads. Id. The invention is designed to eliminate this inefficiency by automatically formatting the ads to fit each publisher’s requirements and sending them out for publication. Id. col. 3 11. 28-40.

In each of the patents, a “central computer” coordinates interactions between sellers, media venues, and buyers. A “seller” is an entity that wishes to place ads, and is sometimes referred to as an “advertiser.” '025 Patent col. 12 11. 21-27. “Media venues” are locations where ads can be placed, sometimes called “publishers”; in this case, the publishers are websites. Id. col. 10 11. 61-67. “Buyers” are the targets of the ads, i.e., the people viewing the websites. Id. col. 8 11. 35-40. The central computer hosts a number of databases and software processes, including the presentation rules database and the Presentation Generating Program (“PGP”). See '025 Patent fig. 2a.

Claim 1 of the '025 Patent is representative of the asserted claims:

1. A computer system for creating and publishing customized electronic advertisements, for a seller, to internet media venues owned or controlled by other than the seller, comprising:
*1315 a first interface to the computer system through which each of the internet media venues is prompted to input presentation rules for the internet media venue for displaying electronic advertisements on the internet media venue;
a first database storing the presentation rules input by the internet media venues through the first interface;
a second interface to the computer system through which a seller is prompted to input information to select one or more of the internet media venues and prompted to input information to create an electronic advertisement for publication to the selected internet media venues;
a second database storing the information input by the seller through the second interface; and
a computer controller of the computer system processing and publishing the electronic advertisement to one or more of the selected internet media venues in compliance with the presentation rules of the internet media venue, whereby the electronic advertisement is displayed on each of the one or more of the selected internet media venues in compliance with the presentation rules of the internet media venue.

'025 Patent col. 64 1. 59 to col. 65 1. 17 (emphases added). Thus, the invention requires: rule setting by the media venues to inform the system how the ads must be formatted; storage of the rules; inputting information to select media venues where the ads will be displayed; inputting information to create an ad; storing the ad information; processing the ad; and publishing the ad to the internet media venue. The disputed elements are the “creation and processing,” “selection,” and “publishing” elements.

FM asserted that Google’s AdSense for Content and AdSense for Mobile products infringed when used in conjunction with Google’s AdWords interface. 3 AdSense for Content is a system that selects relevant ads to display to buyers viewing web pages containing certain embedded Google code. Every time a buyer visits a site, the embedded code prompts Google’s system to run an auction. Which ads are displayed is determined by a proprietary Google algorithm that considers the amount of money the seller (advertiser) is willing to spend per click when weighed against the relevancy, or “quality,” of the ad. Generally, to get a less relevant ad displayed, an advertiser must bid more money than another advertiser supplying a more relevant ad. Once the ad is chosen it is sent directly to the buyer’s browser— not to the website publisher — and is displayed in such a way that it appears to be part of that webpage.

AdWords Front End is a site where sellers input the content of an ad, how much they are willing to pay, keywords with which the ad should be associated, and requests for the ad to be placed on specific sites. Sellers cannot customize the “look” of the ads, so all ads look the same except for the actual text displayed. Sellers can request placement on specific sites but they have no way to guarantee they will be placed on those sites — they still have to win the auction (even after requesting placement on specific sites), be relevant, and be allowed to advertise on the site by the publisher. See Transcript of Jury Trial at 138, Function Media, *1316 L.L.C. v. Google, Inc., No. 2:07-CV-279 (E.D.Tex. Oct. 9, 2009), 2009 WL 3260566 (explaining that Coca-Cola can prevent Pepsi from advertising on its site).

After the claim construction hearing, the district court found the '045 patent to be indefinite and therefore invalid because the specification did not disclose sufficient structure for its sole independent claim’s means plus function term, “means for transmitting.” Function Media L.L.C. v. Google, Inc., No. 07-CV-0279, slip op. at 10-11, 2009 WL 3260566 (E.D.Tex. Oct. 9, 2009), ECF No. 218 (“Markman Order”). The court construed the other disputed terms and denied Google’s motion for summary judgment of noninfringement. The case was tried to a jury on claims 1, 20, 37, 52, 63, 90, 179, and 231 of the '025 Patent and claim 1 of the '059 Patent, and the jury found these claims to be both invalid and not infringed. 4 Function Media L.L.C. v. Google, Inc., No.

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708 F.3d 1310, 105 U.S.P.Q. 2d (BNA) 1754, 2013 WL 516366, 2013 U.S. App. LEXIS 3033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/function-media-llc-v-google-inc-cafc-2013.