Gaelco S.A. v. Arachnid 360, LLC
Opinion
Another object the [sic] invention is to provide a method to manage the refereeing of the games played on amusement machines wherein a human or non-human referee can make decisions at a remote site. Monitoring or Refereeing may occur in real time or with a time delay, based, at least in part, on multimedia information captured from the amusement machines which may communicate over a network such as the Internet. Accordingly, the system and method enables game play to be monitored and refereed, cheating to be reduced and enhances fair competition in games and between players....
[T]he multimedia information and other data may be transmitted over a network (e.g., a LAN, WAN, the Internet, a wireless network, a cellular network, etc.) to an appropriate receiving device (e.g., monitors, computers, speakers, etc.) at the refereeing center....
[T]he system of this invention permits playing individual or team competitions on a global scale, wherein the games are played with efficient supervision of all incidents of play, as it includes the game environment in the system.
R. 1-1 cols. 2-4.
Claim 1 recites:
*787A remote monitoring or refereeing system for one or more dart machines comprising:
one or more dart machines, each of the one or more dart machines comprising:
play components and means to capture multimedia information relating to conduct of play and performance of players using the one or more dart machines;
at least one camera to capture the conduct of play; and
means for transmitting the multimedia and captured conduct of play information, and
at least one refereeing center to receive multimedia and captured conduct of play information, to determine whether at least one of the players complies with at least one condition of play, either nearly instantaneously or with a time delay, and to transmit data including the determination as to whether at least one of the players complies with at least one condition of play to the one or more dart machines.
R. 1-1 col. 6.
Claim 10 recites:
A remote monitoring or refereeing method for dart machines, to be used in a system comprising:
a plurality of dart machines communicating over a network, each of the plurality of dart machines comprising: play components, means for capturing data on performance of the players at the machines and image capturing means;
means for transmitting the data captured from the dart machines to the communication network; and
one or more refereeing centers for evaluating the data transmitted over the network and to enable refereeing of play substantially instantaneously or with a time delay;
the method comprising:
capturing, if the player complies with certain conditions of play during the game play, a result of a portion of play and an image of the area of play and of the player;
transmitting the result and the image to the one or more refereeing centers to be evaluated by a referee;
enabling a decision by the referee as to whether the portion of play has been performed without infringing a rule of play;
transmitting the decision via the network to corresponding dart machines according to a competition refereed; and
displaying the decision on the corresponding dart machines according to the competition refereed.
Gaelco's additional asserted claims (claims 7, 9, 11, 12, 13, 14, and 191 ) depend on either claim 1 or claim 10. See R. 21 at 4-5 (Gaelco's response brief quotes the language of "independent" claims 1 and 10 in full, and then explains that "[t]he other Asserted Claims are all dependent claims").
B. Gaelco's Business
Gaelco sells dart machines called Radikal Darts that connect multiple dart boards together to allow players to compete over the internet. R. 1 ¶ 10. Radikal Darts machines are covered by the '083 patent because they include the claimed refereeing system allowing a referee to review a dart match for rule violations.
*788C. Gaelco's Infringement Complaint Against Arachnid
Gaelco brings a two-count complaint against Arachnid for infringement of the '083 patent. Count I alleges that Arachnid has directly infringed the '083 patent in violation of
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Another object the [sic] invention is to provide a method to manage the refereeing of the games played on amusement machines wherein a human or non-human referee can make decisions at a remote site. Monitoring or Refereeing may occur in real time or with a time delay, based, at least in part, on multimedia information captured from the amusement machines which may communicate over a network such as the Internet. Accordingly, the system and method enables game play to be monitored and refereed, cheating to be reduced and enhances fair competition in games and between players....
[T]he multimedia information and other data may be transmitted over a network (e.g., a LAN, WAN, the Internet, a wireless network, a cellular network, etc.) to an appropriate receiving device (e.g., monitors, computers, speakers, etc.) at the refereeing center....
[T]he system of this invention permits playing individual or team competitions on a global scale, wherein the games are played with efficient supervision of all incidents of play, as it includes the game environment in the system.
R. 1-1 cols. 2-4.
Claim 1 recites:
*787A remote monitoring or refereeing system for one or more dart machines comprising:
one or more dart machines, each of the one or more dart machines comprising:
play components and means to capture multimedia information relating to conduct of play and performance of players using the one or more dart machines;
at least one camera to capture the conduct of play; and
means for transmitting the multimedia and captured conduct of play information, and
at least one refereeing center to receive multimedia and captured conduct of play information, to determine whether at least one of the players complies with at least one condition of play, either nearly instantaneously or with a time delay, and to transmit data including the determination as to whether at least one of the players complies with at least one condition of play to the one or more dart machines.
R. 1-1 col. 6.
Claim 10 recites:
A remote monitoring or refereeing method for dart machines, to be used in a system comprising:
a plurality of dart machines communicating over a network, each of the plurality of dart machines comprising: play components, means for capturing data on performance of the players at the machines and image capturing means;
means for transmitting the data captured from the dart machines to the communication network; and
one or more refereeing centers for evaluating the data transmitted over the network and to enable refereeing of play substantially instantaneously or with a time delay;
the method comprising:
capturing, if the player complies with certain conditions of play during the game play, a result of a portion of play and an image of the area of play and of the player;
transmitting the result and the image to the one or more refereeing centers to be evaluated by a referee;
enabling a decision by the referee as to whether the portion of play has been performed without infringing a rule of play;
transmitting the decision via the network to corresponding dart machines according to a competition refereed; and
displaying the decision on the corresponding dart machines according to the competition refereed.
Gaelco's additional asserted claims (claims 7, 9, 11, 12, 13, 14, and 191 ) depend on either claim 1 or claim 10. See R. 21 at 4-5 (Gaelco's response brief quotes the language of "independent" claims 1 and 10 in full, and then explains that "[t]he other Asserted Claims are all dependent claims").
B. Gaelco's Business
Gaelco sells dart machines called Radikal Darts that connect multiple dart boards together to allow players to compete over the internet. R. 1 ¶ 10. Radikal Darts machines are covered by the '083 patent because they include the claimed refereeing system allowing a referee to review a dart match for rule violations.
*788C. Gaelco's Infringement Complaint Against Arachnid
Gaelco brings a two-count complaint against Arachnid for infringement of the '083 patent. Count I alleges that Arachnid has directly infringed the '083 patent in violation of
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A Rule 12(b)(6) motion challenges the sufficiency of the complaint. E.g., Hallinan v. Fraternal Order of Police of Chi. Lodge No. 7 ,
Whether a claim recites patent-eligible subject matter pursuant to
Discussion
Section 101 of the Patent Act defines patentable subject matter broadly as "any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof."
*789Alice Corp. v. CLS Bank Int'l , --- U.S. ----,
At the same time, "all inventions at some level embody, use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas." Mayo Collaborative Servs. v. Prometheus Labs., Inc. ,
The Supreme Court in Alice reaffirmed a two-step process for courts to use in determining whether claims recite patent-eligible subject matter. The first step is to "determine whether the claims at issue are directed to a patent-ineligible concept."
A. Step One
Arachnid maintains that the asserted claims are directed to a patent-ineligible abstract idea at step one. "The Supreme Court has not established a definitive rule to determine what constitutes an 'abstract idea' sufficient to satisfy the first step of the Mayo / Alice inquiry." Enfish, LLC v. Microsoft Corp. ,
In the last several years, the Federal Circuit has found numerous claims relating to gaming and claims relating to monitoring to be directed to abstract ideas, including: (1) methods and systems of managing a game of bingo, Planet Bingo, LLC v. VKGS, LLC ,
Arachnid argues that like in these cases, Gaelco's claims for methods and systems of remotely monitoring or refereeing dart games are directed to an abstract idea. Arachnid relies in particular on the Federal Circuit's decision in Electric Power. The patents in that case claimed methods and systems for "performing real-time performance monitoring of an electric power grid."
Like the courts in Electric Power and progeny, this Court finds collecting information, analyzing it, and displaying results to be "abstract-idea processes" under Alice. See Electric Power ,
*791As this Court pointed out in oral argument (R. 29 at 13, 17), the same abstract idea processes-of remotely refereeing a game by collecting information, analyzing the information, and displaying results-are routinely employed in other areas, including professional hockey (reviewing contested goals in all NHL games at the review center in Toronto), baseball (reviewing challenged umpire calls for all MLB games at the review center in New York), and football (reviewing all questionable plays in the last two minutes of a game in the remote booth at the stadium where the game is played). Gaelco points out that the asserted claims in this case are not "directed to remote refereeing or gaming generally," but specifically to remote refereeing of dart games using dart machines. See R. 21 at 2. As the Electric Power court explained, however, the mere fact that claims are limited "to [a] particular technological environment"-in that case, "power-grid monitoring"-is "without more, insufficient to transform them into patent-eligible applications of the abstract idea at their core."
As part of the step one inquiry, courts not only evaluate the nature of any abstract idea at issue, but also whether the asserted claims, considered as a whole, assert a technological improvement. See, e.g., Enfish ,
By contrast, where claims do not recite "any particular assertedly inventive technology," but instead merely recite the use of existing technology as a tool to implement an abstract idea, courts have found the claims to be directed to an abstract idea at step one. See, e.g., Electric Power ,
Like in Electric Power, TLI Communications , EasyWeb , and RecogniCorp , Gaelco's asserted claims do not recite any specific technological improvement. Indeed, when the Court asked Gaelco's counsel at oral argument whether he would "admit there's no ... special machinery or technology that is involved" in Gaelco's asserted claims, counsel responded, as he had to, "True. That's true." R. 29 at 14. Gaelco's *792counsel then referred to certain cameras discussed in the patent specifications that could have special filters for use in poorly lit bars. Id. at 14-15. But he admitted that those cameras were already developed and manufactured-no part of them was invented by Gaelco. Id. at 15. Gaelco also does not claim to have invented a new refereeing technique; rather, the asserted claims refer to generic refereeing using "refereeing centers." See R. 1-1 cols. 6-8. And Gaelco does not claim to have invented any new system or method for transmission of information to and from the refereeing centers. To the contrary, the asserted claims rely on generic systems and methods for transmission, which are simply combined. See id. ; see also id. cols. 2-3 ("the multimedia information and other data may be transmitted over a network (e.g., a LAN, WAN, the Internet, a wireless network, a cellular network, etc.) to an appropriate receiving device (e.g., monitors, computers, speakers, etc.) at the refereeing center").
Nor does the fact that refereeing occurs remotely qualify as a technological advancement that makes the claims non-abstract. See, e.g., Joao Control & Monitoring Sys., LLC v. Telular Corp. ,
The lack of a technological improvement is the key distinction between this case and the primary cases on which Gaelco relies. Gaelco compares the claims in this case to those in Sonos, Inc. v. D & M Holdings, Inc. ,
Another case on which Gaelco relies, Trading Technologies International, Inc. v. CQG, Inc. ,
Finally, Gaelco argues that the presence of a "physical system with multiple discrete hardware components" takes its asserted claims out of the abstract realm. R. 21 at 9-10. It points to claim 1's description of a remote monitoring system with at least (i) one or more dart machines, each with (ii) play components and (iii) means to *793capture multimedia information relating to conduct of play and performance of players; (iv) at least one camera; (v) means for transmitting the multimedia and captured conduct-of-play information; and (vi) a refereeing center. Dkt. 1-1 col. 6. It notes that claim 7 further recites a monitor on the dart machines, and claim 9 recites play components of one or more darts and a dartboard. Id. col. 7.
Gaelco is correct that the asserted claims recite "concrete tangible components." R. 21 at 10. As the Federal Circuit has explained, however, the fact that a claim "requires concrete tangible components" does not save it from being abstract where "the recited physical components merely provide a generic environment in which to carry out the abstract idea." TLI Commc'ns ,
Gaelco implicitly advocates for a rule that incorporating hardware components into a patent necessarily would make it non-abstract. As Arachnid points out, however, if this were the rule, then an author of claims could manipulate patent eligibility simply by drafting generic physical components into the claims. The Supreme Court has "long warned against" such interpretations of § 101. Alice ,
This Court therefore joins the numerous other courts that have found claims to be directed to abstract ideas despite the fact that they required generic hardware components. See, e.g., Planet Bingo ,
In sum, based on "their character as a whole," Electric Power ,
B. Step Two
At step two, the court "examine[s] the elements of the claim to determine *794whether it contains an inventive concept sufficient to transform the claimed abstract idea into a patent-eligible application." Alice ,
Applying an abstract idea through use of conventional components in their conventional manner is not an inventive concept. In Alice , for example, the Supreme Court found that using generic computer hardware to obtain data, adjust account balances based on the data, and issue automated instructions is not an inventive concept.
Similarly in Electric Power , the Federal Circuit concluded that "the claims at issue do not require any nonconventional computer, network, or display components, or even a non-conventional and non-generic arrangement of known, conventional pieces, but merely call for performance of the claimed information collection, analysis, and display functions on a set of generic computer components," which was "insufficient to pass the test of an inventive concept in the application of an abstract idea."
Here, as in these cases, the asserted claims recite the use of conventional components for their conventional purposes. Namely, they recite using the internet to transmit data, using cameras to capture images, using dart machines to play darts, and using a display to display information. R. 1-1 cols. 6-8.
In support of its contrary argument that the claims describe unconventional components used in an unconventional fashion, Gaelco points to two elements: (1) the patent's description of a digital video camera that is "equipped with filters, reflective elements and electronic equipment" so that it "can simultaneously capture images from different sources and with varied, changing lighting," R 1-1 col. 4; and (2) the patent's description of a visible light emitter to "mark[ ] the minimum regulatory *795distance of the position of the player ... throwing the dart,"
There are two problems with Gaelco's argument. First , both of these elements are described in the '083 patent specification (i.e. , the section titled "Detailed Description of the Invention")-not in the asserted claims. And "[t]he § 101 inquiry must focus on the language of the Asserted Claims themselves." Synopsys, Inc. v. Mentor Graphics Corp. ,
Second , even if the two elements of the specification relied on by Gaelco were read into the claims, that would not change the result. "[L]ooking more precisely at what the claim elements add" as required at step two, Electric Power ,
Here, as explained above, Gaelco admitted at oral argument that there is no special machinery or technology involved in Gaelco's asserted claims. Gaelco nowhere claims to have invented the camera with filters and reflective elements and the visible light emitter recited in the specification. Accordingly, the specification's recitation of these elements is not an inventive concept.
Gaelco further argues that the ordered combination of steps described in the claims solves an important problem and improves on the prior art. Gaelco says the claims "recite a specific combination of hardware and a specific series of method steps performed using that hardware to accomplish a task that was impossible prior to the invention of the Asserted Patent: allowing a referee to monitor and enforce rules for a competition involving physical actions by players located in geographically distant location from the referee and/or one another." R. 21 at 15. But the Federal Circuit has rejected the argument that an "inventive concept arises from the ordered combination of ... steps" where the steps "are recited in the ordinary order." TDE Petroleum Data Sols., Inc. v. AKM Enter., Inc. ,
Furthermore, whether Gaelco's claims are novel as compared to the prior art is not the pertinent issue in a § 101 analysis. See Diamond v. Diehr ,
*796Ultramercial ,
For these reasons, the Court finds that the asserted claims do not "contain[ ] an inventive concept sufficient to transform the claimed abstract idea into a patent-eligible application" under § 101. See Alice ,
Conclusion
For all of the reasons explained above, the Court grants Arachnid's motion to dismiss (R. 19).
Footnotes
293 F. Supp. 3d 783 (Gaelco S.A. v. Arachnid 360, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.