Hitkansut LLC v. United States

115 Fed. Cl. 719, 2014 WL 1724342
CourtUnited States Court of Federal Claims
DecidedMay 2, 2014
Docket1:12-cv-00303
StatusPublished
Cited by7 cases

This text of 115 Fed. Cl. 719 (Hitkansut LLC v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hitkansut LLC v. United States, 115 Fed. Cl. 719, 2014 WL 1724342 (uscfc 2014).

Opinion

OPINION AND ORDER 1

LETTOW, Judge.

Following claim construction in this patent case, the government has moved for summary judgment, asserting that the claims, as construed, are ineligible for patent protection because they relate to nonstatutory subject matter. Def.’s Mot. for Summary Judgment of Invalidity of U.S. Patent No. 7,175,722 as Claiming Nonstatutory Subject Matter Under 35 U.S.C. § 101 (“Def.’s Mot.”), ECF No. 42. Plaintiffs Hitkansut LLC and Aceele-dyne Technologies, Ltd. LLC (collectively, “Hitkansut”) resist this motion and defend the patentability of their claims for structural processing methods in U.S. Patent No. 7,175,722 (“the ’722 patent”). See Pis.’ Opp’n to Def.’s Mot. for Summary Judgment & Cross-Mot. for Summary Judgment (“Pis.’ Cross-Mot.”), ECF No. 43. 2

BACKGROUND

Hitkansut asserts that the patent applicant, Ms. Donna Walker, invented

a unique method for improving the mechanical and physical properties of manufactured metal parts (strength, durability, longevity, etc.) and to do so in a much faster way (minutes vs. hours; hours vs. days) and with much less use of energy (tens of BTUs vs. thousands of BTUs). The method generally includes subjecting the manufactured metal parts (“structures”) to two separate and overlapping energy sources [e.g.,] heat and vibration, or heat and magnetism) under certain conditions until the state of activation energy of the metal parts ha[s] been met.

Pis.’ Cross-Mot. at 3. Ms. Walker was granted the ’722 patent on February 13, 2007. 3 The patent consists of fourteen claims, seven of which are in dispute in this case. See Hitkansut LLC v. United States, 114 Fed.Cl. 410, 413 (2013) (“Hitkansut II”) (claim construction opinion). Of those seven claims, Claims 1, 7, 11, and 14 are independent claims, while Claims 2, 6, and 8 are dependent claims. Id. at 413 n. 3. Hitkansut alleges that Oak Ridge and its partners are using the method and thus infringing the process set forth in the claims of the patent. See Compl. ¶¶ 22, 45. 4

*722 On July 9, 2012, the government responded to the complaint by denying the infringement allegations in Hitkansut’s complaint. Def.’s Answer, ECF No. 7. Discovery was then undertaken, and in due course, the parties filed briefs regarding disputed terms of the claims at issue. On May 2, 2013, this court held a claim-construction hearing, and on July 31, 2013, it issued its resulting constructions of the pertinent claim terms. See Hitkansut II, 114 Fed.Cl. 410. On September 13, 2013, the government filed its motion for summary judgment, asserting that the ’722 patent is invalid because its claims seek to patent nonstatutory subject matter under 35 U.S.C. § 101. Hitkansut’s cross-motion seeks a declaration that the claims are eligible for patent protection. A hearing on the merits was held on January 14, 2014. 5

STANDARD FOR DECISION

RCFC 56 states that “[t]he 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.” RCFC 56(a). A fact is material if it “might affect the outcome of the suit under governing law,” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986), and an issue is genuine if it “may reasonably be resolved in favor of either party,” id. at 250, 106 S.Ct. 2505. The moving party bears the initial burden of demonstrating the absence of any genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party may discharge its burden by “pointing out ... that there is an absence of evidence to support the nonmov-ing party’s case.” Id. at 325, 106 S.Ct. 2548.

Fundamentally, “[pjatent eligibility under [Section] 101 presents an issue of law,” Accenture Global Servs., GmbH v. Guidewire Software, Inc., 728 F.3d 1336, 1340 (Fed.Cir.2013), but “[t]his legal conclusion may contain underlying factual issues,” id. at 1341 (citing Ultramercial, Inc. v. Hulu, LLC, 722 F.3d 1335, 1339 (Fed.Cir.2013) (“[T]he analysis under [Section] 101, while ultimately a legal determination, is rife with underlying factual issues.”)). Further, in Ultramercial, the Federal Circuit explained that “every issued patent is presumed to have been issued properly, absent clear and convincing evidence to the contrary.” 722 F.3d at 1338 (citing CLS Bank Int’l v. Alice Corp., 717 F.3d 1269, 1304-05 (Fed.Cir.2013) (Rader, C.J., and Linn, Moore, & O’Malley, JJ., concurring in part and dissenting in part) (“[A]ny attack on an issued patent based on a challenge to the eligibility of the subject matter must be proven by clear and convincing evidence.”), cert. granted sub nom. Alice Corp. v. CLS Bank Int’l, — U.S. —, 134 S.Ct. 734, 187 L.Ed.2d 590 (2013)). In Ul-tramercial, the trial court had granted the defendant’s motion to dismiss for failure to claim statutory subject matter without first *723 conducting claim construction because there was no “reasonable construction that would bring the patent within patentable subject matter.” Id. at 1349 (internal citations and quotations omitted). The Federal Circuit disagreed with the standard applied by the trial court, stating that to grant a motion to dismiss for failure to claim statutory subject matter, “the only plausible reading of the patent must be that there is clear and convincing evidence of ineligibility.” Id. at 1339 (emphasis omitted). Thus in a motion to dismiss, the burden rests on the defendant to show by clear and convincing evidence that the claims are patent ineligible. Id. at 1349 (“The district court erred in requiring the patentee to come forward with a construction that would show the claims were eligible.” (emphasis in original)).

The clear and convincing standard of proof also applies on summary judgment. See Liberty Lobby, 477 U.S. at 254, 106 S.Ct. 2505 (holding that when deciding a motion for summary judgment, a court must bear in mind the applicable evidentiary burden under the substantive law); Laughing Rabbit, Inc.

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Bluebook (online)
115 Fed. Cl. 719, 2014 WL 1724342, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hitkansut-llc-v-united-states-uscfc-2014.