ImagineAR, Inc. v. Niantic, Inc.

CourtDistrict Court, D. Delaware
DecidedSeptember 8, 2025
Docket1:24-cv-01252
StatusUnknown

This text of ImagineAR, Inc. v. Niantic, Inc. (ImagineAR, Inc. v. Niantic, Inc.) 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
ImagineAR, Inc. v. Niantic, Inc., (D. Del. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

IMAGINEAR, INC., et al.,

, Case No. 1:24-cv-01252-JDW v.

NIANTIC, INC. d/b/a NIANTIC LABS,

MEMORANDUM It’s for three of ImagineAR, Inc. and Imagine AR, Inc.’s (“IAR”) patents because all of them are abstract and lack an inventive concept. And it’s also game over for IAR’s claims of pre-suit indirect and willful infringement for the remaining patents at issue in this case because IAR has not alleged facts that make it plausible that Niantic, Inc. had the requisite knowledge of alleged infringement. Thus, I will grant Niantic’s partial motion to dismiss. I. BACKGROUND Plaintiffs ImagineAR, Inc. and Imagine AR, Inc. (together “IAR”) are the respective owner and licensee of various patents including U.S. Patent Nos.: (1) 8,777,746, entitled “Gestures To Encapsulate Intent” (the “‘746 Patent”); (2) 8,668,592, entitled “Systems And Methods Of Changing Storyline Based On Player Location” (the “‘592 Patent”); (3) 8,579,710, entitled “Systems And Methods Of Virtual Goods Trading Using Ratings To Ascribe Value To Virtual Goods” (the “‘710 patent”); (4) 10,946,284, entitled “Systems And Methods For Capture And Use Of Local Elements In Gameplay” (the “‘284 patent”); (5)

11,484,797, entitled “Systems And Methods For Capture And Use Of Local Elements In Gameplay” (the “‘797 patent”); (6) 11,666,827, entitled “Systems And Methods For Capture And Use Of Local Elements In Gameplay” (the “‘827 patent”); and (7) 12,070,691,

entitled “Systems And Methods For Capture And Use Of Local Elements In Gameplay” (the “‘691 patent”) (together the “Patents-In-Suit”). On November 13, 2024, IAR filed suit against Defendant Niantic, Inc., claiming that Niantic infringes one or more claims of the Patents-In-Suit by making, using, selling, offering for sale in the United States, and/or

importing into the United States, video games including Pokémon GO, Pikmin Bloom, Peridot, Skatrix, Monster Hunter Now, and Harry Potter: Wizards Unite. IAR asserts claims against Niantic for direct infringement, indirect infringement (including both induced and contributory infringement), and willful infringement.

Niantic moved to dismiss. However, I granted IAR’s Unopposed Cross-Motion To Amend And Supplement Complaint so that it could supplement its allegations regarding its claims for indirect and willful Infringement. IAR’s operative pleading, its First Amended

Complaint (the “FAC”), asserts the same infringement theories as to the same Patents- In-Suit. Niantic has filed a partial motion to dismiss the FAC, seeking dismissal of: (1) IAR’s infringement claims for the ’710, ’746, and ’592, as invalid under 35 U.S.C. § 101, and (2) IAR’s pre-suit indirect and pre-suit willful infringement claims.1 IAR opposes the motion, and it is ripe for review.

II. LEGAL STANDARD2 Federal Rule of Civil Procedure 12(b)(6) allows a party to move to dismiss a complaint for failure to state a claim upon which relief can be granted. Fed. R. Civ. P.

12(b)(6). Rather than require detailed pleadings, the “[r]ules demand only a short and plain statement of the claim showing that the pleader is entitled to relief[.]” , 809 F.3d 780, 786 (3d Cir. 2016) (quotation omitted). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true,

to state a claim to relief that is plausible on its face.” In determining whether a claim is plausible, the court must “draw on its judicial experience and common sense.” at 786–87 (same). First, the court must identify the elements needed to set forth a particular claim. at 787. Second, the court should identify conclusory allegations, such as

legal conclusions, that are not entitled to the presumption of truth. Third, with respect to well-pleaded factual allegations, the court should accept those allegations as true and “determine whether they plausibly give rise to an entitlement to

relief.” (quotation omitted). The court must “construe those truths in the light most

1 Niantic’s motion to dismiss the claims for indirect and willful infringement claims is confined to pre-suit conduct— conduct that occurred before IAR filed suit on November 13, 2024. 2 Applicable regional circuit law governs the standard for motions to dismiss. , 110 F.4th 1280, 1288 (Fed. Cir. 2024). favorable to the plaintiff, and then draw all reasonable inferences from them.” at 790 (citation omitted).

III. ANALYSIS A. Patent Eligibility An invention is patent eligible if it claims a “new and useful process, machine,

manufacture, or composition of matter.” 35 U.S.C. § 101. “The Supreme Court has interpreted this language to exclude ‘[l]aws of nature, natural phenomena, and abstract ideas’ from patent eligibility.” , 134 F.4th 1205, 1211 (Fed. Cir. 2025) (quotation omitted). Following the Supreme Court’s decision in

, 573 U.S. 208 (2014), “courts perform a two-step analysis to determine patent eligibility under § 101.” , 134 F.4th at 1211. First, the court “determine[s] whether the claims at issue are directed to one of those patent-ineligible concepts.” (quotation omitted). If so, the second step requires the court to “assess the ‘elements of

each claim both individually and as an ordered combination’ to determine whether they possess an ‘inventive concept’ that is ‘sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.’”

(same). Patent validity under Section 101 is a question of law that can be resolved on a motion to dismiss. , 72 F.4th 1355, 1360 (Fed. Cir. 2023). Patents are presumptively valid, and “[t]he burden to prove the ineligibility of any patent claim stays with the patent challenger at all times.” , 110 F.4th 1280, 1291 (Fed. Cir. 2024).

1. ‘710 Patent Claim 15 of the ‘710 Patent claims: A computer-implemented system for trading virtual goods on at least one computing device in communication with a storage medium, comprising:

a game engine programmed for:

providing a game environment accessible by a plurality of players, including a facility enabling a first player to acquire or develop a virtual good, the virtual good having a starting value;

receiving, via the game environment at least one rating of the virtual good from a second player;

automatically increasing or decreasing the starting value as a function of the at least one rating of the virtual good;

making the virtual good available for purchase at a new value representing the automatically increased or decreased starting value; and

receiving a request from a requesting player to purchase the virtual good, and checking whether the requesting player previously rated the virtual good prior to allowing a sale of the virtual good to the requesting player;

the storage medium in communication with the game engine for:

storing the starting value, the at least one rating and the new value.

(D.I. 21-3 at 13:8 – 14:4.) a. step one: abstract idea At step one under , I must consider “what the patent asserts to be the focus

of the claimed advance over the prior art” by “focus[ing] on the language of the [a]sserted [c]laims themselves, considered in light of the specification.” , 1 F.4th 1040, 1043 (Fed. Cir. 2021) (quotation omitted). In the context of software and other computer-

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