Impact Engine, Inc. v. Google LLC

District Court, S.D. California·Decided November 10, 2021·No. 3:19-cv-01301·Unknown

Opinion

1 2 3 4 5 6 7 10 11 IMPACT ENGINE, INC., Case No.: 19-CV-1301-CAB-DEB

12 Plaintiff, Order on Motion to Dismiss Pursuant 13 v. to Rule 12(c) for Patent Ineligibility

15 Defendant.

16 17 18 Plaintiff Impact Engine, Inc. alleges that defendant Google LLC infringes eight 19 United States patents owned by Impact Engine. The asserted patents1 are all continuations 20 of U.S. Patent No. 7,870,497 [Doc. No. 1-3] 2, filed April 13, 2006, and have a common 21 specification. Before the Court is Google’s motion to dismiss certain of the asserted 22 claims, pursuant to Fed.R.Civ.P. 12(c), on the basis that they are ineligible subject matter 23 under 35 U.S.C. §101. [Doc. No. 225.] The matter has been fully briefed and the Court 24 finds the motion suitable for determination on the papers submitted and without oral 25

26 1 The following patents are at issue in this litigation: U.S. Patent Nos. 7,870,497; 8,356,253; 8,930,832; 27 9,361,632; 9,805,393; 10,068,253; 10,565,618; and 10,572,898. [Doc. Nos. 1-3 to 1-8, 53-14 and 53-15, respectively.] 28 1 argument in accordance with Civil Local Rule 7.1(d)(1). For the reasons set forth below, 2 the motion is GRANTED in part and DENIED in part. 3 I. Procedural Background 4 Google previously sought to dismiss Impact Engine’s complaint under Fed.R.Civ.P. 5 12(b)(6) based on patent ineligibility at the start of this litigation. [Doc. No. 21.] Google 6 argued that all the asserted patents claim ineligible subject matter and that Claim 1 of the 7 ‘497 patent was representative of all the claims of all the patents asserted by Impact Engine. 8 The Court denied the motion, finding that Google did not establish that Claim 1 of the ‘497 9 patent was representative. Further, based only on consideration of the complaint, the patent 10 and its history, the Court found it could not conclude that Claim 1 of the ‘497 patent was 11 directed at an abstract idea. [Doc. No. 41 at 2.] However, Google was not precluded from 12 reasserting the defense of patent ineligibility as to one or more of the patents’ claims if 13 claim construction or further evidence beyond the pleadings supported such a challenge in 14 the future. [Id.] 15 Following the issuance of the Court’s initial Claim Construction Order [Doc. No. 16 148], Google renewed its motion to dismiss pursuant to Fed.R.Civ.P. 12(c) based on patent 17 ineligibility, this time asserting that Claims 1, 3, and 5 of U.S. Patent No. 8,356,253 (“the 18 ‘6253 patent”) were representative of all the claims at issue in the litigation. [Doc. No. 19 157.] At the same time, Google also filed a motion for additional construction of claim 20 terms that are limitations in the representative claims of the ‘6253 patent. [Doc. No. 160.] 21 Because Google’s challenge to the patentability of the claims of the ‘6253 patent was 22 premised in part on claim constructions that the Court did not adopt [Doc. No. 205], the 23 Court denied the motion. [Doc. No. 206.] 24 Google’s present motion to dismiss is directed specifically at Claim 1 of the ‘497 25 patent, Claims 14, 16 and 233 of the ‘618 patent, and Claim 30 of the ‘898 patent. Google 26 27 28 1 brings the motion pursuant to Fed.R.Civ.P. 12(c) and argues these specific claims, as 2 construed by the Court and in consideration of the patent specification, are directed at an 3 abstract idea and do not include additional elements that transform the claims into patent- 4 eligible subject matter. 5 Impact Engine opposes Google’s present motion, in part arguing it is an untimely 6 motion for reconsideration of its previous motions challenging the validity of Impact 7 Engine’s patents based on section 101. The Court disagrees. Each motion brought by 8 Google was distinct and separate. This motion is neither untimely nor a request for the 9 Court to reconsider a prior ruling. The Court therefore turns to the merits of Google’s 10 motion. 11 II. Legal Standard 12 Under Rule 12(c), judgment may be granted if the movant clearly establishes that no 13 material issue of fact remains to be resolved and that he is entitled to judgment as a matter 14 of law. Whether a claim is drawn to patent-eligible subject matter under section 101 is 15 ultimately an issue of law that may be decided on a Rule 12(c) motion under certain 16 circumstances. Generally, the court may not consider matters outside the pleadings without 17 converting a Rule 12(c) motion to a summary judgment motion under Rule 56. However, 18 because claim construction is a question of law, a court “may take notice of and rely on its 19 claim construction opinion without converting [a 12(c)] motion into a motion for summary 20 judgment.” Intellectual Ventures I LLC v. AT&T Mobility LLC, 235 F. Supp. 3d 577, 588 21 (D. Del. 2016). 22 Section 101 defines patent-eligible subject as “any new and useful process, machine, 23 manufacture, or composition of matter, or any new and useful improvement thereof.” 35 24 U.S.C. §101. However, laws of nature, natural phenomena, and abstract ideas are not 25 eligible for patenting. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). When a 26 patent claim is alleged to involve one of these three types of subject matter, the court is to 27 apply a two-step test for examining patent eligibility. Id. 573 U.S. at 217-18. 28 1 The court must “distinguish between patents that claim the ‘buildin[g] block[s]’ of human 2 ingenuity and those that integrate the building blocks into something more,” to protect 3 against “disproportionately tying up the use of the underlying ideas.” Id. at 217. 4 The first step of the Alice test requires a court to determine whether the claim at issue 5 is directed to a patent-ineligible concept, in this case an abstract idea. Id. at 218. The claim 6 is considered in its entirety to ascertain whether its character as a whole is directed to 7 excluded subject matter. Internet Pats. Corp. v. Active Network Inc., 790 F.3d 1343, 1346 8 (Fed. Cir. 2015). If so, the second step of the Alice test requires the court to examine the 9 elements of the claim both individually and as an ordered combination to determine 10 whether it contains an inventive concept sufficient to transform the claimed abstract idea 11 into a patent-eligible application. Alice, 573 U.S. at 221. This inventive concept must do 12 more than simply recite “well-understood, routine, conventional activities” previously 13 known to the industry. Mayo Collaborative Servs. v. Prometheus Labs, Inc., 566 U.S. 66, 14 79-80 (2012). 15 III. Summary of the Invention and Claim Construction 16 The patents at-issue are directed at a Multimedia Communications System and 17 Method for creating, editing, sharing, and distributing high-quality, media-rich web-based 18 communications. [Doc. No. 1-3 at 2 (Abstract).] The systems and methods disclosed are 19 intended to replace the “prior art” practice of contracting a professional graphic design or 20 advertising agency to create works that can be distributed electronically in various formats 21 such as a banner advertisement, website or email.

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Impact Engine, Inc. v. Google LLC, (S.D. Cal. 2021).

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