Inline Connection Corp. v. AOL Time Warner Inc.

302 F. Supp. 2d 307, 2004 U.S. Dist. LEXIS 1321, 2004 WL 225759
CourtDistrict Court, D. Delaware
DecidedJanuary 27, 2004
DocketCIV.A.02-272-MPT, CIV.A.02-477-MPT
StatusPublished
Cited by7 cases

This text of 302 F. Supp. 2d 307 (Inline Connection Corp. v. AOL Time Warner 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
Inline Connection Corp. v. AOL Time Warner Inc., 302 F. Supp. 2d 307, 2004 U.S. Dist. LEXIS 1321, 2004 WL 225759 (D. Del. 2004).

Opinion

MEMORANDUM

THYNGE, United States Magistrate Judge.

I. Introduction

This is a patent infringement case. In *310 line Communication Corp. (“Inline”) 1 filed suit alleging infringement by AOL Time Warner Incorporated and America Online, Inc. (collectively “AOL”) 2 and EarthLink Inc. (“EarthLink”) 3 related to four of its patents: U.S. Patent Nos. 5,844,596 (“the ’596 patent”), 6,243,446 (“the ’446 patent”), 6,542,585 (“the ’585 patent”) and 6,236,718 (“the ’718 patent”). Inline alleges AOL and EarthLink’s (hereinafter, “defendants”) Digital Subscriber Line (“DSL”) products infringe certain claims of its patents. 4 Inline asserts infringement of claim 61 of the ’596 patent, claims 1-6 of the 446 patent, claims 1, 2, 4, 8 and 9 of the ’585 patent and claims 22, 24, 38 and 39 of the ’718 patent.

Presently before the court are the parties’ positions regarding the proper construction of the asserted claims of the patents-in-suit. Pursuant to Markman v. Westview Instruments, Inc. 5 and local practice, oral argument was held on August 28, 2003. This is the court’s opinion construing the disputed claims of the patents-in-suit. Before construing the disputed claims, a brief review of the technology and patents at issue is warranted.

II. Background 6

The technology in this case involves a system of transmitting high frequency data signals and lower frequency voice band signals over conventional telephone wiring. Defendants are two leading internet service providers (“ISPs”). Inline alleges that defendants use its patented system, without permission, to make their DSL products more attractive to consumers. According to Inline, although alternatives to the DSL products offered by both defendants exist, using the Inline system allows defendants’ products to be offered without incurring installation charges every time a new DSL customer is added, merely by having the customer “self-install” filters and modem devices within the home. 7

In addition to providing their DSL services, both AOL and EarthLink offer subscribers internet access through “dial-up” service. Initially, ISPs provided internet access only through dial-up service. Like DSL service, dial-up service allows computer users to access the internet via telephone lines. In order to connect to the internet using dial-up service, residential users may open an account with an ISP and are then provided with one or more telephone numbers linked to the ISP’s computer. The dial-up modem is used to connect the user’s computer to the ISP’s computer, which in turn is connected to the internet.

*311 However, dial-up internet service has limitations, which may be remedied by using DSL service. If dial-up service is being used to connect to the internet, the telephone line cannot simultaneously be used to send telephone voice signals. Thus, dial-up service users cannot make and receive telephone calls while connected to the internet. Additionally, computers have the capability to connect to the internet and communicate data at a higher rate than the rate afforded by a dial-up modem. The theoretical limit at which dial-up modems can exchange data over a conventional dial-up telephone connection is approximately 56,000 bits per second (“56 Kbps”). As a result, a 56K modem may be limited in the speed of transferring data to users.

A. Asymmetric Digital Subscriber Line (“ADSL”) Technology

One type of DSL technology is ADSL technology. ADSL is used as an alternative to dial-up internet service. At its most basic level, ADSL technology involves the high-speed transmission of packets of digital data back and forth from, among other things, the internet to a user’s computer. ADSL technology takes advantage of the existing telephone networks used for telephone services to send digital data between the internet and a computer (and vice versa) at higher rates of speed than dial-up service.

Moreover, an ADSL link has a potentially different connection path to the internet than dial up service. An ADSL modem at a customer’s residence connects to a companion modem at a central office, which, in turn, is connected to the internet through a central office computer. Unlike dial-up internet service, ADSL allows simultaneous transmission of low frequency voice signals and higher frequency digital data signals over the same telephone line to and from the public telephone network. Thus, the ADSL user may talk simultaneously on the telephone and connect to the internet via the same telephone line because the data and voice frequency ranges can be cleanly separated.

This arrangement permits higher data transmission rates than available on dial-up modems. As a result, ADSL is capable of using subscriber loops to communicate two-way voice signals, upstream data signals, and downstream data signals within different frequency bands. Data transfers can be optimized by allocating more of the frequency range to the data transfers from the central office to the customer than in the opposite direction. ADSL can download data as high as 1.5 million bits per second (“1.5 Mbps”), which is more than 25 times the speed of the maximum dial-up modem rate of 56 Kbps.

B. The Asserted Patented Invention

The four patents-in-suit are directed toward transmitting data signals of different frequencies over conventional telephone wiring. Inline contends that the patents disclose a unique way of enhancing the plain old telephone system (“POTS”) to distribute any type of information over telephone wires that traditionally carry telephone calls to a location. These patents describe a system for sharing a telephone wire between information signals, confined to different frequency ranges. The asserted system uses filters to essentially block voice signals at a voice frequency range and pass the information signals at an information frequency range, and vice versa.

The systems disclosed in the ’596 family of patents 8 include a signal interface that transmits information from an external *312 source of information along the shared telephone wire to individual households. Inside a household, a transreceiver connected to the shared telephone wire receives information and converts it to data. The shared telephone wire remains connected to the telephone, which continues its traditional use of making and receiving telephone calls, except that filters are installed at the telephone to prevent interference with the high frequency information signals.

The asserted system set forth in the ’718 patent 9 also describes a system that shares a telephone wire between voice telephone calls and information signals confined to different frequency ranges.

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Bluebook (online)
302 F. Supp. 2d 307, 2004 U.S. Dist. LEXIS 1321, 2004 WL 225759, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inline-connection-corp-v-aol-time-warner-inc-ded-2004.