Inline Connection Corp. v. Earthlink, Inc.

684 F. Supp. 2d 496, 2010 U.S. Dist. LEXIS 9884, 2010 WL 423108
CourtDistrict Court, D. Delaware
DecidedFebruary 5, 2010
DocketC.A. 02-272-MPT, 02-477-MPT
StatusPublished
Cited by3 cases

This text of 684 F. Supp. 2d 496 (Inline Connection Corp. v. Earthlink, 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. Earthlink, Inc., 684 F. Supp. 2d 496, 2010 U.S. Dist. LEXIS 9884, 2010 WL 423108 (D. Del. 2010).

Opinion

MEMORANDUM OPINION

THYNGE, United States Magistrate Judge.

I. INTRODUCTION

This is a patent infringement case. On June 4, 2002, Inline Communication Corporation 1 (“Inline”) 2 filed suit against Earth-Link, Inc. (“EarthLink”), 3 alleging infringement of U.S. Patent Nos. 5,844,596 (“the '596 patent”), 6,243,446 (“the '446 patent”), and 6,236,718 (“the 718 patent”). 4 Inline’s U.S. Patent No. 6,542,585 (“the '585 patent”) was subsequently added to the litigation after it issued in 2003. 5

The trial in this matter began on February 7, 2007. At trial, Inline asserted infringement of claim 61 of the '596 patent; claims 1, 2, 3, 4, and 5 of the '446 patent; and claims 1, 2, 4, 8, and 9 of the '585 patent. EarthLink denied infringement and alleged that the asserted claims were anticipated and obvious, and that the patents failed to comply with written descrip *500 tion and enablement requirements of 35 U.S.C. § 112. After the close of all evidence on February 13, 2007, Inline moved for judgment as a matter of law under Fed.R.Civ.P. 50(a). On February 15, 2007, the jury returned a verdict of non-infringement and that the each asserted claims were invalid as anticipated and obvious and that each of the patents failed to comply with the written description and enablement requirements of section 112. 6 Currently before the court is Inline’s renewed motion for judgment as a matter of law under Rule 50(a), or in the alternative for a new trial pursuant to Rule 59(a). 7 Inline contends that there is no legally sufficient basis to support any of the jury’s findings and, therefore, its motion should be granted. 8

II. BACKGROUND

The technology in this case involves a system of transmitting high frequency data signals and lower frequency voice band signals over conventional telephone wiring. EarthLink, at the time of the initial action, was one of the leading internet service providers (“ISPs”). Inline alleged that EarthLink used its patented system, without permission, to make DSL products more attractive to consumers. According to Inline, although alternatives to the DSL products offered by Earth-Link exist, using the Inline system allows 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.

In addition to providing DSL services, EarthLink offers 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.

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 *501 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 three patents at issue at trial 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 include a signal interface that transmits information from an external 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.

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Bluebook (online)
684 F. Supp. 2d 496, 2010 U.S. Dist. LEXIS 9884, 2010 WL 423108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inline-connection-corp-v-earthlink-inc-ded-2010.