Intellectual Ventures I LLC v. Erie Indemnity Co.

134 F. Supp. 3d 877
CourtDistrict Court, W.D. Pennsylvania
DecidedSeptember 25, 2015
DocketCivil Action Nos. 1:14-cv-00220, 2:14—CV-01130, 2:14-CV-01131
StatusPublished
Cited by6 cases

This text of 134 F. Supp. 3d 877 (Intellectual Ventures I LLC v. Erie Indemnity Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intellectual Ventures I LLC v. Erie Indemnity Co., 134 F. Supp. 3d 877 (W.D. Pa. 2015).

Opinion

OPINION

MARK R. HORNAK, District Judge.

These are a patent infringement, cases filed by Intellectual Ventures I LLC and Intellectual Ventures II LLC (“Intellectual Ventures,” “IV,” or “Plaintiffs”) against three separate groups of Defendants: the Erie Defendants,1 the Highmark Defendants,2 and the Old Republic Defendants3 (collectively “Defendants”). Now before the Court in these cases4 are Motions to Dismiss the respective Complaints filed by all Defendants.

The Erie and Highmark Defendants have moved to dismiss for lack of subject matter jurisdiction as to one patent (the '581 Patent), Dkt. No. 14-220, ECF No. 74, for failure to state a claim as to two patents (the '581 Patent and the '434 Patent) based' on allegations that the patents are directed to patent ineligible subject [881]*881matter, and also for failure to state a claim or, alternatively, to require a more definite statement with regard to the alleged claims. Dkt. No. 14-220, ECF No. 46; Dkt. No. 14-1131, ECF No. 47. The Erie and Highmark Defendants have also moved to strike a declaration relied upon by Plaintiffs in support of subject matter jurisdiction. Dkt. No. 14-220, ECF No. 82.

The Old Republic Defendants have moved to dismiss all claims against them, alleging that three patents (the '581 Patent, the '434 Patent, and the '002 Patent) are directed to patent-ineligible subject matter, and have requested that the Court take judicial notice of certain documents submitted in support of their Motion. Dkt. No. 14-1130, ECF Nos. 30, 33.

After reviewing the papers filed by all parties and the relevant law, and after extensive, day-long oral argument on April 14, 2015, the Court will grant the Motions to Dismiss for the reasons that follow.5

I. BACKGROUND

The patents at issue in these suits are: (a) U.S. Patent No. 6,519,581 B1 (“'581 Patent”), entitled “Collection of Information Regarding a Device or a User of a Device Across a Communication Link,” (b) U.S. Patent No. 6,510,434 B1 (“'434 Patent”), entitled “System and Method for Retrieving Information From a Database Using an Index of XML Tags and Metaf-iles,” (c) U.S. Patent No. 6,546,002 B1 (“'002 Patent”), entitled “System and Method for Implementing an Intelligent and Mobile Menu-Interface Agent,” and (d) U.S. Patent No. 7,757,298 (“'298 Patent”), entitled “Method and Apparatus for Identifying and Characterizing Errant Electronic Files.”6

The Erie and Highmark Defendants have moved to dismiss infringement claims relating to the '581 Patent on the grounds that this Court lacks subject matter jurisdiction over Plaintiffs’ infringement claims as to that Patent because Intellectual Ventures does not own the Patent and therefore lacks standing to assert infringement of it.7 Dkt. No. 14-220, ECF No. 74. They also argue that the '581 and the '434 Patents are not directed to patent eligible subject matter, and thus no viable legal claim as to those Patents can be stated in the Complaints. Dkt. No. 14-220, ECF No. 46; Dkt. No. 14-1131, ECF No. 47. Alternatively, they argue that all claims of direct and indirect infringement should be dismissed under Rule 12(b)(6) or alternatively that this Court should order Plaintiffs to provide a more definite statement as to all such claims. The Old Republic Defendants challenge the '581, '434, and '002 Patents by arguing that each is directed to patent-ineligible subject matter.8 Dkt. No. 14-1130, ECF No. 30.

[882]*882II. SUBJECT MATTER JURISDICTION OF INFRINGEMENT CLAIMS AS TO THE '581 PATENT

Whether this Court has subject matter jurisdiction over the instant action as to the '581 Patent is determined by the law of the Third Circuit because it is a procedural question “not unique to patent law.” Univ. of Utah v. Max-Planck-Gesellschaft Zur Forderung Der Wissenschaften E.V., 734 F.3d 1315, 1319 (Fed.Cir.2013) cert. denied sub nom. Caret v. Univ. of Utah, — U.S. —, 134 S.Ct. 2819, 189 L.Ed.2d 785 (2014). “A motion to dismiss for want of standing is properly brought pursuant to Rule 12(b)(1), because standing is a jurisdictional matter.” Constitution Party of Pa. v. Aichele, 757 F.3d 347, 357 (3d Cir.2014) (internal quotation marks and citation omitted).

The Third Circuit would categorize the challenge here as a factual one9 because it does not simply attack the sufficiency of the '581 Complaints, but rather attacks assertions supporting jurisdiction in those Complaints as factually inaccurate. Id. at 358. When factual challenges are lodged, a court is not bound to accept the truthfulness of the allegations in a complaint and may consider evidence outside the pleadings to satisfy itself of its jurisdiction. Id. It is a plaintiffs burden to prove that a court has subject matter jurisdiction. Mortensen v. First Fed. & Ass’n, 549 F.2d 884, 891 (3d Cir.1977). If a plaintiff lacks standing when the suit is brought, the Court lacks subject matter jurisdiction. Aichele, 757 F.3d at 357.

In the patent context, plaintiffs suing for infringement bear “the burden to show necessary ownership rights to support standing to sue.” Abbott Point of Care Inc. v. Epocal, Inc., 666 F.3d 1299, 1302 (Fed.Cir.2012). To successfully assert standing, a plaintiff “must demonstrate that it held enforceable title to the patent at the inception of the lawsuit” or the infringement claims will be dismissed for lack of jurisdiction. Abraxis Bioscience, Inc. v. Navinta LLC, 625 F.3d 1359, 1364 (Fed.Cir.2010). Patent assignments must be in writing, 35 U.S.C. § 261, and the writing “must show a clear and unmistakable intent to transfer ownership.” Univ. Patents, Inc. v. Kligman, 762 F.Supp. 1212, 1219 (E.D.Pa.1991) (citing McClaskey v. Harbison-Walker Refractories Co., 138 F.2d 493 (3d Cir.1943)). Courts interpreting assignment contracts to decide ownership matters look to state law to determine and apply the appropriate rules of interpretation. Abbott, 666 F.3d at 1302.

A. The Contentions of The Parties

The Patent Assignment (“Assignment Agreement”) at issue here contains a list of seventeen (17) enumerated “patents and patent applications” owned by AllAdvan-táge.eom10 and then states:

[883]*883Assignor [AJIAdvantage], does hereby assign unto the Assignee [Alset, Inc.], all right, including common law rights, title and interest in the United States of America, Canada, the European Union, and all other countries and jurisdictions of the world in and to said patents together with the goodwill of the business symbolized by said patents and applications and registrations thereof.

Dkt. No. 14-220, ECF No. 76-1, at 5-6 (emphasis added).

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Bluebook (online)
134 F. Supp. 3d 877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intellectual-ventures-i-llc-v-erie-indemnity-co-pawd-2015.