Inventor Holdings, LLC v. Bed Bath & Beyond, Inc.

876 F.3d 1372
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 8, 2017
Docket2016-2442
StatusPublished
Cited by25 cases

This text of 876 F.3d 1372 (Inventor Holdings, LLC v. Bed Bath & Beyond, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inventor Holdings, LLC v. Bed Bath & Beyond, Inc., 876 F.3d 1372 (Fed. Cir. 2017).

Opinion

CHEN, Circuit Judge.

Inventor Holdings, LLC (IH) sued Bed Bath & Beyond, Inc. (BBB) for infringement of U.S. Patent No. 6,381,582 (the ’582 patent) in April 2014. The Supreme Court issued its decision in Alice Corp. v. CLS Bank International in June 2014. — U.S. -, 134 S.Ct. 2347, 189 L.Ed.2d 296 (2014). BBB thereafter moved for judgment on the pleadings, contending that Alice rendered the asserted claims of the ’582 patent invalid under 35 U.S.C. § 101. The district court granted BBB’s § 101 motion. See Inventor Holdings, LLC v. Bed Bath & Beyond Inc., 123 F.Supp.3d 557, 563 (D. Del. 2015). We affirmed the district court’s § 101 decision -without opinion under Federal Circuit Rule 36. See Inventor Holdings, LLC v. Bed Bath & Beyond, Inc., 643 Fed.Appx. 1014, 1015 (Fed. Cir. 2016).

BBB moved for an award of attorney fees pursuant to 35 U.S.C. § 285, arguing that, once.Alice issued, IH should have reevaluated its case and dismissed the action. The district court granted BBB’s fees motion, holding that, “following the Alice decision, IH’s claims were objectively with- • out merit.” Inventor Holdings, LLC v. Bed Bath & Beyond Inc,, No. 14-CV-448, 2016 WL 3090633, at *3 (D. Del. May 81, 2016). The district court awarded BBB its attorney fees beginning from the daté of the Alice decision, including fees incurred during the § 101 appeal. See id. at *4. IH appeals the district court’s fees decision. We affirm.

Background

I. The ’582 Patent

The claimed invention relates to a method of purchasing goods at a local point-of-sale system from a remote seller. Claims 8, 26, and 41, excerpted below, are representative of the claims of the ’682 patent:

8. A method of processing a payment for a purchase of goods, comprising the steps of: receiving at a point-of-sale system a code relating to a purchase of goods;
determining if said code relates to a local order or to a remote order from a remote seller;
if said code relates to a remote order, then
determining a price for said remote order,
receiving a. payment for said remote order, and
transmitting to said remote seller data indicating that said payment has been received for said remote order.
’682 patent col. 1411. 7-18.
25. A method for a remote seller to process a payment for the sale of goods, comprising the steps of:
receiving a remote order for a purchase of goods from a customer; . .
generating a code and a purchase price for said remote order;
transmitting said code and said purchase price to the customer;
providing .order data for use by a point-of-sale system of a local seller in receiving a payment for said remote order;
receiving payment data confirming said payment has been received at said point-of-sale system of said local seller;
initiating, responsive to said payment data, a shipment of said goods; and
receiving a payment for said remote order from said local seller, .

Id. col, 1611. 7-26.

41. . A method [for] submitting a payment for a purchase of goods, comprising the steps of:
transmitting an order for goods to a remote merchant;
receiving a code and a purchase price for said order from said remote merchant;
providing at least one of said code and said purchase price for use bya point-of-sale system of a local seller ⅛ processing a payment for said Order;
submitting said payment to said local seller at said point-of-sale system; and
receiving said goods from said remote merchant.

Id. col. 1611. 6-16,

Figure-1 from the patent depicts the specification’s only embodiment of a system used to perform the methods recited in claims 8,25, and 41:

[[Image here]]

The patent explains, using the system in Figure 1, that a buyer may place an order for goods with a remote seller, after which the remote seller generates an “order code.” Id. col. 5 11. 54-56, col. 6 11. 37-40. The buyer may then enter the order code at a point-of-sale (POS) terminal in a local retail store and pay for the order in person. See id. col. 11 11. 10-57. According to the patent, paying at a local POS terminal distinguishes prior art systems because prior art “catalog purchases” were typically “conducted by telephone ánd paid for by credit card,” and “[m]any consumers ... do not feel secure in providing their credit card number to a ‘stranger’ over a telephone.” Id, col. 1 11. 45-48. Thus, the ’582 patent purports to disclose an improved way to “pay for remote purchases” using “payment options available at a local store.” Id. col. 13 11. 34-39. In other words, the invention covers purchasing goods from a remote seller by placing an order, receiving an order code, entering the order code at a POS terminal, and paying for the order in person.

The specification explains that the components in Figure 1 áre implemented using conventional computer technology. Id. col. 5 11. 36-38 (“[D]ata link 24 comprises an Internet connection, for example a conventional world-wide-web browser, established through a telephone line.”); id. col.- 5 11. 39-41 (“[P]oint-of-sale (POS) terminals 26A, 26B, 26» are connected to local POS. system 14, for example through a conventional computer data network.”); id. col, 5 11. 46-48 (“Local POS system 14 with POS terminals 26A-n comprisef ] a conventional, commercially available POS processing system.”); id. col. 5 11. 48-49 (“Remote processor system 16 comprises a conventional computer system .... ”); id. col. 511. 51-52 (“[Bjuyer system 22 comprises a conventional home computer .... ”); id. col. 5 11. 64-65 (“[L]ocal POS system 14 comprises a conventional POS processing system .... ”); id. col. 5 11. 32-34 (“These systems are suitably interconnected by data links 18, 20, comprising for example telephone connections dr electronic network connections.”). The only physical components recited in the representative claims are a POS system and POS terminals.

II. Procedural History

IH’s predecessor-in-interest sued 7-Eleven, Inc. (7-Eleven), Amazon, Inc. (Amazon), PayNearMe, Inc. (PayNearMe), and Wal-Mart Stores, Inc.

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Bluebook (online)
876 F.3d 1372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inventor-holdings-llc-v-bed-bath-beyond-inc-cafc-2017.