Itron, Inc. v. CellNet Data Systems, Inc.

34 F. Supp. 2d 1135, 1999 U.S. Dist. LEXIS 769, 1999 WL 39127
CourtDistrict Court, D. Minnesota
DecidedJanuary 28, 1999
DocketCivil 4-96-972 (DSD/RLE)
StatusPublished
Cited by4 cases

This text of 34 F. Supp. 2d 1135 (Itron, Inc. v. CellNet Data Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Itron, Inc. v. CellNet Data Systems, Inc., 34 F. Supp. 2d 1135, 1999 U.S. Dist. LEXIS 769, 1999 WL 39127 (mnd 1999).

Opinion

ORDER

DOTY, District Judge.

This matter is before the court on the parties’ cross-motions for summary judgment. Based on a review of the file, record, and proceedings herein, and for the reasons stated, the court (1) grants CellNet’s motion on the issue of non-infringement; (2) grants Itron’s motion on the issue of the validity of Claim 36; and (3) denies each party’s remaining motions.

BACKGROUND

This case arises out of a dispute between plaintiff Itron, Inc. (“Itron”) and defendant CellNet Data Systems, Inc. (“CellNet”) over their competing electric meter-reading systems. Utility companies have long used electric meters to measure energy use by individual consumers. For decades, utilities read meters manually, hiring employees to walk from home to home reading the dials of each customer’s utility meters. Relatively recently, technology has progressed to where the meters can be read electronically via wireless radio signal. Some early wireless systems used mobile receivers, placed in a truck or van, to drive through neighborhoods and read information transmitted from modules attached to the electric meters. Another system, designed by the DataBeam Company, used a fixed communication architecture to gather consumption information. In the DataBeam system, powerful 1000 mil-liwatt transmitters could send information to a receiver located at fixed sites. Each fixed receiver was designed to receive information from as many as 30,000 meters. In turn, the fixed receiver passed the energy consumption information to a central processing station. Although the DataBeam system represented a technological improvement over manual and mobile meter-reading systems, its large transmitting power and distance requirements compromised both its reliability and its cost-effectiveness.

Itron and CellNet each own next-generation fixed network meter-reading systems. Itron owns U.S. Patent No. 5,553,094 (“the ’094 patent”), directed to a radio communication network for remote data generating stations. The ’094 patent issued on September 3, 1996, issuing from Application Serial No. 271,545, which was filed on July 7, 1994 in the names of Dennis F. Johnson, Michael Wiebe and five other persons named as inventors. This patent was the continuation of a parent application first filed by Johnson and Wiebe alone as Application Serial No. 480,573 on February 15, 1990 and which issued as U.S. Patent No. 5,056,107 (“the ’107 patent”) on October 8, 1991.

The ’094 patent describes a communication network characterized by four levels. The first level consists of meter modules attached to each consumer’s electric meters. These meter modules are called “network service modules” (“NSMs”). The second level consists of receivers/transmitters located throughout the service area. These devices are called “remote cell nodes” (“RCNs”). The third level consists of intermediate receivers/transmitters, called “intermediate data terminals” (“IDTs”). The fourth level consists of the central computer at the utility’s main billing office, which is called a “central data terminal” (“CDT”). Simply described, energy consumption information is passed up through the system in bundles of electronic data, from the NSM to the RCN to the IDT and, finally, to the CDT. Itron contends that this mulitiered, lower-power system architecture solves many of the problems inherent in prior fixed network schemes like the DataBeam system. The court will address the ’094 patent in more detail below.

The CellNet system possesses a similar system architecture. Energy consumption information is delivered up through the system from what is called the “TransmiMInly Meter Module” (“TOMM”) to the MieroCell Controller (“MCC”), then to the CellMaster and, finally, to the System Controller. Cell-Net contends that the system’s technique for transmitting data sharply distinguishes it *1138 from the ’094 patent in two principle ways: First, rather than passing energy consumption information up the communications chain intact, as with the ’094 patent, the CellNet system, at the MCC level, fragments the data bundle received from the meter module and recombines it into a new data bundle of energy consumption information. Second, rather than using redundant network paths for the transmission of energy consumption information, as with the ’094 patent, the Cell-Net system designates one MCC as the single intermediate link between the meter-module level and later levels. The court will address the CellNet system in more detail below.

Late in 1996, Itron brought this action in federal court, complaining that the CellNet system infringes the ’094 patent. After extensive discovery, Itron and CellNet now bring cross-motions for summary judgment on the issues of whether the CellNet system infringes the ’094 patent and whether the ’094 system is valid in light of the Data-Beam system and the earlier T07 patent.

A. Standard for Summary Judgment

The court applies the same summary judgment standard to motions involving patent claims as it does to motions involving other claims. See Avia Group Int’l, Inc. v. L.A. Gear California, Inc., 853 F.2d 1557, 1561 (Fed.Cir.1988). Rule 56(c) of the Federal Rules of Civil Procedure provides that summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” In order for the moving party to prevail, it must demonstrate to the court that “there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Fed.R.Civ.P. 56(c). A fact is material only when its resolution affects the outcome of the case. See Anderson, 477 U.S. at 248, 106 S.Ct. 2505. A dispute is genuine if the evidence is such that it could cause a reasonable jury to return a verdict for either party. See id. at 252, 106 S.Ct. 2505.

On a motion for summary judgment, all evidence and inferences are to be viewed in a light most favorable to the nonmoving party. See id. at 250, 106 S.Ct. 2505. The nonmov-ing party, however, may not rest upon mere denials or allegations in the pleadings, but must set forth specific facts sufficient to raise a genuine issue for trial. See Celotex, 477 U.S. at 324, 106 S.Ct. 2548. Moreover, if a plaintiff cannot support each essential element of its claim, summary judgment must be granted because a complete failure of proof regarding an essential element necessarily renders all other facts immaterial. See id. at 322-23,106 S.Ct. 2548.

B. Methodology for Claim Construction

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34 F. Supp. 2d 1135, 1999 U.S. Dist. LEXIS 769, 1999 WL 39127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/itron-inc-v-cellnet-data-systems-inc-mnd-1999.