Joao Bock Transaction Systems, LLC v. Fidelity National Information Services, Inc.

122 F. Supp. 3d 1322, 2015 U.S. Dist. LEXIS 104519, 2015 WL 4743669
CourtDistrict Court, M.D. Florida
DecidedAugust 10, 2015
DocketCase No. 3:13-cv-223-J-32JRK
StatusPublished
Cited by1 cases

This text of 122 F. Supp. 3d 1322 (Joao Bock Transaction Systems, LLC v. Fidelity National Information Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joao Bock Transaction Systems, LLC v. Fidelity National Information Services, Inc., 122 F. Supp. 3d 1322, 2015 U.S. Dist. LEXIS 104519, 2015 WL 4743669 (M.D. Fla. 2015).

Opinion

ORDER GRANTING SUMMARY JUDGMENT OF INVALIDITY

' TIMOTHY J. CORRIGAN, District Judge.

After some fits and starts, this patent infringement case is before the Court to determine whether the-two patents at issue — both 'involving “an apparatus and method for providing financial transaction authorization, notification,' and/or security” — are invalid because they are drawn to [1325]*1325patent-ineligible subject matter. Applying the Supreme Court’s teachings in Mayo Collaborative Servs. v. Prometheus Labs., Inc., — U.S. -, 132 S.Ct. 1289, 182 L.Ed.2d 321 (2012) and Alice Corp. Pty. Ltd. v. CLS Bank International, — U.S. -, 134 S.Ct. 2347, 189 L.Ed.2d 296 (2014), the Court holds that the patents are invalid.

The parties have fully briefed Defendant Fidelity National Information Services, Inc.’s motions for summary judgment and for sanctions (including Plaintiff Joao Bock Transaction Systems, Inc.’s motion to strike certain evidence submitted in support of summary judgment) and the construction of certain disputed claim terms. (Does. 122,124,128,129,130,134,137,138, 140, 149,151,152,160.1) The Court held a hearing on July 24, 2015, the record of which is incorporated herein. (Doc. 166.)

I. THE PATENTS-IN-SUIT.

Joao Bock initially asserted in its complaint that Fidelity had infringed claims from just one patent, U.S. Patent No. 7,096,003 (the '003 Patent). (Doc, 1.) In its answer and counterclaim, Fidelity responded that not only had it not infringed that phtent, but the '003 Patent and U.S. Patent No. 6,047,270 (the '270 Patent), which Joao Bock had asserted against Fidelity’s customers in other cases, were both invalid. (Dóc. 11.) In reply to the counterclaim, Joao Bock defended the validity of its patents and, -in a counter-counterclaim, alleged that Fidelity was in fact infringing upon the- '270 Patent as well. (Doc. 12.) At the Court’s direction, the parties simplified the pleadings so that the alleged invalidity and infringement of both patents are now contained in one amended complaint (Doc. 65), one answer and counterclaim (Doc. 72), and one reply to the counterclaim (Doc. 73).

The '270 Patent, entitled “Apparatus and Method for Providing Account Security,” was issued on April 4, 2000 from an application filed on August 25,1997, which in turn claims priority to an application first filed on August 8,1996. '270 Patent, at [22], [45], [55], [63], The '270 Patent generally discloses “an apparatus and method for providing financial transaction authorization, notification, and/or security” for a variety of accounts that enable the accountholder to monitor and/or authorize] often in real-time, the activity on her account through interaction between, for example, her personal communication device and a bank’s central processing computer. Id. col. 4 11. 33-35; col. 8 11. 57-67; col. 9 11 1-15. The invention does this by allowing for placing restrictions on the account, providing notifications, '' and/or providing transaction records for the account.

. The '003 Patent, entitled “Transaction Security Apparatus,” was issued on April 22, 2006 from an application filed on September 10, 2001, claiming priority., to the same August 8, 1996 application as the '270 Patent.2 '003 Patent, at [22], [45], [54], [63]. Though the 'Q03 Patent contains [1326]*1326a very similar specification as the '270 Patent and generally discloses the same invention, the relevant distinction between the two is that the '003 Patent specifically teaches using the Internet, the World Wide Web, email, and wireless devices to facilitate the monitoring and/or authorization described in the '270 Patent.

At the Court’s direction (Doc. 115), Joao Bock has limited the patent claims asserted to twenty-five: claims 3, 20, 21, 28, 49, and 51 of the '270 Patent and claims 101, 104, 117, 135, 138, 148, 157, 180, 232, 236, 240, 244, 250, 252, 307, 313, 336, 345, and 346 of the '003 Patent (collectively, “Asserted Claims”) (Doc. 130). These claims are all dependent, so-called “apparatus” or “system” claims.3

The patents-in-suit have something of a litigation history. Together, the patents (or a related patent) have been the subject of at least thirty-three infringement actions (Doc. 134-2), though few of these actions have resulted in a ruling on the merits. One such ruling is of particular note.4 On December 15, 2014, in Joao Bock Transaction Systems, LLC v. Jack Henry & Associates, Inc. (“Jack Henry ”), the District of Delaware granted summary judgment for the defendant and against Joao Bock, holding that each of the twelve claims from the '003 Patent Joao Bock asserted were invalid and, therefore, not infringed. 76 F.Supp.3d 513, 524-25 (D.Del.2014). As discussed in further detail below, the Jack Henry court determined that the claims asserted there were directed to subject matter ineligible for patent under 35 U.S.C. § 101. The court later entered judgment consistent with its memorandum opinion. Joao Bock’s appeal is currently pending in the Federal Circuit.5

II. FIDELITY’S MOTION FOR SUMMARY JUDGMENT OF INVALIDITY

Keying off the ruling in Jack Henry, Fidelity has moved for summary judgment on the ground that the Asserted Claims are drawn to ineligible subject matter and are therefore invalid.6 (Doc. 124 at 6-18; Doc. 137 at 1-7.) Joao Bock contests both [1327]*1327the reasoning and the applicability of the Jack Henry opinion, as well as that Fidelity has met its burden of proving that the subject matter of the Asserted Claims are not patent eligible. (Doc. 130 at 22-40.)

A. Standard of Review

“The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(a); C.R. Bard, Inc. v. Advanced Cardiovascular Sys., Inc., 911 F.2d 670, 672-73 (Fed.Cir. 1990). “[T]he ultimate question of patent validity is one of law,” though factual determinations bear on the outcome. Microsoft Corp. v. i4i Ltd., 564 U.S. 91, 131 S.Ct. 2238, 2242-43, 180 L.Ed.2d 131 (2011). “[P]atents are presumed to be valid and overcoming this presumption requires clear and convincing evidence.” Alcon Research Ltd. v. Barr Labs., Inc., 745 F.3d 1180, 1188 (Fed.Cir.2014) (citing Microsoft, 131 S.Ct. at 2242).7 “Stated another way, summary judgment is inappropriate if a trier of fact applying the clear and convincing standard could find for either party.” Oney v. Ratliff, 182 F.3d 893, 895 (Fed.Cir. 1999).

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Bluebook (online)
122 F. Supp. 3d 1322, 2015 U.S. Dist. LEXIS 104519, 2015 WL 4743669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joao-bock-transaction-systems-llc-v-fidelity-national-information-flmd-2015.