JuxtaComm-Texas Software, LLC v. Lanier Parking Systems of Virginia, Inc.

944 F. Supp. 2d 469, 2013 WL 1897112, 2013 U.S. Dist. LEXIS 64631
District Court, E.D. Virginia·Decided May 6, 2013·No. Civil Action No. 3:11-CV-299·Published

Opinion

MEMORANDUM OPINION

JAMES R. SPENCER, District Judge.

THIS MATTER is before the Court on a Motion to Lift Stay for Limited Purpose of Granting Leave to File Amended Answer and Entering Judgment Based on Collateral Estoppel filed by Defendant Lanier Parking Systems of Virginia, Inc. (“Lanier”) (ECF No. 85). The remaining Defendants have either adopted Lanier’s Motion (ECF Nos. 87, 90, 91) or separately filed motions raising identical issues (ECF Nos. 88, 89) (collectively, “Defendants’ Motions”). On April 16, 2018, the Court lifted the stay and granted Defendants leave to amend their Answers. Defendants have all filed their respective amended Answers, [472] and the Court now considers Defendants’ Motions for a judgment on the pleadings, or alternatively, summary judgment. Plaintiff JuxtaComm-Texas Software, LLC (“JuxtaComm”) opposes Defendants’ Motions. The Court dispenses with oral argument because the facts and legal contentions are adequately presented in the materials presently before the Court, and argument would not aid in the decisional process. E.D. Va. Loe. Civ. R. 7(J). For the reasons discussed below, the Court GRANTS Defendants’ Motion for Judgment on the Pleadings.

I. BACKGROUND

JuxtaComm is the exclusive licensee of U.S. Patent No. 6,195,662 (“the '662 Patent”), a system that transforms data from one computer system into another format for use by a different computer system. The patent was issued in February 2001 and has 19 claims. On September 14, 2010, JuxtaComm wrote Defendant Lanier offering to license the '662 Patent to Lanier. Lanier rejected the offer, and JuxtaComm filed this lawsuit on May 6, 2011.

The present suit is the third lawsuit JuxtaComm has filed seeking to enforce the '662 Patent. JuxtaComm initiated the first lawsuit, Juxtacomm Technologies, Inc. v. Ascential Software Corporation (JuxtaComm I), No. 2:07cv359-LED (E.D.Tex.) in August 2007 in the Eastern District of Texas. Six months before the JuxtaComm I trial, defendant Microsoft Corporation initiated an ex parte reexamination proceeding before the Patent and Trademark Office (PTO). The PTO issued an official Office Action on May 5, 2009 confirming the patentability of all but Claim 13 of the '662 Patent.

JuxtaComm initiated the second lawsuit, JuxtaComm-Texas Software, LLC v. Axway, Inc. et al (JuxtaComm II), No. 6:10cv011 (E.D.Tex.), in January 2010 against additional software vendors. Two of the defendants in this lawsuit, also in the Eastern District of Texas, filed an ex parte request for reexamination questioning the patentability of the '662 Patent. This second reexamination relied on allegedly new prior art (DBMS Copy Plus), alone and in combination with another system (The DAISY System) that was rejected in the first reexamination. On May 12, 2011, the PTO issued a Final Office Action invalidating Claims 1-11 and 14-19 of the '662 Patent.1 Upon JuxtaComm’s request, the examiner reconsidered certain evidence, and on June 7, 2011, withdrew her final rejection of the claims as obvious over the combination of DBMS Copy Plus and the DAISY System; however, she left intact the rejection of the claims as anticipated by DBMS Copy Plus.

JuxtaComm filed its Complaint in this case, JuxtaComm III, on May 6, 2011. JuxtaComm represented its intention to appeal the June 2011 decision, and accordingly, six of the Defendants moved to stay this litigation pending reexamination (ECF Nos. 39, 55, 57, 65, 71). The Court granted the Motion to Stay on July 21, 2011, and directed JuxtaComm to file status reports regarding the reexamination every 120 days. On February 22, 2013, JuxtaComm filed a status report advising the Court of a final and unappealable ruling by the Board of Patent Appeals and Interferences (“BPAI”) reversing the examiner and finding that Claims 1-11 and 14-19 should not have been rejected as anticipated. (See Pl.’s Interim Reexamination Status Report ECF No. 84, Ex. 1.) Juxta[473] Comm also informed the Court that the U.S. District Court for the Eastern District of Texas (hereinafter “JuxtaComm II Court”) granted summary judgment to the defendants in JuxtaComm II and issued final judgment on September 19, 2012. (See JuxtaComm II, July 5, 2012 Order, ECF No. 1079.) JuxtaComm represents that its appeal of this judgment is pending, with briefing before the U.S. Court of Appeals for the Federal Circuit to-be completed by May 18, 2018.

On March 8, 2013, Defendants filed the present Motions asking that (1) the Court lift the stay for the limited purpose of allowing Defendants to amend their Answers, and (2) the Court enter a judgment on the pleadings, or in the alternative, grant summary judgment based on collateral estoppel from the JuxtaComm II judgment By Order on April 16, 2013, the Court lifted the stay and granted Defendants leave to amend their Answers. Each of the Defendants has timely filed its amended Answer Asserting the doctrine of collateral estoppel as an affirmative defense.2 Thus, the Court now considers whether Defendants are entitled to judgment on the pleadings, or alternatively, summary judgment on. the ground of collateral estoppel. . This matter has been fully briefed and is ripe for review.

II. LEGAL STANDARD

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JuxtaComm-Texas Software, LLC v. Lanier Parking Systems of Virginia, Inc., 944 F. Supp. 2d 469, 2013 WL 1897112, 2013 U.S. Dist. LEXIS 64631 (E.D. Va. 2013).

944 F. Supp. 2d 469 (JuxtaComm-Texas Software, LLC v. Lanier Parking Systems of Virginia, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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