Kaufman v. Microsoft Corporation

CourtDistrict Court, S.D. New York
DecidedJanuary 25, 2021
Docket1:16-cv-02880
StatusUnknown

This text of Kaufman v. Microsoft Corporation (Kaufman v. Microsoft Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kaufman v. Microsoft Corporation, (S.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------- x : MICHAEL PHILIP KAUFMAN, : ORDER DENYING MOTION : FOR JUDGMENT OF LAW Plaintiff, : AND FOR A NEW TRIAL : -against- : 16 Civ. 2880 (AKH) : MICROSOFT CORPORATION : : Defendant. : : --------------------------------------------------------------- x

ALVIN K. HELLERSTEIN, U.S.D.J.: Following trial, a jury reached a verdict that Defendant Microsoft Corporation’s (“Defendant” or “Microsoft”) computer application, Dynamic Data, infringes U.S. Patent No. 7,885,981 (the “’981 Patent”), which is owned by Plaintiff Michael Kaufman (“Plaintiff” or “Kaufman”). The jury found that Kaufman was entitled to $7 million in damages. Microsoft moves for judgment as a matter of law pursuant to Federal Rule of Civil Procedure 50(b) or for a new trial pursuant to Federal Rule of Civil Procedure 59. As detailed further herein, Microsoft’s motion is denied. BACKGROUND I assume familiarity with the factual and procedural history of this case. To summarize briefly, Kaufman’s ’981 Patent issued in 2011. See Pl. Ex.1 1 (’981 Patent). The ’981 Patent describes an invention that helps users interact with relational computer databases. “It is an object of the invention to provide a complete and fully functional user interface (UI) for any arbitrarily complex or large database schema, without any custom software programming.”

1 “Pl. Ex.” refers to a trial exhibit offered by Plaintiff. ’981 Patent at 3:8-12. The ’981 Patent contains six claims. Claims 1 through 3 and 5 are at issue here.2 A key feature of the claimed invention is the ability to “automatically generat[e] an end- user interface for working with the data within a relational database.” ’981 Patent at 377:3-4, 377:46-48, 378:23-25. It works with relational databases of “any arbitrary size or complexity.”

’981 Patent at 377:11-12, 377:54-55, 378:29-31. The invention also claims “a user interface paradigm comprising a set of modes for interacting with a given database table, said modes comprising create, retrieve, update and delete, and a corresponding display format for each mode,” “integrat[ing] into each said mode display processes for representing, navigating, and managing said relationships across tables.” ’981 Patent at 377:14-19, 377:25-38, 377:58-378:4, 378:9-21, 378:32-36, 378:41-54. In 2008, Microsoft released Dynamic Data. The Dynamic Data application is available through Microsoft’s software Visual Studio. Microsoft also had an older program, Microsoft Access 2000, that performed some similar functions. Kaufman contends that Dynamic Data, and more specifically the scaffolding function within Dynamic Data, infringes his ’981

Patent. Kaufman filed this suit on April 18, 2016, bringing claims for direct infringement, induced infringement, contributory infringement, and willful infringement, of the ’981 Patent. I issued a claim construction order following a Markman hearing. ECF No. 69. I dismissed the willful infringement claim on summary judgment and denied Defendant’s motions for summary judgment in all other respects. ECF Nos. 102, 166.

2 Plaintiff never alleged infringement of Claim 6. At trial, I also granted Defendant’s motion for judgment as a matter of law as to Claim 4 after Plaintiff failed to present evidence of certain limitations of the claim. Trial Tr. at 979:23-980:10, 982:8-9. At trial, Kaufman described how he developed his invention and how it functions as a user-friendly way for interacting with raw, complex databases and automatically adjusting to changes in underlying database schema. See Trial Tr.3 at 134:14-144:9. Plaintiff’s expert witness, Dr. Dennis Shasha, walked through a demonstration of Dynamic Data and related each

step to the claims of the ’981 Patent. Trial Tr. at 287:5-348:14. As to damages, Plaintiff solicited the expert testimony of Brian Dies. Dies, relying in part on the costs of similar products, estimated the royalty rate Microsoft would have paid Kaufman had the parties negotiated a license at the time the ’981 Patent issued. Trial Tr. at 777:19-793:1. He also estimated the number of users of Dynamic Data. Trial Tr. at 766:5-777:18. From these variables, he arrived at the lump sum royalty payment Kaufman should receive. The jury delivered a verdict in Kaufman’s favor, finding Kaufman proved that Dynamic Data infringed the relevant claims of the ’981 Patent, and Microsoft failed to prove that the relevant claims were invalid. Ct. Ex.4 6. After returning its verdict as to liability, the jury deliberated on damages. The jury found that Plaintiff was entitled to $7 million in damages for

Defendant’s infringement. Ct. Ex. 8. DISCUSSION A court may grant judgment as a matter of law after an issue has been fully presented to the jury if the court finds “a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue.” Fed. R. Civ. P. 50(a). Where, as here, the court denies a motion for judgment as a matter of law before the case is submitted to the jury, the movant may renew its motion pursuant to Rule 50(b). “[T]he movant must show that the evidence, when viewed most favorably to the non-movant, was insufficient to permit a

3 “Trial Tr.” refers to the trial transcript, ECF Nos. 173, 177, 179, 181, 183, 185, 187, 207. 4 “Ct. Ex.” refers to a court trial exhibit. reasonable juror to have found in the non-movant’s favor.” Conte v. Emmons, 895 F.3d 168, 171 (2d Cir. 2018); see also Samuels v. Air Transport Local 504, 992 F.2d 12, 16 (2d Cir. 1993) (“trial court must view the evidence in a light most favorable to the nonmovant and grant that party every reasonable inference that the jury might have drawn in its favor”). “The standard is a

high one, met only in ‘rare occasions.’” Conte, 895 F.3d at 171 (quoting George Basch Co. v. Blue Coral, Inc., 968 F.2d 1532, 1536 (2d Cir. 1992)). Under Rule 59, a new trial may be granted “for any reason for which a new trial has heretofore been granted in an action at law in federal court.” Fed. R. Civ. P. 59(a)(1)(A). “A motion for a new trial should be granted when, in the opinion of the district court, ‘the jury has reached a seriously erroneous result or . . . the verdict is a miscarriage of justice.’” Song v. Ives Labs., Inc., 957 F.2d 1041 (2d Cir. 1992) (quoting Smith v. Lightning Bolt Productions, Inc., 861 F.2d 363, 370 (2d Cir.1988)). The Rule 59 standard is “a less stringent standard than Rule 50 in two significant respects: (1) a new trial under Rule 59(a) ‘may be granted even if there is substantial evidence supporting the jury’s verdict,’ and (2) ‘a trial judge is free to weigh the

evidence himself, and need not view it in the light most favorable to the verdict winner.’” Manley v. AmBase Corp., 337 F.3d 237, 244-45 (2d Cir. 2003) (quoting DLC Mgmt. Corp. v. Town of Hyde Park, 163 F.3d 124, 133-34 (2d Cir.1998)). Defendant contends that it is entitled to judgment as a matter of law, or in the alternative, to a new trial, as to each key facet of the case: that Dynamic Data does not infringe the ’981 Patent, that the ’981 Patent is invalid, and that Plaintiff failed to prove damages. I address each argument in turn. I.

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Kaufman v. Microsoft Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaufman-v-microsoft-corporation-nysd-2021.