Kroy IP Holdings, LLC v. Safeway, Inc.

107 F. Supp. 3d 656, 2015 U.S. Dist. LEXIS 69364, 2015 WL 3452617
CourtDistrict Court, E.D. Texas
DecidedMay 29, 2015
DocketCASE NO. 2:12-cv-800-WCB
StatusPublished

This text of 107 F. Supp. 3d 656 (Kroy IP Holdings, LLC v. Safeway, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kroy IP Holdings, LLC v. Safeway, Inc., 107 F. Supp. 3d 656, 2015 U.S. Dist. LEXIS 69364, 2015 WL 3452617 (E.D. Tex. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

WILLIAM C. BRYSON, UNITED STATES CIRCUIT JUDGE

In one of several summary judgment motions filed in this patent infringement action, the defendant, Safeway, Inc., has moved for summary judgment of invalidity as to all of the asserted claims of U.S. Patent No. 7,054,830 (“the '830 patent”), which is owned by plaintiff Kroy IP Holdings, LLC. Dkt. No. 148. Kroy opposes the motion. Dkt. No. 162. After full briefing and a hearing on the motion, the Court GRANTS Safeway’s motion for summary judgment.

I. BACKGROUND

The two asserted independent claims of the '830 patent are claims 1 and 19. They provide as follows:

[658]*6581. A system for incentive program participation and automated award ■ fulfillment, comprising:
a host computer coupled to a network; a first database accessible from said host computer; and
an automated award fulfillment application program executed on said host computer for participation in incentive programs of a plurality of providers in communication with an inventory management system associated with each of said plurality ’ of providers wherein said automated award fulfillment application program provides sponsor-selected fulfillment, said automated award fulfillment application program- comprising:
code adapted to provide a sponsor-selected specific award unit item, said sponsor-selected specific award unit item being tailored to demographic and psychographic preferences of a sponsor-selected consumer user; and code adapted to provide a sponsor-selected geographic location for fulfillment.
19. A method for providing an incentive .programs [sic] and automating [sic] award fulfillment, comprising: .
providing a host computer;
providing an incentive program on the host computer, wherein a participant may participate,in said incentive program;
providing a database of awards on the host computer associated with the incentive program; and
providing automated award fulfillment of said awards to participants, including
providing communication with an inventory management system associated with each of a plurality of providers wherein said automated award fulfillment comprises
providing a sponsor-selected specific award unit item,
providing said sponsor-selected specific award unit item tailored according to demographic and psychographic preferences of a sponsor-selected consumer user, and
providing a sponsor-selected geographic location for fulfillment.

In addition to the two independent claims, Kroy asserts claims 20, 21, 23, and 24, all of which depend from claim 19.1 Those claims add that the database of awards includes awards from a plurality of sponsors (claim 20); that the method of claim 19 further comprises associating an award with the incentive program and associating a fulfillment méthod with the award (claim 21); “providing a card comprising memory for storing data associated with a user” (claim 23); and adding to the limitations of claim 23 that the card has a personal identification number (claim 24).

In its summary judgment motion, Safeway argues that the asserted claims are invalid for anticipation under U.S. Patent No. 5,822,735.to DeLapa, and that they are invalid for obviousness under a combination of DeLapa and U.S. Patent No. 5,970,-469 to Scroggie (“Scroggie”).

II. DISCUSSION

At the outset, Kroy makes two related general arguments in response to Safeway’s summary judgment motion. The [659]*659Court finds neither of those arguments persuasive.

Kroy’s principal argument is that Safeway’s summary judgment motion is fatally deficient because it does not view the patent from the perspective of a person of ordinary skill in the art. Relatedly, Kroy argues that Safeway’s motion should be denied because Safeway has not submitted an expert report in support of the motion.

Those arguments do not have force in this case because the '830 patent does not involve technology of any significant complexity. While the claims are difficult to parse, that is not because they involve complex technology, but because they use unnecessarily abstract language seemingly invented for the purpose of the patent, and because they are unnecessarily verbose. Once past the abstractions and the prolixity, the claims require no technical background to understand, and even the lengthy specification requires no more than an educated layperson’s knowledge of computers to . comprehend. Nothing in Kroy’s briefing, or in the declarations of its expert, provides any reason to believe that a person of ordinary skill in the art relating to the '830 patent would understand that patent differently than would a lay reader.

According to Kroy’s expert, Robert Sherwood, a person of ordinary skill in the art relating to the '830 patent would have a bachelor’s degree in marketing, 3-4 years of work experience developing or managing retail incentive programs, and a working knowledge of the use of retail computer systems and networks in retail incentive programs. Dkt. No. 163-2, at 16. For purposes of this motion, the court accepts Kroy’s submission as to the level of skill in the art and therefore treats the issue of the level of skill of a person of ordinary skill in the art as not being in dispute.

The level of skill identified by Kroy does not reflect a- high degree of technical expertise. Therefore, accepting Kroy’s submission as to the level of knowledge of a person of ordinary skill in the relevant art, the Court concludes that expert evidence is not necessary, or even particularly helpful, in understanding the '830 patent or in understanding it in the way a person of ordinary skill in the art would understand it. See Wyers v. Master Lock Co., 616 F.3d 1231, 1240 & n. 5 (Fed.Cir.2010); Perfect Web Techs., Inc. v. InfoUSA, Inc., 587 F.3d 1324, 1329 (Fed.Cir.2009); Centricut, LLC v. Esab Grp., Inc., 390 F.3d 1361, 1369 (Fed.Cir.2004); Union Carbide Corp. v. Am. Can Co., 724 F.2d 1567, 1573 (Fed.Cir.1984).

The same principle applies to Mr. Sherwood’s analysis of the DeLapa prior art patent. As in the case of the '830 patent, the DeLapa patent does not involve complex technology, but consists mainly of general descriptions of relatively simple functions performed on a computer system. The specification and claims of De-Lapa are easily understood without the assistance of expert testimony; in fact, Mr. Sherwood’s declarations are really more in the nature of supplemental legal argument about anticipation and obviousness than they are about the technology disclosed in the '830 patent and the DeLapa patent.

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107 F. Supp. 3d 656, 2015 U.S. Dist. LEXIS 69364, 2015 WL 3452617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kroy-ip-holdings-llc-v-safeway-inc-txed-2015.