Lyda v. CBS Corporation

838 F.3d 1331, 120 U.S.P.Q. 2d (BNA) 1310, 2016 U.S. App. LEXIS 17694, 2016 WL 5539875
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 30, 2016
Docket2015-1923
StatusPublished
Cited by35 cases

This text of 838 F.3d 1331 (Lyda v. CBS Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Lyda v. CBS Corporation, 838 F.3d 1331, 120 U.S.P.Q. 2d (BNA) 1310, 2016 U.S. App. LEXIS 17694, 2016 WL 5539875 (Fed. Cir. 2016).

Opinion

STOLL, Circuit Judge. ■

Appellant Edwin Lyda appeals a decision of the United States District Court for the' Southern District of New York dismissing his complaint of patent infringement under Federal Rule of Civil Procedure 12(b)(6). Lyda v. CBS Corp., No. 14-CV-6572-VEC, 2015 WL 4393120 (S.D.N.Y. July 16, 2015). We hold that Form 18 does not apply to a claim of joint patent infringement. Because Mr. Lyda’s Amended Complaint fails to state a claim for relief under the Twombly/Iqbal pleading standard, we affirm the dismissal under Rule 12(b)(6).

BACKGROUND

Mr. Lyda is the named inventor on United States Patent Nos. 7,434,243 and 7,730,-506. According to the patents, audience members of game shows or reality programs often use input devices to electronically vote in response to cues during the shows. In particular, the ’243 and ’506 patents cover methods and systems for “obtaining real time responses to remote programming” by “allow[ing] persons viewing or listening to a broadcast to respond to the broadcast in real time without requiring a personal computer.” ’243 patent col. 1 11.14-15, 56-58; ’506 patent col. 1 11.16-17, 57-59. The specifications describe that “the present invention provides a response device for each person who is listening to/viewing a program.” ’243 patent col. 1 11. 62-64; ’506 patent col. 1 11. 63-65. This response device is “configured to allow the audience member to send response data.” ’506 patent col. 7 11. 47-48. The specifications describe embodiments of the response device ranging from a key pad that is “linjited to the choices available to the user presented by the key pad,” to a full alpha-numeric key pad for “unlimited entry possibilities.” Id. col. 5 11. 62-67; ’243 patent col. 5 11. 53-58. The audience members input their vote along with an “identifier code” that identifies the person voting. The responses are sent over a “standard communication system,” such as a telephone line or a two-way paging network. ’243 patent col. 1 1. 66; ’506 patent col. 1 1. 67. The responses are collected at a central location, correlated with the identifier code, and tallied. “If the programming is being presented live as the responses are sent in, the program presenter *1335 can incorporate the responses into the programming and modify the programming to meet the audience’s needs.” ’506 patent col. 511. 37-41; see also ’243 patent col. 511.28-32.

The Amended Complaint asserts four independent claims: method claim 8 and system claim 9 of the ’243 patent, and method claim 1 and system claim 7 of the ’506 patent. Independent method claim 1 of the ’506 patent is representative of the asserted claims and recites:

1. A method for receiving and processing responses to a program comprising:
providing a program identifier code for the program;
providing means for identifying an audience member[;]
providing a user input device not requiring a personal computer, the device configured to allow the audience member to send response data directly from the user input device over a standard communication system in response to the program received apart from the device, the device operating without receiving program data;
having the audience member input the program identifier code into the user input device;
having the audience member input responses to the program received apart from the device into the user input device;
transmitting response data comprising the program identifier code, the means for identifying an audience member, and the responses over the standard communication system;
collecting the response data at a central location;
correlating the program identifier code to the responses;
processing the response data.

’506 patent col. 711. 42—col. 81. 3.

Claim 9 of the ’243 patent and claim 7 of the ’506 patent, while identified as “system” claims in their preambles, recite the same method steps as claim 1. In effect then, the system claims should be treated as method claims. For example, claim 7 of the ’506 patent recites:

7. A system for receiving and processing responses to a program comprising:
providing a program identifier code for the program being presented;
providing a user input device not requiring a personal computer, the device configured to allow an audience member to send response data directly from the user input device over a standard communication system in response to the program received apart from the device, the device operating without receiving program data;
having the audience member input the program identifier code into the user input device;
having the audience member input responses to the program received apart from the device into the user input device;
transmitting the program identifier code and the responses associated with a user identifier over the standard communication system;
collecting, correlating, and processing . the program identifier and the responses;
routing the responses to a program presenter.

Id. col. 8 11. 23-43.'

Mr. Lyda sued Defendants CBS Corporation and its wholly owned subsidiary CBS Interactive, Inc. (collectively, “CBS”) for infringement of the ’243 and ’506 patents for producing and operating the television show “Big Brother.” After CBS no- *1336 tiffed Mr. Lyda of alleged deficiencies in the original complaint, Mr, Lyda filed the Amended Complaint at issue here. The Amended Complaint alleged that Defendants’ operation of the television show Big Brother infringed Mr. Lyda’s patents by allowing television audience members to influence aspects of the show by voting via text message on their cellular phones. The text messages allegedly used codes identifying the sender and the sender’s vote selection.

The Amended Complaint asserts eight nearly identical counts of infringement based on the four asserted independent claims against each of the two defendants. 1 For each of the four claims, method and system claims alike, the Amended Complaint alleges “the participation of people under the control or direction of an independent contractor engaged by the Defendant' CBS Interactive to send votes using text messages.” Am, Compl. ¶¶ 17, 24, 31, 88.

The Amended Complaint further alleges that CBS Interactive tested the system’s capability to receive text message responses prior to using the system during live broadcasts. The Amended Complaint indicates that such testing was carried out by an independent contractor, “Apparently under the control of Defendant CBS Interactive.” Id. ¶ 8.

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838 F.3d 1331, 120 U.S.P.Q. 2d (BNA) 1310, 2016 U.S. App. LEXIS 17694, 2016 WL 5539875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyda-v-cbs-corporation-cafc-2016.