Multimedia Plus, Inc. v. Playerlync, LLC

198 F. Supp. 3d 264, 2016 U.S. Dist. LEXIS 99513, 2016 WL 4074439
CourtDistrict Court, S.D. New York
DecidedJuly 29, 2016
Docket14cv8216
StatusPublished
Cited by4 cases

This text of 198 F. Supp. 3d 264 (Multimedia Plus, Inc. v. Playerlync, LLC) 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
Multimedia Plus, Inc. v. Playerlync, LLC, 198 F. Supp. 3d 264, 2016 U.S. Dist. LEXIS 99513, 2016 WL 4074439 (S.D.N.Y. 2016).

Opinion

OPINION & ORDER

WILLIAM H. PAULEY, III, District Judge:

Plaintiffs Multimedia Plus, Inc. and Multimedia Technologies, LLC (collectively “Plaintiffs” or “Multimedia”) bring this patent-infringement action against defendant PlayerLync, LLC. PlayerLync moves for judgment on the pleadings, asserting that the patent is invalid under 35 U.S.C. § 101 for failure to claim patent-eligible subject matter. PlayerLync’s motion for judgment on the pleadings is granted and this action is dismissed.

BACKGROUND

In March 2004, David Harouche filed an application with the United States Patent and Trademark Office (“USPTO”) seeking a patent for a “Hosted Learning Management System and Method for Training Employees and Tracking Results of Same” (“Hosted Learning Management System”). In October 2006, the USPTO rejected that application for failing to provide any “tangible results and practical real world application” under the now defunct “useful concrete tangible result test.” (PI. Ex. 1 at 98.) Harouche amended his application and, in November 2007, the USPTO withdrew its rejection and issued United States Patent No. 7,293,025 (the “’025 Patent”). Thereafter, Harouche assigned the ’025 Patent to Multimedia Technologies, which, in turn, granted an exclusive license to Multimedia Plus. (Complaint ¶ 5.)

The ’025 Patent is encapsulated in two independent claims: Claim 1 (the system claim) and Claim 12 (the method claim). Claim 1 reads:

1. A hosted learning management training system for training employees, each employee having a unique identifier, comprising:
at least one local computer having a low bandwidth connection; a high bandwidth training program resident with said local computer, said training program including an interactive test having questions;
a first human-computer interface connected to said local computer enabling an employee to enter answers to said questions in said local computer;
a remote computer server at a central location communicable with said at least one local computer via said low bandwidth connection and receiving low bandwidth test information from said at least one local computer via said low bandwidth connection;
and a second interface enabling a manager to access said low bandwidth test information on said central server, wherein when an employee interacts with said training program, said local computer transmits only the employee’s identifier and said low bandwidth test information to said central server thereby allowing dynamic managerial oversight.

(’025 Patent at 8:37-59.) Claim 12 reads:

12. A method of training employees via a hosted learning management training system, each employee having a unique identifier, comprising the steps of:
a) presenting a high bandwidth training program including a test having questions on at least one device associated [267]*267with a local computer having a low bandwidth connection;
b) enabling an employee to take the test and enter answers to the questions on the local computer via a first human-computer interface connected to the local computer;
c) providing a remote computer server at a central location in communication with the at least one local computer via the low bandwidth connection and adapted to receive low bandwidth test information from the at least one local computer;
d) transmitting from the local computer to the central server only the employee identifier and the low bandwidth test information via the low bandwidth connection when an employee interacts with the training program; and
e) enabling a manager to access the low bandwidth test information from the central server in real time.

(’025 Patent at 9:54-10:11.)

The invention seeks to combine two methods for employee training. In one, employees view videotaped presentations on CD-ROM or DVD and then answer questions. (See ’025 Patent at 1:38-59.) The drawback to this method is that, in order to sort test data by any number of variables, the test information needs to be entered into a centralized database. (See ’025 Patent at 1:60-2:9.) The other method is to place the presentation and questions on a centralized computer that employees can access remotely. (See ’025 Patent 2:11-16.) The drawback to this approach is the need for high-bandwidth connections to access the media and a robust server to accommodate multiple connections. (See ’025 Patent 2:16-22.)

The Hosted Learning Management System purports to surmount these drawbacks by maintaining large media files locally while transmitting only minimal data to a centralized server for analysis. In particular, the ’025 Patent describes a local computer (or smartphone) with training software and high-bandwidth media installed by CD-ROM, DVD, or a one-time download, without the need for a high-bandwidth connection. The employee’s computer then transmits the test information (employee ID, answers to questions, etc.) to a remote, central server via a low-bandwidth connection that can be accessed by the employee’s manager or test-administrator. Importantly, because the “large training program ... need not be transmitted at all,” the Hosted Learning Management System enables employees to take tests and submit answers without burdening the local data line. (See ’025 Patent 2:43-59.)

In October 2014, Multimedia commenced this lawsuit alleging that PlayerLync infringed and continues to infringe the ’025 Patent.

LEGAL STANDARD

Patents are presumed valid and the “burden of establishing invalidity of a patent or any claim thereof shall rest on the party asserting such invalidity.” 35 U.S.C. § 282. Typically, the invalidity of the patent must be established by “clear and convincing evidence.” Microsoft Corp. v. 141 Ltd. P’ship, 564 U.S. 91, 95, 131 S.Ct. 2238, 180 L.Ed.2d 131 (2011). However, after Alice Corp. Pty. v. CLS Bank Int’l, — U.S.—, 134 S.Ct. 2347, 189 L.Ed.2d 296 (2014), “courts have frequently decided questions of patent eligibility on the pleadings.” TNS Media Research, LLC v. Tivo Research & Analytics, Inc., No. 11-cv-4039 (SAS), 166 F.Supp.3d 432, 446, 2016 WL 817447, at *10 (S.D.N.Y. Feb. 22, 2016); see also PIP Techs., Inc. v. Amazon.com, Inc., 788 F.3d 1359, 1364 (Fed. Cir.2015) (Mayer, J., concurring) (“Addressing 35 U.S.C. § 101 at the outset not only conserves scarce judicial resources [268]*268and spares litigants the staggering costs associated with discovery and protracted claim construction litigation, it also works to stem the tide of vexatious suits brought by the owners of vague and overbroad business method patents.”).

“Judgment on the pleadings is appropriate where material facts are undisputed and where a judgment on the merits is possible merely by considering the contents of the pleadings.” Sellers v. M.C. Floor Crafters, Inc., 842 F.2d 689, 642 (2d Cir.1988) (citation omitted).

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Bluebook (online)
198 F. Supp. 3d 264, 2016 U.S. Dist. LEXIS 99513, 2016 WL 4074439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/multimedia-plus-inc-v-playerlync-llc-nysd-2016.