Netscape Communications Corp. v. VALUECLICK, INC.

704 F. Supp. 2d 544, 76 Fed. R. Serv. 3d 764, 2010 U.S. Dist. LEXIS 32817, 2010 WL 1303473
District Court, E.D. Virginia·Decided April 2, 2010·No. 1:09cv225·Published·Cited by 29 cases

Opinion

MEMORANDUM OPINION

T.S. ELLIS, III, District Judge.

In this patent infringement suit, plaintiff claims that defendants 1 wilfully infringed, and continue to infringe, U.S. Patent No. 5,774,670 (“the '670 patent”), colloquially known as the “Internet cookies” patent. Following full briefing and argument, the disputed patent claim terms were construed pursuant to Markman v. Westview Instruments, Inc., 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996). See Netscape Commc’ns Corp. v. ValueClick, Inc. (Netscape I), 684 F.Supp.2d 678 (E.D.Va.2009) (Mem. Op.). The parties thereafter filed various cross-motions for summary judgment, which motions were partially resolved in a Memorandum Opinion dated January 29, 2010. See Netscape Commc’ns Corp. v. ValueClick, Inc. (Netscape II), 684 F.Supp.2d 699 (E.D.Va.2010) (Mem. Op.) (hereinafter “the Memorandum Opinion”). 2 At issue here is plaintiffs motion for reconsideration with respect to the entry of summary judgment in favor of defendants on a single issue, namely that claim 1 of the '670 patent is invalid under the statutory on-sale bar pursuant to 35 U.S.C. § 102(b).

I.

Under the Supreme Court’s seminal decision in Pfaff v. Wells Electronics, Inc., 525 U.S. 55, 119 S.Ct. 304, 142 L.Ed.2d 261 (1998), a party invoking the § 102(b) statutory on-sale bar must prove (i) a commercial offer for sale of an invention that is (ii) ready for patenting prior to the statutory one-year period, i.e., the “critical date.” The first Pfaff requirement is further separated into two distinct, constituent elements: (i) a commercial offer for sale, and (ii) a sufficient degree of identity between the subject of the offer for sale and the patented invention. See Allen Eng’g Corp. v. Bartell Indus., Inc., 299 F.3d 1336, 1353 (Fed.Cir.2002). Importantly, both prongs of the Pfaff test must be proven by clear and convincing evidence. Clock Spring, L.P. v. Wrapmaster, Inc., 560 F.3d 1317, 1325 (Fed.Cir.2009).

After considering the parties’ pleadings, memoranda and exhibits submitted in support of their various motions for summary judgment, and the representations made by counsel in the course of the September 25, 2009 and December 18, 2009 hearings, the Memorandum Opinion found certain facts to be undisputed and material with respect to the on-sale bar analysis. See Netscape II, 684 F.Supp.2d at 704-09. Based on these factual findings, the Memorandum Opinion then found, by clear and convincing evidence, that claim 1 of the '670 patent was invalid under the § 102(b) *546 on-sale bar because: (i) plaintiff had made a commercial offer to MCI Communications Corp. (“MCI”) in September 1994; (ii) the subject of the offer was sufficiently identical to the method disclosed in claim 1; and (iii) the method disclosed in claim 1 was “ready for patenting” prior to October 6,1994. Id. at 709-19.

In its motion for reconsideration, plaintiff argues that there was insufficient evidence of identity between the method disclosed in claim 1 and the subject of the offer to MCI, but does not challenge the fact of a commercial offer. Moreover, plaintiff contends that the invention was not “ready for patenting” prior to October 6, 1994. Notably, in moving for reconsideration plaintiff relies on some arguments rejected in the Memorandum Opinion, and additionally makes new arguments not raised in the earlier summary judgment briefs, including chiefly the application of the evidentiary corroboration requirement. 3 The parties fully briefed and argued the issues at a March 26, 2010 hearing, at which time the motion was taken under advisement. Accordingly, the matter is ripe for disposition.

II.

At the threshold, the parties challenge the proper standard of review applicable to plaintiff’s motion for reconsideration. Plaintiff moves for reconsideration under Rules 54(b), 59(e), and 60(b)(6), Fed. R.Civ.P. Motions for reconsideration pursuant to Rules 59(e) and 60(b)(6) are considered to be requests for an “extraordinary remedy” reserved only for “extraordinary circumstances” in which: (i) there is an intervening change in the law; (ii) new evidence not available at trial has been discovered; or (iii) a clear error of law must be corrected in order to prevent manifest injustice. See Pac. Ins. Co. v. Am. Nat’l Fire Ins. Co., 148 F.3d 396, 403 (4th Cir.1998) (setting standards for motion pursuant to Rule 59(e)); Dowell v. State Farm Fire & Cas. Auto. Ins. Co., 993 F.2d 46, 48 (4th Cir.1993) (limiting relief under Rule 60(b)(6) to “extraordinary circumstances”). By contrast, a motion for reconsideration filed under Rule 54(b), Fed. R.Civ.P., 4 does not require a showing of extraordinary circumstances.

The Fourth Circuit has made clear that where, as here, the entry of partial summary judgment fails to resolve all claims in a suit, Rule 54(d)—not Rule 59(e) or 60(b)—governs a motion for reconsideration:

[A]n order of partial summary judgment is interlocutory in nature. See, e.g., 11 Moore’s Federal Practice § 56.40[3] (Matthew Bender 3d ed.) (“A partial summary judgment order is interlocutory. ...”). Motions for reconsideration of interlocutory orders are not subject to the strict standards applicable to motions for reconsideration of a final judgment. See 12 Moore’s Federal Practice § 60.23 (“Rule 60(b) does not govern relief from interlocutory orders.... ”).

*547 Am. Canoe Ass’n v. Murphy Farms, Inc., 326 F.3d 505, 514-15 (4th Cir.2003). And while doctrines such as law of the case guide a district court’s discretion to reconsider an earlier partial summary judgment ruling, it is clear that “[t]he ultimate responsibility of the federal courts, at all levels, is to reach the correct judgment under law.” Id.

Accordingly, the motion at bar is properly brought only pursuant to Rule 54(d), Fed.R.Civ.P., and therefore plaintiff is not required to make a showing of extraordinary circumstances. Instead, the goal here “is to reach the correct judgment under law.” Id.

III.

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Netscape Communications Corp. v. VALUECLICK, INC., 704 F. Supp. 2d 544, 76 Fed. R. Serv. 3d 764, 2010 U.S. Dist. LEXIS 32817, 2010 WL 1303473 (E.D. Va. 2010).

704 F. Supp. 2d 544 (Netscape Communications Corp. v. VALUECLICK, INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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