Noah Systems, Inc. v. Intuit Inc.

675 F.3d 1302, 102 U.S.P.Q. 2d (BNA) 1410, 2012 U.S. App. LEXIS 7094, 2012 WL 1150216
CourtCourt of Appeals for the Federal Circuit
DecidedApril 9, 2012
Docket2011-1390
StatusPublished
Cited by126 cases

This text of 675 F.3d 1302 (Noah Systems, Inc. v. Intuit Inc.) 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.

Bluebook
Noah Systems, Inc. v. Intuit Inc., 675 F.3d 1302, 102 U.S.P.Q. 2d (BNA) 1410, 2012 U.S. App. LEXIS 7094, 2012 WL 1150216 (Fed. Cir. 2012).

Opinion

O’MALLEY, Circuit Judge.

Noah Systems, Inc. (“Noah”) appeals the district court’s entry of judgment in favor of Intuit Inc. (“Intuit”). After construing the disputed terms of the asserted claims of U.S. Patent No. 5,875,435 (“the '435 patent”), the district court determined that an “access means” limitation in the claims of the '435 patent was indefinite, *1295 and, therefore, granted Intuit’s Motion for Summary Judgment of Invalidity. Because we agree that the “access means” limitation is indefinite, we affirm the district court’s judgment.

Background

This appeal arises out of an action brought by Noah against Intuit for infringement of the '435 patent. The '435 patent relates to an automated financial accounting system. The system allows a business or individual to connect to the computers of companies with which that entity conducts business so that information regarding financial transactions can be transmitted between them. Noah asserts that Intuit’s Quicken and QuickBooks products infringe system claims 12-17, 29-38, and 40-56. All of the asserted claims contain an “access means” limitation. The parties agree that this is a means-plus-function limitation performed by a processor. As such, the specification of the '435 patent must contain an algorithm to perform the function associated with the “access means” limitation, or the limitation is indefinite. This appeal turns on whether the specification discloses an algorithm to perform the function or functions associated with the “access means” limitation.

I. The '435 Patent

The '435 patent discloses an accounting system and methods for using the system. 1 The automated accounting system includes a financial accounting computer, a financial transaction computer, a communications means, and an access means. '435 patent col.2 11.26-41. The disclosed system “brings together ... all of the various entities that -are involved with financial transactions between a first entity, such as an individual or a business, and other entities, such as merchants, financial institutions and the like.” Id. at col.3 11.56-64. In the patented system, the financial accounting computer is associated with the first entity, whereas the “other entities” possess the financial transaction computers. Id. at col.3 1.66— col.4 1.10. The financial accounting computer contains a master ledger file that is used to receive and record data transmitted from the financial transaction computers. Id. at col.3 11.26-30; col.4 11.32-35. Each financial transaction computer, on the other hand, contains a subsidiary ledger file, which stores information regarding transactions made between the first entity and that second entity. Id. at col.4 11.4-13. Periodically, financial transaction data is transferred from subsidiary ledger files to the master ledger file on the financial accounting computer. Id. at col.6 11.9-14.

After the system transfers and incorporates the financial transaction data into the master ledger, the system provides authorized agents of the first entity with access to the master ledger, so they can “enter, delete, review, adjust and process data inputs” contained within the file. Id. at col.4 11.45-61. The specification describes the “access means” in relation to the flow chart contained in Figure 1. The relevant portion of Figure l’s flow chart discloses:

*1296 [[Image here]]

Id. at Fig. 1.

Describing Figure 1, the specification states, “line 27 leads to box 32 where passcodes are issued to approved interactive account user(s) and agent(s)____This access to the master ledger ... allows the agents to perform activities selected from the group consisting of entering, deleting, reviewing, adjusting and processing data inputs in the master ledger____” Id. at col.4 11.47-56. After passcodes are issued, “[l]ine 41 then leads to box 44 where the access to the data inputs in the master ledger is set forth. This access can be provided to interactive users and agents of the first entity.” Id. at col.6 11.15-18. At box 44, the system enables authorized agents to enter “change order[s], recording instruction adjustments, manual transactions and the like....” Id. at col.6 11.18— 20. Once an agent has entered an order, the system, at box 52, determines whether the entry is valid. Id. at col.6 11.22-23. An entry’s validity “is determined by whether the passcode matches the predesignated list of approved passcodes and whether the entry is complete in form and substance.” Id. at col.6 11.28-30. The system will process only valid entries. See id. at col.6 11.22-36.

Noah alleges that Intuit’s products infringe independent claims 12, 52, 53, and 56. Representative independent claim 12 recites:

A financial accounting system for a first entity such as an individual or a business, said system comprising:
a financial accounting computer having at least one file;
a financial transaction computer for receiving data inputs, said data inputs including electronically recorded financial *1297 transactions made between said first entity and a second entity;
first communication means for transferring said data inputs from said financial transaction computer to said file of said financial accounting computer; and
means for providing access to said file of said financial accounting computer for said first entity and/or agents of said first entity so that said first entity and/or said agent can perform one or more activities selected from the group consisting of entering, deleting, revieioing, adjusting and processing said data inputs.

Id. at col.12 11.25-41 (emphasis added). The parties agree that the emphasized language is the “access means” limitation. 2

II. Procedural History

Shortly after Noah filed its complaint, Intuit requested an ex parte reexamination of the '435 patent. The PTO granted this request, and the litigation was stayed pending resolution of the reexamination. Ultimately, on June 9, 2009, the PTO confirmed the patentability of the original claims of the '435 patent and determined that new claims 19-56 were patentable. Joint Appendix (“J.A.”) 138-42. Upon resolution of the reexamination proceedings, the district court lifted its stay, re-opened the case, and permitted Noah to also assert infringement with respect to its newly allowed claims.

After the case was re-opened, the parties proceeded with claim construction briefing. Although the parties disputed the construction of many terms, only the construction of “access means” is relevant to this appeal. 3 Both parties agreed that this limitation is a means-plus-function limitation.

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675 F.3d 1302, 102 U.S.P.Q. 2d (BNA) 1410, 2012 U.S. App. LEXIS 7094, 2012 WL 1150216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/noah-systems-inc-v-intuit-inc-cafc-2012.