P2I Ltd. v. Favored Tech USA Corporation

CourtDistrict Court, N.D. California
DecidedJune 20, 2025
Docket3:23-cv-01690
StatusUnknown

This text of P2I Ltd. v. Favored Tech USA Corporation (P2I Ltd. v. Favored Tech USA Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
P2I Ltd. v. Favored Tech USA Corporation, (N.D. Cal. 2025).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 P2I LTD., Case No. 23-cv-01690-AMO

8 Plaintiff, ORDER GRANTING DEFENDANTS’ 9 v. MOTION FOR JUDGMENT ON THE PLEADINGS AND TERMINATING 10 FAVORED TECH USA CORPORATION, PLAINTIFF’S MOTION FOR LEAVE et al., TO FILE AN AMENDED COMPLAINT 11 Defendants. Re: Dkt. Nos. 116, 130 12 13 This is a patent infringement dispute. The motion for judgment on the pleadings of 14 Defendants Favored Tech USA Corporation, Jiangsu Favored Nanotechnology Co., Ltd., and GN 15 Audio USA, Inc. (“Defendants”) was heard before this Court on May 6, 2025. Though Plaintiff 16 P2i Ltd. (“P2i”) brought suit to challenge two patents in this case, Defendants’ motion for 17 judgment on the pleadings only challenges one of them. Having read the papers filed by the 18 parties regarding the motion for judgment on the pleadings and carefully considered their 19 arguments therein and those made at the hearing, as well as the relevant legal authority, the Court 20 hereby GRANTS Defendants’ motion for the reasons stated below. 21 Also before the Court is a motion for leave to file an amended complaint from P2i. See 22 ECF 130. That motion is fully briefed and suitable for decision without oral argument. 23 Accordingly, the motion is VACATED from the August 28, 2025, hearing calendar. See Civil 24 L.R. 7-1(b), Fed. R. Civ. Pro. 78(b). The other motions on calendar for August 28, 2025, remain 25 set for hearing. See ECF 139. Having read the parties’ papers regarding the motion for leave to 26 amend and carefully considered their arguments and the relevant legal authority, the Court hereby 27 TERMINATES that motion subject to resubmission in accordance with this order for the reasons 1 I. BACKGROUND 2 United States Patent No. 8,389,070 (the “ ’070 patent”), issued March 5, 2013, is titled 3 “Coating of a Polymer Layer Using Low Power Pulsed Plasma in a Plasma Chamber of a Large 4 Volume.” McKeever Decl., Ex. 1 (’070 patent, ECF 116-2) at 1. The ’070 patent relates to 5 plasma deposition, a technique for coating materials (or “substrates”) with a polymer layer:

6 Using this method, plasmas are generated from organic molecules [i.e., monomer], which are subjected to an electrical field. When 7 this is done in the presence of a substrate, the radicals and molecules of the compound in the plasma polymerise in the gas phase and react 8 with a growing polymer film on the substrate. 9 Id. at 1. The ’070 patent states that “[p]lasma deposition techniques have been quite widely used 10 for the deposition of polymeric coatings onto a range of surfaces.” Id. at 1. The ’070 patent 11 discusses a prior art patent application filed in 1997 and published in 1998. Id. at 1 (“Badyal”). 12 Portions of the Badyal prior art are copied verbatim into the specification of the ’070 patent. 13 Compare McKeever Decl., Ex. 1 at 1 with id., Ex. 2 at 1-2. Prior art patents describe that low 14 power, pulsed plasma should be used to avoid “fragmenting” the monomer and losing functional 15 groups one would prefer to retain in the resulting polymer. See id., Ex. 2, Ex. 4, Ex. 5, Ex. 7 16 (Winther-Jensen), Ex. 8 (Christensen). 17 The ’070 patent acknowledges that Badyal’s process “produce[d] good oil and water 18 repellent coatings . . . using small-scale units of 470 cm3” but suggests “commercial applications” 19 require “larger scale production units.” McKeever Decl., Ex. 1 at 2. According to the patent, 20 “replication” of Badyal’s process “in larger chambers did not produce satisfactory results.” Id. at 21 2. The ’070 patent describes power density parameters, particular monomers used by the 22 inventors, and a host of variables such as carrier gases, flow rates, pressure, and temperature. Id. 23 at 2-6. The patent also describes and depicts apparatuses for use in performing plasma deposition. 24 Id. at 6-9; Figs. 1-3. 25 The Court assumes familiarity with the procedural posture of the case at the time of this 26 Order. Nonetheless, several additional pending motions bear noting because this Order bears on 27 the outcome of the other motions. In addition to Defendants’ motion for judgment on the 1 to responding to certain allegations in the Second Amended Complaint, ECF 90, and Defendants 2 move for sanctions under Federal Rule of Civil Procedure 11, ECF 136. For its part, P2i moves 3 for leave to file a third amended complaint that eliminates the claim for patent infringement 4 targeted at the other patent-in-suit, U.S. Patent 11,041,087 (the “ ’087 patent”). See ECF 130. 5 II. DISCUSSION 6 The Court first considers Defendants’ motion for judgment on the pleadings. Based on its 7 conclusions, the Court then briefly addresses P2i’s motion for leave to file an amended complaint. 8 A. Motion for Judgment on the Pleadings 9 Defendants move for judgment on the pleadings on the basis that P2i’s ’070 patent is 10 ineligible for patentability because it seeks to patent an abstract idea, a subject matter ineligible for 11 patent protection. “After the pleadings are closed – but early enough not to delay trial – a party 12 may move for judgment on the pleadings.” Fed. R. Civ. P. 12(c). “Judgment on the pleadings is 13 properly granted when there is no issue of material fact in dispute, and the moving party is entitled 14 to judgment as a matter of law.” Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009) (citing 15 Heliotrope Gen., Inc. v. Ford Motor Co., 189 F.3d 971, 979 (9th Cir. 1999)). A Rule 12(c) motion 16 is reviewed using the same standard as a Rule 12(b) motion. Dworkin v. Hustler Mag., Inc., 867 17 F.2d 1188, 1192 (9th Cir. 1989). Accordingly, the court “accept[s] factual allegations in the 18 complaint as true and construe[s] the pleadings in the light most favorable to the nonmoving 19 party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008) 20 (citation omitted). 21 Under Section 101 of the Patent Act, “[w]hoever invents or discovers any new and useful 22 process, machine, manufacture, or composition of matter, or any new and useful improvement 23 thereof, may obtain a patent therefor . . .” 35 U.S.C. § 101. The Supreme Court “has long held 24 that this provision contains an important implicit exception: Laws of nature, natural phenomena, 25 and abstract ideas are not patentable.” Alice Corp. Pty. Ltd. v. CLS Bank Int’l, 573 U.S. 208, 216 26 (2014). These three categories of subject matter are excepted from patent-eligibility because “they 27 are the basic tools of scientific and technological work,” which are “free to all [people] and 1 71 (2012) (citations omitted). The Supreme Court explained that allowing patent claims for such 2 purported inventions would “tend to impede innovation more than it would tend to promote it,” 3 thereby thwarting the primary object of the patent laws. Id. However, the Court also cautioned 4 that “[a]t some level, all inventions embody, use, reflect, rest upon, or apply laws of nature, natural 5 phenomena, or abstract ideas.” Alice, 573 U.S. at 217 (alteration, internal quotation marks, and 6 citation omitted). Accordingly, courts must “tread carefully in construing this exclusionary 7 principle lest it swallow all of patent law.” Id.

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P2I Ltd. v. Favored Tech USA Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/p2i-ltd-v-favored-tech-usa-corporation-cand-2025.