PayRange, Inc. v. Kiosoft Technologies, LLC

CourtDistrict Court, S.D. Florida
DecidedMarch 18, 2022
Docket1:20-cv-24342
StatusUnknown

This text of PayRange, Inc. v. Kiosoft Technologies, LLC (PayRange, Inc. v. Kiosoft Technologies, LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PayRange, Inc. v. Kiosoft Technologies, LLC, (S.D. Fla. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA MIAMI DIVISION

CASE NO. 20-CV-24342-SCOLA/GOODMAN

PAYRANGE, INC.,

Plaintiff,

v.

KIOSOFT TECHNOLOGIES, et al.,

Defendants. _________________________________________________/

ORDER GRANTING DEFENDANTS’ RENEWED MOTION TO STAY PENDING RESOLUTION OF POST GRANT REVIEW PETITIONS BY THE PATENT AND APPEAL BOARD OF TWO OF THE THREE PATENTS AT ISSUE

Defendants in this patent infringement lawsuit seek a stay until the Patent Trial and Appeal Board (the “PTAB”) issues its decision on Post Grant Review (“PGR”) Petitions for two of the three patents at issue in this case. The trial is currently scheduled to begin at the earliest after the PTAB final decision concerning the alleged invalidity of all of the claims of the ‘833 Patent and weeks before the PTAB decision addressing the alleged invalidity of all the claims of the ‘614 Patent. Plaintiff did not seek a temporary restraining order or a preliminary injunction. No depositions of parties or experts have yet occurred and no hearing on claim construction has been scheduled. The Court will undoubtedly benefit from the PTAB’s interpretation of the two patents’ respective claims, and the PTAB decisions will likely narrow the issues before

the Court. Therefore, using the Court’s broad discretion over the management of pretrial activities and its broad authority to grant a stay, the Undersigned grants the motion. The Undersigned will provide a more-detailed outline of the facts and the

applicable law below. Factual & Procedural Background Plaintiff PayRange, Inc. filed its Complaint for Patent Infringement against

Defendants KioSoft Technologies, LLC and Techtrex, Inc., alleging that Defendants disregarded PayRange’s patent rights (for mobile payment systems for non-networked unattended retail machines) by trying to poach PayRange’s customers with a copycat product and by soliciting new business with copycat products (e.g., mobile apps).

PayRange’s Amended Complaint [ECF No. 17] alleges that Defendants have been infringing on three patents – the so-called ‘833 Patent, the ‘608 Patent, and the ‘614 Patent. PayRange’s Amended Complaint alleges three counts: one for each of the three patents.

On April 21, 2021, KioSoft filed a PGR Petition before the PTAB relating to U.S. Patent No. 10,719,833 (the “’833 Patent”). PGR2021-00077, Paper 1. On May 27, 2021, KioSoft filed a PGR Petition before the PTAB relating to U.S. Patent No. 10,891,608 (the “’608 Patent”). PGR2021-00084, Paper 1. On June 10, 2021, KioSoft filed a PGR Petition before the PTAB relating to U.S. Patent No. 10,891,614 (the “’614 Patent”). PGR2021- 00093, Paper 1.1.

The PGR Petitions seek to invalidate each of the three patents at issue in this action: the ’833 Patent; the ’608 Patent; and the ’614 Patent. According to Defendants, the claims of the ’833 Patent assert an abstract idea, a fact which renders the claims of the ’833 Patent

patent-ineligible. In addition, they argue that certain prior art renders the claims of the ’833 Patent obvious and therefore invalid. Defendants further say that the claims of the ’608 Patent are invalid under patent law because they lack a sufficient written description,

lack definiteness, and fail to further limit the claims from which they depend, among other deficiencies. Defendants take the position that the claims of the ’614 Patent assert an abstract idea, a fact which renders the claims of the ’614 Patent patent-ineligible. They also

contend that the claims of the ’614 Patent are not eligible under patent law because they fail to meet the written description requirement, are indefinite, and would have been obvious in the view of prior art. Defendants represent that if the PTAB finds that any one

of these three patents is invalid, then that decision would render a substantial and substantive part of this case moot. See Seismograph Serv. Corp. v. Offshore Raydist, Inc., 263 F.2d 5, 22 (5th Cir. 1958) (denying appeal on basis that when a patent is invalid, questions concerning the operation of the patent are moot). On October 28, 2021, the PTAB instituted a post-grant review of all challenged claims based upon all grounds raised in the Petition challenging the ’833 Patent.

PGR2021-00077, Paper 8 at 2 (ECF No. 68-1). On December 16, 2021, the PTAB denied institution of a post-grant review of the ’608 Patent. PGR2021-00084, Paper 12. On December 17, 2021, the PTAB instituted a post-grant review of all challenged claims based

upon all grounds raised in the Petition challenging the ’614 Patent. PGR2021-00093, Paper 12 at 2 (ECF No. 86-1). Therefore, the current procedural posture is that two of the three patents at issue

in this infringement lawsuit are currently being evaluated by the PTAB for invalidity. Defendants filed a renewed motion to stay [ECF No. 109], which United States District Judge Robert N. Scola referred [ECF No. 113] to me. Judge Scola’s referral Order expressly mentions 28 U.S.C. § 636(b)(1)(A) and Rule 1(c) of the Local Magistrate Judge

Rules. Both the statute and the rule concern non-dispositive motions, which means Judge Scola’s Order requests the Undersigned to issue an Order, not a Report and Recommendations.1

1 See, e.g., Thompson v. Poplin, No. 1:18-CV-1846 , 2018 WL 6804771, at *1 (M.D. Pa. Dec. 27, 2018) (noting that “it is well-settled that: Motions to stay, … are non-dispositive and emphasizing that magistrate judges “are empowered to rule upon such matters”); Delta Fungible Ammunition, LLC v. Sinterfire, No. 06-1477, 2008 WL 4540394, at *1 n.1 (W.D. Pa. Oct. 7, 2008) (“[A] request for a stay of proceedings is a non-dispositive matter, subject to adjudication by a federal magistrate judge.”); see also Securities & Exchange Comm'n v. Kornman, No. 3:04CV1803L, 2006 WL 148733, at *2 (N.D. Tex. Jan. 18, 2006) (expedited application for stay of proceedings considered non-dispositive motion); Livingston v. Metro. Life Ins. Co., No. 7:99CV0231 R, 2000 WL 422242, at *4–5 (N.D. Tex. Mar. 6, 2000) Plaintiff filed a Response and Defendants filed a Reply [ECF Nos. 116; 124], and the Undersigned held a one-hour hearing on March 15, 2022.

Applicable Legal Standards and Analysis District courts are given “broad discretion over the management of pretrial activities, including discovery and scheduling.” Johnson v. Bd. of Regents of Univ. of Georgia,

263 F.3d 1234, 1269 (11th Cir. 2001). This Court has “broad authority to grant a stay.” See In re Application of Alves Braga, 789 F. Supp. 2d 1294, 1307 (S.D. Fla. 2011). When PTAB review is sought, “the decision to stay related civil patent

infringement litigation is within the sound discretion of the district court.” Lighting Sci. Grp. Corp. v. Nicor, Inc., No. 616CV1087ORL37GJK, 2017 WL 3706697, at *2 (M.D. Fla. May 9, 2017). Review of a patent by the PTO can “eliminate trial of invalidity

issues when a claim is canceled or, otherwise, to facilitate trial of remaining issues . . . .” Roblor Mktg. Grp., Inc. v. GPS Indus., Inc., 633 F. Supp. 2d 1341, 1346 (S.D. Fla. 2008) (Torres, Mag. J.). “Even if only some of the claims are canceled [by the PTAB], those

claims will not need to be litigated in this action, which will save the parties from

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