Pixion, Inc. v. Placeware, Inc.

421 F. Supp. 2d 1233, 2005 U.S. Dist. LEXIS 11356, 2005 WL 88968
CourtDistrict Court, N.D. California
DecidedJanuary 12, 2005
DocketC 03-02909 SI
StatusPublished
Cited by3 cases

This text of 421 F. Supp. 2d 1233 (Pixion, Inc. v. Placeware, Inc.) 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
Pixion, Inc. v. Placeware, Inc., 421 F. Supp. 2d 1233, 2005 U.S. Dist. LEXIS 11356, 2005 WL 88968 (N.D. Cal. 2005).

Opinion

*1235 ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT OF NON-INFRINGEMENT OF THE ’313 PATENT AND PARTIALLY GRANTING AND PARTIALLY DENYING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT ON PLAINTIFF’S TRADE SECRET CLAIM

ILLSTON, District Judge.

On November 4, 2004, the Court heard oral argument on defendant’s motion for summary judgment of non-infringement of the ’313 patent and defendant’s motion for summary judgment on plaintiffs trade secrets claim. 1 Having carefully considered the arguments of counsel and the papers submitted, the Court hereby orders as set below.

BACKGROUND

On June 23, 2003, plaintiff Pixion, Inc. sued defendant PlaceWare, Inc. for misappropriation of Pixion’s trade secrets, infringement of Pixion’s patent rights in the ’313 patent, and infringement of Pix-ion’s trademark. Defendant counterclaimed for a declaratory judgment that the ’313 patent is not valid, not enforceable and/or not infringed by PlaceWare, and that Pixion is infringing PlaceWare’s U.S. Patent No. 5,951,694 (“the ’694 patent”).

In April 1997, Pixion and PlaceWare entered into a Non-Disclosure Agreement, under which Pixion shared information about its web conferencing technology. In August 1997, the parties entered into a License & Distribution (L & D) Agreement, under which PlaceWare licensed Pixion’s PictureTalk technology for potential bundling with PlaceWare’s product. The agreement terminated in August 1998, but PlaceWare remained under a contractual obligation not to use Pixion’s technology without its consent. Pixion contends that David Nichols of PlaceWare used Pix-ion’s technology to build a feature called “LiveDemo.” In June 1999, PlaceWare announced a new version of its web conferencing product that included “the breakthrough LiveDemo feature.” Pixion promptly objected to the product as involving a misuse of its confidential information. In 2002, PlaceWare retained an independent firm to re-design the LiveDemo functionality using a “clean room” approach.

The ’313 patent teaches technology that allows real-time web conferencing with multi-speed capabilities. Using this system, “when a web-conference ‘presenter’ wants to share a stream of visual images with an audience of ‘attendees,’ the entire audience can see the images in real-time— even if different attendee computers run at different speeds and have network connections of differing bandwidths.” Compl. at ¶ 2. The ’313 patent teaches a system that is able to compensate for and adapt to differing network and computing speeds and loads, as appropriate. In other words, “if there are both fast and slow computers present, the invention takes this factor into consideration and dynamically compensates to ensure that all computers display as close to the latest information as possible, in as close to real-time as possible, for the given computer attendee.” Id.

This Court held a claim construction hearing on the ’313 patent on June 24, 2004 and on July 28, 2004, it issued a Claim Construction Order for the ’313 patent.

Now before the Court are (1) Place-Ware’s motion for summary judgment of non-infringement of the ’313 patent and (2) *1236 PlaceWare’s motion for summary judgment on Pixion’s trade secret claim.

LEGAL STANDARD

“Summary judgment is appropriate in a patent case, as in other cases, when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Nike Inc. v. Wolverine World Wide, Inc., 43 F.3d 644, 646 (Fed.Cir.1994) (citations omitted). The moving party bears the initial burden of demonstrating the absence of a genuine issue of material fact. See Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party, however, has no burden to negate or disprove matters on which the non-moving party will have the burden of proof at trial. Id. The moving party need only point out to the Court that there is an absence of evidence to support the non-moving party’s case. Id. at 325, 106 S.Ct. 2548.

The burden then shifts to the non-moving party to “designate ‘specific facts showing there is a genuine issue for trial.’” Id. at 324, 106 S.Ct. 2548 (quoting Rule 56(e)). To carry this burden, the non-moving party must “do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). “The mere existence of a scintilla of evidence ... will be insufficient; there must be evidence on which the jury could reasonably find for the [non-moving party].” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

Summary judgment can be used to determine patent infringement or non-infringement, Avia Group Intern., Inc. v. L.A. Gear California, Inc., 853 F.2d 1557, 1560 (Fed.Cir.1988). The moving party bears the burden of proving infringement or non-infringement by a preponderance of the evidence. Mannesmann Demag Corp. v. Engineered Metal Products, Inc., 793 F.2d 1279, 1282 (Fed.Cir.1986). Summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c).

To establish infringement every limitation in a claim must be in the accused product, either exactly or by substantial equivalent. Carroll Touch, Inc., v. Electro Mechanical Systems, 15 F.3d 1573, 1576 (Fed.Cir.1993). A claim is literally infringed if the accused product is exactly the same as each element of the asserted claim. Hi-Life Products, Inc. v. American National Water-Mattress Corp., 842 F.2d 323, 325 (Fed.Cir.1988). Even if a product does not literally infringe it may infringe under the doctrine of equivalents. Warner-Jenkinson Co. v. Hilton Davis Chemical Co., 520 U.S. 17, 21, 117 S.Ct. 1040, 137 L.Ed.2d 146 (1997).

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Bluebook (online)
421 F. Supp. 2d 1233, 2005 U.S. Dist. LEXIS 11356, 2005 WL 88968, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pixion-inc-v-placeware-inc-cand-2005.