Plotagraph, Inc. v. Lightricks, Ltd.

CourtDistrict Court, S.D. Texas
DecidedAugust 9, 2022
Docket4:21-cv-03873
StatusUnknown

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

Bluebook
Plotagraph, Inc. v. Lightricks, Ltd., (S.D. Tex. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT August 09, 2022 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

PLOTAGRAPH, INC, TROY PLOTA, § and SASCHA CONNELLY, § § Plaintiffs, § § VS. § CIVIL ACTION NO. H-21-3873 § LIGHTRICKS, LTD., § § Defendant. §

MEMORANDUM AND OPINION

A cell phone owner looking at an image of a waterfall on a cell phone or other electronic device screen is looking at digital pixels. Moving those pixels can animate the image. The static image of a waterfall can become a dynamic image of a flowing rush of water. All or part of an image can be made to move or held still. Animating images by manipulating the pixels on an electronic device is the subject of this patent infringement lawsuit. Troy Plota and Sascha Connelly are the patentees of the “automated pixel shifting within a video file” system claimed in Patent No. 11,182,641 (the ‘641 Patent), and Patent No. 10,621, 469 (the ‘469 Patent), and of the “automated pixel shifting within a digital image” system claimed in Patent No. 11,301,119 (the ‘119 Patent), Patent No. 10,346,017 (the ‘017 Patent), and Patent No. 10,558,342 (the ‘342 Patent). (Docket Entry No. 31 at ¶¶ 3–4, 22, 33, 46, 58, 69). The patents are owned by, or assigned to, Troy Plota, Sascha Connelly, and Plotagraph, Inc. The Plotagraph and Plotagraph Pro computer programs were originally sold in 2016. (Id. at ¶ 7). The Plotagraph App was available in the Apple App Store beginning in 2017. (Id.). The Plotagraph App was a swift success; in 2017, it was the number one app available for download in the Photo and Video category. (Id. at ¶ 8). In 2018, Lightricks Ltd. began selling a similar app on the Apple App Store, first using the name “Pixaloop” and later “Motionleap.” (Id. at ¶ 5). Plotagraph, Plota, and Connelly, (together, Plotagraph), sued Lightricks, alleging that the Pixaloop and Motionleap Apps violated Plotagraph’s patents supporting the Plotagraph App. (Docket Entry No. 31). Lightricks has moved to dismiss for failure to state a claim, based on the

lack of patent eligibility for what it claims is an abstract idea. (Docket Entry No. 37). Plotagraph responded, and Lightricks replied. (Docket Entry Nos. 43, 46). The court heard arguments on the motion to dismiss and received supplemental briefs from the parties. (Docket Entry Nos. 49, 52, 53). Plotagraph requests another hearing to discuss the supplemental briefing, (Docket Entry No. 54), but the earlier hearing covered the issues and no additional hearing is needed. Based on the pleadings, the motion and responses, the arguments of counsel, and the applicable law, the court grants the motion to dismiss. The reasons are set out below. I. Background Digitized photographic images and video files are made up of small pixels. The Plotagraph

App and the related Plotagraph and Plotagraph Pro computer programs enable users to select certain pixels within a photograph or video file and have those pixels shifted and “rendered” in a loop, creating a dynamic image or video made up of the moving pixels. (Docket Entry No. 31 at ¶ 7). The core of the Plotagraph App was technology patented by the ‘017 Patent, the ‘342 Patent, the ‘469 Patent, the ‘641 Patent, and the ‘119 Patent. (Id. at ¶ 2). The ‘017 Patent, entitled “Automated Pixel Shifting Within a Digital Image,” was issued in July 2019. (Id. at ¶ 46). The ‘342 Patent,” entitled “Automated Pixel Shifting Within a Digital Image,” was issued in February 2020. (Id. at ¶ 58). The ‘469 Patent,” entitled “Automated Pixel Shifting Within a Video File,” was issued in April 2020. (Id. at ¶ 69). The ‘641 Patent, entitled “Automated Pixel Shifting within a Video File,” was issued in November 2021. (Id. at ¶ 22). The ‘119 Patent, entitled “Automated Pixel Shifting within a Digital Image,” was issued in April 2022. (Id. at ¶ 33). The patents claim a system that: allow a user to select a set of pixels within the photo or video file which are then caused by the software to be shifted and rendered in a loop, simulating motion. A user can also keep portions of the still photo or video file from moving by using an “anchor” or “mask” tool to create a group of stationary pixels which the user does not want to move.

(Id. at ¶ 7). The patents claim a system that assumes a computer. The patented claims: are directed to particular tools or features which integrate the automatic shifting of pixels into a true practical application. These features include the use of paths or digital links and starting and ending points to provide directions for automatic shifting, non-linear paths, masks which prevent shifting, and anchor points for creation of masks.

(Id. at ¶ 9). Troy Plota and Sascha Connelly are the inventors and original owners of all five patents. (Id. at ¶¶ 3–4). Plota has assigned to Plotagraph his 50% interest in the ‘017 Patent, the ‘342 Patent, and the ‘469 Patent. (Id. at ¶ 3). Plota still has a 50% interest in the ‘641 Patent and the ‘119 Patent. (Id.). Connelly owns 50% of all five patents. (Id. at ¶ 4). In September 2018, Lightricks began offering for sale in the United States its “Pixaloop” App. (Id. at ¶ 5). Through the Pixaloop App, a user can select a set of pixels to be shifted to create the illusion of motion. (Id. at ¶ 10). The user can anchor pixels that he or she does not want to be moved. (Id.). In 2019, Lightricks changed the name to the “Motionleap” App, replacing the “anchor” tool with a brush-eraser tool allowing users to select which pixels to animate and which to hold stationary. (Id. at ¶ 11). Since 2018, Lightricks has sold its apps on the Apple App Store and the Google Play Store, in competition with Plotagraph’s apps. (Id. at ¶ 12). The Lightricks Apps were downloaded 1.2 million times in October 2021. (Id. at ¶ 13). Plotagraph alleges that, by extrapolation, there have been 33,600,000 downloads of the Lightricks Apps. (Id.). Plotagraph notified Lightricks in September 2018 that it believed Lightricks’s Pixaloop

App was covered by Plotagraph’s then-pending ‘342 Patent. (Id. at ¶ 16). Plotagraph notified Lightricks of its alleged infringement of the ‘017, ‘342, and ‘469 Patents by filing this lawsuit in November 2021. (Id. at ¶ 17). In this lawsuit, Plotagraph also alleges that Lightricks made and published several YouTube tutorials to teach the Pixaloop App, and that the tutorials as well as the App infringe the Photagraph patents. The tutorials include “Working from home? Let’s move things around!” published in June 2020 by Motionleap, and “How to Make Photos Move with Pixaloop!,” published in September 2018 by Motionleap. (Id. at ¶ 15). Lightricks asks this court to dismiss because the Plotagraph patents are invalid attempts to patent the abstract idea of animation in the context of computers, without improving how

computers work. Plotagraph argues that the patent claims are directed to digital animation, which is not an abstract idea but rather a “particular manner of shifting pixels within a digital image,” that represent a concrete improvement to how computers function. (Docket Entry No. 52 at 5, 9). Each argument is addressed below under the applicable legal standards. II. The Legal Standards A. A Motion to Dismiss Rule 12(b)(6) allows dismissal if a plaintiff fails “to state a claim upon which relief can be granted.” FED. R. CIV. P. 12(b)(6). Rule 12(b)(6) must be read in conjunction with Rule 8(a), which requires “a short and plain statement of the claim showing that the pleader is entitled to relief.” FED. R. CIV. P. 8(a)(2). “[A] complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544

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