Plumtree Software, Inc. v. Datamize, LLC

473 F.3d 1152, 81 U.S.P.Q. 2d (BNA) 1251, 2006 U.S. App. LEXIS 31066, 2006 WL 3703180
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 18, 2006
Docket2006-1017
StatusPublished
Cited by19 cases

This text of 473 F.3d 1152 (Plumtree Software, Inc. v. Datamize, LLC) 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
Plumtree Software, Inc. v. Datamize, LLC, 473 F.3d 1152, 81 U.S.P.Q. 2d (BNA) 1251, 2006 U.S. App. LEXIS 31066, 2006 WL 3703180 (Fed. Cir. 2006).

Opinion

DYK, Circuit Judge.

Plumtree Software, Inc. (“Plumtree”) filed this declaratory judgment action against Datamize, LLC (“Datamize”) in the United States District Court for the Northern District of California. 1 The district court denied Datamize’s motion to dismiss for lack of subject matter jurisdiction and granted summary judgment in favor of Plumtree on the ground that Da-tamize’s patents were invalid under the on sale bar doctrine, 35 U.S.C. § 102(b). Da-tamize now appeals. We sustain the district court’s jurisdictional ruling, but vacate and remand for further proceedings on the merits.

BACKGROUND

I

This case involves two Datamize patents, U.S. Patent Nos. 6,460,040 (“'040 patent”) and 6,658,418 (“'418 patent”). Datamize principal Kevin Burns is the named inventor of the patents, which were continuations of his U.S. Patent No. 6,014,137 (“'137 patent”). The patents are entitled “Authoring System for Computer-based Information Delivery System” and share a common specification.

The patented invention is a computer program that is used to create other computer programs (an “authoring tool”). The invention encompasses both the method of creating the computer program and the software for creating the computer program. The '040 patent contains method claims, and the '418 patent is asserted to contain both method and apparatus claims. The authoring tool may be used to create customized kiosks. As an example, the patents explain the authoring tool might be used to create electronic kiosks used at ski resorts to provide information to customers about ski conditions, local hotels, and restaurants through a touch screen or key pad. The patented invention is not the kiosk itself, but is the software for, and the method of, creating the kiosk. 2

*1156 Plumtree is a computer software company that produces “corporate portal” software. The corporate portal is web-based software that brings together various applications and information into a customized desktop screen that employees of an organization can separately access. Plum-tree primarily markets its corporate portal software to companies that want to organize their corporate intranet sites.

II

This declaratory judgment action brought by Plumtree concerning the '040 and '418 patents is not the first lawsuit between Datamize and Plumtree. On May 17, 2002, Datamize filed an infringement suit against Plumtree in the United States District Court for the District of Montana alleging infringement of the parent '137 patent (“Montana action”). On the same day, Datamize sent a letter to Plumtree stating:

Datamize believes that Plumtree is infringing the '137 Patent by, among other things, providing software enabling the operation of portals and kiosks employing customization and personalization features. We also believe that Plumtree will infringe the claims in the continuation patent application when it issues as a patent. From the prior communications, it does not appear that Plumtree has appreciated the implication of Datamize’s patent rights. Plumtree Software, Inc. v. Datamize, LLC, No. 04-CV-2777, slip op. at 5-6 (N.D.Cal. Sept. 12, 2005) (emphasis added). The underscored language referred to a pending patent application that later issued as the '040 patent. Datamize attached the '040 patent application claims to the letter, and the letter stated that the application claims had been “allowed.” The letter stated further that “[b]ecause a direct assertion of patent infringement could subject Datamize to a declaratory judgment action by Plumtree in an inconvenient forum, [Datamize] has proceeded to preserve its rights by filing the attached Complaint” charging infringement of the '137 patent. Id. at 7. The complaint could not (and did not) include infringement claims with respect to the yet-to-be-issued '040 patent. That patent issued on October 1, 2002.

On November 23, 2002, pursuant to Plumtree’s motion to dismiss, a magistrate judge recommended dismissing the Montana action as to the '137 patent for lack of personal jurisdiction over Plumtree. On December 4, 2002, before the magistrate’s recommendation was adopted by the district court, Plumtree filed a declaratory judgment action in the United States District Court for the Northern District of California seeking a judgment that it did not infringe the '137 patent (“first California action”). Datamize then counterclaimed for infringement. 3 On July 8, 2003, the District of Montana judge adopted the magistrate’s recommendation and dismissed the Montana action for lack of personal jurisdiction.

On September 3, 2003, Datamize filed a third lawsuit alleging infringement of the '040 patent against nine defendants (not including Plumtree) in the United States District Court for the Eastern District of Texas (“Texas action”). After the '418 patent issued on December 2, 2003, Da-tamize moved to add infringement claims under the '418 patent to the Texas action. In briefing the motion to add the '418 patent claims, Datamize argued that, in light of the similarity of the '040 and '418 patents, “it would be highly surprising if *1157 Defendants’ counsel had not specifically considered the possibility that Datamize would add the '418 Patent to this case.” J.A. at 496. An interrogatory was served in the Texas action asking Datamize to list “each product made, used, offered for sale, or sold by ... persons other than the Defendants that Datamize contends incorporates or embodies a claimed invention of the patent(s)-in-suit.” In its response, Da-tamize listed Plumtree’s Corporate Portal and Enterprise Web Suite.

On July 9, 2004, in the first California action, the district court granted Plum-tree’s summary judgment motion and held that the asserted claims of the '137 patent were invalid for indefiniteness under 35 U.S.C. § 112, ¶ 2, because the term “aesthetically pleasing” rendered the claims too subjective. (This court eventually affirmed the grant of summary judgment. Datamize, LLC v. Plumtree Software, Inc., 417 F.3d 1342, 1356 (Fed.Cir.2005)).

On the same day, the district court granted summary judgment in favor of Plumtree on the '137 patent, Plumtree filed the present declaratory judgment action with respect to the '040 and '418 patents (“second California action”). Those patents are similar to the '137 patent but do not include the “aesthetically pleasing” language. On October 15, 2004, Plumtree filed a motion for summary judgment on the ground that the '040 and '418 patents were invalid under the on sale bar because the methods of the patent claims had been on sale or offered for sale before the critical date (one year before the application date). Three days later, Datamize filed a motion to dismiss for lack of subject matter jurisdiction on the theory that Plumtree had not established a “reasonable apprehension” that Datamize would sue it for infringement of the '040 and '418 patents.

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473 F.3d 1152, 81 U.S.P.Q. 2d (BNA) 1251, 2006 U.S. App. LEXIS 31066, 2006 WL 3703180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plumtree-software-inc-v-datamize-llc-cafc-2006.