PowerOasis v. T-Mobile

2007 DNH 042
District Court, D. New Hampshire·Decided March 30, 2007·No. CV-05-42-PB·Published

Opinion

PowerOasis v . T-Mobile CV-05-42-PB 03/30/07 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW HAMPSHIRE

PowerOasis, Inc. and PowerOasis Networks, LLC

v. Case N o . 05-cv-42-PB Opinion N o . 2007 DNH 042 T-Mobile USA, Inc.

MEMORANDUM AND ORDER

PowerOasis1 has several patents for a “Power and Telecommunications Access Vending Machine.” It has sued T-Mobile USA, Inc. for patent infringement, claiming that T-Mobile’s wireless “HotSpot Network” infringes several claims in two of the patents.

T-Mobile has responded with a motion for summary judgment arguing that the claims in suit are invalid. Because I determine that the claims PowerOasis relies on were anticipated by a wireless data network operated by T-Mobile’s predecessor, I grant T-Mobile’s motion for summary judgment.

1 PowerOasis, Inc. licenses the patents in suit from PowerOasis Networks, LLC. Both companies have sued T-Mobile. I refer to plaintiffs collectively as “PowerOasis.”

I . BACKGROUND

A. The Patents In Suit The patents in suit are U.S. Patents Nos. 6,466,658 (“ ‘658 patent”) and 6,721,400 (“ ‘400 patent”). They disclose inventions designed to support “the operation of computers and other electrical and electronic devices while [their owners are] traveling away from home.” ‘400 patent col. 1 , l l . 22-24. 2 PowerOasis refers to its inventions as “vending machine[s]

for dispensing telecommunications access.” Id., Abstract. The “vending machine[s]” provide electrical power and/or a telecommunications channel access (such as a high-speed Internet connection) to a customer after the customer supplies payment information or user identification. Id. col. 2 , ll.43-67. The “vending machine[s']” central features include “a control unit,” which receives payment information and controls access to the electrical power or telecommunications channel, “a customer interface,” with which customers can monitor the “vending machine,” and a “payment mechanism.” Id. col. 1 6 , ll.5-25.

2 I cite to the ‘400 patent where the ‘400 and ‘658 patents do not differ in substance.

B. The Claims The disputed patents are quite similar. Both consist of a single independent claim (claim 1 ) and 48 dependent claims. PowerOasis bases its infringement claims on dependent claims 1 5 , 1 8 , 3 1 , 3 5 , 3 8 , 40 and 4 9 . The independent claim and the disputed dependent claims are reproduced below.

What is claimed i s :

1 . A vending machine for vending telecommunications channel access to a customer, said vending machine comprising:

a payment mechanism for obtaining information from the customer to initiate a vending transaction;

a customer interface for indicating the status of said vending machine;

an electronic circuit for determining when the vending transaction is completed;

a telecommunications channel access circuit adapted to be connected to at least one external telecommunications channel for enabling access to the at least one external telecommunications channel at the beginning of a vending transaction and disabling access at the end of the vending transaction;

a telecommunications channel access connector connected to said telecommunications channel access circuit for enabling connection to an external telecommunications device of the

customer; and

a control unit having a device for receiving payment information from the customer and for controlling said electronic circuit and said telecommunications channel access circuit.

1 5 . A vending machine as claimed in claim 1 , wherein said customer interface comprises a mechanism that interfaces with software supplied by the customer.

1 8 . A vending machine as claimed in claim 1 , wherein said telecommunications access channel # 1 connector comprises a high bandwidth channel connector.

3 1 . A vending machine as claimed in claim 1 , wherein said telecommunications channel access circuit is adapted to be connected to a direct internet connection via an Internet service provider selected by the vending machine.

3 5 . A vending machine as claimed in claim 1 , wherein said telecommunications channel access connector comprises a transceiver to connect wirelessly to an external communications device of the customer.

38. A vending machine as claimed in claim 1 ,

wherein said control unit is located remote from said vending machine.

....

4 0 . A vending machine as claimed in claim 1 , wherein said control unit further comprises circuitry for controlling a plurality of vending machines.

....

4 9 . A vending machine as claimed in claim 1 , wherein said payment mechanism comprises a mechanism that interfaces with software resident on equipment of the customer.

C. Prosecution History The ‘658 and ‘400 patents are links in a chain of continuation and continuation-in-part (“CIP”) applications that began with the patentees’ first application in 1997. The following describes this prosecution history.

On February 6, 1997, the patentees filed Application N o .

08/796,562 (“Original Application”). The Patent and Trademark Office (PTO) examiner rejected one claim and allowed the remainder of the claims, which became U.S. Patent N o . 5,812,643 (“ ‘643 patent”). ‘643 patent Notice of Allowability at 1 . As to the allowed claims, the examiner noted that “none of the art of record suggest nor teach the system and method of vending

telecommunications channel access and power to a customer having the physical combination of elements and steps as set forth [in the application].” Id. at 3 .

On September 1 8 , 1998, the patentees filed Application N o .

09/156,487 (“1998 Application”), which was a continuation of the Original Application. They amended the application on December 1 , 1999, see 1999 Amendment, and subsequently abandoned i t .

On June 1 5 , 2000, the patentees filed Application N o .

09/594,028 (“CIP Application”), which was a continuation-in-part of the 1998 Application. It became U.S. Patent N o . 6,314,169 (“‘169 patent”). The CIP Application added substantial new matter to the previous applications. This new matter included the substitution of the term “customer interface” for the claim term “display” in claim 1 and the addition of several independent claims disclosing a “vending machine” with component parts “located remote from said vending machine.” The CIP Application also made changes to the specification. The relevant new specification language appears in boldface in the passages below:

This invention provides access to one or more utilities after the customer provides payment in electronic form (e.g. credit card, debit

card, smart card, or other forms of electronic or magnetic currency devices) or optionally, currency. Alternatively, no physical payment method is required, and payment is carried out through software that is present in the user's laptop or other device. In still another option, payment is not made during the transaction, and the user is identified through some type of authentication. These can include RF ID cards, hotel keys, ID cards, software or anatomical characteristics such as fingerprint, voiceprint or retinal pattern identification. ‘400 patent col. 2 , l l . 50-61; see also id. col. 1 0 , l l . 59-65.

Alternatively, no payment mechanism is required, and the vending transaction starts when a customer is identified. Once identified, the user can be billed at a later date. Or, the identification is used as additional security for use in conjunction with electronic or magnetic payment cards or software e-money. Id. col. 6,ll. 9-14; see also id. col. 1 0 , l l . 5-7.

The microprocessor [that controls the vending process] also communicates with the customer via a user interface to provide details on the progress of the transaction. The user interface is not particularly limited and need not even include a visual display on the vending machine. Id. col. 3 , l l . 5-9.

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