R & L Carriers, Inc. v. Affiliated Computer Services, Inc.

695 F. Supp. 2d 680, 2010 U.S. Dist. LEXIS 16110
CourtDistrict Court, S.D. Ohio
DecidedFebruary 23, 2010
DocketMDL Docket No. 1:09-md-2050; Case Nos. 1:09-cv-818, 2:08-cv-862 (D.Utah) L:09-cv-530, 1:09-cv-190, 1:09cv-532, 1:09-cv-179, 09-cv-144 (D.Minn.) 1:09-cv-177, 1:09-cv-178, 1:09-cv-445
StatusPublished
Cited by1 cases

This text of 695 F. Supp. 2d 680 (R & L Carriers, Inc. v. Affiliated Computer Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R & L Carriers, Inc. v. Affiliated Computer Services, Inc., 695 F. Supp. 2d 680, 2010 U.S. Dist. LEXIS 16110 (S.D. Ohio 2010).

Opinion

ORDER

SANDRA S. BECKWITH, Senior District Judge.

The above listed Defendants have moved to dismiss, or for judgment on the plead[682]*682ings on R & L’s claims for patent infringement against these Defendants. Qualcomm filed its motion on December 1, 2009 (Doc. 68), and the other nine Defendants filed a joint motion on December 30. (Doc. 87) R & L filed a joint response in opposition to all of these motions. (Doc. 101) The Court had the benefit of extensive oral argument presented on February 2, 2010, and has considered the motions and exhibits provided by all parties.

The Complaints. R & L filed complaints against eight of the Defendants (Affiliated Computer Services, EBE Technologies, Enterprise Information Solutions, Intermee Technologies, Microdea, Pegasus Transtech, Profit Tools, and Qualcomm). DriverTech and PeopleNet initiated actions against R & L in Utah and Minnesota, respectively, seeking a judgment that R & L’s '078 patent is invalid. R & L filed counterclaims for infringement in those two actions.

R & L’s '078 patent in issue has one independent claim:

1. A method for transferring shipping documentation data for a package from a transporting vehicle to a remote processing center:

placing a package on the transporting vehicle;
using a portable document scanner to scan an image of the documentation data for the package, said image including shipping details of the package;
providing a portable image processor capable of wirelessly transferring the image from the transporting vehicle;
wirelessly sending the image to a remote processing center;
receiving the image at said remote processing center; and
prior to the package being removed from the transporting vehicle, utilizing said documentation data at said remote processing center to prepare a loading manifest which includes said package for further transport of the package on another transporting vehicle.

Generally, R & L’s complaint or counterclaim against each of the moving Defendants describes certain products or services Defendants offer, descriptions largely taken from Defendants’ websites, trade publications, and other public information. For example, the complaint against Affiliated Computer Services alleges that ACS offers the TripPak SERVICES product line (which includes TripPak Mobile Scanning, both separately and bundled as part of the TripPak Capture Anywhere product and service) “to trucking customers to scan their paperwork from ‘virtually anywhere, including: in-cab scanning ...’”. R & L cites an ACS press release touting ACS’ partnership with PeopleNet Communications “to provide new mobile in-cab scanning solutions for fleets and drivers on the PeopleNet BLU Platform.” (ACS Complaint ¶ 12)

Another example is R & L’s complaint against Pegasus TransTech, alleging that Pegasus “... markets a software application known as TRANSFLO Now! ... Pegasus TransTech advertises that this software enables drivers to scan delivery documents from inside their cab and to send those documents directly to the corporate office within minutes.” (Pegasus Complaint ¶ 12) The same type of product descriptions, which vary in the level of detail about the accused products, are alleged in each of the complaints at issue. (Exhibit A to Doc. 101, R & L’s opposition brief, outlines the product allegations against each of the moving Defendants.)

Following several paragraphs of these product descriptions (and, in some cases, allegations about R & L’s cease and desist letters to some Defendants), R & L alleges upon information and belief that each Defendant “knowingly sells and offers to sell” its products to customers, who use them in [683]*683a manner that infringes on R & L’s '078 method patent. R & L alleges this conduct is contributory infringement in violation of 35 U.S.C. § 271(c). (See, e.g., ACS Complaint at ¶ 19.) R & L also alleges, upon information and belief, that each Defendant is knowingly encouraging and intending their customers to use Defendants’ products in a manner that infringes on R & L’s patent, and are therefore actively inducing infringement in violation of 35 U.S.C. § 271(b).

Overview of the Pending Motions. All of the moving Defendants seek dismissal of R & L’s infringement claims under Rule 12(b)(6) or Rule 12(c). All Defendants contend that liability for indirect infringement cannot be imposed unless some entity is directly infringing the patent, a proposition which R & L does not dispute. Defendants argue that R & L’s complaints and counterclaims (1) do not allege direct infringement against the Defendants and fail to plausibly allege that any entity is directly infringing, and (2) fail to adequately allege the required elements of either active inducement to infringe or contributory infringement, under 35 U.S.C. §§ 271(b) and (c). Defendants also argue that the method of the '078 patent requires performance by more than one entity, and that R & L has not adequately pled joint infringement.

R & L readily admits that it is not alleging that any of the moving Defendants directly infringe the patent, and for that reason contends that Defendants’ arguments concerning joint infringement are irrelevant. R & L disputes the assertion that the patent requires more than one entity to perform all steps of the patent; R & L performs all of those steps itself and believes that Defendants’ trucking customers also perform each and every step. For that reason, R & L’s complaints do not allege a “mastermind” or any degree of control exercised over others by these Defendants. R & L argues that each of the Defendants have sold, or offered to sell, the accused products and services that allow others to directly infringe R & L’s patent. Those others, R & L believes, are Defendants’ trucking company customers, most of whom are unknown to R & L at this point. R & L contends that its allegations of inducement to infringe and contributory infringement are sufficient to withstand challenge under Rule 12, notwithstanding R & L’s present lack of knowledge of the actual identities of the direct infringers for most of the moving Defendants.

R & L notes that it has filed complaints against two alleged direct infringers, Interstate Distributor, a customer of Driver-Tech, and Berry & Smith Trucking, which is allegedly using PeopleNet and Microdea products to directly infringe the patents.

Standard of Review.

A motion for judgment on the pleadings pursuant to Rule 12(c) is analyzed under the same standards applicable to motions under Rule 12(b)(6). For purposes of these motions, the Court accepts the well-pleaded factual allegations of the complaint. A claim will survive if those allegations are “... enough to raise a right to relief above the speculative level on the assumption that all of the complaint’s allegations are true.” Jones v. City of Cincinnati,

Related

In Re Bill of Lading Transmiss. & Processing Sys.
695 F. Supp. 2d 680 (S.D. Ohio, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
695 F. Supp. 2d 680, 2010 U.S. Dist. LEXIS 16110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-l-carriers-inc-v-affiliated-computer-services-inc-ohsd-2010.