Red Rock Analytics, LLC v. Apple Inc.

CourtDistrict Court, W.D. Texas
DecidedDecember 8, 2021
Docket6:21-cv-00346
StatusUnknown

This text of Red Rock Analytics, LLC v. Apple Inc. (Red Rock Analytics, LLC v. Apple Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Red Rock Analytics, LLC v. Apple Inc., (W.D. Tex. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF TEXAS WACO DIVISION

RED ROCK ANALYTICS, LLC, Plaintiff,

v. 6:21-cv-00346-ADA

APPLE INC. and QUALCOMM, INC., Defendants.

MEMORANDUM OPINION AND ORDER DENYING APPLE’S MOTION TO DISMISS FIRST AMENDED COMPLAINT [ECF No. 36] Came on for consideration this date is Apple Inc.’s Motion to Dismiss First Amended Complaint. ECF No. 36 (the “Motion”). Red Rock Analytics, LLC filed an opposition on July 28, 2021, ECF No. 40, to which Apple replied on August 4, 2021, ECF No. 44. After careful consideration of the Motion, the Parties’ briefs, and the applicable law, the Court DENIES Apple’s Motion to Dismiss First Amended Complaint. I. BACKGROUND On April 11, 2019, Red Rock sued Apple for patent infringement in the Eastern District of Texas. Red Rock Analytics, LLC v. Apple Inc., No. 2:19-cv-00117-JRG (E.D. Tex. Apr. 11, 2019) (ECF No. 1 ¶¶ 13–14) (“Red Rock I”). Red Rock accused the iPhone 5, 6, 7, 8, and 10 models, alleging that the Wi-Fi transceivers practiced I-Q calibration functionality claimed in the U.S. Patent No. 7,346,313 (the “’313 patent”). Id. On February 8, 2020, Red Rock I was dismissed with prejudice after the parties settled. See Red Rock I, ECF Nos. 75, 76. On April 8, 2021, Red Rock initiated this Action against Apple. Red Rock asserts 36 claims from the ’313 patent, including each claim asserted in Red Rock I. See ECF No. 1; ECF No. 31 (“FAC”) And, according to Apple, Red Rock is accusing “essentially the same I-Q calibration activity” at issue in Red Rock I. ECF No. 36 at 4. Yet, here, Red Rock is accusing the iPhone 12, and specifically the Qualcomm-manufactured Wi-Fi transceiver and 5G cellular transceiver therein—not the Wi-Fi transceivers of the earlier iPhones accused in Red Rock I. On July 7, 2021, Apple moved to dismiss this Action under the Kessler Doctrine or, in the alternative, to dismiss Red Rock’s claims for induced and willful infringement under Rule

12(b)(6). ECF No. 36. II. LEGAL STANDARD A. Motion to Dismiss for Failure to Plead Rule 12(b)(6) requires that a complaint contain sufficient factual matter, if 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, 570 (2007)). To meet this factual plausibility standard, the plaintiff must plead “factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged,” based on “more than a sheer possibility that a defendant has acted unlawfully.” Id. “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. However, in resolving a motion to dismiss for failure to state a claim, the question is “not whether [the plaintiff]

will ultimately prevail, . . . but whether [the] complaint was sufficient to cross the federal court’s threshold.” Skinner v. Switzer, 562 U.S. 521, 530 (2011). “The court’s task is to determine whether the plaintiff has stated a legally cognizable claim that is plausible, not to evaluate the plaintiff's likelihood of success.” Lone Star Fund V (U.S.), L.P. v. Barclays Bank PLC, 594 F.3d 383, 387 (5th Cir. 2010) (citing Iqbal, 556 U.S. at 678). B. The Kessler Doctrine The Kessler doctrine prevents a patentee from reasserting previously litigated claims or issues against a defendant or its customer following a finding of non-infringement. Kessler v. Eldred, 206 U.S. 285, 289–90 (1907). The purpose of this doctrine is to “[allow] an adjudged non- infringer to avoid repeated harassment for continuing its business as usual post-final judgment in a patent action where circumstances justify that result.” In re PersonalWeb Techs. LLC, 961 F.3d 1365, 1376 (Fed. Cir. 2020) (quoting Brain Life, LLC v. Elekta Inc., 746 F.3d 1045, 1056 (Fed. Cir. 2014)). Thus, a judgment of non-infringement grants “a limited trade right which is ‘the right

to have that which [a court has determined] it lawfully produces freely bought and sold without restraint or interference.’” Brain Life, 746 F.3d at 1057 (quoting MGA, Inc. v. General Motors Corp., 827 F.2d 729, 734 (Fed. Cir. 1987) (alterations original)). A patent infringement claim is precluded under the Kessler doctrine when (1) the defendant is an adjudged non-infringer and (2) “the earlier judgment held that ‘essentially the same’ accused activity did not infringe the patent.” SimpleAir, Inc. v. Google LLC, 884 F.3d 1160, 1170 (Fed. Cir. 2018) (quoting Brain Life, 746 F.3d at 1057–58). It is the defendant’s burden to prove these elements are satisfied. See Tech. Licensing Corp. v. Thomson, Inc., 738 F. Supp. 2d 1096, 1102 (E.D. Cal. 2010); AVM Techs., LLC v. Intel Corp., Civil Action No. 15-33, 2017 U.S. Dist. LEXIS 65692, at *5 (D. Del. Apr. 28, 2017); SKC Kolon PI v. Kaneka Corp., No. CV 16-05948, 2017 U.S. Dist. LEXIS 182994, at *9

(C.D. Cal. Mar. 13, 2017); cf. Innovation Scis., LLC v. HTC Corp., Civil Action No. 4:19-CV- 00752, 2020 U.S. Dist. LEXIS 82079, at *9 (E.D. Tex. May 11, 2020). C. Willful and Indirect Infringement To allege indirect infringement, the plaintiff must plead specific facts sufficient to show that the accused infringer had actual knowledge of the patents-in-suit, or was willfully blind to the existence of the patents-in-suit. Glob.-Tech Appliances, Inc. v. SEB S.A., 563 U.S. 754, 766, 769 (2011) (“[I]nduced infringement under § 271(b) requires knowledge that the induced acts constitute patent infringement” or at least “willful blindness” to the likelihood of infringement.); Commil USA, LLC v. Cisco Sys., Inc., 575 U.S. 632, 639 (2015) (“Like induced infringement, contributory infringement requires knowledge of the patent in suit and knowledge of patent infringement.”). A showing of willful blindness requires that “(1) the defendant must subjectively believe that there is a high probability that a fact exists and (2) the defendant must take deliberate actions to avoid learning of that fact.” Global-Tech, 563 U.S. at 769.

Similarly, to allege willful infringement, the plaintiff must plausibly allege the “subjective willfulness of a patent infringer, intentional or knowing.” Halo Electronics, Inc. v. Pulse Electronics, Inc., 136 S. Ct. 1923, 1933 (2016). This requires a plaintiff to allege facts plausibly showing that the accused infringer: “(1) knew of the patent-in-suit; (2) after acquiring that knowledge, it infringed the patent; and (3) in doing so, it knew, or should have known, that its conduct amounted to infringement of the patent.” Parity Networks, LLC v. Cisco Sys., Inc., No. 6:19-CV-00207-ADA, 2019 WL 3940952, at *3 (W.D. Tex. July 26, 2019). III. ANALYSIS A. The Kessler Doctrine Does Not Preclude This Action 1. Step 1: Apple Is an Adjudged Non-infringer Apple has cleared the Kessler’s first hurdle and primarily relied on In re PersonalWeb Techs. LLC, 961 F.3d 1365 (Fed. Cir. 2020) in doing so. In that case, the Federal Circuit rejected

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