Redwood Technologies, LLC v. Netgear, Inc.

CourtDistrict Court, D. Delaware
DecidedJune 27, 2024
Docket1:22-cv-01271
StatusUnknown

This text of Redwood Technologies, LLC v. Netgear, Inc. (Redwood Technologies, LLC v. Netgear, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Redwood Technologies, LLC v. Netgear, Inc., (D. Del. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

REDWOOD TECHNOLOGIES, LLC, . Plaintiff, v. C.A. No. 22-1271-GBW NETGEAR, INC., Defendant.

Ronald P. Golden III, Stephen B. Brauerman, BAYARD, P.A., Wilmington, DE; Jon Rastegar, Patrick J. Conroy, T. William Kennedy Jr., NELSON BUMGARDNER CONROY PC, Dallas, TX; John P. Murphy, NELSON BUMGARDNER CONROY PC, Fort Worth, TX Counsel for Plaintiff Steven J. Balick, Andrew C. Mayo, ASHBY & GEDDES, Wilmington, DE; Christopher Kao, Brock S. Weber, PILLSBURY WINTHROP SHAW PITTMAN LLP, San Fransisco CA Counsel for Defendant

MEMORANDUM OPINION June 27, 2024 Wilmington, Delaware

ee Wn. "GREGORY B. WILLIAMS U.S. DISTRICT JUDGE Pending before the Court is Defendant Netgear, Inc.’s (“Netgear”) Partial Motion to Dismiss Plaintiff Redwood Technologies, LLC’s (“Redwood”) First Amended Complaint (the “Complaint”). D.I. 17. For the reasons set forth below, the Court grants-in-part and denies-in- part Netgear’s motion. BACKGROUND Redwood filed this action against Netgear, and alleges that Netgear infringes the Asserted _ Patents.! DI 14. In response, Netgear filed a partial motion to dismiss, and argues that four of the five Asserted Patents (namely, the °457, °140, ’671, and °536 patents (collectively, the “Challenged Patents”)) are patent-ineligible pursuant to 35 U.S.C. § 101. D.I. 17.

Netgear argues that the Challenged Patents are directed to the abstract idea of “manipulating and transmitting data signals.” D.I. 18 at 1. Redwood disagrees, and argues that the Challenged Patents are directed to specific technological improvements in wireless communication systems. D.I. 21 at 1. The Challenged Patents generally relate to: transmission apparatuses suited for certain reception environments (’457 patent), a structured data format that avoids interference (’140 patent), wireless communication systems that send and receive timing information to effectively use bandwidth (°671 patent), and wireless communication systems that use timing information to evade mutual interference among communication stations within a mesh network (’536 patent).

U.S. Patent Nos. 7,359,457 (the “457 patent”), 7,917,102 (the “’ 102 patent”), 7,983,140 (the “’140 patent”), 8,111,671 (the “’671 patent”), and 9,462,536 (the “’536 patent”).

Il. LEGAL STANDARDS A. Motion to Dismiss To state a claim on which relief can be granted, a complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief... .” Fed. R. Civ. P. 8(a)(2). Such a claim must plausibly suggest “facts sufficient to ‘draw the reasonable inference that the defendant is liable for the misconduct alleged.’” Doe v. Princeton Univ., 30 F.4th 335, 342 (3d Cir. 2022) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)) (citing Bell Atl. Corp. v. Twombly, 550 US. 544, 557 (2007)). “A claim is facially plausible ‘when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.’” Klotz v. Celentano Stadtmauer & Walentowicz LLP, 991 F.3d 458, 462 (3d Cir. 2021) (quoting Iqbal, 556 U.S. at 678). But the Court will “‘disregard legal conclusions and recitals of the elements of a cause of action supported by mere conclusory statements.’” Princeton Univ., 30 F.4th at 342 (quoting Davis v. Wells Fargo, 824 F.3d 333, 341 (3d Cir. 2016)). Under Rule 12(b)(6), the Court must accept as true all factual allegations in the Complaint and view those facts in the light most favorable to the plaintiff. See Fed. Trade Comm’n y. AbbVie Inc, 976 F.3d 327, 351 (3d Cir. 2020). B. Patent Eligible Subject Matter Patentability under 35 U.S.C. § 101 is a threshold legal issue. Bilski v. Kappos, 561 U.S. 593, 602 (2010). A Section 101 inquiry is properly raised at the pleading stage if it is apparent from the face of the patent that the asserted claims are not directed to eligible subject matter. Cleveland Clinic Found. v. True Health Diagnostics LLC, 859 F.3d 1352, 1360 (Fed. Cir. 2017), cert. denied, 138 S. Ct. 2621 (2018); see also, e.g., SAP Am., Inc. v. InvestPic, LLC, 898 F.3d 1161, 1166 (Fed. Cir. 2018) (stating that patent eligibility “may be, and frequently has been, resolved on a Rule 12(b)(6) or (c) motion”). This is, however, appropriate “only when there are

no factual allegations that, taken as true, prevent resolving the eligibility question as a matter of law.” Aatrix Software, Inc. v. Green Shades Software, Inc., 882 F.3d 1121, 1128 (Fed. Cir. 2018).

Section 101 of the Patent Act defines patent-eligible subject matter. It states, “[w]hoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.” 35 U.S.C. § 101. The Supreme Court has held that there are exceptions to § 101. “Laws‘of nature, natural phenomena, and abstract ideas are not patentable.” Alice Corp. Pty. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). “[I]n applying the § 101 exception, we must distinguish between patents that claim the ‘building blocks’ of human ingenuity and those that integrate the building blocks into something more[] thereby ‘transforming’ them into a patent-eligible invention. The former ‘would risk disproportionately tying up the use of the underlying’ ideas, and are therefore ineligible for patent protection. The latter pose no comparable risk of pre-emption, and therefore remain eligible for the monopoly granted under our patent laws.” Id. at 217 (cleaned up). The Supreme Court’s Alice decision established a two-step framework for determining patent-eligibility under § 101. In the first step, the court must determine whether the claims at issue are directed to a patent ineligible concept. Alice, 573 U.S. at 217. In other words, are the claims directed to a law of nature, natural phenomenon, or abstract idea? Jd. If the answer to the question is “no,” then the patent is not invalid for teaching ineligible subject matter under § 101. If the answer to the question is “yes,” then the court proceeds to step two, where it considers “the elements of each claim both individually and as an ordered combination” to determine if there is an “inventive concept—i.e., an element or combination of elements that is sufficient to ensure

that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.” Jd. at 217-18 (alteration in original).

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