Reefedge Networks, LLC v. Juniper Networks, Inc.

29 F. Supp. 3d 455, 2014 U.S. Dist. LEXIS 37322, 2014 WL 1217263
CourtDistrict Court, D. Delaware
DecidedMarch 21, 2014
DocketC.A. No. 13-412-LPS
StatusPublished
Cited by9 cases

This text of 29 F. Supp. 3d 455 (Reefedge Networks, LLC v. Juniper Networks, 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
Reefedge Networks, LLC v. Juniper Networks, Inc., 29 F. Supp. 3d 455, 2014 U.S. Dist. LEXIS 37322, 2014 WL 1217263 (D. Del. 2014).

Opinion

MEMORANDUM OPINION

STARK, U.S. District Judge:

Presently before the Court is Defendant Juniper Networks, Inc.’s (“Juniper”) Motion to Dismiss Plaintiff ReefEdge Networks, LLC’s (“ReefEdge”) Claims for Willful Infringement and Amended Claims for Indirect Infringement. (D.I.16) The Court held oral argument on the motion on [457]*457December 18, 2013. (D.I.66) (“Tr.”) For the reasons stated below, the Court will grant the motion.

I. BACKGROUND

On March 13, 2013, ReefEdge Networks, LLC (“ReefEdge”) filed its original Complaint against Juniper, asserting claims for direct and indirect infringement of U.S. Patents Nos. 6,633,761 (the “’761 patent”), 6,975,864 (the “’864 patent”), and 7,197,308 (the “’308 patent”). (D.I.l) On May 3, Juniper moved to dismiss Ree-fEdge’s claims for indirect and joint infringement. (D.I.9) On May 20, ReefEdge responded to Juniper’s motion to dismiss by filing its First Amended Complaint (“FAC”). (D.I.12) Although the FAC dropped ReefEdge’s contributory and joint infringement claims, it reasserted Ree-fEdge’s inducement allegations. (Id. at ¶¶ 15, 22, 29) The FAC also added claims for willful infringement. {Id. at ¶¶ 16, 23, 30)1 Juniper now moves to dismiss Ree-fEdge’s claims for willful infringement and amended claims for induced infringement. (D.I.16)

In the FAC, ReefEdge alleges that Juniper had pre-suit knowledge of the patents-in-suit because Juniper’s Deputy General Counsel and Vice President, Intellectual Property, Meredith McKenzie, had knowledge of the patents-in-suit. (D.I. 12 at ¶ 10) According to ReefEdge, Ms. McKenzie is responsible for managing all aspects of intellectual property at Juniper, including licensing, patents, and litigation. (Id.) The FAC alleges that, prior to joining Juniper, Ms. McKenzie was Senior Director, Intellectual Property at Symantec Corporation (“Symantec”). {Id. at ¶ 9)_ According to ReefEdge, while she worked for Symantec, Ms. McKenzie marketed the patents-in-suit to ReefEdge in a process that ultimately led to ReefEdge’s acquisition of the patents-in-suit from Symantec. (Id.) Additionally, ReefEdge alleges that after Ms. McKenzie joined Juniper, representatives of ReefEdge made several attempts to meet with Juniper regarding licensing the patents-in-suit. {Id. at ¶ 16) Based on these allegations, ReefEdge argues that Juniper willfully infringed the patents-in-suit because Ms. McKenzie’s knowledge of the patents-in-suit may be imputed to Juniper. (D.I. 20 at 1) Ree-fEdge also alleges that Juniper induces infringement of the patents-in-suit by advertising and providing technical support services for its allegedly infringing products. (D.I. 12 at ¶¶ 15, 22, 29)

II. LEGAL STANDARDS

Pursuant to Federal Rule of Civil Procedure 8(a)(2), a complaint must contain a “short and plain statement of the claim showing that the pleader is entitled to relief.” Even though a plaintiff need not allege detailed factual information, in order to survive a motion to dismiss for failure to state a claim pursuant to Federal Rule of Civil Procedure 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). A claim is facially plausible when the factual allegations allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. See id. at 663, 129 S.Ct. 1937. At the motion to dismiss stage, the court “must accept as true the factual allegations in the complaint and all reasonable inferences that can be drawn therefrom.” Nami v. Farmer, 82 F.3d 63, 65 (3d Cir.1996). However, the court “need not accept as true threadbare recitals of a cause of action’s elements, sup[458]*458ported by mere conclusory statements.” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937.

III. DISCUSSION

A. Willful Infringement

To prove a cause of action for willful infringement, “a patentee must show by clear and convincing evidence that the infringer acted despite an objectively high likelihood that its actions constituted infringement of a valid patent.” In re Seagate Tech., LLC, 497 F.3d 1360, 1371 (Fed.Cir.2007). Once this 'first prong is shown, “the patentee must also demonstrate that this objectively-defined risk ... was either known or so obvious that it should have been known to the accused infringer.” Id. At the pleadings stage, plaintiffs alleging willful infringement must plead facts giving rise to “at least a showing of objective recklessness of the infringement risk.” Id.; see also St. Clair Intellectual Prop. Consultants, Inc. v. Hewlett-Packard Co., 2012 WL 1134318, at *2-3 (D.Del. Mar. 28, 2012). In addition to pleading knowledge of the patents-in-suit, “[t]he complaint must demonstrate a link between the various allegations of knowledge of the patents-in-suit and the allegations that the risks of infringement were either known or were so obvious that they should have been known.” MONEC Holding AG v. Motorola Mobility, Inc., 897 F.Supp.2d 225, 236 (D.Del.2012) (internal quotation marks omitted).

In its FAC, ReefEdge alleges that “Juniper’s Deputy General Counsel and Vice President, Intellectual Property,” Meredith McKenzie, had knowledge of the patents-in-suit due to her previous employment with Symantec Corporation (“Symantec”). (D.I. 12 at ¶ 10) At the time that Ms. McKenzie worked for Sym-antec, Symantec owned the patents-in-suit. (Id. at ¶¶ 9-10) Juniper alleges that Ms. McKenzie was responsible for marketing the patents-in-suit to ReefEdge. (Id. at ¶ 9) Because Ms. McKenzie is now allegedly responsible for managing all aspects of Juniper’s intellectual property, Ree-fEdge continues, her knowledge may be attributed to Juniper. (Id. at 10-11)

ReefEdge makes no specific allegations linking the knowledge Ms. McKenzie may have acquired from her work at Symantec to her work at Juniper. For instance,' ReefEdge does not allege that Ms. McKenzie performed any analysis of Juniper’s products or patent portfolio or even that Deputy General Counsels generally perform such tasks. The only allegation in ReefEdge’s FAC that touches on Ms. McKenzie’s work states that “[o]n information and belief, Ms. McKenzie is responsible for managing all aspects of intellectual property at Juniper, including licensing.” (Id. at ¶ 10) ReefEdge does not allege that Ms. McKenzie was aware of Juniper’s allegedly infringing-products, which were on the market for years before Ms. McKenzie joined Juniper. (D.I. 17 at 7) Furthermore, the FAC does not “demonstrate a link between the various allegations of knowledge of the patents-in-suit and the allegations that the risks of infringement were either known or were so obvious that they should have been known.” MONEC Holding AG, 897 F.Supp.2d at 236. In the absence of any allegation in the FAC that Ms.

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29 F. Supp. 3d 455, 2014 U.S. Dist. LEXIS 37322, 2014 WL 1217263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reefedge-networks-llc-v-juniper-networks-inc-ded-2014.