Regents of the University of Minnesota v. LSI Corporation

CourtDistrict Court, N.D. California
DecidedAugust 25, 2023
Docket5:18-cv-00821
StatusUnknown

This text of Regents of the University of Minnesota v. LSI Corporation (Regents of the University of Minnesota v. LSI Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regents of the University of Minnesota v. LSI Corporation, (N.D. Cal. 2023).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 REGENTS OF THE UNIVERSITY OF Case No. 5:18-cv-00821-EJD MINNESOTA, 9 ORDER DENYING MOTION FOR Plaintiff, JUDGMENT ON THE PLEADINGS 10 THAT THE ASSERTED CLAIMS ARE v. PATENT INELEGIBLE UNDER 35 11 U.S.C. § 101 LSI CORPORATION, et al., 12 Defendants. Re: ECF No. 190 13 14 Before the Court is the motion for judgment on the pleadings filed by Defendants LSI 15 Corporation and Avago Technologies U.S. Inc. (collectively, “LSI”). They seek a finding that the 16 patent claims asserted in this matter are unpatentable under 35 U.S.C. § 101. After LSI’s motion 17 was fully briefed, the Court stayed this matter pending inter partes review (“IPR”). ECF No. 211. 18 Upon conclusion of the IPR proceedings, the parties filed supplemental briefs addressing the effect 19 of those proceedings on LSI’s motion. Having considered the parties’ filings, the Court finds 20 LSI’s motion suitable for decision without oral argument under Civil Local Rule 7-1(b). For the 21 reasons that follow, the Court DENIES the motion. 22 I. BACKGROUND 23 A. Factual Background 24 Plaintiff Regents of the University of Minnesota (“UMN”) is a public university that 25 supports and facilitates the research of its professors and students in a wide array of fields. First 26 Am. Compl. (“FAC”) ¶¶ 4–6, ECF No. 40. To fund those efforts, UMN sometimes patents and 27 commercializes the inventions created by its researchers. Id. ¶ 8. 1 On January 12, 1999, the U.S. Patent and Trademark Office issued Patent No. 5,859,601 2 (the “ ’601 Patent”), titled “Method and Apparatus for Implementing Maximum Transition Run 3 Codes.” Id. ¶ 46. The ’601 Patent was invented by Dr. Jaekyun Moon, then a professor at UMN, 4 and Dr. Barrett J. Brickner, then one of Dr. Moon’s graduate students. Id. ¶¶ 48, 53. The two 5 inventors assigned the ’601 Patent to UMN. Id. ¶ 73. 6 UMN alleges that the ’601 Patent generally relates to a coding scheme for hard disk drives 7 (“HDDs”) known as a Maximum Transition Run (“MTR”) code. Id. ¶ 47. As UMN explains, 8 HDDs store digital information by magnetizing regions of a rotating disk. Id. ¶ 32–33. To read 9 back data stored on the disk, a read head senses the magnetic fields from the various regions on 10 the disk and converts that information into an analog signal. Id. ¶ 39. A sequence detector then 11 interprets that signal, translating it into binary data consisting of 1s and 0s. Id. ¶ 40. However, 12 errors can occur during this process due to the presence of noise in the analog signal, including 13 noise generated by the presence of “transitions” that occur when the magnetic polarization 14 changes as the read head moves from one region of the disk to the next. Id. ¶¶ 38, 43–44. The 15 problem of noise from transitions is amplified as the data capacity of an HDD increases: increased 16 data capacity leads to an increased density of transitions, and that, in turn, leads to increased noise. 17 Id. ¶ 45. According to UMN, the ’601 Patent addresses the problem of noise by eliminating long 18 runs of consecutive transitions with an MTR code, thereby reducing the error rate. Id. ¶ 70. 19 B. Procedural History 20 UMN initially filed this action in the District of Minnesota on August 25, 2016. ECF No. 21 1. The case was subsequently transferred before this Court on February 8, 2018, ECF No. 145, 22 and LSI filed the instant motion approximately one month later. ECF No. 190 (“Mot.”). The 23 parties finished briefing the motion on April 27, 2018. ECF No. 201 (“Opp’n”); ECF No. 210 24 (“Reply”). However, the parties also simultaneously briefed LSI’s motion for stay pending IPR, 25 and on May 11, 2018, the Court granted the motion to stay without deciding the motion for 26 judgment on the pleadings. ECF No. 211. 27 After protracted litigation that involved two separate appeals to the Federal Circuit, the 1 IPR proceedings concluded on August 11, 2022, when the Federal Circuit affirmed the decision of 2 the Patent Trial and Appeal Board (“PTAB”) finding claim 13 of the ’601 Patent to be 3 unpatentable while concluding that claims 14 and 17 of the ’601 Patent were not shown to be 4 unpatentable. LSI Corp. v. Regents of the Univ. of Minn., 43 F.4th 1349 (Fed. Cir. 2022). Shortly 5 thereafter, on October 7, 2022, the Court lifted its IPR stay upon stipulation of the parties. ECF 6 No. 218. The parties then filed supplemental briefs addressing the effect of the IPR proceedings 7 on LSI’s § 101 motion. ECF No. 250 (“LSI Suppl. Br.”); ECF No. 252 (“UMN Suppl. Br.”). 8 II. LEGAL STANDARD 9 A. Federal Rule of Procedure 12(c) 10 A party may move for judgment on the pleadings under Rule 12(c) to challenge the legal 11 sufficiency of the opposing party’s pleadings. Samsung Elecs. Co. v. Blaze Mobile, Inc., __ F. 12 Supp. 3d __, 2023 WL 3510380, at *2 (N.D. Cal. May 16, 2023) (citation omitted). Such motions 13 are “functionally identical” to Rule 12(b)(6) motions, and courts accordingly apply the same 14 standard for both. Gregg v. Haw., Dep’t of Pub. Safety, 870 F.3d 883, 887 (9th Cir. 2017) 15 (quoting Cafasso v. Gen. Dynamics C4 Sys., Inc. 637 F.3d 1047, 1054 n.4 (9th Cir. 2011)). 16 Consequently, courts evaluating a Rule 12(c) motion must “accept factual allegations in the 17 complaint as true and construe the pleadings in the light most favorable to the nonmoving party.” 18 Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). Courts are 19 also limited to materials in the pleadings, except that courts may consider materials that are subject 20 to judicial notice or incorporation by reference. Heliotrope Gen., Inc. v. Ford Motor Co., 189 21 F.3d 971, 981 n.18 (9th Cir. 1999); Khoja v. Orexigen Therapeutics, 899 F.3d 988, 998 (9th Cir. 22 2018). Judgment on the pleadings is appropriate if, applying the standards articulated above, the 23 moving party is entitled to judgment as a matter of law. Hal Roach Studios, Inc. v. Richard Feiner 24 & Co., Inc., 896 F.2d 1542, 1550 (9th Cir. 1989). 25 B. 35 U.S.C. § 101 26 Section 101 of the Patent Act provides that a patent may be obtained for “any new and 27 useful process, machine, manufacture, or composition of matter, or any new and useful 1 improvement thereof.” 35 U.S.C. § 101. Although the language of the statute is broad, the 2 Supreme Court has explained that “[l]aws of nature, natural phenomena, and abstract ideas are not 3 patentable.” Ass’n for Molecular Pathology v. Myriad Genetics, Inc., 569 U.S. 576, 589 (2013) 4 (internal quotation marks and citation omitted). When evaluating whether claims are unpatentable 5 under this exception, a court is required to “distinguish between patents that claim the building 6 blocks of human ingenuity and those that integrate the building blocks into something more.” 7 Alice Corp. Pty. Ltd. v. CLS Bank Int’l, 573 U.S. 208, 217 (2014). In Alice, the Supreme Court 8 prescribed a two-step test for doing so.

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Regents of the University of Minnesota v. LSI Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regents-of-the-university-of-minnesota-v-lsi-corporation-cand-2023.