Renhcol Inc. v. DON BEST STORTS

548 F. Supp. 2d 356, 89 U.S.P.Q. 2d (BNA) 1458, 2008 U.S. Dist. LEXIS 34449, 2008 WL 1885522
CourtDistrict Court, E.D. Texas
DecidedApril 28, 2008
Docket1:06-cv-00318
StatusPublished
Cited by4 cases

This text of 548 F. Supp. 2d 356 (Renhcol Inc. v. DON BEST STORTS) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Renhcol Inc. v. DON BEST STORTS, 548 F. Supp. 2d 356, 89 U.S.P.Q. 2d (BNA) 1458, 2008 U.S. Dist. LEXIS 34449, 2008 WL 1885522 (E.D. Tex. 2008).

Opinion

MEMORANDUM OPINION AND ORDER

LEONARD DAVIS, District Judge.

Before the Court is Sports Direct, Inc. and Covers Media Group, Ltd’s (collectively, “Defendants”) Motion for Summary Judgment (Docket No. 140). After consideration of the parties’ arguments and written submissions, the Court GRANTS Defendants’ motion as to whether Defendants make, sell, or offer for sale within the United States the invention claimed in claims 23, 24, and 25 and whether Defendants import into the United States the invention claimed in claims 23, 24, and 25. The Court further GRANTS Defendants’ motion as to whether Defendants use within the United States the invention claimed in claim 25 and whether Defendants infringe claim 25 under 35 U.S.C. § 271(b) and (c). The Court DENIES Defendants’ motion as to whether Defendants use within the United States the invention claimed in claims 23 and 24 and whether Defendants infringe claims 23 and 24 under 35 U.S.C. § 271(b) and (c).

BACKGROUND

Plaintiff 1 alleges Defendants infringe on various claims of U.S. Pat. No. 6,260,019 (the “'019 Patent”). The '019 Patent discloses an electronic marketplace for prediction information over a communications network. Particularly, the '019 Patent covers a method and apparatus for facilitating transactions between prediction suppliers and prediction consumers. Prediction suppliers provide their predictions on the outcomes of future events. The system tracks the prediction suppliers’ accuracy. Prediction consumers can view prediction suppliers’ track records and obtain predictions from prediction suppliers. A supplier is compensated, either by the consumers or by advertisers, based upon the number of consumers who view the supplier’s predictions.

Plaintiff alleges Defendants infringe claims 23, 24, and 25 of the '019 Patent. Claim 23 claims a computer storage medium that comprises code for performing functions that facilitate transactions in the electronic marketplace for prediction information. Claim 24 claims a computer programmed to perform the functions claimed in claim 23. Claim 25 claims a method for obtaining prediction information that comprises viewing a prediction supplier’s performance record, viewing available prediction information, electing to purchase prediction information, viewing the purchased prediction information, and crediting an account of the prediction supplier.

Defendants are Canadian and Irish corporations that conduct hosting, content development, and financial operations that relate to two accused websites. Defendants conduct these activities outside the United States. Defendants claim the code for the accused websites is, and has always been, written outside the United States and the computers and servers that host the code are, and have always been, located outside the United States. Defendants engage foreign banks to process customer payments and to process payments to handicappers. Defendants determine the amount of money to pay handicappers for correct predictions, and Defendants make this determination outside the United States.

*359 Defendants claim they do not make, use, sell, or offer for sale the claimed invention within the United states and claim they do not import the claimed invention into the United States, as the computer storage medium and computer code are located in Canada and the method steps are performed in Canada and Ireland. Defendants move for summary judgment of non-infringement on that basis.

APPLICABLE LAW

Summary judgment shall be rendered when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed.R.CivP. 56(c); Celotex Corp. v. Ca-trett, 477 U.S. 317, 323-25, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Ragas v. Term. Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir.1998). An issue of material fact is genuine if the evidence could lead a reasonable jury to find for the non-moving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). In determining whether a genuine issue for trial exists, the court views all inferences drawn from the factual record in the light most favorable to the nonmoving party. Id.; Matsu-shita Elec. Indus. Co. v. Zenith Radio, 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986).

If the moving party has made an initial showing that there is no evidence to support the nonmoving party’s case, the party opposing the motion must assert competent summary judgment evidence of the existence of a genuine fact issue. Matsu-shita, 475 U.S. at 586, 106 S.Ct. 1348. Mere conclusory allegations, unsubstantiated assertions, improbable inferences, and unsupported speculation are not competent summary judgment evidence. See Eason v. Thaler, 73 F.3d 1322, 1325 (5th Cir. 1996); Forsyth v. Ban; 19 F.3d 1527, 1533 (5th Cir.1994). The party opposing summary judgment is required to identify evidence in the record and articulate the manner in which that evidence supports his claim. Ragas, 136 F.3d at 458. “Only disputes over facts that might affect the outcome of the suit under the governing laws will properly preclude the entry of summary judgment.” Anderson, 477 U.S. at 248, 106 S.Ct. 2505. Summary judgment must be granted if the nonmoving party fails to make a showing sufficient to establish the existence of an element essential to its case and on which it will bear the burden of proof at trial. Celotex, 477 U.S. at 322-23, 106 S.Ct. 2548.

ANALYSIS

An alleged infringer directly infringes on a patent if the infringer, without authority, “makes, uses, offers to sell or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent.” 35 U.S.C. § 271(a). To show direct patent infringement, the patentee must show someone performed the prohibited acts with a product or process that infringes at least one asserted claim. Warner-Jenkinson Co. v. Hilton Davis Chem. Co., 520 U.S. 17, 40, 117 S.Ct. 1040, 137 L.Ed.2d 146 (1997) (stating inquiry to determine direct patent infringement is “[d]oes the accused product or process contain elements identical or equivalent to each claimed element of the patented invention?”).

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548 F. Supp. 2d 356, 89 U.S.P.Q. 2d (BNA) 1458, 2008 U.S. Dist. LEXIS 34449, 2008 WL 1885522, Counsel Stack Legal Research, https://law.counselstack.com/opinion/renhcol-inc-v-don-best-storts-txed-2008.