Repairify, Inc. v. Keystone Automotive Industries, Inc.

District Court, W.D. Texas·Decided July 6, 2022·No. 6:21-cv-00819·Unknown

Opinion

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

REPAIRIFY, INC., § Plaintiff § § W-21-CV-00819-ADA -vs- § § KEYSTONE AUTOMOTIVE INDUSTRIES, § INC. d/b/a ELITEK VEHICLE SERVICES, and § DOES 1 and 20, inclusive, § Defendants

MEMORANDUM OPINION AND ORDER Came on for consideration this date is Defendant’s Motion to Dismiss Under Rule 12(b)(6), filed December 6, 2021. ECF No. 23 (the “Motion”). Plaintiff Repairify, Inc. (“Repairify”) responded on December 20, 2021. ECF No. 27. Defendant Keystone Automotive Industries, Inc. d/b/a Elitek Vehicle Services (“Elitek”) replied on December 27, 2021. ECF No. 28. After careful consideration of the Motion, the Parties’ briefs, and the applicable law, the Court DENIES Defendant’s Motion to Dismiss. I. BACKGROUND On August 9, 2021, Repairify filed its complaint against Elitek for direct and indirect infringement of United States Patent Nos. 8,688,313 (“the ’313 Patent”), No. 9,684,500 (“the ’500 Patent”), and No. 10,528,334 (“the ’334 Patent) (collectively the “Asserted Patents”). ECF No. 1 (the “Complaint”). The ’500 Patent is a divisional of the ’313 Patent, and the ’334 Patent is a continuation of the ’500 Patent. ECF Nos. 1-1, 1-2, 1-3. The Asserted Patents are directed at a system that includes “a remote call center that has the capabilities to diagnose and program a wide variety of vehicles implementing a wide variety of [on-board diagnostic port] communication protocols using the most recent scan tool software for a wide variety of vehicle manufactures and model years.” ECF No. 1 ¶ 34. Repairify claims that this system is infringed by Elitek’s activities. Id. ¶¶ 51, 88, 127. On December 6, 2021, Defendant moved to dismiss Repairify’s claims for direct and indirect infringement under Rule 12(b)(6). ECF No. 23. II. LEGAL STANDARD A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim upon which relief can be granted is “a purely procedural question not pertaining to patent

law,” and so the law of the Fifth Circuit controls. McZeal v. Sprint Nextel Corp., 501 F.3d 1354, 1356 (Fed. Cir. 2007). When considering such motions, this Court “accepts all well-pleaded facts as true, views them in the light most favorable to the plaintiff, and draws all reasonable inferences in the plaintiff’s favor.” Johnson v. BOKF Nat’l Ass’n, 15 F.4th 356, 361 (5th Cir. 2021). 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. 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). A. Direct Infringement The United States Court of Appeals for the Federal Circuit’s latest guidance on pleading standards for direct infringement comes from Bot M8 LLC v. Sony Corporation of America, 4 F.4th 1342 (Fed. Cir. 2021). Bot M8 affirmed-in-part and reversed-in-part an order dismissing direct infringement claims on four patents for failure to sufficiently plead. See id. at 1358.

Critically, the opinion denounced a “blanket element-by-element pleading standard for patent infringement,” favoring instead a flexible inquiry into “whether the factual allegations in the complaint are sufficient to show that the plaintiff has a plausible claim for relief.” Id. at 1352. The level of detail required to meet that standard depends on multiple factors, not limited to “the complexity of the technology, the materiality of any given element to practicing the asserted claim(s), and the nature of the allegedly infringing device.” Id. at 1353. Under any standard, however, the complaint must support its entitlement to relief with “factual content,” not just conclusory allegations that the accused product(s) meet every claim limitation. Id. Under this clarified standard, the Bot M8 Court reversed the dismissal of two direct infringement claims but affirmed the dismissal of two others. Id. at 1358. The complaint-at-issue

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Repairify, Inc. v. Keystone Automotive Industries, Inc., (W.D. Tex. 2022).

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