Rich Media Club LLC v. Duration Media LLC

District Court, D. Arizona·Decided July 12, 2023·No. 2:22-cv-02086·Unknown

Opinion

WO

Rich Media Club LLC, No. CV-22-02086-PHX-JJT

Plaintiff, ORDER

v.

Duration Media LLC,

Defendant. At issue is Defendant Duration Media LLC’s Motion to Dismiss Pursuant to Fed. R. Civ. P. 12(b)(6) (Doc. 27, MTD), to which Plaintiff Rich Media Club LLC filed a Response (Doc. 30, Resp.) and Defendant filed a Reply (Doc. 33, Reply). The Court has reviewed the parties’ briefs and finds this matter appropriate for decision without oral argument. See LRCiv 7.2(f). For the reasons set forth below, the Court denies Defendant’s Motion to Dismiss. In the Amended Complaint, the operative pleading, Plaintiff states that online advertising is one of the largest advertising markets in the world and faces many challenges that are not common in other media. (Doc. 20, Am. Compl. ¶¶ 7–8.) While advertisements placed in print media or on broadcast television are readily verifiable to advertisers, online advertising presents a different challenge because, for any given content, the size of the user’s browser window determines the viewability of the content at any given time. (Am. Compl. ¶¶ 8–9.) Plaintiff develops and sells products and services to provide advertising and marketing solutions to businesses. With regard to online advertising, Plaintiff developed patented technology that ensures that an advertisement appears on the portion of a web browser window being viewed by a potential consumer. (Am. Compl. ¶¶ 10–11.) This matter arises out of Plaintiff’s patent infringement claim against Defendant under 35 U.S.C. § 271. As of October 11, 2022, Plaintiff had “received ten issued United States patents for inventions related to ad viewability, monitoring, and confirmation.” (Am. Compl. ¶ 13.) Among those patents is U.S. Patent No. 11,443,329 (“’329 Patent”), titled “System and Method for Creation, Distribution, and Tracking of Advertising Via Electronic Networks,” which was issued to Plaintiff by the United States Patent and Trademark Office (“USPTO”) on September 13, 2022. (Am. Compl. ¶¶ 14–15.) The ’329 Patent relates to a system and method for “determining whether a predefined area of an ad content display page that is used to display an advertisement is in view within a visible area of a browser window,” rendering an advertisement within that predefined area based upon a real-time auction, and rendering a replacement advertisement within the area after a predefined length of time. (See Doc. 30-1, Resp. Ex. A, ’329 Patent columns 67–69.) Claims 1, 2, 3, and 5 of the ’329 Patent recite: What is claimed is: 1. A method comprising: (a) determining whether a predefined area of an ad content display page that is used to display an advertisement is in view within a visible area of a browser window of a browser configured to be operated by a remote computing device, wherein the predefined area is a portion of the ad content display page, and wherein the ad content display page includes (i) the predefined area configured to display advertisement content, the predefined area being a portion of the ad content display page, and (ii) page content displayed in other portions of the ad content display page, the page content being separate from the advertisement content; and (b) in response to a determination that the predefined area that is used to display the advertisement has been in view within the visible area of the browser window for a predefined period of time, causing a communication to be sent to one or more dispatcher servers, wherein the one or more dispatcher servers are configured to: (i) receive the communication; (ii) cause a replacement advertisement to be selected for display on the ad content display page; and (iii) cause the replacement advertisement to be served to the remote computing device; wherein the browser is further configured to render the replacement advertisement in the predefined area. 2. The method of claim 1 wherein the replacement advertisement is selected at least partially as a result of a replacement auction. 3. The method of claim 2 wherein the replacement auction is conducted in real time between the time the second communication is sent from the remote computing device and the time that the replacement advertisement is selected. 4. [not at issue] . . . 5. The method of claim 1 wherein the predefined area of the ad content display page currently displays an advertisement, and wherein the replacement advertisement replaces the currently displayed advertisement. (’329 Patent columns 68–69.) Plaintiff alleges that the individual elements in the claim—and the claimed combination—in the ’329 Patent were not routine, well-understood, or conventional at the time of the invention. (Am. Compl. ¶ 22.) For its part, Defendant was issued U.S. Patent No. 11,195,210 (“’210 Patent”) on December 7, 2021.1 (Am. Compl. Ex. E, ’210 Patent at 2 of 20.) The ’210 Patent “relates generally to systems and methods for real-time viewable advertising, and more specifically, to systems and methods that programmatically sell the same ad space on the same computing device multiple times.” (’210 Patent column 1.) The ’210 Patent includes a diagram nearly identical to Figure 51 contained in the ’329 Patent, which Plaintiff alleges was copied by Defendant from one of Plaintiff’s patents. (Am. Compl. ¶ 55.) 1 Plaintiff’s ’329 Patent is a continuation-in-part of related Patent Application No. 12/384,403, filed on April 4, 2009, now Patent No. 11,004,090, which is a continuation- in-part of Patent Application No. 11/803,779, filed on May 16, 2007, now U.S. Patent No. 10,380,602, which is a continuation-in-part of Patent Application No. 11/643,245, filed on Dec. 21, 2006, now U.S. Patent No. 10,380,597, which claimed the benefit of the earlier filing date of U.S. Patent Application No. 60/753,536, filed on December 24, 2005. (See ’329 Patent column 1.) On December 9, 2022, Plaintiff filed suit against Defendant for one count of patent infringement, claiming that Defendant “directly infringed [at least claims 1, 2, 3, and 5 of] the ’329 Patent . . . by making, using, offering for sale, and/or selling Infringing Services[.]” (Am. Compl. ¶ 45.) Plaintiff requests that the Court declare that Defendant infringed the ’329 Patent under 35 U.S.C. § 271 and enter an injunction preventing Defendant from continuing to infringe the ’329 Patent. Additionally, Plaintiff seeks monetary relief, increased damages for willful and deliberate infringement under 35 U.S.C. § 284, and recovery of its attorneys’ fees and costs incurred in prosecution under 35 U.S.C. § 285. (Am. Compl. ¶¶ 55, 56 & at 22–23.) In its reasserted Motion to Dismiss, filed March 22, 2023, Defendant seeks dismissal of the Amended Complaint with prejudice pursuant to Federal Rule of Civil Procedure 12(b)(6). (MTD at 1.) Defendant contends that Plaintiff’s ’329 Patent is invalid because it is directed to patent-ineligible subject matter under 35 U.S.C. § 101: specifically, an “abstract idea.” (MTD at 1.) Rule 12(b)(6) is designed to “test[] the legal sufficiency of a claim.” Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). A dismissal under Rule 12(b)(6) for failure to state a claim can be based on either: (1) the lack of a cognizable legal theory;

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Rich Media Club LLC v. Duration Media LLC, (D. Ariz. 2023).

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