Savvy Dog Systems, LLC. v. Pennsylvania Coin, LLC

District Court, M.D. Pennsylvania·Decided December 21, 2020·No. 3:19-cv-01470·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF PENNSYLVANIA SAVVY DOG SYSTEMS, LLC, and : Civil No. 3:19-CV-01470 POM OF PENNSYLVANIA, LLC, : : Plaintiffs, : : v. : : PENNSYLVANIA COIN, LLC, and : PA COIN HOLDINGS, LLC, : : Defendants. : Judge Jennifer P. Wilson MEMORANDUM Before the court are the parties’ proposed constructions for the disputed claim terms of U.S. Patent No. 7,736,223 (“‘223 Patent). (Docs. 71, 72, 74, 85, 87.) FACTUAL BACKGROUND AND PROCEDURAL HISTORY1 Plaintiffs Savvy Dog Systems, LLC (“Savvy Dog”) and POM of Pennsylvania, LLC (“POM”) (collectively, “Plaintiffs”) initiated this action via complaint on August 23, 2019, against Defendants Pennsylvania Coin, LLC and PA Coin Holdings, LLC (collectively, “Defendants”). Defendants filed a motion to dismiss, prompting Plaintiffs to file an amended complaint on November 1, 2019. (Docs. 21, 25.) The single count in the amended complaint sets forth a

1 Because the court is writing for the benefit of the parties and the court, limited factual background and procedural history are detailed in this memorandum. claim for patent infringement under 35 U.S.C. § 271 of Savvy Dog’s Patent Number: US 7,736,233 (“‘223 Patent”). (Doc. 25.)

The technology at issue in this patent infringement lawsuit relates to an “electronic gaming method and system with a game preview display.” (Doc. 71–3, p. 2.)2 This technology transforms games of chance into games of skill, which

then allows skill-based amusement machines in jurisdictions where the use of gambling devices, i.e. games of chance, are largely outlawed. (See id. at 12.) Plaintiffs allege infringement of two independent claims within the ‘223 Patent, claim 44 and claim 51, with additional dependent claims adding elements to the

independent claims. (See Doc. 25.) On November 15, 2019, Defendants filed a motion to dismiss Plaintiffs’ amended complaint along with a supporting brief arguing that the ‘223 Patent

claims patent-ineligible subject matter pursuant to 35 U.S.C. § 101 and that the amended complaint failed to state a plausible claim for patent infringement. (Docs. 31–32.) Following briefing and oral argument, the court denied the motion to dismiss finding that although the claim at issue is an abstract idea, Plaintiffs

adequately alleged an inventive concept sufficient to survive a motion to dismiss. (Docs. 37–39, 49, 56, 57, 58–59, 61–62.) Thereafter, Defendants timely answered Plaintiffs’ amended complaint. (Doc. 63.)

2 For ease of reference, the court utilizes the page numbers from the CM/ECF header. On June 25, 2020, Defendants filed a motion to stay this action pending final resolution of non-party Banilla Games, Inc.’s Covered Business Method Review

(“CBM”) proceeding before the United States Patent and Trademark Office, Patent and Trial Appeal Board (“PTAB”). (Doc. 68.) Once ripe, the court ordered that the motion would be held in abeyance until the PTAB decided whether to institute

review of the CBM petition. (Docs. 69, 70 ,77, 80.) The parties, as requested in the court’s prior order, notified the court on November 24, 2020, that PTAB denied Banilla Games, Inc’s petition for institution of CBM review. (Doc. 106.) Thus, the court denied Defendants’ motion to stay this action on December 8, 2020.

(Doc. 109.) While awaiting a PTAB decision, the court moved forward with the schedule in this case, which included the filing of a joint claim construction

statement, technology tutorials, and opening and responsive claim construction briefs by the parties. (Docs. 71, 72, 74, 86, 87, 93.) The court held a claim construction hearing on September 15, 2020, and permitted letter briefs following that hearing on specific issues not previously addressed in the claim constructing

briefing. (Docs. 98, 100–102.) Thus, the construction of the claims at issue in the ‘223 Patent is now ripe for review. STANDARD OF REVIEW Claim construction is a matter of law to be determined by the court.

Markman v. Westview Instruments, Inc., 52 F.3d 967, 979 (Fed. Cir. 1995) (en banc), aff’d, 517 U.S. 370 (1996). As the case moves forward, the court’s ruling becomes the basis for jury instructions at a trial. AFG Indus., Inc. v. Cardinal IG Co., 239 F.3d 1239, 1247 (Fed. Cir. 2001).

“It is a ‘bedrock principle’ of patent law that ‘the claims of a patent define the invention to which the patentee is entitled the right to exclude.’” Phillips v. AWH Corp., 415 F.3d 1303, 1312 (Fed. Cir. 2005) (quoting Innova/Pure Water,

Inc. v. Safari Walter Filtration Sys., Inc., 381 F.3d 1111, 1115 (Fed. Cir. 2004)). Claim terms “are generally given their ordinary and customary meaning.” Id. (quoting Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576, 1582 (Fed. Cir.

1996)). “[T]he ordinary and customary meaning of a claim term is the meaning that the term would have to a person of ordinary skill in the art in question at the time of the invention.” Id. at 1313. Determining how a person of ordinary skill in the art (“POSITA”) “understands a claim term provides an objective baseline from

which to begin claim interpretation.” Id. The ordinary meaning of claim terms as understood by a POSITA may be readily apparent to a lay person in some cases. Id. at 1314. However, in many

cases, “determining the ordinary and customary meaning of the claim requires examination of terms that have a particular meaning in a field of art.” Id. The court must look to “those sources available to the public that show what a

[POSITA] would have understood disputed claim language to mean.” Id. This is primarily done by reviewing intrinsic evidence, which consists of the claim language, the claim specification, and the prosecution history. Id. at 1312–17; see

also Arlington Indus. Inc. v. Bridgeport Fittings, Inc., No. 3:01-cv-0485, 2008 WL 542966, at *1 (M.D. Pa. Feb. 25 2008). “[T]he claims themselves provide substantial guidance as to the meaning of particular claim terms.” Phillips, 415 F.2d at 1314 (citing Vitronics, 90 F.3d at 1582). However, the claims do not

“stand alone,” but are part of “a fully integrated written instrument,” which consists “principally of a specification that concludes with the claims.” Id. at 1315 (quoting Markman, 52 F.3d at 978). The specification “is always highly relevant

to the claim construction analysis” and is generally dispositive as “the single best guide to the meaning of a disputed term.” Id. (quoting Vitronics, 90 F.3d at 1582). Further, the inventor’s lexicography will govern when the specification reveals “a special definition given to a claim term by the patentee that differs from the

meaning it would otherwise possess.” Id. at 1316. In addition to the claim terms and specification, the prosecution history of the patent at issue “provides evidence of how the [Patent and Trademark Office]

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Savvy Dog Systems, LLC. v. Pennsylvania Coin, LLC, (M.D. Pa. 2020).

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