Science Applications International Corp. v. United States

CourtUnited States Court of Federal Claims
DecidedJanuary 19, 2018
Docket17-825
StatusPublished

This text of Science Applications International Corp. v. United States (Science Applications International Corp. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Science Applications International Corp. v. United States, (uscfc 2018).

Opinion

In the United States Court of Federal Claims No. 17-825 (Filed: January 19, 2018)

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SCIENCE APPLICATIONS INTERNATIONAL CORP.,

Patents; motion to dismiss for Plaintiff, patent-ineligible subject matter; 35 U.S.C. § 101 (2012); whether plaintiff’s claims are directed to an v. abstract idea

THE UNITED STATES,

Defendant.

Christopher C. Campbell, Washington, DC, with whom was DeAnna D. Allen, for plaintiff.

Alex Hanna, United States Department of Justice, Civil Division, Commercial Litigation Branch, Washington, DC, for defendant.

ORDER

This is a claim for patent infringement. Plaintiff, Science Applications International Corp. (“SAIC”), claims that the government has infringed four patents by entering into contracts with plaintiff’s competitors for the procurement of specialized heads up displays (“HUD”) and night vision goggles that allegedly use SAIC’s patented technology. Defendant moves to dismiss for failure to state a claim under Rule 12(b)(6) of the Rules of the United States Court of Federal Claims (“RCFC”), contending that plaintiff’s patents claim ineligible subject matter under 35 U.S.C. § 101 (2012).

At the motion to dismiss stage, we assume that the facts as stated in the complaint are true and draw all reasonable inferences in favor of the non- moving party. Defendant’s motion raises a question of law: whether plaintiff's patent claims recite patent-eligible subject matter. Accenture Global Servs., GmbH v. Guidewire Software, Inc., 728 F.3d 1336, 1340–41 (Fed. Cir. 2013). Section 101 sets out the list of patentable subject matter: “any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof.” 35 U.S.C. § 101. Although this statutory grant is expansive, the Supreme Court has held that section 101 is subject to implicit exceptions for “laws of nature, natural phenomenon, and abstract ideas,” which are not patentable. Alice Corp. Pty. Ltd. v. CLS Bank Int’l, 134 S. Ct. 2347, 2354 (2014). These three concepts are ineligible for patenting because they form the “basic building blocks of human ingenuity.” Alice, 134 S. Ct. at 2354. Claiming a law of nature, natural phenomena, or abstract idea would preempt its use in future inventions, abusing the purpose of patent law and hampering the process of human innovation. Id. (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 71 (2012)).

The Supreme Court has set out the two-part Alice/Mayo test for determining whether a patent claims ineligible subject matter. First, this court must determine whether the patent is directed to a patent-ineligible concept, such as an abstract idea. Id. at 2355 (citing Mayo, 566 U.S. at 72-73). If the patent is directed to a patent-ineligible concept, the second step is to determine, considering the claims “both individually, and ‘as an ordered combination,’” whether the patent claims sufficiently transform the ineligible subject matter with an inventive concept. Id. (quoting Mayo, 566 U.S. at 72- 73).

The Federal Circuit has acknowledged overlap in the two steps in the Alice/Mayo test, but has emphasized, “[T]he first-stage filter is a meaningful one, sometimes ending the inquiry.” Elec. Power Grp., LLC v. Alstom S.A., 830 F.3d 1350, 1353 (Fed. Cir. 2016). The “directed to” inquiry is not simply asking whether an ineligible concept is involved in the patent claims, because all inventions “embody, use, reflect, rest upon, or apply” ineligible concepts to some extent, but rather if the patent is claiming the abstract idea itself. Mayo, 566 U.S. at 72-73; see also Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016). The first step “calls upon us to look at the ‘focus of the claimed advance over the prior art’ to determine if the claim’s ‘character as a whole’ is directed to excluded subject matter.” Affinity Labs of Texas, LLC v. DIRECTV Dig. LLC, 838 F.3d 1253, 1257 (Fed. Cir. 2016) (quoting Genetic Techs. Ltd. v. Merial L.L.C., 818 F.3d 1369, 1375 (Fed. Cir. 2016); Internet

2 Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1346 (Fed. Cir. 2015)). Under Alice/Mayo step one, when determining if the claim’s character is to preempt the ineligible concept or if the claim is sufficiently limited, the Federal Circuit considers the advance or advantages that the claim presents when compared to prior art and reads the claim language in light of the specification. Thales Visionix Inc. v. United States, 850 F.3d 1343 (Fed. Cir. 2017); Enfish, 822 F.2d at 1335, 1337; Genetic Techs. Ltd., 818 F.3d at 1375- 76. In addition to the claim’s language and the specification, the first step calls for comparing the claims at issue to claims that have been found eligible or ineligible in prior cases. Enfish, 822 F.2d at 1334.

With that framework, we turn to the parties’ arguments regarding patent eligibility for each of the four patents at issue and apply the Alice/Mayo first- stage filter to the patent claims. Both defendant in its motion to dismiss and plaintiff in its response put forth arguments that apply to all four patent claims. We therefore will set out the claim language from each patent claim analyzed in the briefing before considering the parties’ arguments and comparing each patent’s claim language to claims formerly found eligible or ineligible by the Federal Circuit.

I. The SERVAL Patents

The patents at issue here are U.S. Patent No. 7,787,012 (“the ‘012 Patent”), U.S. Patent No. 8,817,103 (“the ‘103 Patent”), U.S. Patent No. 9,229,230 (“the ‘230 Patent”) and U.S. Patent No. 9,618,752 (“the ‘752 Patent”) (collectively, the “SERVAL patents”). The four patents form two patent families due to the interrelatedness of the applications. The first patent family is formed by the ‘012 Patent and the ‘103 Patent; the ‘103 Patent is a division of the ‘012 Patent. The second patent family is formed by the ‘230 Patent and the ‘752 Patent; the ‘752 Patent is a continuation of the ‘230 Patent. The four independent claims the parties analyzed in briefing are claim 1 of ‘012 Patent, claim 1 of the ‘103 Patent, claim 15 of the ‘230 Patent, and claim 7 of the ‘752 Patent.1

1 The parties also dispute which claims are representative. In its complaint, SAIC argues that all four patents have been infringed, but “at least” claim 1 of ‘012 Patent, claim 1 of the ‘103 Patent, claim 15 of the ‘230 Patent, and claim 7 of the ‘752 Patent. Plaintiff discusses these four independent claims in its complaint without discussing the other independent claims found in its patents.

3 A. Patent Family One

The first patent family consists of the ‘012 Patent and the ‘103 Patent. The ‘012 Patent is entitled “System and Method for Video Image Registration in a Heads Up Display.” Pl.’s Compl. Ex. A (‘012 Patent).

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Science Applications International Corp. v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/science-applications-international-corp-v-united-states-uscfc-2018.