Server Tech., Inc. v. Schneider Elec. It Corp.

304 F. Supp. 3d 965
CourtDistrict Court, D. Nevada
DecidedMarch 30, 2018
DocketCase No. 3:06–cv–0698–LRH–(VPC)
StatusPublished

This text of 304 F. Supp. 3d 965 (Server Tech., Inc. v. Schneider Elec. It Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Server Tech., Inc. v. Schneider Elec. It Corp., 304 F. Supp. 3d 965 (D. Nev. 2018).

Opinion

LARRY R. HICKS, UNITED STATES DISTRICT JUDGE

Before the court is defendant Schneider Electric IT Corporation's ("Schneider"), formerly known as American Power Conversion Corporation ("APC"), renewed motion for summary judgment on the issue of patent obviousness under 35 U.S.C. § 103. ECF No. 718. Plaintiff Server Technology, Inc. ("STI") filed an opposition to the motion (ECF No. 723) to which Schneider replied (ECF No. 729).

I. Facts and Procedural Background

Plaintiff STI manufactures intelligent electrical power distribution devices. Like STI, defendant Schneider also manufactures intelligent electrical power distribution devices.

In 2006, STI initiated the underlying patent infringement action against Schneider, then known as APC, alleging that certain APC product designs (the AP7900 and AP8900 product lines) infringed several of STI's patents, including United States Patents nos. 7,043,543 ("the '543 patent")1 and 7,702,771 2 ("the '771 patent")

*969. ECF No. 1. STI's patents-in-suit relate to intelligent power distribution units ("PDUs"). PDUs resemble in look and function the electrical plugstrips/power strips ubiquitous in homes and offices that are used to distribute power from a single electrical outlet located in a wall or floor to a multitude of connected electrical appliances (like computers, telephones, printers, televisions, and video game systems). Intelligent PDUs, however, contain "intelligent" design features not present in normal consumer plugstrips. For example, the PDUs at issue in this action contain "switched" outlets, meaning that each outlet or group of outlets on the PDU can be turned on or off remotely over a network. Further, these PDUs continuously monitor electrical information (including voltage, current, and power used by the PDU) and convey this information to the end-user either remotely over a computer network or locally via a display built into the PDU.

The intelligent PDUs designed and manufactured by STI and Schneider/APC are primarily used in large scale applications such as commercial data centers; warehouse-like facilities that maintain and operate networked computer servers.3 Each data center is filled with rows of equipment racks on which networked computer servers are housed. Because the equipment racks are a standard size, data centers profit by maximizing the number of servers that can be powered in each rack: the more servers that can be powered per rack, the more powerful and profitable the data center. Thus, data centers require a constant and reliable power source in order to provide the necessary power for the associated computer servers. Data centers meet these power management needs with intelligent PDUs like those designed by STI and Schneider/APC.

However, a single PDU can only handle a limited number of connected servers/devices before the power draw causes the PDU, and all connected devices, to fail. As with consumer plugstrips, if the devices plugged into an intelligent PDU collectively draw more current/power than the PDU can handle, a current "overload" occurs shutting down every connected device. To warn users of an impending current overload, PDUs have long displayed information about the amount of current being drawn by the PDU. Some early PDUs displayed current information using a single light emitting diode ("LED") that flashed when the PDU was approaching its current threshold. Other PDU designs, including early designs by APC, used an array of colored lights (green, orange, and red) to indicate current level. In contrast, STI's patented designs claimed in Claim 15 of the '543 patent and Claim 15 of the '771 patent are for intelligent PDUs that display current information using a digital display: that is, a display that conveys the amount of current being drawn by the PDU in easily readable numerical digits. See ECF No. 724, Ex. 2 ( '543 patent) at Col. 12:21-50; Ex. 3 ( '771 patent) at Col. 12:19-57.

Between May 12 and May 27, 2015, a jury trial was held on STI's claims that Schneider/APC's challenged product lines infringed Claim 15 of both the '543 and '771 patent. On May 29, 2014, the jury *970returned a verdict in favor of STI finding that the product lines infringed STI's patents. ECF No. 590. In response, Schneider appealed the jury verdict to the Federal Circuit. ECF No. 673. On September 23, 2016, the Federal Circuit held that this court's claim construction of the term "plugstrip" as used in the patents-in-suit was erroneous and issued an order partially reversing the jury verdict and remanding the action to this court.4 See Server Tech., Inc. v. Am. Power Conversion Corp. , 657 Fed.Appx. 1030, 1033-34 (Fed. Cir. 2016). Thereafter, Schneider filed the present renewed motion for summary judgment that Claim 15 of both STI's '543 and '771 patents are invalid as obvious under 35 U.S.C. § 103. ECF No. 718.

II. Legal Standard

Summary judgment is appropriate only when the pleadings, depositions, answers to interrogatories, affidavits, declarations, party stipulations, admissions, and other relevant materials in the record fairly establish that "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." FED. R. CIV. P. 56(a). In assessing a motion for summary judgment, the evidence, together with all inferences that can reasonably be drawn therefrom, must be read in the light most favorable to the party opposing the motion. Matsushita Elec. Indus. Co. v. Zenith Radio Corp. , 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) ; County of Tuolumne v. Sonora Cmty. Hosp. , 236 F.3d 1148, 1154 (9th Cir. 2001).

The moving party bears the initial burden of informing the court of the basis for its motion, along with all evidence showing the absence of any genuine dispute of material fact. Celotex Corp. v. Catrett , 477 U.S. 317, 323, 106 S.Ct. 2548

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Bluebook (online)
304 F. Supp. 3d 965, Counsel Stack Legal Research, https://law.counselstack.com/opinion/server-tech-inc-v-schneider-elec-it-corp-nvd-2018.