SkillSurvey, Inc. v. Checkster LLC

178 F. Supp. 3d 247, 2016 WL 1255785, 2016 U.S. Dist. LEXIS 43250
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 31, 2016
DocketCIVIL ACTION NO. 15-1766
StatusPublished
Cited by3 cases

This text of 178 F. Supp. 3d 247 (SkillSurvey, Inc. v. Checkster LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SkillSurvey, Inc. v. Checkster LLC, 178 F. Supp. 3d 247, 2016 WL 1255785, 2016 U.S. Dist. LEXIS 43250 (E.D. Pa. 2016).

Opinion

MEMORANDUM

Jones, II, District Judge.

Pending before the Court is Defendant’s Motion to Dismiss this suit on the basis that Plaintiffs patent infringement claims fail as a matter of law because the asserted patent, United States Patent No. 8,894,-416 (the “ ’416 Patent”) entitled “SYSTEM AND METHOD FOR EVALUATING JOB CANDIDATES” is invalid under 35 U.S.C. § 101 for lack of patenNeligible subject matter. For the foregoing reasons, this Court agrees. This matter is dismissed.

I. Standard of Review

a. Motion to Dismiss

In deciding a motion to dismiss pursuant to Rule 12(b)(6), courts must “accept all factual allegations as true, construe the complaint in the light most favorable to the plaintiff, and determine whether, under any reasonable reading of the complaint, the plaintiff may be entitled to relief.” Phillips v. County of Allegheny, 515 F.3d 224, 233 (3d Cir.2008) (internal quotation and citation omitted). After the Supreme Court’s decision in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), “[tjhread-bare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). “A claim has factual plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. at 678, 129 S.Ct. 1937 (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955). This standard, which applies to all civil cases, “asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. at 678, 129 S.Ct. 1937; accord Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir.2009) (“[A]ll civil complaints must contain more than an unadorned, the-defendant-unlawfully-harmed-me accusation.”) (internal quotation marks omitted).

b. Patent Eligibility

Under § 101, the scope of patentable subject matter includes “any new and useful process, machine, manufacture or composition of matter, or any new and useful improvement thereof, may obtain a [251]*251patent therefor, subject to the conditions of this title.” 35 U.S.C. § 101. Eligible subject matter does not include “laws of nature, natural phenomena, and abstract ideas.” Diamond v. Diehr, 450 U.S. 175, 185, 101 S.Ct. 1048, 67 L.Ed.2d 155 (1981). These exclusions should not be construed too broadly however, because all inventions “at some level embody, use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas.” Mayo Collaborative Services v. Prometheus Labs., Inc., — U.S. -, 132 S.Ct. 1289, 1293, 182 L.Ed.2d 321 (2012) (“Mayo”). Thus, courts are tasked with differentiating between patents that attempt to monopolize the “building blocks” of human ingenuity and those that transform the building blocks into something more. Alice Corp. Pty. v. CLS Bank Int'l, — U.S. -, 134 S.Ct. 2347, 2354, 189 L.Ed.2d 296 (2014) (“Alice”) (citing Mayo, 132 S.Ct. at 1303). Validity under § 101 is a question of law. Fort Properties, Inc. v. Am. Master Lease LLC, 671 F.3d 1317, 1320 (Fed.Cir.2012).

In Mayo, the Supreme Court developed a two-step “framework for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts.” Alice, 134 S.Ct. at 2355. First, the Court must determine if the patent is based on one of the patent-ineligible concepts (e.g. laws of nature, natural phenomena or an abstract idea). Id. (citing Mayo, 132 S.Ct. at 1296-97). If so, second, the Court must consider “the elements of each claim both individually and ‘as an ordered combination’ to determine whether the additional elements transform the nature of the claim into a patent-eligible application.” Id. (quoting Mayo, 132 S.Ct. at 1297-98). This second step is a “search for an ‘inventive concept’ — i.e., an element or combination of elements that is ‘sufficient to ensure, that a patent.in practice amounts to significantly more than a patent upon the [ineligible] concept itself.’” Alice, 134 S.Ct. at 2355 (quoting Mayo, 132 S.Ct. at 1294).

It is appropriate to address a § 101 challenge at the pleading stage. See, e.g., OIP Technologies, Inc. v. Amazon.com Inc., 2012 WL 3985118, at *5 (N.D.Cal.2012) (“OIP”) (collecting cases); see also Bancorp Servs., LLC v. Sun Life Assurance Co. of Can., 687 F.3d 1266, 1273 (Fed.Cir.2012) (“Bancorp”) (“[C]laim construction is not an inviolable prerequisite to a validity determination under § 101.”). Where, as here, “the basic character of the claimed subject matter is readily ascertainable from the face of the patent, the Court finds that it may determine patentability at the motion to dismiss stage.” Internet Patents Corp. v. Gen. Auto. Ins. Servs., Inc., 29 F.Supp.3d 1264, 1268 (N.D.Cal.2013) (“Internet Patents”) aff'd sub nom. Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343 (Fed.Cir.2015) (“Internet Patents”); see id. (Mayer, J. concurring) (“Addressing 35 U.S.C. § 101 at the outset not only conserves scarce judicial resources and spares litigants the staggering costs associated with discovery and protracted claim construction litigation, it also works to stem the tide of vexatious suits brought by the owners of vague and overbroad business method patents.”).

II. Background

When deciding a motion to dismiss under 12(b)(6), the “court must consider only the complaint, exhibits attached to the complaint, matters of public record, as well as undisputedly authentic documents if the complainants claims are based upon these documents.” Mayer v. Belichick, 605 F.3d 223, 230 (3d Cir.2010). “[A] court may consider an undisputedly authentic document that a defendant attaches as an exhibit to a motion to dismiss if the plaintiffs claims are based on the document.” Pension Ben. Guar. Corp. v. White Consol. Industries, Inc., 998 F.2d 1192, 1196 (3d Cir.1993).

[252]*252a. The ’416 Patent

SkillSurvey, Inc. (“Plaintiff’) filed an Amended Complaint against Checkster LLC 1“Defendant”) for violating their United States Patent No. 8,894,416 (“’416 Patent”) under 35 U.S.C. § 1 ef seq.

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Bluebook (online)
178 F. Supp. 3d 247, 2016 WL 1255785, 2016 U.S. Dist. LEXIS 43250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skillsurvey-inc-v-checkster-llc-paed-2016.