Stormborn Technologies, LLC v. Topcon Positioning Systems, Inc.

District Court, N.D. California·Decided March 17, 2020·No. 3:19-cv-07804·Unknown

Opinion

STORMBORN TECHNOLOGIES, LLC, Case No. 19-cv-07804-WHO

Plaintiff, ORDER DENYING MOTION TO v. DISMISS

TOPCON POSITIONING SYSTEMS, INC., Re: Dkt. No. 35 Defendant.

Plaintiff Stormborn Technologies LLC (“Stormborn”) brings this patent infringement action against Topcon Positioning Systems, Inc. (“Topcon”), alleging that Topcon’s products infringe on Claims 11 through 14 of its patent, US RE44,199 (“the ‘199 Patent”), titled “Variable Throughput Reduction Communications System and Method”. Topcon moves to dismiss Stormborn’s complaint on grounds that the patent claims ineligible subject matter under 35 U.S.C. § 101. Representative Claim 11, considered in light of the specification, is not functionally defined without a specific implementation; it is tied to a concrete structure, the command processor. And if it was directed to an abstract idea, it still provides a specific technological solution that improves the way spread-spectrum communication systems operate. For these reasons, Topcon’s motion to dismiss under section 101 is DENIED. Stormborn alleges that Topcon infringes Claims 11 through 14 of its ‘199 Patent. First Amended Complaint (“FAC”) ¶¶ 1, 4 [Dkt. No. 30]. In particular, it accuses “Topcon’s 3D- wireless data conveyed in data symbols by a plurality of different subchannel signals transmitted over a wireless channel.” Id. at ¶ 56. Stormborn initially brought this action on November 27, 2019. Complaint [Dkt. No. 1]. After Topcon moved to dismiss the Complaint for failure to state a claim on the grounds that the ‘199 Patent is directed to patent ineligible subject matter, Stormborn filed its FAC. Topcon’s renewed motion to dismiss the FAC is before me now. Defendant’s Renewed Rule 12(b)(6) Motion to Dismiss for Failure to State a Claim (“MTD”) [Dkt. No. 35]. II. THE ‘199 PATENT The United States Patent and Trademark Office issued the ‘199 Patent to Linex Technologies, Inc (“Linex”) and Stormborn subsequently received all rights, title and interest in the patent. FAC ¶¶ 10, 11. The ‘199 Patent is comprised of 49 claims and relates to communications, particularly spread-spectrum communication systems. FAC, Ex. 1 (“‘199 Patent”) [Dkt. No. 30-1] 2:11-15. Along with its FAC, Stormborn submitted a declaration by Dr. Donald L. Schilling, who was the Chief Executive Officer of Linex during the development of the ‘199 Patent (and still is). FAC ¶ 12; see id., Ex. B, Declaration of Dr. Schilling (Schilling Decl.”) [Dkt. No. 30-2] ¶ 12. The declaration provides background information relevant to the ‘199 Patent. In telecommunication and radio communication, spread-spectrum techniques are methods by which a signal (e.g., an electrical, electromagnetic, or acoustic signal) generated with a particular bandwidth is deliberately spread in the frequency domain, resulting in a signal with a wider bandwidth. Schilling Decl. ¶ 12. These techniques are used for a variety of reasons, including the establishment of secure communications and increasing resistance to natural interference. Id. As identified in the specification, previous packet-communications spread-spectrum multi- cell systems implement high speed data through the use of parallel channels, using parallel chip- sequence signals. ‘199 Patent at 1:37-41; Schilling Decl. ¶ 13; FAC ¶ 15. The chip-sequence signals are sent simultaneously, thereby increasing the data rate while still having a high The prior art systems ensure that interference is small enough so as not to cause the error rate of the wanted signal to deteriorate below a usable level. Id. at 1:50-54. However, when a remote station is near the edge of a cell, the interference can be substantial because the interference can result from two adjacent cells. Id. at 1:55-56; see also id. at Figure 1. Thus, the specification identifies a continued need to be solved within computer centric or network centric technology – the reduction of the signal interference that can occur due to two adjacent cells. The specification describes the shortcomings of prior attempts to overcome this problem. One previous method was to increase the processing gain in order to increase the immunity from interference. ‘199 Patent at 1:58-61. However, this method changes the length of the correlator sequence, or changes the size of the matched fiber; both of which impact the architecture of the receiver. Id. at 1:63-66. This methodology also requires the chip-tracking loop and phase- tracking loop to function flawlessly and reduces the allowable frequency offset. Id. at 1:66-2:3. Another prior attempt to solve this problem was to repeat the symbols sequentially and add the result of the individual received symbols, but this method changes the timing of the receiver and the framing of the data at the transmitter. Id. at 2:6-7. Stormborn alleges that the invention claimed in the ‘199 Patent addresses these needs and inefficiencies by providing an improved communication system. FAC ¶ 18. It claims that the receiver of Claim 11 (and its method Claim 13) is an improvement on prior solutions because it overcomes a “network centric problem” in a way that is different from the prior art. See FAC ¶¶ 27, 36, 40, 41. Claim 11 describes a “receiver for recovering wireless data conveyed in data symbols,” comprising of a “demodulator circuitry[,]” “decoder circuitry[,]” “command processor circuitry[,]” “transmitting circuitry[,]” and “multiplexer circuitry[.]” ‘199 Patent at 11:26-45. Stormborn asserts that the receiver is an improvement on prior solutions because it adds a command processor circuity. Id. at 3:59-64; FAC ¶ 24. The command processor circuitry is responsive to the error rate of the decoded channels to generate a data rate control signal to produce a desired data rate to be sent by the data symbol transmitter of the signals. FAC ¶ 24; ‘199 Patent at 11: 34-40; Schilling Decl. ¶ 26. A comparison between Figures 3 and 5 show the transmitter. ‘199 Patent at 3:34-43. Claim 13 covers a method of operation for the receiver in Claim 11. ‘199 Patent at 15:47- 63. Claims 12 and 14 are dependent claims. Claim 12 is “[t]he receiver of claim 11 wherein the decoder circuitry includes circuitry to decode FEC codes of different rates” and claim 14 is “[t]he method of claim 13 wherein the decoding step includes decoding FEC codes of different rates.” Id. at 15:46-47 and 15:64-65. Stormborn also alleges that the ‘199 Patent highlighted this unique and discrete idea during its prosecution. FAC ¶ 25. Namely, that Claims 11 and 13 are not directed to an abstract idea because the invention “was able to overcome a network-centric problem that existed in the prior art by allowing the receiver to maintain a high data rate without affecting the architecture of the receiver and maintain an immunity to interference.” FAC ¶ 27; Schilling Decl. ¶ 24. Under Federal Rule of Civil Procedure 12(b)(6), a district court must dismiss a complaint if it fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to dismiss, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its face.” See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 556 (2007). A claim is facially plausible when the plaintiff pleads facts that “allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” See Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). There must be “more than a sheer possibility that a defendant has acted unlawfully.” Id. While courts do not require “heightened fact pleading of specifics,” a plaintiff must allege facts sufficien

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Stormborn Technologies, LLC v. Topcon Positioning Systems, Inc., (N.D. Cal. 2020).

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