Straight Path IP Group, Inc. v. Cisco Systems, Inc.

CourtDistrict Court, N.D. California
DecidedNovember 20, 2019
Docket3:16-cv-03463
StatusUnknown

This text of Straight Path IP Group, Inc. v. Cisco Systems, Inc. (Straight Path IP Group, Inc. v. Cisco Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Straight Path IP Group, Inc. v. Cisco Systems, Inc., (N.D. Cal. 2019).

Opinion

1 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE NORTHERN DISTRICT OF CALIFORNIA 8 9 10 STRAIGHT PATH IP GROUP, INC., No. C 16-03463 WHA No. C 16-03582 WHA 11 Plaintiff, 12 v. 13 CISCO SYSTEMS, INC., 14 Defendant. ORDER ON MOTIONS FOR ATTORNEY’S FEES AND 15 COSTS AND TO FILE UNDER STRAIGHT PATH IP GROUP, INC., SEAL 16 Plaintiff, 17 v. 18 APPLE INC., 19 Defendant. 20 / 21 INTRODUCTION 22 In these related actions for patent infringement, defendants move for attorney’s fees and 23 24 costs. For the reasons stated below, the motions are GRANTED IN PART and DENIED IN PART. STATEMENT 25 This order finds that the shifting sands of the patent owner’s delineations of the claimed 26 invention’s scope — instigated by its narrowing of scope to avoid invalidity before the Federal 27 Circuit, followed by its broadening of scope to accuse others of infringement in the district 28 1 court — render the above-captioned actions “exceptional” within the meaning of Section 285 of 2 Title 35 of the United States Code. 3 The procedural background of these related actions has been described in prior orders 4 but will be summarized herein (see Case No. 16-3582, Dkt. Nos. 61, 78). Plaintiff Straight Path 5 IP Group, Inc. sued defendant Cisco Systems, Inc., alleging infringement of United States 6 Patent Nos. 6,009,469 (“the ’469 patent”), 6,108,704 (“the ’704 patent”), 6,131,121 (“the ’121 7 patent”), and 6,701,365 (“the ’365 patent”). In a related action, Straight Path also sued 8 defendant Apple Inc. for allegedly infringing these four patents plus United States Patent No. 9 7,149,208 (“the ’208 patent”). 10 The patents-in-suit belong to the same family and generally relate to establishing a 11 point-to-point communication link. Specifically, they “disclose a point-to-point Internet 12 communications protocol that enables: (1) a first computer program to query a connection 13 server to determine if a second computer program is currently connected to the network, and 14 (2) if the second computer program is connected, to obtain its existing network address so that 15 the desired point-to-point communication can be established at the time it is sought” (Case Nos. 16 16-3463, Dkt. No. 1 ¶ 12; 16-3582, Dkt. No. 84 ¶ 12). 17 Over the past five years, these patents have been put through the judicial wringer. 18 Starting in 2014, Straight Path first filed suit against both defendants (among others) (Case Nos. 19 14-4302, 14-4312). Shortly after filing suit, Straight Path sought to stay those actions based on 20 pending inter partes review proceedings. Soon after a prior order denied the request to stay, 21 Straight Path and both defendants executed a “Standstill Agreement” under which Straight Path 22 agreed not to use the 2014 lawsuit as the basis for claiming pre-suit notice of infringement for 23 purposes of an enhanced damages claim in any future lawsuit (Case No. 16-3582, Dkt. No. 214 24 at 3–4). Straight Path then voluntarily dismissed the actions without prejudice. 25 For the next two years (and before Straight Path filed the instant actions), inter partes 26 review of the ’704, ’121, and ’469 patents ensued before the Patent Trial and Appeal Board and 27 the United States Court of Appeals for the Federal Circuit. Crucial to the instant motions — 28 and the prior order granting summary judgment of noninfringement for both defendants — 1 those proceedings focused on the “is connected” limitation, as found in representative Claim 1 2 of the ’704 patent (id., Dkt. No. 84-2 at 11:2–23 (emphasis added)): 3 A computer program product for use with a computer system, the computer system executing a first process and operatively 4 connectable to a second process and a server over a computer network, the computer program product comprising: 5 a computer usable medium having program code embodied 6 in the medium, the program code comprising: 7 program code for transmitting to the server a network protocol address received by the 8 first process following connection to the computer network; 9 program code for transmitting, to the server, a query 10 as to whether the second process is connected to the computer network; 11 program code for receiving a network protocol 12 address of the second process from the server, when the second process is 13 connected to the computer network; and 14 program code, responsive to the network protocol address of the second process, for 15 establishing a point-to-point communication link between the first process and the second 16 process over the computer network. 17 In 2013 and 2014, the Board construed the “is connected to the computer network” 18 limitation during inter partes proceedings challenging the ’704 patent’s validity. Prior art 19 references in play during those proceedings included NetBIOS and WINS. The Board initially 20 found that the broadest reasonable construction of “is connected to the computer network” 21 involved “a processing unit that is ‘active and on-line at registration.’ ” Sipnet EU S.R.O. v. 22 Straight Path IP Grp., Inc., No. IPR2013-00246, 2014 WL 5144564, at *4 (P.T.A.B. Oct. 9, 23 2014). Based in part on that construction, the Board held that “(1) claims 1–7, 32, and 38–42 24 [were] anticipated by NetBIOS, (2) claims 1–7 and 32–42 [were] anticipated by WINS, and (3) 25 claims 33–37 [were] obvious over NetBIOS and WINS.” Id. at *15. 26 The Federal Circuit reversed. Straight Path argued before the appellate court that the 27 Board had erroneously construed the “is connected” limitation, insisting instead that its claimed 28 invention focused on “the determination of whether a process is currently connected to the 1 computer network, not whether it was previously connected,” since “having once registered 2 with a name server is no indication that a computer is actually connected to a computer network 3 or is on-line at the time a particular communication is sought.” That is, the crux of the 4 invention, according to Straight Path, was a “temporal focus on the process’s on-line status at 5 the time the desired communication is sought” — i.e., “at the very instant in time when the first 6 process queries whether the second process is available” (Case No. 16-3463, Dkt. No. 125-9 at 7 12 (bold in original), 23, 43). During oral argument in Sipnet, Attorney James Wodarski (then- 8 counsel for Straight Path) drove this point home by specifically arguing that “critical to the 704 9 system as opposed to the prior art is . . . when the process goes offline, it has to communicate 10 that to the server.1 The server is obliged and required to update that status by either deleting 11 that information of that process or flagging it as offline” (Case No. 16-3582, Dkt. No. 169 at 5). 12 In light of the foregoing, the Federal Circuit agreed with Straight Path and construed “is 13 connected to the computer network” as “is connected to the computer network at the time that 14 the query is transmitted to the server.” Straight Path IP Grp., Inc. v. Sipnet EU S.R.O., 806 15 F.3d 1356, 1363 (Fed. Cir. 2015); see also id. at 1366 n.2. 16 In May 2016, the Board applied this construction and upheld the validity of the 17 challenged claims on remand. See LG Elecs., Inc. v. Straight Path IP Grp., Inc., Nos. IPR2015- 18 00196, IPR2015-00198, IPR2015-00209, 2016 WL 2640549, at *5–6, 10–11 (P.T.A.B. May 9, 19 2016). On appeal, Attorney Wodarski emphasized once again during oral argument that the 20 claimed invention “has to track whether you are continuing to stay on line. We either have to 21 — there has to be some mechanism in the system to flag you as off line. . . . The issue in 22 SIPNET and the issue that controls here is that the claim plainly requires that it track that online 23 status so that it can [make] the determination at the time that the query is transmitted to the 24 server” (see Case No. 16-3582, Dkt. No.

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Bluebook (online)
Straight Path IP Group, Inc. v. Cisco Systems, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/straight-path-ip-group-inc-v-cisco-systems-inc-cand-2019.