Sunoco Partners Marketing & Terminals L.P. v. Powder Springs Logistics, LLC

CourtDistrict Court, D. Delaware
DecidedJanuary 22, 2020
Docket1:17-cv-01390
StatusUnknown

This text of Sunoco Partners Marketing & Terminals L.P. v. Powder Springs Logistics, LLC (Sunoco Partners Marketing & Terminals L.P. v. Powder Springs Logistics, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunoco Partners Marketing & Terminals L.P. v. Powder Springs Logistics, LLC, (D. Del. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE SUNOCO PARTNERS MARKETING & _ ) . TERMINALS L.P., ) Plaintiff, V. Civil Action No. 17-1390-LPS-CJB POWDER SPRINGS LOGISTICS, LLC and MAGELLAN MIDSTREAM ) PARTNERS, L.P., ) Defendants. REPORT AND RECOMMENDATION . Pending before the Court in this patent infringement case is Defendants Powder Springs Logistics, LLC (“Powder Springs”) and Magellan Midstream Partners, L.P.’s “Magellan,” and □

collectively with Powder Springs, “Defendants”) Motion for Summary Judgment of Non- Infringement and Invalidity (the “Motion”). (D.I. 381) Defendants make a number of different arguments in support of this Motion; this Report and Recommendation will address the Motion only as it relates to Defendants’ argument that certain asserted claims are directed to patent- ineligible subject matter pursuant to 35 U.S.C. § 101 (“Section 101”).! For the reasons that

follow, the Court recommends that the Motion be GRANTED in that respect. I. | BACKGROUND Plaintiff Sunoco Partners Marketing & Terminals L.P. (‘‘Plaintiff’) alleges that Defendants infringe five of Plaintiff's patents. Those patents are United States Patent Nos. 9,494,948 (the “948 patent”), 9,606,548 (the “'548 patent”), 9,207,686 (the “686 patent”), 6,679,302 (the “'302 patent”) and 7,032,629 (the “'629 patent”) (collectively, “the asserted

1 The Court will address the remaining portions of the Motion in subsequent Reports and Recommendations.

patents” or “the patents-in-suit”). The patents-in-suit mine to — and methods for the automated blending of butane and gasoline. The Court hereby incorporates its summary of the technology at issue and certain of the patents-in-suit set out in the Court’s January 8, 2018 Report and Recommendation, (D.I. 68 at 1- 8); further information about these subjects relevant to the pending Motion will be set out in Section III below. The Court also incorporates its summary of the procedural background of this matter, as set out in the Court’s August 7, 2019 Report and Recommendation, (D.I. 322 2-3), and its January 16, 2020 Report and Recommendation, (D.I. 447 at 2). Defendants filed the instant Motion on October 11, 2019, (D.I. 381), and briefing was completed on November 1, 2019, (D.I. 414). The Court heard oral argument on the Motion (as well as other summary judgment and Daubert motions) on November 13, 2019. (D.L. 441

(hereinafter, “Tr.”)) I. STANDARD OF REVIEW This portion of the instant Motion for Summary Judgment asserts that certain asserted claims of the '302 patent are directed to patent-ineligible subject matter. The Court has recently set out the relevant legal standards for review of a summary judgment motion brought on Section 101 grounds in S.LSV.EL. Societa Italiana per lo Sviluppo Dell’Elettronica S.p.A v. Rhapsody Int’l Inc., Civil Action No. 18-69-MN-CJB, Civil Action No. 18-70-MN-CJB, 2019 WL 1102683, at *2-4 (D. Del. Mar. 8, 2019). The Court hereby incorporates its discussion of these legal standards in S..SV.EL. and will follow those standards herein. To the extent consideration of this portion of Defendants’ Motion necessitates discussion of other, related legal principles, the Court will set out those principles in Section III below.

Il. DISCUSSION Defendants previously filed two motions to dismiss in this case, which challenged 75 claims from the five asserted patents on the grounds that all of those claims were patent ineligible pursuant to Alice Corp. Pty. v. CLS Bank Int’l, 573 U.S.'208 (2014). (D.L. 27; D.I. 138; see also D.I. 354 at 3)? The Court considered Defendants’ motions together and recommended that they be denied because, in the Court’s view, the motions were premised on an overly-broad recitation of the abstract idea at Alice’s step one: “data gathering and processing.” (See D.I. 354)? Defendants’ current Motion targets only three of those previously-challenged claims—claims 23, 24, and 304 of the '302 patent—as patent ineligible. (D.I. 382 at 32) Below, the Court will first consider claims 23 and 24 together, and then will turn to claim 30. A. Claims 23 and 24 Defendants first challenge claims 23 and 24. Those claims read as follows: 23. A method for simplifying record keeping requirements for butane use at a petroleum products tank farm comprising: a) drawing a gasoline stream from a tank of gasoline; b) drawing a butane stream from a tank of butane; c) blending the butane stream and the gasoline stream to form a blend; d) monitoring the volatility of the gasoline stream and the butane - stream; 2 Those challenged claims are claims 17-33 of the '629 patent, claims 18-35 of the '302 patent, claims 1-16 of the '548 patent, claims 1-17 of the '686 patent, and claims 1-7 of the '948 patent. (D.I. 354 at 3) 3 Defendants filed Objections to the Report and Recommendation, (D.I. 368), to which Plaintiff responded, (D.I. 386). The Objections are currently pending. 4 Because claim 30 depends from claim 27, claim 27 will also be discussed below. .

e) monitoring the rate at which the butane stream is blended with the gasoline stream; f) inputting the monitored volatilities and monitored blend rate to an information processing unit; and g) generating a report that tabulates the monitored volatilities and monitored blend rate, or a summary thereof. 24, The method of claim 23, wherein the report is used for complying with regulatory requirements. (302 patent, col. 15:31-48) 1. Alice’s Step One At step one, Defendants assert that claims 23 and 24 are directed to the abstract idea of “gathering and monitoring blending data and using it to generate reports with a computer.” (D.I. 382 at 35; see also DI. 414 at 19 (same))° Plaintiff does not necessarily disagree that this is an abstract idea; instead, it argues that at step one, the claims are directed to more than this idea. (D.I. 405 at 37-38) For the following reasons, the Court agrees with Defendants that the claims are directed to the proffered abstract idea at issue. First, simply by looking at the language of the claims themselves, it is apparent that claims 23 and 24 demonstrate a different, data-analytics-based focus, as compared to other claims of the '302 patent, which instead focus much more significantly on the physical components of systems and methods used to actually blend butane with gasoline. (Compare '302 patent, col. 13:12-24 (claim 1), with id., col. 15:31-46 (claim 23)) This modified focus is evident

5 The “blending data” at issue here is a reference to data regarding the blending of butane with gasoline. Thus, in this way, Defendants have now incorporated reference to the concept of “blending of butane and gasoline” into their proffered abstract idea (whereas they had □ failed to do so when filing their earlier motions to dismiss). (D.J. 354 at 22)

from the preamble of claim 23, which states that the claim is to a “method for simplifying record keeping requirements[,]” (id., col. 15:31), rather than, for example, a “system for blending gasoline and butane[,]” (id., col. 13:12). See Two-Way Media Ltd. v. Comcast Cable Commc’ns, LLC, 874 F.3d 1329, 1340 (Fed. Cir. 2017) (noting that it was not error for the district court to cite “to the preamble in its review of whether the claims are directed to an abstract idea” where the court’s inquiry was “centered on determining the ‘focus’ of the claims”).° To be sure, the method relates to blending butane and gasoline, ('302 patent, col.

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Sunoco Partners Marketing & Terminals L.P. v. Powder Springs Logistics, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunoco-partners-marketing-terminals-lp-v-powder-springs-logistics-llc-ded-2020.