SynKloud Technologies, LLC v. Microsoft Corporation

CourtDistrict Court, D. Delaware
DecidedSeptember 29, 2020
Docket1:19-cv-01360
StatusUnknown

This text of SynKloud Technologies, LLC v. Microsoft Corporation (SynKloud Technologies, LLC v. Microsoft Corporation) 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
SynKloud Technologies, LLC v. Microsoft Corporation, (D. Del. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE

SYNKLOUD TECHNOLOGIES, LLC,

Plaintiff,

v. Civil Action No. 19-1360-RGA

HP INC.,

Defendant.

MEMORANDUM OPINION

David S. Eagle, Sean M. Brennecke, KLEHR HARRISON HARVEY BRANZBURG LLP, Wilmington, DE; Daniel S. Carlineo, Nelson M. Kee, CARLINEO KEE, PLLC, Washington, D.C., Attorneys for Plaintiff.

Kelly E. Farnan, Travis S. Hunter, RICHARDS, LAYTON & FINGER, P.A., Wilmington, DE; Richard A. Cederoth, SIDLEY AUSTIN LLP, Chicago, IL; Ching-Lee Fukuda, Ketan V. Patel, SIDLEY AUSTIN LLP, New York, NY, Attorneys for Defendant.

September 28, 2020 /s/ Richard G. Andrews ANDREWS, UNITED STATES DISTRICT JUDGE:

Before me is Defendant’s motion to dismiss for failure to state a claim. (D.I. 17). I have considered the parties’ briefing. (D.I. 18, 21, 24). Because I find that some of the asserted claims of the patents at issue do not satisfy the test for eligibility under § 101 of the Patent Act, I will grant Defendant’s motion in part and deny it in part. I. BACKGROUND Plaintiff filed this patent infringement lawsuit asserting infringement of “at least claim 1” of U.S. Patent Nos. 9,098,526 (“the ’526 patent”) and 10,015,254 (“the ’254 patent”) on July 22, 2019. (D.I. 1). Plaintiffs submitted a First Amended Complaint on November 12, 2019 further asserting claims 1 of U.S. Patent Nos. 8,694,590 (“the ’590 patent”) and 7,879,225 (“the ’225 patent”).1 (D.I. 15). Defendant alleges that the Asserted Patents are invalid for claiming ineligible subject matter under 35 U.S.C. § 101. (D.I. 18 at 1). Specifically, Defendant alleges that the ’526 and ’254 patents are directed at the abstract idea of storing and retrieving data from a remote location, that the ’590 patent is directed to receiving, reformatting and delivering a message and that the ’225 patent is directed to communicating instructions to a remote recipient in the same manner as if to a local recipient. (Id.). Defendant also contends that the claims of the Asserted Patents contain no inventive concept, merely implementing abstract ideas using common

computer components and functionality that were routine or conventional. (Id. at 2). II. LEGAL STANDARDS A. Rule 12(b)(6)

1 The four patents are exhibits 1, 3, 6, and 8 at D.I. 15-1. Defendant moves to dismiss the pending action pursuant to Rule 12(b)(6), which permits a party to seek dismissal of a complaint for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). According to Defendant, Plaintiff’s complaint fails to state a claim because the asserted claims of the patents-in-suit are ineligible for patent

protection under 35 U.S.C. § 101. Patent eligibility under 35 U.S.C. § 101 is a threshold test. Bilski v. Kappos, 561 U.S. 593, 602 (2010). Therefore, “patent eligibility can be determined at the Rule 12(b)(6) stage … when there are no factual allegations that, taken as true, prevent resolving the eligibility question as a matter of law.” Aatrix Software, Inc. v. Green Shades Software, Inc., 882 F.3d 1121, 1125 (Fed. Cir. 2018). When considering a Rule 12(b)(6) motion to dismiss, the court must accept as true all factual allegations in the complaint and view them in the light most favorable to the plaintiff. Umland v. Planco Fin. Servs., 542 F.3d 59, 64 (3d Cir. 2008). Dismissal under Rule 12(b)(6) is only appropriate if the complaint does not contain “sufficient factual matter, accepted as true,

to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)); see also Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir. 2009). However, “a court need not accept as true allegations that contradict matters properly subject to judicial notice or by exhibit, such as the claims and patent specification.” Secured Mail Solns. LLC v. Universal Wilde, Inc., 873 F.3d 905, 913 (Fed. Cir. 2017) (cleaned up). B. Patent-Eligible Subject Matter Section 101 of the Patent Act defines patent-eligible subject matter. It provides:

“Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.” 35 U.S.C. § 101. The Supreme Court recognizes three categories of subject matter that are not eligible for patents—laws of nature, natural phenomena, and abstract ideas. Alice Corp. v. CLS Bank Int’l, 573 U.S. 208, 216 (2014). The purpose of these exceptions is to protect the “basic tools of scientific and technological

work.” Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 86 (2012). “[A] process is not unpatentable simply because it contains a law of nature or a mathematical algorithm,” as “an application of a law of nature or mathematical formula to a known structure or process may well be deserving of patent protection.” Id. at 71 (internal quotation marks and emphasis omitted). In order “to transform an unpatentable law of nature into a patent-eligible application of such a law, one must do more than simply state the law of nature while adding the words ‘apply it.’” Id. at 72 (emphasis omitted). In Alice, the Supreme Court reaffirmed the framework laid out in Mayo “for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts.” 573 U.S. at 217. First, the court

must determine whether the claims are drawn to a patent-ineligible concept. Id. If the answer is yes, the court must look to “the elements of the claim both individually and as an ‘ordered combination’” to see if there is an “‘inventive concept’—i.e., an element or combination of elements that is ‘sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.’” Id. (alteration in original). “A claim that recites an abstract idea must include ‘additional features’ to ensure that the [claim] is more than a drafting effort designed to monopolize the [abstract idea].” Id. at 221. Further, “the prohibition against patenting abstract ideas cannot be circumvented by attempting to limit the use of [the idea] to a particular technological environment.” Id. at 222 (quoting Bilski, 561 U.S. at 610-11). Thus, “the mere recitation of a generic computer cannot transform a patent-ineligible abstract idea into a patent-eligible invention.” Alice, 573 U.S. at 222. Patentability under 35 U.S.C. § 101 is a threshold legal issue. Bilski, 561 U.S. at 602. Accordingly, the § 101 inquiry is properly raised at the pleadings stage if it is apparent from the

face of the patent that the asserted claims are not directed to eligible subject matter. See Cleveland Clinic Found. v. True Health Diagnostics LLC, 859 F.3d 1352, 1360 (Fed. Cir. 2017), cert. denied, 138 S. Ct. 2621 (2018).

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SynKloud Technologies, LLC v. Microsoft Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/synkloud-technologies-llc-v-microsoft-corporation-ded-2020.