TrueBeginnings, LLC v. Spark Network Services, Inc.

631 F. Supp. 2d 849, 2009 U.S. Dist. LEXIS 57302, 2009 WL 1924766
CourtDistrict Court, N.D. Texas
DecidedJuly 2, 2009
Docket3-07-CV-1986-M
StatusPublished
Cited by2 cases

This text of 631 F. Supp. 2d 849 (TrueBeginnings, LLC v. Spark Network Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TrueBeginnings, LLC v. Spark Network Services, Inc., 631 F. Supp. 2d 849, 2009 U.S. Dist. LEXIS 57302, 2009 WL 1924766 (N.D. Tex. 2009).

Opinion

ORDER ACCEPTING FINDINGS AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE

BARBARA M.G. LYNN, District Judge.

After making a de novo review of the pleadings, the files and records in this case, the relevant case law, the Findings and Recommendation of the United States Magistrate Judge dated March 13, 2009, and the Plaintiffs Objections filed April 2, 2009,-the Court finds that the Findings and Recommendation of the Magistrate Judge are correct and they are hereby ACCEPTED as the Findings and Recommendation of the Court. The Plaintiffs request to supplement the record with respect to damages is DENIED.

IT IS THEREFORE ORDERED that the Findings and Recommendation of the United States Magistrate Judge are ACCEPTED. The Plaintiffs Motion for Summary Judgment [Docket Entry #61] is DENIED, and the Defendants’ Motion for Partial Summary Judgment [Docket Entry # 59] is GRANTED. Counts I and II of the Plaintiffs Second Amended Complaint shall remain stayed, pending re-examination of the '467 Patent by the U.S. Patent and Trademark Office.

FINDINGS AND RECOMMENDATION OF THE UNITED STATES MAGISTRATE JUDGE

JEFF KAPLAN, United States Magistrate Judge.

Plaintiff TrueBeginnings, L.L.C. (“True”) and Defendants Spark Network Services, Inc. (“Spark”) and Niro, Scavone, Haller & Niro, Ltd. (“NSHN”) have filed cross-motions for partial summary judgment in this civil action arising out of the alleged unauthorized use of plaintiffs website by NSHN. For the reasons stated herein, defendants’ motion should be granted and plaintiffs motion should be denied.

I.

Plaintiff owns an online relationship and dating service operated through its website, http://vnvw.true.com (“True.com”). (See Plf. MSJ App. at 23, ¶ 2). Spark is the owner by assignment of U.S. Patent No. 6,272,467 B1 (“the '467 Patent”), entitled “System for Data Collection and Matching Compatible Profiles.” (See id. at 83-103). NSHN is a Chicago law firm that represents Spark in the licensing and enforcement of the '467 Patent. (See Plf. MSJ Resp. App. at 26-27).

On or about February 1, 2007, a user identified as “df220” accessed the True, com website from an IP address assigned to NSHN. (See Plf. MSJ App. at 46-47). The user registered an account in the name of “Daniel R. Ferri,” and provided a date of birth of March 24, 1984. (Id.). It appears that Ferri again accessed the True.com website from the NSHN IP address on March 21, 2007. (Id.). This time, Ferri identified himself as “Paul K. Vickrey,” but provided the same date of birth of March 24, 1984. (Id.). Ferri is a paralegal employed by NSHN. (See id. at 81). Vickrey is one of the NSHN attorneys representing Spark in this litigation. (Id.). On November 2, 2007, another NSHN employee, Jason Hicks, registered his own account with True.com under the screen name “jhixx24.” (Id. at 46-47, 81). After gaining access to the website and accepting the Terms of Use, Hicks took screenshots 1 of his computer monitor as *852 part of an investigation to determine whether the “True Compatibility Index” infringes the *467 Patent. (See id. at 25, ¶¶ 13-14 & 27-33; Plf. MSJ Resp. App. at 26-27; Def. Reply Br. at 1-2).

In a letter dated November 14, 2007, Raymond P. Niro, Jr., an NSHN attorney, notified plaintiff that the True.com website infringed at least two claims of the '467 Patent. (See Plf. MSJ Resp. App. at 26-27; see also Plf. Sec. Am. Compl. at 3-4, ¶ 8). Attached to the letter were a series of charts comparing the patent claims to screenshots of the website. (See Plf. MSJ Resp. App. at 28-37). The letter advised that Spark had filed a patent infringement action against three other internet dating services — Yahoo, eHarmony, and Match, com — in Illinois federal court, and threatened an “expensive legal confrontation” with plaintiff unless the parties were able to resolve their differences. (See id. at 27). Less than two weeks later, on November 27, 2007, plaintiff filed the instant action against Spark in Texas federal court seeking a declaratory judgment of non-infringement and invalidity as to the '467 Patent. Spark countered by joining plaintiff as a defendant in the Illinois litigation. Plaintiff responded to this “tit-for-tat” by amending its complaint in the Texas lawsuit to include claims against both Spark and NSHN for breach of contract, negligent misrepresentation, violations of federal and Texas computer protection statutes, common law trespass, and declaratory relief. (See Plf. Sec. Am. Compl. at 6-10, ¶¶ 28-63). The gravamen of these non-patent claims is that NSHN, acting on behalf of Spark, violated the Terms of Use by accessing the True.com website for the purpose of investigating whether plaintiff infringed the '467 Patent. (See id. at 4, ¶ 11).

The non-patent claims are before the court on cross-motions for partial summary judgment. 2 Although the parties move for summary judgment on different grounds, the court has identified three broad issues from the arguments presented: (1) whether NSHN and its client, Spark, breached the Terms of Use by accessing plaintiffs website for the purpose of conducting a pre-suit investigation into possible infringing activity; (2) whether the Terms of Use insulate plaintiff from liability for infringing the '467 Patent and prevent Spark from suing plaintiff for patent infringement in Illinois; and (3) whether plaintiff has sustained any damages resulting from the alleged unauthorized use of its website. The issues have been briefed and argued by the parties, and the motions are ripe for determination.

II.

Summary judgment is proper when “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.CivP. 56(c). The substantive law determines which facts are material. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 2509-10, 91 L.Ed.2d 202 (1986). Where, as here, a case is presented by way of cross-motions for summary judgment, each movant has the burden of producing evidence to support its motion. A movant who bears the burden of proof at trial must establish “beyond peradventure all of the essential elements of the claim or defense to warrant judgment in his favor.” Fontenot v. Upjohn Co., 780 F.2d 1190, 1194 (5th Cir.1986) (emphasis in original). A party seeking summary judgment who does not *853 have the burden of proof at trial need only point to the absence of a genuine fact issue. See Duffy v. Leading Edge Products, Inc., 44 F.3d 308

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631 F. Supp. 2d 849, 2009 U.S. Dist. LEXIS 57302, 2009 WL 1924766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/truebeginnings-llc-v-spark-network-services-inc-txnd-2009.