Twitter, Inc. v. Voip-Pal.com, Inc.

District Court, N.D. California·Decided November 2, 2021·No. 3:21-cv-02769·Unknown

Opinion

8 UNITED STATES DISTRICT COURT

9 NORTHERN DISTRICT OF CALIFORNIA 10 SAN JOSE DIVISION 11

12 TWITTER, INC., Case No. 21-CV-02769-LHK

13 Plaintiff, ORDER DENYING MOTION TO DISMISS 14 v. Re: Dkt. No. 25 15 VOIP-PAL.COM, INC., 16 Defendant. 17 18 Plaintiff Twitter, Inc. (“Twitter”) brings the instant case against Defendant VoIP-Pal.com, 19 Inc. (“Defendant”) seeking a declaratory judgment that Twitter’s products do not infringe U.S. 20 Patent No. 9,935,872 (“the ’872 patent”). ECF No. 1 (“Compl.”). Defendant moves to dismiss 21 the instant case for lack of subject matter jurisdiction, lack of personal jurisdiction, and improper 22 venue. ECF No. 25. Having considered the parties’ submissions, the relevant law, and the record 23 in this case, the Court DENIES Defendant’s motion to dismiss. 24 I. BACKGROUND 25 Over the past five years, Defendant has litigated numerous cases involving a family of 26 patents that relate to methods and systems for communicating over an internet protocol (“IP”) 27 network. See VoIP-Pal.Com, Inc. v. Apple Inc., 375 F. Supp. 3d 1110, 1118 (N.D. Cal. 2019). 1 Defendant has asserted at least eight patents in this family against various telecommunications and 2 internet companies, including Twitter. In turn, several companies, including Twitter, have filed 3 actions against Defendant seeking declaratory judgments that those companies’ products do not 4 infringe Defendant’s IP network patents and that those patents are invalid. 5 The ’872 patent is part of the same patent family. Accordingly, the instant case is the most 6 recent dispute between the parties about whether Twitter has infringed one of Defendant’s IP 7 network patents. Below, the Court describes in turn: (1) the parties; (2) the ’872 patent and 8 Defendant’s patent family; (3) the previous cases involving Defendant’s patent family; and (4) the 9 procedural history of the instant case. 10 A. The Parties 11 Twitter is a Delaware corporation with its principal place of business in San Francisco, 12 California. Compl. ¶ 14. Twitter “operates a global Internet platform for public self-expression 13 and conversation in real time.” Id. ¶ 15. “Twitter uses and sells messaging services using 14 messaging application software and/or equipment, servers and/or gateways that route messages to 15 computing devices such as smartphones, tablet computers, and personal computers.” Twitter, Inc. 16 v. VoIP-Pal.Com, Inc., No. 20-CV-02397-LHK, 2021 WL 3861446, at *1 (N.D. Cal. Aug. 30, 17 2021) (internal quotation omitted). 18 Defendant is a Nevada corporation with its principal place of business in Waco, Texas. 19 Compl. ¶ 16. Defendants own a family of patents related to communications over IP networks. 20 See VoIP-Pal.Com, 375 F. Supp. 3d at 1118. 21 B. The ’872 Patent and Defendant’s Patent Family 22 The ’872 patent is titled “Producing Routing Messages for Voice Over IP 23 Communications.” The ’872 patent describes and claims “methods and apparatus[es] for routing 24 and billing” communications over an IP network. See ’872 patent, col. 1:20–29; see, e.g., id., col. 25 37:28–38:10 (claiming a “method for routing a communication in a communication system 26 between an Internet-connected first participant device associated with a first participant and an 27 Internet-connected second participant device associated with a second participant”). The 1 application for the ’872 patent was filed on October 11, 2017, and the ’872 patent issued on April 2 3, 2018. 3 The ’872 patent is directly related to at least seven other patents that Defendant owns. 4 Specifically, the ’872 patent issued from a continuation of U.S. Patent Application No. 15/396,344 5 (“the ’344 application”), which is now U.S. Patent No. 9,813,330 (“the ’330 patent”). U.S. Patent 6 Nos. 9,948,549 (“the ’549 patent”) and 9,826,002 (“the ’002 patent”) also issued from 7 continuations of the ’344 application. In turn, the ’344 application was a continuation of the 8 application that became U.S. Patent No. 9,537,762 (“the ’762 patent”), which issued from a 9 continuation of the application that became U.S. Patent No. 9,179,005 (“the ’005 patent”), which 10 issued from a continuation of the application that became U.S. Patent No. 8,542,815 (“the ’815 11 patent”). Finally, the ’872 patent is the parent of U.S. Patent No. 10,218,606 (“the ’606 patent”). 12 Thus, these eight patents have the same title, identical figures, nearly identical 13 specifications, and similar claims. 14 C. Previous Related Cases 15 1. The 2016 Cases Involving the ’815 and ’005 Patents 16 In 2016, Defendant filed four actions in the District of Nevada asserting that Twitter, 17 Apple Inc. (“Apple”), AT&T Corp. (“AT&T”), and Verizon Wireless Services, LLC (“Verizon) 18 infringed claims of the ’815 and ’005 patents. See VoIP-Pal.Com, 375 F. Supp. 3d at 1121–22. 19 Because Apple filed petitions for inter partes reviews challenging the patentability of the asserted 20 claims, the District of Nevada stayed all four cases. Id. After the Patent Trial and Appeal Board 21 (“PTAB”) of the U.S. Patent and Trademark Office (“PTO”) rejected Apple’s challenges, the 22 District of Nevada lifted the stays. Id. 23 On February 28, 2018, Twitter moved to transfer Defendant’s action against Twitter to the 24 Northern District of California. VoIP-Pal.Com, Inc. v. Twitter, Inc., Case No. 16-CV-02338, 2018 25 WL 3543031, at *1 (D. Nev. July 23, 2018). On July 23, 2018, the District of Nevada granted 26 Twitter’s motion and transferred the case. Id. 27 In October 2018, Defendant stipulated to transfer its actions against Apple, AT&T, and 1 Verizon to the Northern District of California as well. VoIP-Pal.Com, 375 F. Supp. 3d at 1121. 2 As a result, all four cases were transferred and assigned to this Court. 3 In November 2018, this Court entered an order consolidating all four cases. Id. at 1122. 4 On March 25, 2019, this Court granted Twitter, Apple, AT&T, and Verizon’s consolidated 5 motion to dismiss all four cases. Id. at 1117. In a 45-page order, the Court concluded that the 6 asserted claims of the ’815 and ’005 patents were unpatentable under 35 U.S.C. § 101. Id. at 7 1138, 1144. 8 On March 16, 2020, the Federal Circuit affirmed this Court’s decision. VoIP-Pal.Com, 9 Inc. v. Apple, Inc., 798 F. App’x 644, 645 (Fed. Cir. 2020). 10 On April 8, 2020, Defendant issued a press release which stated that Defendant was 11 “undeterred in [its] fight to assert [its] intellectual property rights” and that Defendant “remain[ed] 12 firm in [its] resolve to achieve monetization for [its] shareholders.” See Compl. ¶ 4; ECF No. 1-4 13 at 2–3. 14 On April 15, 2020, Defendant filed a petition with the Federal Circuit requesting panel or 15 en banc rehearing of its appeal. VoIP-Pal.Com, Inc. v. Twitter, Case No. 19-1808, ECF No. 89 16 (Fed. Cir. May 18, 2020). On May 18, 2020, the Federal Circuit denied Defendant’s petition. Id., 17 ECF No. 99. 18 2. The 2018 Cases Involving the ’762, ’330, ’002, and ’569 Patents 19 In 2018, Defendant filed two actions in the District of Nevada asserting that Apple and 20 Amazon.Com, Inc. (“Amazon”) had infringed claims of the ’762, ’330, ’002, and ’549 patents. 21 See VoIP-Pal.Com, Inc. v. Apple Inc., 411 F. Supp. 3d 926, 934 (N.D. Cal. 2019). After both 22 cases were transferred and assigned to this Court, this Court consolidated the two cases. Id. 23 On November 1, 2019, this Court granted Apple and Amazon’s consolidated motion to 24 dismiss both cases. Id. at 930. In a 68-page order, the Court concluded that the asserted claims of 25 the ’762, ’330, ’002, and ’549 patents were unpatentable under 35 U.S.C. § 101. Id. at 941. 26 On November 3, 2020, the Federal Circuit affirmed this Court’s decision. VoIP-Pal.Com, 27 Inc. v.

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