Uniloc Luxembourg v. eClinicalWorks, LLC

991 F. Supp. 2d 1097, 2013 WL 6925804, 2013 U.S. Dist. LEXIS 183407
CourtDistrict Court, C.D. California
DecidedAugust 29, 2013
DocketCase No. CV13-3244-MWF (PLAx)
StatusPublished

This text of 991 F. Supp. 2d 1097 (Uniloc Luxembourg v. eClinicalWorks, LLC) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uniloc Luxembourg v. eClinicalWorks, LLC, 991 F. Supp. 2d 1097, 2013 WL 6925804, 2013 U.S. Dist. LEXIS 183407 (C.D. Cal. 2013).

Opinion

ORDER GRANTING DEFENDANTS’ MOTIONS FOR SUMMARY JUDGMENT OF NON-INFRINGEMENT [35, 37] AND DENYING AS MOOT MOTION FOR SUMMARY JUDGMENT OF INVALIDITY [36]

MICHAEL W. FITZGERALD, District Judge.

This patent action is before the Court on three Motions for Summary Judgment filed by Defendants eClinicalWorks, LLC and Pulse Systems, Inc. (Docket Nos. 35, 36, 37). Pulse Systems and eClinicalWorks separately move for summary judgment of non-infringement (Docket Nos. 35, 37) and jointly move for summary judgment of invalidity of the subject patent (U.S. Patent No. 5,682,526 or the “'526 Patent”). (Docket No. 36). The Court held a hearing on the Motions on August 20, 2013, at with counsel for all parties appeared and offered argument. Having considered the parties’ submissions and arguments, the Court GRANTS Defendants’ Motions for Summary Judgment of Non-Infringement and DENIES AS MOOT Defendants’ Motion for Summary Judgment of Invalidity.

In deciding these Motions under Rule 56, the Court applies Anderson, Celotex, and their Ninth Circuit progeny. Fed. R.Civ.P. 56(a); Anderson v. Liberty Lob[1099]*1099by, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Celotex Corp. v. Catrett, 477 U.S. 317, 323-24, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); In re Oracle Corp. Securities Litig., 627 F.3d 376, 387 (9th Cir.2010) (“Where the non-moving party bears the burden of proof at trial, the moving party need only prove that there is an absence of evidence to support the non-moving party’s case.”). The non-moving party may not simply rely on allegations in its pleadings but must identify specific facts raising a genuine dispute that will be material at trial. Fed.R.Civ.P. 56(c).

I. MOTIONS FOR SUMMARY JUDGMENT OF NON-INFRINGEMENT [35, 37]

Plaintiffs allege three claims for relief against Defendants for direct patent infringement, indirect patent infringement, and contributory infringement. (Docket No. 1). The Court previously issued a Claim Construction Order in a related case after briefing and argument by all parties. (CV 11-10122-MWF (PLAx), Docket No. 96). For jurisdictional reasons, the related case was dismissed, re-filed as two cases, and consolidated as the present action (CV 11-10122-MWF (PLAx), Docket No. 134), but the Court’s Claim Construction Order remains binding on the parties. (Docket No. 41-15).

“User”: Defendants expend significant energy trying to re-litigate the Court’s previous construction of the term “user” as it appears in the '526 Patent. At the Markman hearing, Defendants sought to define “user” as “a health care provider at the point of care.” (Docket No. 41-15 at 13). The Court found that “Defendants’ proposal [was] too narrow and the term needs no construction.” (Id.). In spite of this ruling, Defendants seek once again to restrict the term “user” to individuals operating at a point of care. Because Defendants essentially attempt to disrupt the Court’s prior order, the proper means of bringing this issue to the Court’s attention would have been a motion for reconsideration.

Motions for reconsideration may only be brought on the grounds of “(a) a material difference in fact or law from that presented to the Court before such decision that in the exercise of reasonable diligence could not have been known to the party moving for reconsideration at the time of such decision, or (b) the emergence of new material facts or a change of law occurring after the time of such decision, or (c) a manifest showing of a failure to consider material facts presented to the Court before such decision.” Local Rule 7-18. Defendants refer in passing to new facts but do not attempt to meet the high standard embodied in Local Rule 7-18.

With the disputed claims fully construed in a separate proceeding, the Court need only address the legal arguments of the parties.

Direct Infringement: Defendants contend that Plaintiffs lack evidence to show that they infringed the '526 Patent either directly or indirectly. Defendants, entities that build and sell health information management software, argue that Plaintiffs do not have evidence that they or any of their clients performed each step of the '526 Patent, a method patent, in sequential order as is required for a finding of infringement of this particular patent.

At the hearing, Plaintiffs’ counsel narrowed the scope of the Court’s inquiry considerably by clarifying that Plaintiffs only intend to pursue their allegations that Defendants directly infringed Claim 1 of the '526 Patent.

Direct Infringement by Manufacture or Sale: Defendants’ production and [1100]*1100sale of software cannot, in and of itself, support a claim for direct patent infringement because the '526 Patent claims methods. See Harris Corp. v. Ericsson, Inc., 417 F.3d 1241, 1256 (Fed.Cir.2005) (Method patent cannot be directly infringed “by one who makes or sells the components of the system.”). Finding direct infringement of a method patent requires that the purported infringer perform each step of the patented method. See Ricoh Co., Ltd. v. Quanta Computer, Inc., 550 F.3d 1325, 1333 (Fed.Cir.2008) (“Infringement of a method claim occurs when a party performs all of the steps of the process.”) (quotation and citation omitted); see also Lucent Techs., Inc. v. Gateway, Inc., 580 F.3d 1301, 1317 (Fed.Cir.2009) (A “finding of infringement can rest on as little as one instance of the claimed method being performed during the pertinent time period.”).

It is well-settled law in the Federal Circuit that selling infringing software does not constitute performance of a method. Harris, 417 F.3d at 1256; see also Aristocrat Techs. Australia Pty Ltd. v. Int’l Game Tech., 709 F.3d 1348, 1362 (Fed.Cir.2013) (“To establish liability for direct infringement of a claimed method or process under 35 U.S.C. § 271(a), a patentee must prove that each and every step of the method or process was performed.”). Thus, Plaintiffs’ direct infringement claim cannot be premised solely on Defendants’ manufacture or sale of accused software. Plaintiffs’ counsel did not dispute this conclusion at the hearing on the Motions.

Direct Infringement by Demonstration or Testing: As a result, the only proffered basis for finding that Defendants directly infringed the '526 Patent would be a showing that Defendants actually performed the sequential steps of a method taught by the '526 Patent in their own use of the accused software.

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Bluebook (online)
991 F. Supp. 2d 1097, 2013 WL 6925804, 2013 U.S. Dist. LEXIS 183407, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uniloc-luxembourg-v-eclinicalworks-llc-cacd-2013.