Velocity Patent LLC v. Chrysler Group, LLC

District Court, N.D. Illinois·Decided September 4, 2018·No. 1:13-cv-08419·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION VELOCITY PATENT LLC, ) ) Plaintiff, ) No. 13 C 8419 ) vs. ) Judge Thomas M. Durkin ) FCA US LLC, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER On August 7, 2018, the Court entered a Memorandum Opinion and Order granting in part and denying in part FCA’s motion for summary judgment regarding infringement and invalidity and denying Velocity’s motion regarding non-infringing alternatives. R. 442. On August 23, 2018, Velocity filed a motion asking the Court to reconsider a decision it made in that order regarding the construction of Claim 28 of the ‘781 Patent. R. 479. Familiarity with the Court’s previous ruling is assumed. For the following reasons, the Court denies Velocity’s motion. STANDARD This Court has “inherent authority” under Rule 54(b) to reconsider its interlocutory orders. Janusz v. City of Chi., 78 F. Supp. 3d 782, 787 (N.D. Ill. 2015); Fed. R. Civ. P. 54(b) (Non-final orders “may be revised at any time before entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities.”). But motions for reconsideration “serve a limited function: to correct manifest errors of law or fact or to present newly discovered evidence.” Caisse Nationale de Credit Agricole v. CBI Indus., 90 F.3d 1264, 1269 (7th Cir. 1996). They are proper where the court “has patently misunderstood a party, or has made a decision outside the adversarial issues presented to the Court by the parties, or has made an error not of reasoning

but of apprehension.” Bank of Waunakee v. Rochester Cheese Sales, Inc., 906 F.2d 1185, 1191 (7th Cir. 1990). Motions for reconsideration are not, however, “appropriate vehicle[s] for relitigating arguments that the Court previously rejected or for arguing issues that could have been raised during the consideration of the motion presently under reconsideration.” Caine v. Burge, 897 F. Supp. 2d 714, 717 (N.D. Ill. 2012) (citing Caisse, 90 F.3d at 1270).

ANALYSIS On summary judgment, in relevant part, FCA asked the Court to construe Claim 28 in the same way as other claims in the ‘781 Patent that contained the same claim term. The Court relied on a previous claim construction order entered by Judge Darrah in ruling that Claim 28 should be construed with a means-plus-function limitation. In its motion to reconsider, Velocity asks the Court to reconsider its summary judgment decision as to Claim 28. But Velocity’s filings make clear that it

is really asking this Court to reconsider the claim construction order entered by Judge Darrah over two years ago in September 2016.1 Any motion to reconsider the claim construction order of September 21, 2016 should have been presented before Judge Darrah or before the summary judgment briefing and decision. It is inappropriate now. In any event, the Court finds that even

1 The case was reassigned to this Court on February 27, 2017. R. 129. if it were to reconsider the earlier claim construction order or its ruling on Claim 28, the result would be the same—the “a processor subsystem . . . said processor subsystem determining” language in the patent requires construction under 35

U.S.C. § 112, ¶ 6.2 Velocity’s motion to reconsider is therefore denied. See, e.g., In re Watts, 354 F.3d 1362, 1369 (Fed. Cir. 2004) (on appeal, “to prevail the appellant must not only show the existence of error, but also show that the error was in fact harmful because it affected the decision below”). I. Velocity Has Waived Reconsideration of Claim Construction

FCA filed its claim construction brief on December 23, 2015, R. 75, and Velocity responded to that brief, R. 85. It does not appear Velocity filed its own affirmative claim construction brief. The parties’ briefs (including a surreply from Velocity, R. 97- 1), alone comprised over 100 pages and included affidavits and declarations by experts, deposition testimony, and other exhibits. The Court conducted a Markman hearing on April 12, 2016. See Dkt. 132 of Velocity Patent LLC v. Mercedes-Benz USA, LLC, et al., No. 1-13-cv-08413 (N.D. Ill. May 5, 2016) (transcript of April 12, 2016 Markman Hearing).

The Court’s claim construction order was entered on September 21, 2016. It explained that, when deciding claim construction, courts first look at the intrinsic

2 The America Invents Act amended and renamed § 112, ¶ 6. It is now § 112(f). Pub. L. No. 112-29, § 4(c), 125 Stat. 284, 296 (2011). However, the amended version of § 112 applies only to patent applications “filed on or after” September 16, 2012. See AIA § 4(e), 125 Stat. at 297. Because the application that led to the ‘781 Patent was filed before that date, the Court refers to the previous version (§ 112, ¶ 6). See Zeroclick, LLC v. Apple Inc., 891 F.3d 1003, 1006 (Fed. Cir. 2018). evidence in the record, including the patent itself, the claims, and the prosecution history. The Court may also consider extrinsic evidence such as expert testimony, dictionaries, and learned treatises. However, extrinsic evidence is to be used for the

Court’s understanding of the patent, not for the purpose of varying or contradicting the terms of the claims. R. 114 at 3. The Court construed the phrase, “a processor subsystem . . . said processor subsystem determining” contained in Claims 1, 7, 13, 17, 60, 69, and 76,3 as requiring a means-plus-function construction. The Court explained that when a claim term lacks the word “means,” § 112, ¶ 6 is presumed to not apply unless “the challenger demonstrates that the claim term fails to ‘recite

sufficiently definite structure’ or else recites ‘function without reciting sufficient structure for performing that function.’” Id. at 11 (citing Williamson v. Citrix Online, LLC, 792 F.3d 1339, 1349 (Fed. Cir. 2015)). The Court noted that an individual of ordinary skill in the art would understand that “processor” encompasses a microprocessor or microcontroller, which are structural terms, and thus the patent recited a sufficiently definite structure. Id. at 12. The Court found that the presumption against application of § 112, ¶ 6 may

also be overcome if the claim recites “function without reciting sufficient structure for

3 Claim 28 was not included in this list. The parties dispute whether this was intentional or an oversight. FCA represented that Claim 28 was inadvertently omitted from the list of claims that included the same language, R. 350 at 10, which Velocity disputed, R. 370 at 10. FCA’s representation is almost certainly true, but the Court finds that dispute irrelevant, because the claims would have been construed the same. Had the parties raised this issue at the time of the original claim construction order, it would have been a simple matter to resolve. Fault lies with both parties for that delay. performing that function.” Id. After analyzing the patent and the claims, the Court found that the patent provided for several different functions “that may be generally described as receiving information from the sensors, exchanging data with the

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