Visto Corp. v. Sproqit Technologies, Inc.

413 F. Supp. 2d 1073, 2006 U.S. Dist. LEXIS 35467, 2006 WL 294802
CourtDistrict Court, N.D. California
DecidedFebruary 7, 2006
DocketC 04-0651 EMC
StatusPublished
Cited by3 cases

This text of 413 F. Supp. 2d 1073 (Visto Corp. v. Sproqit Technologies, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Visto Corp. v. Sproqit Technologies, Inc., 413 F. Supp. 2d 1073, 2006 U.S. Dist. LEXIS 35467, 2006 WL 294802 (N.D. Cal. 2006).

Opinion

ORDER DENYING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION AND OVERRULING PLAINTIFF’S OBJECTIONS

(Docket Nos. 97, 124)

CHEN, United States Magistrate Judge.

Plaintiff Visto Corporation (“Visto”) has filed a motion for a preliminary injunction. Having considered the parties’ briefs and accompanying submissions, as well as the oral argument of counsel and good cause appearing therefor, the Court hereby DENIES the motion.

I. FACTUAL AND PROCEDURAL BACKGROUND

Visto owns several patents, including U.S. Patent No. 6,085,192 (the 192 patent) which concerns technology that allows wireless communications between firewall-protected local area networks (“LAN”s) and remote clients, such as smart phones, outside the firewall. Visto originally filed suit against Sproqit Technologies (“Spro-qit”) on February 15, 2004, alleging infringement of the 192 patent. On March 9, 2004, Sproqit filed a motion to dismiss or, in the alternative, stay or transfer based on litigation taking place in the District of Minnesota. See Docket No. 5. After the District of Minnesota transferred the case to this District, this Court denied Sproqit’s motion to dismiss as moot on November 12, 2004. See Docket No. 38.

Subsequently, Sproqit filed its answer to Visto’s complaint and asserted several counterclaims seeking declaratory relief with respect to Visto’s 192 and ’708 patents. The Court dismissed Sproqit’s state law claims for tortious interference and defamation without prejudice. See Docket Nos. 41, 72. On February 16, 2005, Spro-qit filed a motion to stay this case pending reexamination of the 192 patent, which the Court granted on April 20, 2005. See Docket Nos. 60, 82. Prior to entry of the stay, Visto amended its complaint pursuant to stipulation of the parties and order of the Court. See Docket No. 81.

On November 7, 2005, Sproqit filed a motion seeking a further stay pending a reexamination of the ’708 patent, which the Court denied on November 16, 2005. On November 22, 2005, the PTO issued the certificate of reexamination on the 192 patent, lifting the stay. See Khaliq Decl., Ex. C. Visto filed the instant motion for preliminary injunction on November 22, 2005.

For the purposes of this Motion for Preliminary Injunction, Visto limits its infringement claims to accuse the Sproqit Personal Edition and Sproqit Workgroup Edition (the “Accused Products”) of infringing Claim 10 of the 192 Patent.

II. DISCUSSION

A. Legal Standard

As the moving party, Visto is entitled to a preliminary injunction if it succeeds in showing the following four factors: (1) a reasonable likelihood of success on the merits; (2) irreparable harm if an *1077 injunction is not granted; (3) a balance of hardships tipping in its favor; and (4) the injunction’s favorable impact on the public interest. Amazon.com, Inc. v. Barnesandnoble.com, Inc., 239 F.3d 1343, 1350 (Fed.Cir.2001) (vacating grant of preliminary-injunction). 1 “ ‘These factors, taken individually, are not dispositive; rather the district court must weigh and measure each factor against the other factors and against the form and magnitude of the relief requested.’” Id. (citing Hybritech, Inc. v. Abbott Labs., 849 F.2d 1446, 1451 (Fed.Cir.1988)). “The burden is always on the movant to show entitlement to a preliminary injunction.” Reebok International Ltd. v. J. Baker, Inc., 32 F.3d 1552, 1555 (Fed.Cir.1994).

The Federal Circuit has cautioned that “a preliminary injunction is a drastic and extraordinary remedy that is not to be routinely granted.” Intel Corp. v. ULSI System Technology, 995 F.2d 1566, 1568 (Fed.Cir.1993) (vacating the grant of preliminary injunction). Visto cannot be granted a preliminary injunction unless “it establishes both of the first two factors, ie., likelihood of success on the merits and irreparable harm.” Amazon.com, 239 F.3d at 1350. “Irreparable harm is presumed when a clear showing of patent validity and infringement has been made.” Id.

B. Likelihood of Success

In order to demonstrate likelihood of success on the merits, Visto must show that in light of the presumptions and burdens that will inhere at trial on the merits, (1) it will likely prove that Sproqit infringes the patent, and (2) Visto’s infringement claim will likely withstand Sproqit’s challenges to the validity and enforceability of the patent. Id. On a motion for preliminary injunction, the presumption of validity under 35 U.S.C. § 282 2 does not shift the burden of proof; the movant carries the burden of establishing it will likely succeed on all disputed liability issues at trial. New England Braiding Co., Inc. v. A.W. Chesterton Co., 970 F.2d 878, 882 (Fed.Cir.1992) (affirming denial of preliminary injunction).

The Federal Circuit has held that the moving party must make a fairly robust showing. The moving party must demonstrate a “substantial likelihood of success” on the merits. Amazon.com, 239 F.3d at 1355-56 (emphasis added). If the opponent “raises a substantial question concerning either infringement or validity, i.e., asserts an infringement or invalidity defense that the patentee cannot prove ‘lacks substantial merit,’ the preliminary injunction should not issue.” Amazon.com, 239 F.3d at 1350-51. 3 For the *1078 reasons set forth below, the Court concludes that on the present record, Sproqit has raised substantial questions concerning infringement.

1. Infringement Analysis

An infringement analysis involves two steps: “the claim scope is first determined, and then the properly construed claim is compared with the accused device to determine whether all of the claim limitations are present either literally or by a substantial equivalent.” Amazon.com, 289 F.3d at 1351.

a. Claim Construction

The first step is to determine the meaning and scope of each claim. The properly construed claim is then compared with the accused device to determine whether all of the claim limitations are present. Id.

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413 F. Supp. 2d 1073, 2006 U.S. Dist. LEXIS 35467, 2006 WL 294802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/visto-corp-v-sproqit-technologies-inc-cand-2006.