Whitserve LLC v. Donuts Inc.
Opinion
Colm F. Connolly, UNITED STATES DISTRICT JUDGE
In February 2018, plaintiff WhitServe LLC ("WhitServe") brought separate patent infringement actions against Donuts Inc., along with its subsidiary Name.com, Inc., and eNom, LLC (collectively, the "Defendants"). C.A. No. 18-193 at D.I. 1; C.A. No. 18-194 at D.I. 1. WhitServe alleges that Defendants infringe U.S. Patent Nos. 5,895,468 ("the #468 patent") and 6,182,078 ("the #078 patent") which are titled, respectively, "System Automating Delivery of Professional Services" and "System for Delivering Professional Services Over the Internet." The Court has jurisdiction pursuant to
The complaints allege that Defendants infringe claims 1 and 24 of the #468 patent and claims 1, 3, 9, and 11 of the #078 patent. D.I. 1 at ¶¶ 22, 31. Only claims 3 and 11 of the #078 patent are dependent. D.I. 1-2. All the remaining claims are independent.
As the patents-in-suit explain, attorneys and other professionals have to perform many functions that "involve a series of deadlines" and these functions cannot be completed without client authorization or action. D.I. 1-1 at 1:11-16. Before the invention disclosed in the patents-in-suit, professionals relied on a docketing system, "which typically contains a database of deadlines," that "notifies the professional of each upcoming deadline a preset time period before the deadline by printout, attached terminal, or networked computer."
The patents-in-suit purport to solve these problems by disclosing "an automated system for obtaining authorizations from clients prior to deadlines which will improve the speed, efficiency, and reliability of performing professional services for clients."
Claim 1 of the #468 patent, which may be considered representative of all claims in the #468 patent family, recites:2
A device for automatically delivering professional services to a client comprising:
a computer;
a database containing a plurality of client reminders, each of the client reminders comprising a date field having a value attributed thereto;
software executing on said computer for automatically querying said database by the values attributed to each client reminder date field to retrieve a client reminder;
software executing on said computer for automatically generating a client response form from the retrieved client reminder;
a communication link between said computer and the Internet;
*575software executing on said computer for automatically transmitting the client response form to the client through said communication link; and
software executing on said computer for automatically receiving a reply to the response form from the client through said communication link.
D.I. 1-1 at 6:54-7:8.
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Colm F. Connolly, UNITED STATES DISTRICT JUDGE
In February 2018, plaintiff WhitServe LLC ("WhitServe") brought separate patent infringement actions against Donuts Inc., along with its subsidiary Name.com, Inc., and eNom, LLC (collectively, the "Defendants"). C.A. No. 18-193 at D.I. 1; C.A. No. 18-194 at D.I. 1. WhitServe alleges that Defendants infringe U.S. Patent Nos. 5,895,468 ("the #468 patent") and 6,182,078 ("the #078 patent") which are titled, respectively, "System Automating Delivery of Professional Services" and "System for Delivering Professional Services Over the Internet." The Court has jurisdiction pursuant to
The complaints allege that Defendants infringe claims 1 and 24 of the #468 patent and claims 1, 3, 9, and 11 of the #078 patent. D.I. 1 at ¶¶ 22, 31. Only claims 3 and 11 of the #078 patent are dependent. D.I. 1-2. All the remaining claims are independent.
As the patents-in-suit explain, attorneys and other professionals have to perform many functions that "involve a series of deadlines" and these functions cannot be completed without client authorization or action. D.I. 1-1 at 1:11-16. Before the invention disclosed in the patents-in-suit, professionals relied on a docketing system, "which typically contains a database of deadlines," that "notifies the professional of each upcoming deadline a preset time period before the deadline by printout, attached terminal, or networked computer."
The patents-in-suit purport to solve these problems by disclosing "an automated system for obtaining authorizations from clients prior to deadlines which will improve the speed, efficiency, and reliability of performing professional services for clients."
Claim 1 of the #468 patent, which may be considered representative of all claims in the #468 patent family, recites:2
A device for automatically delivering professional services to a client comprising:
a computer;
a database containing a plurality of client reminders, each of the client reminders comprising a date field having a value attributed thereto;
software executing on said computer for automatically querying said database by the values attributed to each client reminder date field to retrieve a client reminder;
software executing on said computer for automatically generating a client response form from the retrieved client reminder;
a communication link between said computer and the Internet;
*575software executing on said computer for automatically transmitting the client response form to the client through said communication link; and
software executing on said computer for automatically receiving a reply to the response form from the client through said communication link.
D.I. 1-1 at 6:54-7:8.
The other independent claims asserted against Defendants are, with a few caveats, essentially identical to claim 1 of the #468. The only meaningful difference between claim 1 of the #468 patent and claim 1 of #078 patent is that claim 1 of the #078 patent does not include the last limitation of claim 1 of the #468 patent regarding "automatically receiving a reply to the response form from the client." D.I. 1-2 at 8:4-22. Claim 24 of the #468 patent and claim 9 of the #078 patent are, in all meaningful respects, the same as claim 1 of the #468 patent, except directed towards a "method" instead of a "device." D.I. 1-1 at 10:8-24; D.I. 1-2 at 9:13-10:9. Finally, dependent claim 3 in the #078 patent narrows the device of claim 1 by limiting the form of the device to a webpage. D.I. 1-2 at 8:24. Similarly, claim 11 of #078 patent narrows the method in claim 9 by requiring that the step for generating a client response form comprises "generating of a webpage." D.I. 1-2 at 10:12-13.
II. STANDARD OF REVIEW
Under Rule 12(b)(6), a party may move to dismiss a complaint for "failure to state a claim upon which relief can be granted." Fed. R. Civ. P. 12(b)(6). To survive the motion to dismiss, the complaint need not contain "detailed factual allegations," but it must contain sufficient factual matter to "state a claim to relief that is plausible on its face." Ashcroft v. Iqbal ,
It is well-settled that courts may determine patent eligibility under § 101 at the Rule 12(b)(6) stage. SAP Am., Inc. v. InvestPic, LLC ,
III. DISCUSSION
Defendants have moved to dismiss the complaint on the grounds that the #468 and #078 patents are directed to an abstract *576idea and, therefore, ineligible for patent protection under
A. Patent Eligibility under Alice
Section 101 of the Patent Act defines patent-eligible subject matter. It provides: "Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title."
There are three judicially-created limitations on the literal words of § 101. The Supreme Court has long held that laws of nature, natural phenomena, and abstract ideas are not patentable subject matter. Alice Corp. Pty. v. CLS Bank Int'l ,
"[A]n invention is not rendered ineligible for patent [protection] simply because it involves an abstract concept[.]" Id. at 217,
In Alice , the Supreme Court made clear that the framework laid out in Mayo for determining if a patent claims eligible subject matter involves two steps. The Court must first determine whether the patent's claims are drawn to a patent-ineligible concept-i.e., are the claims directed to a law of nature, natural phenomenon, or abstract idea?
*5771. Step One
Defendants contend that the #468 and #078 patents are directed to the abstract idea of preparing, sending, and receiving responses to due-date reminders for clients of professional-services clients. I agree. There is no "definitive rule" as to what constitutes an "abstract idea" under § 101. Enfish, LLC v. Microsoft Corp. ,
To start, the asserted claims recite in broad terms searching a database for client due dates, generating a client reminder regarding the upcoming due dates, sending the reminder to the client, and receiving the client's response. As the Federal Circuit explained, claims that recite receiving, storing, and selectively retrieving information to generate reports-as the claims here do-"describe[ ] little more than the automation of a 'method of organizing human activity.' " In re Salwan ,
The asserted claims can also be read as reciting use of generic computer technology to automate a well-known business practice. The written description acknowledges that the claimed steps were already performed in the professional world, where "oftentimes an attorney must send a client a reminder, obtain authorization or possibly executed documents from *578the client and then take some action based on the client's response." D.I. 1-1 at 1:12-16. The asserted claims seek to "automatically deliver[ ]" these professional services with the aid of "a computer," "a database," "software," and a "communication link" through the Internet, but do not explain how such automation is implemented. It is readily apparent that the asserted claims provide for no more than generic computer components, because the patents provide no technical details or limitations with respect to the components. At most, a few of the components, such as the "database" and "software," are described in terms of their routine functions. The database must "contain[ ] a plurality of client reminders." D.I. 1-1 at 2:37-38. The software is capable of "querying the database," "generating a client response form," "transmitting the client response form" through use of the Internet, and preferably "receiving a reply." Id. at 2:40-47. Storing data is a "generic computer function[ ]." In re TLI Comm'ns LLC Patent Litig. ,
The Federal Circuit has repeatedly held that claims reciting automation of a conventional business practice using generic computer technology are directed to an abstract idea. See Return Mail, Inc. v. United States Postal Serv. ,
WhitServe argues that the claims are far from abstract, because they recite a specific structure with physical components. D.I. 18 at 10. It is well-settled, however, that "mere recitation of concrete, tangible components is insufficient to confer patent eligibility to an otherwise abstract idea." In re TLI Comm'ns LLC Patent Litig. ,
Indeed, courts have repeatedly found that the specific components recited here-"a computer," "a database," "software," and a "communication link" through the Internet-were not enough to render the claims nonabstract. See Alice ,
WhitServe further argues that the claims are not abstract, because the "client response form" and "client reminder date field" are specific and particularized to each client. D.I. 18 at 10-11. But the Federal Circuit has repeatedly held that "tailoring of content based on information about the user...is an abstract idea." Evolutionary Intelligence LLC v. Sprint Nextel Corp. ,
Finally, the claims are not directed to an improvement in computer functionality. According to the written description, the problem facing the inventor was the time-consuming and tedious nature of tracking, generating, sending, and receiving responses to client reminders about upcoming due dates. The written description states that the claimed invention seeks to "improve[ ] the speed, efficiency, and reliability of performing services for clients" by combining into one device the previously disparate methods of performing these tasks. But "mere automation of manual processes using generic computers does not constitute a patentable improvement in computer technology." Credit Acceptance Corp. v. Westlake Servs. ,
2. Step Two
In step two of Alice , the elements of the claim are considered, both individually and as an ordered combination, to assess whether the additional elements transform the nature of the claim into a patent-eligible application of the abstract idea. Content Extraction & Transmission LLC v. Wells Fargo Bank ,
Here, the claims elements, considered both individually and as an ordered combination, recite nothing more than "generic computer components employed in a customary manner," which is insufficient to transform an abstract idea into a patent-eligible *580invention. Audatex N. Am., Inc. v. Mitchell Int'l, Inc. ,
WhitServe argues that the invention allows for "faster and simpler communication." D.I. 18 at 16-17. But "claiming the improved speed or efficiency inherent with applying the abstract idea on a computer" does not provide a sufficient inventive concept. Capital One ,
WhitServe also contends that dependent claim 3 of #078 patent adds an inventive concept by requiring that the form of the invention be a web page. D.I. 18 at 16-17. This additional limitation, however, merely limits the claims to a particular technological environment, which does not confer patent eligibility on an abstract concept. See Alice ,
B. Patent Eligibility under Berkheimer and Aatrix
WhitServe also seeks to bring this case within the scope of the Federal Circuit's decisions in Berkheimer and Aatrix , which generally held that factual issues precluded a determination that the claims were patent ineligible. I find, however, that neither case is applicable here. In Berkheimer , the Federal Circuit affirmed in part and reversed in part a district court's grant of summary judgment on patent ineligibility grounds. Berkheimer v. HP Inc. ,
In Aatrix , the district court granted a motion to dismiss on § 101 grounds and denied leave to amend. Aatrix Software, Inc. v. Green Shades Software, Inc. ,
Here, Berkheimer and Aatrix are inapplicable because neither the patent nor the complaint alleges any improvement in technology. Rather, the patent describes improving the speed and efficiency with which humans deliver professional services by automating that practice through use of generic computer components performing routine functions.
C. Prior Court and USPTO Decisions
In opposing Defendants' motion, WhitServe suggests that this Court should decline to consider the patent eligibility of the asserted claims under § 101, because the issue has already been addressed by the USPTO and two other courts. D.I. 18 at 3-5. There are several problems, however, with WhitServe's assertion.
First, all of the USPTO proceedings WhitServe cites occurred before the Supreme Court's decision in Alice and, therefore, were not based on the correct legal standard. See id. at 3; D.I. 1-1; D.I. 1-2.
Second, the Federal Circuit's decision in WhitServe LLC v. Computer Packages, Inc. was likewise issued before Alice .
Third, the district court in WhitServe v. GoDaddy.com, Inc. , No. 3:11-cv-948-JCH (D. Conn.) never substantively addressed the § 101 issue. Pre- Alice , the court denied GoDaddy's motion for summary judgment without an opinion and without providing any comment on the § 101 issue. C.A. No. 3:11-948 at D.I. 304. Post- Alice , the court denied leave to file a renewed motion for summary judgment.
IV. CONCLUSION
For the foregoing reasons, Defendants' motions to dismiss (C.A. No. 18-193 at D.I. 12; C.A. No. 18-194 at D.I. 10) are granted. An appropriate order will be entered.
Footnotes
390 F. Supp. 3d 571 (Whitserve LLC v. Donuts Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.