Zkey Investments, LLC v. Facebook Inc.

225 F. Supp. 3d 1147, 2016 WL 7046593, 2016 U.S. Dist. LEXIS 166906
CourtDistrict Court, C.D. California
DecidedDecember 2, 2016
DocketCV No. 16-00782-RSWL-KS
StatusPublished
Cited by5 cases

This text of 225 F. Supp. 3d 1147 (Zkey Investments, LLC v. Facebook Inc.) 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
Zkey Investments, LLC v. Facebook Inc., 225 F. Supp. 3d 1147, 2016 WL 7046593, 2016 U.S. Dist. LEXIS 166906 (C.D. Cal. 2016).

Opinion

[1149]*1149ORDER Re: DEFENDANT’S MOTION FOR SUMMARY JUDGMENT [53]

HON. RONALD S.W. LEW, Senior U.S. District Judge

I. INTRODUCTION

Currently before the Court is Defendant Facebook, Inc.’s (“Defendant”) Motion for Summary Judgment (“Mot.”) [53] against Plaintiff Zkey Investments, LLC (“Plaintiff’). The Court, having reviewed all papers and arguments submitted pertaining to this Motion, NOW FINDS AND RULES AS FOLLOWS: Defendant’s Motion for Summary Judgment [53] is GRANTED.

II. BACKGROUND

A. Factual Background

Plaintiffs action alleges that Defendant’s online networking services infringe on United States Patent No. 6,820,204 (“ ’204 Patent”) in violation of 35 U.S.C. § 271.

Plaintiff is a limited liability company existing under the laws of Delaware with its principal place of business in New York. Compl. 1:5-7, ECF No. 1. Plaintiff owns the ’204 Patent, entitled “System and Method for Selective Information Exchange” and has the right to sue and recover damages for infringement thereof. Id. at 4:2-6. The ’204 Patent’s abstract describes the invention as follows:

A system and method for providing users with granular control over arbitrary information that allows for selective, real-time information sharing in a communications network such as the Internet is provided. In a network including a plurality of network devices operated by a plurality of users, a real-time information exchange system for sharing user profile information between respective users includes a database management system connected to the network. The database management system, which may be distributed across the network, stores the user profile information for a plurality of registered users of the information exchange system. The user profile information includes a plurality of data elements, each data element having an associated one of the plurality of registered users. Each data element has an associated group of users to whom access to the data element has been granted, and users not included in the associated group of users are denied access to the data element. Each registered user may selectively control the granting and denying of access to each of its associated data elements by other respective users, on an element-by-element, and user-by-user basis. Further, each registered user may dynamically create its own data fields.

Id. at Ex. 1.

Defendant is a Delaware corporation with its headquarters in Menlo Park, California. Id. at 1:8-9. Defendant also maintains California offices in Los Angeles and Woodland Hills. Id. at 1:10-11. Defendant provides online networking services (“Fa-cebook Networking Services”), mobile applications, plug-ins, and other tools in the United States. Id. at 2:27-3:2. Facebook Networking Services are provided by a multitude of Facebook-controlled servers, including, but not limited to, web servers and database servers. Id. at 3:2-4. Face-book’s “mission is to give people the power to share and make the world more open and connected.” Id. at 3:7-8. In order to achieve this, various user profile information can be stored, including “Work and Education,” “Places You’ve Lived,” “Contact and Basic Info,” “Family and Relationships,” “Details About You,” and “Life Events.” |d. at 3:8-11. Users are allowed to limit access to this information. Id. at 3:11-13. For example, users can limit access to the “Address” portion of their [1150]*1150“Contact and Basic Info” user profile to the “Public,” “Friends,” “Close Friends,” “Family,” or “Specific People or • Lists,” including the ability to deny particular users access. Id. at 3:13-17.

Plaintiff alleges that Defendant’s manufacturing and uses of the system that implements Facebook Networking Services infringes numerous claims of the ’204 Patent, including at least claims 1-2. Id. at 4:7-11. Claim 1 of the ’204 Patent recites:

In a network including a plurality of network devices operated by a plurality of users, a real-time information exchange system for sharing user profile information between respective users: a database management system connected to the network and storing the user profile information for a plurality of registered users of the information exchange system, the user profile information including a plurality of data elements, each data element having associated one of the plurality of registered users; wherein each data element has an associated subset of users to whom access to the data element has been granted; and wherein users not included in the associated subset of users are denied access to the data element.

Mace Decl., Ex. 1. Claim 2 of the ’204 Patent recites:

The information exchanging system of claim 1 further including:
a profile management application, executing on the information exchange system, the profile management application providing each respective user with facilities to selectively control the granting and denying of access to each of its associated data elements by other respective users.

Id.

B. Procedural Background

On February 4, 2016, Plaintiff filed a Complaint in the United States District Court, Central District of California. In the Complaint, Plaintiff brings a claim of patent infringement seeking injunctive relief and damages in violation of 35 U.S.C. § 271. ECF No. 1. On June 3, 2016, Defendant filed an Answer to Plaintiffs Complaint. ECF No. 42.

On August 30, 2016, Defendant filed a Motion for Summary Judgment of Invalidity under 35 U.S.C. § 101. ECF No. 53. On August 30, Defendant also filed a Statement of Uncontroverted Facts ánd Conclusions of Law. ECF No. 54. On September 27, 2016, Plaintiff filed an Opposition. ECF No. 57. On September 27, 2016, Plaintiff also filed a Statement of Genuine Disputes. ECF No. 59. On October 11, 2016, Defendant filed a Reply. ECF No. 60. On October 24, 2016, Plaintiff filed an Objection to Defendant’s New Evidence First Submitted in Defendant’s Reply to the Motion for Summary Judgment. ECF No. 64. On October 25, 2016, Defendant filed a Response to Plaintiffs Objection. ECF No. 65. On November 2, 2016, Plaintiff filed a Notice of Supplemental Authority in Opposition to Defendant’s Motion. ECF No, 66.

III. DISCUSSION

A. Legal Standard

1. Summary Judgment Standard

Federal Rule of Civil Procedure 56 states that a “court shall grant summary judgment” when the movant “shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A fact is “material” for purposes of summary judgment if it might affect the outcome of the suit, and a “genuine issue” exists if the evidence is such that a reasonable fact-finder could return a verdict for [1151]*1151the non-moving party.

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225 F. Supp. 3d 1147, 2016 WL 7046593, 2016 U.S. Dist. LEXIS 166906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zkey-investments-llc-v-facebook-inc-cacd-2016.