HENRY COKE MORGAN, Jr., Senior District Judge.
This matter comes before the Court on various post-trial motions submitted by Plaintiff VS Technologies, LLC ("Plaintiff). Plaintiff has filed a Motion for Judgment as a Matter of Law, Doc. 157; Motion for a New Trial, Doc. 159; and Motion to Amend Judgment, Doc. 161. For the reasons stated herein, the Court
On January 18, 2011, Plaintiff filed its complaint alleging infringement of United States Patent No. 6,408,309 (the "`309 patent"). Doc. 1. Plaintiff served its patent infringement complaint on Defendant Twitter, Inc. ("Defendant") on February 8, 2011. On March 17, 2011, Defendant filed its answer and affirmative defenses. Doc. 15.
On September 15, 2011, the Court conducted a
A six-day jury trial began on October 24, 2011. At the conclusion of the trial, the jury found that Twitter had not infringed any of the asserted claims of the `309 patent and that the claims of the `309 patent were invalid as anticipated, obvious and abstract. Doc. 153. Following the trial, Plaintiff filed a timely motion for judgment as a matter of law, motion for a new trial, and motion to amend judgment. Docs. 157, 159, 161. Defendant filed its response in opposition to Plaintiffs motions on December 5, 2011. Doc. 163. A hearing on Plaintiffs various post-trial motions was held on April 3, 2012.
The United States Patent and Trademark Office issued Patent No. 6,408,309 (the "`309 patent"), entitled "Method and System for Creating an Interactive Virtual Community of Famous People," on June 18, 2002. At trial, Plaintiff asserted that Twitter's Browse Interests feature infringed claims 1 and 5-10 (the "Asserted Claims") of the `309 Patent. For its part, Defendant maintained that its Browse Interests feature did not infringe the `309 Patent and that the Asserted Claims were invalid due to anticipation, obviousness, and abstractness. Specifically, Defendant claimed that the following four prior art references rendered the `309 Patent invalid as anticipated and obvious: (1) Who's Who Online, (2) Martindale-Hubbell, (3) the University of Virginia website, and (4) Geocities.
At the close of Defendant's case, Plaintiff moved for a directed verdict, pursuant to Federal Rule of Civil Procedure 50(a), on the issues of abstractness, anticipation, and obviousness. Trial Transcript ("Trial Tr.") at 838-40. The Court denied the motion as it related to anticipation and obviousness, and reserved ruling on the issue of abstractness until the time at which the Court dealt with jury instructions.
After several hours of deliberation, the jury returned a verdict on October 31, 2011, in Defendant's favor. Specifically, the jury concluded that the Asserted Claims were not infringed by Twitter, and the Asserted Claims were invalid as anticipated, obvious, and abstract. On November 7, 2011, the Court entered the judgment of non-infringement and invalidity, which states that "Twitter, Inc., has not infringed any of the asserted claims of the `309 Patent," and "the claims of the `309 patent are invalid as anticipated, obvious and abstract." Doc. 153.
Rule 50(b) of the Federal Rules of Civil Procedure allows a party to renew, within twenty-eight (28) days after the entry of judgment, a motion for judgment as a matter of law made pursuant to Rule 50(a) that was not granted by the Court. Fed. R. Civ. P. 50(b). Rule 50(a) explains that such a motion "must specify the judgment sought and the law and facts that entitle the movant to the judgment." Fed. R. Civ. P. 50(a)(2). The Court may grant such a motion if it finds "that a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on [the relevant] issue." Fed. R. Civ. P. 50(a)(1). The Court may not, however, "disturb the verdict where there was sufficient evidence for a reasonable jury to find in the non-movant's favor."
Plaintiff alternatively seeks a new trial pursuant to Rule 59(a) of the Federal Rules of Civil Procedure ("Rule 59"). Rule 59(a)(1)(A) allows the Court, on motion, to grant a new trial "after a jury trial, for any reason for which a new trial has heretofore been granted in an action at law in federal court." Fed. R. Civ. P. 59(a)(1)(A). A "decision on a motion for a new trial rests within the sound discretion of the trial court."
In the Fourth Circuit, on a motion for a new trial, it is the duty of the trial court to set aside the verdict and grant a new trial, if "(1) the verdict is against the clear weight of the evidence, or (2) is based upon evidence which is false, or (3) will result in a miscarriage of justice, even though there may be substantial evidence which would prevent the direction of a verdict."
Plaintiff asserts that the record does not contain legally sufficient evidence to support a finding that the `309 Patent is (1) invalid for lack of patentable subject matter, (2) anticipated by a proffered piece of prior art, and (3) obvious in view of the proffered prior art. Doc. 158 at 3-12. Plaintiff further contends that no reasonable jury could find Twitter does not infringe the `309 Patent. As such, Plaintiff requests judgment as a matter of law on these four issues. In the alternative, Plaintiff moves for a new trial because of the following assertions: (1) an improper jury instruction on abstractness created prejudicial error, (2) the jury's verdict is against the clear weight of the evidence, and (3) improper closing argument created prejudicial error.
Plaintiffs arguments are analyzed separately below.
Plaintiffs first argument concerns an instruction given to the jury regarding patentable subject matter under Section 101. The Court provided the following instruction to the jury:
Trial Tr. at 951:5-952:6. Plaintiff argues that the determination of whether the `309 Patent consists of patentable subject matter is a legal determination to be made by the Court and thus, was improperly submitted to the jury. Doc. 158 at 3. Plaintiff also claims that Defendant failed to provide any actual evidence in support of its assertions regarding abstractness.
In response, Defendant maintains that the question of patentable subject matter was properly submitted to the jury because such an inquiry, although a question of law, may turn on factual findings that are dispute. Doc. 164 at 19. Defendant argues that the jury decided the issue "in light of . . . Dr. Grimshaw's testimony that the asserted claims of the `309 patent, read literally, do not even require the use of a computer."
The disagreement between the parties centers on Plaintiff's argument that Section 101 is a question of law and thus, not a triable issue of fact for a jury. However, Plaintiff has failed to point to any Court of Appeals' decision saying that the judge must decide Section 101 issues.
In support of its argument, Plaintiff cites two Federal Circuit cases for the proposition that "whether a patent claim is directed to statutory subject matter is a question of law."
Further, the language of the cases cited by Plaintiff merely reaffirms the fact that the issue of validity is reviewable on appeal
Plaintiff next argues that Defendant failed to provide any actual evidence in support of its assertions regarding abstractness. Plaintiff focuses on the fact that there was no expert testimony explicitly stating that the `309 Patent is abstract. However, the test is not whether there was any expert testimony that the `309 Patent claimed an abstract idea. Rather, the test is whether there was enough evidence to provide the support necessary for a reasonable jury to conclude that the method claimed by the `309 Patent could be performed mentally. Defendant's invalidity expert, Dr. Andrew Grimshaw ("Grimshaw"), testified that the claims of the `309 Patent could be performed without the use of a computer.
Both parties' experts testified concerning their respective positions of what constitutes an interactive virtual community. Plaintiffs expert, Dr. Joseph, characterized the alleged pieces of prior art as online directories rather than interactive virtual communities in an attempt to distinguish them from the `309 Patent.
Based upon the experts' disparate characterizations of which systems provided individuals with the opportunity to interact with other individuals, a reasonable jury could conclude from the evidence presented at trial that the method claimed by the `309 Patent was not an interactive virtual community, as defined by the experts. As Dr. Grimshaw stated during trial, whether the `309 Patent requires the use of a computer depends on how one defines interact. Trial Tr. at 805. Based upon conflicting evidence at trial regarding whether the `309 Patent discloses the idea of allowing individuals to interact in real time, any reasonable jury could have reached the same verdict based upon the evidence presented regarding interactive virtual communities in order to determine whether a machine was involved in the process claimed by the `309 Patent. Further, Dr. Grimshaw specifically testified that a computer was not required to practice the invention.
Plaintiff asserts that it is entitled to judgment as matter of law that the `309 Patent is not anticipated by any of the four prior art references because (1) Defendant's prior art constitutes inadmissible hearsay, (2) Defendant's prior art does not constitute single publications as required by 35 U.S.C. § 102 because the collections of web pages were not all available on the same date,
As to the issue of whether Defendant's prior art constitutes inadmissible hearsay, the Court again rejects Plaintiffs argument. The issue at trial was whether the web pages disclosed the elements of the patent for purposes of anticipation. The web pages were introduced not for the purpose of explaining how each system worked, but rather for the purpose of establishing the existence of the necessary elements in order to prove anticipation.
Further, Plaintiffs argument that each of the four pieces of proffered prior art does not constitute a single publication as required by 35 U.S.C. § 102 must also be rejected. Plaintiffs objection during trial to the admissibility of the prior art on this basis focused on the assertion that Defendant could not prove that the `309 Patent was anticipated through use of the archived web pages because of varying dates of publication. Counsel did not object to the documents' admissibility as it related to the obviousness inquiry, which involves a determination of whether one of ordinary skill in the art would have selected and combined the prior art elements in the normal course of research and development to yield the claimed invention. Thus, Plaintiffs objection was solely related to the anticipation analysis. Counsel was free to make the argument to the jury that Defendant failed to meet its burden to prove anticipation and specifically, that a single reference teaches all of the elements of any asserted claim, because of the varying dates of publication. As the archived web pages all came from a single website, and Plaintiff was free to argue that the prior art web pages were not available on the same date, the Court did not err in admitting the web pages for the purpose of the anticipation analysis.
Plaintiffs last argument with respect to invalidity based on anticipation is that Dr. Grimshaw failed to complete an element-by-element analysis of the prior art references and that as a result, Defendant did not meet its burden of clear and convincing evidence to prove anticipation. Doc. 158 at 9. In response, Defendant uses Dr. Grimshaw's testimony with respect to Martindale-Hubbell as an example to show that he did, in fact, perform such an element-by-element analysis. Doc. 164 at 11-12.
In reviewing Dr. Grimshaw's testimony and specifically, the example provided by Defendant in its brief, it is clear that Dr. Grimshaw walked through each element of the asserted claims and explained at length how, in his opinion, each of the four pieces of prior art disclosed an interactive virtual community.
This cited testimony demonstrates that Dr. Grimshaw walked through each element of the asserted claims: claims 1 and 5-10. Further, Dr. Grimshaw performed a similarly detailed analysis with respect to the other three pieces of prior art.
With respect to obviousness, Plaintiff asserts that "sparse expert testimony" demonstrates that there is insufficient evidence from which a reasonable jury could conclude that the four pieces of prior art render the asserted claims of the `309 Patent obvious. Doc. 158 at 10. In response, Defendant contends that because the jury found that the prior art references disclosed every element of the asserted claims, no combination was required to support a finding of obviousness. Doc. 164 at 16.
As Dr. Grimshaw performed an element-by-element analysis of each of the four prior art references, this Court cannot conclude, as Plaintiff asserts, that Dr. Grimshaw's "lackluster analysis and conclusory statements are a far cry from that required of an obviousness determination." Doc. 158 at 11. Dr. Grimshaw discussed each element during the course of his direct examination and after doing so, further explained that he did not believe there was any step disclosed in the patent that was not already used in an interactive virtual community by the year 2000. Trial Tr. at 760:19-22. By the time Dr. Grimshaw offered this opinion, he had already performed a step-by-step analysis of each asserted claim. Thus, Plaintiff cannot successfully argue that "Dr. Grimshaw provided no testimony about any reference specific to an obviousness analysis." Doc. 158 at 11. Dr. Grimshaw had already provided his analysis in reference to each element and then provided his opinion regarding what a person of skill in the art knew by the year 2000 with respect to interactive virtual communities. Accordingly, the evidence was sufficient to support the verdict that was reached by the jury regarding obviousness, and any reasonable jury could have reached the same verdict.
Plaintiff asserts that no reasonable jury could find Defendant does not infringe the `309 Patent because (1) Dr. Joseph demonstrated that Defendant practices all elements of the asserted claims both in order and out of the order in which they appear in the `309 Patent and (2) Dr. Weaver's rebuttal testimony relied upon claim constructions that this Court specifically declined to adopt. Doc. 158 at 12-13.
As a preliminary matter, Defendant argues that Plaintiff has waived its right to challenge the jury's verdict of non-infringement because it never moved for judgment as a matter of law under Rule 50(a) on the issue of infringement. Doc. 164 at 3. Rather, Plaintiff moved for judgment as a matter of law only as to Defendant's invalidity defenses: anticipation, obviousness, and abstract idea. Defendant asserts that Plaintiffs failure to do so has resulted in a waiver of the right to challenge the jury's verdict on this issue.
For its part, Plaintiff acknowledges that it did not formally include infringement in its initial motion for judgment as a matter of law at the close of Defendant's case. However, Plaintiff contends that the "comments to recent amendments to Rule 50 make clear that technicalities can be put aside when the spirit of the rule — to put the non-moving party on notice of the moving [party's] claimed discrepancies in the evidentiary record and avoid surprise to the non-moving party — is still met." Doc. 165 at 7. Yet, Plaintiff's argument misses the mark, ignoring the fact that the Committee Notes to the Federal Rules of Civil Procedure state that "[b]ecause the Rule 50(b) motion is only a renewal of the preverdict motion, it can be granted only on grounds advanced in the preverdict motion." Committee Notes, 2006 Amendments. The comments to the 2006 Amendments merely state that Rule 50(b) was amended to "permit renewal of any Rule 50(a) motion for judgment as a matter of law, deleting the requirement that a motion be made at the close of all the evidence."
Even if Plaintiff did not waive its right to challenge the jury's verdict of non-infringement, Plaintiff has still failed to meet the high standard for obtaining judgment as a matter of law on this issue.
Plaintiffs first argument focuses on the assertion that the claims of the patent need not be performed in any specific order. Plaintiff argues that Dr. Alfred Weaver's
For its part, Defendant points out that Dr. Weaver's testimony was not limited to the conclusion that Defendant's feature did not infringe the patent because it did not perform the steps of Claim 1 in order. Doc. 164 at 6. For example, Dr. Weaver also testified that the "Browse Interests" feature "does not create a personal profile of the `selected member' because it is undisputed that [Defendant's] users are not `selected members' of the Browse Interests feature when they open their accounts and their profiles are created."
Plaintiffs second argument with respect to infringement centers on the assertion that Dr. Weaver's rebuttal testimony relied upon claim constructions that this Court specifically declined to adopt at the Markman hearing. Doc. 158 at 13. Specifically, Plaintiff asserts that the following testimony elicited from Dr. Weaver was inconsistent with the Court's claim construction: the `309 Patent requires "(1) biographical information to be
With respect to "obtaining," Defendant argues that Dr. Weaver's testimony was consistent with the Court's rejection of Defendant's proffered definition.
With respect to "create," Defendant asserts that Dr. Weaver's testimony was consistent with the Court's determination that "create" should be given its common, ordinary meaning. Plaintiffs main contention with respect to "create" is that Dr. Weaver's testimony conflicted with this Court's rejection of the narrow definition, "producing a personal profile for the first time." However, Dr. Weaver never testified that this was the meaning of "create," as found in the `309 Patent. In fact, when asked if he believed create to mean "only create for the first time," Dr. Weaver responded, "Well, no, that is probably too strict. But what I think it does not mean, copying information from one piece of computer memory to another, which is what Dr. Joseph had to do in order to meet the creation step." Trial Tr. at 562:4-7.
In this instance, Dr. Weaver did attempt to use a definition rejected by the Court, specifically that obtaining biographical information does not include transferring information already possessed by the accused infringer from one portion of computer memory to another. As a result, the Court held a sidebar conference and allowed Plaintiff to cross-examine Dr. Weaver on the fact that one of his reasons supporting non-infringement was based on a specific definition rejected by the Court. Trial Tr. at 586. However, Dr. Weaver's testimony did not violate this Court's claim construction order in any other respect and thus, as a whole, was not misleading to the degree necessary to support judgment as a matter of law.
The Court ruled in its claim construction order that both "create" and "obtaining" should be given their plain, ordinary meaning. The test is not how Plaintiff would interpret the plain and ordinary meaning of these terms. Rather, the test is whether there is sufficient evidence to support the jury's finding that Twitter does not "obtain biographical information" or "create a personal profile" of a selected member, "given the plain and ordinary meaning of that phrase in the context of the disputed claim."
In conclusion, Plaintiffs motion for judgment as a matter of law on infringement is
Plaintiff argues that it is entitled to a new trial because (1) the improper instruction on abstractness created prejudicial error, (2) the entire jury's verdict is against the weight of the evidence, and (3) improper closing argument created prejudicial error. Doc. 158 at 15-19. As to the issues of whether the instruction on abstractness created prejudicial error and whether the verdict is against the clear weight of the evidence, the above analysis regarding Plaintiffs motion for judgment as a matter of law is informative here. In short, the evidence as a whole was sufficient to support a finding of non-infringement and invalidity by abstractness, anticipation, and obviousness, and a reasonable jury could have reached its verdict based on the evidence presented. Thus, the jury's verdict was not against the clear weight of the evidence.
Plaintiffs last argument centers on defense counsel's statements during closing argument, which Plaintiff asserts were improper and highly prejudicial. Doc. 158 at 18. Specifically, Plaintiff contends that "Twitter's repeated unsupported accusations against Mr. Agarwal, telling the jury he was a liar, thief, and extortionist without any basis, and culminating with its baseless remarks at closing argument goes well beyond the bounds of allowable aggressive advocacy and crosses the line into the creation of unduly prejudicial error that warrants a new trial."
In response, Defendant asserts that Plaintiff waived its right to a new trial on this basis because of its failure to make any objections during closing argument. Defendant cites a Fourth Circuit case, in which the court explained,
First, Plaintiff had sufficient opportunity to raise any objections or request a curative instruction and did not do so. Second, the statements made by Plaintiff were not so "highly prejudicial" as to require a new trial. The one case cited by Plaintiff in support of its argument that defense counsel's comments "infected the trial with such unfairness" is inapposite to the facts of the instant case.
Any comments made by defense counsel during closing argument in this case do not rise to the same level as those in
Trial Tr. at 1001:24-1002:4. Defense counsel never actually called Mr. Agarwal a liar or thief. Rather, the statements made during Defendant's closing argument reflected its characterization of Mr. Agarwal's testimony as it related to his knowledge concerning the existence of any relevant prior art at the time the `309 Patent was filed. It is plain that defense counsel's statements do not rise to the level of infecting the trial with such unfairness as to warrant a new trial.
As Plaintiff failed to timely object to comments made to the jury during closing argument, Plaintiffs motion for a new trial should not be granted. Further, any failure to object to such comments cannot be overlooked because they do not constitute errors "so obvious or so serious that the public reputation and integrity of the judicial proceeding is impaired."
In conclusion, all of the reasons put forth by Plaintiff in support of its motion do not justify a new trial. Accordingly, Plaintiffs motion for a new trial is DENIED in its entirety.
Plaintiff argues that the judgment entered by this Court contains a correctable error. Doc. 158 at 19. The Court's judgment states, "ORDERED AND ADJUGED that the claims of the `309 Patent are invalid as anticipated, obvious and abstract." Plaintiff requests that the judgment be amended to the following: "ORDERED AND ADJUDGED that claims 1 and 5-10 of the `309 patent are invalid as anticipated, obvious, and abstract."
For its part, Defendant does not object to altering the judgment to state that it is the asserted claims of the `309 patent, not all claims in the patent, that are held invalid. However, Defendant maintains that the judgment of non-infringement must apply to the `309 Patent as a whole. Doc. 164 at 24.
Defendant is correct that the judgment can only be altered with respect to invalidity. Plaintiff could not sue Defendant again for infringement but could claim in some other proceeding that claims not covered by the judgment are valid. Thus, Plaintiffs motion to amend judgment is
For the reasons set forth above, the Court
The Clerk is
It is so
Trial Tr. at 805:20-806:12.
Doc. 86 at 12.