ROBINSON, District Judge
On August 8, 2011, plaintiff Technology Innovations, LLC ("Tl") filed suit in this district against defendant Amazon.com, Inc. ("Amazon") alleging infringement of
Tl is a limited liability company organized and existing under the laws of the State of New York, with its principal place of business in Estero, Florida. (D.I. 80 at ¶¶ 1-2) Tl owns the '965 patent. (Id. at ¶ 9) Amazon is a corporation organized and existing under the laws of the State of Delaware, with its principal place of business in Seattle, Washington. (Id. at ¶ 3) It makes, manufactures, and/or sells the accused products. (Id. at ¶ 19)
Presently before the court are Amazon's motions for summary judgment of invalidity and non-infringement of the '965 patent (D.I. 107; D.I. 111), and Tl's cross-motion for partial summary judgment of no invalidity of the '965 patent. (D.I. 115) Amazon also filed a motion to exclude the testimony and evidence of Dr. Conte and Mr. McCourt. (D.I. 104) The court has jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a).
"The court shall grant summary judgment if 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). The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 n. 10, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). A party asserting that a fact cannot be — or, alternatively, is — genuinely disputed must support the assertion either by citing to "particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for the purposes of the motions only), admissions, interrogatory answers, or other materials," or by "showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact." Fed.R.Civ.P. 56(c)(1)(A) & (B). If the moving party has carried its burden, the nonmovant must then "come forward with specific facts showing that there is a genuine issue for trial." Matsushita, 415 U.S. at 587, 106 S.Ct. 1348 (internal quotation marks omitted). The court will "draw all reasonable inferences in favor of the nonmoving party, and it may not make credibility determinations or weigh the evidence." Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000).
To defeat a motion for summary judgment, the non-moving party must "do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita, 475 U.S. at 586-87, 106 S.Ct. 1348; see also Podobnik v. U.S. Postal Service, 409 F.3d 584, 594 (3d Cir. 2005) (stating party opposing summary
Claim construction is a matter of law. Phillips v. AWH Corp., 415 F.3d 1303, 1330 (Fed.Cir.2005) (en banc). Claim construction focuses on intrinsic evidence — the claims, specification and prosecution history — because intrinsic evidence is "the most significant source of the legally operative meaning of disputed claim language." Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576, 1582 (Fed.Cir.1996); Markman v. Westview Instruments, Inc., 52 F.3d 967, 979 (Fed.Cir.1995) (en banc), aff'd, 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577 (1996). Claims must be interpreted from the perspective of one of ordinary skill in the relevant art at the time of the invention. Phillips, 415 F.3d at 1313.
Claim construction starts with the claims, id. at 1312, and remains centered on the words of the claims throughout. Interactive Gift Express, Inc. v. Compuserve, Inc., 256 F.3d 1323, 1331 (Fed.Cir.2001). In the absence of an express intent to impart different meaning to claim terms, the terms are presumed to have their ordinary meaning. Id. Claims, however, must be read in view of the specification and prosecution history. Indeed, the specification is often "the single best guide to the meaning of a disputed term." Phillips, 415 F.3d at 1315.
The definiteness requirement is rooted in § 112, ¶ 2, which provides that "the specification shall conclude with one or more claims particularly pointing out and distinctly claiming the subject matter which the applicant regards as his invention." "A determination of claim indefiniteness is a legal conclusion that is drawn from the court's performance of its duty as the construer of patent claims." Personalized Media Comm., LLC v. Int'l Trade Com'n, 161 F.3d 696, 705 (Fed.Cir.1998).
Id. (citing Miles Lab., Inc. v. Shandon, Inc., 997 F.2d 870, 875 (Fed.Cir.1993)). A claim that is "insolubly ambiguous" is indefinite as a matter of law. Halliburton Energy Servs. v. M-l LLC, 514 F.3d 1244, 1249 (Fed.Cir.2008). "Only claims `not amenable to construction' or `insolubly ambiguous' are indefinite." Datamize, LLC
The '965 patent, entitled "Apparatus for the Display of Embedded Information," was filed on May 18, 2001 and issued on September 30, 2008. It claims priority to provisional application no. 60/205,451, filed on May 19, 2000. The '965 patent is directed to "an apparatus for embedding digital information within a document substrate and displaying that information via the substrate." ('965 patent, col. 1:27-29) TI alleges that Amazon's Kindle products infringe independent claim 1 and dependent claims 3, 5, 7 and 18 of the '965 patent. Claim 1 is reproduced below.
(Id. at col. 11:44-58)
Claim 1, which is incorporated into all the asserted claims, recites: "An
Amazon correctly argues that the term "an apparatus" in the preamble is limiting because it provides the sole antecedent basis for the limitation "the apparatus" that appears in the body of the claim. See C.W. Zumbiel Co., v. Kappos, 702 F.3d 1371, 1385 (Fed.Cir.2012) ("[T]he preamble constitutes a limitation when the claims(s) depend on it for antecedent basis...."). TI in contrast argues that the term "apparatus" found in the preamble is not a limitation because it is not necessary to complete the structural limitations that follow in the body of the claim and merely identifies the general nature of the invention
In support of its motion for summary judgment of invalidity, Amazon argues that the claim is indefinite because it does not identify what "the applicant regards as his invention," the first requirement for definiteness.
In the present case, the specification and the prosecution history of the '965 patent inform the court as to what the inventor regarded as his invention. During prosecution of the patent, the applicant received a rejection under § 112 because "permanently embedded" was not described in the specification in such a way as to reasonably convey to one skilled in the art that the inventor had possession of the claimed invention. (D.I. 103, ex. 4 at JA 271) The applicant responded that the limitation was fully disclosed:
(Id. at JA 283) (emphasis added)
Amazon also argues that the claims cannot possibly define the metes and bounds of the invention because they contain an inherent logical contradiction that renders them "insolubly ambiguous." (D.I. 108 at 11; see Virtual Solutions, LLC v. Microsoft Corp., 925 F.Supp.2d 550, 569 (S.D.N.Y.2013) (finding a claim indefinite because "[it] requires that two apparently contradictory statements hold true: `position information' must be simultaneously part of, and used separately from, the `physical characteristic signal'...."). The decision from this district, M2M Solutions, LLC v. Sierra Wireless America, Inc. further informs the court. Civ. No. 12-30, 2013 WL 5981336,*6 (D. Del. Nov. 12, 2013).
Tl argues that "a substrate into which the apparatus is permanently embedded" simply means that the apparatus is enclosed by or embedded into a substrate which is part of the overall apparatus, and analogizes the present term with use of the word "letter," which will often include the envelope in which the actual letter is embedded or enveloped. (D.I. 116 at 11-12) The term "apparatus," however, does not change meaning within the context of the claim.
The '407 patent, entitled "Device for including enhancing information with printed information and method for electronic searching thereof," was filed June 30, 1994 and issued May 14, 1996. The '407 patent claims an invention for electronically enhancing printed information such as books and other printed publications. In its original complaint, TI alleged that Amazon's Kindle product infringed claim 24 of the '407 patent. (D.I. 1 at ¶ 42)
On April 25, 2012, the court denied Amazon's motions to dismiss and for Rule 11 Sanctions,
The court granted Tl's motion to amend on March 27, 2013 (D.I.79) and, on that same day, Tl filed its amended complaint removing all allegations of infringement with respect to the '407 patent. (D.I.80) Tl further provided a statement of non-liability for infringement of the '407 patent with respect to Amazon. (D.I.82) In granting Tl's motion to amend, this court indicated that Amazon "shall file an answer to the amended complaint ... through which it may seek an award of attorney fees pursuant to 35 U.S.C. § 285. If [Amazon] chooses to dismiss its counterclaims, it may nonetheless raise them in support of its fees motion." (D.I.79)
In its answer to the amended complaint, among several affirmative defenses, Amazon included three counterclaims, wherein counterclaim III sought sanctions, including attorney fees, pursuant to 35 U.S.C. § 285 for the frivolous assertion of the '407 patent. (D.I. 83 at 13-17) On April 18, 2013, Tl filed a motion to dismiss Amazon's counterclaim III for sanctions on the grounds that it failed to state a cause of action. (D.I.88) The court granted the motion on August 15, 2013, but recognizing the motivations behind Amazon's counterclaim, determined that there was a basis for considering Rule 11 sanctions for attorney fees against Tl for its assertion of the '407 patent. (D.I. 110 at 8-9) Specifically, the court noted that, "Tl continued to assert the '407 patent at least until May 30, 2012 when it motioned to amend its complaint to completely remove the '407 patent from the suit." (Id. at 9) "Defendant was required to answer the original complaint, file counterclaims, and cooperate with discovery requests related to the '407 patent from August 8, 2011 at least until that date." (Id.)
The court ordered that Tl show cause why its assertion of the '407 patent in its original complaint was proper under the requirements of Rule 11(b). (Id.) Tl filed a response to this order on September 12, 2013 asserting that it conducted an objectively reasonable pre-suit infringement investigation and, therefore, complied fully with Rule 11. (D.I.129) Amazon responded on September 30, 2013 and Tl replied on October 10, 2013. (D.I. 135; D.I. 139) In its brief, Amazon urges this court to draw a much-needed line as Tl's claim epitomizes the sort of abusive litigation that has clogged the courts and has caused defense costs to skyrocket. (D.I. 135 at 1)
Rule 11 of the Federal Rules of Civil Procedure allows a court to sanction a party or attorneys under limited circumstances. A court can award sanctions if a party or attorney has presented a motion for an "improper purpose," the claims or defenses put forth in a motion are frivolous, the claims in a motion are not likely to be supported by the evidence after investigation, or a party wrongfully denies a factual allegation. Brown v. Interbay Funding, LLC, Civ. No. 04-617, 2004 WL 2579596, at *2 (D. Del. Nov. 8, 2004); see Fed.R.Civ.P. Rule 11(b).
In a patent case, the law of the regional circuit applies to the imposition of Rule 11 sanctions. See Power Mosfet Techs., LLC. v. Siemens AG, 378 F.3d 1396, 1406-07 (Fed.Cir.2004). In the Third Circuit, conduct violates Rule 11 if it is not "objectively reasonable under the circumstances." Ario v. Underwriting Members of Syndicate 53 at Lloyds for the 1998 Year of Account, 618 F.3d 277, 297 (3d Cir.2010). A reasonable pre-suit investigation requires that counsel compare the accused product to the asserted claims, and "perform an objective evaluation of the claim terms when reading those terms on the accused device." Eon-Net LP v. Flagstar Bancorp, 653 F.3d 1314, 1329 (Fed.Cir.2011) (holding that the district court's findings were not clearly erroneous in finding a complaint objectively unreasonable where defendant's proposed claim construction contradicted the specification's express definition of the invention).
TI alleges that it conducted an objectively reasonable pre-suit investigation, including construing the claims, and after doing so, asserted only one claim of the '407 patent against one product in compliance with Rule 11. (D.I. 129 at 1; D.I. 130 at TIA 107 at ¶ 3) It further alleges that Amazon's motion must be rejected because Amazon asserts a plainly erroneous claim construction.
To show that it conducted a reasonable pre-suit investigation, TI provides a time
According to Tl, it is evident from the complaint that Tl carefully reviewed and interpreted claim 24, following a review of the '407 patent and the prosecution history, as the complaint shows the key terms of the claim and bases for the constructions as indicated below:
(D.I. 1 at ¶¶ 25-28) Tl then detailed why the Kindle infringed claim 24 of the '407 patent in more detail than normally found under "Form 18" practice. (Id. at ¶¶ 29-44) The assertion of infringement was also supported by a claim chart created by Mr. Woodford, which was prepared by July 15, 2011 when it was sent to Tl's counsel and which, according to Tl, demonstrates that applying the well-founded interpretation of the claims as detailed in the complaint, the Kindle infringed claim 24 of the '407 patent. (D.I. 130 TIA 114 at ¶¶ 9-10, TIA 119-123)
Amazon argues that Tl has failed to show cause why it did not violate Rule 11(b) by asserting its '407 patent infringement claim, and asks this court to enter a sanctions order against Tl in an amount equal to Amazon's costs and reasonable attorney fees relating to this claim. (D.I. 135 at 10) In support of its position, Amazon argues that Tl's position is objectively baseless because: (1) the specification states that digital information is "non-printed";
Amazon further argues that Tl's pre-filing investigation cannot legitimize its objectively baseless claim construction. (D.I. 135 at 7) Specifically, (1) filing declarations from lawyers and consultants who signed off on the infringement claim cannot establish that Tl's construction was grounded in an objectively reasonable analysis; (2) Tl cannot offer these declarations as evidence that it acted in good faith because Rule 11 does not require bad faith;
To create a "full claim construction record" for its sanction motion, Amazon identified the term "book" from the '407 patent as a disputed limitation to be construed at the Markman hearing. (D.I. 85; D.I. 118 at 21) Amazon proposed the limitation be construed as "paper-based media," while Tl proposed that it means, "not only conventional books, but other forms of printed information that can be read directly by users." (D.I.85) The sole claim asserted against Amazon's Kindle
('407 patent, col. 12:27-38) Figure 1 is a preferred embodiment illustrating the perspective view of an exemplary device in accordance with the '407 patent. (Id. at col. 6:25-30)
Because the patent expressly indicates that the limitation "book" be defined to include "not only conventional books, but other forms of printed information that could be read directly by users" (see id. at 1:28-33),
The claim requires, in part, a "plurality of pages of printed information" and "enhancing information stored in machine readable memory permanently attached to the book." (Id. at 12:27-32) Further, "a connector [is] attached to the book for connecting the machine readable memory and [an] external computing device." (Id. at 12:33-35) This is supported by the specification that identifies the invention as "an enhanced book," which includes,
(Id. at col. 3:21-31) The specification is replete with references to providing "enhancing information" to aid the reader of "printed information"
Site Update Solutions, LLC v. Accor North America, Inc. described the types of claim construction positions the Federal Circuit has held to be frivolous. Civ. No. 11-3306, 2013 WL 2238626, *7 (N.D.Cal. May 21, 2013). In Raylon, LLC v. Complus Data Innovations, Inc., the plaintiff relied on a single sentence in the specification to construe a "display being pivotally mounted on said housing" as requiring a "display being capable of being moved or pivoted relative to the viewer's perspective." 700 F.3d 1361, 1368 (Fed.Cir.2012), cert. denied, ___ U.S. ___, 134 S.Ct. 94, 187 L.Ed.2d 33 (U.S.2013). The figures and the specification, however, described that the display must pivot relative to the housing, not relative to the viewer, as construed by plaintiff. Id. at 1368-69. The Federal Circuit held that the plaintiff's position was "contrary to all the intrinsic evidence and [did] not conform to the standard canons of claim construction." Id. at 1369. In Eon-Net, the Federal Circuit agreed with the district court that plaintiff's claim construction position — that the terms "documents" and "files" were not limited to "hard copy documents" — was objectively baseless as "the written description expressly define[d] the invention as a system for processing information originating from hard copy documents." See 653 F.3d at 1326, 1329.
"Reasonable minds can differ as to claim construction positions and losing constructions can nevertheless be non-frivolous. But, there is a threshold below which a claim construction is `so unreasonable that no reasonable litigant could believe it would succeed,' and thus warrants Rule 11 sanctions." Raylon, 700 F.3d at 1368 (citations omitted). In the present case, the court agrees with Amazon that, although Tl's proposed definition for the term "book" is reasonable, its definition for "printed" — to encompass "any configuration in which information is presented for direct human perception" — is astonishingly broad. (See D.I. 135 at 4) Tl argues this construction based on a single sentence in the specification which recites, "[p]rinted work 11 may be a work of any configuration in which information is presented for direct human perception." (See 129 at 9; '407 patent, col. 6:42-43) The next sentence, however, reads that, "[t]hus, for example, in addition to a cloth-(or other hard-) bound, or soft-bound book, work 11 may be a magazine, or other paper based media sufficient to carry an electronic memory device as memory chip 17 and allow its operable interconnect to access
For the foregoing reasons, the court grants Amazon's motion for summary judgment of invalidity (D.I.107) and denies Tl's motion for partial summary judgment of no invalidity. (D.I.115) The remaining motions — Amazon's motions for summary judgment of non-infringement and to exclude testimony and evidence of Dr. Conte and Mr. McCourt — are denied as moot. (D.I. 111; 104) An appropriate order shall issue.
At Wilmington this 31st day of March 2014, consistent with the memorandum opinion issued this same date;
IT IS ORDERED that:
1. Amazon's motion for summary judgment of invalidity (D.I.107) is granted.
2. Amazon's motion for summary judgment of non-infringement (D.I.111) is denied as moot.
3. Tl's motion for partial summary judgment of no invalidity (D.I.115) is denied.
4. Amazon's motion to exclude testimony and evidence of Dr. Conte and Mr. McCourt (104) is denied as moot.
5. Amazon shall submit for the court's review, on or before April 14, 2014, an accounting of its reasonable attorney fees and costs consistent with the court's opinion.
(D.I. 1 at ¶ 26)
('407 patent, col. 6:28-41) (emphasis added)