EDWARD J. DAVILA, United States District Judge.
Presently before the Court is Defendants AliphCom d/b/a Jawbone and Bodymedia, Inc.'s (collectively "Defendants" or "Jawbone") motion for judgment on the pleadings that U.S. Patent Nos. 9,026,053 (the "'053 patent"), 9,106,307 (the "'307 patent"), and 9,048,923 (the "'923 patent") (collectively, the "patents-in-suit") are invalid for failure to claim patent-eligible subject matter under 35 U.S.C. § 101. Dkt. No. 88. For the reasons discussed below, the Court DENIES Jawbone's motion.
The parties are health and fitness companies that both sell wearable activity trackers. In general, wearable activity trackers are small, lightweight devices that track a user's activities throughout the day, such as how many steps the user takes, how long the user sleeps, and how many calories the user has burned. The devices can then be connected to a user's computer or smartphone, where they upload the data they collect. The user can then view this data through an application or website, and analyze it for trends, set or track progress on fitness goals, and share their activities with friends through social networking.
In order for data to be seamlessly transmitted between the device and the smartphone, the devices are often "paired" to the user's smartphone or computer before first use. Pairing sets up a unique system of contact between the device and the smartphone or computer such that the two can automatically synchronize data whenever they are connected, without requiring intervention from the user. For example, a Bluetooth-enabled device that is paired to a Bluetooth-enabled smartphone will automatically upload data whenever it comes within range of the smartphone.
Fitbit's asserted patents relate to a specific approach to pairing a wireless device, such as a wearable activity tracker, to a "client" and/or "server." All three patents are entitled "System and Method for Wireless Device Pairing" and share the same specification. The '053 patent was filed first, on February 17, 2013, and the '923 and '307 patents were filed as divisional applications on December 24, 2013 and March 27, 2014, respectively. The '053 patent issued on May 5, 2015, the '923 patent
All of the asserted claims recite a method or system for pairing that involves three discrete entities: a portable monitoring device, a "client," and a "server." '053 patent, col. 14 l. 63-col. 16 l. 4; '923 patent, col. 15 ll. 2-49; '307 patent, col. 15 ll. 2-47, col. 17 l. 30-col. 18 l. 16. Figure 1 illustrates the interaction between these three actors:
Figures 13 and 14 illustrate the pairing process:
This process begins when a user enters account login information (e.g., creates an account or logs into an existing account) in the client. '053 patent, col. 9 l. 65-col. 10 l. 54, figs. 13, 14. Next, the client sends a signal to the server to indicate that the pairing process has been triggered, and the server sends back a user interface or
The asserted independent claims generally follow this process. For example, claim 1 of the '053 patent recites:
'053 patent, col. 14 l. 63-col. 16 l. 5.
Federal Rule of Civil Procedure 12(c) provides that "[a]fter the pleadings are closed — but early enough not to delay trial — a party may move for judgment on the pleadings." A Rule 12(c) motion challenges the legal sufficiency of the opposing party's pleadings. Judgment on the pleadings is appropriate when, even if all material facts in the pleading under attack are true, the moving party is entitled to judgment as a matter of law. Fleming v. Pickard, 581 F.3d 922, 925 (9th Cir. 2009).
On a motion for judgment on the pleadings, "all material allegations in the complaint are accepted as true and construed in the light most favorable to the non-moving party." Turner v. Cook, 362 F.3d 1219, 1225 (9th Cir. 2004). "[A]ll reasonable inferences" must be made "in favor of the nonmoving party." Mediran v. International Ass'n of Machinists and Aerospace Workers, No. C09-0538 TEH, 2011 WL 2746601, at *2 (N.D. Cal. July 14, 2011). "When considering a motion for judgment on the pleadings, this court may consider facts that `are contained in materials of which the court may take judicial notice.'" Heliotrope General, Inc. v. Ford Motor Co., 189 F.3d 971, 981, n. 18 (9th Cir. 1999) (citation omitted). A motion for judgment on the pleadings may be granted if, after assessing the complaint and matters for which judicial notice is proper, it appears "beyond doubt that the [non-moving party] cannot prove any facts that would support his claim for relief." Morgan v. County of Yolo, 436 F.Supp.2d 1152, 1155 (E.D. Cal. 2006). In other words, the standard for a Rule 12(c) motion is essentially the same as that for a Rule 12(b)(6) motion. Chavez v. United States, 683 F.3d 1102, 1108 (9th Cir. 2012).
35 U.S.C. § 101 provides that "[w]hoever invents or discovers any new and useful process, machine, 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." However, the Supreme Court has recognized that these broad categories contain an implicit exception: "[l]aws of nature, natural phenomena, and abstract ideas are not patentable." Ass'n for Molecular Pathology v. Myriad Genetics, Inc., ___ U.S. ___, 133 S.Ct. 2107, 2116, 186 L.Ed.2d 124 (2013) (internal quotation marks and citation omitted).
To determine whether a claim falls out-side this exception, the Supreme Court has established a two-step framework: First, the court must "determine whether the claims at issue are directed to a patent-ineligible concept." Alice Corp. Pty. Ltd. v. CLS Bank Int'l, ___ U.S. ___, 134 S.Ct. 2347, 2355, 189 L.Ed.2d 296 (2014). Second, if the claims are directed to patent-ineligible subject matter, the Court must "consider the elements of each claim both individually and `as an ordered combination' to determine whether the additional elements `transform the nature of the claim' into a patent-eligible application." Id. (quoting Mayo Collaborative Servs. v. Prometheus Laboratories, Inc., 566 U.S. 66, 132 S.Ct. 1289, 1298, 1297, 182 L.Ed.2d 321 (2012)). The Supreme Court has described this as a "search for an `inventive concept' — i.e., an element or combination of elements that is `sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.'" Id.
In evaluating step one, "the `directed to' inquiry applies a stage-one filter to claims, considered in light of the specification, based on whether `their character as a whole is directed to excluded subject matter.'" Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016) (quoting Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1346 (Fed. Cir. 2015)). The Federal Circuit has also described this inquiry as an evaluation of the "focus" or "basic thrust" of the claims. See Enfish, 822 F.3d at 1335-36; BASCOM Glob. Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1348 (Fed. Cir. 2016). The Federal Circuit has recognized that this process sometimes involves "close calls about how to characterize what the claims are directed to." BASCOM, 827 F.3d at 1349. Courts must tow the fine line between assessing a claim's "character as a whole" and "describing the claims at such a high level of abstraction and untethered from the language of the claims [such that it] all but ensures that the exceptions to § 101 swallow the rule." Enfish, 822 F.3d at 1335, 1337.
To date, the Federal Circuit has provided two examples of software claims that are not directed to an abstract idea. First, in Enfish, the Federal Circuit determined that claims directed to a specific type of self-referential table for a computer database were not abstract because they focused "on the specific asserted improvement in computer capabilities (i.e., the self-referential table for a computer database)" instead of "a process that qualifies as an `abstract idea' for which computers are invoked merely as a tool," they were not directed to an abstract idea. Id. at 1335-36, 1339. Second, in McRO, Inc. v. Bandai Namco Games Am. Inc., the Federal Circuit found that patents that automated part of a preexisting method for 3-D facial expression animation were not abstract because they "focused on a specific asserted improvement in computer animation, i.e., the automatic use of rules of a particular type." 837 F.3d 1299, 1314 (Fed. Cir. 2016).
However, not all claims relating to computer technologies are not abstract. Where the focus of the claims is on "certain independently abstract ideas that use computers as tools" instead of "an improvement in computers as tools," claims may fail step one. See, e.g., Affinity Labs of Texas, LLC v. DIRECTV, LLC, 838 F.3d 1253, 1262 (Fed. Cir. 2016) (claims relating to "deliver[ing] content to a handheld wireless electronic device" were directed to an abstract idea because they claimed "the general concept of out-of-region delivery of broadcast content through the use of conventional devices, without offering any technological means of effecting that concept"); Synopsys, Inc. v. Mentor Graphics Corp., 839 F.3d 1138, 1140, 1149 (Fed. Cir. 2016) (claims related to logic circuit design in computer hardware were "drawn to the abstract idea of: translating a functional description of a logic circuit into a hardware component description of the logic circuit" because "they are so broad as to read on an individual performing the claimed steps mentally or with pencil and paper"); Tranxition, Inc. v. Lenovo (United States) Inc., 664 Fed.Appx. 968, 971-72 (Fed. Cir. 2016) (claims relating to migration of computer settings were directed to an abstract idea because "manual migration is an abstract idea" and the claims merely "automate[d] the migration of data between two computers"). Restricting older, abstract ideas to certain technological environments also does not make them not abstract. See, e.g., FairWarning IP, LLC v. Iatric Sys., Inc., 839 F.3d 1089, 1094 (Fed. Cir. 2016) (observing that ineligible claims "merely implement an old practice in a new environment"). Thus, non-abstract claims that "improve the functioning of the computer itself," Alice, 134 S.Ct. at 2359, or are
In assessing step two, courts must "consider the elements of each claim both individually and `as an ordered combination'" and assess whether there are any "additional features" in the claims that constitute an "inventive concept." Alice, 134 S.Ct. at 2357. This inventive concept "must be significantly more than the abstract idea itself," BASCOM, 827 F.3d at 1349, "must be more than well-understood, routine, conventional activity," DIRECTV, 838 F.3d at 1262, "and cannot simply be an instruction to implement or apply the abstract idea on a computer." BASCOM, 827 F.3d at 1349. For example, it may be found in an "inventive set of components or methods," "inventive programming," or an inventive approach in "how the desired result is achieved." Elec. Power Grp., LLC v. Alstom S.A., 830 F.3d 1350, 1355 (Fed. Cir. 2016).
The Federal Circuit has found an inventive concept in several cases. First, in DDR Holdings, LLC v. Hotels.com, L.P., the Federal Circuit found that claims that addressed the "Internet-centric problem" of third-party merchant advertisements that would "lure ... visitor traffic away" from a host website (because clicking on the advertisement would redirect the visitor to the merchant's website) amounted to an inventive concept. 773 F.3d 1245, 1248, 1259 (Fed. Cir. 2014). This was so, the Federal Circuit reasoned, because the claims "specify how interactions with the Internet are manipulated to yield a desired result" such that the interactions are "not merely the routine or conventional use of the Internet." Id. at 1259. Second, in BASCOM, the Federal Circuit found that the claims directed to Internet content filtering recited the inventive concept of "install[ing] a filtering tool at a specific location, remote from the end-users, with customizable filtering features specific to each end user." 827 F.3d at 1350. The court reasoned that "an inventive concept can be found in the non-conventional and non-generic arrangement of known, conventional pieces." Id. The court found this to be the case there because the patents claimed a specific type of content filtering that took advantage of an ISP server's ability to associate internet requests with user accounts. Id. Third, in Amdocs (Israel) Ltd. v. Openet Telecom, Inc., the Federal Circuit found that claims relating to solutions for managing accounting and billing data over large, disparate networks recited an inventive concept because they contained "specific enhancing limitation[s] that necessarily incorporates the invention's distributed architecture — an architecture providing a technological solution to a technological problem." 841 F.3d 1288, 1301 (Fed. Cir. 2016). Use of this "distributed architecture" transformed the claims into patentable subject matter. Id.
Nevertheless, not all technological aspects of how a patented invention is implemented supply a basis for finding an "inventive concept." A claim that simply takes an abstract idea and adds "the requirement to perform it on the Internet, or to perform it on a set of generic computer components ... would not contain an inventive concept." BASCOM, 827 F.3d at 1350. For example, in Content Extraction & Transmission LLC v. Wells Fargo Bank, Nat. Ass'n, the Federal Circuit found that claims directed to the abstract ideas of extracting data and recognizing patterns did not recite an inventive concept because they simply recited "generic scanner and computer to perform well-understood, routine, and conventional activities commonly used in industry." 776 F.3d 1343, 1348 (Fed. Cir. 2014), cert. denied, ___ U.S. ___, 136 S.Ct. 119, 193 L.Ed.2d 208 (2015). Similarly, in DIRECTVE,
In addition to these principles, several other considerations may be helpful in conducting a § 101 analysis: First, the Supreme Court has recognized that the "concern that undergirds [the] § 101 jurisprudence" is preemption. Alice, 134 S.Ct. at 2358. If a claim is so abstract so as to "pre-empt use of [the claimed] approach in all fields, and would effectively grant a monopoly over an abstract idea" is not patent-eligible. Bilski v. Kappos, 561 U.S. 593, 612, 130 S.Ct. 3218, 3231, 177 L.Ed.2d 792 (2010). However, the inverse is not true: "[w]hile preemption may signal patent ineligible subject matter, the absence of complete preemption does not demonstrate patent eligibility." FairWarning IP, 839 F.3d at 1098 (internal quotation marks and citation omitted).
Second (and relatedly), "claims that are `so result-focused, so functional, as to effectively cover any solution to an identified problem' are frequently held ineligible under section 101." DIRECTV, 838 F.3d at 1265. For example, in Elec. Power Grp., the Federal Circuit found that claims directed to "any way of effectively monitoring multiple sources on a power grid" instead of "some specific way of enabling a computer to monitor data from multiple sources across an electric power grid" did not contain an inventive concept. 830 F.3d at 1356. The Federal Circuit has noted that this framework "is one helpful way of double-checking the application of the Supreme Court's framework to particular claims — specifically, when determining whether the claims meet the requirement of an inventive concept in application." Id.
Fitbit currently asserts claims 1, 2, and 5-9 of the '053 patent, claims 1-3 and 16-19 of the '307 patent, and claims 1, 2, 7-10, and 13 of the '923 patent (collectively, the "asserted claims"). With minor differences, the asserted claims of all three patents are similar in substance.
At step one of the Mayo/Alice framework, the Court must "determine whether the claims at issue are directed to a patent-ineligible concept," such as an abstract idea. Alice, 134 S.Ct. at 2355. Jawbone argues that such is the case here because the asserted claims are directed to the abstract ideas of "identifying and validating an electronic device" through "minimal user interaction." Mot. 15, Dkt. No. 88 (quoting '923 patent, col. 2 ll. 20-21). As such, they "focus" on "a fundamental building block of today's internet-based society — wirelessly connecting two computerized devices to enable the exchange of data." Id. at 16. Jawbone contends that nothing in the claims makes them less abstract than this, as they merely recite the routine interactions of computing devices connecting to each other, accomplished through the "ubiquitous" medium of wireless communication. Id. at 17. Jawbone also points out that many of the claim elements fall within information processing and notification features that the Federal Circuit has already declared abstract. Id. at 18-19. Jawbone further argues that the claimed technology is effectively the Bluetooth protocol, and accordingly invokes the same preemption concerns that underlie the prohibition against patenting other abstract ideas. Id. at 17.
Fitbit disagrees, arguing that the claims are directed to a narrow improvement in device pairing that is specific to portable monitoring devices. Opp. 14, Dkt. No. 105. In particular, Fitbit argues that the claims' use of (1) a server to identify eligible devices and (2) tapping to indicate user validation specifically improves portable monitoring device technology, as this overcomes the problem that portable monitoring devices are small and often do not have keyboards or buttons that could be used in a pairing process. Id. at 15-16. Fitbit also suggests that the fact that the claims are directed to device pairing should alone be sufficient to take them out of the realm of the abstract, as pairing is a "technological process." Id. at 14.
In reply, Jawbone argues that neither the server nor tapping saves the claims under step one, as the server is a generic computer component, tapping as validation was known in the art, and Fitbit has proposed broad constructions for both that would allow these limitations to encompass almost anything. Reply 2-5, Dkt. No. 108.
The Court begins its analysis by considering what the "character as a whole" of the claims is "directed to." Internet Patents, 790 F.3d at 1346. Although the "directed to" inquiry is a "stage-one filter," the Federal Circuit has cautioned against "describing the claims at such a high level of abstraction and untethered from the language of the claims" such that it "all but ensures that the exceptions to § 101 swallow the `rule." Enfish, 822 F.3d at 1337. After all, any generalized view of a claim would, "if carried to its extreme, make all inventions unpatentable because all inventions can be reduced to underlying principles of nature which, once known, make their implementation obvious." Diamond v. Diehr, 450 U.S. 175, 189 n.12, 101 S.Ct. 1048, 67 L.Ed.2d 155 (1981). As such, the Federal Circuit "sometimes incorporates claim limitations into its articulation of the idea to which a claim is directed." BASCOM, 827 F.3d at 1349.
Applying these principles here, Jawbone's characterization of the claims sweeps too broad. The claims do not recite any process for connecting two devices, but a specific one, which at least requires: (1) a "client"
The question then becomes whether this particular "flavor" of device pairing is an abstract idea. The parties do not seem to dispute that device pairing, in its most basic form, constitutes an abstract idea. Nor could they. Establishing a dedicated line of communication between two points is a "broad and familiar concept concerning information distribution that is untethered to any specific or concrete way of implementing it," DIRECTV, 838 F.3d at 1258, which has been employed in everything from secure military communications to garage door openers. As such, it remains a "building block[] of human ingenuity" and properly precluded from patent protection. Alice, 134 S.Ct. at 2354.
Whether this is true of the "flavor" of pairing in the asserted claims, however, is a closer question. In Enfish, the Federal Circuit held that claims "`purport[ing] to improve the functioning of the computer itself,' or `improv[ing] an existing technological process' might not succumb to the abstract idea exception." Enfish, 822 F.3d at 1335. The asserted claims could be so characterized: the insertion of a server — a physical machine, under the Court's construction — and tapping — a subset of movements detectable by a motion detector, under the Court's construction — confine the asserted claims to less than device pairing generally, and they appear to provide an improvement to device pairing solutions that lack these steps. Nevertheless, the Federal Circuit has maintained, that, even with technical solutions provided in
Given these competing considerations, the claims present a "close call[] about how to characterize what the claims are directed to," where the claims are not "unambiguously directed to an improvement in computer capabilities." BASCOM, 827 F.3d at 1349 (quoting Enfish, 822 F.3d at 1339). The Federal Circuit has instructed that, in such cases, "an analysis of whether there are arguably concrete improvements in the recited computer technology could take place under step two." Id. For example, in BASCOM, the Federal Circuit deferred ruling on whether claims relating to particular implementations of content filtering were abstract ideas under step one and proceeded to analyze them under step two. The Court finds itself in a similar situation here. Accordingly, the Court will decline to decide whether the claims' particular variant of portable device pairing is an abstract idea, and assess whether, even if it is, the concrete improvements they recite are inventive concepts under step two.
At step two, the Court must "consider the elements of each claim both individually and `as an ordered combination'" and assess whether there are any "additional features" in the claims that constitute an "inventive concept." Alice, 134 S.Ct. at 2357. Jawbone argues that there are none because the asserted claims are comprised of elements (e.g., transferring information over Bluetooth, connecting to the internet, "mobile devices," "server," "client") that are generic and well-known in the art. Mot. 20-21, Dkt. No. 88. Jawbone maintains that the claims are not confined to applications in wearable activity tracker technology, but that, even if they were, this does not save them under step two because limiting claims to a certain technical environment does not make them patentable. Id. at 21. Jawbone also argues that there is nothing inventive about the claims as an ordered combination, as there is nothing "non-conventional" or "non-generic" about how the claim elements are arranged and nothing they recite constitutes a specific improvement to portable device technology. Id. at 21-22.
Fitbit disagrees, asserting that the use of a server to identify eligible devices and the use of tapping, detected by a motion sensor, to validate a pairing are unconventional elements which supply an inventive concept. Opp. 16-17, Dkt. No. 105. Fitbit also argues that the ordered combination of claim elements also supplies an inventive
In reply, Jawbone argues that neither the server nor tapping supply an inventive concept, as the "server" in the claims is just a generic, undefined component and tapping was a known form of validation at the time of invention. Reply 7-10, Dkt. No. 108.
Weighing the parties' arguments against the asserted claims and appropriate context, the Court agrees with Jawbone that none of the claim elements, assessed individually, provide an inventive concept. Even under the Court's constructions, the "server," "client," and "portable monitoring device" are, in broad terms, generic, conventional components, none of which are inventive. The various steps of transmitting or receiving information and how they are accomplished are also generic — the claims recite these steps only functionally and require no inventive algorithm or data structure for performing them. See DIRECTV, 838 F.3d at 1262 (finding no inventive concept where "[t]he claim simply recites the use of generic features of cellular telephones, such as a storage medium and a graphical user interface, as well as routine functions, such as transmitting and receiving signals, to implement the underlying idea.").
The Court also agrees with Jawbone that the claims' relation to wearable activity tracker technology, in and of itself, does not make them patent-eligible. As the Supreme Court and Federal Circuit have long held, "limiting the use of an abstract idea `to a particular technological environment'" "is not enough for patent eligibility." Alice, 134 S.Ct. at 2358.
Nevertheless, the Court agrees with Fitbit that the ordered combination of claim elements, interpreted in the light most favorable to Fitbit, contains inventive concepts. First, the addition of tapping as the form of validation is an inventive concept. As the background section of the patents highlights, one problem that confronted the process of pairing small, portable devices was that they were "purposefully designed to eliminate keyboards and multiple buttons in order to satisfy other design criteria." '053 patent, col. 1 ll. 49-51. Tapping overcame this problem in an inventive way because it took advantage of the inherent, technical capabilities of the portable monitoring device — its ability to detect motion with a motion sensor — to provide a manner of validating the device that was different from traditional forms of input (i.e., buttons and keyboards). This is similar to the inventive concept in BASCOM, which found that taking advantage of a technical feature of certain ISP servers — the ability "to identify individual accounts that communicate with the ISP server, and to associate a request for Internet content with a specific individual account" — transformed the idea of content filtering into a specific type of filtering that constituted a "technical improvement over prior art ways of filtering such content." 827 F.3d at 1350.
Jawbone nevertheless contends that tapping cannot supply an inventive concept because it was known in the art. This argument conflates patent eligibility with novelty, which are inquiries that, although "might sometimes overlap," Mayo, 132 S.Ct. at 1304, are separate. See Rapid Litig. Mgmt. Ltd. v. CellzDirect, Inc., 827 F.3d 1042,
Second, the use of a server as a part of the claimed pairing process supplies an inventive concept. As the name suggests, the concept of pairing traditionally involves two devices: the device that gets paired and the device it is paired with. See also '053 patent, col. 1 ll. 35-38. By injecting a third device — a server — into this process, the asserted claims shift this paradigm so that all of the information needed for pairing does not have to be provided through the two devices. Instead, the server can also regulate and facilitate this process. For example, the server can narrow the field of possible portable devices to pair by sending the client the list of devices that are "eligible" — e.g., devices that have not already been paired, that belong to a class of devices that user's account is authorized to work with, etc. Id., col. 6 l. 40-col. 7 l. 4. This helps accomplish the goal of "minimiz[ing] the amount of user interaction and input required in the pairing process," because the server can automatically supply eligibility information that a user might otherwise have to supply himself. Accordingly, when viewed in the light most favorable to Fitbit, the server limitation also helps transform a more abstract device pairing process into "something more" because it narrows it to a specific, discrete implementation of this idea that specifically addresses needs in the particular field of portable device monitors.
In sum, both the use of tapping and the use of a server, when considered along with the rest of the claims as an ordered combination, supply an inventive concept that transforms the asserted claims into patent eligible subject matter under step two.
For the foregoing reasons, the Court concludes that the asserted claims are not patent-ineligible under 35 U.S.C. § 101 because they contain an inventive concept sufficient to transform these claims into patentable subject matter. Accordingly, the Court DENIES Jawbone's motion for judgment on the pleadings.
Synopsys, 839 F.3d at 1151; see also Affinity, 838 F.3d at 1263 ("the eligibility finding does not turn on the novelty of using a user-downloadable application for the particular purpose set out in the claims").