Nathaniel M. Gorton, United States District Judge.
Plaintiff Sunrise Technologies, Inc. ("plaintiff") alleges defendant Cimcom Lighting, Inc. ("defendant") is liable for direct, contributory, induced and willful infringement of one of its patents for a mesh network of wirelessly linked communication nodes mounted on utility poles.
Defendant has filed this motion to dismiss asserting that plaintiff has not stated claims for any kind of infringement. For the following reasons, defendant's motion to dismiss will be denied, in part, and allowed, in part.
Plaintiff is the assignee of United States Patent No. 7,825,793 ("'793 patent"), which was filed in May, 2007, and issued in November, 2010.
The '793 patent, entitled "Remote Monitoring and Control System," is an invention that allows people to monitor and control from afar household and building parameters such as home security settings,
In April, 2015, plaintiff filed this action for patent infringement. After this Court allowed several extensions of time to file a responsive pleading, defendant moved to dismiss the complaint in March, 2016. Plaintiff subsequently filed an amended complaint alleging patent infringement under theories of direct, contributory, induced and willful infringement. Defendant's dispositive motion followed.
To survive a motion to dismiss for failure to state a claim under Fed. R. Civ. P. 12(b)(6), a complaint must contain "sufficient factual matter" to state a claim for relief that is actionable as a matter of law and "plausible on its face."
When rendering that determination, a court may not look beyond the facts alleged in the complaint, documents incorporated by reference therein and facts susceptible to judicial notice.
Plaintiff alleges one count of "infringement" in its complaint. Both plaintiff and defendant have, however, submitted memoranda presenting arguments with respect to four different kinds of infringement: direct, contributory, induced and willful. Accordingly, the Court will construe the amended complaint as alleging those four causes of action.
The parties first dispute whether pleading in conformity with Fed. R. Civ. P. Form 18 is sufficient to state a claim for direct infringement.
The Federal Circuit Court of Appeals has held that for claims of direct infringement, the pleading requirements of Form 18 are sufficient to survive a motion to dismiss.
District courts have since been at odds as to whether the requirements of Form 18 still apply in claims of direct infringement.
In the absence of authority from the Circuit Courts of Appeals, this Court finds instructive the reasoning of several district courts which have decided this issue, concluding that the pleading requirements of Form 18 no longer apply to direct infringement claims.
Citing the Supreme Court's order, plaintiff contends that defendant has not shown that applying the
Accordingly, the Court will apply the
To succeed on a claim for direct infringement, the allegedly infringing product must practice all elements of a patent claim.
Defendant asserts that plaintiff's claim of direct infringement fails because its accused products do not have certain elements included in the claims of the '793 patent, such as a "street light pole" or an "end user." Plaintiff responds that it has sufficiently alleged facts to put defendant on notice of the claims against it.
Although defendant contends that plaintiff does not allege that defendant's product includes a "street light pole" or an "end user," plaintiff alleges exactly that. For example, in paragraph 12 of its amended complaint, plaintiff claims,
Similarly, defendant maintains that plaintiff has not alleged that its accused products include a "watchdog function." In paragraph 12, however, plaintiff alleges that defendant's accused products
Defendant contends that plaintiff fails to state a claim for contributory infringement because it fails 1) to indicate which claims are infringed, 2) to allege facts that support direct infringement by a third party and 3) to allege facts that indicate the accused products have no substantial non-infringing uses and that the accused products are especially made or adapted for infringing uses.
With respect to defendant's first contention, plaintiff responds that it specifically identifies claims 1, 2, 4-8, 19, 20 and 22-26 of the '793 patent. Although plaintiff's amended complaint is perhaps circuitous, it identifies those claims in paragraph 11 thereof. Accordingly, the Court concludes that plaintiff has properly indicated which claims are allegedly subject to contributory infringement.
Next, the Court agrees with plaintiff that it has sufficiently alleged facts of infringement by a third party. To support a claim for contributory infringement, plaintiff must plead enough facts "to allow an inference that at least one direct infringer exists."
Finally, with respect to defendant's third argument, plaintiff responds that it restates the statutory requirements for contributory infringement in 35 U.S.C. § 271(c) "word-for-word." Recitation of the statute is not sufficient, however, to defeat a motion to dismiss. Plaintiff has not pled any facts that show that the accused products have no substantial non-infringing uses or that the accused products are especially made or adapted for infringing uses.
Defendant claims that plaintiff has not stated a claim for induced infringement because plaintiff 1) does not indicate which claims are infringed and 2) does not plead facts explaining that defendant induced a third party.
Both parties agree that to state a claim for induced infringement, plaintiff must allege facts showing that defendant:
As explained above, defendant's first argument is unavailing because plaintiff specifically identifies claims 1, 2, 4-8, 19, 20 and 22-26 in the '793 patent.
Plaintiff also has pled facts sufficient to support an inference that a third party was induced by defendant to infringe the '793 patent. Plaintiff alleges that defendant's marketing materials provide a description of the functionality of the accused products and the intended use of such products and thereby infringes the '793 patent. Such allegations are sufficient to support an inference that there is at least one direct infringer.
Consequently, the Court will deny defendant's motion with respect to plaintiff's induced infringement claim.
Both parties concur that to state a claim for willful infringement, plaintiff must allege facts that show that 1) defendant knew about the patent and 2) knew of his alleged infringement.
Defendant avers that plaintiff has not stated a claim for willful infringement because plaintiff has not sufficiently stated a claim for direct infringement. Plaintiff in response relies on its earlier arguments that it has stated a claim for direct infringement.
Because the Court concluded above that plaintiff has stated a claim for direct infringement, the Court concludes that plaintiff has stated a claim for willful infringement as well. The Court will therefore deny defendant's motion with respect to plaintiff's willful infringement claim.
For the forgoing reasons, the motion of defendant Cimcom Lighting, Inc. to dismiss (Docket No. 20), is, with respect to the claims of direct infringement, induced infringement and willful infringement,