T.S. ELLIS, III, District Judge.
The remaining, but still numerous, defendants
For the reasons that follow, defendants' motion to dismiss on § 101 and § 112(f) grounds must be granted:
Plaintiff TLI Communications LLC ("TLI"), a Delaware limited liability corporation, is a non-producing entity and the owner by assignment of the '295 patent.
The '295 patent, titled an "Apparatus and Method for Recording, Communicating and Administering Digital Images," is directed to an apparatus and method that
'295 patent, col. l, 1.66-col. 2, 1.4. The '295 patent has 26 claims: 3 independent claims and 23 dependent claims. Independent Claim 1 is a system claim, independent Claim 17 is a method claim, and independent Claim 25 is an apparatus claim.
Independent Claim 1, a system claim, consists of:
The claimed communication system describes two components: (1) at least one telephone unit and (2) a server. The '295 patent specification describes the telephone unit as including the "standard features of a telephone unit including, for example, an earphone ... a keypad ... which serves as an operating field for the telephone unit ... as well as a microphone...." '295 patent, col. 5, ll. 55-58. As Claim 1 indicates, the telephone unit consists of a digital pick up unit, a memory, a means for allocating classification information, and a processor. The digital image pick up unit is integrated into the telephone unit and operates as a "digital photo camera of the type which is known." Id., col. 5, ll. 59-61, col. 6, ll. 1-2. Thus, "recording images" is the function of the digital image pick up unit. Id., col. 5, 1.59. These images may be compressed using "still picture image data compression methods" and are then stored using the telephone unit memory. Id., col. 6, ll. 2-6. Also stored with the digital images is classification information — information associated with the digital images
The second part of the communication system is the server which is comprised of a receiving unit for "receiving the data that is sent from the telephone unit," and an analysis unit, which serves to "analyze the image content and record the image according to the meaning derived from the image analysis." Id., col. 5, ll. 6-8, col. 6, 1.65-col. 7, 1.1. The data is sent from the telephone unit to the receiving unit "via the transmission system." Id., col. 5, ll. 6-7. The server itself then provides a "memory... for storing the data, as well as the digital images which [are] contained in the data." Id., col. 5, ll. 11-13. The classification information is transmitted to the server from the telephone unit and is "used for archiving the images in the server memory." Id., col. 7, ll. 52-55. The classification information "characterize[s] the digital images." Id., col. 2, 1.18.
Dependent claims 2-8 build upon Claim 1 by adding the following limitations to the communication system: wirelessly coupling the transmission system to a telephone unit (Claim 2),
Dependent claim 10 adds an "image analysis unit for determining quality of the digital images." Id., col. 9, ll. 44-45. And dependent claim 11 includes a "control unit for controlling resolution of digital images in said at least one telephone unit." Id., col. 9, ll. 47-49. Dependent claim 15 also includes a control unit, but the control unit
The next independent claim in the '295 patent is the method claim, Claim 17, which describes:
Specifically, the "images are recorded with the digital image pick up unit that is integrated into the telephone unit." Id., col. 7, ll. 57-59. The images are next "stored in digital form in the telephone unit memory... as digital images." id., col. 7, ll. 60-61. The images are then transmitted "from the telephone unit ... to the server ... via the transmission system." Id., col. 7, ll. 61-64. The data is received by "the server... and the classification information ... which characterize[s] the digital images [is] extracted ... from the data received in the server." Id., col. 7, ll. 64-67. Finally, the digital images along with "possibly the classification information ... and potentially further information that characterize[s] or describe[s] the digital images are stored ... in the server." Id., col. 7, l. 67-col. 8, l. 3. The specification notes that during the "storing step, the classification information ... is taken into consideration." Id., col. 8, ll. 3-5. And importantly, the "classification information ... may be prescribed by a user of the telephone unit" Id., col. 8, ll. 6-7.
Claims 18-24 are dependent upon Claim 17 and describe specific types of data which are recognized by the system including: compressed recognized speech (Claim 18),
The third and final independent claim in the '295 patent is Claim 25, an apparatus claim that claims:
Claim 26, which depends upon claim 25, includes the limitation that the "classification information in said portable telephone unit includes a speech recognition unit which converts said audio information from said user to text data that is allocated to the digital still image data." Id., col. 12, ll. 9-13.
Plaintiff initially brought suit for patent infringement against sixteen defendants in the United States District Court for the District of Delaware on November 18, 2013. Defendants jointly moved to dismiss plaintiff's complaints on January 17, 2014. On February 10, plaintiff filed amended complaints in the United States District Court for the District of Delaware against ten of the defendants, and voluntarily dismissed the other six pending suits. The voluntarily dismissed cases were immediately re-filed against the same defendants in the United States District Court for the Eastern District of Virginia, along with an additional case which was filed against two smaller Virginia companies. In response, on February 26, defendant Facebook filed a motion with the Judicial Panel on Multidistrict Litigation ("JPML") to transfer and consolidate pretrial proceedings.
On June 12, 2014, the JPML transferred all 17 infringement suits to the Eastern District of Virginia pursuant to 28 U.S.C. § 1407, citing common questions of fact along with convenience as the primary reasons for consolidating all 17 individual suits into a single multidistrict litigation.
Thereafter, on July 11, defendants Facebook and Instagram moved to slay the multidistrict litigation pending a petition for inter partes review by the Patent and Trademark Office ("PTO") as to the validity of the '295 patent. The remaining defendants in this MDL action subsequently joined the motion. After full briefing and argument, the motion to stay was granted pending the PTO's decision on whether to institute an inter partes proceeding.
Section 101 of Title 35, which defines the subject matter eligible for patent protection, provides as follows:
In two recent decisions — Mayo Collaborative Servs. v. Prometheus Labs., Inc., ___ U.S. ___, 132 S.Ct. 1289, 182 L.Ed.2d 321 (2012) and Alice Corp. Pty. Ltd. v. CLS Bank Int'l, ___ U.S. ___, 134 S.Ct. 2347, 189 L.Ed.2d 296 (2014) — the Supreme Court invalidated patents for failing to pass muster under § 101, and in doing so, significantly altered the § 101 legal landscape. Prior to Alice and Mayo, courts generally regarded § 101 as no more than a "coarse [patent] eligibility filter." Research Corp. Techs., Inc. v. Microsoft Corp., 627 F.3d 859, 869 (Fed.Cir.2010). That description is no longer accurate; Alice and Mayo make clear that § 101 is now a much finer patent eligibility filter. As one district court accurately noted, the Supreme Court, in its last few terms, "has indicated that patentability [under § 101] is a higher bar." Enfish, LLC v. Microsoft Corp., No. 2:12-cv-07360, 56 F.Supp.3d 1167, 1170, 2014 WL 5661456, at *2 (C.D.Cal. Nov. 3, 2014). In part, this shift in the role of § 101 is driven by the concern
Section 101's broad language provides little specific or detailed guidance as to what constitutes patentable subject matter. Nonetheless, over the years, the Supreme Court has carved out three subject matter categories that are not patentable: (i) laws of nature, (ii) natural phenomena, and (iii) abstract ideas. See Alice, 134 S.Ct. at 2354.
Thus, the Supreme Court has crafted a two-step analysis to guide lower courts in the task of distinguishing subject matter eligible for patent protection under § 101 from subject matter ineligible for such protection. The first step in the analysis is to determine whether the claims at issue are directed to one of those "patent-ineligible concepts [laws of nature, natural phenomena, or abstract ideas]." Id. at 2355 (citing Mayo, 132 S.Ct. at 1296-97). An idea is abstract if it has "no particular concrete or tangible form." Ultramercial, 772 F.3d at 715. An abstract idea need not be a "preexisting, fundamental truth" and can instead merely be a "longstanding commercial practice." Alice, 134 S.Ct. at 2356. And a "method that can be performed by human thought alone" is an abstract idea. CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1373 (Fed.Cir.2011). In determining whether an idea in a software patent is abstract, courts must be careful to avoid allowing the typically convoluted claim language — "patent-ese" — to obfuscate the general purpose and real essence of software patent claims.
If it is determined that a claim is directed to an abstract idea then the next step in
Federal Circuit opinions issued since Mayo and Alice have elucidated this two-step analysis. In Ultramercial, the Federal Circuit sought to define what constitutes an abstract idea with somewhat greater precision, noting that an idea is abstract when it has "no particular concrete or tangible form," and is "devoid of a concrete or tangible application." Ultramercial, 772 F.3d at 715.
Less than a month after Ultramercial issued, the Federal Circuit, in DDR Holdings Inc. v. Hotels.com, L.P., 773 F.3d 1245 (Fed.Cir.2014) upheld as patentable under § 101 a software patent that claimed a process of generating a website with the same "look and feel" as the host website when a third-party advertisement was selected by a user. Id. at 1248-49. In reaching this conclusion, the Federal Circuit held first that identifying the abstract idea underlying the patent was difficult, and more importantly, that the patent solved a problem unique to the Internet that did "not arise in the `brick and mortar' context." Id. at 1258. In other words, the patent was valid under § 101 because it did not merely involve an abstract idea, but instead included an inventive concept that addressed a challenge "particular to the Internet." Id. at 1257 (emphasis added). The DDR opinion cautions that "not all claims purporting to address Internet-centric challenges are eligible for patent" protection. Id. at 1258. The opinion then goes on to distinguish
More recently, the Federal Circuit in Content Extraction & Transmission LLC v. Wells Fargo Bank, N.A., 776 F.3d 1343 (Fed.Cir.2014), invalidated a patent that recited a method of (i) extracting data from hard copy documents using an automated digitizing unit such as a scanner, (ii) recognizing specific information from the extracted data, and (iii) storing that information in memory. Id. at 1345-46. Applying the two-step § 101 analysis, the Federal Circuit held first that the patent was directed to an abstract idea, as the "concept of data collection, recognition, and storage is undisputedly well-known." Id. at 1347. The Federal Circuit then found that the patent lacked an inventive concept beyond the use of a generic scanner and computer to perform "well-understood, routine, and conventional activities commonly used in industry." Id. at 1348. Importantly, the Federal Circuit affirmed the district court's methodology in invalidating the patent under § 101 based on a single, "representative" claim, as the district court "correctly determined that addressing each claim of the asserted patents was unnecessary." Id.
The first step of the § 101 analysis with respect to the '295 patent is to "determine whether the claims at issue are directed to a patent-ineligible concept." Alice, 134 S.Ct. at 2355. Thus, in Alice, the Supreme Court focused on all of the claims at a high level of generality to determine that the claims were drawn to the "abstract idea of intermediated settlement." Id. Similarly, in Bilski, the Supreme Court determined that the claims at issue were directed to the "concept of hedging risk." Bilski, 561 U.S. at 609, 130 S.Ct. 3218.
Here, the '295 patent claims at issue are clearly directed to the abstract idea of taking, organizing, classifying, and storing photographs. Nor is there any doubt that the idea of taking, organizing, classifying, and storing photographs qualifies as an abstract idea under Alice and Mayo. It is an abstract idea in that it describes a scheme or concept not tied to a particular concrete application. This conclusion finds firm support from the Federal Circuit's recent decision in Cyberfone Sys., LLC v. CNN Interactive Group, Inc., 558 Fed.Appx. 988, 992 (Fed.Cir.2014), in which the Federal Circuit held that the "well-known concept of categorical data storage, i.e., the idea of collecting information in classified form, then separating and transmitting that information according to its classification is an abstract idea that is not patent eligible." Like the abstract idea of categorical data storage in Cyberfone, the taking, organizing, classifying, and storing of photographs in the '295 patent is a common practice that longpredates computers, as persons have taken, organized, classified, and stored photographs for more than a century without the aid of computers. Thus, this is clearly "a method that can be performed by human thought alone" and is therefore "merely an abstract idea and is not patenteligible under § 101." CyberSource, 654 F.3d at 1373. As such, defendants are correct that at step one of the § 101 analysis, the '295 patent is directed to a patent-ineligible abstract idea.
Importantly, this conclusion applies with equal force to all of the claims in the '295 patent because where, as here, all of the
Plaintiff seeks to avoid this conclusion by arguing insistently that the '295 patent invented something new, and specifically contends (1) that the '295 patent contains novel limitations; (2) that the '295 patent represents an innovative technological development; and (3) that defendants place too much emphasis on whether the concept underlying the '295 patent could be carried out in the human mind independently of computers. Clearly, plaintiff's arguments relate chiefly to the purported novelty of the '295 patent. Yet, plaintiff's focus on novelty is misplaced; it conflates whether a patent is directed to eligible subject matter under § 101 with whether a patent meets § 102's novelty requirement. Indeed, the Supreme Court has unequivocally stated that the two inquiries are separate and distinct: "The question therefore of whether a particular invention is novel is wholly apart from whether the invention falls into a category of statutory subject matter." Diamond v. Diehr, 450 U.S. 175, 190, 101 S.Ct. 1048, 67 L.Ed.2d 155 (1981) (internal quotation marks and citations omitted). In reaching this conclusion, the Supreme Court noted that although § 101 states that "new and useful" processes are eligible for patent protection, such a statement is simply a "general statement of the type of subject matter that is eligible for patent protection `subject to the conditions and requirements of this title.'" Id. at 189, 101 S.Ct. 1048. As such, the Supreme Court emphasized that the § 101 inquiry is distinct from other "[s]pecific conditions of patentability" including "§ 102 [which] covers in detail the conditions relating to novelty." Id.
In a similar vein, plaintiff argues that the '295 patent is not directed to a longstanding practice or idea because the idea of telephones transmitting digital images to servers is a recent technological development. This argument, like the previous argument, fails because it improperly imports novelty into the first step of the § 101 analysis. Moreover, the argument also fails because it focuses incorrectly on a concrete application of the idea — transmitting digital images to servers — instead of properly focusing at a higher level of generality on the abstract idea or concept underlying the '295 patent. Indeed, Alice supports rejection of plaintiff's novelty arguments. In Alice, the claim at issue recited a method for creating shadow records for each counter-party to a transaction, obtaining start-of-day balances based on the parties' accounts, and adjusting the shadow records as transactions occurred. See Alice, 134 S.Ct. at 2359. Despite these complex steps, the Supreme Court, at step one of the § 101 analysis, distilled the claim there in issue to its essential purpose, finding that the claim was directed to the concept of "intermediated settlement." Id. at 2356. Similarly, the concept underlying the '295 patent is the longstanding abstract idea of taking, organizing, classifying, and storing photographs.
Plaintiff also contends that it is irrelevant that human beings could carry out the abstract idea underlying the '295 patent independently of computers. Although plaintiff is correct that this is not dispositive as to whether a patent is invalid under § 101, it is nonetheless a relevant consideration in determining whether a patent is directed to an abstract idea within the meaning of Alice because as the Federal Circuit leaches in CyberSource, "a method that can be performed by human thought alone is merely an abstract idea and is not patent-eligible under § 101." CyberSource,
In sum, the result of the first step of the § 101 analysis is that the '295 patent and its claims are clearly and convincingly directed to the abstract idea of taking, organizing, classifying, and storing photographs.
The heart of the parties' § 101 dispute — and in large measure, the heart of every post-Alice § 101 dispute — is step two of the § 101 analysis, i.e., whether the '295 patent contains an inventive concept such that, coupled with its claimed abstract idea, the '295 patent is eligible for patent protection under § 101. The parties' arguments on this issue focus primarily on Claim 17, and, as such, the § 101 analysis proceeds with respect to Claim 17 before examining whether the same result applies to the other '295 patent claims.
Plaintiff contends that Claim 17 contains an inventive concept because it utilizes an "intelligent" server which performs a variety of inventive functions. Defendants, meanwhile, argue that the only functions performed by the computer in Claim 17 are the routine and generic processing and storing capabilities of computers generally, and thus, defendants contend that Claim 17 does not contain an inventive concept.
Defendants are correct that Claim 17 does not include or add an inventive concept and is therefore directed to ineligible subject matter under § 101. This is so because:
Each of these points is addressed in turn.
The crux of the parties' dispute at the second step of the § 101 analysis is the role the computer plays in Claim 17, for it is clear that the "mere recitation of a generic computer cannot transform a patent-ineligible abstract idea into a patent-eligible invention." Alice, 134 S.Ct. at
The method claimed in Claim 17 consists of:
Thus, by the terms of Claim 17, the server performs three functions: (1) it receives data — digital images and classification information — entered or inputted by the user; (2) it extracts from the received data the classification information which characterizes the digital images; and (3) it stores the digital images by taking the classification information into consideration. Defendants are correct that each of these activities is a routine, conventional activity that a generic computer can perform, and therefore, Claim 17 includes no inventive concept.
It is undisputed that the ability for a "computer [to] receive[] and send[] information over a network — with no further specification — is not even arguably inventive." buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1355 (Fed.Cir.2014); see also CyberSource, 654 F.3d at 1372 ("[E]ven if some physical steps are required to obtain information ... such data-gathering steps cannot alone confer patentability."). Indeed, it is difficult to conceive of a more conventional computer activity than the receipt of data. Alice confirms this result, as the computers in the patent at issue in Alice were used to exchange and transmit data over networks, yet ultimately, the claims at issue in Alice were invalidated for lacking an inventive concept under § 101. See Alice, 134 S.Ct. at 2357-58. Thus, the first claimed function of the server in Claim 17 hardly makes the server distinctively or inventively "intelligent," and as such, plaintiff cannot rely on the ability of the server to receive data as a basis for an inventive concept.
The second role the server plays in Claim 17 — extracting the classification information — is similarly unavailing for plaintiff, for this too is no more than a routine, conventional computer function
This conclusion that the extraction step can be performed by a generic computer is confirmed by the '295 patent specification, which notes that:
'295 patent, col. 3, ll. 52-63. Distilled to its essence, the classification information described in the '295 patent, which is entered or inputted by the user, may include the time at which the pictures were taken or the time at which the pictures were transmitted to the server. The extraction step simply involves a computer receiving this classification information that applies to the photographs and using the classification information to organize the photographs. But such a step is not a meaningful limitation on the monopoly claimed in Claim 17 because, as another district court correctly noted concerning a similar computer function, "[h]umans engaged in this sort of indexing long before this patent, and the claim does not put forth an innovative and unconventional method of indexing." Enfish, 56 F.Supp.3d at 1177, 2014 WL 5661456, at *8. Here too, Claim 17's method of extracting classification information is not unique. Photographs are classified using certain metrics — e.g., time — and then organized in a directory accordingly, which does not require anything other than a generic computer, especially considering that human beings have created photo albums in essentially this way for more than a century. What is dressed up in the "patent-ese"-type convoluted language is nothing more than categorizing photographs based on when they were taken or on some other characteristic or basis.
The final role the server plays in Claim 17 is taking the classification information into account in storing the digital images. This computer function and capability is hardly groundbreaking; data storage is perhaps the textbook example of a conventional computer function. See Alice, 134
In sum, the server in Claim 17 performs the same three functions as the computer in Wells Fargo, and because the concept of "data collection, recognition, and storage is undisputedly well-known," plaintiff's assertion that the '295 patent involves an "intelligent" server fails. Wells Fargo, 776 F.3d at 1347. Federal Circuit precedent is clear and convincing that the computer in the '295 patent is simply a generic computer performing conventional functions and, as such, the server cannot save the '295 patent from failing to pass muster under § 101. See id.
At oral argument, plaintiff's counsel presented an additional argument for labeling the server "intelligent," namely the ability of the server in the '295 patent to "talk" with the telephone unit. But Wells Fargo also forecloses this argument. In Wells Fargo, the Federal Circuit rejected the argument that the patent at issue was valid under § 101 because it involved "not only a computer but also an additional machine — a scanner." Id. Even though the scanner was used to extract data which was then transmitted to a computer, the Federal Circuit held that there was no inventive concept in the "use of a generic scanner and computer to perform wellunderstood, routine, and conventional activities commonly used in industry." Id. at 1348 (emphasis added). Similarly here, although Claim 17 involves both a telephone unit and a server, both operate in a conventional and generic manner, and the fact that the computer can receive data from the telephone unit is insufficient to constitute an inventive concept.
Plaintiff also relies chiefly on the Federal Circuit's opinion in DDR to support its argument. Specifically, plaintiff argues that like the patent at issue in DDR, Claim 17 is "necessarily rooted in computer technology" and is directed to "purely technological issues" instead of a "business challenge."
Plaintiff further argues that Claim 17 is more inventive than the patents invalidated in Digitech Image Techs., LLC v. Elecs. for Imaging Inc., 758 F.3d 1344 (Fed.Cir. 2014) and Cyberfone. Plaintiff contends that in Digitech, the patent claimed a "device profile" and a method "for generating a device profile" without any corresponding tangible or concrete components, while, by contrast, Claim 17 discloses numerous pieces of hardware. See Digitech, 758 F.3d at 1349, 1351. It is true that in Digitech, the Federal Circuit found the patent invalid chiefly because of a complete absence of concrete components related to the abstract idea. See id. at 1351 ("The ... claim thus recites an ineligible abstract process of gathering and combining data that does not require input from a physical device."). But the fact that Claim 17 discloses more hardware than the patent invalidated in Digitech does not automatically confer patentability on the '295 patent. Indeed, plaintiff overlooks the fact that disclosure of structure and concrete components is insufficient when those disclosures are generic and do not operate as meaningful limitations on the boundaries of the patent. For example, plaintiff argues that in "stark contrast [to Digitech], here the '295 patent claims ... a specific structure and devices, namely a telephone unit ... and a server...."
Plaintiff attempts to distinguish Cyberfone by arguing that the telephone in Cyberfone did not play an integral role in the patent at issue, whereas the server in Claim 17 is integral to the method claimed in Claim 17. This argument misses the mark; although the server in Claim 17 is indeed integral to Claim 17, it only performs generic functions which do not save Claim 17 from falling outside the ambit of § 101. Plaintiff also overlooks the fact that the patent invalidated in Cyberfone, like Claim 17, "separate[s] and transmit[s]... information according to its classification." Cyberfone, 558 Fed.Appx. at 992. In essence, plaintiff's arguments all stem from plaintiff's belief that the server in Claim 17 is inventive and "intelligent." Yet plaintiff's contention that the described server is both novel and "intelligent" is simply a semantics game that hides the plain truth: the server in Claim 17 is a generic computer that is no more
For similar reasons, Claim 17 also fails the machine-or-transformation test. It is first worth noting that the role of the machine-or-transformation analysis after Alice is, at best, unclear. The Supreme Court rejected the machine-or-transformation test as the "sole test" for patentability in Bilski, but reiterated that it remains an "important and useful clue." Bilski, 561 U.S. at 603, 130 S.Ct. 3218. The Supreme Court did not address the relevance of the machine-or-transformation test in Alice, but in the wake of Alice, both the Federal Circuit and a number of district courts have examined patents using the machine-or-transformation test as one tool to aid in the § 101 analysis.
Plaintiff contends that Claim 17 passes the machine-or-transformation test because it is tied to a "particular intelligent server."
Plaintiff also argues that Claim 17 contains an inventive concept based on the claim's limitations, including (i) the server, (ii) the use of a telephone unit, and (iii) the evaluation of classification information in storing digital images, and that these limitations do not constitute a monopoly on a longstanding practice. This argument also fails.
First, the asserted limitations in Claim 17 related to the server do not make Claim 17 patentable because the functions of the server in Claim 17, as noted, can be performed by any generic computer. Thus, accepting plaintiff's argument would allow plaintiff dominion over a broad swath of technology related to automating the process of taking, organizing, classifying, and storing photographs. Nor does the use of a telephone unit place a meaningful boundary on Claim 17 because as the '295 patent specification notes, "[s]o called cellular telephones may be utilized for image transmission, as is known." '295 patent, col. l, ll. 31-34 (emphasis added). As such, the telephone unit limitation is another example of generic hardware which does not save Claim 17 because it is not inventive.
Nor is the "ordered combination" of steps in Claim 17 patentable because like the patent at issue in Alice, the steps of Claim 17 add "nothing ... that is not already present when the steps are considered separately." Alice, 134 S.Ct. at 2359 (internal quotation marks and citations omitted). Plaintiff does not argue otherwise; plaintiff's arguments are devoted to what it believes are meaningful limitations in the form of the server and the telephone unit, respectively, but plaintiff does not ever contend that the order of the steps in Claim 17 or in any other claim in the '295 patent is unique in some way. Indeed, the outcome is no different when Claim 17 is evaluated as an "ordered combination" because the claim recites nothing more than the concept of taking, organizing, classifying, and storing photographs as performed by a generic computer. See DietGoal, 33 F.Supp.3d at 288 (claims of patent at issue were invalid because they were directed to "nothing more than the concept of [meal planning] as performed by a generic computer").
Although the Federal Circuit has held that considering every claim of a patent is unnecessary in the § 101 inquiry, it is still worth examining briefly dependent Claims 18-24. Dependent claims 18-20 limit Claim 17 to the incorporation and processing of "audio data" and "speech." But the Supreme Court has held that limiting "an abstract idea to one field of use ... [does]
Plaintiff's counsel, at oral argument on January 30, contended that the result reached with respect to Claim 17 is inapplicable to Claims 1 and 25 because Claim 17 is not representative of the other two independent claims. Specifically, plaintiff's counsel focused on the "means for allocating" limitation in Claims 1 and 25 as making those claims "substantively different" from Claim 17.
First, plaintiff's argument takes too narrow a view of what a "representative" claim is. The Federal Circuit has stated that when a "system claim and method claim contain only `minor differences in technology [but] require performance of the same basic process' ... they should rise or fall together." Accenture Global Servs., GmbH v. Guidewire Software, Inc., 728 F.3d 1336, 1344 (Fed.Cir.2013). Thus, in Accenture, the Federal Circuit held that the presence of "four additional limitations" did not "meaningfully distinguish" the system claim from the method claim. Id. And the Federal Circuit reached a similar conclusion in Wells Fargo, noting that a "representative" claim is one that is "substantially similar and linked to the same abstract idea," Wells Fargo, 776 F.3d at 1348.
Here, the '295 patent specification describes the invention as relating to "an apparatus for recording of a digital image, communicating the digital image from the recording device to a storage device, and to administering the digital image in the storage device." '295 patent, col. l, ll. 7-9. In discussing the method claim, the specification notes that the invention relates to a "method for recording, communicating and administering the digital image." Id., col. l. ll. 11-12. By the patent's own terms, then, the apparatus and method claims require "performance of the same basic process." Accenture, 728 F.3d at 1344. Indeed, Claim 1, Claim 17, and Claim 25 are all directed to the same process of taking, organizing, classifying, and storing photographs, and are therefore "substantially similar and linked to the same abstract idea." Wells Fargo, 776 F.3d at 1348. And the fact that Claims 1 and 25 contain the "means for allocating" limitation does not change this conclusion, as the "means for allocating" limitation is part of the same underlying process described in Claims 1, 17, and 25. Thus, plaintiff is incorrect; based on Federal Circuit precedent, Claims 1, 17, and 25 recite "the [same] abstract idea implemented on a generic computer" and therefore, Claim 17 is representative of the other two independent claims in the '295 patent. Alice, 134 S.Ct. at 2360.
Second, the "means for allocating" limitation in Claims 1 and 25 does not constitute an inventive concept. Although plaintiff is correct that "allocating" data is not a generic computer function in the same
Id. at 1333 (internal quotation marks and citations omitted). Here, too, "MZ" is an undefined black box and the '295 patent is silent as to how "MZ" operates to allocate classification information. In that respect, the "means for allocating" limitation is another example of an "undefined phrase" which is "no less abstract" than the idea of taking, organizing, classifying, and storing photographs. Id.
Moreover, in its response brief, plaintiff explicitly acknowledges that allocation of classification information is "nothing more complex than simply associating classification information with digital images" and that the "patent does not purport to claim a novel method for the trivial task of how to associate one piece of digital information with another piece of digital information. Those methods were well-known at the time."
Thus, Claims 1 and 25 of the '295 patent are not eligible for protection under § 101 merely because they describe an additional component — "MZ" — that is a complete abstraction; a contrary holding would allow patent applicants to circumvent Alice by tacking on undescribed, undefined components to otherwise patent-ineligible material. Such undefined abstract components do not supply the inventive concept required under § 101.
A final issue — whether the clear and convincing evidence standard is applicable to § 101 challenges — merits mention especially because the parties dispute this issue. Plaintiff contends that well-settled law requires application of the clear and convincing standard to § 101 determinations, whereas defendants contend that the clear and convincing evidentiary standard is inapplicable to § 101 determinations as such determinations are questions of law. This dispute stems in large measure from Justice Breyer's concurrence in Microsoft v. i4i Ltd. P'Ship, ___ U.S. ___, 131 S.Ct. 2238, 180 L.Ed.2d 131 (2011). There, Justice Breyer noted that the clear and convincing evidence standard "applies to questions of fact and not to questions of law" and "[w]here the ultimate question of patent validity turns on the correct answer to legal questions — what these subsidiary legal standards mean or how they apply to the facts as given — today's strict standard of proof has no application." Id. at 2253 (emphasis added). Interestingly, no other opinion in Microsoft addresses this issue, and neither the Supreme Court nor the Federal Circuit has revisited the standard of proof applicable to § 101 challenges since Microsoft.
In addition to arguing that the '295 patent is directed to ineligible subject matter under § 101, defendants further argue that a number of the claims in the '295 patent are fatally indefinite pursuant to 35 U.S.C. § 112(f). Specifically, defendants contend that Claims 1 and 25 in the '295 patent use the term "means" and are therefore means-plus-function claims that are fatally indefinite because the '295 patent fails to disclose corresponding structure or an algorithm for performing the claimed function.
Section 112(f) of the Patent Act allows an applicant to state a claim in the form of means for performing a specific function without reciting in the claim the structure corresponding to that function.
Analysis of means-plus-function terms proceeds in two steps. First, a determination is made "if the claim limitation is drafted in the means-plus-function format." Robert Bosch, LLC v. Snap-On Inc., 769 F.3d 1094, 1097 (Fed.Cir.2014). In this respect, the use of the term "means" triggers a "rebuttable presumption that § 112 [(f)] governs the construction of the claim term." Id. By contrast, where the claim language does not recite the term "means," the presumption is that the limitation "does not invoke § 112 [(f)]." Id. The use of the word "means" is central to the analysis, and thus, the "presumption flowing from the absence of the term `means' is a strong one that is not readily overcome." Inventio AG v. ThyssenKrupp Elevator Americas Corp., 649 F.3d 1350, 1356 (Fed.Cir.2011).
If it is determined that the claim term is a means-plus-function term, then the second step in the analysis is to determine if there is any "corresponding structure, material, or acts described in the specification to which the claim term will be limited." Bosch, 769 F.3d at 1097 (internal quotation marks and citations omitted). The specification of a patent is a valid source of structure for claims written in the means-plus-function format, as a "structure disclosed in the specification qualifies as a `corresponding structure' if the specification or the prosecution history `clearly links or associates that structure to the function recited in the claim.'" Noah Sys., Inc. v. Intuit Inc., 675 F.3d 1302, 1311 (Fed.Cir.2012) (internal citations omitted).
Importantly, and particularly pertinent to this case, Federal Circuit precedent is clear that computer implemented means-plus-function terms are subject to additional structural requirements under § 112(f). Thus, the Federal Circuit has held that in cases involving computer-implemented inventions, the structure disclosed must be "more than simply a general purpose computer or microprocessor." Net MoneyIN, Inc. v. VeriSign, Inc., 545 F.3d 1359, 1367 (Fed.Cir.2008) (internal quotation marks and citations omitted). Therefore, "[c]omputer-implemented means-plus-function claims are indefinite unless the specification discloses an algorithm to perform the function associated with the limitation." Noah Sys., 675 F.3d at 1319; see also Augme Techs., Inc. v. Yahoo! Inc., 755 F.3d 1326, 1337 (Fed.Cir.2014) ("[T]he specification must disclose an algorithm for performing the claimed function."). Importantly, the Federal Circuit has crafted a narrow exception to the requirement that an algorithm must be disclosed for a computer-implemented means-plus-function term. This exception operates to eliminate a requirement for an algorithm where a computer-implemented means "can be achieved by any general purpose computer without special programming." Ergo Licensing, LLC v. CareFusion 303 Inc., 673 F.3d 1361, 1364-65 (Fed.Cir.2012) (citing In re Katz, 639 F.3d 1303, 1316 (Fed.Cir.2011)). Thus, for example, disclosure of a general purpose computer will suffice as structure corresponding to the generic functions of "processing," "receiving," and "storing." Id. at 1365. But if "special programming is required for a general-purpose computer to perform the corresponding claimed function, then the default rule requiring disclosure of an algorithm applies." Id.
These principles govern the interpretation of the means-plus-function terms in the '295 patent. Claim 1 is directed to a telephone unit, which includes: "
Defendants argue that the only disclosure corresponding to the means for allocating classification information in both Claims 1 and 25 is the "classification information allocator," labeled as "MZ" in Figure 2 of the '295 patent specification. See '295 patent, Fig. 2. Defendants contend that this disclosure is a black box disclosure that does not adequately describe how the classification information is allocated, and that apart from the box labeled "MZ," the specification neither provides nor describes any algorithm or explanation as to how the classification information is allocated. Plaintiff, in response, argues that the '295 patent specification contains numerous examples of hardware which a person of ordinary skill in the art would understand as structure for allocating classification information and that the specification does disclose an algorithm as to how classification information is allocated. A review of relevant case law, as well as both parties' expert declarations, points clearly and convincingly to the conclusion that defendants are correct; Claims 1 and 25 are invalid as fatally indefinite because there is no discernible structure or algorithm in the specification corresponding to or describing the means for allocating classification information claimed in Claims 1 and 25 of the '295 patent.
Specifically, defendants are correct that the '295 patent's disclosure of a "classification
Federal Circuit authority confirms this result, in ePlus, Inc. v. Lawson Software, Inc., 700 F.3d 509, 518 (Fed.Cir.2012), the Federal Circuit invalidated a patent under § 112(f) which disclosed a "purchase orders" step because this disclosure was "just a black box that represents the purchase-order generation function without any mention of a corresponding structure." Id. Ultimately, because there was "no instruction for using a particular piece of hardware, employing a specific source code, or following a particular algorithm," the claim was fatally indefinite. Id. at 519.
The Federal Circuit reached a similar result in Blackboard, where the patent at issue claimed a server computer comprised of:
Blackboard, 574 F.3d at 1382. The Federal Circuit rejected the argument that the disclosure of an "access control manager" was a description of corresponding structure because: "what the patent calls the `access control manager' is simply an abstraction that describes the function of controlling access to course materials, which is performed by some undefined component of the system." Id. at 1383 (emphasis added). In reaching its decision in Blackboard, the Federal Circuit also noted that whether one of ordinary skill in the art could have devised a means to carry out the recited function "conflates the definiteness requirement of section 112, paragraphs 2 and 6, and the enablement requirement of section 112, paragraph 1." Id. at 1385; see also ePlus, 700 F.3d at 519 ("The indefiniteness inquiry is concerned with whether the bounds of the invention are sufficiently demarcated, not with whether one of ordinary skill in the art may find a way to practice the invention.").
Plaintiff offers a number of arguments in response, none of which are persuasive. First, plaintiff argues that the specification teaches a person of ordinary skill in the art that the entry of classification information data is necessarily associated with digital images. Although this may be true, it will not save claims, as here, that disclose only a black box, "MZ," to perform the function of allocation. Moreover, the mere fact that classification information is associated with digital images is insufficient to constitute structure; it is akin to describing the "inputs" and "outputs" from the system without disclosing structure for carrying out the claimed function. See Augme, 755 F.3d at 1338 (claim was indefinite because it disclosed "inputs to and outputs from the code assembler instructions, but [did] not include any algorithm...."). For similar reasons, the specification's disclosures of a data processor for processing the digital images and a telephone unit for storing the images are inadequate because these structures are not tethered to the function of allocating classification information. See, e.g., Ergo, 673 F.3d at 1364 ("The specification discloses that the control device has memory, but memory is not structure capable of performing the function [at issue]. While in some circumstances generic structural disclosures may be sufficient, that is not the case here.").
Plaintiff further contends that "MZ" is not a black box because the specification states that "MZ" may be integrated into the keypad. But this contention misses the mark. Although it is true that the patent specification discloses that a user can use the "MZ" box to enter data through the keypad, "MZ" is still a black box with respect to how "MZ" operates to allocate classification information. The keypad, in other words, is a structure for entering data comprised in part of classification information, but is not a structure for the subsequent function of allocating that classification information. Plaintiff then argues that the specification's disclosure of an ASCII generator is structure one of ordinary skill in the art would understand as allocating classification information to the digital image. This argument suffers from two fatal flaws. First, plaintiff's assertion conflates the enablement and definiteness inquiries. Indeed,
For similar reasons, plaintiff's argument with respect to "header fields" must be rejected. Plaintiff contends that because the '295 patent teaches that information can be included as a header field, and that anyone of "ordinary skill in the art knows how to classify and allocate data with other data," an algorithm is disclosed via the header field as this is "Computer Science 101."
Finally, plaintiff attempts to save Claims 1 and 25 by pointing to what it believes is an algorithm: "One of ordinary skill in the art reading the specification readily understands the algorithm for allocating classification information is causing the classification information data to be associated with the digital images, e.g., to be transmitted with each other in a data stream."
An examination of the parties' respective expert reports confirms that Claims 1 and 25 are invalid as indefinite. Plaintiffs expert report largely parrots the arguments plaintiff made in its response brief. This expert report merely notes conclusorily that "the specification discloses structure for allocating classification information to the digital image when a user inputs classification information through the various inputs of the phone" and that making an association "between classification information data and digital image data in view of the specification ... would have been straightforward for one of ordinary skill in the art."
In sum, the '295 patent lacks any adequate structure or algorithm in any form that describes how classification information is allocated. Indeed, the problem is "not the adequacy of the substance or form of the disclosure, but the absence of any disclosure at all." ePlus, 700 F.3d at 520. As in ePlus, there is no recitation in simple prose, a flow chart, or otherwise in the '295 patent that can be construed as an algorithm corresponding to the means-plus-function term in Claims 1 and 25. Therefore, the record clearly and convincingly reflects that Claims 1 and 25, and by extension, dependent Claims 2-16 and 26, are invalid as indefinite because the specification of the '295 patent does not disclose corresponding structure in the form of an algorithm for the claimed function of allocating classification information.
In sum, all of the claims in the '295 patent are invalid under Section § 101 as they are directed to patent-ineligible subject
An appropriate Order will issue.