ROGER T. BENITEZ, District Judge.
Pending before the Court is Defendant Novatel Wireless Inc.'s Motion to Dismiss Plaintiff Anza Technology Inc.'s Complaint
Anza Technology, Inc. ("Anza") is a California corporation with its headquarters located in Rocklin, California. (Compl. ¶ 3.) Anza "is a designer, manufacturer, and seller of bonding tools, ESD tools and other products directed to the manufacture and assembly of electronics, in particular the bonding of electrostatic-sensitive devices (ESDs)." (Id.) Plaintiff alleges that Defendant's products infringe certain method claims in two patents, U.S. Patent No. 7,124,927 ("the '927 patent") and U.S. Patent No. 7,389,905 ("the '905 patent") (collectively, the "Asserted Patents"). Anza is owner, by assignment, of the entire right, title, and interest in and to both patents. (Id. ¶¶ 11, 12.)
The '927 patent is entitled "Flip Chip Bonding Tool and Ball Placement Capillary," and the allegedly infringed independent claim 16 is directed to a "method of utilizing a flip chip bonding tool and ball placement capillary in a microelectric assembly."
Novatel Wireless, Inc. ("Novatel") is a Delaware corporation with a principal place of business in San Diego, California. (Id. ¶ 7.) The Complaint identifies that Defendant's accused products "include but are not limited to [Defendant's] wireless hardware based Mobile to Mobile (`M2M') and Mobile Broadband products sold under a Novatel brand or as manufactured and sold under other brands that are manufactured utilizing a `flip-chip' bonding process (the `Accused Products')." (Id. ¶ 8.) Plaintiff alleges that Defendant Novatel "designs, manufactures, and/or assembles products that depend on high density Integrated Circuit (`IC') chips that require special Electrostatic Discharge (`ESD') handling in the Accused Products assembly process." (Id. ¶ 9). Plaintiff further pleads that the "Accused Products utilize a flip chip bonding technique during manufacture and/or assembly. Flip chip bonding is used for packaging integrated circuit devices utilized in the Accused Products and dissipative materials are required during handling so as to reduce electrostatic discharge damage to important components." (Id. ¶¶ 15, 22.) According to Plaintiff, "[f]lip chip bonding in the manner described in claim[s] 16[, 53, and 55] has become the standard for mounting ESD-sensitive devices in order to decrease parasitic resistance, inductance, and capacitance. The method[s] of claim[s] 16[, 53, and 55] to reduce damage to ESD-sensitive devices [are] reflected in a number of manufacturing standards." (Id. ¶¶ 16, 23.)
"Defendant manufacturers [sic] and assembles the Accused Products or contracts with others to manufacture and assemble the Accused Products in compliance with one or more of these ESD standards." (Id. ¶¶ 17, 24.) Additionally, "Defendant manufactures and assembles the Accused Products utilizing conductive adhesive, such as solder, as packaging interconnects in the Accused Products. The packaging interconnects are formed over the wafer in the form of bumps or balls, spherical in shape, which bumps are electrically and thermally conductive. The packaging interconnects—or solder balls—are heated and pressed against die or substrate pads to form a conductive bump or contact point between the die and the flex." (Id. ¶ 18; see also id.¶ 25.)
Based on these allegations, Plaintiff alleges that the "Accused Products, alone or in combination with other products, directly or alternatively under the doctrine of equivalents infringe each of the limitations of independent claim 16 of the '927 patent [and independent claims 53 and 55 of the '905 patent] in violation of 35 U.S.C. § 271(g) when Defendant imports into the United States or offers to sell, sells, or uses within the United States a product which is made by the processes described above." (Id. ¶¶ 19, 26.)
Pursuant to Federal Rule of Civil Procedure 12(b)(6), courts must dismiss complaints that "fail[] to state a claim upon which relief can be granted." Fed. R. Civ. P. 12(b)(6). The Court evaluates whether a complaint supports a cognizable legal theory and states sufficient facts in light of Federal Rule of Civil Procedure 8(a), which requires a "short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8. In patent cases, courts previously looked to Federal Rule of Civil Procedure 84, which in turn referred to "forms in the Appendix." See Rembrandt Patent Innovations LLC v. Apple Inc., Nos. C 14-05094 (WHA), C 14-05093 WHA, 2015 WL 8607390, at *2 (N.D. Cal. Dec. 13, 2015); In re Bill of Lading, 681 F.3d 1323, 1334 (Fed. Cir. 2012) ("[T]o the extent the parties argue that Twombly and its progeny conflict with the Forms and create differing pleadings requirements, the Forms control."). One form in the Appendix was Form 18, a sample complaint for patent infringement that "merely included an allegation that the defendant infringed the asserted patent by making, using, or selling `electric motors' without specifying the model of the accused motors." Rembrandt Patent, 2015 WL 8607390, at *2. In 2012, the Federal Circuit held that a complaint sufficiently pleads direct infringement if it follows Form 18. In re Bill of Lading, 681 F.3d at 1336.
The 2015 Amendments to the Federal Rules abrogated Rule 84, with the notation that it was "no longer necessary." See Fed. R. Civ. P. 84 Advisory Committee's note to 2015 amendment; RAH Color Techs. LLC v. Ricoh USA Inc., No. 2:15-CV-05203-JCJ, 2016 WL 3632720, at *2 (E.D. Pa. July 7, 2016). The 2015 Amendments took effect December 1, 2015. See Fed. R. Civ. P. 84; RAH Color Techs. LLC, 2016 WL 3632720, at *2. The abrogation of Rule 84 and, in turn, Form 18 means that the Rule 8 pleading standards as construed by the Supreme Court in Ashcroft v. Iqbal, 556 U.S. 662 (2009) and Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) govern in patent cases. See, e.g., Footbalance Sys. Inc. v. Zero Gravity Inside, Inc., No. 15-cv-1058 JLS (DHB), 2016 WL 5786936, at *3 (S.D. Cal. Oct. 4, 2016) (applying Twombly/Iqbal pleading standards in light of Rule 84's abrogation); Rembrandt Patent, 2015 WL 8607390, at *2 ("Rule 84 has been abrogated, so In re Bill of Lading no longer controls."); Tannerite Sports, LLC v. Jerent Enters., LLC, No. 6:15-cv-00180-AA, 2016 WL 1737740, *5 (D. Or. May 2, 2016) ("Form 18 is no longer on the table; the Court will apply the Twombly/Iqbal pleading standard."); Rah Color Techs. LLC, 2016 WL 3632720, at *3 ("Following the reasoning of In re Bill of Lading, it appears the Federal Rules' amendment abrogating both Rule 84 and the Appendix of Forms means that claims of direct infringement are now also subject to the Twombly/Iqbal pleading standard.").
Thus, to survive a motion to dismiss, "a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face." Ashcroft v. Iqbal, 556 U.S. 662, 677-78 (2009). "A claim is facially plausible `when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.'" Zixiang Li v. Kerry, 710 F.3d 995, 999 (9th Cir. 2013) (quoting Iqbal, 556 U.S. at 678). When considering a Rule 12(b)(6) motion, the court must "accept as true facts alleged and draw inferences from them in the light most favorable to the plaintiff." Stacy v. Rederite Otto Danielsen, 609 F.3d 1033, 1035 (9th Cir. 2010) (citing Barker v. Riverside Cnty. Office of Educ., 584 F.3d 821, 824 (9th Cir. 2009)). "[W]here the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged—but it has not `show[n]'—`that the pleader is entitled to relief.' Iqbal, 556 U.S. at 679 (quoting Fed. R. Civ. P. 8). "Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice." Id. at 678.
In patent cases, purely procedural issues of law are governed by the law of the regional circuit. K-Tech Telecomms., Inc. v. Time Warner Cable, Inc., 714 F.3d 1277, 1282 (Fed. Cir. 2013). In the Ninth Circuit, to be entitled to the presumption of truth, a complaint "must contain sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively." Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011), cert. denied, 132 S.Ct. 2101 (2012). The Court will grant leave to amend unless it determines that no modified contention "consistent with the challenged pleading . . . [will] cure the deficiency." DeSoto v. Yellow Freight Sys., Inc., 957 F.2d 655, 658 (9th Cir. 1992).
Plaintiff alleges that Defendant infringes the '927 and '905 patents when Defendant, "without authority[,] imports into the United States or offers to sell, sells, or uses within the United States a product which is made by a process patented in the United States." 35 U.S.C. § 271(g). The parties agree that liability under § 271(g) is subject to the same pleading standard as direct infringement under § 271(a). (Mot. at 11-12; Opp'n at 3 (citing McRo, Inc. v. Rockstar Games, Inc., Nos. 12-1513-LPS-CJB, 12-1517-LPS-CJB, 12-1519-LPS-CJB, 2014 WL 1051527, *1 (D. Del. Mar. 17, 2014)).)
To survive a motion to dismiss, "[s]ufficient allegations [of direct infringement] would include, at a minimum, a brief description of what the patent at issue does, and an allegation that certain named and specifically identified products or product components also do what the patent does, thereby raising a plausible claim that the named products are infringing." Bender v. LG Elec., No. C 09-02114, 2010 WL 889541, at * 6 (N.D. Cal. Mar. 11, 2010). In the Ninth Circuit, the accused products must be identified with "at least minimal specificity" so as to adequately put the defendant on notice of the claims against it and the grounds upon which those claims rest. Avocet Sports Tech., Inc. v. Garmin Int'l, Inc., No. C 11-04049, 2012 WL 1030031, at *2 (N.D. Cal. Mar. 22, 2016) (granting motion to dismiss where plaintiff failed to identify "particular products, product lines, or product components that allegedly infringed); Wistron Corp. v. Phillip M. Adams & Assocs., LLC, No. C-10-4458, 2011 WL 4079231, at *4 (N.D. Cal. Sept. 12, 2011) (granting motion to dismiss for failure to specify which products allegedly infringe where counterclaimant pled infringement of "computer chips, motherboards, computers, and `other products'"); Bender, 2010 WL 889541, at *4 (citing cases holding that factual allegations must identify the specific products accused); see also Patent Harbor, LLC v. DreamWorks Animation SKG, Inc., No. 6:11-cv229, 2012 WL 9864381, at *4 (E.D. Tex. July 27, 2012) ("[C]ases involving `more nebulous, less tangible inventions such as computer software methods' may require a higher degree of specificity to provide proper notice to the defendant."). Where the accused products encompass the defendant's entire business, the complaint fails to plead infringement with the requisite specificity. See, e.g., Footbalance Sys. Inc. v. Zero Gravity Inside, Inc., No. 15-cv-1058, 2016 WL 903681, at *4 (S.D. Cal. Feb. 8, 2016) (dismissing direct infringement claims where plaintiff only identified defendant's "custom insoles" as the accused product).
Defendant argues that Plaintiff's Complaint fails to satisfy the pleading requirements for direct patent infringement because "rather than identify specific products and specific details as to how those products allegedly infringe the asserted patents, Plaintiff merely provides conclusory statements alleging that generic categories of [Defendant's] products infringe certain claims." (Mot. at 1). According to Defendant, Plaintiff's Complaint "does not adequately identify the allegedly infringing products, the allegedly infringing flip-chips within any specific products, or how Novatel products allegedly infringe the Asserted Patents." (Id. at 14.) Plaintiff counters that it has sufficiently pled a cause of action under 35 U.S.C. § 271(g) because it has identified a specific method alleged to infringe—the flip chip bonding process—and an identifiable category of products—"wireless hardware based Mobile to Mobile (`M2M') and Mobile Broadband products sold under a Novatel brand or as manufactured and sold under other brands that are manufactured utilizing a `flip chip' bonding process." (Opp'n at 10.)
The Court agrees with Defendant that Plaintiff has failed to sufficiently identify the Accused Products. Plaintiff alleges that certain hardware chips are made by a process— flip chip bonding—that infringes the Asserted Patents. But Plaintiff does not allege that Defendant manufactured the chips. Rather, some third party makes the infringing chips, which are then included in Defendant's products. (Compl. ¶ 9 ("Defendant designs, manufactures and/or assembles products that depend on high density Integrated Circuit (`IC') chips that require special Electrostatic Discharge (`ESD') handling in the Accused Products assembly process." (emphasis added)); ¶ 15 & 22 ("Flip chip bonding is used for packaging integrated circuit devices utilized in the Accused Products." (emphasis added)).) The Accused Products are defined as including, but not being limited to, Defendant's "wireless hardware based Mobile to Mobile (`M2M') and Mobile Broadband products sold under a Novatel brand or as manufactured and sold under other brands that are manufactured utilizing a `flip-chip' bonding process." (Id. ¶ 8.)
Plaintiff's description of the Accused Products provides no specificity about which of Defendant's products include chips made by the infringing process. Worse, it includes non-Novatel branded products that include the infringing chips. And the description fails to provide sufficient factual information to allow Defendant to identify the specific chips made by the infringing process that are included in Defendant's products. Such broad allegations fail to give Defendant notice of what specific products or aspects of its products allegedly infringe. See, e.g., Footbalance Sys., 2016 WL 903681, at *4 (holding that "these allegations are too broad, such that [they] do not satisfy Form 18 standards, as they encompass essentially [defendant's] entire business, leaving [defendants] with no notice as to how [they] allegedly infringe").
Plaintiff contends that it can use the discovery process to narrow its infringement contentions. (Opp'n at 11, 14-15.) It argues that Defendant, rather than Plaintiff, "is in the best position to know who manufactures and/or assembles its Accused Products." (Opp'n at 12.) The Court finds this argument unpersuasive. See Apollo Fin., LLC v. Cisco Sys., Inc., No. 2:15-cv-9696, 2016 WL 3234518, at *3 (C.D. Cal. June 7, 2016) (granting motion to dismiss and rejecting plaintiff's argument that access to discovery would allow it to state its claims with more specificity). In the post Twombly/Iqbal era, the Supreme Court has stated that although "Rule 8 marks a notable and generous departure from the hyper-technical, code-pleading regime of a prior era, . . . . it does not unlock the doors of discovery for a plaintiff armed with nothing more than conclusions. . . . [O]nly a complaint that states a plausible claim for relief survives a motion to dismiss." Ashcroft v. Iqbal, 556 U.S. 662, 678-79 (2009). And, as noted, to state a plausible claim, "most courts have, in the wake of Twombly and Iqbal, required some level of specificity regarding the accused product, i.e., beyond the generic description. . . . Indeed, many courts have even required an exact identification." Footbalance, 2016 WL 903681, at *4. Plaintiff fails to satisfy that standard here.
For the above reasons, the Court
(Compl. Ex. A.)
(Compl. Ex. B.)
The full text of claim 55 of the '905 patent provides:
(Id.)