STARK, U.S. District Judge:
Pending before the Court is Defendant Google, Inc.'s ("Google" or "Defendant") motion for summary judgment of invalidity of U.S. Patent No. 5,884,270 ("the '270 patent") and U.S. Patent No. 5,884,272 ("the '272 patent") for lack of patentable subject matter. (D.I. 250) The parties completed briefing on May 7, 2014. (D.I. 289) The Court held oral argument on August 26, 2014. (See Transcript ("Tr.")) For the reasons discussed below, the Court will grant Defendant's motion.
Plaintiff Walker Digital, LLC ("Walker" or "Plaintiff') filed this case against Google and several other defendants on April 11, 2011. (D.I. 1) Walker subsequently entered into license agreements with all defendants except Google. (See D.I. 4, 19, 34, 37, 72, 95, 224) Google filed its answer and counterclaims against Walker on July 15, 2011. (D.I. 38) The Court construed certain claim terms of the patents-in-suit
Walker asserts that Google infringes independent claims 1 and 23 and dependent claims 2, 5, 10, 11, 24, 27, 32, and 33 of the '270 patent, as well as independent claims 1 and 65 and dependent claims 2-4, 9-11, 19, 27, 28, 31, and 32 of the '272 patent. (D.I. 105 at 1 n.1) Both patents contain nearly identical specifications, were filed September 6, 1996, and issued on March 16, 1999. (D.I. 100 Ex. A, B)
The '270 patent is entitled "Method and System for facilitating an employment search incorporating user-controlled anonymous communications." The '272 patent is entitled "Method and System for establishing and maintaining user-controlled anonymous communications." The patents relate generally to "controlling the release of confidential or sensitive information of at least one of the parties in establishing anonymous communications." ('270 patent col. 1:11-14; '272 patent col. 1:11-14)
Google contends that the asserted claims of the patents-in-suit are invalid under 35 U.S.C. § 101 due to lack of patentable subject matter because the claims are directed at "a purely mental process that could be performed without the aid of a computer." (D.I. 251 at 6) According to Google, the "claimed invention is directed to nothing more than the abstract idea of an exchange of information about people, long practiced by human matchmakers, simply appended to a general computer system to accelerate the process." (Id.) Google essentially argues that "[t]his is similar to the kind of `organizing human activity' at issue in, [and found unpatentable by], Alice." Planet Bingo, LLC v. VKGS LLC, 576 Fed.Appx. 1005, 1008, 2014 WL 4195188, at *2 (Fed.Cir. Aug. 26, 2014) (citing Alice Corp. Pty. Ltd. v. CLS Bank Int'l, ___ U.S. ___, 134 S.Ct. 2347, 2356, 189 L.Ed.2d 296 (2014)).
Walker responds that Google's arguments lack merit. According to Walker, the Court may only find the patents invalid for lack of patentable subject matter if the patents preempt the entire idea of "controlled information exchange between anonymous parties." It follows, in Walker's view, that if it is possible to engage in "controlled information exchange between anonymous parties" in a manner that does not infringe the patents-in-suit, then the patents are not invalid for lacking patentable subject matter. (Tr. at 39-41)
Pursuant to Rule 56(a) of the Federal Rules of Civil Procedure, "[t]he court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. See Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 585-86, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). An assertion that a fact cannot be — or, alternatively, is — genuinely disputed must be supported either by citing to "particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials," or by "showing that the materials cited do not establish the absence or presence of a genuine dispute, or that an adverse party cannot produce admissible evidence to support the fact." Fed. R. Civ. P. 56(c)(1)(A) & (B). If the moving party has carried its burden,
To defeat a motion for summary judgment, the nonmoving party must "do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita, 475 U.S. at 586, 106 S.Ct. 1348; see also Podobnik v. U.S. Postal Serv., 409 F.3d 584, 594 (3d Cir.2005) (stating party opposing summary judgment "must present more than just bare assertions, conclusory allegations or suspicions to show the existence of a genuine issue") (internal quotation marks omitted). However, the "mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment;" a factual dispute is genuine only where "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). "If the evidence is merely colorable, or is not significantly probative, summary judgment may be granted." Id. at 249-50, 106 S.Ct. 2505 (internal citations omitted); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (stating entry of summary judgment is mandated "against a party who fails to make a showing sufficient to establish the existence of an element essential to that party's case, and on which that party will bear the burden of proof at trial"). Thus, the "mere existence of a scintilla of evidence" in support of the nonmoving party's position is insufficient to defeat a motion for summary judgment; there must be "evidence on which the jury could reasonably find" for the nonmoving party. Anderson, 477 U.S. at 252, 106 S.Ct. 2505.
Under 35 U.S.C. § 101, "[w]hoever invents or discovers any new and useful process, machine, manufacture, 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." There are three exceptions to § 101 `s broad patent-eligibility principles: "laws of nature, physical phenomena, and abstract ideas." Diamond v. Chakrabarty, 447 U.S. 303, 309, 100 S.Ct. 2204, 65 L.Ed.2d 144 (1980). Pertinent here is the third category. "The `abstract ideas' category embodies the longstanding rule that an idea of itself is not patentable." Alice, 134 S.Ct. at 2355 (internal citations omitted). "As early as Le Roy v. Tatham, 55 U.S. (14 How.) 156, 175, 14 L.Ed. 367 (1852), the Supreme Court explained that `[a] principle, in the abstract, is a fundamental truth; an original cause; a motive; these cannot be patented, as no one can claim in either of them an exclusive right.' Since then, the unpatentable nature of abstract ideas has repeatedly been confirmed." In re Comiskey, 554 F.3d 967, 977-78 (Fed.Cir.2009).
In Mayo Collaborative Servs. v. Prometheus Labs., Inc., ___ U.S. ___, 132 S.Ct. 1289, 182 L.Ed.2d 321 (2012), the Supreme Court set out a two-step "framework for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts." Alice, 134 S.Ct. at 2355. First, courts must determine if the claims at issue are directed at a patent-ineligible concept. Id.
"Simply appending conventional steps, specified at a high level of generality, [is] not
In determining if a patent embodies such an inventive concept, courts may consider whether the process "is tied to a particular machine or apparatus" or "transforms a particular article into a different state or thing." Bilski, 130 S.Ct. at 3227 ("[T]he machine-or-transformation test is a useful and important clue, an investigative tool, for determining whether some claimed inventions are processes under § 101."). "[T]o impart patent-eligibility to an otherwise unpatentable process under the theory that the process is linked to a machine, the use of the machine must impose meaningful limits on the claim's scope." CyberSource Corp. v. Retail Decisions, Inc., 654 F.3d 1366, 1375 (Fed.Cir. 2011) (internal quotation marks omitted). To be "a meaningful limit on the scope of a claim," the addition of a machine "must play a significant part in permitting the claimed method to be performed, rather than function solely as an obvious mechanism for permitting a solution to be achieved more quickly." SiRF Tech., Inc. v. Int'l Trade Comm'n, 601 F.3d 1319, 1333 (Fed.Cir.2010). Hence, the "mere recitation of a generic computer cannot transform a patent-ineligible abstract idea into a patent-eligible invention." Alice, 134 S.Ct. at 2358. "Given the ubiquity of computers, wholly generic computer implementation is not generally the sort of additional feature that provides any practical assurance that the process is more than a drafting effort designed to monopolize the abstract idea itself." Id.
Although the "machine-or transformation test is a useful and important clue" to determining patentability, it is "not the sole test for deciding whether an invention is a patent-eligible `process.'" Bilski, 130 S.Ct. at 3227. "[I]n applying the § 101 exception, [courts] must distinguish between patents that claim the building blocks of human ingenuity and those that integrate the building blocks into something more thereby transforming them into a patent-eligible invention." Alice, 134 S.Ct. at 2354 (internal citations omitted). The "concern that drives the exclusionary principle [i]s one of pre-emption." Id. That is, where a "patent would pre-empt use of basic tools of scientific and technological work, i.e., laws of nature, natural phenomena, and abstract ideas, the patent would "impede innovation more than it would tend to promote it, thereby thwarting the primary object of the patent
Claims 2, 5, 10, and 11 of the '270 patent are all method claims and all depend from the method claim recited in independent claim 1. Claims 23, 24, 27, 32, and 33 are all system claims that are directly analogous to the methods recited in claims 1, 2, 5, 10, and 11.
Independent claim 1 recites as follows:
Dependent claim 2 recites:
Dependent claim 5 recites:
Dependent claim 10 recites:
Dependent claim 11 recites:
Google contends that, in each asserted claim, the claimed invention is directed to "nothing more than the abstract idea of a controlled exchange of information about people that has long been practiced by human matchmakers or headhunters." (D.I. 289 at 5) The patent specification recognizes that in the prior art, "to find potential candidates" companies would "engage an employment search firm to discretely find potential candidates without disclosing to the market, or even potential candidates, the company's identity until the company decides to confide in or hire a particular candidate." ('270 patent col. 2:42-47) Similarly, in the context of dating, "a person could serve as a match-maker by setting up two people with whom he is acquainted on a blind date." § Id. at col. 3:47-49) Given the prior art, the invention was purportedly necessary to create "a system that allows users to [1] exercise control over the release of information to others and [2] provides efficient anonymous communication." § Id. at col. 4:9-11)
Plaintiff, through the testimony of its expert, Dr. Craig Wills, asserts that the methods and systems of the '270 patent claim more than an abstract idea because the claims contain meaningful limitations, specifically requiring the following steps:
(D.I. 283 ¶ 12) However, none of these limitations adds anything meaningful to the basic concept of controlled exchange of information about people as historically practiced by matchmakers and headhunters — and as disclosed in the patent specification itself.
To be meaningful, a limitation must consist of some "inventive concept;" if a patentee contends this is so on the basis that the invention incorporates a machine, the machine must "play a significant part in permitting the claimed method to be performed." On these points, a recent Federal Circuit case on patentable subject matter is instructive. In SmartGene, Inc. v. Advanced Biological Laboratories, SA, 555 Fed.Appx. 950, 951 (Fed.Cir.2014), the patent at issue claimed a method "for guiding the selection of a treatment regimen for a patient with a known disease or medical condition." Claim 1 claimed:
Id. at 954-55. Claim 1 also included a "computing device" containing "a set of `expert rules for evaluating and selecting' from a stored `plurality of different therapeutic treatment regimens,' as well as `advisory information useful for the treatment of a patient with different constituents of said different therapeutic treatment regimens.'" Id. at *955. The Federal Circuit concluded that this "computing device" limitation was "broad" and not meaningfully distinguishable from "a doctor's mind." Id. Thus, although the claimed method recited several rules ostensibly narrowing the claimed invention, the claim was held to be not patent eligible, because section 101 does not "embrace a process defined simply as using a computer to perform a series of mental steps that people, aware of each step, can and regularly do perform in their heads." Id. at *954, citing Cyber-Source, 654 F.3d at 1373. Yet this was all that the claims themselves embraced.
Much like the "rules" listed in SmartGene, the additional "steps" of the claims of the '270 patent are merely "a series of mental steps that people, aware of each step, can and regularly do perform in their heads." The claim limitations essentially recite a generic headhunting or matchmaking request by two parties. There is nothing "inventive" about any of the listed rules or any other steps of the claims, including the order in which they are to be performed.
As the following hypothetical (articulated by Google, and not meaningfully distinguished
Limitations of '270 Patent Claim 1 Routine Steps Performed when Headhunting "receiving from a first party first data Carol receives a resume from Alice, which including an identity of said first party" lists Alice's college degree, 8 years of sales experience, interests, and other information, including Alice's name "receiving from said first party at least two Alice instructs Carol to disclose her education first-party rules for releasing said first data and sales experience to companies with open including a rule for releasing the identity of sales positions but not to disclose her name said first party" unless the company is offering a salary of at least $75,000 "receiving from a second party a search Bob asks Carol to find an employee with sales request comprising at least one search experience for his company criterion" "receiving from said second party second data Bob tells Carol that the job at his company is including an identity of said second party" a sales position that pays $100,000 in salary and that the name of his company is Bob's Software "receiving from said second party at least two Bob instructs Carol that she can disclose second-party rules for releasing said second information about the job opening to any party data including a rule for releasing said applicant with sales experience and that she identity of said second party" can provide the salary offer to any applicant with a college degree but not to disclose the name of his company unless the applicant has more than 5 years of sales experience "processing said search request to determine if Carol checks to see if Alice has the necessary said first data satisfies said search criterion" sales experience requested by Bob "if said first data satisfies said search Once Carol determines that Alice has the criterion, then exchanging said first and necessary sales experience for Bob, Carol second data, except said identities of said first provides Alice's college degree and years of and second parties, between said first and sales experience to Bob, but not Alice's second parties in accordance with said first-party name, and provides information to Alice and second-party rules" about the sales position available at Bob's company and the salary information, but not the name of Bob's company, in accordance with Alice's instructions and Bob's instructions "after said exchanging step, upon satisfying After Carol provides Alice's sales experience said first-party rule for releasing said identity and college degree to Bob and provides Bob's of said first party, transmitting said identity of salary offer and sales position available at said first party to said second party, and after Bob's company to Alice, Carol gives Alice's said exchanging step, upon satisfying said name to Bob upon determining that Bob's second-party rule for releasing said identity of company is offering at least $75,000 in salary said second party, transmitting said identity of and tells Alice the name of Bob's company said second party to said first party" upon determining that Alice has more than 5 years of sales experience
Even after carefully reviewing the parties' briefs and the patents, and questioning the parties about Google's hypothetical at the hearing, the Court is unable to discern any reason why, in Google's hypothetical, Carol would not be liable for infringement of Walker's '270 patent. Based on the undisputed evidence, and drawing
The asserted dependent claims of the '270 patent fare no better. Those claims require receiving and storing (claim 2 and 5) and narrowing the scope of a party's demands (claims 10 and 11) — but these additional steps again add no inventive element to the mental processes claimed by the '270 patent. Similarly, the system claims recited in claims 23, 24, 27, 32, and 33 merely take the abstract idea of claims 1, 2, 5, 10, and 11 and list generic computer components (processor, memory) to implement the abstract idea. Even accepting that the use of a computer increases speed and efficiency of performing the steps of the claims, and improves the likelihood of preserving the anonymity of the first and second parties, these characteristics do not save the claims. As the Supreme Court has stated, "the mere recitation of a generic computer cannot transform a patent-ineligible abstract idea into a patent-eligible invention. Stating an abstract idea while adding the words `apply it' is not enough for patent eligibility." Alice, 134 S.Ct. at 2358.
Accordingly, the Court will grant Google's motion with respect to Walker's '270 patent.
The analysis is largely the same with respect to Walker's '272 patent and the Court reaches the same conclusions as it did in connection with the '270 patent. Independent claim 1 of the '272 patent is a method claim; asserted dependent claims 2-4, 9-11, 19, 27, 28, 31, and 32 are also method claims and all depend from independent claim 1. Independent claim 65 is a system claim.
Claim 1 recites as follows:
The asserted dependent claims recite:
Google contends that, "[a]s with the claims of the '270 patent, the method claims of the '272 patent are likewise patent-ineligible
Similarly, claim 3 recites "executing a cryptographic operation using a cryptographic key," but this process is also not tethered to any computer. "Cryptographic operation" has been construed to mean "operation to encrypt or decrypt data." (D.I. 232 at 1) "Cryptographic key" has been construed to mean "data used as an input to an operation to encrypt or decrypt other data." (Id.) "Executing a cryptographic operation using a cryptographic key" would, therefore, include something like the type of substitution cipher one might find in a newspaper (A=T, B=U, etc.). Accordingly, claims 1 and 3 are not tied to a machine and cannot satisfy the machine or transformation test.
Plaintiff's expert, Dr. Wills, opines that the '272 patent contains the following meaningful limitations:
(D.I. 283 ¶ 13) As with the steps of the '270 patent, however, these steps add nothing inventive to the core concept of anonymously exchanging information about people, a practice that is described in the patent's specification has having long been practiced by human headhunters and matchmakers.
As it did with the '270 patent, Google has provided a hypothetical example, shown below, demonstrating that the limitations of the '272 patent essentially recite an interaction whereby two parties communicate with a third party and, after some threshold requirements of both parties
Limitation of '272 Patent Claim 1 Routine Steps Performed when Headhunting "receiving first party information data from Carol receives a resume from Alice, which said first party" lists Alice's college degree, 8 years of sales experience, interests, and other information, including Alice's name "storing said first party information data in a Carol stores Alice's resume containing her secure database" sales experience information in a locked filing cabinet where Carol keeps files "receiving, from said first party, at least one Alice instructs Carol to disclose her years of first party rule for releasing said first party sales experience only to employers offering a information data" salary amount of over $75,000 "storing said at leas[t] one first party rule" Carol stores Alice's instruction in her filing cabinet "receiving, from said second party, a search Carol receives from Bob a request to search request to the secure database, said search her resume files to find job candidates who request comprising at least one search have at least 5 years of sales experience criterion to be satisfied" "determining second party data relevant to Carol determines that Bob's salary offer of said at least one first party rule" $100,000 is relevant to Alice's instruction as to whether Alice's years of sales experience may be disclosed "receiving, from said second party, at least Carol receives an instruction from Bob to one second party rule for releasing said release his offered salary amount only to second party data" candidates with at least 5 years of sales experience "processing said search request from said Carol reviews Bob's request to determine if second party to determine if said first party Alice's level of sales experience satisfies information data satisfies said at least one Bob's requirement of having at least 5 years search criterion" of sales experience "if said first party information data satisfies at Since Alice's experience meets Bob's least one search criterion, then requirement, Carol tells Bob that she found a communicating to said second party that said candidate with at least 5 years of sales at least one search criterion has been experience satisfied" "receiving a request from said second party Bob asks Carol for the candidate's sales for said first party information data" experience "releasing said second party data pursuant to Carol tells Alice about Bob's salary offer said second party rule" pursuant to Bob's instruction that his salary offer can be disclosed to a candidate with at least 5 years of sales experience "determining, based on said second party Based on Bob's salary offer amount, Carol data, whether said at least one first party rule determines whether she can comply with has been satisfied" Alice's instruction regarding when to release Alice's years of sales experience "if said at least one first party rule has been Since Bob is offering a salary of $100,000 satisfied, providing, to said second party, said which satisfies Alice's requirement of a salary first party information data for which said at offer of at least $75,000 before disclosing least one first party rule has been satisfied" Alice's sales experience, Carol provides information about Alice's 8 years of sales experience to Bob
The dependent claims add nothing meaningful. Claims 2, 4, 10, and 11 merely require confirming that the parties are who they claim to be by, for example, reading their names on their resumes and comparing them to names on driver's licenses. Claim 9 requires determining second party data by getting the data from the second party; e.g., Carol receives from Bob information about the $100,000 salary offer for the job available at Bob's company. Claims 27 and 31 simply limit the claimed method to interactions between job candidates and employers and individuals seeking personal relationships, respectively. Claims 28 further defines "first party information data" as comprising fundamental job-seeking information such as the first party's name, address, date of birth, work experience, educational background, personal interest, list of publications, and list of awards. Similarly, claim 32 defines "first party information data" as comprising basic personal information routinely used in matchmaking, including the party's name, address, date of birth, work experience, educational background, and interests. Notably, the patent's specification (like that of the '270 patent) recognizes that these two potential uses for the purported invention (job-hunting and matchmaking) have been practiced for years. (See '272 patent col. 2:43-48, 3:48-51)
Claim 3, as discussed earlier, adds the step of using a cryptographic key to execute a cryptographic operation when authenticating the first party's data. These steps can be performed entirely within the human mind. In sum, because the entirety of claim 1 and each of its asserted dependent claims can be performed in a person's mind, and because the claim limitations merely append routine and ordinary steps to an abstract idea, the claims are not directed to patentable subject matter.
Finally, independent claim 65 applies the method disclosed in claim 1 by way of a generic computer with standard computer components including a "memory," a "processor," and "a communication port." None of these components converts a general computer into a specialized computer. As discussed above, merely reciting the use of a generic computer in implementing an unpatentable abstract idea does not inject patentable subject matter into an invention.
It bears emphasis that, as the Supreme Court recently explained in Alice, 134 S.Ct. at 2354-55:
Here, Walker contends that the asserted claims of the patents-in-suit "integrate" the abstract idea of "controlled information exchange between anonymous parties" into "something more thereby transforming" this building block of human ingenuity into a patent-eligible invention. However, the Court fails to see anything "more" in the asserted claims than the abstract idea, implemented in a conventional manner using a general purpose computer, and is compelled to conclude that the patents risk "disproportionately tying up the use of the underlying ideas." Accordingly, the asserted claims of the patents-in-suit are invalid due to lack of patentable subject matter and Google's motion must be granted.
An appropriate Order follows.
At Wilmington this
For the reasons set forth in the Memorandum Opinion issued this same date,
IT IS HEREBY ORDERED that:
1. Defendant Google, Inc.'s ("Google" or "Defendant") Motion for Summary Judgment of Invalidity and Non-Infringement Under Doctrine of Equivalents of U.S. Patent No. 5,884,270 ("the '270 patent") and U.S. Patent No. 5,884,272 ("the '272 patent") and for Default Judgment Against Walker Asset Management LP (D.I. 250) is
2. Google's Motion to Preclude Walker Digital LLC's ("Walker" or "Plaintiff") Damages Expert (D.I. 252) is
3. Walker's Motion for Partial Summary Judgment (D.I. 257) is
4. Walker's Motion to Exclude Opinions and Evidence Regarding Non-Infringing Alternatives (D.I. 260) is
5. Walker's Motion to Exclude Opinions of Defendant Google, Inc.'s Damages Expert (D.I. 262) is