ROBINSON, District Judge.
On January 24, 2013, plaintiff YYZ, LLC ("plaintiff") filed a patent infringement action against defendant Hewlett-Packard Company
Plaintiff is a limited liability company organized and existing under the laws of the Commonwealth of Pennsylvania, having its principal place of business in Glen Mills, Pennsylvania. HP is a corporation organized and existing under the laws of Delaware, with its principal place of business in Palo Alto, California. Adobe is a corporation organized and existing under the laws of Delaware, with its principal place of business in San Jose, California. Pegasystems is a Massachusetts corporation with its principal place of business in Cambridge, Massachusetts.
The '749 patent, titled "Measuring, Monitoring and Tracking Enterprise Communications and Processes" was filed on December 15, 2000 and was issued June 13, 2006. The '674 patent, titled "Apparatus and System for Measuring, Monitoring, Tracking and Simulating Enterprise
"The 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." Fed. R. Civ. P. 56(a). The moving party bears the burden of demonstrating the absence of a genuine issue of material fact. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586 n. 10, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). A party asserting 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 the purposes of the motions 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, the nonmovant must then "come forward with specific facts showing that there is a genuine issue for trial." Matsushita, 475 U.S. at 587, 106 S.Ct. 1348 (internal quotation marks omitted). The Court will "draw all reasonable inferences in favor of the non-moving party, and it may not make credibility determinations or weigh the evidence." Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000).
To defeat a motion for summary judgment, the non-moving party must "do more than simply show that there is some metaphysical doubt as to the material facts." Matsushita, 475 U.S. at 586-87, 106 S.Ct. 1348; see also Podobnik v. U.S. Postal Service, 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). Although 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 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").
Section 101 provides that patentable subject matter extends to four broad categories, including: "new and useful process[es], machine[s], manufacture, or composition[s] of matter." 35 U.S.C. § 101; see also Bilski v. Kappos, 561 U.S. 593, 601,
Diamond v. Diehr, 450 U.S. 175, 182-83, 101 S.Ct. 1048, 67 L.Ed.2d 155 (1981) (internal quotations omitted).
The Supreme Court recognizes three "fundamental principle" exceptions to the Patent Act's subject matter eligibility requirements: "laws of nature, physical phenomena, and abstract ideas." Bilski II, 561 U.S. at 601, 130 S.Ct. 3218. In this regard, the Court has held that "[t]he concepts covered by these exceptions are `part of the storehouse of knowledge of all men... free to all men and reserved exclusively to none.'" Bilski II, 561 U.S. at 602, 130 S.Ct. 3218 (quoting Funk Bros. Seed Co. v. Kalo Inoculant Co., 333 U.S. 127, 130, 68 S.Ct. 440, 92 L.Ed. 588 (1948)). "[T]he concern that drives this exclusionary principle is one of pre-emption," that is, "`that patent law not inhibit further discovery by improperly tying up the future use of' these building blocks of human ingenuity." Alice Corp. Pty. Ltd. v. CLS Bank Int'l, ___ U.S. ___, 134 S.Ct. 2347, 2354, 189 L.Ed.2d 296 (2014) (citing Bilski II, 561 U.S. at 611-12, 130 S.Ct. 3218 and Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. ___, 132 S.Ct. 1289, 1301, 182 L.Ed.2d 321 (2012)).
Although a fundamental principle cannot be patented, the Supreme Court has held that "an application of a law of nature or mathematical formula to a known structure or process may well be deserving of patent protection," so long as that application would not preempt substantially all uses of the fundamental principle. Bilski II, 561 U.S. at 611, 130 S.Ct. 3218 (quoting Diehr, 450 U.S. at 187, 101 S.Ct. 1048) (internal quotations omitted); In re Bilski, 545 F.3d 943, 954 (Fed.Cir. 2008) ("Bilski I"). The Court has described the
"[T]o transform an unpatentable law of nature into a patent-eligible application of such a law, one must do more than simply state the law of nature while adding the words `apply it.'" Mayo, 132 S.Ct. at 1294 (citing Gottschalk v. Benson, 409 U.S. 63, 71-72, 93 S.Ct. 253, 34 L.Ed.2d 273 (1972)) (emphasis omitted). It is insufficient to add steps which "consist of well-understood, routine, conventional activity," if such steps, "when viewed as a whole, add nothing significant beyond the sum of their parts taken separately." Mayo, 132 S.Ct. at 1298. "Purely `conventional or obvious' `[pre]-solution activity' is normally not sufficient to transform an unpatentable law of nature into a patent-eligible application of such a law." Id. (citations omitted). Also, the "prohibition against patenting abstract ideas `cannot be circumvented by attempting to limit the use of the formula to a particular technological environment' or adding `insignificant post-solution activity.'" Bilski II, 561 U.S. at 610-11, 130 S.Ct. 3218 (citation omitted). For instance, 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 featur[e]' that provides any `practical assurance that the process is more than a drafting effort designed to monopolize the [abstract idea] itself.'" Id. (citations omitted).
Because computer software comprises a set of instructions,
In DDR, for example, the claims at issue involved computer technology directed at retaining website visitors.
773 F.3d at 1258. In other words, "[a]lthough the claims address[ed] a business challenge ..., it [was] a challenge particular to the Internet." Id. at 1257. The Court concluded that, under any of the characterizations of the abstract idea, the claims satisfied step two of Alice as being
Id. at 1258-59 (citing Alice, 134 S.Ct. at 2359; Ultramercial, 772 F.3d 709, 714-16 (Fed.Cir.2014); buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1355 (Fed.Cir.2014); Accenture Global Servs., GmbH v. Guidewire Software, Inc., 728 F.3d 1336, 1344-45 (Fed.Cir.2013); Bancorp, 687 F.3d at 1277-78); but see Dealertrack, Inc. v. Huber, 674 F.3d 1315, 1331-35 (Fed.Cir.2012).
In DDR, the analytical framework (in the context of computer-implemented inventions)
Turning to the second step of Alice, the Intellectual Ventures Court concluded that the claims at issue presented no inventive concept "that would support patent eligibility.`
Id. at 1370-71. In distinguishing DDR, the Intellectual Ventures Court offered the following analysis:
Id. at 1371 (citations omitted).
In reviewing post-Alice cases such as DDR and Intellectual Ventures, the court is struck by the evolution of the § 101 jurisprudence, from the complete rejection of patentability for computer programs
The specification discloses "computer-based apparatus and systems for measuring, monitoring, tracking and simulating enterprise [or business] communications and processes in an asynchronous messaging environment." (1:8-11)
(3:62-67) The message data is stored in a "central message repository or database." (3:15-27, 55-60)
Independent claim 1 of the '749 recites:
(9:50-61)
Applying the analytical framework of Alice, the court first "determine[s] whether the claims at issue are directed to one of those patent-ineligible concepts," namely, laws of nature, natural phenomena, and abstract ideas. 134 S.Ct. at 2354-55. Defendants contend that the "asserted claims of the patents-in-suit are directed to the abstract idea of collecting and saving information relating to a business process — a well-known, routine, and fundamental business practice.`
Turning to step two of the Alice framework, the court examines whether the claims are limited by an "inventive concept" such that "the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself." Alice, 134 S.Ct. at 2355. In this regard, the parties at bar agreed that defendants' § 101 challenge be presented in the context of a summary judgment motion practice. Plaintiff submitted, inter alia, an expert declaration in opposition to defendants' motions for summary judgment (D.I. 123, ex. D); defendants did not proffer any expert opinions, but referred to extrinsic evidence in support of their motions. Although the § 101 inquiry is focused on the claim language, extrinsic evidence may be helpful in terms of understanding the state of the art at the time the patents-in-suit issued, and whether the problem to which the patent was directed is solved using computer technology in unconventional ways. To the extent consistent with the claims as construed by the court, the court may rely on such evidence in making its determinations.
For instance, defendants, in their § 101 challenge, describe multiple prior art references in order
(D.I. 140 at 2) Plaintiff identifies contrary references which, according to its expert Mr. Schutz, demonstrate that while such elements as "message brokers" and "messaging components" may have been known in the art, "they were far from `conventional and generic technology.'" (D.I. 123, ex. D at 17-18) Note how, consistent with the analysis above, the § 101 "inventiveness" discussion involves questions of fact which intersect with those raised in the context of §§ 102 and 103.
In terms of reviewing the merits of the competing arguments, the court finds that "the asserted claims of the patents-in-suit operate in an asynchronous message-based communications environment and fix problems only existing in asynchronous environments." (Id. at 17) Just narrowing an abstract idea "to a particular technological environment" is insufficient to pass muster under the § 101 paradigm. Mr. Schutz further opines that "[t]he solution of the asserted claims requires the creation of a `messaging component' within the message broker. This messaging component creates the monitoring message, and sends it to the central message repository, where it is stored in a transaction record. In my opinion, this is a
The § 101 inquiry remains focused on the claim language, and whether the ordered combination of the limitations disclose patent-eligible subject matter. The linchpin of plaintiff's position is the "custom" messaging component created for use within IBM's MQSeries Integrator to create the monitoring messages. Turning to the court's claim construction, a "monitoring message" is "a message distinct from an original message, created by the messaging component of a messaging broker that contains at least part of the original message data, where a messaging broker is communication software that performs at least message transformation and routing based on information in the message." (D.I. 112 at 4) The claim language itself does not describe the "custom component" or how the "monitoring message" is created. The claims only detail the content of such monitoring message as "part of the original message data" "compris[ing] the status of an activity." (See e.g., '749 patent, claim 1, 9:50-61) The specification states that "a messaging component is added to the messaging broker, through methods known in the art." (3:52-53)
In the context of summary judgment, of course, the ultimate inquiry is whether the non-moving party has identified genuine issues of material fact. With respect to the pre-emption inquiry, plaintiff suggests that there are ways to use a message broker without implicating the patents-in-suit because they are directed to a "particular technological improvement in a particular field." (D.I. 138 at 19) And, indeed, Mr. Schutz offers multiple ways the public can practice communication and enterprise management technologies, in both synchronous and asynchronous environments. (D.I. 123, ex. D at 20-22)
The question remains whether the "technological improvement" identified by plaintiff is innovative enough to "override the routine and conventional" use of the computer. DDR, 773 F.3d at 1258-59. The record demonstrates that the unconventional aspect of the invention identified by Mr. Schutz is "a new piece of software," a "custom source code to create the messaging component." (D.I. 123, ex. D at 19-20) Not only is the "messaging component" not specifically claimed, it is described in the specification as an invention already in use, for example, in "IBM's MQSeries messaging broker[, which] provides a component that can be configured to perform a copying function for the messages it receives, and so create monitoring messages for the messages it receives." (3:62-67) To broadly claim a method of accomplishing routine functions requires more than just an "apply it" directive, even in a specific technical environment such as the one at bar. A component that "can be configured" to perform the claimed function is neither sufficiently described nor sufficiently inovative to transform the inventive concept at bar into patent-eligible subject matter. See, e.g., Planet Bingo, LLC v. VKGS LLC, 576 Fed.Appx. 1005, 1008-09 (Fed. Cir.2014) (rejecting argument that unclaimed features and "complex computer code" are relevant for patent-eligibility purposes). Plaintiff has not raised triable issues of fact sufficient to withstand summary judgment.
For the foregoing reasons, the court grants defendants' motions for summary
773 F.3d at 1249-50 (emphasis added).
Intellectual Ventures, 792 F.3d at 1368.
Id. at *7 (citation omitted) (emphasis omitted).
Dealertrack, 674 F.3d at 1335. But see CLS Bank Int'l v. Alice Corp. Pty., 717 F.3d 1269, 1277 (Fed.Cir.2013), aff'd, ___ U.S. ___, 134 S.Ct. 2347, 189 L.Ed.2d 296 (2014).