STARK, U.S. District Judge.
Pending before the Court are: (I) Defendants Amazon.com, Inc. and Amazon Web Services, Inc.'s (collectively, "Amazon" or "Defendants") motion for summary judgment of invalidity under 35 U.S.C. § 101 (D.I. 124); and (ii) Plaintiff Kaavo Inc.'s ("Kaavo" or "Plaintiff") motion for reconsideration of the Court's March 31, 2016 Order in light of subsequently-issued authority (D.I. 131).
Plaintiff sued Defendants for infringement of United States Patent No. 8,271,974 (the "'974 patent"), which is entitled "Cloud Computing Lifecycle Management for N-tier Applications." In related cases, Magistrate Judge Burke issued a report and recommendation that the asserted independent claims, as well as dependent claim 12, be found patent ineligible under. § 101. (C.A. No. 14-1192 D.I. 35; C.A. No. 14-1193 D.I. 42) ("R & R") Over Plaintiffs objection (C.A. No. 14-1192 D.I. 39; C.A.
The parties completed briefing (see D.I. 126, 132, 136) and submitted expert declarations (see D.I. 127, 133, 137). On March 12, 2018, the Court held a combined hearing on the motions and claim construction. (See D.I. 140 ("Tr."))
The '974 patent generally relates to methods, devices, and systems [in] the fields of computers, information technology, virtualization, and cloud computing," and, more particularly, the "management of a cloud computing environment for use by a software application." '974 patent, col. 1 11. 6-11. The application may include software "(e.g., a web portal with email functionality, database programs, word processing programs, accounting programs, inventory management programs, numerical analysis programs)," or services "(e.g., an autonomous unit that is responsible for a transformation, storage and/or retrieval of data, such as a database management service or a database API service)." Id. col. 1 11. 46-55.
The patent explains that "[c]loud computing may be used to leverage virtualization of the resources of, for example, data centers." Id. col. 1 11. 2 1-22. According to the patent, "[v]irtualization technology facilitates the operation of multiple virtual servers within a single physical server system, such that each virtual sever may operate within its own unique system environment (e.g., operating system, applications)." Id. col. I 11. 12-15. "Cloud providers, which may operate resources such as data centers and/or other information technology-related capabilities, may facilitate the use of such resources by providing users (which may be remote to the cloud provider) with access to their resources." Id. col. 1 11. 22-26. The patent refers to these "potentially accessible resources" collectively as a "cloud computing environment" or a "cloud environment." Id. col. I IL 27-29.
The cloud computing environment "may be an N-tier environment." Id. Abstract; Fig. 8. The patent describes the N-tier computing environment as "having any number of tiers (e.g., logical groupings of components directed to a general type of functionality)" that is made available to the application by the cloud environment. Id. col. 5 11. 22-30; see also id. col. 5 IL (noting that "application cloud environment configuration ... may include an environment containing ... 20 or more tiers"). The patent lists some examples of tiers such as "a presentation tier, an application tier (e.g., a logic or business logic tier), and a database tier." Id. col. 5 IL 34-35.
The patent explains that "[e]ach individual cloud configuration may contribute all,
Under 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)(l)(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 nonmoving 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 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). 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"
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). "Whether a claim recites patent eligible subject matter is a question of law which may contain disputes over underlying facts." Berkheimer v. HP inc., 881 F.3d 1360, 1368 (Fed. Cir. 2018).
In Mayo Collaborative Services v. Prometheus Laboratories, Inc., 566 U.S. 66, 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 Corp. Pty. Ltd. v. CLS Bank Int'l, ___ U.S. ___, 134 S.Ct. 2347, 2355, 189 L.Ed.2d 296 (2014). First, courts must determine if the claims at issue are directed to a patent-ineligible concept ("step one"). See id. If so, the next step is to look for an "`inventive concept' — i.e., an element or combination of elements that is sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself' ("step two"). Id. The two steps are "plainly related" and "involve overlapping scrutiny of the content of the claims." Elec. Power Grp., LLC v. Alstom S.A., 830 F.3d 1350, 1353 (Fed. Cir. 2016).
At step one, "the claims are considered in their entirety to ascertain whether their character
Courts should not "oversimplif[y]" key inventive concepts or "downplay" an invention's benefits in conducting a step one analysis. See Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1337-38 (Fed. Cir. 2016); see also McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299, 1313 (Fed. Cir. 2016) ("[C]ourts `must be careful to avoid oversimplifying the claims' by looking at them generally and failing to account for the specific requirements of the claims.") (quoting In re TLI Commc'ns LLC Patent Litig., 823 F.3d 607, 611 (Fed. Cir. 2016)). "Whether at step one or step two of the Alice test, in determining the patentability of a method, a court must look to the claims as an ordered combination, without ignoring the requirements of the individual steps." McRO, 837 F.3d at 1313.
At step two, courts must "look to both the claim as a whole and the individual claim elements to determine whether the claims contain an element or combination of elements that is sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the ineligible concept itself" Id. at 1312 (internal brackets and quotation marks omitted). The "standard" step two
However, "[t]he inventive concept inquiry requires more than recognizing that each claim element, by itself, was known in the art." Bascom, 827 F.3d at 1350. In Bascom, the Federal Circuit held that "the limitations of the claims, taken individually, recite generic computer, network and Internet components, none of which is inventive by itself," but nonetheless determined that an
The Federal Circuit recently elaborated on the step two standard, stating that "[t]he question of whether a claim element or combination of elements is well-understood, routine and conventional to a skilled artisan in the relevant field is a question of fact. Any fact, such as this one, that is pertinent to the invalidity conclusion must be proven by clear and convincing evidence." Berkheimer, 881 F.3d at 1368; see also Aatrix Software, Inc. v. Green Shades Software, Inc., 882 F.3d 1121, 1128 (Fed. Cir. 2018) ("While the ultimate determination of eligibility under § 101 is a question of law, like many legal questions, there can be subsidiary fact questions which must be resolved en route to the ultimate legal determination."); Automated Tracking Sols., LLC v. Coca-Cola Co., 723 Fed.Appx. 989, 995 (Fed. Cir. 2018) ("We have held that `whether a claim element or combination of elements is well-understood, routine and conventional to a skilled artisan in the relevant field is a question of fact.'") (quoting Berkheimer, 881 F.3d at 1368). "Whether a particular technology is well-understood routine, and conventional goes beyond what was simply known in the prior art. The mere fact that something is disclosed in a piece of prior art, for example, does not mean it was well-understood, routine, and conventional." Berkheimer, 881 F.3d at 1369. Still, "[w]hen there is no genuine issue of material fact regarding whether the claim element or claimed combination is well-understood, routine, [and] conventional to a skilled artisan in the relevant field, this issue can be decided on summary judgment as a matter of law." Id.; see also Intellectual Ventures I LLC v. Symantec Corp., 725 Fed.Appx. 976, 978 n.1 (Fed. Cir. 2018) (affirming grant of summary judgment of patent ineligibility and stating Berkheimer "does not compel a different conclusion").
Plaintiff moves for reconsideration of the Court's Order invalidating all of the asserted independent claims-1, 13, 24, and 35-and claim 12, a dependent claim. (C.A. No. 14-1193 D.I. 52) Plaintiffs motion arises under Federal Rule of Civil Procedure 60(b)(6), which permits relief from an order for "any other reason that justifies relief."
Plaintiff argues that the Federal Circuit's decisions in "Enfish, McRO, Bascom, Visual Memory, Core Wireless and Berkheimer, and Aatrix" — all of which were decided after the Court's Order- "were previously unavailable" when the Court issued its 2016 Order. (D.I. 132 at 16) Had the Court followed those decisions, Plaintiff argues, "it is evident that the asserted claims of the '974 patent are directed to an improvement of the functioning of computers and improve an existing technology, and thus are not abstract." (Id.)
Plaintiff has failed to show the kind of extraordinary circumstance required for relief under Rule 60(b)(6). None of the Federal Circuit cases cited by Plaintiff constitutes a change in the law pertaining to § 101. Instead, these cases provide further guidance on applying the Supreme Court's two-step § 101 analysis to different factual scenarios. See Cloud Satchel LLC v. Amazon.com, Inc., 2017 WL 1197677, at *2 (D. Del. Mar. 30, 2017) (denying relief under Rule 60(b)(6) and noting that "Federal Circuit decisions identified by plaintiff [including Enfish] are the kind of `intervening developments in the law' that result from our system of common law"); A Pty Ltd. v. Facebook, Inc., 2016 WL 4212292, at *4 (W.D. Tex. Aug. 9, 2016) (denying relief under Rule 60(b)(6) and noting that "Enfish did not depart from [Alice's two-step] framework"); see also Rothschild Location Techs. LLC v. Vantage Point Mapping, Inc., 2016 WL 7049401, at *4 (E.D. Tex. Dec. 5, 2016) (denying relief under Rule 59(e), noting that "Enfish does not overturn or substantially change the Alice test; rather the decision largely reaffirms the existing case law in clarifying the application of Alice to claims that as a whole are directed to a technological improvement").
Reconsideration is also not warranted because even retroactive application of all of Plaintiffs' new cases would not alter the Court's conclusion that the claims considered in the Order are not directed to patent eligible subject matter. Contrary to
In Enfish, 822 F.3d at 1337, the claims recited a four-step algorithm that included a self-referential table for a computer database. The specification taught that the "self-referential table functions differently than conventional database structures." Id. Based on this, among other things, the Federal Circuit held that the claims were not directed to an abstract idea under Alice's step one, but were instead "directed to a specific improvement to the way computers operate, embodied in the self-referential table." Id. at 1336. The Federal Circuit noted that the "claims are not simply directed to
In Visual Memory LLC v. NVIDIA Corp., 867 F.3d 1253, 1259 (Fed. Cir. 2017), the claims were "directed to an improved computer memory system, not to the abstract idea of categorical data storage." As in Enfish, the specification explained that "multiple benefits flow from the ... patent's improved memory system." Id.
In Core Wireless Licensing S.A.R.L. v. LG Elecs., Inc., 880 F.3d 1356, 1362 (Fed. Cir. 2018), the Federal Circuit held that the claims were "directed to an improved user interface for computing devices, not to the abstract idea of an index." The Federal Circuit noted that the claims "disclose a specific manner of displaying a limited set of information to the user, rather than using conventional user interface methods to display a generic index on a computer." Id. The specification explained that the "claims disclose an improved user interface for electronic devices, particularly those with small screens." Id. at 1363.
Unlike the claims disclosing the self-referential table in Enfish, the computer memory system in Visual Memory, and the user interface in Core Wireless, the claims at issue here — disclosing the cloud computing environment — are not "directed to a particular improvement in the computer's functionality." Id. at 1362. Plaintiff has not pointed to anything in the patent that, in light of the recent cases, alters the Court's conclusion that the claims are, instead, directed to the abstract idea of setting up and managing a cloud computing environment. Plaintiff contends that the claims "improve the functioning of a computer itself, more specifically, they improve the functioning of cloud computing itself, and they solve the technological problem of decreased performance and reliability of an application being run in the cloud." (D.I. 132 at 18) But that view is not supported by the patent. While Plaintiff insists that cloud computing technology is a "fairly recent computer-science development" and differs from conventional computing technology (id. at 5-6), neither the claim language nor the specification discloses specific improved methods or systems of cloud computing. Unlike in Enfish, Visual Memory, and Core Wireless, nothing in the specification explains that the claimed invention is an improved cloud computing system as compared to cloud computing systems already existing in the prior art (a point Plaintiff appears to acknowledge based on the prosecution history). Nor does the specification discuss any technological problems in this field nor explain how the claimed invention provides an unconventional technological solution to those problems.
Plaintiff points to the claim language reciting that the "initial cloud environment is not yet instantiated and is an N-tier
In sum, Plaintiff has not demonstrated that the Court should exercise its discretion to provide relief under Rule 60(b)(6).
The Court previously concluded that all of the asserted independent claims and one asserted dependent claim are directed to the abstract idea of setting up and managing a cloud computing environment and contain no inventive concept and, thus, are not patent eligible. (D.I. 52 at 4, 6) Defendants now move for summary judgment that the remaining asserted dependent claims — claims 5-6, 8-9, 11, 17-18, 20-21, 23, 28-29, 31-32, and 34-all of which depend from the invalidated independent claims, are similarly not eligible for patent protection under § 101. (DJ. 126 at 3) Plaintiff responds that the dependent claims, "when considered as a whole, as they must be, are directed to an improvement in cloud-computing and not an abstract idea." (D.I. 132 at 4)
The asserted representative dependent claims (5-6, 8-9, and 11) depend from independent claim 1.
The Court now turns to the Alice/Mayo two-step analysis of these dependent claims.
Under step one, the Court inquires "whether the claims at issue are
Defendants argue that "[l]ike the independent claims, the asserted dependent claims are directed to the abstract idea of setting up and managing a cloud computing environment." (D.I. 126 at 15) Plaintiff counters that "Defendants oversimplify the language of the dependent claims and completely ignore the limitations of the parent claims." (D.I. 132 at 23-24) In Plaintiffs view, the claims "focus on improving the use of the computers as a tool to execute a software application." (Id.)
The "basic character" or "focus" of dependent claims 5-6, 8-9, and 11 amounts to nothing more than the abstract idea encompassed by independent claim 1 from which they all depend, namely, setting up and managing a cloud computing environment. The dependent claims add no meaningful limitations beyond this abstract idea. Instead, they broadly recite "functional results" for the claimed cloud computing environment, "but [do] not sufficiently describe how to achieve these results in a non-abstract way." Two-Way Media, 874 F.3d at 1337. In particular,
Claims 5 and 6, for instance, are drawn to methods of "forecasting." '974 patent, col. 19 IL 49-56. The specification explains that the forecasting "may be performed using techniques such as, for example, neural networks, time-series algorithms, and regression analysis." Id. col. 8 11. 53-55. The specification further explains that the "forecasting algorithms employed may be refined and updated as additional data becomes available." Id. col. 8 11. 57-59. However, there are no details on how the forecasting is done, and no algorithm is provided. The specification also references a "Load Forecasting Module" and a "Pricing Module" that may be used to perform these methods. Id. col. 15 11. 6-33. But, even assuming that use of such modules is a non-abstract way of performing the method of forecasting, the claim language (even applying Plaintiff's proposed constructions) does not require the use of these modules.
Claims 8 and 9 recite methods for determining "user-defined provisioning information" using user input, a needs analysis algorithm,
Claim 11 is drawn to a method of receiving "security information," determining a
Contrary to Plaintiffs contentions, the dependent claims are not directed to an "improvement to computer functionality." Enfish, 822 F.3d at 1335; see also R & R at 21-22 ("The Court does not see how touting the benefits of cloud computing generally can amount to sufficient support for Plaintiff's argument that the patent's
Plaintiff, relying on expert testimony, argues that the dependent claims are not abstract because the corresponding independent claim is not abstract. (See D.I. 132 at 25) (relying on its expert and explaining that dependent claims are "directed to improving `the reliability and optimization of the cloud environment in which the application runs' —
In sum, Defendants have met their burden at step one.
At step two, the Court examines the claim limitations "more microscopically," Elec. Power Grp., 830 F.3d at 1354, "both individually and as an ordered combination to determine whether the additional elements transform the nature of the claim into a patent-eligible application," Alice, 134 S.Ct. at 2355 (internal quotation marks omitted). The analysis at this step is "a search for an inventive concept — i.e., an element or combination of elements that is sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the ineligible concept itself." Alice, 134 S.Ct. at 2355 (internal quotations marks and brackets omitted). "Mere recitation of concrete, tangible components is insufficient to confer patent eligibility to an otherwise abstract idea." In re TLI, 823 F.3d at 613. "Rather, the components must involve more than performance of well-understood, routine, conventional activit[ies] previously known to the industry." Id.
Defendants argue that the asserted dependent claims lack an inventive concept. (D.I. 126 at 19) Plaintiff responds that "the parties' arguments and dueling expert testimony clearly point to `at least a genuine issue of material fact' whether the asserted dependent claims overcome the challenges of running an application in a cloud environment in an inventive manner." (D.I. 132 at 26) (citing Berkheimer, 881 F.3d at 1370)
Plaintiff does not point to any intrinsic evidence to support its position. Nothing in the claim language with respect to the dependent claims indicates anything inventive about the methods of the cloud computing environment or how those methods accomplish anything inventive. In particular, to the extent Plaintiff is claiming that what is inventive is the "user-centric" approach, the Court is persuaded by Defendants that no claim language incorporates or requires the "user-centric" approach. (See Tr. at 69)
For instance, Claims 5 and 6 do not specify how the forecasting is performed, what monitoring data is used, or how it is used; any generic algorithm, neural network, or regression analysis could be used. Claim 8 does not limit the method to any specific algorithm or user interface; any generic algorithm or user interface could be used. Claim 9 does not teach how the geographic data is created or determined, or what type of data is required; any generic method or data could be used. Claim 11 does not limit how the security information is collected, how the security action is determined, or how the security event is used; any generic method could be used. Plaintiff has not cited to any portion of the specification that fills any of these gaps.
Although Plaintiff tries to rely on expert testimony, here this is insufficient to create a genuine issue of material fact. See Mortg. Grader, 811 F.3d at 1325; see also Move, Inc. v. Real Estate All. Ltd., 721 Fed.Appx. 950, 957 (Fed. Cir. 2018) (noting, in context of summary judgment, "expert's conclusory declaration ... [and] bald assertion does not satisfy the inventive concept requirement"). The intrinsic evidence does not support Plaintiff's position. No reasonable fact finder could find for Plaintiff.
Thus, the Court finds that the dependent claims, each viewed individually and as an ordered combination, lack an inventive concept. See Secured Mail Sols. LLC
In sum, because the claims are directed to an abstract idea and nothing in the claims add an inventive concept, the claims are not patent eligible under § 101.
The asserted claims of the '974 patent are not patent eligible under § 101. Hence, the Court will grant Defendants' renewed motion for summary judgment and will deny Plaintiff's renewed motion to reconsider the Court's previous Order invalidating certain asserted claims.
At Wilmington, this
For the reasons set forth in the Memorandum Opinion issued this date,
2. Plaintiffs Motion for Reconsideration of Plaintiff's Renewed Motion for the Court to Reconsider the March 31, 2016 Order in Light of Subsequently-Issued Authority (D.I. 131) is