ANDREWS, U.S. DISTRICT JUDGE.
Currently pending before the Court is Defendant's Motion for Judgment on the Pleadings. (D.I. 39). The parties have fully briefed the issues. (D.I. 39, 46, 107). The Court heard oral argument on December 4, 2018. (D.I. 109). After considering the parties' briefing and arguments, the Court GRANTS Defendant's Motion for judgment on the pleadings.
Plaintiff Baggage Airlines Guest Services, Inc. filed suit on August 24, 2017 against Defendant Roadie, Inc. in the United States District Court for the Middle District of Florida. (D.I. 1). Plaintiff's Complaint alleges that Defendant infringes U.S. Patent No. 9,659,336 ("the '336 patent") both directly and indirectly by inducing or contributing to infringement by others. (D.I. ¶ 26). On May 9, 2018, the Florida court transferred the case to this Court. (D.I. 67).
The '336 patent "relates to an apparatus, method and system for dispatching baggage." ('336 patent, Abstract). The '336 patent has three independent claims: claim
7. A method of dispatching baggage, comprising:
('336 patent, cl. 7). On February 6, 2018, Defendant filed a Motion for Judgment on the Pleadings under Rule 12(c) for lack of patentable subject matter under 35 U.S.C. § 101 or, in the alternative, for failure to state a claim of infringement. (D.I. 39).
A Rule 12(c) motion for judgment on the pleadings is reviewed under the same standard as a Rule 12(b)(6) motion to dismiss when the Rule 12(c) motion alleges that the plaintiff failed to state a claim upon which relief can be granted. See Turbe v. Gov't of the Virgin Islands,
Section 101 of the Patent Act defines patent-eligible subject matter. It provides: "Whoever 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." 35 U.S.C. § 101. The Supreme Court has recognized an implicit exception for three categories of subject matter not eligible for patentability-laws of nature, natural phenomena, and abstract ideas. Alice Corp. Pty. v. CLS Bank Int'l, 573 U.S. 208, 134 S.Ct. 2347, 2354, 189 L.Ed.2d 296 (2014). The purpose of these carve outs is to protect the "basic tools of scientific and technological work." Mayo Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 132 S.Ct. 1289, 1293, 182 L.Ed.2d 321 (2012). "[A] process is not unpatentable simply because it contains a law of nature or a mathematical algorithm," as "an application of a law of nature or mathematical formula to a known structure or process may well be deserving of patent protection." Id. at 1293-94 (cleaned up). In order "to 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.'" Id. at 1294 (emphasis omitted).
The Supreme Court recently reaffirmed the framework laid out in Mayo "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, the court must determine whether the claims are drawn to a patent-ineligible concept. Id. If the answer is yes, the court must look to "the elements of the claim both individually and as an `ordered combination'" to see if there is 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.'" Id. (alteration in original). "A claim that recites an abstract idea must include `additional features' to ensure that the [claim] is more than a drafting effort designed to monopolize the [abstract idea]." Id. at 2357. Further, "the prohibition against patenting abstract ideas cannot be circumvented by attempting to limit the use of [the idea] to a particular technological environment." Id. at 2358 (quoting Bilski v. Kappos, 561 U.S. 593, 610-11, 130 S.Ct. 3218, 177 L.Ed.2d 792 (2010)). Thus, "the mere recitation of a generic computer cannot transform a patent-ineligible abstract
"Whether a claim is drawn to patent-eligible subject matter under § 101 is an issue of law," and "is a matter of both claim construction and statutory construction." In re Bilski, 545 F.3d 943, 951 (Fed. Cir. 2008), aff'd sub nom. Bilski v. Kappos, 561 U.S. 593, 130 S.Ct. 3218, 177 L.Ed.2d 792 (2010). "Claim construction is a question of law ...." In re Nuijten, 500 F.3d 1346, 1352 (Fed. Cir. 2007). At Alice step two, however, "[w]hether something is well-understood, routine, and conventional to a skilled artisan at the time of the patent is a factual determination." Berkheimer v. HP Inc., 881 F.3d 1360, 1369 (Fed. Cir. 2018).
The Federal Circuit has held that the district court is not required to individually address claims not asserted or identified by the non-moving party, so long as the court identifies a representative claim and "all the claims are substantially similar and linked to the same abstract idea." Content Extraction & Transmission LLC v. Wells Fargo Bank, Nat'l Ass'n, 776 F.3d 1343, 1348 (Fed. Cir. 2014) (internal quotation marks omitted).
"First, we determine whether the claims at issue are directed to [an abstract idea]." Alice, 134 S.Ct. at 2355. "The `abstract ideas' category embodies `the longstanding rule that an idea of itself is not patentable.'" Id. (quoting Gottschalk v. Benson, 409 U.S. 63, 67, 93 S.Ct. 253, 34 L.Ed.2d 273 (1972)). "The Supreme Court has not established a definitive rule to determine what constitutes an `abstract idea' sufficient to satisfy the first step of the Mayo/Alice inquiry." Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1334 (Fed. Cir. 2016). The Supreme Court has recognized, however, that "fundamental economic practice[s]," Bilski, 561 U.S. at 611, 130 S.Ct. 3218, "method[s] of organizing human activity," Alice, 134 S.Ct. at 2356, and mathematical algorithms, Benson, 409 U.S. at 64, 93 S.Ct. 253, are abstract ideas. In navigating the parameters of such categories, courts have generally sought to "compare claims at issue to those claims already found to be directed to an abstract idea in previous cases." Enfish, 822 F.3d at 1334. "[S]ome improvements in computer-related technology when appropriately claimed are undoubtedly not abstract." Id. at 1335. "[I]n determining whether the claims are directed to an abstract idea, we must be careful to avoid oversimplifying the claims because `[a]t some level, all inventions ... embody, use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas.'" In re TLI Commc'ns LLC Patent Litig., 823 F.3d 607, 611 (Fed. Cir. 2016) (alterations in original) (quoting Alice, 134 S.Ct. at 2354).
Defendant asserts that the independent claims of the '336 patent are directed to the abstract idea of "coordinating and monitoring baggage delivery." (D.I. 39 at 12). Plaintiff responds that the claims are a "technology-based solution that implements technical components in a non-conventional way." (D.I. 46 at 8-9). For the following reasons, I find that the claims of the '336 patent are directed to the abstract idea of "coordinating and monitoring baggage delivery."
Claim 7 of the '336 patent is the independent method claim of the patent. The method embodies the basic concept of coordinating and monitoring baggage delivery. Coordinating and monitoring baggage
Plaintiff argues the '336 patent claims are "directed to a `new and useful technique' for performing a particular task" and therefore cannot be directed to an abstract idea. (D.I. 46 at 7). To support this assertion, Plaintiff points to several cases where the court held the patent claims "improved an existing technological process" and were therefore non-abstract. Alice, 134 S.Ct. at 2358 (discussing the claims in Diehr); Diamond v. Diehr, 450 U.S. 175, 101 S.Ct. 1048, 67 L.Ed.2d 155 (1981) (finding method for calculating optimal cure time for rubber patent-eligible); Thales Visionix Inc. v. United States, 850 F.3d 1343 (Fed. Cir. 2017) (finding claims using sensors to more efficiently track an object on a moving platform patent-eligible). However, these cases each involved an improvement to the underlying method in addition to implementing technology to achieve the claims. At oral argument, Plaintiff pointed to Genedics, LLC v. Meta Co., 2018 WL 3991474 (D. Del. Aug. 21, 2018) as a case representing the proper way to conduct the § 101 inquiry. (D.I. 109 at 21:16-24). In Genedics, the court declined to determine whether claims reciting a method of manipulating an image through a three-dimensional user interface were directed to the abstract idea of "human manipulation of three-dimensional objects." Id. at *8. The court there, however, found that the claims "do seem to make a point to refer to what looks, on its face, to be a particular way of using sensors to determine a user's touch point and/or sense interaction with 3-D objects." Id. at *7. In contrast, the claims here do not cite a particular way of communicating information to coordinate and monitor baggage delivery.
Rather, the claims of the '336 patent are far more similar to those in GT Nexus, Inc. v. Inttra, Inc. where the patents-in-suit disclosed an online system and method for buyers and sellers of international container transportation services. 2015 WL 6747142 (N.D. Cal. Nov. 5, 2015), aff'd, 669 F. App'x 562 (Fed. Cir. 2016) (per curiam). There, the court found that "the shipping of goods is a conventional business practice `long prevalent in our system of commerce.'" Id. at *5 (quoting Alice, 134 S.Ct. at 2350). The patent claims also "describe[d] user and carrier computers connected to a `common carrier system,' itself comprised of servers and databases" with non-specific hardware. GT Nexus, 2015 WL 6747142 at *5. Here, the specification recognizes that coordinating and monitoring baggage delivery is a conventional business practice. ('336 patent col 1:10-30). The specification states that the invention relates to "improved systems and methods for coordinating and monitoring baggage
At oral argument, Plaintiff also asserted that the claims were specific and limited enough to avoid Alice's concern of preemption. Plaintiff specifically pointed to the inclusion of the "selection to hold delivery" claim limitation as avoiding preemption and directed to a non-abstract idea as an improvement upon the prior art. Plaintiff and Defendant dispute the construction of the term "selection to hold delivery" as used in the claims. (D.I. 66-1 at 2). For the purposes of this motion, I will adopt Plaintiffs proposed construction: "sending a communication to the deliverer via the server to change the delivery time." (Id.). Even using this construction, however, this term merely implements the abstract idea of contacting a delivery person to change the delivery time using the generic server. This claim limitation neither narrows the invention to avoid preemption nor makes it directed to a non-abstract idea.
Therefore, the Court determines that the claims of the '336 patent are directed to the abstract idea of "coordinating and monitoring baggage delivery."
The determination that a patent is directed to an abstract idea "does not render the subject matter ineligible." Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1346 (Fed. Cir. 2015). Having decided that the `336 patent claims are directed to an abstract idea, the Court must next "determine whether the claims do significantly more than simply describe the abstract method." Ultramercial, 772 F.3d at 715. Since "a known idea, or one that is routine and conventional, is not inventive in patent terms," this analysis "favors inquiries analogous to those undertaken for determination of patentable invention." Internet Patents, 790 F.3d at 1346. Indeed, the Federal Circuit has noted that the two stages of the Alice two-step inquiry "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. 2015). Furthermore, neither "[a] simple instruction to apply an abstract idea on a computer," nor "claiming the improved speed or efficiency inherent with applying the abstract idea on a computer" satisfies the requirement of an "inventive concept." Intellectual Ventures I LLC v. Capital One Bank (USA), 792 F.3d 1363, 1367 (Fed. Cir. 2015); see also Bancorp Servs., LLC v. Sun Life Assurance Co. of Can., 687 F.3d 1266, 1278 (Fed. Cir. 2012) ("[T]he fact that the required calculations could be performed more efficiently via a computer does not materially alter the patent eligibility of the claimed subject matter.").
Plaintiff argues that the '336 contains several inventive concepts which make the claims patent-eligible. (D.I. 46 at 9). Defendant asserts that there is no inventive concept that saves the patent because the claims solely recite the use of conventional and generic computer elements to implement the claims. (D.I. 39 at 17-18). For the following reasons, I find
For the foregoing reasons, the Court GRANTS Defendant's Motion for Judgment on the Pleadings.
For the reasons set forth in the accompanying Memorandum Opinion, IT IS HEREBY ORDERED that Defendant's Motion for Judgment on the Pleadings (D.I. 39) is