VIRGINIA M. HERNANDEZ COVINGTON, District Judge.
This cause comes before the Court pursuant to Plaintiff StoneEagle Services, Inc.'s Opening Claim Construction Brief (Doc. # 122), Defendants Pay-Plus Solutions, Inc. and Premier Healthcare Exchange, Inc.'s
In this patent infringement action, Plaintiff alleges that Defendants willfully infringed Plaintiff's rights under two patents: Reissue Patent No. US RE43,904 E ("the 904 Patent") and Reissue Patent No. US RE44,748 E ("the 748 Patent"). (Doc. # 66 at ¶¶ 1, 8-10 & Ex. A, B). Both patents cover a health care provider reimbursement system, by which a payor, such as an insurance company, makes "a virtual payment to a medical provider by transmitting a stored-value card account payment of the authorized benefit amount, together with an explanation of benefits." (
To determine whether Defendants infringed the 904 and 748 Patents, it is first necessary to determine the scope of protection the Patents afford. The parties disagree about the proper construction of language contained in several claims of the 904 and 748 Patents; specifically, claims 2, 7, 12, 17, and 22 of the 904 Patent and claims 7, 13, 19, and 25 of the 748 Patent.
The function of patent claims is "(a) to point out what the invention is in such a way as to distinguish it from what was previously known, i.e., from the prior art; and (b) to define the scope of protection afforded by the patent. In both of those aspects, claims are not technical descriptions of the disclosed inventions but are legal documents like the descriptions of lands by metes and bounds in a deed which define the area conveyed but do not describe the land."
In
"Patent infringement actions are composed of two phases."
The construction of claims is based primarily on intrinsic evidence: the claim language, the specification, and the prosecution history.
"When the meaning of words in a claim is in dispute, the specification and prosecution history can provide relevant information about the scope and meaning of the claim."
"The [c]ourt must be careful, however, to avoid reading limitations from the specification into the claim."
The court may also consider extrinsic evidence. Alps S.,
The parties agree that the phrase "stored-value card" should be construed as "credit card, debit card, or EFT card." (
Plaintiff provided the Court with a list of terms to construe, whereas Defendants request that this Court construe the entirety of various phrases. (
Plaintiff requests the following construction for this term: "information describing medical services provided to a patient by a health care provider, an amount billed by the health care provider, and an amount paid by the patient's insurance company." (Doc. # 122 at 7). According to Plaintiff, this construction "comports with the contextual use of the phrase" in the claims, the specification of the 904 Patent, and "with the meaning understood in the medical payments industry." (
Defendants contend, however, that Plaintiff's construction is flawed as it "(1) conflicts with the use of the term in the claims and specification and (2) excludes embodiments of the invention." (Doc. # 127 at 29). To that end, Defendants argue that the claims refer to "explanation of benefits" as a "tangible item," rather than just "abstract information." (
According to the background section of the 904 Patent, "the [explanation of benefits] lists the amount the health care provider billed the Payer's company and the amount the Payer's company paid on the claim. It may also list the contractual discount amount and the patient responsibility." (Doc. # 66-1). At the
Therefore, the Court construes the term "explanation of benefits" as follows: "information describing, but not limited to, the amount the health care provider billed the Payer's company, the amount the Payer's company paid on the claim, and the contractual discount amount and the patient responsibility."
Plaintiff contends that this phrase should be construed as: "receiving, retrieving, or otherwise obtaining [explanation of payment] sent or conveyed from the administrator to the health care provider." (Doc. # 122 at 16). According to Plaintiff, the 904 Patent specification describes that the administrator generates the explanation of benefits, which may then be merged with other information and that the merged explanation of benefits and payment information is transmitted to the health care provider. (
To the contrary, Defendants suggest the following construction: "receiving, retrieving or otherwise acquiring an explanation of benefits and payment information from a transmission of that information that is sent
"In the absence of an express intent . . . the words [of claims] are presumed to take on the ordinary and customary meanings attributed to them by those of ordinary skill in the art."
A review of the 904 Patent as a whole fails to demonstrate that the addition of the term "directly" is required, as suggested by Defendants. To that end, Defendants have failed to establish that the claims, specification, and prosecution history of the 904 Patent demonstrate that the patentee, Mr. Robert Allen, defined the claims — with reasonable clarity and deliberateness — to mandate a narrower interpretation (i.e., use of term "directly"). For support, the Court points to the "Detailed Description of the Preferred Embodiment" as an example, which states:
(Doc. # 66-1 at 8). There is no requirement — explicit or otherwise — that such transmission shall go directly from administrator to health care provider, as suggested by Defendants.
At the
Therefore, taking into consideration other constructions, as detailed below, the phrase "intercepting the explanation of benefits and payment information transmitted from the administrator to the health care provider" shall be construed as follows: "obtaining information describing, but not limited to, the amount the health care provider billed the Payer's company; the amount the Payer's company paid on the claim; and the contractual discount amount and the patient responsibility and payment information, which is sent or conveyed from the administrator to the health care provider."
Plaintiff requests that this Court construe this term "in the same manner as it was construed by the PTAB
Defendants do not suggest that the PTAB's construction is wrong, but point out that "the PTAB's construction [of the phrase single-use] does not necessarily reflect how one of skill in the art would understand the terms after reading the entire patent under
Upon review of the 904 Patent as a whole, the Court adopts Plaintiff's construction in part. For the reasons discussed below; in particular, in the Court's discussion on the phrase "unique, single-use stored-value card account," the Court finds it necessary to delete from Plaintiff's proposed construction the phrase "single type of services terminal." Therefore, the Court construes the term "single-use" as follows: "associated with a single type of card to be used for a single payment."
Plaintiff submits that this phrase should be construed as: "using one or more computers to designate for, fund, or otherwise associate funds with a one of a kind, credit card, debit card, or EFT card account, which card account is associated with a single type of card to be used with a single type of services terminal and no other type of payment terminal for a single payment, in an amount equal to a single, adjudicated benefit payment." (Doc. # 122 at 18). Plaintiff argues that this construction is "consistent with the contextual use of the terms in the respective claims, the specification as a whole, and the opinion of Defendants' own expert" — Mr. Thomas N. Turi. (
Defendants argue against Plaintiff's construction as "[Plaintiff] proposes the exact same construction for [`loading' and `funding']. But, [Plaintiff's] proposed construction seeks to broaden the two simple terms to also include (i) `designating for' and (ii) `associating funds with.' In other words, [Plaintiff] argues that `funding' means `funding'
To support their position, Defendants provide that (1) claim 7 of the 904 Patent requires "loading," which Defendants argue equals "funding" the account and (2) claims 17 and 22 of the 904 Patent expressly require "funding" or a "system operable to fund" a single-use stored-value card account with an amount equal to the approved payment by one or more computers. (
The parties agree that "loading" means "funding," albeit Plaintiff seeks additional alternatives to funding. However, upon review of the 904 Patent as a whole, the Court finds it unnecessary to add the additional alternatives as requested by Plaintiff. Namely, as suggested by Defendants, it is unclear what Plaintiff means by "designating for" or "associating funds with," and therefore, Plaintiff's construction "injects ambiguity into the claims" of the 904 Patent. (
Thus, taking into consideration other constructions, the Court construes the phrase "loading a unique, single-use stored-value card account by one or more computers with an amount equal to a single adjudicated benefit payment" as follows: "funding — by one or more computers — an account — that is only used once — [for funding a credit, debit, or EFT card] that is associated with a single type of card to be used for a single payment, to an amount equal to a single adjudicated benefit payment."
Plaintiff suggests that the terms "merge" and "merging" should be construed as: "combining together, combine." (Doc. # 122 at 12). According to Plaintiff, these terms are "non-technical terms that are used in the 904 Patent in keeping with their ordinary meaning." (
Defendants submit that, in the context of the relevant Patents, the proper construction of the above phrases is: "using a computer to combine into
As set forth in Baldwin Graphic Systems, Inc. v. Siebert, Inc., "an indefinite article `a' or `an' in patent parlance carries the meaning of `one or more' in open-ended claims containing the transitional phrase `comprising.'" 512 F.3d 1338, 1342-43 (Fed. Cir. 2008) (quoting
The exceptions to this rule are "extremely limited:" a patentee must "evince[ ] a clear intent" to limit "a" or "an" to "one." Id. at 1342. Thus, an exception only arises "where the language of the claims themselves, the specification, or the prosecution history necessitate a departure from the rule."
Here, the abstract for the 904 Patent (and 748 Patent) states that the Patent involves "[a] method of facilitating payment of health care benefits to on behalf of a payer comprising the step of electronically transmitting a stored-value card account payment of the authorized benefit amount
To the contrary, Defendants point to the prosecution history of the relevant Patents, and argue that "the claims must be understood to require creating and transmitting a single electronic file containing [explanation of benefits] and card payment information." (Doc. # 127 at 15). According to Defendants, Plaintiff's original claims attempted to cover transmitting the explanation of benefits and card information at the same time (i.e., concurrently). (
However, Defendants provide that the original claims were rejected in view of a prior art reference that already disclosed such "concurrent transmission," and in response, Plaintiff "cancelled its initial claims and submitted new claims explicitly limited to claimed transmission of a `computer-generated image file' containing `both' the payment information and the explanation of benefits." (
According to Defendants, "[i]n the Notice of Allowability, the [Patent and Trademark Office] explained that the claims were allowed, in part, because the prior art failed to disclose `creating a computer-generated image file containing the stored-value card account number . . . [and] an explanation of benefits.'" (
To support their position, Defendants rely on
In
Here, like in
Furthermore, the Patent materials are devoid of any indication that the plain language of the claims "clearly indicate" that the relevant information should be merged into a "single" or "one" file or document. Finally, Defendants suggest that the Patent and Trademark Office examiner allowed the Patents' claims because the prior art "fails to disclose the stored value card is loaded with funds equal to the authorized benefit payment, and creating a computer-generated image file containing the stored-value card account number, a card verification value code, and expiration date, and an explanation of benefits." (Doc. # 127 at 15). However, even if true, this contention does not suggest that the 904 Patent (and 748 Patent)
Further, it is telling that the PTAB determined that "[a] relevant definition of the term `merge' is `[t]o combine two or more items, such as lists, in an ordered way and
Both parties agree that the terms "merge" and "merging" equate to "combine," although the parties disagree as to whether it is to "combine" the information into one single document or file. Therefore, the Court determines that the appropriate construction of the phrases: (1) "merging . . . into a computer generated image file" is "combining . . . into a computer generated electronic file that contains an image;" (2) "merging . . . into a document by one or more computers" as "combining . . . by one or more computers a writing conveying information that can be stored as a file;" (3) "merging . . . into an electronic file by said one or more computers" as "combining . . . into an electronic file by said one or more computers;" and (4) "merge . . . in an electronic file" as "combine . . . in an electronic file."
Plaintiff requests a construction of this term as follows: "an electronic file that contains an image," which Plaintiff argues is consistent with the 904 Patent specification, claim 2 of the 904 Patent, and the PTAB's construction of the term. (Doc. # 122 at 13). At the Markman hearing, Defendants indicated that they did not disagree with Plaintiff's construction, but did not think a construction of this term was necessary for the jury. However, this Court finds that construction of this phrase is appropriate under the circumstances as the Court finds that it would be helpful to the trier of fact. Therefore, as the parties do not disagree on Plaintiff's proposed construction of the term, the Court will construe the term "image file" as "an electronic file that contains an image."
Plaintiff contends that these terms mean: "sending or conveying from one person or place to another" and "sent or conveyed from one person or place to another." (Doc. # 122 at 13). Plaintiff argues that these terms "are common, non-technical terms that are used in the 904 Patent in keeping with their ordinary meaning." (
Defendants, however, submit that the 904 Patent should be read in the computer context, and the terms "transmitting" and "transmitted" should be given their ordinary and customary meaning: "electronically transmitting." (Doc. # 127 at 28). While the Court agrees with Defendants that the ordinary meaning of these terms should apply, the Court disagrees that such meaning of these terms establishes that the terms "transmitting" and "transmitted" should be construed as "electronically transmitting" and "electronically transmitted."
Some of the claims within the 904 Patent explicitly require "computer generated" activity, while others do not. Therefore, the Court declines to read the "electronic" limitation into claims where such limitation is not explicit in the claim language itself. Doing otherwise "would add redundancy to the claims where the limitation is explicit and improperly narrow claims where it is absent." (
For example, if this Court were to construe these terms as suggested by Defendants, claim 12 of the 904 Patent would read in relevant part, "wherein the stored-value card account number is linked to a unique, single-use stored-value card account pre-funded with an amount equal to a single, adjudicated benefit payment, and wherein the document is electronically [electronically sent or conveyed] to the health care provider as payment for the medical services by aid one or more computers." (Doc. # 66-1 at 9). Such repetitive language is unnecessary.
The Court finds that the ordinary and customary meaning of these terms is "sending or conveying from one person or place to another" and "sent or conveyed from one person or place to another." Therefore, the terms "transmitting" and "transmitted" shall be construed as follows: "sending or conveying from one person or place to another" and "sent or conveyed from one person or place to another."
Plaintiff requests a construction of this term as follows: "a written, printed, or electronic matter that provides information." (Doc. # 122 at 14). According to Plaintiff, such construction is consistent with the ordinary meaning of that term, which is defined as "a writing conveying information." (
Defendants submit that the asserted Patents are "directed to computerized systems and methods for transmitting payment and explanations of benefit to health care providers." (Doc. # 127 at 17). To that end, Defendants contend that "[a] person of ordinary skill in the art would understand [this] claim term to be within the specific computer context." (Doc. # 151 at 5). Therefore, Defendants posit that the term "document" should be construed as: "a piece of text considered to be a single item and usually stored as a file." (
Defendants request that this Court construe several phrases that contain the term "unique":
Plaintiff proposes that the term "unique" be construed as "one of a kind." (Doc. # 122 at 15). Plaintiff provides that this term is "a common, non-technical term that is used in the 904 Patent in keeping with its ordinary meaning." (
Defendants contend that "with regard to the term `unique' the specification is silent on the meaning." (Doc. # 127 at 22). Therefore, Defendants suggest that in context "the term `unique' as used to modify `stored-value card account' means an account that is only used once." (
Plaintiff construes this phrase as: "a one of a kind, credit card, debit card, or EFT card account, which card account is associated with a single type of card to be used with a single type of services terminal and no other type of payment terminal for a single payment." (Doc. # 122 at 20).
Conversely, Defendants seek the following construction of this phrase: "a single account (for funding a credit, debit, or EFT card) that is only used once for a single benefit payment." (Doc. # 127 at 21). To support their position, Defendants argue that:
(
Defendants further argue that Plaintiff's proposed construction "runs afoul of the doctrine of claim differentiation as it provides that an independent claim should not be construed as requiring a limitation added by a dependent claim." (
Under the doctrine of claim differentiation, each claim in a patent is presumptively different in scope.
Here, the specification of the 904 Patent indicates that "the stored-value card account payment may only be charged through a medical services terminal." (
Plaintiff construes this phrase as: "a one of a kind, credit card, debit card, or EFT card account, which card account is associated with a single type of card to be used with a single type of services terminal and no other type of payment terminal for a single payment, in an amount equal to a single, adjudicated benefit payment." (Doc. # 122 at 20).
Defendants argue that this phrase should be construed as "a unique, single-use stored-value card account that is funded with money in an amount equal to a single, adjudicated benefit payment before the card information is transmitted to the health care provider." (Doc. # 127 at 25). To support their position, Defendants provide that claim 12 of the 904 Patent includes an additional requirement that the account be "prefunded" — (i.e., that money be transferred into the account
Claim 12 is the only claim in the 904 Patent with the "prefunded" requirement, and therefore, the Court declines to adopt Plaintiff's generalized construction to apply to all claims of the 904 Patent. Rather, the Court adopts the Defendants' proffered construction and incorporates it into previously determined constructions. Thus, the phrase "a unique, single-use stored-value card account prefunded with an amount equal to a single, adjudicated benefit payment" shall be construed as: "an account (for funding a credit, debit, or EFT card) that is only used once and is associated with a single type of card to be used for a single payment that is funded with money in amount equal to a single, adjudicated benefit payment before the card information is sent to the health care provider."
Plaintiff suggests that the terms "sending" and "send" should be construed as "delivering" and "deliver." (Doc. # 122 at 15). Plaintiff argues that these are "common, non-technical terms" that should be afforded their ordinary meaning. (
Defendants suggest that the term "sending" should be given its ordinary and customary meaning. (Doc. # 127 at 28). Defendants further argue that Plaintiff's construction is not within the computerized context of the 904 Patent, and thus, Plaintiff's construction, attempts to remove any requirement that the claims be rooted in computer implemented technology. (
Here, in the context of the 904 Patent, both parties agree that the terms "sending" and "send" should be afforded their ordinary meaning. The Court agrees; and likewise, the Court finds it unnecessary to construe these common, non-technical terms. Further, the Court previously determined that it will not narrow the 904 Patent claims to be read generally in the computer context.
Plaintiff suggests the following construction for this phrase: "obtaining a credit card, debit card, or EFT card account number associated with a single type of card to be used with a single type of services terminal and no other type of payment terminal for a single payment and designating for, funding, or otherwise associating funds with, such card account in an amount equal to the authorized amount." (Doc. # 122 at 17). Plaintiff submits that this construction is a combination of (1) the stipulated construction of the term "stored-value card," (2) Plaintiff's proposed constructions for "single-use" and "loading," and (3) the ordinary meaning of "acquiring." (
To begin, Defendants submit that claim 2 of the 904 patent is invalid as indefinite under 35 U.S.C. § 112
However, the stored-value card account number refers to a number that identifies an account for funding a credit, debit, or EFT card. (
"Indefiniteness is a matter of claim construction, and the same principles that generally govern claim construction are applicable to determining whether allegedly indefinite claim language is subject to construction."
"A claim is invalid as indefinite . . . if the claim is not amenable to construction."
Upon consideration of Defendants' "indefiniteness" challenge, the Court determines that Defendants have failed to meet their burden. Defendants have not only failed to prove indefiniteness clearly and convincingly, they have failed to present any evidence in support of their position. Rather, the Court determines that a person skilled in the art — looking at the 904 Patent as a whole — would understand that an
Thus, the Court turns to the construction of this phrase. Considering the 904 Patent as a whole, and the Court's previous constructions, the Court finds that the proper construction for the phrase "acquiring a single-use stored-value card account number and loading it with funds equal to the authorized amount" is: "obtaining a credit card, debit card or EFT card account number associated with a single type of card to be used for a single payment and funding it with funds equal to the authorized amount."
According to Plaintiff, this phrase should be construed as: "using one or more computers to create one or more related documents that contain . . ." (Doc. # 122 at 19). Plaintiff contends that this construction uses the ordinary meaning of the term "file," which is defined as "an orderly arrangement of papers, cards, etc., as for reference." (
Defendants suggest that this phrase should be construed as "using a computer to generate one computer file containing the stored-value card account number, the adjudicated benefit payment amount, the expiration date, the card verification value code, and the explanation of benefits." (Doc. # 127 at 18). To support their position, Defendants provide the following rationale: (1) claim 7 of both Patents requires "creating a [ ] file . . . by one or more computers;" (2) claim 7 of the 904 Patent further specifies that the file is "computer generated" in addition to specifying that it is created "by one or more computers;" (3) the file must contain "the stored-value card account number, the adjudicated benefit payment amount, a card verification value code, an expiration date, and the explanation of benefits; and (4) both patents require "sending the file to the health care provider." (
For the reasons set forth above; specifically, within the Court's analysis on the terms "merge" and "merging," the Court declines Defendants' narrow construction. Instead, by incorporating its previous constructions, the Court determines that the construction of the phrase "creating a computer generated file containing . . . by one or more computers" is: "using one or more computers to create one or more computer generated related documents containing. . . ."
Plaintiff submits that the construction of this term should be "a credit card, debit card, or EFT card account number." (Doc. # 122 at 20). However, Defendants argue that this term should be construed as "a number that identifies or that
Upon review of the plain language of the 904 Patent, the Court finds that adoption of Defendants' proposed construction is unnecessary to assist the trier of fact. Rather, the Court determines that it is appropriate to construe this phrase using its plain and ordinary meaning: "a credit card, debit card, or EFT card account number."
Based on the Court's previous constructions, the Court determines that this phrase should be construed as follows: "an account (for funding a credit, debit, or EFT card) that is associated with a single type of card to be used for a single payment."
The parties request that this Court construe several terms and phrases in the 748 Patent that this Court has already addressed in its analysis of the 904 Patent; specifically, the following terms and phrases: (1) unique, (2) unique, stored-value card account, (3) unique, single-use stored value card account, (4) explanation of benefits, (5) document, (6) single-use, (7) stored-value card account number, (8) "merge . . . in a file," (9) "merging . . . in a file," (10) "merging . . . into a document by one or more computers," (11) "merge . . . in a file," and (12) "creating a file containing . . . by one or more computers."
For these terms and phrases, this Court incorporates its previous analysis. However, for those terms and phrases applicable only to the 748 Patent, the Court will address each in turn.
Plaintiff suggests the following construction for these phrases: "designating for, funding, or otherwise associating funds for payment with, a particular card account." (Doc. # 122 at 21). According to Plaintiff, such construction uses the ordinary meaning of the term "allocate" together with the PTAB's construction of "funds."
However, Defendants note that the term "funding" and other similar terms (e.g., "loading") are used exclusively in the claims of the 904 Patent, whereas the term "allocating" is used exclusively in the claims of the 748 Patent. (Doc. # 127 at 28). Thus, Defendants argue that the patentee, Mr. Allen, has demonstrated a clear distinction between the terms "allocate" and "fund." (
Although Plaintiff provides the declaration of Mr. Allen to support its position that the terms "allocating" "allocated" and "allocate" in the 748 Patent mean "designating for or otherwise associating with" (same as used in 904 Patent), the Court cannot overlook the fact that different terms were chosen to be used in the 904 Patent and the 748 Patent, even though the Patents share a parent patent. Thus, the Court declines Plaintiff's construction, and instead, the Court agrees with Defendants that these terms should be afforded their ordinary and customary meaning.
The Court's review of the ordinary meaning of "allocate" is to set apart for a particular purpose, assign, or allot. Therefore, the Court finds that giving these phrases their ordinary and customary meaning — as proffered by Defendants — the terms "allocating funds," "allocated within an account," and "allocate funds" should be construed as "to set apart for a particular purpose, assign, or allot."
Plaintiff proposes that the proper construction of this term is "one or more related documents." (Doc. # 122 at 23). Plaintiff argues that this construction "is consistent with its ordinary meaning and its use in the 748 Patent," and the term "file" is defined as "a collection of related data records." (
Defendants provide that "[t]he asserted patents are directed to computerized systems and methods for transmitting payment and explanations of benefit to health care providers." (Doc. # 127 at 17). Understanding this, Defendants suggest that the "file . . . term[] should be accorded [its] meaning within that computer context" — "a collection of information, referred to by file name." (
The 748 Patent specification indicates that the "file" shall contain the following information: (1) stored-value card account number, (2) the adjudicated benefit payment amount, (3) a card verification value code, (4) an expiration date, and (5) the explanation of benefits. (
Thus, combining aspects of both parties' proposed constructions, the Court construes the term "file" as: "one or more documents containing a collection of information, referred to by file name."
According to Defendants, several claims of the 748 Patent require merging stored value card information and explanation of benefits into a file or document "by one or more computers," and subsequently sending that file or document to the health care provider. (Doc. # 151 at 14). As such, pursuant to the plain language of the claims, Defendants provide that the file or document to be "sent" is a computer file or document. (
According to Plaintiff, however, none of the claims contained in the 748 Patent require "electronically transmitting" a file or document. (Doc. # 171 at 5). For example, claim 7 of the 748 Patent requires "sending the file to the health care provider," without specifying that the "sending" be electronic. (
While the claims contained in the 748 Patent indicate that the information is merged into a file or document by one or more computers, the claim language does not limit how the information is sent to health care provider; specifically, the 748 Patent does not use the term "electronically transmitted." Thus, for this Court to incorporate Defendants' construction would be to add meaning to the claims that was not explicitly requested by the patentee. Therefore, the Court declines to infer that the 748 Patent requires electronic transmission; especially as the 904 Patent explicitly requires, at times, "electronic transmission or sending" of the merged file or document and the 748 does not. Rather, as set forth above, the Court determines that the terms "sending" and "send" should be accorded their ordinary and customary meaning, and therefore, the Court declines to construe these common, non-technical terms.
Based on this Court's previous constructions, the Court determines that the ordinary meaning of this term is "a credit card, debit card, or EFT card account."
Accordingly, it is
(1) Plaintiff StoneEagle Services, Inc.'s Opening Claim Construction Brief (Doc. # 122) is
(2) Defendants Pay-Plus Solutions, Inc. and Premier Healthcare Exchange, Inc.'s