Distefano Patent Trust III, LLC v. Linkedin Corp.
Distefano Patent Trust III, LLC v. Linkedin Corp.
Opinion of the Court
MEMORANDUM OPINION
STARK, U.S. District Judge *619Plaintiff DiStefano Patent Trust III, LLC ("Plaintiff or "DiStefano") asserts that Defendant LinkedIn Corporation ("Defendant" or "LinkedIn") infringes DiStefano's
I. BACKGROUND
There '760 patent relates to "developing web pages through the use of a graphical user interface." '760 Pat. at 1:25-26. Specifically, the patent describes a method of creating a reciprocal arrangement between two websites in order to market the first website at the second website. See
DiStefano contends LinkedIn infringes claims 1, 4, 5, 8, and 10 of the '760 patent. (D.I. 11 at 4)
1. A method, within and by a computer hardware system that is configured to serve a first web page associated with a first user and a second web page associated with a second user, comprising:
receiving, from a first computer associated with the first user, a first indication to opt into a reciprocal linking arrangement;
receiving, from a second computer associated with the second user, a second indication to opt into the reciprocal linking arrangement;
establishing, within a database associated with the computer hardware system, the reciprocal linking arrangement based upon both the first and second users opting to participate in the reciprocal linking arrangement;
including, within the second web page and based upon the reciprocal linking arrangement, a second functional identification element associated with the first entity; and
including, within the first web page and based upon the reciprocal linking arrangement, a first functional identification element associated with the second entity, wherein *620the second functional identification element includes a link to the first web page, and
the first functional identification element includes a link to the second web page.
The remaining asserted claims all depend from claim 1. During oral argument, the parties agreed that claim 1 is representative. (See Tr. at 4 ("[C]laim 1 is representative."), 50 ("[T]his case could rise or fall on claim 1 as to the asserted claims.") )
II. LEGAL STANDARDS
A. Rule 12(b)(6) Motion to Dismiss
Evaluating a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) requires the Court to accept as true all material allegations of the complaint. See Spruill v. Gillis ,
A well-pleaded complaint must contain more than mere labels and conclusions. See Ashcroft v. Iqbal ,
"To survive a motion to dismiss, a civil plaintiff must allege facts that 'raise a right to relief above the speculative level on the assumption that the allegations in the complaint are true (even if doubtful in fact).' " Victaulic Co. v. Tieman ,
The Court is not obligated to accept as true "bald assertions," Morse v. Lower Merion Sch. Dist. ,
*621B. Patentable Subject Matter
Under
In Mayo Collaborative Services v. Prometheus Laboratories, Inc. ,
At step one, "the claims are considered in their entirety to ascertain whether their character as a whole is directed to excluded subject matter." Internet Patents Corp. v. Active Network, Inc. ,
In conducting the step one analysis, courts should not "oversimplif[y]" key inventive concepts or "downplay" an invention's benefits. Enfish, LLC v. Microsoft Corp. ,
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." McRo ,
*622Alice ,
However, "[t]he inventive concept inquiry requires more than recognizing that each claim element, by itself, was known in the art." Bascom ,
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 ,
"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 ,
As part of the step two "inventive concept" inquiry, the Federal Circuit has looked to the claims as well as the specification. See Affinity Labs of Texas, LLC v. Amazon.com Inc. ,
*623At both steps one and two, it is often useful for the Court to compare the claims at issue with claims that have been considered in the now considerably large body of decisions applying § 101. See Amdocs (Israel) Ltd. v. Openet Telecom, Inc. ,
Finally, as a procedural matter, the Federal Circuit has observed frequently that § 101 disputes may be amenable to resolution on motions for judgment on the pleadings, motions to dismiss, or summary judgment. See, e.g. , Berkheimer ,
III. DISCUSSION
LinkedIn contends that the claims of the '760 patent are ineligible under § 101 because they are directed to the abstract idea of facilitating cross-marketing relationships and fail to add any inventive concept, even when considered as an ordered combination. (See D.I. 13 at 5; see also Tr. at 15-16) DiStefano responds that the patent recites non-abstract, particularized methods of web design and hosting that improve "an already computerized field of web page development," making web development "easier for everyone," including those with and without technical knowledge. (Tr. at 26-28) DiStefano further contends that the ordered combination of the claim elements recites an inventive concept. (See D.I. 16 at 1,7, 13-14) The Court addresses each argument in turn.
A. Step One
At step one of the Alice / Mayo test, the question is whether the asserted claims are directed to a patent-ineligible concept. "[A]ll inventions at some level embody, use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas." Mayo ,
Here, the Court agrees with LinkedIn that the asserted claims of the '760 patent are directed to the abstract idea of facilitating cross-marketing relationships. In broad terms, the method of claim 1 comprises two users on two computers opting into a reciprocal linking arrangement and then, through use of a computer database, establishing the reciprocal linking arrangements between the two users *624such that a link to the first page appears on the second and a link to the second page appears on the first. See '760 pat. at cl. 1. As LinkedIn explains, this method "is not essentially different from reciprocal marketing relationships formed between two brick and mortar stores selling complementary products." (D.I. 13 at 6) Rather than improving any technical problem in the prior art, the patent "relate[s] to ... marketing problems or dealing with the hassle of matchmaking." (Tr. at 12; see also '760 Pat. at 4:20-25 ("The present invention further relates to an internet-based system for assisting a website designer ... in order to market the first website at the second website."); Tr. at 18 ("[I]t may be difficult for novice web designers to arrange those relationships; but those aren't technical problems, those are marketing problems."); id. at 19 ("[A]voiding the hassle of having to interact with the web designer also is not a technical problem.") )
DiStefano contends that LinkedIn oversimplifies the invention because the claims teach "transport[ing] the user instantly to the linked website," an invention not (at least yet) realistic in the real-world because the third-party agent would have to "port the physical storefronts ... into its own establishment." (D.I. 16 at 8-9) But simply because the invention has no direct physical corollary does not render the claims patent-eligible, as DiStefano acknowledges. (Tr. at 30-31)
In Alice , the Supreme Court found claims directed to a method of "facilitat[ing] the exchange of financial obligations between two parties by using a computer system as a third-party intermediary" unpatentable. Alice ,
Accordingly, the Court finds the asserted patent claims abstract under Alice step one.
*625B. Step Two
At step two, the Court looks at "the elements of each claim 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 ,
Claim 1 is directed to the method of facilitating cross-linking relationships by establishing reciprocal arrangements. Not only does the specification acknowledge that using reciprocal links on web pages was "very common" in the prior art, see '760 Pat. at 2:43-49; see also id. at 5:52-54 ("[T]he preferred system ... includes a server computer ... operably connected to the internet ... using standard techniques well-known in the art."), but, more importantly, the claims are silent as to any manner in which the improvement actually functions and instead, only claim the desired result. See '760 Pat. at cl. 1 (claiming method steps of "receiving ... a first [or second] indication to opt into a reciprocal linking arrangement," "establishing, within a database ... the reciprocal linking arrangement" based on the users opting in, and "including ... a first [or second] functional identification element" within each web page). Nowhere do the claims (or specification) explain how opt-ins are received, how the database works or what type of database is actually used, or how links and identification elements are created or added to the web pages.
Similarly, while the specification recognizes that creating such links in the prior art was "not always easy" and could be difficult without contractual arrangements, see id. at 3:49-54, the claims do not explain how the claimed system makes the creation of links any easier. Instead, the claims broadly direct that users opt into using the system and then the system establishes the linking arrangement. These conventional steps of opting into a reciprocal linking arrangement, establishing the reciprocal linking arrangement in a computer database, and including links on the reciprocal web pages, considered alone or as an ordered combination, fail to render the claims patent-eligible. See buySAFE ,
DiStefano contends a factual dispute exists regarding whether the ordered combination of steps is routine and conventional, but given its multiple concessions during oral argument - including that the method involves all conventional elements present in the prior art and that the claimed method is simply an automation of already-established steps - and its failure to identify any reason to find the ordered combination non-routine, the Court sees no reason to conclude that the method steps, considered alone or in combination, are anything but routine and conventional. (See Tr. at 40 ("The patent concedes that all of the individual components, at least those that are *626at issue here, are conventional components. There is no doubt about that. We don't contest it."); id. at 47 (" '[C]reating reciprocal links on web pages' was well known in the prior art."); id. at 48 ("[P]rior art processes accomplish the same result.") )
Finally, DiStefano contends factual allegations in the First Amended Complaint support the finding of an inventive concept. (See Tr. at 36-37; D.I. 16 at 10-11) The First Amended Complaint alleges that the claims of the '760 patent"resolve technical problems related to a streamlined process for developing web pages and posting those web pages on the internet." (D.I. 11 at 3) As addressed earlier, however, the asserted claims do not describe with any detail how to create web pages or create links on a web page, or provide any details surrounding the database associated with the computer hardware system. The remaining relevant allegations in the First Amended Complaint broadly assert that the claims "recite one or more inventive concepts" and "recite an invention that is not merely routine or conventional [and] does not preempt all ways of ... establish[ing] reciprocal linking arrangements between web pages." (Id. ) Each of these allegations, however, merely recites a boilerplate legal conclusion without any supporting facts in the remaining sections of the complaint, in the specification, or in the claims.
IV. CONCLUSION
For the reasons stated above, the Court will grant LinkedIn's motion to dismiss. An order follows.
ORDER
At Wilmington this 28th day of September, 2018 :
For the reasons stated in the Memorandum Order issued this same date,
IT IS HEREBY ORDERED that:
1. LinkedIn's motion to dismiss (D.I. 12) is GRANTED.
2. The parties shall meet and confer and, no later than October 5, 2018, submit a joint status report providing the Court with their position(s) as to how this case should now proceed.
In its motion to dismiss, LinkedIn asserts that "there is no meaningful difference between the asserted claims and unasserted claims for purposes of invalidity under Section 101" and, therefore, requests the Court hold all claims invalid. (See D.I. 13 at 3 n.1) DiStefano responds that the unasserted claims are not part of this action and further, the asserted claims are directed to a method, whereas the unasserted claims are directed to a computer hardware system. (D.I. 16 at 7 n.1) The Court agrees with DiStefano that the unasserted claims are not a part of this action and thus, the Court's analysis is limited to the asserted claims. See Alcon Research Ltd. v. Barr Labs., Inc. ,
"The asserted dependent claims - 4, 5, 8, and 10 - add the following limitations: (4) a third party requesting the first web page and having the web page provided to it; (5) the 'first web page' including 'one or more web pages'; (8) providing the first user a plurality of recommended web pages; and (10) the 'second functional identification element' including an 'image.' " (D.I. 13 at 3)
Moreover, there is a corollary to the '760 patent in the physical world: seeing an advertisement at one storefront for a second storefront and then visiting the second storefront via any mode of transportation (albeit not instantly).
LinkedIn submitted a notice of subsequent authority on September 14, pursuant to D. Del. LR 7.2(b), directing the Court to a recent "Final Rejection of certain claims in United States Patent Application No. 13/946,461," which claims priority to the same patent application and inventor as the '760 patent and shares many similarities. (D.I. 26) This is relevant, LinkedIn argues, because claims in this recent application were rejected under
During oral argument, DiStefano conceded that no claim construction disputes preclude the Court's ruling on LinkedIn's motion. (See Tr. at 49-50) ("[T]he real heart of the issue here is not one of claim construction.")
While DiStefano faults LinkedIn for failing to separately address preemption (see D.I. 16 at 11), Federal Circuit precedent explains that "where a patent's claims are deemed only to disclose patent ineligible subject matter under the Alice framework, as they are in this case, preemption concerns are fully addressed and made moot." Two-Way Media Ltd. v. Comcast Cable Commc'ns, LLC ,
Reference
- Full Case Name
- DISTEFANO PATENT TRUST III, LLC v. LINKEDIN CORPORATION
- Cited By
- 9 cases
- Status
- Published