Data Engine Technologies LLC v. Google LLC
Opinion
*1002
Data Engine Technologies LLC ("DET") appeals the district court's entry of judgment on the pleadings holding that the asserted claims of DET's U.S. Patent Nos. 5,590,259 ; 5,784,545 ; 6,282,551 ; and 5,303,146 are ineligible under
BACKGROUND
I. The Tab Patents
The Tab Patents are titled "System and Methods for Improved Spreadsheet Interface With User-Familiar Objects," and claim priority to April 8, 1992. 1 The Tab Patents claim systems and methods for making complex electronic spreadsheets more accessible by providing familiar, user-friendly interface objects-specifically, notebook tabs-to navigate through spreadsheets while circumventing the arduous process of searching for, memorizing, and entering complex commands.
The Tab Patents teach that the advent of electronic spreadsheets offered dramatic improvements in creating, editing, and using spreadsheets to organize and process data. Despite such advantages, twenty-five years ago, electronic spreadsheets were not easy to use. '259 patent col. 2 ll. 57-59. Users were required to master complex commands in order to perform basic operations within a spreadsheet.
The Tab Patents specifically identify problems with navigation through prior art three-dimensional or multipage electronic spreadsheets. The Tab Patents explain that the complex commands required to manipulate each additional spread of the three-dimensional spreadsheet diminished the utility and ease of use of this technology.
*1003
The invention claimed in the Tab Patents provided a solution to this problem. Specifically, the Tab Patents are directed to and claim a method of implementing a notebook-tabbed interface, which allows users to easily navigate through three-dimensional electronic spreadsheets. As shown in Figure 4G of the '259 patent below, the Tab Patents provide "an electronic spreadsheet system include[ing] a notebook interface having a plurality of notebook pages, each of which contains a spread of information cells, or other desired page type."
Figure 2D below shows more closely an individual spreadsheet page with notebook tabs located along the bottom edge of the page.
In this preferred embodiment, "each page identifier is in the form of a tab member (e.g., members 261a, 262a, 263a) situated along a bottom edge of the notebook."
Although these spreadsheet interfaces have become ubiquitous, Quattro Pro, the first commercial embodiment of the claimed invention, was highly acclaimed as having revolutionized three-dimensional electronic spreadsheets. During prosecution, DET submitted contemporaneous articles showing the state of the art at the time of the invention and evidencing the significance of the claimed methods to spreadsheet technology. For example,
PC World
, a leading computer magazine, published a front-page article, "
Quattro Pro for Windows: The Ultimate 3-D Spreadsheet
." J.A. 981. The article reflected the industry's view that "keeping large, complex worksheet projects organized, manageable, and reliable ha[d] long been a major concern for serious spreadsheet users" and that existing spreadsheets had "data and results hidden all over the place." J.A. 982. The article touts the claimed notebook-tabbed spreadsheet interface as a solution to that problem, explaining that it "makes developing nifty applications far easier for the average spreadsheet user, and [that] intelligent command organization makes navigation efficient."
Similarly, in 1992, InfoWorld named Quattro Pro the product of the year for productivity applications. In doing so, InfoWorld wrote:
We collected all the word processors, spreadsheets, databases, personal information managers, and other productivity applications and asked ourselves a question: "Which of these programs really changed the way an individual user goes about handling data? Does any one stand out as a productivity booster?"
Our answer was Quattro Pro for Windows. The reason: Borland designed this program from the ground up and examined how spreadsheet users would work in a Windows environment. The notebook metaphor, with pages and tabs for different worksheets, simplifies handling large worksheets . The "interface builder" lets a user design custom dialog boxes without extensive macro programming. And, of course, Quattro Pro's graphics are stellar.
J.A. 1008 (emphasis added). In total, DET submitted seven articles dated between 1992 and 1993, all touting the advantages of its use of notebook tabs to improve navigation through three-dimensional spreadsheets. See J.A. 981-1010.
DET filed suit against Google LLC, asserting claims 1-2, 12-13, 16-17, 19, 24, 46-47, and 51 of the '259 patent ; claims 1-2, 5-7, 10, 13, and 35 of the '545 patent ; and claims 1, 3, 6-7, 10, 12-13, 15, and 18 of the '551 patent. The district court considered claim 12 of the '259 patent representative of all asserted claims of the Tab Patents.
See
*1005
Data Engine Techs. LLC v. Google Inc.
,
12. In an electronic spreadsheet system for storing and manipulating information, a computer-implemented method of representing a three-dimensional spreadsheet on a screen display, the method comprising:
displaying on said screen display a first spreadsheet page from a plurality of spreadsheet pages, each of said spreadsheet pages comprising an array of information cells arranged in row and column format, at least some of said information cells storing user-supplied information and formulas operative on said user-supplied information, each of said information cells being uniquely identified by a spreadsheet page identifier, a column identifier, and a row identifier;
while displaying said first spreadsheet page, displaying a row of spreadsheet page identifiers along one side of said first spreadsheet page, each said spreadsheet page identifier being displayed as an image of a notebook tab on said screen display and indicating a single respective spreadsheet page, wherein at least one spreadsheet page identifier of said displayed row of spreadsheet page identifiers comprises at least one user-settable identifying character;
receiving user input for requesting display of a second spreadsheet page in response to selection with an input device of a spreadsheet page identifier for said second spreadsheet page;
in response to said receiving user input step, displaying said second spreadsheet page on said screen display in a manner so as to obscure said first spreadsheet page from display while continuing to display at least a portion of said row of spreadsheet page identifiers; and
receiving user input for entering a formula in a cell on said second spreadsheet page, said formula including a cell reference to a particular cell on another of said spreadsheet pages having a particular spreadsheet page identifier comprising at least one user-supplied identifying character, said cell reference comprising said at least one user-supplied identifying character for said particular spreadsheet page identifier together with said column identifier and said row identifier for said particular cell.
'259 patent col. 26 l. 43-col. 27 l. 17.
II. The '146 Patent
The '146 patent is titled "System and Methods for Improved Scenario Management in an Electronic Spreadsheet." The '146 patent is directed to methods that allow electronic spreadsheet users to track their changes. The specification teaches that prior art electronic spreadsheets were not particularly adept at managing "what-if" scenarios in a given spreadsheet. '146 patent col. 2 ll. 41-44. The patent explains that "[s]ince a given spreadsheet model is routinely created under a set of assumptions (e.g., level of sales, corporate tax rate, and the like), it is desirable to test the extremes of one's assumptions to ascertain the likely results."
The '146 patent purports to solve this problem by providing an electronic spreadsheet system "having a preferred interface and methods for creating and tracking various
*1006
versions or 'scenarios' of a data model."
DET alleged infringement of claims 1, 26-28, and 32-34 of the '146 patent. The district court considered independent claims 1 and 26 representative of all the asserted claims of the '146 patent.
See
District Court Op.
,
1. In an electronic spreadsheet system for modeling user-specified information in a data model comprising a plurality of information cells, a method for automatically tracking different versions of the data model, the method comprising:
(a) specifying a base set of information cells for the system to track changes ;
(b) creating a new version of the data model by modifying at least one information cell from the specified base set; and
(c) automatically determining cells of the data model which have changed by comparing cells in the new version against corresponding ones in the base set.
***
26. In an electronic spreadsheet system, a method for storing different versions of a spreadsheet model, the method comprising:
(a) maintaining a base version of the spreadsheet model as ordered information on a storage device; and
(b) for each new version of the spreadsheet model:
(i) determining portions of the new version which have changed when compared against the base version, and
(ii) maintaining the new version by storing additional information for only those portions determined to have changed.
'146 patent col. 14 ll. 1-13 (emphasis added), col. 16 ll. 7-19.
III. The District Court's Decision
Google filed a motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c), arguing that the asserted claims of the Tab Patents and the '146 patent are directed to patent-ineligible subject matter under § 101. The district court granted the motion with respect to the Tab Patents, concluding that representative claim 12 of the '259 patent is "directed to the abstract idea of using notebook-type tabs to label and organize spreadsheets."
District Court Op.
,
Similarly, with respect to the '146 patent, the district court concluded that the asserted claims are directed to the abstract idea of "collecting spreadsheet data, recognizing changes to spreadsheet data, and storing information about the changes," and more specifically, directed "to input of information in a (computerized) columnar pad, recognition of changes in later versions of the inputted information, and storage of information about the changes."
DET appeals. We have jurisdiction pursuant to
*1007 DISCUSSION
I
We review the district court's judgment on the pleadings under regional circuit law.
Merck & Co. v. Hi-Tech Pharmacal Co.
,
Section 101 provides that "[w]hoever invents or dis-covers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor."
If the claims are directed to a patent-ineligible concept, however, we next consider
Alice
step two. In this step, we consider "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
,
II
We first address the Tab Patents. Our analysis begins at Alice step one, asking "whether the claims at issue are directed to a patent-ineligible concept." Id. at 2355. With the exception of claim 1 of the '551 patent, we hold that the asserted claims of the Tab Patents are directed to patent-eligible subject matter.
A
When considered as a whole, and in light of the specification, representative claim 12 of the '259 patent is not directed to an abstract idea. Rather, the claim is *1008 directed to a specific method for navigating through three-dimensional electronic spreadsheets. The method provides a specific solution to then-existing technological problems in computers and prior art electronic spreadsheets. The specification teaches that prior art computer spreadsheets were not user friendly. They required users to "master many complex and arbitrary operations." '259 patent col. 2 ll. 28-29. Users had to search through complex menu systems to find appropriate commands to execute simple computer tasks, which required users to memorize frequently needed commands. Id. at col. 2 ll. 29-45. This was burdensome and hindered a user's ability to find or access the many commands and features available in prior art computer spreadsheets, undercutting the effectiveness of the computer as a means to review and edit a spreadsheet. Id. at col. 2 ll. 45-56. This was particularly true for three-dimensional spreadsheets, which allowed users to build spreadsheet workspaces consisting of multiple two-dimensional spreadsheets, further increasing the complexity of using and navigating between multiple spreadsheets. Id. at col. 2 l. 66-col. 3 l. 24.
The Tab Patents solved this known technological problem in computers in a particular way-by providing a highly intuitive, user-friendly interface with familiar notebook tabs for navigating the three-dimensional worksheet environment. Id. at col. 3 ll. 44-52. The improvement allowed computers, for the first time, to provide rapid access to and processing of information in different spreadsheets, as well as easy navigation in three-dimensional spreadsheets. The invention was applauded by the industry for improving computers' functionality as a tool able to instantly access all parts of complex three-dimensional electronic spreadsheets. Numerous contemporaneous articles attributed the improved three-dimensional spreadsheets' success to its notebook tab feature. 2
Representative claim 12 recites precisely this technical solution and improvement in computer spreadsheet functionality. The claim recites specific steps detailing the method of navigating through spreadsheet pages within a three-dimensional spreadsheet environment using notebook tabs. The claim requires displaying on a screen display a row of spreadsheet page identifiers along one side of the first spreadsheet page, with each spreadsheet page identifier being a notebook tab. The claim requires at least one user-settable identifying character to label the notebook tab and describes navigating through the various spreadsheet pages through selection of the notebook tabs. The claim further requires a formula that uses the identifying character to operate on information spread between different spreadsheet pages that are identified by their tabs. The claimed method does not recite the idea of navigating through spreadsheet pages using buttons or a generic method of labeling and *1009 organizing spreadsheets. Rather, the claims require a specific interface and implementation for navigating complex three-dimensional spreadsheets using techniques unique to computers.
In this regard, claim 12 is similar to the claims we held patent eligible in
Core Wireless
. There, the claims were directed to an improved display interface that allowed users to more quickly access stored data and programs in small-screen electronics, thereby improving the efficient functioning of the computer.
Core Wireless
,
Claim 12 of the '259 patent similarly recites a method that differs from prior art navigation methods and "provide[s] for rapidly accessing and processing information" in three-dimensional spreadsheets. '259 patent col. 3 ll. 53-54. "[I]nstead of finding information by scrolling different parts of a large spreadsheet" the invention "allows the user to simply and conveniently 'flip through' several pages of the notebook to rapidly locate information of interest."
Likewise, claim 12 comports with the claims we held patent eligible in
Trading Technologies International, Inc. v. CQG, Inc.
Google asserts that this court has repeatedly found that claims directed to methods of organizing and presenting information are abstract and that we should so hold here. During oral argument, Google identified three cases to best support its position:
Affinity Labs of Texas, LLC v. DirecTV, LLC
,
In
Affinity Labs
, we held that claims directed to "streaming regional broadcast signals to cellular telephones located outside the region" were ineligible because "[t]he concept of providing out-of-region access to regional broadcast content is an abstract idea."
In contrast to Affinity Labs , Capital One , and Erie Indemnity , representative claim 12 is not simply directed to displaying a graphical user interface or collecting, manipulating, or organizing information to improve navigation through three-dimensional spreadsheets. 3 Instead, the claim recites *1011 a specific structure (i.e., notebook tabs) within a particular spreadsheet display that performs a specific function (i.e., navigating within a three-dimensional spreadsheet).
Nor is representative claim 12 directed generally to displaying information on a screen, without "requir[ing] a new source or type of information, or new techniques for analyzing it," like the claims in
Electric Power Group, LLC v. Alstom S.A.
At
Alice
step one, "it is not enough to merely identify a patent-ineligible concept underlying the claim; we must determine whether that patent-ineligible concept is what the claim is 'directed to.' "
Rapid Litig. Mgmt. Ltd. v. CellzDirect, Inc.
,
Google avers that humans have long used tabs to organize information. It cites tabbed notebooks, binder dividers, file folders, and sticky Post-it notes as well-known examples of organizing information using tabs. We agree that tabs existed outside the context of electronic spreadsheets prior to the claimed invention. It is not enough, however, to merely trace the invention to some real-world analogy. The eligibility question is not whether anyone has ever used tabs to organize information. That question is reserved for §§ 102 and 103. The question of abstraction is whether the claim is "directed to" the abstract idea itself.
Because we conclude that representative claim 12 of the '259 patent is not abstract under
Alice
step one, we need not reach
Alice
step two with respect to claim 12.
See
Core Wireless
,
B
Notwithstanding our conclusion that representative claim 12 of the '259 patent is directed to patent-eligible subject matter, we conclude that claim 1 of the '551 patent is ineligible.
Claim 1 of the '551 patent recites:
1. In an electronic spreadsheet for processing alphanumeric information, said ... electronic spreadsheet comprising a three-dimensional spreadsheet operative in a digital computer and including a *1012 plurality of cells for entering data and formulas, a method for organizing the three-dimensional spreadsheet comprising:
partitioning said plurality of cells into a plurality of two-dimensional cell matrices so that each of the two-dimensional cell matrices can be presented to a user as a spreadsheet page;
associating each of the cell matrices with a user-settable page identifier which serves as a unique identifier for said each cell matrix;
creating in a first cell of a first page at least one formula referencing a second cell of a second page said formula including the user-settable page identifier for the second page; and
storing said first and second pages of the plurality of cell matrices such that they appear to the user as being stored within a single file.
'551 patent col. 23 l. 60-col. 24 l. 13.
We conclude that under Alice step one, this claim is directed to the abstract idea of identifying and storing electronic spreadsheet pages. DET concedes that, unlike claim 12 of the '259 patent, claim 1 of the '551 patent is "directed at something a bit more general." See Oral Arg. at 9:55-58. Indeed, it generically recites "associating each of the cell matrices with a user-settable page identifier" and does not recite the specific implementation of a notebook tab interface. '551 patent col. 24 ll. 3-4. Claim 1 of the '551 patent is therefore not limited to the specific technical solution and improvement in electronic spreadsheet functionality that rendered representative claim 12 of the '259 patent eligible. Instead, claim 1 of the '551 patent covers any means for identifying electronic spreadsheet pages.
Because claim 1 of the '551 patent is directed to an abstract idea, we must turn to
Alice
step two to "determine whether the additional elements 'transform the nature of the claim' into a patent-eligible application."
Alice
,
After a searching review, the additional elements of claim 1 of the '551 patent fail to provide an inventive concept. Claim 1 merely recites partitioning cells to be presented as a spreadsheet, referencing in one cell of a page a formula referencing a second page, and saving the pages such that they appear as being stored as one file. These limitations merely recite the method of implementing the abstract idea itself and thus fail under Alice step two. Therefore, we conclude that claim 1 of the '551 patent is ineligible under § 101.
III
Finally, we turn to the '146 patent, which is directed to a method of tracking changes in three-dimensional spreadsheets. Beginning at Alice step one, we agree with the district court that these claims are directed to the abstract idea of collecting spreadsheet data, recognizing changes to spreadsheet data, and storing information about the changes.
The district court considered claims 1 and 26 representative of all asserted
*1013
claims of the '146 patent.
See
District Court Op.
,
We agree with the district court that these claims are akin to those we held ineligible in
Content Extraction
. There, the claims were directed to methods of extracting data from hard-copy documents using an automated scanner, recognizing information from the extracted data, and storing that data in memory.
Content Extraction
,
We also conclude that the asserted claims of the '146 patent do not recite an inventive concept under
Alice
step two. The claims recite the generic steps of creating a base version of a spreadsheet, creating a new version of the spreadsheet, and determining changes made to the original version. These claims do not recite anything "more than simply stat[ing] the [abstract idea] while adding the words 'apply it.' "
Alice
,
CONCLUSION
For the foregoing reasons, we conclude that, with the exception of claim 1 of the '551 patent, the asserted claims of the Tab Patents are not directed to patent-ineligible subject matter under Alice step one and therefore satisfy § 101. We determine, however, that the asserted claims of the '146 patent are directed to an abstract idea, provide no inventive concept, and are therefore ineligible under § 101.
AFFIRMED-IN-PART, REVERSED-IN-PART, AND REMANDED
COSTS
No costs.
Because the Tab Patents' specifications are substantially identical, we refer only to the '259 patent's specification.
The district court declined to consider the articles included in the prosecution history, relying only on the pleadings and the patents attached to DET's complaint.
District Court Op.
,
We have also considered
Affinity Labs of Texas, LLC v. Amazon.com Inc.
,
Reference
- Full Case Name
- DATA ENGINE TECHNOLOGIES LLC, Plaintiff-Appellant v. GOOGLE LLC, Defendant-Appellee
- Cited By
- 127 cases
- Status
- Published