throbber
Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 1 of 27 PageID 170
`
`UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF TENNESSEE
`WESTERN DIVISION
`
`B.E. TECHNOLOGY, LLC,
`
`Plaintiff,
`
`vs.
`
`AMAZON DIGITAL SERVICES, INC.,
`
`Defendant.
`
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`)
`
`No.: 2:12-cv-02767-JPM-tmp
`
`JURY DEMAND
`
`MEMORANDUM OF DEFENDANT
`AMAZON DIGITAL SERVICES, INC. IN SUPPORT OF ITS MOTION TO DISMISS
`
`Glen G. Reid, Jr. (#8184)
`greid@wyattfirm.com
`Mark Vorder-Bruegge, Jr. (#06389)
`mvorder-bruegge@wyattfirm.com
`WYATT, TARRANT & COMBS, LLP
`The Renaissance Center
`1715 Aaron Brenner Dr., Suite 800
`Memphis, TN 38120-4367
`(901) 537-1000
`
`
`
`Counsel for Defendant
`AMAZON DIGITAL SERVICES, INC.
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`J. David Hadden
`dhadden@fenwick.com
`Darren F. Donnelly
`ddonnelly@fenwick.com
`Saina S. Shamilov
`sshamilov@fenwick.com
`Ryan J. Marton
`rmarton@fenwick.com
`Clifford Web
`cweb@fenwick.com
`Justin Hulse
`jhulse@fenwick.com
`FENWICK & WEST LLP
`801 California Street, 6th Floor
`Mountain View, CA 94041
`(650) 988-8500
`
`
`
`
`
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 2 of 27 PageID 171
`
`TABLE OF CONTENTS
`
`Page
`
`INTRODUCTION ------------------------------------------------------------------------------------------- 1 
`
`STATEMENT OF FACTS --------------------------------------------------------------------------------- 2 
`
`A. 
`
`The Parties ---------------------------------------------------------------------------------- 2 
`
`1. 
`
`2. 
`
`B.E. Technologies ----------------------------------------------------------------- 2 
`
`Amazon ----------------------------------------------------------------------------- 3 
`
`B. 
`
`C. 
`
`The Patents-In-Suit ------------------------------------------------------------------------- 3 
`
`This Action ---------------------------------------------------------------------------------- 5 
`
`ARGUMENT ------------------------------------------------------------------------------------------------- 6 
`
`I. 
`
`THE ASSERTED PATENTS VIOLATE THE FUNCTIONAL
`CLAIMING RULE AND ARE, THUS, INDEFINITE ------------------------------- 7 
`
`A. 
`
`B. 
`
`C. 
`
`The Patent Law Prohibits Purely Functional Claiming ---------------------- 7 
`
`The Purely Functional Language of the Asserted
`Claim of the ’290 Patent Renders It Indefinite -------------------------------- 9 
`
`The Purely Functional Language of the Asserted
`Claim of the ’010 Patent Renders It Indefinite ------------------------------- 13 
`
`II. 
`
`THE ASSERTED PATENTS VIOLATE THE POSSESSION RULE
`AND ARE, THUS, INVALID ---------------------------------------------------------- 17 
`
`A. 
`
`B. 
`
`The Possession Rule ------------------------------------------------------------- 17 
`
`The Asserted Claims Are Not Supported by the Patent
`Specifications and Are, Thus, Invalid for Failing the
`Possession Rule ------------------------------------------------------------------ 19 
`
`CONCLUSION --------------------------------------------------------------------------------------------- 20 
`
`
`
`
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 3 of 27 PageID 172
`
`Cases:
`
`Page(s):
`
`TABLE OF AUTHORITIES
`
`Altiris, Inc. v. Symantec Corp.,
`318 F.3d 1363 (Fed. Cir. 2003) ------------------------------------------------------------------ 10
`
`Ariad Pharm., Inc. v. Eli Lilly and Co.,
`598 F.3d 1336 (Fed. Cir. 2010) --------------------------------------------------------- 17, 18, 19
`
`Aristocrat Techs. Austl. Pty Ltd. v. Int’l Game Tech.,
`521 F.3d 1328 (Fed. Cir. 2008) ---------------------------------------------------------- 9, 10, 12
`
`Asentinel LLC v. Cass Info. Sys., Inc.,
`Case No. 2:10-cv-02706, 2012 WL 1097336 (W.D. Tenn., Mar. 30, 2012) ------- 9, 16, 17
`
`Atmel Corp. v. Information Storage Devices, Inc.,
`198 F.3d 1374 (Fed. Cir. 1999) ------------------------------------------------------------------- 9
`
`Blackboard, Inc. v. Desire2Learn, Inc.,
`574 F. 3d 1371 (Fed. Cir. 2009) ------------------------------------------------------------- passim
`
`Brenner v. Manson,
`383 U.S. 519 (1966) ------------------------------------------------------------------------------- 17
`
`Carnegie Mellon Univ. v. Hoffmann-La Roche Inc.,
`541 F.3d 1115 (Fed. Cir. 2008) ------------------------------------------------------------------ 17
`
`Datamize, LLC v. Plumtree Software, Inc.,
`417 F.3d 1342 (Fed. Cir. 2005) ------------------------------------------------------------------- 6
`
`Eplus, Inc. v. Lawson Software, Inc.,
`No. 2011-1396, -1456, 1554 (Fed. Cir. Nov. 21, 2012) ------------------------- 11, 13, 14, 15
`
`Festo Corp. v. Shoketsu Kinzoku Kogyo Kabushiki Co.,
`535 U.S. 722 (2002) -------------------------------------------------------------------------------- 7
`
`Fiers v. Revel,
`984 F.2d 1164 (Fed. Cir.1993) ------------------------------------------------------------------ 19
`
`Finisar Corp. v. DirectTV Group, Inc.,
`523 F.3d 1323 (Fed. Cir. 2008) ------------------------------------------------------------------ 10
`
`Fuller v. Yentzer,
`94 U.S. 288 (1876) ---------------------------------------------------------------------------------- 7
`
`Glory Licensing LLC v. Toys “R” Us, Inc.,
`No. 09-4252, 2011 WL 1870591 (D.N.J. May 16, 2011) -------------------------------------- 6
`
`- ii -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 4 of 27 PageID 173
`
`
`Greenberg v. Ethicon Endo-Surgery Inc.,
`91 F.3d 1580 (Fed. Cir. 1996) ----------------------------------------------------------------- 8, 11
`
`Halliburton Energy Servs., Inc. v. M-I LLC.,
`514 F.3d 1244 (Fed. Cir. 2008) ---------------------------------------------------------------- 7, 8
`
`Halliburton Oil Well Cementing Co v. Walker,
`67 S. Ct. 6 (1946) ----------------------------------------------------------------------------------- 8
`
`HTC Corp. v. IPCom GMBH & Co., KG,
`667 F.3d 1270 (Fed. Cir. 2012) --------------------------------------------------------------- 9, 13
`
`Jepson v. Coleman,
`314 F.2d 533 (Fed. Cir. 1963) -------------------------------------------------------------------- 20
`
`Kozam v. Phase Forward , Inc.,
`No. 04-1787, 2005 U.S. Dist. Lexis 46850 (D. Md., Aug. 29, 2005) ----------------------- 13
`
`Lizardtech, Inc. v. Earth Resource Mapping, Inc.,
`424 F.3d 1336 (Fed. Cir. 2005) ------------------------------------------------------------------ 18
`
`Lockwood v. Am. Airlines, Inc.
`107 F.3d 1565 (Fed. Cir. 1997) ------------------------------------------------------------------ 20
`
`Mass. Inst. of Tech. v. Abacus Software,
`462 F.3d 1344 (Fed. Cir. 2006) ------------------------------------------------------------------ 11
`
`MySpace, Inc. v. GraphOn Corp.,
`672 F.3d 1250 (Fed. Cir. 2012) ------------------------------------------------------------------ 17
`
`NetMoneyIN, Inc. v. VeriSign, Inc.,
`545 F.3d 1328 (Fed. Circ. 2008) ------------------------------------------------------------------ 9
`
`Noah v. Intuit,
`675 F.3d 1302 (Fed. Cir. 2012) --------------------------------------------------------------- 9, 14
`
`O’Reilly v. Morse
`56 U.S. 62 (1853) ---------------------------------------------------------------------------- 7, 8, 17
`
`OIP Technologies, Inc. v. Amazon.com, Inc.,
`No. C-12-1233 (N.D. Cal. Sep. 11, 2012) ------------------------------------------------------- 6
`
`Regents of the Univ. of Cal. v. Eli Lilly & Co.,
`119 F.3d 1559 (Fed. Cir. 1997) --------------------------------------------------------- 18, 19, 20
`
`Reiffin v. Microsoft Corp.,
`214 F.3d 1342 (Fed. Cir. 2000) ------------------------------------------------------------------ 18
`
`- iii -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 5 of 27 PageID 174
`
`
`Ex Parte Rodriguez
`Appeal 2008-000693 (BPAI 2009) -------------------------------------------------------------- 10
`
`Ex Parte Roussi
`Appeal 2010-003169 (BPAI 2010) -------------------------------------------------------------- 10
`
`Select Controls v. Am. Elec. Components, Inc.,
`No. 07-1306, 2008 WL 216612 (S.D.N.Y. Jan. 22, 2008) ------------------------------------ 6
`
`Ultramercial, LLC v. Hulu, LLC,
`No. 09-6918, 2010 WL 3360098 (C.D. Cal. Aug. 13, 2010) ---------------------------------- 6
`
`United Carbon Co. v. Binney & Smith Co.,
`317 U.S. 228 (1942) -------------------------------------------------------------------------------- 7
`
`Univ. of Rochester v. G.D. Searle & Co., Inc.,
`358 F.3d 916 (Fed. Cir. 2004) ------------------------------------------------------------ 6, 17, 18
`
`In re Wilder,
`736 F.2d 1516 (Fed. Cir.1984) -------------------------------------------------------------- 18, 19
`
`Statutes and Rules:
`
`35 U.S.C. § 112 ------------------------------------------------------------------------------------ passim
`
`Fed. R. Civ. P. 12(b)(6) --------------------------------------------------------------------------------- 6
`
`Miscellaneous:
`
`Rai, A. et al., United States Department of Commerce, PATENT REFORM:
`UNLEASHING INNOVATION, PROMOTING ECONOMIC GROWTH & PRODUCING HIGH-
`PAYING JOBS (Apr. 13, 2010) ---------------------------------------------------------------------- 6
`
`SUPPLEMENTARY EXAMINATION GUIDELINES FOR DETERMINING COMPLIANCE WITH 35
`U.S.C. 112 AND FOR TREATMENT OF RELATED ISSUES IN PATENT APPLICATIONS
`76 Fed. Reg. 7171 (Feb. 9, 2011) ---------------------------------------------------------------- 13
`
`United States Federal Trade Commission, Evolving IP Marketplace: Aligning Patent
`Notice and Remedies With Competition (Mar. 2011) ------------------------------------------ 6
`
`
`
`- iv -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 6 of 27 PageID 175
`
`INTRODUCTION
`
`A patent that purports to own all possible ways of achieving a result (even a new and use-
`
`ful result), while disclosing none, is invalid as a matter of law. This maxim, alone sufficient to
`
`decide this case, follows from two of the most important rules of our patent system—both essen-
`
`tial to maintaining the proper balance between an inventor's right to exploit his particular contri-
`
`bution to the public, on the one hand, and the public's right to create still better ways of achiev-
`
`ing the same result, on the other.
`
`The first rule is the prohibition against purely “functional claiming”—i.e., describing an
`
`invention not by what it is or how it achieves its result, but rather by the result itself independent
`
`of any particular structure or method. A purely functional patent is, by definition, not limited to
`
`an inventor’s actual contribution to the public, but rather seeks to own as private property all
`
`ways, both present and future, of solving a particular problem. Purely functional patents, there-
`
`fore, offend the patent system in at least two important ways. First, they award to private indi-
`
`viduals monopoly power over vast swaths of technologies that the named inventors never con-
`
`ceived, much less invented. And second, they deprive the public of all future incentives to create
`
`new and improved technologies, thereby stifling innovation and frustrating the progress of sci-
`
`ence and the useful arts—the sole object of our patent laws.
`
`The second rule, a corollary of the first, is the “possession rule,” which requires that an
`
`inventor describe in his patent his particular solution to a problem in sufficient detail to assure
`
`the public that the inventor has, in fact, invented what he claims. Patents that claim only the re-
`
`sult of a solution, but not the particular solution itself, offend the “possession rule” in at least two
`
`important ways. First, they result in numerous and disparate technologies owned by private par-
`
`ties who have not, in fact, invented anything. And second, they free-ride on others to do the
`
`heavy lifting of true invention only to burden such inventors with monopoly rents. Patents that
`
`offend the “possession rule” do not promote the progress of science and the useful arts. Rather,
`
`
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 7 of 27 PageID 176
`
`
`they simply tax the public for purely private benefits while creating additional social costs in the
`
`form of needless litigation.
`
`Here, the patents-in-suit offend both the “functional claiming rule” and the “possession
`
`rule.” Both patents claim a new and improved software program, and yet neither describes any
`
`particular software, system logic, algorithm, or programming. At the same time, the plaintiff
`
`seeks to appropriate a vast swath of modern American technologies, including the highly-
`
`sophisticated and disparate systems developed, owned and operated by the likes of Amazon,
`
`Google, Apple, Motorola, Facebook, Twitter, LinkedIn, Samsung, Sony, and others. The social
`
`costs of this massive patent litigation, involving as it does facially invalid patents, will be incal-
`
`culable unless interrogated vigorously at the very outset of this case, which this Court is empow-
`
`ered to do by our patent and procedural laws, and which, as a matter of sound public policy, this
`
`Court ought to do at the earliest possible juncture consistent with the plaintiff’s right to be heard.
`
`For these reasons, and for the reasons stated more fully below, Amazon moves, pursuant
`
`to Rule 12(b)(6) of the Federal Rules of Civil Procedure, to dismiss plaintiff’s complaint with
`
`prejudice.
`
`STATEMENT OF FACTS
`
`A.
`
`The Parties
`1.
`B.E. Technologies
`Plaintiff B.E. Technologies (“B.E.”) is a patent assertion entity (“PAE”) that registered to
`
`do business in Tennessee one day before filing this lawsuit. According to B.E.’s lead counsel,
`
`B.E.’s sole “business” is prosecuting lawsuits in this district. As a PAE, B.E. does not make or
`
`sell any products or services, much less make any beneficial use of the technologies that it claims
`
`to own. Nor has it ever notwithstanding that the patents-in-suit were filed in 1998 (Dkt. 9, Exs.
`
`A and B)—nearly 15 years ago.
`
`- 2 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 8 of 27 PageID 177
`
`
`2.
`Amazon
`Defendant Amazon Digital Services, Inc. (“Amazon”) is a wholly owned subsidiary of
`
`Amazon.com, Inc.—a Delaware corporation with its principle place of business in Seattle, Wash-
`
`ington. Widely known as the world’s largest online retailer, Amazon is also regarded as one of
`
`America’s most innovative technology companies. Through its online retail business, Amazon
`
`transformed the way the public acquires consumer products, and in the process dramatically
`
`expaned consumer choice while greatly reducing consumer costs—especially in remote regions
`
`of the nation where access to consumer products is often limited. Through its web-based and IT
`
`services, Amazon has helped launch countless American small businesses, and empowered still
`
`countless others, who today sell tens of millions of products to otherwise unknowable customers
`
`worldwide. And through its Kindle brand of e-readers, Amazon revolutionized the way the pub-
`
`lic acquires and relates to the printed word—once again, dramatically increasing consumer
`
`choice while greatly reducing consumer costs.
`
`B.
`
`The Patents-In-Suit
`
`B.E. alleges infringement of two related patents: U.S. Patent No. 6,141,010 (the “’010 pa-
`
`tent”) and U.S. Patent No. 6,771,290 (the “’290 patent”), which is a continuation-in-part of the
`
`’010 patent. B.E. asserts claim 1 of the ’010 patent and claim 2 of the ’290 patent. (See Dkt. No.
`
`9, ¶¶ 14, 17.)
`
`The ’010 patent is entitled “Computer Interface Method and Apparatus with Targeted
`
`Advertising.” (Id., Exh. B.) As the title suggests, the ’010 patent is directed to a computer pro-
`
`gram that provides targeted advertisements over the Internet. (Id., Abstract.) The patent
`
`acknowledges that targeted Internet advertising was well-known and performed by numerous
`
`prior art systems. (See generally id. col. 1, l. 14 - col. 3, l. 29.) According to the patent, in these
`
`existing software systems, the details of how the advertisements were displayed on users’ com-
`
`puters, including “where on the screen the advertisement is displayed, the display size, [and] the
`
`- 3 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 9 of 27 PageID 178
`
`
`duration of display,” were “built into the software [program] itself.” (Id. col. 2, ll. 6-21.) Thus,
`
`according to the patent, changing anything about the display of the advertisements required up-
`
`dating the entire program. (Id.) To solve this purported problem, the patent suggests breaking
`
`the program into two pieces or “modules,” which can be updated independently. The first pro-
`
`gram module “display[s] a graphical user interface.” (Id. col. 4, ll. 22-26.) The second program
`
`module selects specific banner advertisements based on the user’s interactions with the graphical
`
`user interface displayed by the first module. (Id. col. 4, ll. 41-49.) How the program modules
`
`perform these functions, or even communicate with each other, is never described in the patent.
`
`Instead, the program modules are described solely by their functions, i.e., what each
`
`module is “operable to perform.” For example, claim 1 recites that the first program module is
`
`“operable upon execution to display a graphical user interface,” and that the second program
`
`module is “operable upon execution to select informational data to be displayed.” (Id. col. 21, ll.
`
`38-39 and 50-51) (emphasis added). But nowhere does the patent explain how the modules gen-
`
`erate the claimed graphical user interface or select the informational data to be displayed. Nor is
`
`there a single figure or flowchart showing even a single step that this software performs to
`
`achieve either result. Rather, these purportedly novel software “modules” are described as mere
`
`black boxes defined, again, solely by their functions.
`
`The ’290 patent is no better. It envisions a software program that organizes user infor-
`
`mation, such as a list of favorite websites, by storing such information on a network server. Ac-
`
`cording to the patent, existing web browsers allowed users to store information “regarding visit-
`
`ed or favorite websites,” for example, by bookmarking a webpage of interest. (Id. col. 3, ll. 49-
`
`52.) Those web browsers, however, purportedly did not allow users to share that information
`
`across multiple browsers because “information within one browser [was] not easily transportable
`
`to the other browser.” (Id. col. 3, ll. 60-62.) To solve this problem, the patent suggests storing a
`
`user’s list of favorite websites and links (e.g., bookmarks) in a “user library” on a server instead
`
`- 4 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 10 of 27 PageID 179
`
`
`of within the user’s browser. (Id. col. 13, ll. 7-11.) But, again, the patent does not explain
`
`how—even as it expressly concedes that storing user files on servers was known in the art when
`
`the patent was filed. (Id. col. 3, ll. 54-57.) Again, no new hardware or software is mentioned,
`
`much less any algorithms—novel or otherwise—for storing, selecting or retrieving information
`
`stored in a “user library.”
`
`Instead of describing how this mystery software works, the ’290 patent describes a sal-
`
`magundi of results that the software can somehow achieve: “The present invention can be used
`
`in a wide variety of applications and for a wide variety of uses … to store software, business
`
`presentations, blueprints, plans, movies, musical albums, games … to shop on line … [to record]
`
`radio … [and] communicate [with] … cellular telephones, walkmans, kiosks, personal digital
`
`assistants, refrigerator door screens, airplane set screens, car radios, televisions, video recorders,
`
`answering machines and the like.” (See generally id. col. 34, ll. 60-65; col. 35, l. 54 – col. 37,
`
`l. 43.) And again, the software is claimed purely by the desired result, e.g., it is “operable … to
`
`access the associated information resource over the network.” (Id. col. 39, ll. 17 & col. 40, ll. 2.)
`
`C.
`This Action
`On September 7, 2012, as part of a broad campaign of patent infringement lawsuits in
`
`this district,1 B.E. filed this lawsuit accusing Amazon’s popular Kindle® brand of tablets of in-
`
`fringing the ’290 patent. (See Dkt. No. 1.) Shortly thereafter, B.E. filed an amended complaint
`
`adding claims under the ’010 patent. (See Dkt. No. 9.) This motion is Amazon’s response to
`
`B.E.’s amended complaint.
`
`
`1 Case Nos. 12-cv-02830, 12-cv-02866, 12-cv-02767, 12-cv-02769, 12-cv-02772, 12-cv-
`02781, 12-cv-02782, 12-cv-02783, 2:12-cv-02823, 12-cv-02824, 12-cv-02825, 2:12-cv-02826,
`12-cv-02827, 12-cv-02828, 12-cv-02829, 12-cv-02831, 12-cv-02832, 12-cv-02833, and 12-cv-
`02834 naming as defendants Motorola Mobility Holdings LLC; Google Inc.; LinkedIn, Inc.; Fa-
`cebook, Inc.; Groupon, Inc.; Pandora Media, Inc.; Twitter, Inc.; Barnes & Noble, Inc.; Samsung
`Telecommunications America, LLC; Samsung Electronics America, Inc.; Sony Computer Enter-
`tainment; Sony Mobile Communications; Sony Electronics, Inc.; Microsoft Corp.; Apple, Inc.;
`Spark Networks, Inc.; People Media, Inc.; and Match.com LLC.
`
`- 5 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 11 of 27 PageID 180
`
`
`ARGUMENT
`
`“Low-quality patents—that is, patents that are obvious, overly broad, or unclear in the in-
`
`ventive territory that they cover—[] hinder innovation. This is because although patents may be
`
`low quality, they can nonetheless be profitably asserted against genuine innovators in litigation.”
`
`(Rai, A. et al., U.S. Dept. of Commerce, Patent Reform: Unleashing Innovation, Promoting
`
`Economic Growth & Producing High-Paying Jobs (Apr. 13, 2010), attached hereto as Exhibit A,
`
`at p. 5.) Because of the time and cost of defending against even plainly invalid patents, “many
`
`invalid patents are never challenged in our current litigation system.” (Id.) Yet, invalid patents
`
`asserted by PAEs “deter innovation by raising costs and risks without making a technological
`
`contribution” to the public weal. (U.S. Fed. Trade Comm’n, Evolving IP Marketplace: Aligning
`
`Patent Notice and Remedies With Competition, 2011 WL 838912, at *7 (Mar. 2011).) To avoid
`
`this, the Federal Trade Commission “urges that courts extend their recent focus on indefiniteness
`
`to address functional claiming.” (Id. at *10.)
`
`Indefiniteness under 35 U.S.C. § 112 is a question of law. Datamize, LLC v. Plumtree
`
`Software, Inc., 417 F.3d 1342, 1347 (Fed. Cir. 2005). A patent can be held invalid “based solely
`
`on the language of the patent specification.” Univ. of Rochester v. G.D. Searle & Co., Inc., 358
`
`F.3d 916, 927 (Fed. Cir. 2004). Courts can and should dispense with facially invalid patents at
`
`the pleading stage. See Federal Rule of Civil Procedure 12(b)(6); OIP Technologies, Inc. v. Am-
`
`azon.com, Inc., No. C-12-1233 (N.D. Cal. Sep. 11, 2012) (Dkt. No. 50); Glory Licensing LLC v.
`
`Toys “R” Us, Inc., No. 09-4252, 2011 WL 1870591 at *4 (D.N.J. May 16, 2011); Ultramercial,
`
`LLC v. Hulu, LLC, No. 09-6918, 2010 WL 3360098 at *7 (C.D. Cal. Aug. 13, 2010); Select Con-
`
`trols v. Am. Elec. Components, Inc., No. 07-1306, 2008 WL 216612 at *2-5 (S.D.N.Y. Jan. 22,
`
`2008).
`
`- 6 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 12 of 27 PageID 181
`
`
`I.
`
`THE ASSERTED PATENTS VIOLATE THE FUNCTIONAL
`CLAIMING RULE AND ARE, THUS, INDEFINITE.
`A.
`The Patent Law Prohibits Purely Functional Claiming.
`Paragraph 2 of Section 112 (of Title 35) requires that a patent “particularly point[] out
`
`and distinctly claim[] … the invention.” (35 U.S.C. § 112(b).) The law “require[s] inventors to
`
`describe their work in ‘full, clear, concise, and exact terms’ … as part of the delicate balance the
`
`law attempts to maintain between inventors, who rely on the promise of the law to bring the in-
`
`vention forth, and the public, which should be encouraged to pursue innovations, creations, and
`
`new ideas beyond the inventor’s exclusive rights.” Festo Corp. v. Shoketsu Kinzoku Kogyo Ka-
`
`bushiki Co., 535 U.S. 722, 731 (2002) (citation omitted). This requirement “is met only when
`
`[the claims] clearly distinguish what is claimed from what went before in the art and clearly cir-
`
`cumscribe what is foreclosed from future enterprise.” United Carbon Co. v. Binney & Smith Co.,
`
`317 U.S. 228, 236 (1942); see also Halliburton Energy Servs., Inc. v. M-I LLC., 514 F.3d 1244,
`
`1253 (Fed. Cir. 2008).
`
`It has long been the rule that “[p]atents for a machine will not be sustained if the claim is
`
`for a result.” Fuller v. Yentzer, 94 U.S. 288, 288 (1876). This is because a result, without more,
`
`is not an invention. Rather, an invention “consists in the means or apparatus by which the result
`
`is obtained.” Id. (emphasis added). The rule is a cornerstone of our patent system. Indeed,
`
`more than a century ago, the Supreme Court invalidated Samuel Morse’s claim to “electro-
`
`magnetism, however developed for marking or printing intelligible characters, signs, or letters at
`
`any distances” because it would impermissibly grant Morse “the exclusive right to every im-
`
`provement … it matters not by what process or machinery the result is accomplished.”
`
`O’Reilly v. Morse 56 U.S. 62, 62 & 112-113 (1853). In so holding, the Court explained the rule
`
`in terms that apply with equal force here, particularly with respect to the harm to innovation
`
`caused by purely functional claims:
`
`- 7 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 13 of 27 PageID 182
`
`
`[S]ome future inventor, in the onward march of science, may dis-
`cover a mode of writing or printing at a distance by means of the
`electric or galvanic current, without using any part of the process
`or combination set forth in the plaintiff’s specification. His inven-
`tion may be less complicated—less liable to get out of order—less
`expensive in construction, and in its operation. But yet if it is cov-
`ered by this patent, the inventor could not use it, nor the public
`have the benefit of it, without the permission of this patentee.
`
`O’Reilly, 56 U.S. at 113.
`
`In Halliburton, the Supreme Court again invalidated functional claims where the claims
`
`described an invention “in terms of what it will do, rather than in terms of its own physical char-
`
`acteristics.” See Halliburton Oil Well Cementing Co v. Walker, 67 S. Ct. 6, 10 (1946) (emphasis
`
`added). The Court explained that such claims are invalid because they would improperly cover
`
`all possible future devices that performed the same function. Id. at 12.
`
`Partly in response to the Supreme Court’s decision in Halliburton, Congress amended the
`
`patent laws to prohibit purely functional claims unless the patent expressly discloses specific
`
`structures or steps for performing a claimed function, and limited the scope of such claims to the
`
`structures or steps disclosed:
`
`An element in a claim for a combination may be expressed as a
`means or step for performing a specified function without the re-
`cital of structure, material, or acts in support thereof, and such
`claim shall be construed to cover the corresponding structure, ma-
`terial, or acts described in the specification and equivalents thereof.
`
`(35 U.S.C. § 112(f).) See also Greenberg v. Ethicon Endo-Surgery Inc., 91 F.3d 1580, 1582
`
`(Fed. Cir. 1996) (“Congress permitted the use of purely functional language in claims but limited
`
`the breadth of such claim language by restricting the scope to the structure disclosed in the speci-
`
`fication and equivalents thereof”).
`
`Accordingly, if a patent does not describe a specific way of achieving a claimed result—
`
`otherwise referred to as a specific “structure” for performing a claimed “function”—the claim is
`
`invalid. “Fulfillment of the § 112, ¶ 6 tradeoff cannot be satisfied when there is a total omission
`
`- 8 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 14 of 27 PageID 183
`
`
`of structure. There must be structure in the specification.” Atmel Corp. v. Information Storage
`
`Devices, Inc., 198 F.3d 1374, 1382 (Fed. Cir. 1999); see also Aristocrat Techs. Austl. Pty Ltd. v.
`
`Int’l Game Tech., 521 F.3d 1328, 1333 (Fed. Cir. 2008) (“The point of the requirement that the
`
`patentee disclose particular structure in the specification and that the scope of the patent claims
`
`be limited to that structure is to avoid pure functional claiming”).
`
`Where, as here, a patent recites a software program, the required “structure” must be the
`
`specific algorithm or program logic used by the new software, not the processors, disks and other
`
`components found in general purpose computers. “Because general purpose computers can be
`
`programmed to perform very different tasks in very different ways, simply disclosing a computer
`
`as the structure designated to perform a particular function does not limit the scope of the claim
`
`to ‘the corresponding structure, material, or acts’ that perform the function.” Aristocrat Techs.,
`
`521 F.3d at 1333; see also Noah v. Intuit, 675 F.3d 1302, 1312 (Fed. Cir. 2012) (in computer-
`
`implemented inventions the required structure is “an algorithm for performing the claimed func-
`
`tion”) (citing NetMoneyIN, Inc. v. VeriSign, Inc., 545 F.3d 1328, 1333 (Fed. Cir. 2008).) An al-
`
`gorithm is a set of specific steps a computer is programmed to perform to achieve the claimed
`
`function. Id.
`
`B.
`
`The Purely Functional Language of the Asserted Claim
`of the ’290 Patent Renders It Indefinite.
`B.E. alleges that Amazon infringes claim 2 of the ’290 patent. Claim 2 recites a “com-
`
`puter-readable memory” with a “non-volatile storage device.” However, as standard computer
`
`hardware components—e.g., RAM and hard drives—these components cannot serve as the nec-
`
`essary structures for performing the functions of the invention. HTC Corp. v. IPCom GMBH &
`
`Co., KG, 667 F.3d 1270, 1278 (Fed. Cir. 2012) (an algorithm, not hardware is the required struc-
`
`ture); Asentinel LLC v. Cass Info. Sys., Inc., Case No. 2:10-cv-02706, 2012 WL 1097336 at *4
`
`- 9 -
`
`

`
`Case 2:12-cv-02767-JPM-tmp Document 32-1 Filed 01/07/13 Page 15 of 27 PageID 184
`
`
`(W.D. Tenn., Mar. 30, 2012) (“Rather than relying on [computer hardware], [a patentee] ha[s] to
`
`identify an algorithm that the computer hardware execute[s]”).
`
`And what are those functions? There are four: (1) “display a graphical user interface
`
`comprising an application window having a number of user-selectable items”; (2) “in response to
`
`selection by a user of one of said items [] access the associated information resource over the
`
`network”; (3) “receive from server one of the user profiles and display a user-selectable item for
`
`user links contained within the user profile”; and (4) “in response to selection by a user of one of
`
`the user links [] access the file associated with the selected user link.” (’290 patent, claim 2,
`
`col. 39, l. 1 – col. 40, l. 11.) And yet the patent nowhere discloses any algorithm for performing
`
`even one, much less all four, of these functions.
`
`Rather, the specification consistently defines the invention solely as a computer program
`
`comprising an unidentified set of instructions. (’290 patent, col. 4, ll. 54-61.) But a “computer
`
`program,” so defined, necessarily includes any and all software and thus does not denote any
`
`specific structure or limitation on the scope of what is claimed. Aristocrat, 521 F.3d at 1334
`
`(“appropriate programming” does not denote required structure); Finisar Corp. v. DirectTV
`
`Group, Inc., 523 F.3d 1323, 1340-41 (Fed. Cir. 2008) (“Simply reciting ‘software’ without
`
`providing some detail about the means to accomplish the function is not enough”); Altiris, Inc. v.
`
`Symantec Corp., 318 F.3d 1363, 1376 (Fed. Cir. 2003) (“[M]erely pointing out that the relevant
`
`structure is software rather than hardware is insufficient”); Ex Parte Roussi, Appeal 2010-
`
`003169 (attached as Exhibit B) at p. 5 (BPAI 2010) (reference to “software” in a claim denotes
`
`no particular structure and is simply a substitute for the word “means” in Section 112, paragraph
`
`6); Ex Parte Rodriguez, Appeal 2008-000693 (attached as Exhibit C) at p. 22 (BPAI 2009) (“sys-
`
`tem builder” and similar software components do not denote structure and are subject to Section
`
`112, paragraph 6). In short, the patent is drafted in purely functional terms, and, as such, the
`
`- 10 -
`
`

`
`Case 2:12-cv-0

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket