Petition for Writ of Certiorari — Real Estate Alliance Ltd., Petitioner v. Move, Inc., et al.
Supreme Court briefAug 24, 2018
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No. 18In the
Supreme Court of the United States
real estate alliance ltd.,
Petitioner,
v.
move, inc., et al.,
Respondents.
On Petition for a Writ of Certiorari to the United
States Court of A ppeals for the Federal Circuit
PETITION FOR A WRIT OF CERTIORARI
Lawrence A. Husick
Counsel of Record
Laurence A. Weinberger
Lipton, Weinberger & Husick
P.O. Box 587
Southeastern, PA 19399
(610) 296-8259
lawrence@lawhusick.com
Counsel for Petitioner
282912
A
(800) 274-3321 • (800) 359-6859
i
QUESTION PRESENTED
In Alice Corp. Pty. Ltd. v. CLS Bank Int’l., 134 S.
Ct. 2347 (2014), this Court reaffirmed its two-part test
for determining whether an invention is patent-eligible
under 35 U.S.C. § 101: (1) whether the patent claims are
directed to a patent ineligible concept, such as laws of
nature, natural phenomena, or abstract ideas, and (2), if
so, whether the elements of the claim contain an “inventive
concept” that transforms the ineligible concept into an
invention that is patent-eligible; that is, whether the
claims present “something more” than that which was,
at the time of the invention, well-understood, routine and
conventional.
The proper role of fact-finding with respect to the
second part of the Alice test is the subject of a split among
the judges of the Federal Circuit, and having a clear
standard is of vital importance to all lower courts hearing
patent cases, as well as to patent examiners of the United
States Patent and Trademark Office, and all applicants
for letters patent.
The question presented is:
Is whether an ordered combination of elements
in a patent claim is “well-understood, routine and
conventional” to a skilled artisan in the relevant field
under Alice step two a question of fact?
ii
PARTIES TO THE PROCEEDING
The Petitioner herein is Real Estate Alliance Ltd.
The Respondents herein are Move, Inc., National
Association of Realtors, National Association of Home
Builders, RE/MAX International, Inc., Advanced Access,
Norcal Gold, Inc., DBA RE/MAX Gold, Inc., Brad Korb,
ENeighborhoods, LLC, Christy Morrison, Orange County
Multiple Listing Service, Inc., DBA Southern California
MLS, Metropolitan Multi-List, Inc., DBA Georgia
Mls, Inc., Metrolist Services, Inc., Delaware Valley
Real Estate Information Network, Inc., DBA Trend,
Rapattoni Corporation, Birdview.com, Inc., DBA Birdview
Technologies, Delta Media Group, Inc., Pulte Homes, Inc.,
The Ryland Group, Inc., Shea Homes, Taylor Morrison,
Inc., FKA Taylor Woodrow, Inc., Keller Williams Realty,
Inc., Frank Howard Allen Realtors, Alain Pinel Realtors,
Inc., Paymon Ghafouri, National Association of New Home
Builders, Avalonbay Communities, Inc., Essex Property
Trust Inc., BRE Properties, Inc., Riverstone Residential
Group, LLC, First American Corporation, Fidelity
National Real Estate Solutions, LLC, IHomefinder, Inc.,
CIS Data Systems, Inc., Diverse Solutions, LLC and
Wanisoft Corporation.
iii
Rule 29.6 Statement
Real Estate Alliance, Ltd. is a private company. It
has no parent corporation and no publicly held corporation
owns 10% or more of its stock.
iv
TABlE OF CONTENTS
Page
QUESTION PRESENTED . . . . . . . . . . . . . . . . . . . . . . . . i
PARTIES TO THE PROCEEDING . . . . . . . . . . . . . . . . ii
Rule 29.6 Statement . . . . . . . . . . . . . . . . . . . . . . . iii
TABLE OF CONTENTS . . . . . . . . . . . . . . . . . . . . . . . . . iv
TABLE OF APPENDICES . . . . . . . . . . . . . . . . . . . . . . . vi
TABLE OF CITED AUTHORITIES . . . . . . . . . . . . . viii
OPINIONS BELOW . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
JURISDICTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
STATUTE INVOLVED . . . . . . . . . . . . . . . . . . . . . . . . . . 2
INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
THE INVENTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
THE PATENTS IN SUIT . . . . . . . . . . . . . . . . . . . . . . . . 3
PROCEDURAL HISTORY . . . . . . . . . . . . . . . . . . . . . . . 7
REA S ONS T O GR A N T A W RI T OF
CERTIORARI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Step Two of the Alice Test Involves Questions of
Fact . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
v
Table of Contents
Page
Both Courts Below Disregarded the Factual
Record in Their Alice Analysis . . . . . . . . . . . . . 19
T he Pat ent s -i n- Su it Cl a i m Pat ent able
Improvements to Computer User Interface
Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
The District Court Found Most Material
Questions of Fact in Dispute, But Still
Managed to Find the Claimed Invention WellUnderstood, Routine And Conventional . . . . . . 22
The District Court Failed to Render a Separate
Judgment in the Phase 2 Consolidated
Action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
The Record Lacks Any Findings Sufficient
to Invalidate the ’576 Patent . . . . . . . . . . . . . . . . 24
The District Court’s Invalidation of the
’576 Patent Contradicted its Opinion
and Improperly Terminated REAL’s
Pe n d i n g C l a i m s o f I n f r i n g e m e n t
by the Secondary Defendants . . . . . . . . . . . . . . . 25
CONCLUSION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28
vi
TABlE OF APPENDICES
Page
A ppendix A — A P PL ICAT ION F OR
EXTENSION OF TIME TO the SUPREME
C OU RT OF T H E U N I T ED S TAT E S ,
Dated June 15, 2018 . . . . . . . . . . . . . . . . . . . . . . . 1a
Appendix b — ON PETITION FOR PANEL
REHEARING AND REHEARING EN BANC
TO the United States Court of
Appeals for the Federal Circuit,
filed march 30, 2018 . . . . . . . . . . . . . . . . . . . . . . 6a
A ppendix c — opinion of the
UNITED STATES COURT OF APPEALS
F OR T H E F EDER A L C I R C U I T,
dated February 1, 2018 . . . . . . . . . . . . . . . . . . . 9a
Appendix D — JUDGMENT of the united
states DISTRICT COURT FOR THE
CENTRAL DISTRICT OF CALIFORNIA,
FILED DECEMBER 16, 2016 . . . . . . . . . . . . . . . . . 29a
Appendix E — joint status report
IN the united states district
court, central district of
california , western division,
filed december 15, 2016 . . . . . . . . . . . . . . . . 31a
A ppendix F — C I V I L M I N U T E S –
GENERAL of the UNITED STATES
DISTRICT COURT CENTRAL DISTRICT OF
CALIFORNIA, FILED DECEMBER 1, 2016 . . . 42a
vii
Table of Appendices
Page
A ppendix G — declaration of
mark tornetta in the united
states district court for
the central district of
california , western division,
filed july 15, 2016 . . . . . . . . . . . . . . . . . . . . . . . 90a
Appendix H — declaration of dennis
e. shasha in the united states
district court for the central
district of california, western
division, filed july 15, 2016 . . . . . . . . . . . . .93a
Appendix I — JOINT STATUS REPORT
in the united states DISTRICT
C O U R T, C E N T R A L DI S T R IC T O F
CA LIFORNI A , W ESTERN DI V ISION,
FILED MAY 05, 2016 . . . . . . . . . . . . . . . . . . . . . . . . 99a
Appendix J — opinion of the united
states district court . . . . . . . . . . . . . . . . 109a
viii
TABlE OF CITED AUTHORITIES
Page
CASES
Aatrix Software, Inc. v.
Green Shades Software, Inc.,
882 F.3d 1121 (Fed. Cir. 2018) . . . . . . . . . 13, 14, 15, 16
Accenture Global Services, GmbH v.
Guidewire Software, Inc.,
728 F.3d 1336 (Fed. Cir. 2013) . . . . . . . . . . . . . . . . . . 14
Akamai Techs., Inc. v. Limelight Networks, Inc.,
797 F.3d 1020 (Fed. Cir. 2015) (en banc) . . . . . . . . . . . 9
Alice Corp. Pty. Ltd. v. CLS Bank Int’l.,
134 S. Ct. 2347 (2014) . . . . . . . . . . . . . . . . . . . . . passim
Ariosa Diagnostics, Inc. v. Sequenom, Inc.,
809 F.3d 1282 (Fed. Cir. 2015) . . . . . . . . . . . . . . . . . . 12
BASCOM Global Internet Servs., Inc. v.
AT&T Mobility LLC,
827 F.3d 1341 (Fed. Cir. 2016) . . . . . . . . . . . . . . . . . . 12
Berkheimer v. HP Inc.,
881 F.3d 1360 (Fed. Cir. 2018), reh’g den.
http://www.cafc.uscourts.gov/sites/default/
files/opinions-orders/17-1437.Order.
5-25-2018.1.pdf . . . . . . . . . . . . . . . . . . . . . . . . . . passim
CBS, Inc. v. Merrick,
716 F.2d 1292 (9th Cir. 1983) . . . . . . . . . . . . . . . . 26-27
ix
Cited Authorities
Page
Exergen Corp. v. Kaz USA, Inc.,
2018 WL 1193529 (Fed. Cir. Mar. 8, 2018) . . . . . . . . 15
Hall v. Hall,
584 U.S. ____ (2018) . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Invue Sec. Prods. Inc. v. Mobile Tech, Inc.,
No. 3:15-cv-00610-MOC-DSC,
2016 WL 1465263 (W.D.N.C Apr. 14, 2016) . . . . . . . 18
Kaavo Inc. v. Amazon.com, Inc.,
Nos. 15-638-LPS-CJB, 15-640-LPS-CJB,
2016 WL 6562038 (D. Del. Nov. 3, 2016) . . . . . . . . 17-18
McRO, Inc. v. Bandai Namco Games Am. Inc.,
837 F.3d 1299 (Fed. Cir. 2016) . . . . . . . . . . . . . . . . . . . 5
Mayo Collaborative Services, dba Mayo
Medical Laboratories, et al. v.
Prometheus Laboratories, Inc.,
566 U.S. 66 (2012) . . . . . . . . . . . . . . . . . . . . . . . . . 11, 14
Move, Inc., et al. v. Real Estate Alliance, Ltd.,
__ Fed. Appx. __; 2018 WL 656377
(Fed Cir. 2018) Federal Circuit Appeal
No. 2017-1463, dated February 1, 2018,
reh’g den., March 30, 2018 . . . . . . . . . . . . . . . . . . . . . 1
Move, Inc. v. Real Estate Alliance Ltd.,
221 F. Supp. 3d 1149 (C.D. Cal. 2016) . . . . . . . . . . . 1, 9
x
Cited Authorities
Page
Move, Inc. v. Real Estate Alliance Ltd.,
413 F. App’x 280 (Fed. Cir. 2011) . . . . . . . . . . . . . . . . . 9
Move, Inc. v. Real Estate Alliance Ltd.,
No. CV 07-2185, 2016 WL 9080238
(C.D. Cal. Apr. 25, 2016) . . . . . . . . . . . . . . . . . . . . . . . . 9
Sound View Innovations, LLC v. Hulu, LLC,
CV17-04146 JAK (C.D. Cal. Apr. 11, 2018) . . . . . . . . 18
United States v. Olano,
507 U.S. 725 (1993) . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
Verint Systems Inc. v. Red Box Recorders Ltd.,
226 F. Supp. 3d 190 (S.D.N.Y. 2016) . . . . . . . . . . . . . 17
PAPERS
Paul R. Gugliuzza, The Procedure of Patent
Eligibility, Paper Presented at the Chicago
IP Colloquium at the Chicago-Kent College
of Law (Jan. 23, 2018), available at http://
chicagoip.com/files/2018/01/Gugliuzza.pdf . . . . . . . . 12
STATUTES
28 U.S.C. § 1254(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
28 U.S.C. § 1331 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 8
xi
Cited Authorities
Page
28 U.S.C. § 1338 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7, 8
28 U.S.C. § 2201 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
35 U.S.C. § 101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . passim
35 U.S.C. § 102 . . . . . . . . . . . . . . . . . . . . . . . . 11, 14, 21, 23
35 U.S.C. § 103 . . . . . . . . . . . . . . . . . . . . . . . . . . . 11, 21, 23
35 U.S.C. § 112 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
RULES
Fed. R. Civ. P. 54(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
1
This petition asks the Court to resolve an acknowledged
intra-circuit split on an important issue of patent law: What
is the proper role of fact-finding in the determination of
whether a claimed invention is well-understood, routine
and conventional? Several of the judges of the Federal
Circuit hold that this is a pure question of law, while others
hold that it is a question of law that requires findings
of fact. Judge Lourie has written that this question,
“requires higher intervention…” Real Estate Alliance
Ltd. (“REAL”) petitions for a writ of certiorari to the
United States Court of Appeals for the Federal Circuit.
This Court should grant REAL’s certiorari petition to
create uniformity among panels of the Federal Circuit and
to provide much-needed guidance to the District Courts
and to the United States Patent and Trademark Office
regarding the role fact-finding in eligibility analysis under
35 U.S.C. § 101.
OPINIONS BELOW
The Federal Circuit’s decision in Move, Inc., et al. v.
Real Estate Alliance, Ltd. is reported at __ Fed. Appx. __;
2018 WL 656377 (Fed Cir. 2018) Federal Circuit Appeal No.
2017-1463, dated February 1, 2018, reh’g. den., March 30,
2018 and reproduced at Pet.App. 9-28. The District Court’s
opinion granting summary judgment for respondent is
reported at Move, Inc. v. Real Estate Alliance Ltd., 221
F. Supp. 3d 1149 (C.D. Cal. 2016) and reproduced at Pet.
App. 42-89.
JURISDICTION
The Federal Circuit entered judgment on February
1, 2018. Pet.App. 29-30. On March 30, 2018, the Federal
2
Circuit denied REAL’s petition for panel rehearing and
rehearing en banc. Id. at 6-8. On June 25, 2018, the Chief
Justice granted REAL an extension of time to file this
petition until August 27, 2018. This Court has jurisdiction
under 28 U.S.C. § 1254(1).
STATUTE INVOLVED
35 U.S.C. § 101 provides, “Whoever invents or discovers
any new and useful process, machine, manufacture, or
composition of matter, or any new and useful improvement
thereof, may obtain a patent therefor, subject to the
conditions and requirements of this title.”
INTRODUCTION
THE INVENTION
Shortly after Inventor Mark Tornetta’s 1982 graduation
from the University of Pennsylvania with a Bachelor of
Science degree in System Science and Engineering, he
purchased a very early IBM Personal Computer equipped
with two floppy disk drives, a green phosphor monitor,
and a 1200 baud telephone modem. Because of his family
associations, he was familiar with real estate industry
practices in the use of “multiple listing services” which
were computerized databases of real estate available for
lease or sale that were used to print weekly hard copy
listing books that were delivered to brokers and agents,
and in some cases, could be used remotely over telephone
lines with portable text-based (non-graphical) computer
terminal devices. In 1982, the multiple listing system
existed as a database on a mainframe computer, and real
estate professionals were able to search the database
by an index number (“MLS Number”) or by property
3
characteristics such as ZIP code, township, number of
bedrooms, bathrooms, or type of property. The results
were printed out in text form as a list. The systems did
not contain geographic location information for properties
including “geocoding” or neighborhood information (such
as the locations of schools, shopping centers, roadways,
or public transportation). Each county’s properties were
stored in a separate system. As a result, finding properties
in adjacent counties required a user to access multiple
systems and to perform separate searches.
Inventor Tornetta recognized that the information
in the multiple listing systems could be combined with
the power of his personal computer to create a new and
useful way to locate available properties in the databases,
by using maps to show areas of interest to potential
buyers, rather than arcane codes representing townships
and neighborhoods. In 1983, he set out to develop a
computer system that would permit a map to be used to
locate available properties. By 1985, he was drawing his
own computerized maps, and plotting his own location
information on those maps.
THE PATENTS IN SUIT
On March 19, 1986, Inventor Tornetta filed his first
patent application. He continued to develop his invention,
and on April 24, 1989, he filed a “continuation-in-part”
patent application based on his earlier application, which
had been approved for issue by the United States Patent
and Trademark Office as United States Patent 4,870,576.
Pet.Supp.App. 1-22. In this second application, he added
textual description of the use of a mouse or similar device
for performing certain operations, and further qualified
the meaning of “available real estate” to further claim
4
the types of properties that could be located. He also
specifically disclosed that properties appeared on his
maps as dots on the computer screen. On July 16, 1991,
the Patent Office issued United States Patent 5,032,989.
Pet.Supp.App. 23-44.
The patents-in-suit relate to methods for geographic,
interactive graphical user interfaces used for locating
available real estate properties stored in a computer
database, employing zoomable maps.
5
These figures from the ’989 patent illustrate the user
interface invention. U.S. Patent 5,032,989, p. 3.
The invention pre-dates the commercial Internet,
and it was a precursor to every one of today’s ubiquitous
mapping applications, which have come to be an essential
part of the lives of all smartphone users.
The patents-in-suit claim important and pioneering
improvements to computer functionality that are patent
eligible because they derive their meaning as user
interface improvements in computing in the mid-1980s,
resist transfer to other technical contexts, and cannot
be implemented within the human mind (because human
minds lack essential components, such as the computer
display screen that the Federal Circuit required when it
construed the claims of the ’989 Patent.) See McRO, Inc. v.
Bandai Namco Games Am. Inc., 837 F.3d 1299, 1312 (Fed.
Cir. 2016). Properly viewed from the context of computing
in the mid-1980s, (1) there were no digital mapping
services or pre-existing mapping datasets that could
be zoomed to display a higher level of detail. (2) There
were no databases of available properties containing the
mathematical representation of the geographic locations.
(3) There was no geographic graphical user interface to
enable a user to interact with such databases. (4) There was
only primitive software that could manipulate graphical
and geographic information. In short, one of ordinary
skill in the art would (and the United States Patent and
Trademark Office did) conclude that the invention went
far beyond that which was, at the time, well-understood,
routine and conventional. For these reasons, the United
States Patent and Trademark Office issued the patents.
6
According to the ’989 patent, the user interface begins
by identifying a geographic region of interest and then
selecting an inner area within this geographic region by
“designat[ing] boundaries on a map displayed on [the]
screen.” ’989 patent, Abstract. The selected area is then
“zoomed in on and a second area is selected within the
zoomed region.” Id. The zoom feature permits users
to “change the world coordinate display” such that the
“display now appears to have zoomed down closer to
earth.” Id. at col. 2 ll. 1–4, col. 9 ll. 52–57. The resulting
map is, “displayed with greater detail,” i.e., not just as
a magnified view of the original map, but containing
details not present on the original map at all. Id. at col.2
ll.4–10. The selected area “is then cross-referenced with
the database of available properties whose approximate
locations are then pictorially displayed on screen.” Id.,
Abstract.
The patent claims a user interface invention that
depicts the geographic location of available properties on
a zoomable map displayed on a screen. Claim 1 of the ’989
patent recites this pioneering improvement in computer
database user interfaces:
1. A method using a computer for locating available
real estate properties comprising the steps of:
a)
creating a database of the available real estate
properties;
b)
displaying a map of a desired geographic area;
c)
selecting a first area having boundaries within
the geographic area;
7
d) zooming in on the first area of the displayed map
to about the boundaries of the first area to display
a higher level of detail than the displayed map;
e)
displaying the zoomed first area;
f)
selecting a second area having boundaries within
the zoomed first area;
g) displaying the second area and a plurality
of points within the second area, each point
representing the appropriate geographic location
of an available real estate property; and
h) identifying available real estate properties within
the database which are located within the second
area.
Id. at col. 15 l. 33 – col. 16 l. 3.
PROCEDURAL HISTORY
This action commenced in 2007 when Move, Inc.
(“Move”) filed suit against Real Estate Alliance Ltd.
(“REAL”) in the U.S. District Court for the Central
District of California seeking a declaratory judgment
under 28 U.S.C. § 1331, 1338, and 2201, that United
States Patents 5,032,989 and 4,870,576 (the “’989 and
’576 patents”) were invalid and not infringed by Move’s
websites, including realtor.com and others.
REAL then sued the National Association of Realtors
(“NAR”), the National Association of Home Builders
(“NAHB”), and a number of real estate brokers, agents,
8
multiple listing services, home builders, and rental
property owners and managers under 28 U.S.C. § 1331,
1338 for infringing the ’989 and ’576 patents. REAL’s
complaint asserted infringement not only by use of the
Move websites, and but also separately by each defendant’s
individual website.
The District Court consolidated the two cases
and entered a case management order dividing the
litigation into two phases. Phase 1 would resolve REAL’s
infringement claims against Move, NAR, and NAHB
regarding Move’s websites, as well as issues relating to
the validity or enforceability of the ’989 and ’576 patents.
Phase 2 would address REAL’s infringement claims
against the remaining defendants (“the Secondary
Defendants”) based on their individual websites, i.e.,
non-Move websites, as well as liability issues if the Move
websites were found to infringe in Phase 1. All of REAL’s
claims against the Secondary Defendants were stayed
during Phase 1. No answers or motions were filed, and the
Secondary Defendants agreed to be bound by any validity,
enforceability, or claim construction determinations made
in Phase 1, as well as any finding that a Move website
infringed the ’989 or ’576 patents.
In Phase 1 of the litigation the District Court issued
a claim construction order addressing claim construction
disputes in both patents. Based on the District Court’s
constructions, REAL stipulated to noninfringement of
both patents by the Primary Defendants, and appealed
to the Court of Appeals for the Federal Circuit (“Federal
Circuit”). In its appeal, REAL chose to continue to assert
only the ’989 patent against the Primary Defendants.
9
The Federal Circuit determined that the District
Court had erred in construing the claims of the ’989
patent and it thus vacated and remanded. See Move, Inc.
v. Real Estate Alliance Ltd., 413 F. App’x 280, 282 (Fed.
Cir. 2011). On remand, Move sought summary judgment
of noninfringement of the ’989 patent. The District
Court granted Move’s motion in a 2012 opinion because
it concluded that Move was not liable for direct or joint
infringement of the ’989 patent. REAL again appealed,
and the case was remanded to the District Court in view
of ongoing changes in the law of divided infringement
resulting from the decision in Akamai Techs., Inc. v.
Limelight Networks, Inc., 797 F.3d 1020 (Fed. Cir. 2015)
(en banc).
On remand, Move sought summary judgment that
REAL had waived its divided infringement claims against
Move and public users of its websites. The District Court
granted Move’s motion, ruling that REAL had waived
its claims by implication. See Move, Inc. v. Real Estate
Alliance Ltd., No. CV 07-2185, 2016 WL 9080238, at *2–4
(C.D. Cal. Apr. 25, 2016).
In a subsequent motion, Move sought summary
judgment that the ’989 patent was invalid under 35 U.S.C.
§ 101. The District Court granted the motion. Move, Inc. v.
Real Estate Alliance Ltd., 221 F. Supp. 3d 1149 (C.D. Cal.
2016) (“Eligibility SJ Op.”) (citing Alice Corp. Pty. v. CLS
Bank Int’l., 134 S. Ct. 2347 (2014)). In the Eligibility SJ
Op, the District Court stated: “While the parties have not
squarely addressed the question whether the ’576 Patent
is invalid under 35 U.S.C. § 101, it appears—though we
do not decide—that our ruling with respect to the ’989
Patent may invalidate the ’576 Patent as well.” Id. at 1174.
(emphasis added)
10
Believing that it was preserving its ’576 patent
infringement claims against the Secondary Defendants
for their individual websites, and having received no notice
that the Phase 2 stay had been lifted (because the Court
never did so), REAL joined with the defendants in filing
a status report as required by the District Court. That
report stated, in pertinent part,
[T]he Parties are all in agreement that the
Court’s Order [invalidating the ’989 patent], in
addition to its Order of April 25, 2016 holding
that REAL has waived its right to proceed on
a theory of divided direct infringement under
§ 271(a), effectively resolves all issues to this
action, including all issues related to REAL’s
claims against the Secondary Defendants.
For its part, REAL, despite its belief that
the Court’s Orders are factually and legally
incorrect, agrees that in order for it to pursue
its fourth appeal to the Court of Appeals for
the Federal Circuit, it should join with the
other parties in this report. Accordingly, the
Parties jointly request that the Court enter
Judgment of Non-Infringement and Invalidity
in favor of Plaintiffs Move, Inc., National
Association of Realtors, National Association of
Homebuilders, and all Secondary Defendants.
Pet.App. 32 (emphases added).
Thereafter, the District Court entered a single
judgment, holding not only the ’989 patent invalid, but
also, without predicate argument or motion, or making
findings of fact, that the ’576 patent was invalid under 35
U.S.C. § 101 as well. REAL appealed.
11
No court has ever answered the question, “As of
what date was the Tornetta invention well-understood,
routine and conventional, and by what proof?” The
District Court denied motions seeking summary judgment
of invalidity under sections 102 and 103 of the Patent
Act because it could not determine, as a matter of law,
whether the ’989 patent was entitled to the priority date
of its parent application, the ’576 patent. In reaching its
holding invalidating the ’989 patent, the District Court
disregarded uncontroverted fact and expert testimony,
and ruled, as a matter of law, that the claimed invention
was well-understood, routine and conventional, a holding
that is belied both by logic and the uncontroverted record
in this case.
The Federal Circuit affirmed the judgment of the
District Court, finding the ’989 patent invalid under 35
U.S.C. § 101 as abstract, and finding that REAL had, by
nothing more than joining the status report, conceded
invalidity of the ’576 patent. Having pursued four appeals
to the Federal Circuit over more than eleven years, REAL
now petitions this Court for a writ of certiorari.
REASONS TO GRANT A WRIT OF CERTIORARI
Step Two of the Alice Test Involves Questions of Fact
In Alice Corp. Pty. v. CLS Bank Int’l., 134 S. Ct. 2347
(2014), this Court, citing Mayo Collaborative Services,
dba Mayo Medical Laboratories, et al. v. Prometheus
Laboratories, Inc., 566 U.S. 66 (2012), instructed that
each claim element and ordered combination of elements
should be reviewed to determine whether it was previously
known to the industry. This, of course, is a factual matter,
12
requiring knowledge of (1) what was known, (2) when it
became known, and (3) by whom it was known. The issue
of the proper role of fact-finding with respect to the second
part of the Alice test is of vital importance to all lower
courts hearing patent cases, to patent examiners, and to
applicants for letters patent. It is especially important
that this Court speak with a clear and unified voice on
this matter.
Commentators have noted that, “there exist deep
conflicts in the case law about whether eligibility is a
question of law, fact, or a little of both, and that these
conflicts continue to plague the lower courts.” 1 This
conflict is particularly notable as an intra-circuit split at
the Federal Circuit.
Federal Circuit Judges Moore, Taranto, Stoll, and
Newman have agreed with this Court that the eligibility
analysis is not a pure question of law because the issue
of whether an invention is sufficiently innovative must
be evaluated in light of the scientific and historic facts.
Berkheimer v. HP Inc., 881 F.3d 1360, 1364 (Fed.
Cir. 2018); see also BASCOM Global Internet Servs.,
Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1354 (Fed.
Cir. 2016) (Newman, J., concurring) (urging courts to
analyze patentability rather than eligibility when issues
raised by step two of the Alice test and the prior art are
coextensive); Ariosa Diagnostics, Inc. v. Sequenom,
Inc., 809 F.3d 1282, 1294 (Fed. Cir. 2015) (Newman, J.
dissenting) (criticizing decision finding patent ineligible
1. Paul R. Gugliuzza, The Procedure of Patent Eligibility, at
25, Paper Presented at the Chicago IP Colloquium at the ChicagoKent College of Law (Jan. 23, 2018), available at http://chicagoip.
com/files/2018/01/Gugliuzza.pdf.
13
on breakthrough invention that “is novel and unforeseen,
and is of profound public benefit.”).
On the other hand, Judges Reyna, Wallach and Lourie
have held that § 101 is a purely legal question, in which
factual considerations should play no part. Judge Reyna
dissented in Aatrix, “I respectfully disagree with the
majority’s broad statements on the role of factual evidence
in a §101 inquiry. Our precedent is clear that the §101
inquiry is a legal question.” Aatrix Software, Inc. v. Green
Shades Software, Inc., 882 F.3d 1121 (Fed. Cir. 2018). As
demonstrated infra, this position is not in accord with this
Court’s approach in Alice.
On February 8, 2018, one week after its decision in
this case, the Federal Circuit clarified the standard for
determination of whether an invention is well-understood,
routine and conventional. The Federal Circuit held in a
precedential decision that although eligibility under 35
U.S.C. §101 is a question of law, an essential component
part of that determination is a question of fact, to be
decided on the basis of a sufficient record establishing
clear and convincing evidence.
The 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. Like indefiniteness,
enablement, or obviousness, whether a claim
recites patent eligible subject matter is a
question of law which may contain underlying
facts (emphasis added).
14
Berkheimer at 1368. In support of this statement, the
Federal Circuit cited to similar language in Accenture
Global Services, GmbH v. Guidewire Software, Inc., 728
F.3d 1336 (Fed. Cir. 2013), as well as Justice Breyer’s
statement from Mayo Collaborative Services, dba Mayo
Medical Laboratories, et al. v. Prometheus Laboratories,
Inc., 566 U.S. 66 (2012) that the §101 inquiry may overlap
with fact-sensitive inquiries such as novelty under §102.
[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, 881 F.3d at 1368.
Whether something is well-understood, routine,
and conventional to a skilled artisan at the
time of the patent is a factual determination.
Whether a particular technology is wellunderstood, 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.
Id.; accord, Aatrix at 1130 (“Whether the claim elements
or the claimed combination are well-understood, routine,
conventional is a question of fact.”)
15
The Federal Circuit’s decisions in Berkheimer and
Aatrix make it clear that this case was wrongly decided.
Before the District Court and the Federal Circuit,
Petitioner showed that many material facts about
the claimed invention, including that it was not wellunderstood, routine and conventional were in dispute.
After finding that most of the disputed material facts
precluded granting of numerous summary judgment
motions, REAL’s arguments regarding whether the
invention survived step two of Alice were dismissed out
of hand by a Federal Circuit panel comprised of Judges
Lourie, Wallach and Stoll – a panel having a majority that
holds, contrary to the holding in Alice, that step two of
Alice is a pure question of law. Berkheimer and Aatrix,
however, establish that summary judgment on § 101
grounds is improper if the patentee raises genuine issues
of material fact. Under Alice, Berkheimer and Aatrix,
the District Court’s decision should have been reversed.
The Federal Circuit has further clarified its position
in Exergen Corp. v. Kaz USA, Inc., 2018 WL 1193529, *4
(Fed. Cir. Mar. 8, 2018) (“Like indefiniteness, enablement,
or obviousness, whether a claim is directed to patentable
subject matter is a question of law based on underlying
facts.”; “Something is not well-understood, routine, and
conventional merely because it is disclosed in a prior
art reference. There are many obscure references that
nonetheless qualify as prior art.”)
Under Alice step one, the District Court wrongly held
that the claims of the ’989 patent were directed to the
abstract idea of, “collecting and organizing information
about available real estate properties and displaying this
information on a digital map that can be manipulated
16
by the user.” Id. at 1162. The District Court ignored the
user interface aspects of the invention, and then wrongly
determined under Alice step two that the claims lacked an
inventive concept because nothing in the claim limitations
or their ordered combination transformed the abstract
idea into a patent-eligible application. Id. at 1164–65. The
Federal Circuit affirmed. Both courts are wrong on the
facts, and, more importantly, wrong on the law.
In denying rehearing en banc in both Berkheimer and
Aatrix, a clear intra-circuit split among the judges of the
Federal Circuit was on display.
Whether a claim element or combination of
elements would have been well-understood,
routine, and conventional to a skilled artisan in
the relevant field at a particular point in time
may require “weigh[ing] evidence,” “mak[ing]
credibility judgments,” and addressing “narrow
facts that utterly resist generalization.” Id. at
967 (quoting Pierce v. Underwood, 487 U.S.
552, 561–62 (1988)). The Supreme Court in
Alice asked whether the claimed activities were
“previously known to the industry,” and in Mayo
asked whether they were “previously engaged
in by researchers in the field.” Alice Corp. Pty.
v. CLS Bank Int’l, 134 S. Ct. 2347, 2359 (2014);
Mayo Collaborative Servs. v. Prometheus
Labs., Inc., 566 U.S. 66, 73 (2012). Indeed,
the Court recognized that “in evaluating the
significance of additional steps, the §101 patenteligibility inquiry and, say, the § 102 novelty
inquiry might sometimes overlap.” Mayo, 566
U.S. at 90. “[C]ase law from the Supreme Court
17
and this court has stated for decades that
anticipation is a factual question.” Microsoft
Corp. v. Biscotti, Inc., 878 F.3d 1052, 1068 (Fed.
Cir. 2017). While the ultimate question of patent
eligibility is one of law, it is not surprising that
it may contain underlying issues of fact. Every
other type of validity challenge is either entirely
factual (e.g., anticipation, written description,
utility), a question of law with underlying facts
(e.g., obviousness, enablement), or a question
of law that may contain underlying facts (e.g.,
indefiniteness).
http://www.cafc.uscourts.gov/sites/default/files/opinionsorders/17-1437.Order.5-25-2018.1.pdf, p.6 (footnotes
omitted)
In his Berkheimer rehearing dissent, Judge Lourie
concluded, “Resolution of patent-eligibility issues requires
higher intervention, hopefully with ideas reflective of the
best thinking that can be brought to bear on the subject.”
Id. at 18. Petitioner respectfully requests that this Court
accept Judge Lourie’s challenge.
The need for a clear standard is evident in the writings
of many district courts that have expressed concern about
resolving eligibility issues on an undeveloped record. Verint
Systems Inc. v. Red Box Recorders Ltd., 226 F. Supp. 3d
190, 192-93 (S.D.N.Y. 2016) (explaining “the current fad
of ineligibility motions in patent cases has, in certain
respects, gotten ahead of itself” and noting that “courts
should make such determinations on a proper record”);
Kaavo Inc. v. Amazon.com, Inc., Nos. 15-638-LPS-CJB,
15-640- LPS-CJB, 2016 WL 6562038, at *11 (D. Del. Nov.
18
3, 2016) (asking “how, on this record, would the Court be
in a position to conclusively determine” whether, under
the second step of Alice that the claim involved merely
“conventional activities?”); Invue Sec. Prods. Inc. v.
Mobile Tech, Inc., No. 3:15-cv-00610-MOC- DSC, 2016
WL 1465263, at *2 (W.D.N.C Apr. 14, 2016) (noting that
numerous courts have declined to rule on eligibility
at the pleading stage, “finding claim construction and
additional factual development necessary to resolution of
the invalidity question”). Still other district courts have
taken their cue from Berkheimer and have denied motions
to dismiss, holding that matters of material fact must be
established before a ruling on eligibility may be made.
Sound View Innovations, LLC v. Hulu, LLC, CV17-04146
JAK (C.D. Cal. Apr. 11, 2018).
The United States Patent and Trademark Office,
recognizing that what is well-understood, routine and
conventional is a question of fact, has issued a memorandum
providing guidance to all patent examiners. (https://
w w w.uspto.gov/sites/default/files/documents/memoberkheimer-20180419.PDF) That memorandum directs
examiners to present facts during patent prosecution to
establish that a claim element or combination of elements
is well-understood, routine, and conventional. Still, doubt
remains, as contrary viewpoints on the Federal Circuit
continue to be expressed.
That such concerns exist in this case, after eleven
years of litigation, numerous motions for summary
judgment, and four appeals to the Federal Circuit serves
as an object lesson in the need for this Court to speak with
special clarity on the issue.
19
Both Courts Below Disregarded the Factual Record in
Their Alice Analysis
The claimed invention, disclosed and enabled in
the many logical flow charts contained in the figures
and the Appendix was neither well-known, routine, nor
conventional at the time of the invention, and the disclosed
method satisfies the “something more” of Alice step two.
REAL provided the District Court with the opinion
and fact testimony of its expert, Dr. Dennis Shasha of
New York University, which was uncontroverted, that at
the time of the patents, the claimed methods (particularly
the zoom to display a higher level of detail) were not wellunderstood, routine, or conventional. Although the District
Court said in its opinion that it accepted Dr. Shasha’s
sworn declaration as true, it then proceeded to ignore
the declaration, and without any counter argument of
record, inconsistently invalidated the ’989 Patent under
Alice step two.
Dr. Shasha testified by declaration, based on his
personal knowledge. (Pet.App. 93-98) The Federal Circuit
termed this testimony “conclusory”. In discounting the
testimony of REAL’s expert as conclusory, the Federal
Circuit effectively required REAL and its expert to have
proven a negative, namely: that there did not exist, at the
(undetermined) time of the invention, a well-understood,
routine, and conventional method of performing the
claimed steps. But such an inquiry was, in fact, conducted,
and we have the benefit of a full record: the United States
Patent Office searched for relevant prior art, and all that
was found is listed in the file histories of the patents-insuit. The Patent Office issued the patents-in-suit with
20
presumed full knowledge of what, at the relevant time,
was well-understood, routine and conventional to one of
ordinary skill in the art. Other prior art not of record in
the file history was presented to the District Court by
Move, was considered by that Court, and was determined
only to create genuine disputes of material fact, in the
denial of Move’s requested summary judgment. (Pet.
App. 68-86)
The inventor, Mr. Tornetta conf ir med by his
Declaration filed in the Patent Office, and Dr. Shasha also
testified that one of ordinary skill in the 1980s would have
understood that the claimed elements (zooming to display
a higher level of detail, displaying points on the zoomed
map on a computer screen, and identifying properties in
the database of available properties that are within the
second area, among others) were not well-understood,
routine, or conventional, and were, instead, an important,
non-abstract invention that represent an improved user
interface for a computer system.
The Federal Circuit concluded that this disclosed
method does not differ from “that which any programmer
would have used”, but based this conclusion on no factual
findings about what any programmer did use or could
have used at the relevant time. The Federal Circuit
stated, “REAL also has not pointed us to any portion of
the specification that fills this gap.” During oral argument,
REAL’s counsel directed the Court to the 218 page
Appendix in the File History, which discloses in full detail
how the inventor implemented his invention.
The Federal Circuit has, instead, used the inventor’s
enabling disclosure that the invention could be,
21
“implemented on an IBM or compatible personal computer
system” as a damning admission. This is a category error
akin to saying that because an inventor discloses that
a new rocket engine may be made from available steel
alloys, the engine’s structure is therefore well-understood,
routine and conventional.
The Patents-in-Suit Claim Patentable Improvements
to Computer User Interface Technology
None of the foregoing should be understood as an
attempt to conflate validity determinations under 35
U.S.C. §102 and §103, with those under §101, but rather,
as an illustration that there exists no factual record that
provides an adequate basis for summary judgment that
the patents-in-suit are invalid. In Berkheimer, the Federal
Circuit distinguished between whether a technology is
“known” in the sense of § 102 (e.g., publicly available) and
whether one of ordinary skill would find the technology
to be well-understood, routine, and conventional (e.g.,
something that this person of ordinary skill would consider
to be textbook knowledge or part of his or her ordinary
course of activities).
In the present case, there are no facts of record that
show that the claimed inventions were well-understood,
routine and conventional at the time they were made. The
record contains only conclusory inferences, improperly
drawn against REAL. The opinion and judgment of
the District Court contain no reasoning or evidence for
its position that the invention was well-known, routine
and conventional. Moreover, the intrinsic record itself
establishes sufficient facts regarding this issue in REAL’s
favor (i.e., statements regarding the prior art, the manner
22
in which the deficiencies of prior systems were overcome
in implementing the invention, and the particular logic
with which the computer was programmed to do so) to
have required a jury determination of the issue.
The District Court Found Most Material Questions
of Fact in Dispute, But Still Managed to Find the
Claimed Invention Well-Understood, Routine And
Conventional
The District Court was unable to determine whether
the ’989 patent was entitled to claim the priority date
of the ’576 patent, holding that a disagreement between
the expert witnesses created a dispute of material fact
on that issue. “As explained above, we find a genuine
dispute of material fact as to whether the ’989 Patent
is entitled to a priority date based on the effective filing
date of the ’576 Patent – March 19, 1986.” (Pet.App. 75)
Because the proper priority date of the ’989 patent could
not be determined as a matter of law, it is inescapable that
what was well-understood, routine and conventional as of
the (undetermined) priority date of the ’989 patent also
cannot be determined sufficiently to serve as a basis for
summary judgment.
Common sense dictates that the state of human
knowledge advances with time. Those phenomena once
ascribed to divine actions later become understood
through scientific experimentation. What was once
impossible later becomes ordinary, as humankind’s
development of new materials and methods is applied to
solve its challenges. An understanding of what is wellunderstood, routine and conventional to those of ordinary
skill in any art necessarily entails asking the question,
“As of what date?” With each publication of a technical
23
paper, patent application, and news article, the store of
well-understood, routine and conventional knowledge
advances, but unless a date may be fixed for the inquiry,
the question is vague, and the answer may be dangerously
incorrect. That is the reason that a bright line defining
the content of the “prior art” is employed in the context
of patentability determinations under §§ 102 and 103.
The District Court considered and denied summary
judgment motions regarding invalidity under 35 U.S.C. §§
102 and 103. It denied those motions, finding genuine issues
of material fact regarding the content and application of
the prior art. Again, although invalidity under §§ 102 and
103 are not identical to invalidity under § 101, the existence
of material questions of fact regarding the prior art should
inform the Court’s inquiry into the question of what was
well-understood, routine and conventional at the time of
invention for each of the patents in suit.
Although not identical in scope, the concepts of, “wellunderstood, routine and conventional” under Alice step
two, and sufficiency of disclosure in the context of a §112
challenge to validity are two sides of the same coin. If
something is well-understood, routine and conventional,
then it need not be completely disclosed in a patent
application, as one of ordinary skill in the art is presumed
to possess this knowledge. In the present case, Move
presented a summary judgment motion for a finding of
invalidity under §112. The District Court denied summary
judgment, finding that a genuine issue of material fact
existed. (Pet.App. 75) If the District Court could not
summarily rule on sufficiency of disclosure, it should not
have then ruled that the disclosed invention was wellunderstood, routine, and conventional. These two holdings
are mutually inconsistent.
24
The District Court Failed to Render a Separate
Judgment in the Phase 2 Consolidated Action
This Court has recently held that when actions are
consolidated, the cases retain their separate identities,
and trial courts must render separate judgments in each
consolidated action. Hall v. Hall, 584 U.S. ____ (2018).
Here, no such separate judgment was rendered, nor could
one have been, as the Phase 2 action was stayed after filing
of the complaint and entry of the case management order.
No answers, motions, discovery, hearings, or any other
proceedings are of record, and the stay imposed by the
District Court remained undisturbed throughout eleven
years of litigation in Phase 1. Only a bare and unexplained
judgment of invalidity was entered against REAL. This
defect, alone, is grounds for this Court to grant REAL’s
petition, vacate the judgment, and remand for a trial to
properly establish the facts.
The Record Lacks Any Findings Sufficient to Invalidate
the ’576 Patent
In its Eligibility SJ Op., the District Court provided
no reasoning or evidence, beyond a broad statement
of possibility that the ’576 Patent might be ineligible
under §101. (Pet.App. 88-89) The Claims of the ’576
Patent differ significantly from those of the ’989 Patent,
but have never been analyzed under Alice. Just as with
the ’989 patent, the intrinsic record itself establishes
sufficient facts regarding this issue in REAL’s favor
(i.e., statements regarding the prior art, the manner in
which the deficiencies of prior systems were overcome
in implementing the invention, and the particular logic
with which the computer was programmed to do so) to
25
have required a jury determination that the invention
was, at the time it was made, well-understood, routine,
and conventional.
The District Court’s Invalidation of the ’576 Patent
Contradicted its Opinion and Improperly Terminated
REAL’s Pending Claims of Infringement by the
Secondary Defendants
After refusing to find the ’576 patent invalid in
its Eligibility SJ Op., the District Court then entered
judgment invalidating the ’576 patent, stripping REAL
of its valuable patent rights and denying REAL all due
process. The judgment in Phase 1 that purported to
terminate the consolidated case was a complete surprise
to the parties, as the invalidation of the ’576 patent under
35 U.S.C. § 101 contradicted the District Court’s express
holding that the ’576 patent remained valid. No findings
of fact with respect to the ’576 patent are of record, nor
were there any conclusions of law. REAL placed the issues
squarely before the District Court in the joint status
report of May 5, 2016:
In response to the Court’s direction to identify
outstanding issues, REAL asserts that none of
its claims for relief has been adjudicated on the
merits, either as to the Phase 1 counterclaim
defendants or the Phase 2 counterclaim
defendants. Accordingly, except as to the issue
of waiver with respect to Claims I-III of REAL’s
Counterclaim (Dkt. 210), no issues, either of
liability or damages, have been decided in the
case. All issues remain outstanding as to Claims
IV-X of the REAL’s Counterclaim. All issues
26
except waiver remain outstanding with respect
to Claims I- III of REAL’s Counterclaim. All
of REAL’s defenses to each of Move’s claims
remains outstanding. This court did not reach
the merits of the issue of infringement on
remand from the Federal Circuit. By way of
example, there has been no ruling on whether
the Phase 2 counterclaim defendants infringe
when they operate in conjunction with the Phase
1 counterclaim defendants. REAL continues to
have the right to adjudicate that issue in Phase
2. ... If the Court does not enter a Rule 54(b)
judgment based on the waiver order, REAL
respectfully requests that the Court should
adjudicate all claims and all defenses as to all
parties.
(Pet.App. 99-108) The District Court never entered a
Rule 54(b) judgment, and failed to fully and properly
adjudicate REAL’s claims. Instead, the District Court
ignored REAL’s unequivocal statements of its pending
claims, swept those claims from its desk by finding the
’576 patent invalid, and retired from the federal judiciary.
The Federal Circuit determined that the Joint Status
Report evidenced REAL’s concession of invalidity of the
’576 patent. It strains credulity that REAL would, or
could have knowingly conceded invalidity, and waived
infringement claims that it had pursued for more than
eleven years, without addressing the many issues
attending summary invalidation of the earlier of its
patents. REAL and its counsel did not knowingly intend
to relinquish infringement claims against the secondary
defendants. CBS, Inc. v. Merrick, 716 F.2d 1292, 1295
27
(9th Cir. 1983); see also United States v. Olano, 507 U.S.
725, 733 (1993). REAL and its counsel did not know that
the statements in the Joint Status Report would be (or
could be) interpreted in this manner. REAL’s joinder in
the Status Report (which is not a pleading) should not be
taken to be indicative of a knowing waiver by REAL.
At the time REAL joined in submitting the Joint
Status Report, the ’576 Patent not been ruled invalid.
The Federal Circuit was factually incorrect when it
opined, “The district court’s directive also sought input
from the Secondary Defendants – parties who were not
litigating the issues in Phase 1 – which should have served
as another indicator that the parties needed to identify
any outstanding issues in either phase of the litigation.”
(Pet.App. 27) That the District Court sought input from
the secondary defendants was to be expected, as those
parties had agreed to be bound by the outcome of Phase 1
of the litigation, and many stand accused of infringement
by virtue of their use of the MOVE websites and systems.
To the extent that claims against the secondary
defendants arising from their use of the MOVE websites
were at an end, no reasonable person could have believed
that REAL’s claims of infringement of the ’576 Patent that
were not based on any of the secondary defendants’ use
of the MOVE system were being (or had already been)
decided. Those claims had long been stayed, and had
been explicitly identified as still-unresolved in the May
2016 status report, in which REAL explicitly requested
that the Court decide them. Only a defect of memory can
explain the District Court’s failure to address REAL’s
infringement claims against the Secondary Defendants,
and the Federal Circuit’s casting a blind eye to REAL’s
claims.
28
The Federal Circuit distorted the meaning of the
paragraph it quoted from the Joint Status Report by
intentionally omitting REAL’s statement regarding the
District Court’s errors of fact and law, and its intention
to appeal.(Pet.App. 26) Read as a complete quotation, the
Joint Status Report is not an unequivocal pleading which
the Court could have taken as an admission regarding
the ultimate issue of law – the validity of the ’576 patent.
CONCLUSION
For all of the foregoing reasons, Petitioner earnestly
solicits this Court to grant its petition for a writ of
certiorari to the Court of Appeals for the Federal Circuit,
to vacate the decision of the Federal Circuit, and to
remand for proceedings to establish sufficient facts upon
which to properly decide all issues.
August 24, 2018
Respectfully submitted,
Lawrence A. Husick
Counsel of Record
Laurence A. Weinberger
Lipton, Weinberger & Husick
P.O. Box 587
Southeastern, PA 19399
(610) 296-8259
lawrence@lawhusick.com
Counsel for Petitioner
APPENDIX
1a
Appendix A FOR EXTENSION
APPENDIx A — APPlICATION
OF TImE TO tHE SUPREmE COURT OF THE
UNITED STATES, DatED JuNE 15, 2018
iN tHe sUPreme coUrt oF
tHe UNited states
No. 18-a__
real estate alliaNce ltd.,
Petitioner-Defendant/Counterclaimant,
v.
move, iNc., NatioNal associatioN
oF realtors, NatioNal associatioN
oF Home BUilders,
Respondents-Plaintiffs/Counterclaim Defendants,
and
re/maX iNterNatioNal, iNc., advaNced
access, Norcal Gold, iNc., dBa re/maX
Gold, iNc., Brad KorB, eNeiGHBorHoods,
llc, cHristY morrisoN, oraNGe coUNtY
mUltiPle listiNG service, iNc., dBa
soUtHerN caliForNia mls, metroPolitaN
mUlti-list, iNc., dBa GeorGia mls, iNc.,
metrolist services, iNc., delaWare
valleY real estate iNFormatioN
NetWorK, iNc., dBa treNd, raPattoNi
corPoratioN, BirdvieW.com, iNc., dBa
2a
Appendix A
BirdvieW tecHNoloGies, delta media
GroUP, iNc., PUlte Homes, iNc., tHe rYlaNd
GroUP, iNc., sHea Homes, taYlor morrisoN,
iNc., FKa taYlor WoodroW, iNc., Keller
Williams realtY, iNc., FraNK HoWard
alleN realtors, alaiN PiNel realtors,
iNc., PaYmoN GHaFoUri, NatioNal
associatioN oF NeW Home BUilders,
avaloNBaY commUNities, iNc., esseX
ProPertY trUst iNc., Bre ProPerties,
iNc., riverstoNe resideNtial GroUP, llc,
First americaN corPoratioN, FidelitY
NatioNal real estate solUtioNs, llc,
iHomeFiNder, iNc., cis data sYstems, iNc.,
diverse solUtioNs, llc,
WaNisoFt corPoratioN
Respondents-Defendants.
APPlICATION FOR EXTENSION OF TImE TO
FIlE A PETITION FOR A WRIT OF CERTIORARI
Laurence A. weInberger
Lawrence A. husIck
Counsel of Record
lIPTON, WEINBERGER & HUSICK
P.o. Box 587
southeastern, Pa 19399-0587
tel: (610) 296-8259
Counsel for Petitioner Real Estate Alliance Ltd.
3a
Appendix A
RulE 29.6 StatEmENt
real estate alliance, ltd. is a private company. it has
no parent corporation and no publicly held corporation
owns 10% or more of the stock of real estate alliance,
ltd.
TO THE HONORABlE JOHN G. ROBERTS, JR.,
CHIEF JUSTICE OF THE SUPREmE COURT OF
THE UNITED STATES AND CIRCUIT JUSTICE FOR
THE FEDERAl CIRCUIT:
Pursuant to supreme court rules 13.5, and 22,
Petitioner respectfully requests a 60-day extension of
time, up to and including August 28, 2018, to file a petition
for a writ of certiorari to the United states court of
appeals for the Federal circuit to review that court’s
decision in Move, Inc., et al. v. Real Estate Alliance, Ltd.,
__ Fed. appx. __ (Fed cir. 2018) caFc appeal No. 20171463 (attached as exhibit a).
the jurisdiction of this court will be invoked under 28
U.S.C. § 1254(1), and the time to file a petition for a writ
of certiorari will expire without an extension on June 28,
2018. This application is timely because it has been filed
more than ten days prior to the date on which the time
for filing the petition is to expire.
this case presents a substantial and important
question of federal law: Whether patent eligibility under
35 U.S.C. § 101, and specifically the second step of the
Mayo/Alice framework, which requires determination
4a
Appendix A
of whether something is well-understood, routine, and
conventional” is a factual determination.
the case law surrounding this issue is complex, and is
rapidly evolving. only one week after the judgment sought
to be reviewed here, the court of appeals for the Federal
circuit issued its judgment in Berkheimer v. HP Inc., __
Fed. appx. __ (Fed. cir. 2017-1437). on the basis of the
holding in Berkheimer, petitioner sought rehearing, or in
the alternative, rehearing en banc. the court of appeals
denied that motion without opinion.
on may 31, 2018, the court of appeals for the
Federal circuit denied rehearing in Berkheimer, stating,
“resolution of patent-eligibility issues requires higher
intervention, hopefully with ideas reflective of the best
thinking that can be brought to bear on the subject.”
Orders Denying Petition for Rehearing En Banc, Aatrix
Software, Inc. v. Green Shades Software, Inc., Fed. cir.
(may 31, 2018); Berkheimer v. HP Inc., Fed. cir. (may
31, 2018). lourie, J. concurring, p. 5. (http://www.cafc.
uscourts.gov/sites/default/files/opinions-orders/17-1437.
order.5-25-2018.1.pdf)
Petitioner respectfully suggests that this case presents
just such an opportunity for “higher intervention”. Further
cases continue to be decided on this issue on a near-weekly
basis, and numerous commentators have remarked that
case outcome is now entirely panel-dependent, marking
an intra-circuit split that requires resolution by this
court. counsel for petitioner requests this extension of
time to address such recent, numerous, and continuing
developments in the law.
5a
Appendix A
accordingly, the petitioner respectfully requests that
an order be entered extending the time to file a petition
for a writ of certiorari for 60 days, up to and including
august 28, 2018.
dated: June 15, 2018
respectfully submitted,
/s laurence a. Weinberger
Laurence A. weInberger
Lawrence A. husIck
Counsel of Record
lIPTON, WEINBERGER & HUSICK
P.o. Box 587
southeastern, Pa 19399-0587
tel: (610) 296-8259
Counsel for Petitioner Real Estate Alliance Ltd.
6a
B
APPENDIx B — Appendix
ON PETITION
FOR PANEl
REHEARING AND REHEARING EN BANC TO
thE UNItED StatEs Court of APPEals for
thE FEDEral CIrcuIt, fIlED march 30, 2018
UNited states court oF APPeals
For tHe Federal circuit
2017-1463
mOvE, INc., NATIONAL AssOcIATION
OF REALTORs, NATIONAL AssOcIATION
OF HOmE BUILDERs,
Plaintiffs/Counterclaim Defendants-Appellees,
RE/mAX INTERNATIONAL, INc., ADvANcED
AccEss, NORcAL GOLD, INc., DBA RE/mAX
GOLD, INc., BRAD KORB, ENEIGHBORHOODs,
LLc, cHRIsTY mORRIsON, ORANGE cOUNTY
mULTIPLE LIsTING sERvIcE, INc., DBA
sOUTHERN cALIFORNIA mLs, mETROPOLITAN
mULTI-LIsT, INc., DBA GEORGIA mLs, INc.,
mETROLIsT sERvIcEs, INc., DELAWARE
vALLEY REAL EsTATE INFORmATION
NETWORK, INc., DBA TREND, RAPATTONI
cORPORATION, BIRDvIEW.cOm, INc., DBA
BIRDvIEW TEcHNOLOGIEs, DELTA mEDIA
GROUP, INc., PULTE HOmEs, INc., THE RYLAND
GROUP, INc., sHEA HOmEs, TAYLOR mORRIsON,
INc., FKA TAYLOR WOODROW, INc.,
Counterclaim Defendants-Appellees,
7a
Appendix B
KELLER WILLIAms REALTY, INc., FRANK
HOWARD ALLEN REALTORs, ALAIN PINEL
REALTORs, INc., PAYmON GHAFOURI,
NATIONAL AssOcIATION OF NEW HOmE
BUILDERs, AvALONBAY cOmmUNITIEs,
INc., EssEX PROPERTY TRUsT INc.,
BRE PROPERTIEs, INc., RIvERsTONE
REsIDENTIAL GROUP, LLc, FIRsT AmERIcAN
cORPORATION, FIDELITY NATIONAL REAL
EsTATE sOLUTIONs, LLc, IHOmEFINDER, INc.,
cIs DATA sYsTEms, INc., DIvERsE sOLUTIONs,
LLc, WANIsOFT cORPORATION,
Counterclaim Defendants,
v.
REAL EsTATE ALLIANcE LTD.,
Defendant/Counterclaimant-Appellant,
EQUIAs TEcHNOLOGY DEvELOPmENT LLc,
Defendant/Counterclaimant.
Appeal from the United states District court
for the central District of california in Nos.
2:07-cv-02185-GHK AJW, 2:08-cv-01657-GHK-AJW,
Judge George H. King.
8a
Appendix B
ON PETITION FOR PANEl REHEARING
AND REHEARING EN BANC
Before prost, Chief Judge, newman, LourIe, Dyk,
Moore, O’M alley, Reyna, Wallach, Taranto,
Chen, Hughes, and Stoll, Circuit Judges.
per CurIam.
ORDER
Appellant Real Estate Alliance Ltd. filed a combined
petition for panel rehearing and rehearing en banc. The
petition was referred to the panel that heard the appeal,
and thereafter the petition for rehearing en banc was
referred to the circuit judges who are in regular active
service.
Upon consideration thereof,
It Is Ordered That:
The petition for panel rehearing is denied.
The petition for rehearing en banc is denied.
The mandate of the court will issue on April 6, 2018.
For the Court
march 30, 2018
/s/ Peter R. marksteiner
Date Peter R. marksteiner
clerk of court
9a
Appendix COF THE UNITED
APPENDIx C — OPINION
STATES COURT OF APPEAlS FOR THE
FEDERAl CIRCUIT, DaTED FEBruarY 1, 2018
UNited states coUrt oF aPPeals
For tHe Federal circUit
2017-1463
move, iNc., NatioNal associatioN
oF realtors, NatioNal associatioN
oF Home BUilders,
Plaintiffs/Counterclaim Defendants-Appellees,
re/maX iNterNatioNal, iNc., advaNced
access, Norcal Gold, iNc., dBa re/maX
Gold, iNc., Brad KorB, eNeiGHBorHoods,
llc, cHristY morrisoN, oraNGe coUNtY
mUltiPle listiNG service, iNc., dBa
soUtHerN caliForNia mls, metroPolitaN
mUlti-list, iNc., dBa GeorGia mls, iNc.,
metrolist services, iNc., delaWare
valleY real estate iNFormatioN
NetWorK, iNc., dBa treNd, raPattoNi
corPoratioN, BirdvieW.com, iNc., dBa
BirdvieW tecHNoloGies, delta media
GroUP, iNc., PUlte Homes, iNc., tHe rYlaNd
GroUP, iNc., sHea Homes, taYlor morrisoN,
iNc., FKa taYlor WoodroW, iNc.,
Counterclaim Defendants-Appellees,
10a
Appendix C
Keller Williams realtY, iNc., FraNK
HoWard alleN realtors, alaiN PiNel
realtors, iNc., PaYmoN GHaFoUri,
NatioNal associatioN oF NeW Home
BUilders, avaloNBaY commUNities,
iNc., esseX ProPertY trUst iNc.,
Bre ProPerties, iNc., riverstoNe
resideNtial GroUP, llc, First americaN
corPoratioN, FidelitY NatioNal real
estate solUtioNs, llc, iHomeFiNder, iNc.,
cis data sYstems, iNc., diverse solUtioNs,
llc, WaNisoFt corPoratioN,
Counterclaim Defendants,
v.
real estate alliaNce ltd.,
Defendant/Counterclaimant-Appellant,
eQUias tecHNoloGY develoPmeNt llc,
Defendant/Counterclaimant.
February 1, 2018, decided
appeal from the United states district court for the
central district of california in Nos. 2:07-cv-02185GHK-aJW, 2:08-cv-01657-GHK-aJW,
Judge George H. King.
11a
Appendix C
Before LourIe, wallach, and stoll, Circuit Judges.
stoll, Circuit Judge.
this appeal marks the fourth installment in a
decades-long litigation saga between the parties. real
estate alliance ltd. (“real”), owner of U.s. Patent
Nos. 5,032,989 and 4,870,576, appeals the district court’s
summary judgment holding the ’989 patent invalid
for claiming ineligible subject matter and summary
judgment holding that real waived its claims of divided
infringement for the ’989 patent. real also challenges
the district court’s judgment invalidating the ’576 patent
based on the district court’s analysis of the ’989 patent
and the parties’ representations in a Joint status report.
Because we agree that the ’989 patent claims ineligible
subject matter, we need not decide whether real waived
its claims of divided infringement. We also detect no
error in the district court’s invalidation of the ’576 patent.
Accordingly, we affirm.
BaCKGrOuND
the ’989 patent is a continuation-in-part of the ’576
patent1 and relates generally to a method of searching
for real estate properties geographically on a computer.
according to the ’989 patent, a user begins the search by
identifying a geographic region of interest for acquiring
property and then selecting an inner area within this
1. Both the ’989 and ’576 patents were filed in the 1980s and
have since expired.
12a
Appendix C
geographic region by “designat[ing] boundaries on a map
displayed on [the] screen.” ’989 patent, abstract. the
selected area is then “zoomed in on and a second area is
selected within the zoomed region.” Id. the zoom feature
permits users to “change the world coordinate display”
such that the “size of the viewport remains constant” and
the “display now appears to have zoomed down closer to
earth.” Id. at col. 2 ll. 1-4, col. 9 ll. 52-57. the resulting
“[m]ap boundary lines are displayed with greater detail,”
i.e., not just as a magnified view of the original map.
Id. at col. 2 ll. 4-10. the selected area “is then crossreferenced with the database of available properties whose
approximate locations are then pictorially displayed on
screen.” Id., abstract.
claim 1 of the ’989 patent recites this improvement:
1. a method using a computer for locating
available real estate properties comprising the
steps of:
a) creating a database of the available real
estate properties;
b) displaying a map of a desired geographic
area;
c) selecting a first area having boundaries
within the geographic area;
d) zooming in on the first area of the displayed
map to about the boundaries of the first area
13a
Appendix C
to display a higher level of detail than the
displayed map;
e) displaying the zoomed first area;
f) selecting a second area having boundaries
within the zoomed first area;
g) displaying the second area and a plurality
of points within the second area, each point
representing the appropriate geographic
location of an available real estate property; and
h) identifying available real estate properties
within the database which are located within
the second area.
Id. at col. 15 l. 33 - col. 16 l. 3.
Before we address the issues in the current appeal,
a brief overview of the litigation history is needed. this
action commenced in 2007 when Move, Inc. filed suit
against real in the U.s. district court for the central
district of california seeking a declaratory judgment that
the ’989 and ’576 patents were invalid and not infringed by
move’s websites. real subsequently sued the National
association of realtors (“Nar”), the National association
of Home Builders (“NaHB”), and a number of real
estate brokers, agents, multiple listing services, home
builders, and rental property owners and managers for
infringing the ’989 and ’576 patents. real’s complaint
asserted infringement by the move websites and by each
defendant’s own website.
14a
Appendix C
the district court entered a case management order
dividing the litigation into two phases. Phase 1 of the
litigation would resolve real’s infringement claims
against move, Nar, and NaHB regarding move’s
websites, as well as any issues relating to the validity
or enforceability of the ’989 and ’576 patents. Phase 2
would address real’s infringement claims against the
remaining defendants (“the secondary defendants”)
based on their individual websites, i.e., non-move websites,
and any liability issues if the move websites were found to
infringe in Phase 1. real’s claims against the secondary
defendants were stayed during Phase 1, and the
secondary defendants agreed to be bound by any validity,
enforceability, or claim construction determinations made
in Phase 1, as well as any finding that a Move website
infringed the ’989 or ’576 patents. the district court then
consolidated the two cases into a single docket.
Phase 1 of the litigation proceeded as contemplated
by the case management order. the district court
issued a claim construction order in 2009 addressing
claim construction disputes in both patents. Based on
the district court’s constructions, real stipulated to
noninfringement of both patents and appealed. its appeal,
however, only addressed the ’989 patent. Because the
district court erred in construing the claims of the ’989
patent, we vacated and remanded for further proceedings
consistent with our opinion. See Move, Inc. v. Real Estate
All. Ltd., 413 F. app’x 280, 282 (Fed. cir. 2011). on remand,
move sought summary judgment of noninfringement of
the ’989 patent. the district court granted move’s motion
in a 2012 opinion because it concluded that move was not
15a
Appendix C
liable for direct or joint infringement of the ’989 patent.
real appealed and the case was twice remanded to
the district court given changes in the law of divided
infringement.
this brings us to the subject of real’s current
appeal. on remand, move sought summary judgment that
real waived its divided infringement claims. Based
on real’s previous litigation positions in this case, the
district court granted move’s motion. See Move, Inc. v.
Real Estate All. Ltd., No. cv 07-2185, 2016 U.s. dist.
leXis 192672, 2016 Wl 9080238, at *2-4 (c.d. cal. apr.
25, 2016).
in a subsequent motion, move sought summary
judgment that the ’989 patent was invalid under 35 U.s.c.
§ 101. the district court granted this motion as well. Move,
Inc. v. Real Estate All. Ltd., 221 F. supp. 3d 1149 (c.d.
cal. 2016) (“Eligibility SJ Op.”) (citing Alice Corp. Pty. v.
CLS Bank Int’l, 134 s. ct. 2347, 82 l. ed. 2d 296, 189 l.
ed. 2d 296 (2014)). Under Alice step one, the court held
that the claims of the ’989 patent were directed to the
abstract idea of “collecting and organizing information
about available real estate properties and displaying this
information on a digital map that can be manipulated by
the user.” Id. at 1162. the district court determined under
Alice step two that the claims lacked an inventive concept
because nothing in the claim limitations or their ordered
combination transformed the abstract idea into a patenteligible application. Id. at 1164-65.
16a
Appendix C
real appeals. We have jurisdiction pursuant to 28
U.s.c. § 1295(a)(1).
DIsCussION
We apply the law of the regional circuit when
reviewing a district court’s grant of summary judgment.
See Synopsys, Inc. v. Mentor Graphics Corp., 839 F.3d
1138, 1146 (Fed. cir. 2016). summary judgment in the
Ninth circuit is appropriate when, after drawing all
reasonable inferences in favor of the non-moving party,
there remains no genuine issue of material fact precluding
the grant of summary judgment. See Comite de Jornaleros
de Redondo Beach v. City of Redondo Beach, 657 F.3d
936, 942 (9th cir. 2011).
I.
Patent eligibility under § 101 is a question of law
and may involve underlying questions of fact. See Mortg.
Grader, Inc. v. First Choice Loan Servs. Inc., 811 F.3d
1314, 1325 (Fed. cir. 2016). We review the district court’s
ultimate conclusion on eligibility de novo. See Intellectual
Ventures I LLC v. Capital One Fin. Corp., 850 F.3d 1332,
1338 (Fed. cir. 2017). We look to the test articulated in
Alice to determine whether a claim is eligible for patenting
under § 101. See 134 s. ct. at 2355. Pursuant to Alice’s
two-part test, we decide first “whether the claims at issue
are directed to” a patent-ineligible concept, namely a law
of nature, natural phenomenon, or abstract idea. Id. at
2354-55. if the answer is yes, we then consider the claim
elements, both individually and as an ordered combination,
17a
Appendix C
to determine whether they contain an “inventive concept”
sufficient to “’transform the nature of the claim’ into a
patent-eligible application.” Id. at 2355 (quoting Mayo
Collaborative Servs. v. Prometheus Labs., Inc., 566 U.s.
66, 72-73, 78, 132 s. ct. 1289, 182 l. ed. 2d 321 (2012)).
A.
Under Alice step one, we agree with the district court
that claim 1 of the ’989 patent 2 is directed to the abstract
idea of “a method for collecting and organizing information
about available real estate properties and displaying this
information on a digital map that can be manipulated by
the user.” Eligibility SJ Op., 221 F. supp. 3d at 1162. the
step-one analysis requires us to consider the claims “in
their entirety to ascertain whether their character as a
whole is directed to excluded subject matter.” Internet
Patents Corp. v. Active Network, Inc., 790 F.3d 1343,
1346 (Fed. cir. 2015). claim 1 is aspirational in nature
and devoid of any implementation details or technical
description that would permit us to conclude that the
claim as a whole is directed to something other than the
abstract idea identified by the district court.
While we do not suggest that every claim involving
the collection, organization, manipulation, or display of
data is necessarily directed to an abstract idea, claim 1 is
not meaningfully distinct from claims we have held were
directed to abstract ideas in previous cases. the claims in
2. real does not argue the patentability of the dependent
claims separately. accordingly, we treat claim 1, the only independent
claim, as representative for purposes of this appeal.
18a
Appendix C
Electric Power Group, LLC v. Alstom S.A., for example,
recited a method for detecting events on an interconnected
electric power grid by collecting information from various
sources, analyzing this information to detect events
in real time, and displaying the event analysis results
and diagnoses. 830 F.3d 1350, 1351-52 (Fed. cir. 2016).
We concluded that the focus of these claims was on the
abstract idea of “collecting information, analyzing it, and
displaying certain results of the collection and analysis.”
Id. at 1353. claim 1 of the ’989 patent involves the same
general steps of collecting, organizing, and presenting
information.
We reached a similar result in Intellectual Ventures
I LLC, where the claims recited systems and methods
for preserving compatibility between Xml documents
after they had been edited by different users. 850 F.3d at
1339-40. according to the claims at issue in that case, a
“dynamic document” containing data extracted from the
original Xml document would be created, users could
edit the data displayed in the dynamic document, and the
changes would then be “dynamically propagated” back into
the original Xml document. Id. at 1339. We concluded that
these claims were, “at their core, directed to the abstract
idea of collecting, displaying, and manipulating data.” Id.
at 1341; see also Content Extraction & Transmission LLC
v. Wells Fargo Bank, Nat’l Ass’n, 776 F.3d 1343, 1345,
1347 (Fed. cir. 2014) (concluding that claims covering a
method for using a scanner to extract data from hard copy
documents, recognizing specific information within the
extracted data, and storing that information in memory
were “drawn to the abstract idea of 1) collecting data, 2)
19a
Appendix C
recognizing certain data within the collected data set,
and 3) storing that recognized data in a memory”). Based
on these binding precedents, we conclude that claim 1 is
directed to an abstract idea.
our conclusion on Alice step one is further supported
by the similarities between the ’989 patent claims and
other claims that “simply use computers to serve a
conventional business purpose.” Affinity Labs of Tex., LLC
v. DIRECTV, LLC, 838 F.3d 1253, 1261 (Fed. cir. 2016);
see Alice, 134 s. ct. at 2356 (concluding that concept of
intermediated settlement was “a fundamental economic
practice long prevalent in our system of commerce” and
thus an abstract idea). in Affinity Labs, for example, the
claims covered a system for streaming regional broadcast
signals to cell phones located outside the region. although
the claims required a network, storage medium, and the
transmission and receipt of signals, we concluded that the
claims were directed to the abstract idea of “providing
out-of-region access to regional broadcast content.” Id.
at 1258 (explaining that the claims were not “directed to
how to implement out-of-region broadcasting on a cellular
telephone” and claimed the function itself instead of a
particular way to perform the function).
claim 1 of the ’989 patent is no different. it broadly
recites the commercial practice of “using a computer for
locating available real estate properties.” ’989 patent
col. 15 ll. 33-34; see id., abstract (describing patent as
“a method for locating available real estate properties
for sale”). While the claim limitations provide steps for
using the computer to perform the search, they contain
20a
Appendix C
no technical details or explanation of how to implement
the claimed abstract idea using the computer. absent
such a disclosure, we cannot conclude that claim 1
covers anything more than the use of a computer for a
conventional business purpose. See Affinity Labs, 838
F.3d at 1261.
real attempts to distinguish its claims from those in
Alice and its progeny by contending that the district court
over-generalized the claim limitations. real focuses
on two particular limitations as reciting technological
advances: (1) creation of a database of the available
real estate properties; and (2) zooming in on a selected
geographic area. For support, real relies on testimony
from its expert that databases at the time of the invention
could not be queried graphically and that zooming on a
computer-displayed map to depict a higher level of detail
was neither routine nor conventional. See appellant Br.
11-12 (citing J.a. 233, ¶¶ 11-12).
setting aside the conclusory nature of real’s expert
declaration, the focus of claim 1 is not on any technological
advancement but rather on the performance of an abstract
idea “for which computers are invoked merely as a tool.”
See Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1336
(Fed. cir. 2016). instead of focusing on the technical
implementation details of the zooming functionality, for
example, claim 1 recites nothing more than the result
of the zoom. such claims are drawn to an abstract idea
because they “claim[] the function of [the abstract idea],
not a particular way of performing that function.” Affinity
Labs, 838 F.3d at 1258 (“there is nothing in claim 1 that is
21a
Appendix C
directed to how to implement [the abstract idea]. rather,
the claim is drawn to the idea itself.”).
claim 1 is also distinguishable from the patenteligible claims in cases such as Enfish and Visual Memory
LLC v. NVIDIA Corp., 867 F.3d 1253 (Fed. cir. 2017).
in those cases, the claims focused “on an improvement
to computer functionality itself, not on economic or
other tasks for which a computer is used in its ordinary
capacity.” Enfish, 822 F.3d at 1336 (concluding claims were
directed to a specific, improved type of self-referential
table for storing tabular data); see Visual Memory,
867 F.3d at 1259 (determining claims were directed to
improved computer memory system with programmable
operational characteristics). We also emphasized the
specifications’ disclosures regarding the improvements
in computer functionality brought about by the claimed
inventions. See Enfish, 822 F.3d 1333 (recognizing the
claimed invention’s enhanced flexibility in configuring
the database, streamlined indexing technique, and more
effective data storage); Visual Memory, 867 F.3d at
1259 (acknowledging that the claimed programmable
operational characteristic enabled a memory system to be
interoperable with multiple different processors and could
outperform prior art memory systems with larger caches).
the same cannot be said here. claim 1 focuses not
on a technological improvement, but rather on a method
of searching for real estate using a computer. See ’989
patent col. 15 l. 35 - col. 16 l. 3 (reciting steps of creating
a property database, displaying a geographic region on a
map, iterative zooming to focus on a desired geographic
22a
Appendix C
region, and identifying properties within the database that
fall within the selected geographic region). While the ideas
of storing available real estate properties in a database
and selecting and displaying a particular geographic area
may well be improvements in the identification of available
real estate properties, there is no evidence that these
ideas are technological improvements. indeed, real
has not cited any convincing evidence in the specification
that the claimed invention improves the functioning of the
computer itself.
B.
Under the second step of the Alice analysis, we
examine the claim limitations “more microscopically,”
Electric Power, 830 F.3d at 1354, to determine whether
they contain “additional features” constituting an
“inventive concept,” Alice, 134 s. ct. at 2357. “this
requires more than simply stating an abstract idea while
adding the words ‘apply it’ or ‘apply it with a computer.’”
Versata Dev. Grp., Inc. v. SAP Am., Inc., 793 F.3d 1306,
1332 (Fed. cir. 2015) (quoting Alice, 134 s. ct. at 2358).
our analysis uncovers no inventive concept in the
individual claim limitations or their ordered combination.
claim 1 recites only generic computer components and
features: a “computer” and the creation of a “database.”
’989 patent col. 15 ll. 33-37. But claims directed to an
abstract idea that “merely require generic computer
implementation[] fail to transform that abstract idea into
a patent-eligible invention.” Alice, 134 s. ct. at 2357. the
specification confirms this conclusion by explaining that
23a
Appendix C
“the present invention may be implemented on an iBm
or compatible personal computer system.” ’989 patent col.
15 ll. 12-14.
real’s counterargument that the claimed zoom
feature supplies the inventive concept is not persuasive
for reasons similar to those we articulated under Alice
step one. 3 For support, real again relies on its expert’s
conclusory declaration:
it wa s considered neit her rout i ne nor
conventional in the mid-1980s for a computerdisplayed map to be able to zoom to display a
higher level of detail in the sense of displaying
information that wasn’t present at the lower
level of detail at all, and this zooming step
cannot be performed by a human.
J.a. 233, ¶ 12. the declaration provides no citations to
support this assertion and contains no additional rationale.
this bald assertion does not satisfy the inventive
concept requirement. Where “[t]he claim language does
not provide any specific showing of what is inventive about
the [limitation in question] or about the technology used
3. real also contends that the “nature of the database” and
“display of appropriate property locations on the map” provide the
“something more,” but it never develops these arguments. appellant
Br. 17. real analogizes its claimed database to Enfish’s data tables
without any supporting analysis and fails to explain how the display
of appropriate property locations is an inventive concept. Neither
argument is compelling.
24a
Appendix C
to generate and process it,” we have concluded that the
claims do not satisfy Alice’s second step. Secured Mail
Sols. LLC v. Universal Wilde, Inc., 873 F.3d 905, 912
(Fed. cir. 2017); see also Affinity Labs, 838 F.3d at 1263
(concluding that claims were ineligible under Alice step
two where the allegedly inventive concept was not the
“essential advance,” was only described functionally, and
where there was “no further specification of a particular
technology for” accomplishing the allegedly inventive
concept). Further, the claim language does not explain
what is inventive about the zoom feature or explain how
it is accomplished. real also has not pointed us to any
portion of the specification that fills this gap. Indeed,
the specification’s teaching that the invention can be
performed using a generic “iBm or compatible personal
computer system,” ’989 patent col. 15 ll. 12-14, and the
failure to provide any implementation details for the
zoom feature suggests that the zoom feature utilizes only
existing computer capabilities. this leads us to conclude
that the claimed zoom feature is nothing more than an
instruction to apply an abstract idea using a computer.
See Versata, 793 F.3d at 1332; see also Alice, 134 s. ct. at
2358 (“[i]f a patent’s recitation of a computer amounts to a
mere instruction to ‘implemen[t]’ an abstract idea ‘on . . . a
computer,’ that addition cannot impart patent eligibility.”
(quoting Mayo, 566 U.s. at 84) (internal citations omitted)).
our conclusion regarding the ’989 patent’s eligibility
renders moot the issue of divided infringement because
a party cannot be liable for infringing an invalid patent.
See Commil USA, LLC v. Cisco Sys., Inc., 135 s. ct. 1920,
1929, 191 l. ed. 2d 883 (2015).
25a
Appendix C
II.
real also alleges that the district court erred by
invalidating the ’576 patent sua sponte without giving
the parties notice or a reasonable time to respond. our
review of the record reveals instead that real expressly
conceded the invalidity of the ’576 patent. We see no error
by the district court under these unique circumstances.
at the conclusion of its summary judgment opinion
invalidating the ’989 patent under § 101, the district court
issued an order, questioning the validity of the related ’576
patent and soliciting input from all parties in Phase 1 and
Phase 2 of the litigation:
While the parties have not squarely addressed
the question whether the ’576 Patent is invalid
under 35 U.s.c. § 101, it appears—though we do
not decide—that our ruling with respect to the
’989 Patent may invalidate the ’576 Patent as
well. accordingly, all parties—including those
identified as Secondary Defendants in our
september 25, 2015 case management order
(doc. 125)—SHAll file a joint status report
within fourteen days hereof, stating their views
on whether this order effectively resolves this
action as to all parties and whether judgment
should be entered accordingly.
Eligibility SJ Op., 221 F. supp. 3d at 1174 (italic emphases
added). the district court’s order placed the ’576 patent’s
validity at issue and required the parties to identify any
outstanding issues in the litigation.
26a
Appendix C
in response, all the parties to the litigation, including
the Secondary Defendants, filed a Joint Status Report.
the parties’ Joint status report indicated that the district
court’s eligibility and waiver opinions resolved all issues
in the case with respect to all parties:
[t]he Parties are all in agreement that the
court’s order [invalidating the ’989 patent], in
addition to its order of april 25, 2016 holding
that real has waived its right to proceed on
a theory of divided direct infringement under
§ 271(a), effectively resolves all issues to this
action, including all issues related to REAL’s
claims against the Secondary Defendants
. . . . accordingly, the Parties jointly request that
the court enter Judgment of Non-infringement
and invalidity in favor of Plaintiffs move, inc.,
National association of realtors, National
association of Homebuilders, and all Secondary
Defendants.
J.a. 930 (emphases added). relying on the parties’
representation that its orders had “resolve[d] all issues
in this case,” the district court “adjudged that Plaintiffs
and secondary defendants are entitled to judgment that
the ’576 Patent and the ’989 Patent are invalid and not
infringed.” J.a. 2.
the only fair reading of the Joint status report is
that no issues remained in the case. the district court
made its view clear: the ruling invalidating the ’989 patent
“appear[ed]” to invalidate the ’576 patent and might have
27a
Appendix C
resolved the litigation in its entirety. Eligibility SJ Op.,
221 F. supp. 3d at 1174. When asked to respond, real
not only declined to make any arguments to support
the validity of the ’576 patent, but went even further by
agreeing that the district court’s rulings had resolved
“all issues,” including those “relat[ing] to real’s claims
against the secondary defendants.” J.a. 930. thus, real
conceded the invalidity of the ’576 patent.
real’s attempt to rationalize its concession lacks
merit. according to real, the phrase “this action” in the
district court’s directive to identify “whether this order
effectively resolves this action as to all parties,” Eligibility
SJ Op., 221 F. supp. 3d at 1174, only referred to Phase 1
of the litigation, not Phase 2. therefore, real claims, its
allegations of infringement of the ’576 patent against the
secondary defendants in Phase 2 of the litigation were
not affected by the Joint status report.
We disagree. as an initial matter, the district court
consolidated the cases giving rise to Phase 1 and Phase
2 of the litigation, meaning both phases were part of the
same case or “action.” By referring to “this action,” the
district court was referring to both Phase 1 and Phase 2.
the district court’s directive also sought input from the
secondary defendants—parties who were not litigating
the issues in Phase 1—which should have served as
another indicator that the parties needed to identify any
outstanding issues in either phase of the litigation. the
validity of the ’576 patent was one potential issue that
remained in both phases, yet real never raised it. When
read in context, we do not agree with real that the
28a
Appendix C
district court’s directive seeking input from the parties in
both phases regarding a patent that was at issue in both
phases nonetheless referred only to Phase 1. therefore,
we conclude that real has conceded the invalidity of
the ’576 patent.
CONClusION
We have considered real’s remaining arguments
and find them unpersuasive. The district court did not err
in holding the claims of the ’989 patent ineligible under
§ 101. Because there can be no liability for infringing an
invalid patent, we do not reach the issue of waiver for
real’s divided infringement claims. We also detect no
error in the district court’s judgment invalidating the ’576
patent. We affirm.
AFFIRmED
29a
Appendix D OF tHE uNItED
APPENDIx D — JUDGmENT
StatES DISTRICT COURT FOR THE CENTRAl
DISTRICT OF CAlIFORNIA, FIlED
DECEmBER 16, 2016
UNited states district coUrt
For tHe ceNtral district oF caliForNia
case No. cv 07-cv-02185-GHK (aJWx)
move, iNc., et al.,
Plaintiffs,
v.
real estate alliaNce, ltd., et al.,
Defendants.
JUDGmENT
on January 12, 2009, Plaintiffs move, inc., National
association of realtors, and National association of
Homebuilders (“move”) filed their second amended
complaint, seeking a declaratory judgment that U.s.
Patents No. 4,870,576 (the “’576 Patent”) and U.s.
Patent No. 5,032,989 (the “’989 Patent”) are invalid,
unenforceable, and not infringed. doc. 198. defendant
Real Estate Alliance, Ltd. (“REAL”) filed counterclaims
for patent infringment against move and a number of
other entities (“secondary defendants”).
30a
Appendix D
on January 26, 2012, we granted summary judgment
for move on the issue of direct infringement. doc. 493.
The Federal Circuit affirmed this ruling on June 20,
2013. doc. 511. on april 25, 2016, we held that real
had waived any allegation that move committed divided
direct infringement. doc. 563. on december 1, 2016, we
held that the ’989 Patent was invalid under 35 U.s.c. § 101.
doc. 563. the parties are in agreement that these there
orders resolve all issues in this case. doc. 579.
accordingly, it is hereby adjudged that Plaintiffs
and secondary defendants are entitled to judgment that
the ’576 Patent and the ’989 Patent are invalid and not
infringed.
IT IS SO ORDERED.
dated: december 16, 2016
GeorGe H. KiNG
United states district Judge
31a
Appendix
E REPORT IN THE
APPENDIx E — JOINT
STaTUS
UNITED STaTES DISTRICT COURT, CENTRal
DISTRICT OF CalIFORNIa, WESTERN
DIVISION, FIlED DECEmBER 15, 2016
UNited states district coUrt
ceNtral district oF caliForNia
WesterN divisioN
case No. 2:07-cv-02185-GHK-(aJWx)
move, iNc., et al.,
Plaintiffs,
v.
real estate alliaNce ltd., et al.,
Defendants.
real estate alliaNce ltd.,
Counterclaim-Plaintiff,
v.
move, iNc., et al.,
Counterclaim-Defendants.
JOINT STaTUS REPORT
Pursuant to this court’s december 1, 2016 order (the
“order”), all of the undersigned parties to this litigation,
including the undersigned secondary defendants 1
1. attempts were made to contact counsel of record for
Secondary Defendants Keller Williams Realty, Inc., iHomefinder,
32a
Appendix E
(the “Parties”), jointly submit this Joint status report
addressing (i) whether the court’s order effectively
resolves this action as to all parties and (ii) whether
judgment should be entered accordingly. after meeting
and conferring on the issue, the Parties are all in
agreement that the court’s order, in addition to its order
of april 25, 2016 holding that real has waived its right
to proceed on a theory of divided direct infringement
under § 271(a), effectively resolves all issues to this action,
including all issues related to real’s claims against the
secondary defendants. For its part, real, despite its
belief that the court’s orders are factually and legally
incorrect, agrees that in order for it to pursue its fourth
appeal to the court of appeals for the Federal circuit,
it should join with the other parties in this report.
accordingly, the Parties jointly request that the court
enter Judgment of Non-infringement and invalidity in
favor of Plaintiffs move, inc., National association of
realtors, National association of Homebuilders, and all
secondary defendants.
dated: december 15, 2016
Inc. and Trend Software, Inc. in connection with this filing but were
unsuccessful. counsel for cis data approved an earlier version
of this report that did not include the sentence beginning “For
its part, real….” although attempts were made to contact cis
Data’s Counsel with respect to the final version, those attempts
were unsuccessful. No counsel representing secondary defendants
Paymon Ghafouri or Wanisoft corp. could be located.
33a
Appendix E
respectfully submitted,
/s/ laura W. Brill
laura W. Brill
lbrill@kbkfirm.com
KeNdall Brill & KellY llP
10100 santa monica Blvd.
suite 1725
los angeles, ca 90067
telephone: (310) 556-2700
Facsimile: (310) 556-2705
Counsel for Defendant
Real Estate Alliance, Ltd.
/s/ lawrence a. Husick
lawrence a. Husick (pro hac vice)
lawrence@lawhusick.com
liPtoN, WeiNBerGer
& HUsicK
P.o. Box 587
southeastern, Pa 19399-0587
telephone: (610) 296-8259
Facsimile: (610) 296-5816
Counsel for Defendant
Real Estate Alliance, Ltd.
and Equias Technology
Development LLC
34a
Appendix E
/s/ Frank G. smith
Frank G. smith (pro hac vice)
frank.smith@alston.com
Wesley c. achey (pro hac vice)
wesley.achey@alston.com
alstoN & Bird llP
1201 West Peachtree street
atlanta, Ga 30309-3424
telephone: (404) 881-7000
Facsimile: (404) 881-7777
/s/ robin mcGrath
robin l. mcGrath (pro hac vice)
robinmcgrath@paulhastings.com
PaUl HastiNGs llP
1170 Peachtree street, Ne, suite 100
atlanta, Ga 30309
telephone: (404) 815-2220
Facsimile: (404) 685-5220
Counsel for Plaintiffs
Move, Inc., National
Association of Realtors, and
National Association of Home
Builders
35a
Appendix E
/s/ Henrik d. Parker
Henrik d. Parker (sBN 117119)
hparker@bakerlaw.com
steven J. rocci
srocci@bakerlaw.com
BaKer & Hostetler, llP
cira centre, 12th Floor
2929 arch street
Philadelphia, Pa 19104-2891
telephone: (215) 564-8911
Facsimile: (215) 568-3439
Counsel for Counterclaim
Defendants Brad Korb,
Christy Morrison, Orange
County Multiple Listing
Services, Inc. d/b/a Southern
California MLS, Advanced
Access, eNeighborhoods, and
RE/MAX International, Inc.
36a
Appendix E
/s/ Jeffrey B. Bove
Jeffrey B. Bove (pro hac vice)
jbove@ratnerprestia.com
ratnerPrestia
1007 orange street, suite 205
Wilmington, de 19801
telephone: (302) 778-2500
Facsimile: (302) 778-2600
Counsel for (Secondary)
Counterclaim Defendants Norcal
Gold, Inc., Georgia MLS, Inc.,
Delta Media Group, Inc.,
Metrolist Services, Inc., Delaware
Valley Real Estate Information
Network, Inc., Rapattoni Corp.,
and Birdview.com, Inc.
37a
Appendix E
/s/ Bruce G. chapman
Bruce G. chapman
(state Bar 164258)
bchapman@sheppardmullin.com
sHePPard mUlliN
ricHter & HamPtoN llP
333 s. Hope st., 43rd Floor
los angeles, ca 90071
telephone: (213) 620-1780
Facsimile: (213) 443-2816
Counsel for (Secondary)
Counterclaim Defendants Norcal
Gold, Inc., Georgia MLS, Inc.,
Delta Media Group, Inc.,
Metrolist Services, Inc., Delaware
Valley Real Estate Information
Network, Inc., Rapattoni Corp.,
and Birdview.com, Inc.
/s/ robert J. miller
robert J. muller
bob@cypressllp.com
cypress llP
11111 santa monica Blvd., suite 500
los angeles, ca 90025
telephone: 424-901-0150
Facsimile: 424-750-5100
Counsel for Counterclaim Defendant
Fidelity National Real Estate
Solutions, LLC
38a
Appendix E
/s/ Breton a. Bocchieri
Breton a. Bocchieri (sBN 119459)
BBocchieri@robinsKaplan.com
roBiNs KaPlaN llP
2049 century Park east, suite 3400
los angeles, ca 90067
telephone: 310-229-5461
Facsimile: 310-229-5800
Counsel for Counterclaim Defendant
Alain Pinel Realtors, Inc.
/s/ darius c. Gambino
darius c. Gambino (pro hac vice)
darius.gambino@dlapiper.com
dla PiPer llP (Us)
one liberty Place
1650 market street, suite 4900
Philadelphia, Pa 19103
P: (215) 656-3309
F: (215) 656-3301
Counsel for (Secondary)
Counterclaim-Defendants Pulte
Homes, Inc., The Ryland Group,
Inc. (now CalAtlantic Group,
Inc.), Shea Homes Limited
Partnership, and Taylor
Morrison, Inc. f/k/a Taylor
Woodrow, Inc.
39a
Appendix E
/s/ douglas G. muehlhauser
douglas G. muehlhauser
doug.muehlhauser@knobbe.com
KNoBBe, marteNs, olsoN
& Bear llP
2040 main st., 14th Floor
irvine, ca 92614
telephone: (949) 760-0404
Facsimile: (949) 760-9502
Counsel for Counterclaim Defendant
The First American Corporation
/s/ ron m. cordova
ron m. cordova
attorney at law
roncordova@roncordovalaw.com
16520 Bake Parkway, suite 280
irvine, ca 92618
telephone: 949-748-3600
Facsimile: 949-759-0186
Counsel for Diverse Solutions, LLC
40a
Appendix E
/s/ darren m. Franklin
darren m. Franklin
dFranklin@sheppardmullin.com
sHePPard, mUlliN, ricHter
& HamPtoN llP
333 south Hope street
Forty-eighth Floor
los angeles, ca 90071
telephone: 213-617-5498
Facsimile: 213-620-1398
Counsel for Counterclaim
Defendants BRE Properties, Inc.,
Essex Property Trust, Inc., and
Riverstone Residential Group
LLC
/s/ albert e. cordova
albert e. cordova (sBN 74283)
albert@aec-law.com
1101 5th avenue, suite 200
san rafael, ca 94901
telephone: (415) 457-9656
Facsimile: (415) 453-6260
Counsel for Counterclaim Defendant
Frank Howard Allen Realtors,
Inc.
41a
Appendix E
/s/ Brent d. sokol
Brent d. sokol (sBN 167537)
bdsokol@jonesday.com
JoNes daY
555 south Flower street, 50th Floor
los angeles, ca 90071
telephone: (213) 243-2396
Facsimile: (213) 243-2539
Counsel for Counterclaim Defendant
Avalonbay Communities, Inc.
42a
Appendix
F
APPENDIx F — CIVIl
mINUTES
– GENERAl
Of tHE UNITED STATES DISTRICT COURT
CENTRAl DISTRICT OF CAlIFORNIA, FIlED
DECEmBER 1, 2016
UNited states district coUrt
ceNtral district oF caliForNia
case No. cv 07-cv-02185-GHK (aJWx)
move, inc., et al.,
v.
real estate alliance ltd., et al.
date december 1, 2016
CIVIl mINUTES – GENERAl
Presiding: The Honorable GEORGE H. KING, U.S.
DISTRICT JUDGE
Paul songco
deputy clerk
N/a
N/a
court reporter/
tape No.
recorder
attorneys Present for
attorneys Present for
Plaintiffs:
defendants:
None
None
Proceedings: (In Chambers) Order re: Plaintiffs’
7/15/2016 motion for summary Judgment (doc. 572),
Plaintiffs’ 10/18/2011 motion for summary Judgment
43a
Appendix F
(doc. 475), and defendants’ 10/18/2011 motion for
summary Judgment (doc. 474)
in about four months, this case will be ten years old.
Because life is short and this case has already taken up too
much of it, we are doing our best to move this case forward.
on may 16, 2016, we agreed to resolve all outstanding
summary judgment issues, even though these issues will
be rendered moot if our april 25, 2016 order on divided
direct infringement is affirmed on appeal. Resolving these
issues now is the most expeditious manner of proceeding
because it will allow for a single appeal to the Federal
circuit. We have considered the parties’ joint brief on
Plaintiffs’ July 15, 2016 motion for summary Judgment
(doc. 572), the joint brief on the december 12, 2011
summary Judgment motions (doc. 476), and the portions
of the record cited by the parties. We deem this matter
appropriate for resolution without oral argument. l.r.
7-15. accordingly, we rule as follows:
I.
Background
on July 16, 1991, defendant real estate alliance
ltd. (“real”) was awarded U.s. Patent No. 5,032,989
(the “‘989 Patent”) for an invention by mark a. tornetta
(“inventor tornetta” or “tornetta”). the ‘989 Patent is a
continuation-in-part patent of U.s. Patent No. 4,870,576
(the “‘576 Patent”), also invented by tornetta and also
assigned to REAL. The ‘576 Patent has an effective filing
date of march 19, 1986; the ‘989 Patent has an effective
filing date of April 24, 1989. Both patents have expired.
44a
Appendix F
according to its abstract, the ‘989 Patent describes
“a method for locating available real estate properties
for sale, lease or rental using a database of available
properties at a central location and remote stations which
use a graphic interface to select desired regions on a
map of the areas of interest.” doc. 575-1 at 2. the ‘989
Patent contains a single independent claim, and eleven
dependent claims. Id. at 23. the sole independent claim,
claim 1, recites:
a method using a computer for locating available real
estate properties comprising the steps of:
creating a database of the available real estate
properties;
displaying a map of a desired geographic area;
selecting a first area having boundaries within
the geographic area;
zooming in on the first area of the displayed
map to about the boundaries of the first area
to display a higher level of detail than the
displayed map;
displaying the zoomed first area;
selecting a second area having boundaries
within the zoomed first area;
displaying the second area and a plurality
45a
Appendix F
of points within the second area, each point
representing the appropriate geographic
location of an available real estate property; and
identifying available real estate properties
within the database which are located within
the second area.
Id. at 23.
on april 3, 2007, Plaintiffs move, inc., National
association of realtors, and National association of Home
Builders (collectively, “Move”) filed this action seeking a
declaratory judgment that the ‘576 Patent and the ‘989
Patent are invalid, unenforceable, and not infringed. doc.
1. On January 12, 2009, Move filed its second amended
complaint. Doc. 198. REAL filed an answer and asserted
a counterclaim for patent infringement. doc. 210. move
responded and asserted several affirmative defenses.
doc. 221.
on November 25, 2009, we entered our claim
construction order. Doc. 419. After stipulating to a finding
of non-infringement based on our construction (doc. 426),
real appealed to the Federal circuit, which reversed
on some points. doc. 450 (published at Move, Inc. v. Real
Estate All. Ltd., 413 F. app’x 280 (Fed. cir. 2011)).
On October 18, 2011, the parties filed cross-motions
for summary judgment. docs. 474, 475. move sought
summary judgment on all infringement claims, arguing
that “move did not perform all steps of the claimed method
46a
Appendix F
and exercised neither direction nor control over users who
may have performed those steps so as to render it liable
for joint infringement.” doc. 476 at 32. We agreed, and
granted summary judgment for move. doc. 493.
real appealed. doc. 501. the Federal circuit
affirmed our conclusion that Move could not be liable
for direct infringement, but remanded for us to consider
whether move might be liable for induced infringement.
doc. 511 (published at Move, Inc. v. Real Estate All. Ltd.,
709 F.3d 1117 (Fed. cir. 2013)). thereafter, the supreme
court decided Limelight Networks, Inc. v. Akamai Techs.,
Inc., 134 s. ct. 2111 (2014), holding that a party could not
be liable for inducing infringement if no party directly
infringed the patent. Id. at 2115. We concluded that this
decision totally undermined the Federal circuit’s prior
mandate, and reinstated our entry of summary judgment.
doc. 522. real appealed again. doc. 529. the Federal
Circuit summarily affirmed. Doc. 536. REAL petitioned
for rehearing, and the Federal circuit granted this
petition, vacated its prior affirmance, and remanded the
matter to us for further consideration in light of Akamai
Techs., Inc. v. Limelight Networks, Inc., 797 F.3d 1020
(Fed. cir. 2015) (en banc). doc. 537 at 3. in doing so, the
Federal circuit expressed “no opinion on the question of
whether [real] has waived any allegations of divided
infringement.” Id.
on april 25, 2016, we held that real had waived the
divided direct infringement argument, and reinstated
our grant of summary judgment in favor of move. doc.
563. We asked the parties to submit a Joint status
47a
Appendix F
report, which they did. doc. 564. Based on this report,
we concluded that “resolution of the remaining summary
judgment issues would be the most expeditious manner
of proceeding.” doc. 565. We also agreed with move that
“resolution of any issues related to Alice Corp. Pty. Ltd.
v. CLS Bank International, 134 s. ct. 2347 (2014)” would
also be prudent. Id. We asked the parties to file a joint
brief on the Alice issues, and stated that we would resolve
the remaining summary judgment issues on the original
briefing. Id. On July 15, 2016, the parties filed their joint
brief on Alice, and move sought summary adjudication
that the ‘989 Patent is invalid under 35 U.s.c. § 101. docs.
572, 573.
II. legal Standard
We may grant summary judgment only “if the movant
shows that there is no genuine dispute as to any material
fact and the movant is entitled to judgment as a matter of
law.” Fed. r. civ. P. 56(a). “only disputes over facts that
might affect the outcome of the suit under the governing
law w ill properly preclude the entry of summary
judgment.” Anderson v. Liberty Lobby, Inc., 477 U.s.
242, 248 (1986). on a motion for summary judgment, the
district court’s “function is not . . . to weigh the evidence
and determine the truth of the matter but to determine
whether there is a genuine issue for trial.” id. at 249. the
moving party bears the initial responsibility to point
to the absence of any genuine issue of material fact.
Celotex Corp. v. Catrett, 477 U.s. 317, 323 (1986). Where
the nonmoving party has the burden of proof at trial,
the moving party can carry its initial burden either by
48a
Appendix F
submitting affirmative evidence that there is not a triable,
factual dispute or by demonstrating that the nonmoving
party “fail[ed] to make a showing sufficient to establish
the existence of an element essential to that party’s case.”
Id. at 322. the burden then shifts to the nonmoving party
“to designate specific facts demonstrating the existence
of genuine issues for trial.” In re Oracle Corp. Sec. Litig.,
627 F.3d 376, 387 (9th cir. 2010) (citing Celotex Corp., 477
U.s. at 324). this means that the evidence is such that “a
jury could reasonably render a verdict in the non-moving
party’s favor.” Id. (citing Anderson, 477 U.s. at 252).
“the evidence of the non-movant is to be believed, and
all justifiable inferences are to be drawn in his favor.”
Anderson, 477 U.s. at 255. “When the party moving for
summary judgment would bear the burden of proof at trial,
it must come forward with evidence which would entitle it
to a directed verdict if the evidence went uncontroverted
at trial.” Miller v. Glenn Miller Prods., Inc., 454 F.3d 975,
987 (9th cir. 2006) (internal quotation marks omitted). if
the moving party meets its initial burden of demonstrating
that summary judgment is proper, “the nonmoving party
must come forward with specific facts showing there is
a genuine issue for trial.” Matsushita Elec. Indus. Co. v.
Zenith Radio Corp., 475 U.s. 574, 587 (1986) (emphasis
deleted; internal quotation marks omitted).
in ruling on a motion for summary judgment, we apply
the “substantive evidentiary standard of proof that would
apply at the trial on the merits.” Anderson, 477 U.s. at 252.
Patents are “presumed valid,” 35 U.s.c. § 282(a), and this
presumption can be overcome only by clear and convincing
evidence. Eli Lilly & Co. v. Barr Labs., Inc., 251 F.3d 955,
49a
Appendix F
962 (Fed. cir. 2001). “thus, a moving party seeking to
invalidate a patent at summary judgment must submit
such clear and convincing evidence of invalidity so that no
reasonable jury could find otherwise.” Id. “alternatively, a
moving party seeking to have a patent held not invalid at
summary judgment must show that the nonmoving party,
who bears the burden of proof at trial, failed to produce
clear and convincing evidence on an essential element of
a defense upon which a reasonable jury could invalidate
the patent.” Id.
III. Plaintiffs’ July 15, 2016 motion
A.
Waiver
move seeks summary adjudication that the ‘989
Patent is invalid under 35 U.s.c. § 101 because it
impermissibly seeks to patent an abstract idea. doc.
572. as a preliminary matter, we must consider whether
move waived this argument. We set forth the standard
for waiver in our april 25, 2016 order:
Waiver is the intentional relinquishment of a
known right with knowledge of its existence and
the intent to relinquish it.” CBS, Inc. v. Merrick,
716 F.2d 1292, 1295 (9th cir. 1983); see also
United States v. Olano, 507 U.s. 725, 733 (1993)
(“[W]aiver is the ‘intentional relinquishment or
abandonment of a known right.’”). Waiver can
be express or implied. Mooney v. City of N.Y.,
219 F.3d 123, 131 (2d cir. 2000) (“[a] waiver
need not be express, but may be inferred
50a
Appendix F
from the conduct of the parties.”). “an implied
waiver of rights will be found where there is
‘clear, decisive and unequivocal’ conduct which
indicates a purpose to waive the legal rights
involved.” United States v. Amwest Sur. Ins. Co.,
54 F.3d 601, 602-03 (9th cir. 1995). the party
asserting waiver “bears [a] weighty burden of
establishing that a ‘clear and unmistakable’
waiver has occurred.” N.L.R.B. v. N.Y. Tel. Co.,
930 F.2d 1009, 1011 (2d cir. 1991).
doc. 563 at 3 (“april 25 order”).
real argues that waiver occurred here because
(1) move’s second amended complaint (“sac”) did not
plausibly allege invalidity under § 101; (2) Move did not file
a motion for summary judgment on the § 101 issue before
the January 18, 2010 deadline for dispositive motions
set forth in the court’s February 11, 2009 scheduling
order; (3) move did not raise the argument in response
to real’s motion for summary judgment; and (4) move
never raised the argument before the Federal circuit.
doc. 573 at 34–35.
We do not find these arguments persuasive. As to
REAL’s first argument, the SAC alleged that “the ‘989
patent (and each and every claim thereof) is invalid for
failure to comply with the provisions of one or more
sections of the Patent act, 35 U.s.c. §§ 1, et seq.” doc.
198, ¶ 79. this allegation encompasses the argument
that the ‘989 Patent is invalid under § 101. thus, real
was on notice that move might assert this argument. Cf.
51a
Appendix F
Pfizer Inc. v. Apotex Inc., 726 F. supp. 2d 921, 937–38
(N.d. ill. 2010) (allegation that counter-defendant’s
patents were “invalid for failure to comply with one or
more of the conditions of patentability set forth in title
35 of the United states code” was “sufficient to put
[counter-defendant] on notice of what [counterclaimant]
is claiming”). While move’s allegation might not satisfy
the heightened pleading standard set forth in Ashcroft
v. Iqbal, 556 U.s. 662 (2009), the sac predates Iqbal by
approximately four months. We cannot find waiver based
on move’s failure to comply with a pleading standard that
had not yet been announced.1
as to real’s second argument, we are aware of no
authority suggesting that move was required to move
for summary judgment on its § 101 argument in order to
preserve this argument. See Street v. Corr. Corp. of Am.,
102 F.3d 810, 816 (6th Cir. 1996) (finding “no authority”
for the proposition that “failure to move for summary
judgment” on an argument “amounts to a waiver” of that
argument). We are particularly loathe to embrace such
an argument here, given that move’s motion for summary
judgment was filed before the Supreme Court’s decision
in Alice, which undeniably clarified the law in this area.
to the extent real argues that move’s present motion is
untimely under the February 11, 2009 scheduling order,
1. as move notes, it was unclear prior to Iqbal whether the
pleading standard announced in Bell Atl. Corp. v. Twombly, 550
U.s. 544 (2007) was applicable outside of the antitrust context. the
court in Twombly indicated that it was addressing the “question
of what a plaintiff must plead in order to state a claim under § 1
of the sherman act.” Id. at 545–55.
52a
Appendix F
that order was superseded by our may 16, 2016 order
requiring the parties to file “a joint brief presenting the
merits of any Alice arguments.” doc. 565.
real’s remaining arguments are no more persuasive.
real sought summary judgment on three issues:
(1) whether the ‘989 Patent was anticipated by certain
references; (2) whether these references were prior art;
and (3) whether inventor tornetta engaged in inequitable
conduct before the U.S. Patent and Trademark Office
(“Pto”). doc. 474. in its appeals to the Federal circuit,
real challenged this court’s claim construction, our
ruling on direct infringement, and our ruling on induced
infringement. See docs. 450, 511, 537. None of the issues
previously raised by real implicates § 101. Nor is
there evidence that REAL affirmatively argued that the
‘989 Patent was valid under § 101, either in its summary
judgment motion or on appeal. Absent any affirmative
argument by real, move’s silence cannot be understood
as waiver of the argument that the ‘989 Patent is invalid
under § 101.
The fact that REAL never affirmatively asserted
that the ‘989 Patent was valid under § 101 distinguishes
our april 25 order. there, we found that real waived
its theory of divided direct infringement. doc. 563.
as we explained, even after move “placed the issue of
divided direct infringement squarely before this court”
by arguing in its motion for summary judgment that this
type of infringement could not have occurred, real
failed to assert that such infringement had occured.
Id. at 3 (emphasis added). later, move sought to delay
53a
Appendix F
proceedings pending the Federal circuit’s en banc
decision in Akamai, which was expected to clarify the
standard for divided direct infringement. Id. at 4 (citing
doc. 447). real vigorously opposed, arguing that the
decision would have “[no] relevance” because “real is
prepared to show that move directly performed every
step of the claim.” Id. at 5 (citing doc. 448 at 3–4). thus,
real explicitly disclaimed any intention to pursue a
theory of divided direct infringement. move did not make
a comparable disclaimer here; the § 101 issue simply was
not raised by either party. Because we find that Move did
not waive the § 101 argument, we proceed to consider the
merits of move’s argument.
B. The Alice Test
1.
General Principles
section 101 prov ides that “[w]hoever invents
or discovers any new and useful process, machine,
manufacture, or composition of matter, or any new and
useful improvement thereof, may obtain a patent thereof,
subject to the conditions and requirements of this title.”
35 U.s.c. § 101. this provision “contains an important
implicit exception: laws of nature, natural phenomena,
and abstract ideas are not patentable.” Alice, 134 s. ct. at
2354 (citation and quotation marks omitted). the supreme
court has developed a two-part framework to determine
whether a claim is subject to this implicit exception. Under
this framework, we begin by asking whether the relevant
claims are directed to a patent-ineligible concept. Id. at
2355 (citing Mayo Collaborative Servs. v. Prometheus
54a
Appendix F
Labs., inc., 132 s. ct. 1289, 1296–97 (2012)). if so, we
proceed “to 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.” Id. (quoting
Mayo, 132 s. ct. at 1297–98; quotation marks omitted).
The first step of the Alice inquiry is intended to be
a meaningful one. even though “[a]ll inventions at some
level embody, use, reflect, rest upon, or apply laws of
nature, natural phenomena, or abstract ideas,” Mayo,
132 s. ct. at 1293, not every invention is directed to a
patent-ineligible concept. See Enfish, LLC v. Microsoft
Corp., 822 F.3d 1327, 1335 (Fed. cir. 2016). to distinguish
claims that are directed to abstract ideas from those that
merely involve abstract ideas, we look to “the ‘focus’ of
the claims” and “their ‘character as a whole.’” Elec. Power
Grp., LLC v. Alstom, S.A., 830 F.3d 1350, 1354 (2016)
(citations omitted). if the essential features of the claim
derive their meaning from a particular technical context
and resist transplantation to other contexts, the claim is
non-abstract. if, on the other hand, these features are
readily transferrable across technical contexts, the claim
is directed to an abstract idea. See McRO, Inc. v. Bandai
Namco Games Am. Inc., 837 F.3d 1299, 1312 (Fed. cir.
2016) (“the abstract idea exception prevents patenting a
result where ‘it matters not by what process or machinery
the result is accomplished.’”) (quoting O’Reilly v. Morse,
56 U.s. 62, 113 (1854)). similarly, if the essential features
of the claim can be implemented within the human mind
or with pen and paper, the claim is directed to an abstract
idea. See CyberSource Corp. v. Retail Decisions, Inc., 654
F.3d 1366, 1372–73 (Fed. cir. 2011).
55a
Appendix F
if the relevant claims are directed to an abstract
idea, we proceed to the second step of the Alice inquiry.
Here, we look for an “inventive concept – i.e., an element
or combination of elements that is sufficient to ensure that
the patent in practice amounts to significantly more than
a patent upon the ineligible concept itself.” Alice, 134 s.
ct at 2355 (quoting Mayo, 132 s. ct. at 1294; quotation
marks omitted; alterations incorporated). An artificial
attempt by the drafter “to limit the use of the [abstract
idea] to a particular technological environment” is not
enough. Mayo, 132 s. ct. at 1297 (quotation marks and
citation omitted). Nor will it suffice to “append[] . . . wellunderstood, routine, conventional activities previously
engaged in by workers in the field.” Intellectual Ventures
I LLC v. Symantec Corp. (“Symantec Corp.”), 838 F.3d
1307, 1313 (Fed. cir. 2016) (quoting Alice, 134 s. ct at 2357,
2359; quotation marks omitted; alterations incorporated).
However, an inventive concept may exist where the claim
includes a “non-conventional and non-generic arrangement
of known, conventional pieces.” BASCOM Glob. Internet
Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1350
(Fed. cir. 2016).
a comparison of two supreme court cases illustrates
the type of analysis we perform when confronted with an
abstractness challenge. 2 in Diamond v. Diehr, 450 U.s.
175 (1981), the relevant claims required a computer to
perform “a well-known mathematical equation” as part of
2. although both cases predate Alice, they employ the same
basic analytical framework, and are therefore instructive. See
McRO, 837 F.3d at 1312 (supreme court cases that preceded the
two-step framework may nonetheless provide guidance).
56a
Appendix F
a broader process for curing rubber. Id. at 187. the court
held that the claims were patent eligible, notwithstanding
their use of an abstract equation, because they “used the
equation in a process designed to solve a technological
problem in ‘conventional industry practice.’” Alice, 134 s.
ct. at 2358 (quoting Diehr, 450 U.s. at 178). the equation
was useful only insofar as it was employed in connection
with “all of the other steps in the[] claimed process” –
“installing rubber in a press, closing the mold, constantly
determining the temperature of the mold, constantly
recalculating the appropriate cure time through the use
of the formula and a digital computer, and automatically
opening the press at the proper time.” Diehr, 450 U.s.
at 178. Because the key improvements identified in
these claims were integrated into a particular technical
context, the claims were patent eligible. See Mayo, 132 s.
ct. at 1298 (process at issue in Diehr was patent eligible
“because . . . the additional steps of the process integrated
the equation into the process as a whole”).
in Bilski v. Kappos, 561 U.s. 593 (2010), by contrast, the
relevant claims set forth “a series of steps instructing how
to hedge risk,” and then offered “a simple mathematical
formula” for applying these steps. Id. at 599. the claims
went on to explain how buyers and sellers in the energy
market could apply these concepts. Id. the court found
that hedging – a well-known concept used across fields –
was an abstract idea, and that the relevant claims failed
to anchor this idea to any particular technical context.
See id. at 611–12 (claims added nothing to underlying
idea except “well-known random analysis techniques”).
accordingly, the court concluded that the claims were
not patentable. Id. at 612.
57a
Appendix F
2.
Applying Alice to Computer-Related
Claims
When computer-related claims are at issue, step one
of the Alice inquiry “asks whether the focus of the claims
is on the specific asserted improvement in computer
capabilities . . . or, instead, on a process that qualifies
as an ‘abstract idea’ for which computers are invoked
merely as a tool.” Enfish, 822 F.3d at 1335–36. claims
that involve the improvement of computer functionality
are patent eligible. See, e.g., McRO, 837 F.3d at 1314
(claims “focused on a specific asserted improvement in
computer animation” were non-abstract); Enfish, 822
F.3d at 1339 (method for improving “the way a computer
stores and retrieves data in memory” was non-abstract);
DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245,
1257 (Fed. cir. 2014) (method for website operation that
involved “generat[ing] and direct[ing] the visitor to [a]
hybrid web page that present[ed] product information
from the thirdparty and visual ‘look and feel’ elements
from the host website” was non-abstract). “software can
make non-abstract improvements to computer technology
just as hardware improvements can.” Enfish, 822 F.3d
at 1335. claims that involve improvements to computer
functionality are patent eligible because they derive
their meaning from the particular context of computing,
resist transfer to other technical contexts, and cannot be
implemented within the human mind.
on the other hand, claims that involve the use of
a computer to perform ordinary mental processes are
directed to an abstract idea. See, e.g., FairWarning IP,
58a
Appendix F
LLC v. Iatric Sys., Inc., No. 2015-1985, 2016 Wl 5899185,
at *4 (Fed. cir. oct. 11, 2016) (computerized method for
analyzing records of human activity to detect suspicious
behavior “merely implement[ed] an old practice in a
new environment,” and was therefore abstract). When
confronted with claims of this type, we must proceed to
step two of the Alice inquiry and “scrutinize” the technical
aspects of the claim “more microscopically.” Elec. Power
Grp., 830 F.3d at 1354. “steps that do nothing more than
spell out what it means to ‘apply it on a computer’ cannot
confer patent-eligibility.” Intellectual Ventures I, LLC v.
Capital One Bank (USA) (“Capital One”), 792 F.3d 1363,
1370–71 (Fed. cir. 2015) (quoting Alice, 134 s.ct. at 2359). 3
Nor does “claiming the improved speed or efficiency
inherent with applying the abstract idea on a computer
provide a sufficient inventive concept.” Id. at 1367. rather,
the claim must “reflect[] a specific implementation not
demonstrated as that which any [programmer] engaged in
the search for [a means of implementing the abstract idea]
would likely have utilized.” McRO, 837 F.3d at 1316 (quoting
Ass’n for Molecular Pathology v. Myriad Genetics, Inc.,
133 s. ct. 2107, 2119–20 (2013)); see BASCOM, 827 F.3d
at 1350 (novel arrangement of software elements to filter
internet content, which provided “a technical improvement
3. See also Ultramercial, Inc. v. Hulu, LLC, 772 F.3d 709,
715–16 (Fed. cir. 2014) (instructions “to implement the abstract
idea with routine, conventional [computing] activity” do not provide
an inventive concept); Symantec Corp., 838 F.3d at 1315 (“claims
that amount to nothing significantly more than an instruction to
apply an abstract idea using some unspecified, generic computer
. . . do not make an abstract idea patent-eligible”) (quoting Alice,
134 s. ct. at 2359–60).
59a
Appendix F
over prior art ways of filtering such content,” provided
inventive concept).
C.
Analysis
1.
Alice Step One
turning to the merits, we begin by asking whether the
‘989 Patent is directed to an abstract idea. move argues
that it is directed to such an idea: specifically, the idea of
“locating available real estate that meets one’s geographic
and other criteri[a].” doc. 573 at 15. real accuses move of
overgeneralizing the invention. it argues that Patent ‘989
is directed to: “a method for transforming a database of
available real estate properties into a computer display of
a zoomed second area, where the information is displayed
at a higher level of detail than a previous display, and the
points displayed represent the locations of available real
estate properties.” Id. at 32.
as an initial matter, we must decide the appropriate
level of generality at which to view the ‘989 Patent.
some decisions of the Federal circuit have instructed
courts applying Alice step one to be “‘careful to avoid
oversimplifying the claims’ by looking at them generally
and failing to account for the specific requirements of
the claims.” McRO, 837 F.3d at 1313 (quoting In re TLI
Commc’ns LLC Patent Litig., 823 F.3d 607, 611 (Fed. cir.
2016)); see also Enfish, 822 F.3d at 1327 (“[d]escribing the
claims at such a high level of abstraction and untethered
from the language of the claims all but ensures that
the exceptions to § 101 swallow the rule.”). However, a
60a
Appendix F
review of Alice itself, and recent Federal circuit decisions
applying it, indicate that courts routinely describe
claims at a high level of generality at Alice step one.4 We
therefore agree with a prior decision of this court that
Alice step one requires us to “recite a claim’s purpose at
a reasonably high level of generality.” Secure Mail Sols.
LLC v. Universal Wilde, Inc., 169 F. supp. 3d 1039, 1048
(c.d. cal. 2016) (citation and quotation marks omitted);
cf. BASCOM, 827 F.3d at 1349 (recognizing that analysis
of specific limitations can occur at either step).
in deciding what the ‘989 Patent is directed to,
we consider the abstract and the language of the sole
4. See Alice, 134 s. ct. at 2356 (“on their face, the claims
before us are drawn to the concept of intermediated settlement,
i.e., the use of a third party to mitigate settlement risk.”); see, e.g.,
FairWarning IP, 2016 Wl 5899185, at *2 (claims were directed to
“concept of analyzing records of human activity to detect suspicious
behavior”); Symantec Corp., 838 F.3d at 1313 (claim directed to
“receiving e-mail . . . identifiers, characterizing e-mail based on
the identifiers, and communicating the characterization”) Elec.
Power Grp., 830 F.3d at 1353 (“the focus of the asserted claims
. . . is on collecting information, analyzing it, and displaying
certain results of the collection and analysis.”); BASCOM, 827 F.3d
at 1348 (claims “directed to filtering content on the Internet”);
Mortg. Grader, Inc. v. First Choice Loan Servs. Inc., 811 F.3d
1314, 1324 (Fed. cir. 2016) (“asserted claims [were] directed to
the abstract idea of ‘anonymous loan shopping’”); Versata Dev.
Grp., Inc. v. SAP Am., Inc., 793 F.3d 1306, 1333 (Fed. cir. 2015)
(claims directed to “the abstract idea of determining a price,
using organizational and product group hierarchies”); Internet
Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1348 (Fed.
cir. 2015) (claim directed to “the idea of retaining information in
the navigation of online forms”).
61a
Appendix F
independent claim, claim 1. the abstract describes the
invention as “a method for locating available real estate
properties for sale, lease or rental using a database of
available properties at a central location and remote
stations which use a graphic interface to select desired
regions on a map of the areas of interest.” claim 1
discloses “[a] method using a computer for locating
available real estate properties” comprising steps for
“creating a database” of available properties, representing
this information on a digital map, and allowing the user to
“select a[n] . . . area” and “zoom[] in . . . to display a higher
level of detail.” We therefore conclude that the ‘989 Patent
is directed to a method for collecting and organizing
information about available real estate properties and
displaying this information on a digital map that can be
manipulated by the user.
Based on this understanding, we conclude that the
‘989 Patent is directed at an abstract idea. the Federal
circuit has explained that “collecting information,
including when limited to particular context,” is “within
the realm of abstract ideas.” Elec. Power Grp., 830 F.3d
at 1353. methods for “analyzing information” that rely on
“steps people go through in their minds” or “mathematical
algorithms” are also abstract. Id. at 1354; accord Amdocs
(Israel) Limited v. Openet Telecom, Inc., No. 20151180, 2016 Wl 6440387, at *9 (Fed. cir. Nov. 1, 2016)
(“claims involving the mere collection and manipulation
of information do not satisfy § 101”) (citations omitted). it
follows that the concept of collecting and organizing data
about available real estate properties is abstract.
62a
Appendix F
the requirement that the information be displayed
on a digital map is also abstract. the Federal circuit
has explained that “merely presenting the results of
abstract processes of collecting and analyzing information
. . . is abstract as an ancillary part of such collection
and analysis.” Elec. Power Grp., 830 F.3d at 1354.
Nothing about the display requirement renders claim
1 non-abstract. the concept of using a map to display
geographic information is ancient;5 it is certainly “part
of the storehouse of knowledge of all men” which is “free
to all men and reserved exclusively to none.” Funk Bros.
Seed Co. v. Kalo Inoculant Co., 333 U.s. 127, 130 (1948).
the fact that the map is digital, rather than physical, does
not change the analysis. the ‘989 Patent relies on generic
computing capabilities to render the map. See doc. 575-1
at 23 (“[t]he present invention may be implemented on an
iBm or compatible personal computer” using a variety of
existing softwares); see also id. at 41 (Patent examiner:
“it is well known in the prior art of computer to display
information textually or graphically.”). Generic computer
implementation of this sort does not defeat a finding of
abstractness. See, e.g., Symantec Corp., 838 F.3d at 1315.
Finally, the requirement that the user be able to
manipulate the map to obtain more detailed information
– i.e., that the user be able to “select a[n] . . . area” and
“zoom[] in . . . to display a higher level of detail” – is also
abstract. to begin, we note that the concept of using a
5. the oldest known map, the imago mundi, dates to the
6th century Bce. See http://www.britishmuseum.org/research/
collection_online/collection_object_details.aspx?assetid=404485
001&objectid=362000&partid=1.
63a
Appendix F
series of related maps that provide progressively greater
detail is an abstract idea. as the eastern district of
virginia noted in a similar case, “atlases have long
provided maps of large geographic areas along with
corresponding maps of smaller portions of these larger
areas in more detail.” Peschke Map Techs. LLC v. Rouse
Properties Inc., 168 F. supp. 3d 881, 888 (e.d. va. 2016).
organizing geographic data in this way is commonsensical
– it is the type of approach anyone attempting to organize
a large amount of geographic data would think to use.
allowing a user to orient herself using a larger map, and
then to select a smaller, more detailed map corresponding
to her geographic preference, is similarly commonsensical.
all of these steps could be approximated by a realtor with
an atlas.
of course, even if the process is abstract, the
claim may be directed to a patent-eligible subject if it
discloses “a specific asserted improvement in computer
[performance]” designed to implement the process.
McRO, 837 F.3d at 1314. But we see no evidence that
the ‘989 Patent discloses such an improvement. claim 1
does not teach any innovation in computer functionality;
instead, it speaks of performing generic functions such as
“creating a database,” “zooming in” on a selected area,
and “displaying a map.” real argues that steps such
as “zooming to display a higher level of detail” cannot
be performed without a computer (doc. 573 at 41–42)
and that the process as a whole requires a computer to
be “programmed to operate in a specific manner,” (id. at
38), but that is not enough: claims involving software are
often found to be abstract where they rely on “routine,
64a
Appendix F
conventional [computing] activity.” See, e.g., Ultramercial,
772 F.3d at 715–16. there is nothing to indicate that
the computer activity disclosed by the ‘989 Patent is
anything other than routine. although the ‘989 Patent
discloses pages of logical flow charts that explain how
the computer should be programmed to perform the
claimed method (doc. 571 at 3–15), real does not explain
how the disclosed program differs from that which any
programmer would have used to implement the claimed
method. Cf. McRO, 837 F.3d at 1316.6
comparing the ‘989 Patent to one of the patents
at issue in Enfish, where the Federal circuit upheld a
software patent against an abstractness challenges at
Alice step one, demonstrates what is lacking here. the
patents in Enfish were directed to the use of a selfreferential table to organize data. Enfish, 822 F.3d at 1336.
one of the claims recites:
a data storage and retrieval system for a
computer memory, comprising: means for
configuring said memory according to a logical
table, said logical table including: a plurality of
logical rows, each said logical row having an
object identification number (OID) to identify
each said logical row, each said logical row
corresponding to a record of information; a
6. Similar flow charts appear in many software patents that
have been invalidated on abstractness grounds. consider Figure 4
of U.s. Patent No. 6,460,050, which was held invalid in Symantec
Corp., 838 F.3d at 1313, or Figure 2 of U.s. Patent No. 8,578,500,
held invalid in FairWarning, 2016 Wl 5899185.
65a
Appendix F
plurality of logical columns intersecting said
plurality of logical rows to define a plurality of
logical cells, each said logical column having an
oid to identify each said logical column; and
wherein at least one of said logical rows has an
oid equal to the oid of a corresponding one
of said logical columns, and at least one of said
logical rows includes logical column information
defining each of said logical column.
claim 1 of U.s. Patent No. 6,151,604 (the “‘604 Patent”).
the ‘604 Patent goes on to identify several benefits
associated with the use of a self-referential table. First, the
claimed method is compatible with “an indexing technique
that allows for faster searching of data” than would be
possible using the conventional method of organizing
data in tabular form. Enfish, 822 F.3d at 1333 (citation
omitted). second, the claimed method “allows for more
effective storage of data other than structured text, such
as images and unstructured text.” Id. (citation omitted).
Finally, the claimed method “allows more flexibility in
configuring the database,” because the database can be
launched without first configuring a series of related
tables. Id. (citation omitted).
thus, the patent in Enfish speaks directly to a
particular method of organizing data on a computer. the
benefits it provides – faster searching, more effective
storage of images and unstructured text, and more
flexibility in table configuration – can only be realized,
and only make sense, in the computing context. the logical
structure is decidedly novel, with no precursor in the pre-
66a
Appendix F
computer world. and crucially, the method is not one that
any programmer seeking to perform the relevant function
would have known to design; to the contrary, the evidence
before the Federal circuit indicated that programmers
had traditionally relied on a different method to organize
data in tabular form. all of these features distinguish the
‘604 Patent from the ‘989 Patent.
2.
Alice Step Two
We proceed to step two of the Alice inquiry. Here, we
“scrutinize” the technical aspects of the ‘989 Patent “more
microscopically,” Elec. Power Grp., 830 F.3d at 1354,
to determine whether the claim includes an inventive
concept “sufficient to ‘transform’ the claimed abstract
idea into a patenteligible application.” Alice, 134 s. ct. at
2357 (citing Mayo, 132 s. ct. at 1294, 1295).
real presents two arguments as to why the ‘989
Patent contains an inventive concept. First, real
argues that the ‘989 Patent discloses “a particular way
of improving the function of a computer to provide ease
and speed of search and retrieval of information from a
database of available real estate properties.” doc. 573 at
49. this argument is a non-starter. there is no evidence
that the ‘989 Patent improves computer functionality; to
the contrary, the specification teaches that the claimed
method relies on generic computing capabilities. See doc.
575-1 at 23 (“[t]he present invention may be implemented
on an iBm or compatible personal computer” using a
variety of existing softwares). the fact that this generic
computer implementation may increase the ease and
67a
Appendix F
speed of search and retrieval of information does not
provide an inventive concept. See Capital One, 792 F.3d
at 1370–71 (“the improved speed or efficiency inherent
with applying the abstract idea on a computer” is not an
inventive concept).
second, real argues that zooming to display a
higher level of detail is an inventive concept. it cites a
declaration from its expert, Professor dennis e. shasha,
stating that “[i]t was considered neither routine nor
conventional in the mid-1980s for a computer-displayed
map to be able to zoom to display a higher level of detail.”
doc. 573 at 44 ( doc. 575-3 at 4, ¶ 12). although we accept
that as true,7 we do not see it as evidence of an inventive
concept. as explained, the concept of using a series of
related maps that provide progressively greater detail is
an abstract idea, and a zoom feature on a digital map is a
commonsensical way to implement this abstract idea on
a computer. Accord Peschke Map, 168 F. supp. 3d at 888
(“[t]he use of multiple layers of maps that enables users to
zoom into and out of a geographic area is an unpatentable
7. there is evidence that zooming in general was known in
the art. See doc. 575-1 at 148 (Patent examiner: “as to the zoom
feature . . . that too is known. Waller, for example, teaches a means
for providing the operator with a large scale map. the operator
may specify a region within the large scale map by positioning a
window at the center of the desired region. the system will zoom
in on the designated region and provide a close-up map of the
region.”). real contends, and we see no evidence to the contrary,
that the ‘989 Patent was among the first to teach a dynamic zoom
– one providing more detail, not simply a larger display, as the
user zooms in. See doc. 573 at 45.
68a
Appendix F
abstract idea.”). Whether the ‘989 Patent was the first
attempt to implement this idea on a computer is of no
relevance. as the supreme court has explained, “the fact
that a company may be the first to successfully apply an
abstract idea within a new technological context does not
transform the abstract idea into something tangible and
patentable.” Bilski, 561 U.s. at 610–11.
real does not identify anything else that might
constitute an inventive concept. Nor do we see anything.
REAL has not identified any improvement to computer
functionality. Nor does it identify a “non-conventional and
non-generic arrangement of known, conventional pieces.”
BASCOM, 827 F.3d at 1350. it appears to us that the ‘989
Patent provides instructions to implement an abstract
idea “with routine, conventional [computing] activity.”
Ultramercial, 772 F.3d at 715–16. therefore, we hold
that the implicit exception against patenting abstract
ideas applies to the ‘989 Patent, and that move is entitled
to summary adjudication that the ‘989 Patent is invalid
under § 101.
III. Defendants’ October 18, 2011 motion
A.
Anticipation
an invention is not patentable if it was anticipated
– that is, if it was “patented, described in a printed
publication, or in public use, on sale, or otherwise available
to the public” before the priority date of the claimed
invention. 35 U.s.c. § 102(a)(1). “anticipation requires
that all of the claim elements and their limitations are
69a
Appendix F
shown in a single prior art reference.” In re Skvorecz,
580 F.3d 1262, 1266 (Fed. cir. 2009). it is not necessary
that every element be explicitly disclosed; anticipation can
also occur by implication. See Standard Havens Prods.,
Inc. v. Gencor Indus., Inc., 953 F.2d 1360, 1369 (Fed.
cir. 1991). However, whether the disclosure is explicit or
implicit, it must be “sufficient to enable one with ordinary
skill in the art to practice the invention.” Minn. Mining
& Mfg. Co. v. Chemque, Inc., 303 F.3d 1294, 1301 (Fed.
cir. 2002). “anticipation is a question of fact,” Glaverbel
Societe Anonyme v. Northlake Mktg. & Supply, Inc., 45
F.3d 1550, 1554 (Fed. cir. 1995), and must be established
by clear and convincing evidence. Applied Med. Res. Corp.
v. U.S. Surgical Corp., 147 F.3d 1374, 1378 (Fed. cir. 1998).
real seeks summary adjudication that the ‘989
Patent is not anticipated. docs. 474. real argues that
move cannot demonstrate anticipation because (1) none
of the alleged anticipating references discloses all of the
steps of the claimed method and (2) none of the allegedly
anticipating references was publicly available before
the relevant priority date. doc. 476 at 15–19, 21–27. We
consider each argument in turn.
1. Disclosure
move argues that the ‘989 Patent is anticipated
by two sets of references, “midas/mapinfo” and
“Workplace.” the midas/mapinfo references were
developed by Navigation technologies, inc. (“Navigational
technologies”). doc. 482-22 at 407, ¶ 3. the Workplace
references were developed by inventor tornetta, pursuant
70a
Appendix F
to a license agreement between real and synermation,
inc. (“synermation”). doc. 482-11 at 95–121. real argues
that none of these references is anticipating because none
teaches step (a) of claim 1, “creating a database of the
available real estate properties.” doc. 476 at 17–19.
With respect to the midas/mapinfo references,
real argues that none of these references teaches
creating a database of available real estate properties
because none of them actually works. in support of this
argument, real cites testimony from move’s expert
Professor todd s. Bacastow stating that: (1) he had to
create his own database to operate midas version 1.2 8
because otherwise he “couldn’t get [it] to run;” (2) he was
not aware of anyone who performed all elements of claim
1 using MIDAS Version 1.2 before the effective filing date
of the ‘989 Patent; (3) he was “unable to run” any version of
mapinfo version 2.0 he received; and (4) he was “unaware
of any version of mapinfo version 2.0 that will run.” doc.
482-9 at 82–83, 91, 48–50. move does not meaningfully
respond to these arguments.
We agree with real that no reasonable jury could
find by clear and convincing evidence that MapInfo Version
2.0 anticipates the ‘989 Patent, given move’s failure to
produce any evidence that this program is functional.
real is therefore entitled to summary adjudication that
8. some but not all of the testimony distinguishes between
two versions of midas version 1.2 –midas v1.22s and midas
V1.22UM. As the testimony and briefing often fail to distinguish
between the two versions, we ignore the distinction for present
purposes.
71a
Appendix F
mapinfo version 2.0 does not anticipate the ‘989 Patent.
However, we think real mischaracterizes Professor
Bacastow’s testimony regarding midas version 1.2.
Professor Bacastow testified that he was able to create
a database using midas version 1.2 and to perform all
of the steps of claim 1 using this software. doc. 482-9
at 89–90. He further testified that this software was
“intended for and in fact probably used to look at available
real estate properties.” Id. at 90. Based on this testimony,
a reasonable jury could find by clear and convincing
evidence that midas version 1.2 teaches creating a
database of available real estate properties. real is not
entitled to summary adjudication on the question whether
midas version 1.2 anticipates the ‘989 Patent.
With respect to the Workplace references, real
argues that none of these references anticipates the ‘989
Patent because none includes routines or language for
creating a database of properties. real cites testimony
from move’s expert Professor Peter Guth, who stated
that the Workplace software he reviewed “would never
have created a database because the database would
have been created on the host. the Workplace software
. . . was designed for a person or the realtor to query the
properties that had been created with another program
in the database.” doc. 482-19 at 116. Professor Guth
acknowledged that he had no evidence that such a program
existed, but explained that “you could have created that
database as simply as going into a word processor or a
spreadsheet.” Id. at 116–17. real also cites testimony
from Professor Bacastow, who stated that the Workplace
software he examined could not plot a plurality of points
because it “was not provided with a database.” doc.
72a
Appendix F
482-9 at 57–58. move responds by accusing real of
mischaracterizing the testimony of Professors Guth and
Bacastow. doc. 476 at 20, n.3.
reading the cited testimony in context, we conclude
that a reasonable jury could find by clear and convincing
evidence that Workplace teaches creating a database. it
is undisputed that the Workplace software reviewed by
Professors Guth and Bacastow did not include a database
or code for creating a database. But both professors
testified that the software was designed to operate with
a database. For example, Professor Guth testified that
“[t]he source code has lines of code in it that would have
plotted the properties from [a] database” had one been
supplied; he went on to state that “it would have been
virtually impossible to write the program without having
a test database that would be plotting properties when
you did that.” doc. 482-19 at 118; accord doc. 482-19
at 10, n.12 (Professor Guth’s expert report). Professor
Bacastow testified similarly: “looking at the code we were
given in hard copy format, it was quite clear that in fact
it was intended to have a database.” doc. 482-9 at 58.
Based on this evidence, a reasonable jury could find by
clear and convincing evidence that creating a database is
necessarily implied by the Workplace references. real
is not entitled to summary adjudication on the question
whether Workplace anticipates the ‘989 Patent.
2. Public Availability
the second part of real’s motion argues that
real is entitled to summary adjudication on the § 102
issue because neither midas version 1.2 nor Workplace
73a
Appendix F
was publicly available before the priority date of the
‘989 Patent. First, real argues that the ‘989 Patent
is entitled to a priority date based on the effective filing
date of the ‘576 Patent – i.e. march 19, 1986. there is
no dispute that anticipation could not have occurred if
real is correct. second, real argues that it is entitled
to summary adjudication even if the ‘989 Patent has a
priority date based on the effective filing date of the ‘989
Patent (april 24, 1989), because move has not produced
evidence that the allegedly anticipating references were
publicly available at the relevant time.
a. Is the ‘989 Patent Entitled to the ‘576
Patent’s Priority Date?
the ‘989 Patent is a continuation-in-part (“ciP”) of the
‘576 Patent. a ciP application is entitled to the priority
date of the parent application if the parent disclosed every
element claimed by the ciP in the manner required by
section 112(a). 35 U.s.c. § 120. “subject matter that arises
for the first time in the CIP application does not receive
the benefit of the filing date of the parent application.”
Augustine Med., Inc. v. Gaymar Indus., Inc., 181 F.3d
1291, 1302 (Fed. cir. 1999). to determine whether a
ciP claim is entitled to the priority date of the parent
application, we ask whether the disclosure in the parent
“reasonably conveys to the artisan that the inventor
had possession at that time of the later claimed subject
matter.” Id. (citation omitted; alteration incorporated).
“this is a question of fact.” Id. at 1303.
74a
Appendix F
real argues that the ‘989 Patent is entitled to
the priority date of the ‘576 Patent because the patent
examiner specifically concluded as much. If the examiner
finds that the CIP application is entitled to the parent’s
priority date, we presume this finding is valid, absent clear
and convincing evidence that it is erroneous. See Bone
Care Int’l, LLC v. Pentech Pharm., Inc., 741 F. supp. 2d
865, 872–73 (N.d. ill. 2010). if the examiner did not make
such a determination, the burden is on the patent holder to
show that the ciP patent is entitled to the parent’s priority
date. Id. at 873 (citation omitted). “Whether the examiner
actually considered this issue can only be determined by
reviewing the prosecution history.” In re NTP, Inc., 654
F.3d 1268, 1278 (Fed. cir. 2011).
real argues that the examiner was required to
make a priority determination because the record included
two references created after the effective filing date of the
‘576 Patent but before the effective filing date of the ‘989
Patent. See doc. 482-4 at 115. real contends that the
examiner found that these references could be disregarded
because they post-dated the effective filing date of the ‘989
Patent. in support of this argument, real points to the
patent examiner’s statement that “[t]he newlycited art is
considered relevant to applicant’s disclosure, but does not
qualify as prior art.” Id. at 111 (emphasis added). We do
not think this vague, conclusory statement is sufficient to
establish that the patent examiner found the ‘989 Patent
entitled to the priority date of the ‘576 Patent. there is “no
evidence that the examiner actually considered whether
the claims of the [‘576 Patent] satisfy the requirements
of § 112;” the examiner certainly did not “make an
75a
Appendix F
affirmative statement that the claims of the [‘576 Patent]
satisfied § 112.” In re NTP, 654 F.3d at 1278–79. absent
such evidence, we cannot presume that the ‘989 Patent is
entitled to the priority date of the ‘576 Patent.9
real argues in the alternative that the ‘576 Patent
teaches every element of claim 1 of the ‘989 Patent. move
disagrees, arguing that the ‘576 Patent fails to disclose
element (g) of claim 1 –displaying a plurality of points.
doc. 476 at 42–45. move points to testimony from Professor
Bacastow, who opined that the method set forth in the
appendix of the ‘576 Patent would not display a plurality
of points because any point shown on a screen would be
cleared before the user could access a second listing.
doc. 482-26 at 182–86. real counters with testimony
from its expert, Professor shasha, who opined that the
‘576 Patent discloses step (g) because (1) the ‘576 Patent
allows a user to position a crosshair cursor to “create[] a
point representing the appropriate geographic location of
a real estate property,” and (2) “[r]epeated application of
this process would result in displaying a plurality of such
points because there is no erasure of such points and no
clear screen” in the program. doc. 482-12 at 111–12. We
think the disagreement between Professors Bacastow
and shasha creates a genuine dispute of material fact as
to whether ‘989 Patent is entitled to the priority date of
the ‘576 Patent.
9. even if we were to adopt this presumption, it would not
affect our ultimate conclusion. move has presented evidence from
which a reasonable jury could find by clear and convincing evidence
that the ‘576 Patent does not disclose every step of claim 1 of the
‘989 Patent. See doc. 482-26 at 182–86
76a
Appendix F
b.
Were the Allegedly Anticipating
References Publicly Available At the
Relevant Time?
real argues that, even if move is correct regarding
the priority date for the ‘989 Patent, the ‘989 Patent was
not anticipated because neither midas version 1.2 nor
Workplace was publicly available before the relevant
priority date.10
i.
mIDAS Version 1.2
With respect to midas version 1.2, real points
to Professor Bacastow’s testimony that he had “no
knowledge of invoices or actual sales” for midas version
1.2, nor any other “direct evidence” that the software
was delivered to a customer before april 24, 1989. doc.
482-9 at 35, 73–74, 80–81, 98–99. in addition, real cites
testimony from Barry indyke, a software engineer at
Navigation Technologies. Although Indyke testified that
he “know[s]” Navigational technologies had customers for
midas version 1.2 in 1987 and that it would “surprise
[him]” if the first sales were after that year, he conceded
that he does not have sales documentation to support his
recollection. doc. 482-6 at 79.
10. Because midas was developed by a third-party, the
priority date is the effective filing date of the ‘989 Patent, or April
24, 1989. 35 U.s.c. § 102(a)(1). Because Workplace was developed
by inventor tornetta, the priority date is one year earlier.
§ 102(b)(1) (disclosures made by the inventor up to a year before
the effective filing date are not considered prior art).
77a
Appendix F
move counters with a declaration from John Haller,
co-founder and former vice President for software
development of Navigational technologies. Haller avers
that the midas program was offered for sale “[a]t least
as early as July 1986,” and that “version 1.2 of the midas
program was offered for sale and sold beginning in march
1987.” doc. 482-22 at 407–09, ¶¶ 6, 11. Haller attaches
two documents to his declaration: (1) a sales presentation
on the midas software given to the albany Board of
realtors in July 1986, and (2) the user manual for midas
version 1.2, which states that it is for use “with the midas
version 1.2 software release of august 1987.” doc. 482-23
at 2–26, 40.
Based on the Haller declaration and the corroborating
evidence attached thereto, as well as the testimony of
Barry Indyke, a reasonable jury could find by clear and
convincing evidence that midas version 1.2 was publicly
available before april 24, 1989. We therefore deny real’s
motion for summary adjudication on the question whether
midas version 1.2 anticipates the ‘989 Patent.
ii. Workplace
real argues that Workplace was not publicly
available before the relevant priority date (here, april 24,
1988) because the software was maintained in confidence
in accordance with the terms of the license agreement
(“ag reement”) between rea l and synermation.
real relies on a provision of the agreement stating
that synermation will “hold all technical information . . .
furnished by [REAL] in confidence and will not disclose
78a
Appendix F
such technical information . . . to others without prior
written permission received from [real].” doc. 482-11
at 101, ¶ 2.8.
move disputes rea l’s understanding of this
provision. Move notes that the agreement defines the
term “technical information” to include “system overview,
flowcharts, and executable object code . . . relating to the
manufacture, use and testing of” Workplace, but not to
include Workplace itself. See id. at 97, ¶ 1.6. move also
points to provisions of the agreement that contemplate
public distribution of the software. See, e.g., id. at 102,
¶ 3.1 (granting synermation “the exclusive worldwide right
and license to use the technical information to operate,
reproduce, distribute, market, franchise, sublicense,
and support” Workplace). Finally, move cites inventor
tornetta’s testimony that he and synermation gave free
copies of the software to anyone who asked for it. doc. 48222 at 71, 116. reviewing all of this evidence, we conclude
that the agreement contemplates public distribution of
the Workplace software, and that such distribution may
have occurred. The confidentiality provision would not
preclude a reasonable jury from finding that Workplace
was publicly available before april 24, 1988.
real also argues that Workplace is not prior art
because it “was not completed and known to work for its
intended purpose” before the priority date of the ‘989
Patent. doc. 476 at 25. in support of this argument, real
presents testimony from inventor tornetta stating that
(1) synermation terminated the agreement by the end
of 1988 because the software failed certain tests, and
79a
Appendix F
(2) tornetta “did not have a functional working version”
of the software “until a month before the application of
the ‘989 Patent.” doc. 482-6 at 16–17, 31–32.
move points to other portions of inventor tornetta’s
testimony, where states that (1) the Workplace software
was written before 1988, and (2) the software was capable
of displaying a plurality of points and performing all of
the other limitations of claim 1 of the ‘989 Patent. doc.
482-22 at 113–14. in addition, move produces an april
22, 1988 article from the Times Herald of Norristown,
Pennsylvania, which states that Workplace is capable of
“superimpos[ing] on [a] map . . . a series of ‘points’, each of
which represents at least one property in the Workplace
database.” doc. 482-22 at 339 move cites testimony from
B. Jay Bagdis, the author of the Times Herald article,
who stated that tornetta had written “some software”
by the time the article was written and the software was
“probably” capable of accessing a database of real estate
properties as of this time. doc. 482-28 at 90.
Based on the evidence cited by move, a reasonable jury
could find by clear and convincing evidence that Workplace
was capable of performing all of the steps of claim 1 of
the ‘989 Patent before april 24, 1988. a reasonable jury
could also find that the software was publicly available
before this date. We therefore deny real’s motion for
summary adjudication on the question whether Workplace
anticipates the ‘989 Patent.
80a
Appendix F
3.
Conclusion
real seeks summary adjudication that neither the
midas/mapinfo nor the Workplace references anticipate
the ‘989 Patent. real argues that these references fail
to anticipate the ‘989 Patent because (1) they do not teach
every element of claim 1 of the ‘989 Patent and (2) they do
not constitute prior art. As to REAL’s first argument, we
conclude that real is entitled to summary adjudication
that mapinfo version 2.0 does not anticipate the ‘989
Patent because move has not produced any evidence that
this software is capable of performing all of the steps
of claim 1. However, a genuine dispute of material fact
exists as to whether midas version 1.2 or Workplace is
capable o
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