throbber
Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 1 of 34
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`SAN JOSE DIVISION
`
`
`
`IMMERSION CORPORATION,
`
`Plaintiff,
`
`v.
`
`FITBIT, INC.,
`
`Defendant.
`
`Case No. 17-CV-03886-LHK
`
`ORDER GRANTING IN PART AND
`DENYING IN PART MOTION TO
`DISMISS
`
`Re: Dkt. No. 23
`
`
`
`Plaintiff Immersion Corporation (“Immersion”) filed a patent infringement suit against
`
`Defendant Fitbit, Inc. (“Fitbit”). Immersion alleges that Fitbit infringes claims of U.S. Patent No.
`
`8,059,105 (“the ’105 Patent”), U.S. Patent No. 8,351,299 (“the ’299 Patent”), and U.S. Patent No.
`
`8,638,301 (“the ’301 Patent”) (collectively, the “patents-in-suit”). Before the Court is Fitbit’s
`
`motion to dismiss, which contends that the asserted claims of the patents-in-suit fail to recite
`
`patent-eligible subject matter under 35 U.S.C. § 101. ECF No. 23 (“Mot.”). Having considered
`
`the submissions of the parties, the relevant law, and the record in this case, the Court GRANTS
`
`Fitbit’s motion to dismiss as to the ’301 Patent claims and DENIES Fitbit’s motion to dismiss as
`
`to the ’105 and ’299 Patent claims.
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`1
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 2 of 34
`
`
`
`I.
`
`A.
`
`BACKGROUND
`
`Factual Background
`
`1. The Parties and Technology at Issue
`
`Plaintiff Immersion is a Delaware corporation with its principal place of business in San
`
`Jose, California. ECF No. 1 (“Compl.”) at ¶ 24. Immersion pioneered the use of haptic effects,1
`
`such as tactile vibrations and forces, in electronic devices. Id. ¶ 2. “Haptic effects . . . can be
`
`produced by actuators, or motors, which create a vibration, jolt, pulse, spatial texture, or other
`
`physical sensation. Haptic hardware devices are often combined with software simulating the way
`
`in which objects interact through the sense of touch.” Id. ¶ 3. Immersion first introduced haptic
`
`feedback in video game controllers in the 1990s, and since then has developed haptic feedback
`
`technology for use in “console, PC, and mobile gaming” as well as in other devices, including
`
`wearable devices. Id. ¶ 18.
`
`Defendant Fitbit, which sells wearable fitness trackers, is a Delaware corporation with its
`
`principal place of business in San Francisco, California. Id. ¶ 25. Some of Fitbit’s products
`
`include haptic feedback features, such as a silent alarm that vibrates to wake the user from sleep.
`
`Id. ¶ 10. Other haptic feedback features include haptic confirmation of commands and haptic
`
`notification of incoming phone calls. Id. Immersion alleges that these products infringe
`
`Immersion’s ’105, ’299, and ’301 Patents. The Court next summarizes these patents.
`
`2. The ’105 Patent
`
`The ’105 Patent is titled “Haptic Feedback for Touchpads and Other Touch Controls.”
`
`Compl. Exh. A (’105 patent). It was filed on January 14, 2008 and was issued on November 15,
`
`2011. Id.
`
`Most of the claims in the ’105 Patent generally relate to a device, such as a laptop
`
`computer touchpad mouse, that facilitates a user’s interaction with a computer and that can
`
`provide haptic feedback to the user. ’105 patent at col. 1:28-32, col. 2:7-10. Specifically, the ’105
`
`
`1 “The word ‘haptics’ originates from the Greek word haptikos, meaning to be able to grasp and
`perceive by touch.” Compl. ¶ 3.
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`2
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 3 of 34
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Patent is directed to a haptic feedback device such as a touchpad provided on a portable computer,
`
`or a touch screen found on a variety of devices. Id. at col. 2:7-10. The touch control “inputs a
`
`position signal to a processor of the computer based on a location of user contact on the touch
`
`surface. The computer can position a cursor in a displayed graphical environment based at least in
`
`part on the position signal, or perform a different function.” ’105 patent abstract. “At least one
`
`actuator is also coupled to the touch input device and outputs a force to provide a haptic sensation
`
`to the user contacting the touch surface.” Id. The haptic feedback is “preferably a linear force
`
`output approximately perpendicularly to a plane of the touch surface of the touch input device, and
`
`the actuator can include a piezo-electric actuator, a voice coil actuator, a pager motor, a solenoid,
`
`or other type of actuator.” Id. at col. 2:34-38.
`
`“The haptic sensations, such as a pulse, vibration, or spatial texture, are preferably output
`
`in accordance with an interaction of a controlled cursor with a graphical object in the graphical
`
`environment.” Id. at col. 2:48-51. “For example, a pulse can be output when the cursor is moved
`
`between menu elements in a menu, moved over said icon, or moved over a hyperlink.” Id. col.
`
`2:51-53. Such haptic feedback “can assist and inform the user of interactions and events within a
`
`graphical user interface or other environment and ease cursor targeting tasks.” Id. at col. 2:63-66.
`
`“User-independent events can also be relayed to the user using haptic sensations on the touchpad.”
`
`Id. at col. 12:50-51. For example, “an appointment reminder, receipt of email, explosion in a
`
`game, etc., can be signified using a vibration, pulse, or other time-based force.” Id. at col. 12:51-
`
`54.
`
`The specification of the ’105 Patent describes several embodiments. First and most
`
`prominently, the specification describes a touchpad mouse for a laptop computer. Id. at col. 3:32-
`
`col. 6:43 & fig. 1. Another disclosed embodiment is a touchpad on a remote control device, such
`
`as a television remote control. Id. at col. 6:44-col. 7:8 & fig. 2. The specification also describes a
`
`touch screen device, such as a touch screen PDA. Id. at col. 15:15-col. 16:17 & fig. 8A.
`
`Immersion asserts “at least claims 19, 20, and 21” of the ’105 Patent. Compl. ¶ 44; Opp’n
`
`at 7 n.1. In the Complaint, Immersion identified claim 19 as a representative claim. Compl. ¶ 45.
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`3
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 4 of 34
`
`
`
`Claim 19 differs from many of the other claims of the ’105 Patent because it does not appear to be
`
`limited to a touch screen or a touch input device.
`
`Independent claim 19 and dependent claims 20 and 21 recite:
`
`19. A haptic feedback device, comprising:
`
`one or more processors configured to receive an input signal and generate a
`force signal based on the input signal,
`
`wherein the input signal is associated with a user-independent event,
`
`the user-independent event comprising one or more of a reminder event, an
`initiation of a task, a processing of the task, a conclusion of the task, a receipt
`of an email, or an event occurring in a game; and
`
`one or more actuators configured to receive the force signal and impart a
`haptic effect based on the force signal.
`
`20. The haptic feedback device of claim 19, wherein the haptic feedback device
`comprises a portable computing device, a PDA, a pager, or a cellular phone.
`
`21. The haptic feedback device of claim 19, wherein the [haptic feedback]2 device
`comprises a touch screen, a touch pad, or a keypad.
`
`’105 patent at col. 18:42-58.
`
`3. The ’299 Patent
`
`The ’299 Patent is titled “Apparatus and Method for Providing Condition-Based
`
`Vibrotactile Feedback.” Compl. Exh. B (’299 patent). It was filed on May 4, 2009 and was issued
`
`on January 8, 2013. Id.
`
`The ’299 Patent generally relates to systems and methods for monitoring motion
`
`parameters of an object manipulated by a user and providing notification once a certain target is
`
`reached. ’299 patent abstract; ’299 patent at col. 2:9-11. In some embodiments and in the claims
`
`asserted here, notification is provided in the form of haptic feedback. ’299 patent at col. 2:23-24,
`
`col. 12:27-67, col. 13:4-5. For example, one embodiment discussed at length in the specification
`
`is a toothbrush that monitors the number of brush strokes that a user has completed. Id. at col.
`
`1:23-col. 5:15 & fig. 1. The monitoring system “includes a motion sensing device 20, a
`
`
`2 Claim 21 initially used the phrase “touch input device” here, but the patent was officially
`corrected to replace “touch input” with “haptic feedback.” See ECF No. 1-1 at 23.
`4
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 5 of 34
`
`
`
`processing device 22, and an alerting device 24. Motion sensing device 20 detects motion of
`
`toothbrush 10 caused by the user manipulating toothbrush 10, and more particularly may detect
`
`motion only in a regular brushing pattern.” Id. at col. 4:20-25. The specification discloses several
`
`embodiments of a motion sensing device, including an accelerometer, a combination of at least
`
`one magnetic element and at least one electrical element, a “ball in a cage” configuration, and a
`
`force sensor including a piezoelectric element. Id. at col. 5:40-col. 6:32.
`
`The processing device “is associated with or includes a counter that is configured to count
`
`the number of strokes or stroke cycles to determine when a predetermined threshold is reached.”
`
`Id. at col. 4:30-33. “When the accumulative total reaches a predetermined threshold, processing
`
`device 22 determines that the user has brushed for an adequate amount.” Id. at col. 4:46-50.
`
`“When it is determined that the threshold is reached, processing device 22 instructs alerting device
`
`24 to send an alert to the user indicating that the threshold has been reached.” Id. at col. 4:55-58.
`
`In addition to the toothbrush, the specification describes other embodiments including a
`
`manual ventilator and an exercise strap with vibrotactile feedback. Id. at col. 8:59-col. 10:20 &
`
`fig. 6, col. 10:21-col. 11:10 & fig. 7.
`
`Immersion asserts “at least claims 14, 15, 16, 18, 20 and 22” of the ’299 Patent. Compl.
`
`¶ 56. In the Complaint, Immersion identified claim 14 as a representative claim. Id. ¶ 57. The
`
`asserted claims recite:
`
`14. An apparatus comprising:
`
`a sensor that senses motion of at least a portion of the apparatus and provides
`a sensor output based on the sensed motion;
`
`a timer that provides a periodic timer output;
`
`a vibrotactile device responsive to the timer that provides a corresponding
`periodic haptic output; and
`
`a processing device that receives the sensor output and accumulates counts
`associated with the sensor output, the processing device providing an output to
`the vibrotactile device providing an output to the vibrotactile device once a
`threshold associated with the accumulated counts is reached.
`
`15. The apparatus of claim 14, wherein the periodic timer output is adjustable.
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`5
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 6 of 34
`
`
`
`16. The apparatus of claim 14, wherein the periodic timer output is user-
`selectable.
`
`18. The apparatus of claim 14, wherein the sensor comprises an accelerometer.
`
`20. An apparatus comprising:
`
`a housing;
`
`a sensor coupled to the housing that senses motion of the housing and
`provides a sensor output based on if the sensed motion exceeds a
`predetermined threshold;
`
`a timer coupled to the housing that measures at least one time period and
`provides a timer output on expiration of the at least one time period; and
`
`a vibrotactile device that provides a haptic output based on the sensor output if
`the vibrotactile device receives the sensor output before the timer output and
`provides the haptic output and provides the haptic output based on the timer
`output if the vibrotactile device receives the timer output before the sensor
`output.
`
`22. The apparatus of claim 20, wherein the sensor comprises an accelerometer.
`
`’299 patent at col. 12:27-col. 13:4-5.
`
`4. The ’301 Patent
`
`The ’301 Patent is titled “Systems and Methods for Transmitting Haptic Messages.”
`
`Compl. Exh. C (’301 patent). It was filed on July 14, 2009 and was issued on January 28, 2014.
`
`The ’301 Patent is “directed to systems and methods for mobile devices to be configured to
`
`exchange data or messages with each other via network interfaces and provide haptic effects
`
`partially based on the exchanged data or messages transmitting haptic messages.” Compl. ¶ 35.
`
`The specification identifies a mobile phone as an illustrative embodiment. ’301 patent at col.
`
`2:58-59. The illustrative device contains a “display, a user interface device, memory, and a
`
`processor in communication with each of these elements.” Id. at col. 3:1-3. The illustrative
`
`device also contains a “sensor configured to sense a user’s physical interaction with the mobile
`
`device,” and an actuator “configured to output a haptic effect to the user.” Id. at col. 3:8-9.
`
`Figure 18 illustrates the steps of the overall operation of one of the methods of transmitting
`
`haptic messages:
`
`
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`6
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 7 of 34
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`The specification provides details about implementing the steps in the process. “Users
`
`may interact with the user interface through movements or gestures,” which the sensors detect.
`
`’301 patent at col. 7:7-9. “As the user tilts, shakes, thrusts, or otherwise moves mobile device 102,
`
`the one or more sensors 114 detect these movements” and send signals to the processor. Id. at col.
`
`7:9-13. “The signals may comprise one or more of: angle of the movement, speed of the
`
`movement, distance covered by the movement, or X-Y orientation of the movement.” Id. at col.
`
`7:13-16; see also id. at col. 24:22-35 (describing different user movements). The processor then
`
`determines a change in a display of the mobile device based at least in part on the sensor signals.
`
`Id. col. 24:51-53. “Next, the processor 110 transmits a first data signal to a second mobile device,
`
`the first data signal comprising data associated with the user interaction and the movement of the
`
`first mobile device 1808.” Id. at col. 24:63-66.
`
`“Then, the processor 110 receives a second data signal from the second mobile device
`
`1810.” Id. at col. 25:6-7. “Next, processor 110 determines a second change in the display of the
`
`first mobile device based at least in part on the second data signal 1812.” Id. at col. 25:15-17.
`
`“For example, the user of the second mobile device may move their finger across the second
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`7
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 8 of 34
`
`
`
`mobile device to draw a picture. The second mobile device may then transmit a corresponding
`
`second signal to the first mobile device. The processor 110 of the first mobile device may then
`
`modify its display in a way that substantially correspond[s] to the display of the second mobile
`
`device.” Id. at col. 25:22-28.
`
`“Then, processor 110 determines a haptic effect based at least in part on the second data
`
`signal 1814.” Id. at col. 25:33-34. In some embodiments, a user may embed a haptic effect into a
`
`message. Id. at col. 10:19-20. “For example, in one embodiment a user may send a message
`
`including the word ‘love.’ In such an embodiment, the user may append a haptic effect
`
`comprising a beating heart to the word love. Then the recipient can feel the beating heart when
`
`the recipient interacts with the word love.” Id. at col. 10:41-46.
`
`“Finally, the processor 110 transmits a haptic signal associated with the haptic effect to an
`
`actuator 118 configured to output the haptic effect.” Id. at col.25:49-51.
`
`Immersion asserts “at least claims 27, 28, 29 and 31” of the ’301 Patent. Compl. ¶ 67. In
`
`the Complaint, Immersion identified claim 27 as a representative claim. Id. ¶ 68. The asserted
`
`claims recite:
`
`27. A system comprising:
`
`a processor configured to:
`
`receive a first sensor signal from a first sensor, the first sensor configured to
`detect a movement of a first mobile device;
`
`receive a second sensor signal from a second sensor, the second sensor
`configured to detect an interaction with the first mobile device;
`
`receive a first data signal from a network interface, the network interface
`configured to receive signals transmitted by a second mobile device;
`
`determine a change in a display signal based at least in part on the first data
`signal and the second sensor signal;
`
`determine a haptic effect based at least in part on the first data signal; and
`
`outputting [sic] the haptic effect.
`
`28. The system of claim 27, wherein the first sensor and the second sensor are
`each configured to detect one or more of: contact, pressure, acceleration,
`inclination, inertia, or location.
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`8
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 9 of 34
`
`
`
`29. The system of claim 27, wherein the second sensor comprises a touch-screen.
`
`31. The system of claim 27, wherein the processor is further configured to
`transmit a second data signal to the network interface, and the network interface is
`further configured to transmit the second data signal to the second mobile device.
`
`’301 patent at col. 28:26-54.
`
`B.
`
`Procedural History
`
`On July 10, 2017, Immersion filed the instant patent infringement suit. ECF No. 1.
`
`Immersion alleges that Fitbit “ha[s] infringed and continue[s] to infringe, directly and indirectly
`
`through induced and/or contributory infringement,” the patents-in-suit. Id. ¶ 41. The products
`
`accused include the Fitbit Flex, Fitbit Flex 2, Fitbit Alta, Fitbit Alta HR, Fitbit Charge, Fitbit
`
`Charge 2, Fitbit Charge HR, Fitbit Blaze, and Fitbit Surge. Id.
`
`On October 4, 2017, Fitbit filed the instant motion to dismiss. ECF No. 23 (“Mot.”). On
`
`November 1, 2017, Immersion filed an opposition. ECF No. 36 (“Opp’n”). On November 17,
`
`2017, Fitbit filed a reply. ECF No. 41 (“Reply”).
`
`II.
`
`LEGAL STANDARD
`
`A. Motion to Dismiss Under Federal Rule of Civil Procedure 12(b)(6)
`
`Pursuant to Federal Rule of Civil Procedure 12(b)(6), a defendant may move to dismiss an
`
`action for failure to allege “enough facts to state a claim to relief that is plausible on its face.” Bell
`
`Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the
`
`plaintiff pleads factual content that allows the court to draw the reasonable inference that the
`
`defendant is liable for the misconduct alleged. The plausibility standard is not akin to a
`
`‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted
`
`unlawfully.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted).
`
`For purposes of ruling on a Rule 12(b)(6) motion, the Court “accept[s] factual allegations
`
`in the complaint as true and construe[s] the pleadings in the light most favorable to the nonmoving
`
`party.” Manzarek v. St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008).
`
`Nonetheless, the Court is not required to “‘assume the truth of legal conclusions merely because
`
`they are cast in the form of factual allegations.’” Fayer v. Vaughn, 649 F.3d 1061, 1064 (9th Cir.
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`9
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 10 of 34
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`2011) (quoting W. Mining Council v. Watt, 643 F.2d 618, 624 (9th Cir. 1981)). Mere “conclusory
`
`allegations of law and unwarranted inferences are insufficient to defeat a motion to dismiss.”
`
`Adams v. Johnson, 355 F.3d 1179, 1183 (9th Cir. 2004). Furthermore, “‘[a] plaintiff may plead
`
`[him]self out of court’” if he “plead[s] facts which establish that he cannot prevail on his . . .
`
`claim.” Weisbuch v. County of Los Angeles, 119 F.3d 778, 783 n.1 (9th Cir. 1997) (quoting
`
`Warzon v. Drew, 60 F.3d 1234, 1239 (7th Cir. 1995)).
`
`B. Motion to Dismiss for Patent Eligibility Challenges Under 35 U.S.C. § 101
`
`Fitbit’s motion argues that the patents-in-suit fail to claim patent-eligible subject matter
`
`under 35 U.S.C. § 101 in light of the U.S. Supreme Court’s decision in Alice Corp. Pty. Ltd. v.
`
`CLS Bank International, 134 S. Ct. 2347 (2014). The ultimate question whether a claim recites
`
`patent-eligible subject matter under § 101 is a question of law. Intellectual Ventures I LLC v.
`
`Capital One Fin. Corp., 850 F.3d 1332, 1338 (Fed. Cir. 2017) (“Patent eligibility under § 101 is
`
`an issue of law[.]”); In re Roslin Inst. (Edinburgh), 750 F.3d 1333, 1335 (Fed. Cir. 2014) (same).
`
`However, the Federal Circuit has identified that there are certain factual questions underlying the
`
`§ 101 analysis. See Berkheimer v. HP Inc., 881 F.3d 1360, 1368-69 (Fed. Cir. 2018).
`
`Accordingly, a district court may resolve the issue of patent eligibility under § 101 by way of a
`
`motion to dismiss. See, e.g., Secured Mail Sols. LLC v. Universal Wilde, Inc., 873 F.3d 905, 912
`
`(Fed. Cir. 2017) (affirming determination of ineligibility made on 12(b)(6) motion); Content
`
`Extraction & Transmission LLC v. Wells Fargo Bank, Nat’l Ass’n, 776 F.3d 1343, 1345 (Fed. Cir.
`
`2014) (same).
`
`Although claim construction is often desirable, and may sometimes be necessary, to
`
`resolve whether a patent claim is directed to patent-eligible subject matter, the Federal Circuit has
`
`explained that “claim construction is not an inviolable prerequisite to a validity determination
`
`under § 101.” Bancorp Servs., L.L.C. v. Sun Life Assurance Co. of Can. (U.S.), 687 F.3d 1266,
`
`1273 (Fed. Cir. 2012). Where the court has a “full understanding of the basic character of the
`
`claimed subject matter,” the question of patent eligibility may properly be resolved on the
`
`pleadings. Content Extraction, 776 F.3d at 1349; see also Genetic Techs. Ltd. v. Bristol-Myers
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`10
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 11 of 34
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Squibb Co., 72 F. Supp. 3d 521, 539 (D. Del. 2014), aff’d sub nom. Genetic Techs. Ltd. v. Merial
`
`L.L.C., 818 F.3d 1369 (Fed. Cir. 2016).
`
`C.
`
`Substantive Legal Standards Applicable Under 35 U.S.C. § 101
`
`1. Patent-Eligible Subject Matter Under 35 U.S.C. § 101
`
`Section 101 of Title 35 of the United States Code “defines the subject matter that may be
`
`patented under the Patent Act.” Bilski v. Kappos, 561 U.S. 593, 601 (2010). Under § 101, the
`
`scope of patentable subject matter encompasses “any new and useful process, machine,
`
`manufacture, or composition of matter, or any new and useful improvement thereof.” Id. (quoting
`
`35 U.S.C. § 101). These categories are broad, but they are not limitless. Section 101 “contains an
`
`important implicit exception: Laws of nature, natural phenomena, and abstract ideas are not
`
`patentable.” Alice, 134 S. Ct. at 2354 (citation omitted). These three categories of subject matter
`
`are excepted from patent-eligibility because “they are the basic tools of scientific and
`
`technological work,” which are “free to all men and reserved exclusively to none.” Mayo
`
`Collaborative Servs. v. Prometheus Labs., Inc., 566 U.S. 66, 71 (2012) (citations omitted). The
`
`U.S. Supreme Court has explained that allowing patent claims for such purported inventions
`
`would “tend to impede innovation more than it would tend to promote it,” thereby thwarting the
`
`primary object of the patent laws. Id. However, the U.S. Supreme Court has also cautioned that
`
`“[a]t some level, all inventions embody, use, reflect, rest upon, or apply laws of nature, natural
`
`phenomena, or abstract ideas.” Alice, 134 S. Ct. at 2354 (alteration, internal quotation marks, and
`
`citation omitted). Accordingly, courts must “tread carefully in construing this exclusionary
`
`principle lest it swallow all of patent law.” Id.
`
`In Alice, the leading case on patent-eligible subject matter under § 101, the U.S. Supreme
`
`Court refined the “framework for distinguishing patents that claim laws of nature, natural
`
`phenomena, and abstract ideas from those that claim patent-eligible applications of those
`
`concepts” originally set forth in Mayo, 566 U.S. at 77. Alice, 134 S. Ct. at 2355. This analysis,
`
`generally known as the “Alice” framework, proceeds in two steps as follows:
`
`First, we determine whether the claims at issue are directed to one of those patent-
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`11
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 12 of 34
`
`
`
`ineligible concepts. If so, we then ask, “[w]hat else is there in the claims before
`us?” To answer that question, we consider the elements of each claim both
`individually and “as an ordered combination” to determine whether the additional
`elements “transform the nature of the claim” into a patent-eligible application.
`We have described step two of this analysis as a search 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.”
`
`Id. (alterations in original) (citations omitted); see also In re TLI Commc’ns LLC Patent Litig., 823
`
`F.3d 607, 611 (Fed. Cir. 2016) (describing “the now familiar two-part test described by the [U.S.]
`
`Supreme Court in Alice”).
`
`2. Alice Step One—Identification of Claims Directed to an Abstract Idea
`
`Neither the U.S. Supreme Court nor the Federal Circuit has set forth a bright-line test
`
`separating abstract ideas from concepts that are sufficiently concrete so as to require no further
`
`inquiry under the first step of the Alice framework. See, e.g., Alice, 134 S. Ct. at 2357 (noting that
`
`“[the U.S. Supreme Court] need not labor to delimit the precise contours of the ‘abstract ideas’
`
`category in this case”); DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245, 1256 (Fed. Cir.
`
`2014) (observing that the U.S. Supreme Court did not “delimit the precise contours of the ‘abstract
`
`ideas’ category” in Alice (citation omitted)). As a result, in evaluating whether particular claims
`
`are directed to patent-ineligible abstract ideas, courts have generally begun by “compar[ing]
`
`claims at issue to those claims already found to be directed to an abstract idea in previous cases.”
`
`Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1334 (Fed. Cir. 2016).
`
`Two of the U.S. Supreme Court’s leading cases concerning the “abstract idea” exception
`
`involved claims held to be abstract because they were drawn to longstanding, fundamental
`
`economic practices. See Alice, 134 S. Ct. at 2356 (claims “drawn to the concept of intermediated
`
`settlement, i.e., the use of a third party to mitigate settlement risk” were directed to a patent-
`
`ineligible abstract idea); Bilski, 561 U.S. at 611-12 (claims drawn to “the basic concept of
`
`hedging, or protecting against risk” were directed to a patent-ineligible abstract idea because
`
`“[h]edging is a fundamental economic practice long prevalent in our system of commerce and
`
`taught in any introductory finance class” (citation omitted)).
`
`Case No. 17-CV-03886-LHK
`ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS
`
`12
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Northern District of California
`
`United States District Court
`
`

`

`Case 5:17-cv-03886-LHK Document 63 Filed 03/05/18 Page 13 of 34
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`Similarly, the U.S. Supreme Court has recognized that information itself is intangible. See
`
`Microsoft Corp. v. AT & T Corp., 550 U.S. 437, 451 n.12 (2007). Accordingly, the Federal
`
`Circuit has generally found claims abstract where they are directed to some combination of
`
`acquiring information, analyzing information, and/or displaying the results of that analysis. See
`
`FairWarning IP, LLC v. Iatric Sys., Inc., 839 F.3d 1089, 1094-95 (Fed. Cir. 2016) (claims
`
`“directed to collecting and analyzing information to detect misuse and notifying a user when
`
`misuse is detected” were drawn to a patent-ineligible abstract idea); Elec. Power Grp., LLC v.
`
`Alstom S.A., 830 F.3d 1350, 1354 (Fed. Cir. 2016) (claims directed to an abstract idea because
`
`“[t]he advance they purport to make is a process of gathering and analyzing information of a
`
`specified content, then displaying the results, and not any particular assertedly inventive
`
`technology for performing those functions”); In re TLI Commc’ns LLC, 823 F.3d at 611 (claims
`
`were “directed to the abstract idea of classifying and storing digital images in an organized
`
`manner”); see also Elec. Power Grp., 830 F.3d at 1353-54 (collecting cases).
`
`However, the determination of whether other types of computer-implemented claims are
`
`abstract has proven more “elusive.” See, e.g., Internet Patents Corp. v. Active Network, Inc., 790
`
`F.3d 1343, 1345 (Fed. Cir. 2015) (“[P]recision has been elusive in defining an all-purpose
`
`boundary between the abstract and the concrete[.]”). As a result, in addition to comparing claims
`
`to prior U.S. Supreme Court and Federal Circuit precedents, courts considering computer-
`
`implemented inventions have taken varied approaches to determining whether particular claims
`
`are directed to an abstract idea.
`
`For example, courts have considered whether the claims “purport to improve the
`
`functioning of the computer itself,” Alice, 134 S. Ct. at 2359, which may suggest that the claims
`
`are not abstract, or instead whether “computers are invoked merely as a tool” to carry out an
`
`abstract process, Enfish, 822 F.3d at 1336; see also id. at 1335 (“[S]ome

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


Or .

Accessing this document will incur an additional charge of $.

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

Accept $ Charge
throbber

Still Working On It

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

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

throbber

A few More Minutes ... Still Working

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

Thank you for your continued patience.

This document could not be displayed.

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

Your account does not support viewing this document.

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

Your account does not support viewing this document.

Set your membership status to view this document.

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

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

Become a Member

One Moment Please

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

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

Your document is on its way!

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

Sealed Document

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

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


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket