Electronic Scripting Products, Inc. v. HTC America, Inc. et al
Filing
47
ORDER by Judge Richard Seeborg Granting 37 Motion to Dismiss. (cl, COURT STAFF) (Filed on 3/16/2018)
1
2
3
4
UNITED STATES DISTRICT COURT
5
NORTHERN DISTRICT OF CALIFORNIA
6
7
ELECTRONIC SCRIPTING PRODUCTS,
INC.,
Plaintiff,
8
9
10
United States District Court
Northern District of California
11
12
13
Case No. 17-cv-05806-RS
ORDER GRANTING MOTION TO
DISMISS
v.
HTC AMERICA INC.,
Defendant.
INTRODUCTION
Plaintiff Electronic Scripting Products, Inc. (“ESPI”) brings this suit against HTC
14
America, Inc. (“HTC”) and Valve Corporation (“Valve”) averring both direct and induced
15
infringement of United States Patent Nos. 9,235,934 (“the ‘934 Patent”) and 8,553,935 (“the ‘935
16
Patent,” and together with the ‘934 Patent, the “Patents”). The Patents pertain to the measuring of
17
three-dimensional pose and orientation using on-board photodetectors and stationary light sources
18
for virtual reality applications. Valve has since been voluntarily dismissed by ESPI. HTC moves
19
to dismiss on the grounds that the Patents are directed to patent-ineligible subject matter under 35
20
U.S.C. § 101, as well as for failure to state a claim. Because the Patents are not directed to patent-
21
ineligible concepts but ESPI’s Complaint (“Compl.”) nonetheless fails to state a claim, HTC’s
22
motion to dismiss is granted with leave to amend.
23
BACKGROUND
24
ESPI is the owner of United States Patent Nos. 9,235,934 and 8,553,935, issued on
25
October 8, 2013, and January 12, 2016, respectively. The Patents’ object is “to introduce a
26
particularly effective optical navigation apparatus and methods for optically inferring or
27
measuring the absolute pose of objects manipulated in real three-dimensional environments.” See
28
Declaration of Evan S. Day, Ex. 1 (“‘935 Patent”) at 5:6–9; Ex. 2 (“‘934 Patent”) at 5:6–9. “Pose”
1
is the three-dimensional position of an object, measured along the x-, y-, and z-axes, and when
2
combined with the three inclination angles, is known as “absolute pose”; the Patents measure
3
absolute pose by using light and photo-detection. The Patents describe “a system that has a
4
remote control equipped with a relative motion sensor,” and “at least one light source and a
5
photodetector that detects” the light from the light source(s) and “outputs data indicative of the
6
detected light.” ‘935 Patent at 5:21–27; ‘934 Patent at 5:21–27.
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
For example, Figure 23 provides an illustration of one embodiment of the system, a
23
“virtual reality simulation program” in which “a military drill” runs on a computer display and
24
tracks the position of the military trainee using wearable glasses, and the aim of the trainee using a
25
gun or laser shooter. ‘935 Patent at 40:23–24; ‘934 Patent at 42:15–16. In this embodiment, there
26
are two manipulated objects, namely the wearable glasses and the gun, each of which is equipped
27
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
2
1
with an on-board optical measuring arrangement. These arrangements detect light from a
2
stationary external source, which in turn is connected to the computer. Together, the system
3
processes the pose and orientation of the trainee.
The specific claims of the Patents at issue are Claim 12 of the ‘935 Patent and Claim 1 of
4
5
the ‘934 Patent. Claim 12 of the ‘935 Patent states:
A system comprising a manipulated object, said system comprising:
a) a first plurality of predetermined light sources disposed at known positions in world
coordinates;
b) a photodetector mounted on-board said manipulated object for generating light data
indicative of light detected from said first plurality of light sources;
c) a relative motion sensor mounted on-board said manipulated object for generating
relative motion data indicative of a change in an orientation of said manipulated object;
and
d) a processor for determining the pose of said manipulated object based on said light data
and said relative motion data, wherein said pose is determined with respect to said
world coordinates.
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
‘935 Patent at 52:5–20. Claim 1 of the ‘934 Patent states:
A wearable article cooperating with a first plurality of predetermined light sources
disposed in a known pattern, said wearable article comprising:
a) a photodetector configured to detect said first plurality of predetermined light sources
and generate photodetector data representative of the positions of said first plurality of
predetermined light sources; and
b) a controller configured to identify a derivative pattern of said first plurality of
predetermined light sources from said photodetector data, wherein said derivative
pattern is indicative of the position of said photodetector.
‘934 Patent at 51:6–16.
ESPI filed suit against HTC and Valve on October 9, 2017, averring both direct and
21
22
23
24
25
26
27
induced infringement of the ‘934 and ‘935 Patents through defendants’ “VIVE devices.” Compl.
¶ 7.
LEGAL STANDARD
Under Federal Rule of Procedure 12(b)(6), a district court must dismiss a complaint if it
fails to state a claim upon which relief can be granted. To survive a Rule 12(b)(6) motion to
dismiss, the plaintiff must allege “enough facts to state a claim to relief that is plausible on its
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
3
1
face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is facially plausible when
2
the plaintiff pleads facts that “allow[] the court to draw the reasonable inference that the defendant
3
is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation
4
omitted). While courts do not require “heightened fact pleading of specifics,” a plaintiff must
5
allege facts sufficient to “raise a right to relief above the speculative level.” Twombly, 550 U.S. at
6
555, 570. In deciding whether the plaintiff has stated a claim upon which relief can be granted,
7
the court accepts the plaintiff’s allegations as true and draws all reasonable inferences in favor of
8
the plaintiff. See Usher v. City of Los Angeles, 828 F.2d 556, 561 (9th Cir. 1987). The court is
9
not required to accept as true “allegations that are merely conclusory, unwarranted deductions of
fact, or unreasonable inferences.” In re Gilead Scis. Sec. Litig., 536 F.3d 1049, 1055 (9th Cir.
11
United States District Court
Northern District of California
10
2008).
To state a claim for patent infringement, “a patentee need only plead facts sufficient to
12
13
place the alleged infringer on notice. This requirement ensures that the accused infringer has
14
sufficient knowledge of the facts alleged to enable it to answer the complaint and defend itself.”
15
Phonometrics, Inc. v. Hosp. Franchise Sys., Inc., 203 F.3d 790, 794 (Fed. Cir. 2000). The Federal
16
Circuit has “repeatedly recognized that in many cases it is possible and proper to determine patent
17
eligibility under 35 U.S.C. § 101 on a Rule 12(b)(6) motion.” Genetic Techs. Ltd. v. Merial
18
L.L.C., 818 F.3d 1269, 1373 (Fed. Cir. 2016). In such circumstances where it is possible and
19
proper, “claim construction is not an inviolable prerequisite to a validity determination under §
20
101.” Bancorp Servs., L.L.C. v. Sun Life Assurance Co. of Can., 687 F.3d 1266, 1273 (Fed. Cir.
21
2012).
DISCUSSION
22
23
24
I.
Alice Motion
Under Section 101 of the Patent Act, “[w]hoever invents or discovers any new and useful
25
process, machine, manufacture, or composition of matter, or any new and useful improvement
26
thereof, may obtain a patent therefor . . . .” 35 U.S.C. § 101. The Supreme Court “has long held
27
that this provision contains an important implicit exception: Laws of nature, natural phenomena,
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
4
1
and abstract ideas are not patentable.” Alice Corp. Pty. Ltd. v. CLS Bank Int’l, 134 S. Ct. 2347,
2
2354 (2014). While the reasoning behind the exception is clear––“such discoveries are
3
manifestations of . . . nature, free to all men and reserved exclusively to none,” Mayo
4
Collaborative Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289, 1293 (2012) (internal quotation
5
marks and citations omitted)––the boundaries of the exception are not quite so obvious.
6
The Alice court highlighted “the concern that drives this exclusionary principle as one of
pre-emption.” Alice, 134 S. Ct. at 2354 (noting the delicate balance inherent in promoting
8
progress, the primary object of patent law, and granting a monopoly, the means for accomplishing
9
that goal). In other words, patents that seek wholly to preempt others from using a law of nature
10
or an abstract idea––“the basic tools of scientific and technological work”––are invalid. Id. Alice
11
United States District Court
Northern District of California
7
warns, nonetheless, that “we treat carefully in construing this exclusionary principle lest it
12
swallow all of patent law. At some level, all inventions . . . embody use, reflect, rest upon, or
13
apply laws of nature, natural phenomena, or abstract ideas.” Id. (internal quotation marks and
14
citations omitted). A patent may thus “involve[] an abstract concept” so long as it is applied “to a
15
new and useful end.” Id. “Accordingly, in applying the § 101 exception, we must distinguish
16
between patents that claim the buildin[g] block[s] of human ingenuity and those that integrate the
17
building blocks into something more, thereby transform[ing] them into a patent-eligible
18
invention.” Id. (internal quotation marks and citations omitted).
19
In evaluating whether claims are patent eligible, a court must first “determine whether the
20
claims at issue are directed to one of those patent-ineligible concepts.” Alice, 134 S. Ct. at 2355.
21
“[T]he ‘directed to’ inquiry applies a stage-one filter to claims, considered in light of the
22
specification, based on whether their character as a whole is directed to excluded subject matter.”
23
Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016) (internal quotation marks
24
omitted). Although there is no brightline rule for determining whether a claim is directed to an
25
abstract idea, courts have articulated some guiding principles. When evaluating computer-related
26
claims, courts look to whether the claims “improve the functioning of the computer itself,” Alice,
27
134 S. Ct. at 2359, or whether “computers are invoked merely as a tool” to implement an abstract
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
5
1
2
process. Enfish, 822 F.3d at 1336.
If the claims are directed to a patent-ineligible concept, a court must then “consider the
elements of each claim both individually and as an ordered combination to determine whether the
4
additional elements transform the nature of the claim into a patent-eligible application.” Id. at
5
1334 (internal quotation marks and citations omitted). This step entails the “search for an
6
inventive concept––i.e., an element or combination of elements that is sufficient to ensure that the
7
patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.”
8
Alice, 134 S. Ct. at 2355 (internal quotation marks and citations omitted). “For the role of a
9
computer in a computer-implemented invention to be deemed meaningful in the context of this
10
analysis, it must involve more than performance of well-understood, routine, [and] conventional
11
United States District Court
Northern District of California
3
activities previously known to the industry.” Content Extraction & Transmission LLC v. Wells
12
Fargo Bank, N.A., 776 F.3d 1343, 1347–48 (Fed. Cir. 2014). “[T]he mere recitation of a generic
13
computer cannot transform a patent-ineligible abstract idea into a patent-eligible invention.” Id. at
14
1348. However, “an inventive concept can be found in the non-conventional and non-generic
15
arrangement of known, conventional pieces.” BASCOM Glob. Internet Servs., Inc. v. AT&T
16
Mobility LLC, 827 F.3d 1341, 1350 (Fed. Cir. 2016).
17
HTC asserts that ESPI’s claims are directed to patent-ineligible concepts because they
18
recite the abstract concepts of observing visible points in space and determining the pose and
19
orientation of an object relative to the viewer based on such data. They characterize ESPI’s claims
20
as an attempt to patent the abstract process of using objects as tools to determine one’s position, as
21
sailors have done by looking at the stars for centuries. ESPI responds that its claims provide a
22
novel solution to conventional three-dimensional pose recognition using a low-cost system
23
involving a photodetector and motion sensor mounted on a manipulated object that allows for use
24
in confined spaces. It claims that this approach offers numerous advantages over the conventional
25
prior art and is cabined by various limitations.
26
While the Federal Circuit has recognized “that it is not always easy to determine the
27
boundary between abstraction and patent-eligible subject matter,” several of its cases have offered
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
6
1
guiding principles. Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1347 (Fed. Cir.
2
2015); see also Parker v. Flook, 437 U.S. 584, 589 (1978) (“The line between a patentable
3
‘process’ and an unpatentable ‘principle’ is not always clear.”). HTC urges that this case is similar
4
to those in In re TLI Communications LLC Patent Litigation, 823 F.3d 607 (Fed. Cir. 2016), and
5
Content Extraction and Transmission LLC v. Wells Fargo Bank, N.A., 776 F.3d 1243 (Fed. Cir.
6
2014), in which the Federal Circuit concluded that the patents at issue were directed to abstract
7
concepts. In those cases, the claimed tangible components, a telephone unit and a scanner,
8
respectively, were “merely a conduit for the abstract idea.” TLI Comm’cns, 823 F.3d at 612
9
(describing the “abstract idea of classifying an image and storing the image based on its
classification”); see also Content Extraction, 776 F.3d at 1347 (describing “the abstract idea of 1)
11
United States District Court
Northern District of California
10
collecting data, 2) recognizing certain data within the collected data set, and 3) storing that
12
recognized data in a memory”).
13
ESPI, on the other hand, points to Thales Visionix Inc. v. United States, 850 F.3d 1343
14
(Fed. Cir. 2017). In that case, the Federal Circuit reviewed a patent that “disclose[d] an inertial
15
tracking system for tracking the motion of an object relative to a moving reference frame” using
16
inertial sensors mounted on both the tracked object and the moving reference claim. Id. at 1344–
17
45. The patent did “not use the conventional approach of measuring inertial changes with respect
18
to the earth,” but instead with respect to the moving reference frame, which in turn increased
19
accuracy and allowed for both simpler and independent operation. Id. at 1345. The court
20
concluded that the claims “[we]re not merely directed to the abstract idea of using mathematical
21
equations for determining the relative position of a moving object to a moving reference frame,”
22
but “[we]re directed to systems and methods that use inertial sensors in a non-conventional
23
manner to reduce errors in measuring the relative position and orientation of a moving object on a
24
moving reference frame.” Id. at 1348–49. HTC distinguishes Thales from the present case by
25
arguing that while Thales dealt with a specific configuration of elements and a particular
26
arrangement of sensors as an improvement over the prior art, ESPI’s Patents do not require any
27
particular configuration of either the photodetectors or light sources, nor is it an improvement over
28
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
7
1
2
the prior art.
Although a close call, ESPI’s claims are sufficiently similar to those in Thales to survive
3
dismissal on Alice grounds. While HTC argues that the claims do not rely on any particular
4
arrangement of the sensors or represent any improvement over the prior art, this mischaracterizes
5
what the Patents themselves state. The Patents specify that it is the remote control, or the
6
manipulated object, which is equipped with the relative motion sensors and the photodetector,
7
rather than the conventional method, in which photodetectors would be positioned in and around
8
the environment for determination of the manipulated object’s pose. The Patents describe a
9
number of other patents using the conventional method. For example, a previous patent uses a
distributed-processing motion capture system that uses light point devices as markers attached to
11
United States District Court
Northern District of California
10
the manipulated object, which are detected by stationary imaging cameras located in the
12
environment. These conventional approaches, however, “using markers on objects and cameras in
13
the environment to recover object position, orientation or trajectory are still too resource-intensive
14
for low-cost and low-bandwidth applications” “due to the large bandwidth needed to transmit
15
image data captured by cameras,” the cost of processing said image data, and the data network
16
complexity due to the use of several cameras in the environment and their synchronization. ‘935
17
Patent at 3:36–46.
18
ESPI thus recognized a “need for low-cost, robust and accurate apparatus for absolute
19
motion capture” that is “convenient and easy to use at high frame rates in close-range and confined
20
three-dimensional environments,” and accomplished this by reversing the usual placement of
21
markers and sensors and using only light sources. ‘935 Patent at 4:62–5:2. In its claims, the
22
manipulated object bears the sensors (the photodetector and the relative motion sensor), and the
23
markers (the light sources) are placed in a known and non-moving location in the environment.
24
This novel arrangement eliminates the need for multiple synchronized imaging cameras located in
25
the environment and also minimizes the bandwidth and processing needs of the system. For this
26
reason, unlike in TLI Communications or Content Extraction, the sensors are not mere conduits for
27
abstract principles, but instead their placement is integral to the improved functioning of the
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
8
1
system. As in Thales, ESPI’s claims are not merely directed to the abstract idea of observing
2
known points in space and determining their position and orientation, but rather are directed to
3
systems and methods that use photodetectors and relative motion sensors mounted on manipulated
4
objects to provide a low-cost method to determine absolute pose in close-range and confined
5
three-dimensional environments, ideal for virtual reality applications.
6
Nor do the asserted Patents disproportionately preempt the use of all virtual reality
7
products. The Patents themselves recognize the prior art and distinguish themselves from the
8
conventional method as discussed. Instead, the Patents provide a novel and nonconventional
9
approach that represents an improvement on the existing technology.
Even if the claims are directed to patent-ineligible concepts, however, they would
11
United States District Court
Northern District of California
10
nonetheless survive Alice’s “step two” because they contain an inventive concept. As discussed,
12
ESPI’s nonconventional arrangement of sensors on the manipulated object rather than in the
13
environment in combination with stationary light sources constitutes a sufficiently inventive
14
concept to transform the claims into patent-eligible subject matter. See BASCOM Glob. Internet
15
Servs., 827 F.3d at 1350 (“[A]n inventive concept can be found in the non-conventional and non-
16
generic arrangement of known, conventional pieces.”). While HTC argues that the Patents
17
recognize such an arrangement was already recognized by the prior art, the Patents distinguish
18
themselves from the preexisting use of on-board sensors. The ‘935 Patent provides the example of
19
another patent which uses a sensor “on-board the manipulated object,” but in combination with
20
“[a] projected image viewed by the sensor and generated by a separate mechanism, i.e., a
21
projection apparatus that imbues the projected image with characteristic image points [] to perform
22
the computation.” ‘935 Patent at 4:26–30. The ‘935 Patent explains, however, that the projected
23
image adds a layer of “complexity” due to “calibration and interaction problems,” and “is not
24
applicable to close-range and/or confined environments, and especially environments with typical
25
obstructions that interfere with line-of-sight conditions.” Id. at 4:38–44. It thus remedies these
26
limitations through use of on-board sensors in conjunction with stationary light sources, rather
27
than projected images, and may be used in “close-range, real three-dimensional environments
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
9
1
including constrained environments, living quarters and work-spaces.” Id. at 5:1214. This non-
2
conventional approach provides a simpler, less expensive, and more versatile framework that is
3
sufficiently inventive. For these reasons, HTC’s motion to dismiss on Alice grounds is denied.
II.
4
Sufficiency of the Pleadings
HTC also moves to dismiss ESPI’s claims for relief for failure to state a claim. HTC
5
6
argues that the Complaint does not provide specific factual allegations that distinguish between
7
HTC and co-defendant Valve, separate, unaffiliated companies, and therefore HTC has not
8
properly been put on notice as to its alleged unlawful actions. ESPI responds its Complaint avers
9
that defendants acted “jointly and severally” with respect to each factual allegation, therefore
putting HTC on notice “it is a party to each act and knowledge alleged in the complaint.” Opp. at
11
United States District Court
Northern District of California
10
16.
12
Upon review of the Complaint, HTC is correct that the averments are insufficient to put it
13
on notice—not only because it fails to distinguish between the two defendants, but also because it
14
simply provides conclusory statements that recite the legal definitions of direct and induced
15
infringement, rather than providing any specific factual material, or at a minimum showing how
16
HTC’s product uses the patent claim elements. Under Twombly and Iqbal, a complaint must “at
17
least contain factual allegations that the accused product practices every element of at least one
18
exemplary claim.” Novitaz, Inc. v. inMarket Media, LLC, No. 16-cv-06795-EJD, 2017 WL
19
2311407, at *3 (N.D. Cal. May 26, 2017). Without sufficient “factual allegations that would
20
permit a court to infer that a required element of the patent claim was satisfied, it is hard to see
21
how infringement would be ‘probable.’” Id.
22
As in Novitaz, ESPI has failed to make “plausible allegations about how the accused
23
products practices the elements of any claim of the patent[s].” Novitaz, 2017 WL 2311407, at *3.
24
ESPI makes no attempt at all to walk through the elements of the claims at issue, nor provide any
25
information about how HTC’s product functions. The only factual allegations that provide any
26
background or specificity at all are as follows:
Commencing within the last two years in the United States of America, defendants have
jointly and collectively tested, demonstrated, provided instructions for, provided training
27
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
10
1
2
3
4
5
6
7
8
9
10
United States District Court
Northern District of California
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
for, marketed, made, used, offered to sell, sold, and imported their VIVE devices
(“Devices”). The model name/numbers of the defendants’ devices include, without
limitation, VIVE.
Compl. ¶ 7. Other than these two sentences, the remainder of ESPI’s Complaint very briefly states
two claims for relief that provide only legal conclusions. For example, in ESPI’s claim for direct
infringement of the Patents, the Complaint merely states that “defendants have used, tested,
demonstrated, manufactured, imported, promoted, marketed, offered for sale, and/or sold the
Devices by using one or more of plaintiff’s Claims” and could only have “accomplished the
foregoing activities” by “utiliz[ing] one or more of plaintiff’s Claims.” Id. ¶ 8. The Complaint
offers no factual allegations about what the VIVE devices are or how they function, how they
utilize ESPI’s claims, or any information about them at all whatsoever that would put any
defendant on notice of its allegedly infringing conduct. Indeed, ESPI makes no attempt even to
parrot the claim language. ESPI’s claim for induced infringement is similarly bare and
conclusory. For these reasons, ESPI’s Complaint must be dismissed for failure to state a claim.
ESPI is granted leave to amend should it be able to provide more detailed material to its claims.
Because ESPI may amend its claims, the sufficiency of ESPI’s allegations regarding
HTC’s knowledge, egregious behavior, and willfulness will also be addressed. HTC argues that
the Complaint fails to allege facts showing that HTC had knowledge of the Patents, as is necessary
for a willful and induced infringement claim. ESPI responds that in light of the Supreme Court’s
decision in Halo Electronics, Inc. v. Pulse Electronics, Inc., 135 S. Ct. 1923 (2016), it need not
plead the “‘who, what and when’ as to notice.” Opp. at 16. Cases postdating Halo, however,
confirm that ESPI’s contention is incorrect. See, e.g., Novitaz, 2017 WL 2311407, at *5
(“[W]illfulness . . . is still a factual determination that a court must make, and district courts have
continued, post-Halo, to treat it as a separate claim that can be subject to a motion to dismiss.”);
Finjan, Inc. v. Cisco Sys. Inc., No. 17-cv-00072-BLF, 2017 WL 2462423, at *4 (N.D. Cal. June 7,
2017) (“District courts have continued to enforce this requirement [of knowledge] in evaluating
the sufficiency of willfulness claims.”).
Here, ESPI provides nothing more than its conclusory statement that “Plaintiff’s Patents
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
11
1
were well known to defendants at all times relevant hereto, plaintiff having given each defendant
2
written notice of the Patents.” Compl. ¶ 6. ESPI provides no information as to what the written
3
notice entailed or when it was delivered to, or received by, HTC such that HTC’s knowledge could
4
reasonably be inferred. Nor are ESPI’s allegations regarding “defendant’s exercise of due
5
diligence pertaining to intellectual property affecting its Devices,” id. ¶ 13, sufficient to establish
6
knowledge. See Nanosys, Inc. v. QD Vision, Inc., No. 16-cv-01957-YGR, 2016 WL 4943006, at
7
*4 (N.D. Cal. Sept. 16, 2016) (finding allegation that defendant’s “founders and key employees
8
were, at least, aware of and knowledgeable about developments and advances in the field and
9
patent filings through their activities conducted through industry conferences, research, and
development” insufficient to support an inference of pre-suit knowledge of patent). ESPI’s failure
11
United States District Court
Northern District of California
10
to allege pre-suit knowledge is fatal to its willful and induced infringement claim.
For the same reasons, ESPI falls woefully short of sufficiently pleading egregious behavior
12
13
and willfulness. ESPI must provide factual allegations that are specific to HTC’s conduct and do
14
not merely recite the elements of the statutory violations, but rather provide factual material that
15
puts HTC on notice of its allegedly unlawful actions. For these reasons, ESPI’s claims are
16
dismissed with leave to amend.
CONCLUSION
17
For the foregoing reasons, HTC’s motion to dismiss the Complaint for failure to state a
18
19
claim is granted. ESPI is granted leave to amend its Complaint within 20 days of the date of this
20
Order.
21
22
IT IS SO ORDERED.
23
24
25
26
Dated: 3/16/18
______________________________________
RICHARD SEEBORG
United States District Judge
27
ORDER GRANTING MOTION TO DISMISS
CASE NO. 17-cv-05806-RS
28
12
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?