Certusview Technologies, LLC v. S & N Locating Services, LLC et al

Filing 545

OPINION AND ORDER Denying 533 Motion for Reconsideration. Plaintiff's Motion for Partial Reconsideration of the Court's Judgment of Patent Ineligibility under 35 U.S.C. § 101, ECF No. 533, is DENIED. As no pertinent issues remain f or resolution on Plaintiff's First Amended Complaint, ECF No. 55, and as the Court has previously entered judgment on Defendants' declaratory judgment counterclaim for inequitable conduct, see ECF No. 542, the Clerk is REQUESTED to enter final judgment in Defendants' favor on Plaintiff's First Amended Complaint pursuant to Rule 58 of the Federal Rules of Civil Procedure. IT IS SO ORDERED. Signed by District Judge Mark S. Davis and filed on 8/10/16. Copies distributed to all parties 8/10/16. (ldab, )

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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF VIRGINIA Norfolk Division CERTUSVIEW TECHNOLOGIES, LLC, Plaintiff, Civil No. v. 2:13cv346 S&N LOCATING SERVICES, LLC, and S&N COMMUNICATIONS, INC., Defendants. OPINION AND ORDER On January 21, ECF No. 250, Defendants Inc.'s 197, S&N {"S&N") and 2015, the Court issued an Opinion and Order, in this Locating Motion finding subject ("Section 101 Technologies, for LLC and on the Judgment each of the case S&N matter Pleadings, asserted pursuant and to Order"). ("CertusView") now 1 of United States Patent was patent ineligible. Mot. Ineligibility under U.S.C. asserts reconsideration that appropriate Circuit's because: recent 35 (1) the decision and Court of reversal of No. finding 533. of LLC such for v. and that Patent") of J. of Appeals Enfish, § 101 CertusView (w,359 for Partial Recons. ECF the reconsideration 8,340,359 § 101, of U.S.C. Plaintiff No. No. claim patent- reversal of the portion of such Opinion and Order Claim ECF claims 35 seeks granting Communications, invalid because they did not Opinion LLC infringement Services, that Patents-in-Suit were eligible patent Patent CertusView finding the is Federal Microsoft Corporation, 822 controlling produced F.3d test during for the addressing S&N's inequitable available oral is at argument is bench time judgment the Hearing, record, unnecessary the evidence this matter, counterclaim decided Motion, Mot. (2) in CertusView has for alters different Court this the and trial on Request 2016), substantially the examining the briefs and oral Cir. eligibility; Pleadings. argument CertusView's patent declaratory for Judgment on the for (Fed. subsequent conduct, evidence 1327 from S&N's the Motion filed a request S&N opposes. which ECF for No. 228. After the Court determines because the facts and that legal contentions are adequately presented and oral argument would not aid in the decisional process. Loc. Civ. R. 7 (J). Fed. R. For the reasons Civ. set P. 78(b); forth below, E.D. Va. the Court DENIES CertusView's Motion. I. FACTUAL AND PROCEDURAL BACKGROUND1 CertusView technology holds for the five prevention related of damage infrastructure, at issue in this matter: States No. Patent Patent No. 8,290,204 8,265,344 ("x204 ("'344 Patent"), patents, the to underground '359 Patent, Patent"), United involving United States United States Patent No. 1 The Court recites here only those facts which are pertinent to the pending Motion. For a more detailed factual and procedural history, see the Court's August 2, 2016 Opinion and Order, ECF No. 542, May 22, 2015 Opinion and Order, ECF No. 325, and Section 101 Opinion and Order, ECF No. 250. 8,532,341 ("'341 8,407,001 Patent"), {W1001 Patent") and United (collectively, Court's seminal 2014 2437 No. 542. The Patents-in- prior to the United States Supreme patent-ineligibility Corporation Priority Limited v. Ct. Patent the "Patents-in-Suit"). August 2, 2016 Op. & Order, 17-18, ECF No. Suit issued in 2012 and 2013, States CLS Bank decision in International, Alice 134 S. (2014). CertusView's products were developed as a means to improve record-keeping and documentation of "locate operations," id. 23, that marking is, object underground No. "the application or material facility," 101-2. to Joint Specifically, of paint, indicate Claim the flags, the 24. Patents-in-Suit Stated broadly, locators to document create a the an 2, ECF claim inventions technology allows electronic record that includes to such regarding the locate Id. '359 Underground Patent, Chart, of August 2, 2016 Op. e-Sketch documentation and additional specific data The other a locate operation more accurately and searchable operation. some presence Construction related to CertusView's e-Sketch technology. & Order at or at ECF patent Facility No. 55-2 is Locate entitled Marks." [hereinafter "Electronic Am. M,359 Manifest Compl. Ex. Patent"]. of C, '359 The '359 Patent claims methods and apparatus for generating a searchable electronic record of a locate operation. The only asserted claim from the method claim, '359 Patent is Claim 1. Claim 1, an independent recites: A method for generating a searchable electronic record of a locate operation performed by a locate technician, the locate operation comprising identifying, using at least one physical locate mark, a presence or an absence of at least one underground facility within a dig area, wherein at least a portion of the dig area may be excavated or disturbed during excavation activities, the method comprising: A) electronically receiving an aerial image of a geographic area comprising the dig area, at least a portion of the received aerial image being displayed on a display device; B) adding to the displayed aerial image at least one digital representation of the at least one physical locate mark, applied to ground, pavement or other surface by the locate technician during the locate operation, so as to generate a markedup digital image including the at least one digital representation of the at least one physical locate mark; and C) electronically transmitting and/or electronically storing the searchable electronic record of the locate operation, wherein the searchable electronic record comprises the marked-up digital image and a data set, and wherein the data set comprises: a set of geographic points along a marking path of the at least one underground facility, the set of geographic points including geographical coordinates corresponding to the at least one physical locate mark; a property address associated with least one physical locate mark; a timestamp indicative of when operation occurred; the the at locate a name of the locate technician; a name of a company responsible for performing the locate operation; and a ticket number operation. '359 Patent, Col. 17:53-18:21. associated with the locate On May 29, action against 2013, S&N. Compl. CertusView filed an the five 23, CertusView, filed infringement seeking invalidity Answer, S&N See and Am. an Affirmative On infringement December 6, 2013, alleging infringement of Compl., Answer judgments all Defenses, patent ECF No. denying 55. On CertusView's asserting counterclaims against declaratory regarding a 1. amended complaint, 2013, allegations of filed ECF No. Patents-in-Suit. December and CertusView five of non-infringement Patents-in-Suit. and Countercls., S&N's ECF No. 61.2 After the Supreme Court issued its June 2014 Alice decision, October claim 28, 2014, following construction asserted patent Pleadings, order, claims, pursuant to S&N a and Markman a hearing, limitation filed a Motion Federal Rule of on issuance the Civil of number for Judgment on Procedure on a of the 12(c), contending that the Patents-in-Suit were invalid as they did not claim patentable subject matter under 35 U.S.C. 197. On January 21, Judgment claims of on the the 2015, Pleadings the Court and found Patents-in-Suit were § 101. ECF No. granted S&N's Motion that all of for the asserted invalid for failure to claim patentable subject matter under 35 U.S.C. § 101, including Claim 1 of the '359 Patent. Sect. 101 Op. & Order, ECF No. 250. " S&N's Answer was amended two additional times after the Court issued its Section 101 Opinion and Order. See S&N's First Am. Affirmative Defenses, and Countercls., ECF No. 253; S&N's Answer, Affirmative Defenses, and Countercls., ECF No. 336. Answer, Second Am. On March 8, trial on 2016, S&N's the matter proceeded to a five-day bench declaratory judgment CertusView for inequitable conduct. conclusion Partial of 35 filed its Partial U.S.C. trial, of § 101. Response in for CertusView's CertusView No. ECF its Reconsideration. Motion for Partial 30, Finally, ECF in No. after the for Ineligibility June Brief against Motion 2016, S&N Motion CertusView's 536. Rebuttal its Patent On to No. filed of 533. Opposition filed Partial On June 15, 2016, Judgment ECF Reconsideration. CertusView Motion bench Reconsideration under 2016, the counterclaim for on July 15, of its Support 540. Therefore, Reconsideration is ripe for review. II. A. Federal Rule of Civil Procedure 54(b) CertusView Civil STANDARD OF REVIEW moves Procedure for 54(b), reconsideration which governs interlocutory orders or decisions.3 court "'retains interlocutory judgment.'" 3 The the power to orders ... at TomTom, Court's under 101 reconsideration reconsider any Opinion Rule of of Under Rule 54(b), a district time Inc. v. APT Sys. GmbH, Section Federal and and modify prior 17 F. Order is to its final Supp. 3d 54 5, considered an interlocutory order in this matter because it did not address S&N's declaratory judgment counterclaim for inequitable conduct and was not a "final decision." See CertusView Techs., LLC v. S&N Locating Servs., LLC, Order, No. 15-1404, Doc. No. 15 (Fed. Cir. July 9, 2015) (citing 2003)) . Nystrom v. TREX Co., Inc., 339* F.3d 1347, 1350 (Fed. Cir. 546 (E.D. Va. 2014) (quoting Am. Canoe Ass'n Inc., 326 F.3d 505, 514-15 (4th Cir. 2003) ).'1 relief under Rule district court." H. Cone Mem. (1983)). 54(b) "is committed Am. Canoe Ass'n, Hosp. However v. Mercury the law of to Murphy the discretion 326 F.3d at 515 Const. Corp., the case Court of Appeals applying the law of the case doctrine, has substantially authority has the different 460 U.S. among or (3) the and would work manifest Co., 845 F.2d Longshoremen's Am. Canoe 69); (E.D. 66, Va. 326 623 F.3d F.2d at Trinity Indus., 2015) decision (4th Cir. (listing 1054 was found that, when (2) (5th cases v. Cir. in law applicable erroneous Warner-Lambert EEOC v. 1980)); Sejman, 148 F. controlling clearly (quoting (citing Inc., others, a subsequent trial Sejman 1988) 515 12 The evidence, injustice.'" Assoc., Ass'n, Evans v. 69 prior 1, Id. since made a contrary decision of issue, the a court generally may not depart from its previous ruling unless "'(1) produces of (citing Moses doctrine, for the Fourth Circuit Farms, The power to grant "evolved as a means of guiding that discretion." has to v. Supp. 845 Int'1 accord F.3d 3d 542, support). at 544 "Absent a A On procedural issues not unique to the Federal Circuit's exclusive jurisdiction, the Federal regional circuit, which in Valley Floral Grp., (Fed. Cir. 2010) Inc. ("We Circuit will this case is apply the precedent of the v. Shaw Rose Nets, review a district Fourth Circuit. LLC, court's 597 the See Del. F.3d 1374, 1379 decision to exclude evidence and to deny a motion for reconsideration under the law of the pertinent regional circuit." (citing Minton v. Nat'l Ass'n Sec. Dealers, Inc., 336 F.3d 1373, 1378 (Fed. Cir. 2003); Micro Chem., Inc. v. Lextron, Inc., 317 F.3d 1387, 1390-91 (Fed. Cir. 2003))). significant change submission in the to the court, law or granting is only appropriate where, misunderstood a the party, facts a motion for example, or has since the for reconsideration the court made a original 'has patently decision outside the adversarial issues presented to the Court by the parties, or has made Evans, 148 an 'rarely rare.'" not Supp. F. error 3d arise and TomTom, Belt, Inc. (E.D. v. Va. wrongly' Belt, 544 the Inc., Mel motion 17 F. to of omitted). Inc., had not granted." 99 F.R.D. be already be F.R.D. asking thought Id. problems equally (quoting Above the 99 reconsider [c]ourt "Such should 3d at 546 Roofing, to apprehension.'" reconsider Supp. Motions the but (citation Bohannan should Inc., reasoning at 1983)). "'rethink what or of a 99, 101 court to through-rightly (quoting Above the at 101). B. Patent Eligibility under 35 U.S.C. § 101 Congress has defined the subject matter eligible for patent protection by providing 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 therefor, subject this title." stated in Alice International, contains 35 U.S.C. an to the conditions § 101. Corporation "'[w]e implicit have However, and requirements as the Supreme Court Proprietary Limited long held that this (l]aws of nature, exception: 8 of v. CLS Bank provision natural phenomena, 2347, and abstract ideas are not patentable.'" 2354 (2014) Myriad Genetics, invention (quoting 133 S. Ct. claims and does 2107, for 2116 patent-eligible directed to a "process, matter" Ass'n not machine, constitute Molecular v. an matter manufacture, an Pathology Accordingly, (2013)). subject 134 S. Ct. attempt if it is or composition of to patent a law of nature, natural phenomenon, or abstract idea. In other determining asserted that claims Claim of the patent-eligible subject matter, 1 of the '359 Patents-in-Suit, this Court framework that the Supreme Court set Patent, did and not applied the forth in Alice. claim two-step See Sect. 101 Op. & Order at 34-37. First, the Court must "determine whether the claims at issue are directed to one of [the] patent-ineligible concepts," that is, laws of nature, natural phenomena, and abstract ideas. Alice, 134 S. Ct. at 2355 (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc., 132 S. Ct. 1289, 1296-97 (2012)). To determine whether a claim abstract idea, is directed to a patent-ineligible "a court must evaluate the claims their face' to determine to which 'concept' '[o]n the claims are 'drawn.'" [Amdocs (Israel) Ltd. V. Openet Telecom, Inc., 56 F. Supp. 3d 813, 817 (E.D. Va. 2014) (quoting Alice, 134 S. Ct. at 2356) (citing Bilski v. Kappos, 561 U.S. 593, 609 (2010))]. In other words, a court "must identify the purpose of the claim . . . what the claimed invention is trying to achieve . . . and ask whether the purpose is abstract." [Cal. Inst, of Tech. v. Hughes Commc'ns Inc., 991 (CD. Cal. 2014) 2359; Mayo, 132 S. Ct. 59 F. (citing Alice, at 1296)]. Supp. 3d 974, 134 S. all Ct. at Importantly, though the Supreme Court has not the precise contours of the 'abstract "delimit[ed] ideas' category" of patent ineligible subject matter, Alice, 134 S. Ct. at 2357, the Court has indicated that such category is not limited simply to "preexisting, fundamental truth[s] that exist in principle apart from any human action," id. at 2356 (alteration in original) (citation and internal quotation marks omitted). Indeed, the Supreme Court has suggested that a "method of organizing human activity" or "fundamental economic practice" can fall within the patent-ineligible category of abstract ideas. See id. Furthermore, the Federal Circuit has rejected the notion that "the addition of merely novel or non-routine components to the claimed idea necessarily turns an abstraction into something concrete." 709, 715 [Ultramercial, (Fed. Cir. Inc. 2014)]. plays no role in a court's Enfish, Microsoft LLC v. v. At Hulu, LLC, step one, analysis.151 Corp., 56 F. 772 F.3d prior [See, Supp. art e.g., 3d 1167, 1173-74 (CD. Cal. 2014), aff'd in part, vacated in part, rev'd in part, 822 F.3d 1327 (Fed. Cir. 2016). But see McRO, Inc. v. Valve Corp., No. 13-1874, 2014 WL 4772200, at *9 (CD. Cal. Sept. 22, 2014) (unpublished)]. If an invention is directed toward a patent-ineligible abstract idea, elements of ordered second, each claim combination' additional elements the both to Court must "consider individually determine 'transform the and whether nature the 'as of an the the claim' into a patent eligible application." Alice, 134 S. Ct. at 2355 (quoting Mayo, 132 S. Ct. at 129798). Those additional 'well-understood, elements routine, "must be conventional more than activity.'" b The Enfish district court's statement that "[a]t step one, prior art plays no role in the analysis," must be read in light of the following sentences in the same paragraph of that opinion: "At step one, prior art plays no role in the analysis. The court does not filter out claim elements found in prior art and evaluate the remaining elements for abstractness [(citations omitted)]. Using prior art to filter out elements revives the point-of-novelty approach of Parker v. Flook, 437 U.S. 584 (1978), which was rejected by [Diamond v. Diehr, 450 U.S. 175 (1981)]." Enfish, 56 F. Supp. 3d at 1173-74 (citing Diehr, 450 U.S. at 189, for the proposition that "novelty 'is of no relevance' when determining patentability"). Thus, the Court understands the Enfish district court opinion to stand for the proposition that review of prior art, and the distinctions between prior art and the claimed inventions, is not necessary in determining whether a claim is "directed to" patent-eligible subject matter. 10 Ultramercial, 772 F.3d at 715 (quoting Mayo, 132 S. Ct. at 1298). This second step is "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. (alteration and emphasis in original) (quoting Mayo, 132 S. Ct. at 1294). Yet, "transformation into a patent-eligible application requires 'more than simply statfing] the [abstract idea] while adding the words 'apply it.'" Alice, 134 S. Ct. at 2357 (alterations in original) (quoting Mayo, 132 S. Ct. at 1294). Moreover, "the prohibition against patenting abstract ideas 'cannot be circumvented by attempting to limit the use of the formula to a particular technological environment' or adding 'insignificant postsolution activity,"' Bilski, 561 U.S. at 610-11 (quoting Diamond the v. Diehr, narrowness patentable an of 450 U.S. an 175, abstract otherwise 191-92 idea (1981)), does patent-ineligible not and render idea, [see buySAFE, Inc. v. Google, Inc., 765 F.3d 1350, 1353 (Fed. Cir. 2014) (citing Mayo, 132 S. Ct. at 1303)]. Nor does "the mere recitation of a generic computer . . . transform a patent-ineligible abstract idea into a patent-eligible invention."7 Alice, 134 S. Ct. at 2358. Sect. 101 Op. & Order at 34-37 (internal footnotes omitted). III. CertusView asserts that DISCUSSION reconsideration Court's patent ineligibility judgment, Patent, recently step of is issued the Corporation, evidence appropriate new test 822 because: controlling for patent F.3d 1327 produced (1) during substantially different the eligibility, the Cir. 11 Federal of Circuit regarding Enfish 2016); inequitable than the reversal the as to Claim 1 of the '359 authority (Fed. and and v. (2) conduct the has first Microsoft subsequent trial was evidence available at the time the Court considered S&N's Motion for Judgment on the Pleadings. CertusView's Br. No. 534. With in Supp. respect of Mot. to the for Partial Recons., Enfish decision, S&N 1-2, ECF argues in response that CertusView has not demonstrated that such decision constitutes a "contrary reconsideration to is reconsider its decision warranted, ruling and of that, law," even if regarding Claim 1 of such the the that Court '359 were Patent, Enfish does not compel the Court to reach a different resolution of S&N's Motion CertusView's Further, that Mot. with such for Judgment for respect evidence Partial to is on the the Pleadings. Recons., bench irrelevant 8-12, trial to See ECF evidence, Resp. No. S&N reconsideration to 536. argues of S&N's prior Motion for Judgment on the Pleadings and that the evidence presented evidence Id. at at trial available 20-22. is at The not the "substantially time Court the will Court different" considered consider each of from such the Motion. CertusView's arguments in favor of reconsideration in turn. A. New Legal Authority As noted above, CertusView argues that reconsideration of the Court's judgment of patent ineligibility for Claim 1 of the '359 Patent decision that in is warranted Enfish. reconsideration authority has [] due to CertusView, is the Federal however, warranted has because Circuit's recent not demonstrated a "controlling made a contrary decision of law applicable 12 to the issue." Sejman, 845 F.2d at 69. Further, even if the Court were to reconsider its patent ineligibility ruling on Claim 1 of the '359 Patent, CertusView has not demonstrated that the Enfish decision dictates a different result. The Federal Circuit issued its ruling in Enfish on May 12, 2016, finding that Enfish's patent claiming a "self-referential" database, a logical model database that can store and define the relevant information patenting. within a single table, Enfish, 822 F.3d at 1332, 1339. was eligible In determining that such patent claimed patent-eligible subject matter, Circuit applied discussing step the two-step one, Alice framework. the Federal for Circuit the Federal However, clarifies in the distinction between patent claims which are directed to patenteligible subject matter, that is, claims which are "directed to a specific improvement to the way computers operate," and patent claims which are directed to an "abstract computers are invoked merely as a tool. With respect to such "directed idea" "for which Id. at 1336. to" inquiry, the Federal Circuit stated: The "directed to" inquiry, therefore, cannot simply ask whether the claims involve a patent-ineligible concept, because essentially every routinely patenteligible claim involving physical products and actions involves a law of nature and/or natural phenomenonafter all, they take place in the physical world. Rather, the "directed to" inquiry applies a stage-one filter to claims, considered in light of the specification, based on whether "their character as a 13 whole is directed to excluded subject matter." [(quoting Internet Patents Corp. v. Active Network, Inc., 790 F.3d 1343, 1346 (Fed. Cir. 2015)) (citing Genetic Techs. Ltd. v. Merial L.L.C, 818 F.3d 1369, 1375 (Fed. Cir. 2016))]. The Supreme Court has suggested that claims "purport[ing] to improve the functioning of the computer itself," or "improv[ing] an existing process" might not succumb to the technological abstract idea exception, [citing (Alice, 134 S. Ct. at 2358-59)]. . . . We do not read Alice to broadly hold that all improvements in computer-related technology are inherently abstract and, therefore, must be considered at step two. Indeed, some improvements in computerrelated technology when appropriately claimed are undoubtedly not abstract, such as a chip architecture, an LED display, and the like. Nor do we think that claims directed to software, as opposed to hardware, are inherently abstract and therefore only properly analyzed at the second step of the Alice analysis. Software can make non-abstract improvements to computer technology just as hardware improvements can, and sometimes the improvements can be accomplished through either route. We thus see no reason to conclude that all claims directed to improvements in computer-related technology, including those directed to software, are abstract and necessarily analyzed at the second step of Alice/ nor do we believe that Alice so directs. Therefore, we find it relevant to ask whether the claims are directed to an improvement to computer functionality versus being directed to an abstract idea, even at the first step of the Alice analysis. For that reason, in this case the asks first whether step in the Alice the focus of on the specific asserted improvement capabilities (i.e., the self-referential computer database) qualifies are as invoked an or, instead, "abstract merely as idea" a tool. on for As a the inquiry claims is in computer table for a process which noted that computers infra, in Bilski and Alice and virtually all of the computerrelated § 101 cases we have issued in light of those Supreme Court decisions, it 14 was clear that the claims were of the latter type-requiring that the analysis proceed to the second step of the Alice inquiry, which asks in if nevertheless the application there of is the some inventive abstract concept idea. [(citing Alice, 134 S. Ct. at 2355, 2357-59)]. In this case, however, the plain focus of the claims is on an improvement to computer functionality itself, not on economic or other tasks for which a computer is used in its ordinary capacity. Id. at Alice Based on 1335-36. framework, the this Federal application Circuit of found step one of that claims did not present computer components economic practice Instead, the were or Federal a "situation where added post-hoc mathematical Circuit that Enfish because general-purpose to a fundamental Id. equation." found the idea, patent claims were not "directed to" an abstract such the the at Enfish 1339. patent claimed patent-eligible subject matter because it was "directed to a specific improvement to the way computers operate, embodied in the self-referential table."6 6 CertusView argues that Id. at 1336. such language creates a new standard for determining whether a patent claim satisfies the first step of the Alice framework. That is, CertusView argues, a claim satisfies the first step of the Alice framework if such claim "is 'directed to a specific implementation of a solution to a problem in the [utility industry]'" and "it 'improve[s] an existing technological process.'" CertusView's Br. in Supp. of Mot. for Partial Recons. at 9 (quoting Enfish, 822 F.3d at 1335, 1339). CertusView's argument captures part of the Enfish holding, but only goes so far. First, as discussed below, while Enfish clarifies how a court should consider prior art, the Enfish decision does not support the proposition that "improv[ing] an existing technological process" is always sufficient to satisfy step one of the Alice framework. See Enfish, 822 F.3d at 1339 (explaining that "there may be close calls about how to characterize what the claims are directed to," and "[i]n such cases, an analysis of whether there are arguably concrete improvements in the recited computer technology could language "improving] take place under step two"). Further, the an existing technological process" is drawn from 15 The Enfish decision, Federal Circuit, and other step one of the Alice this Court determined in its review of prior art claim is prior art at 1337 Alice from the improvement to prior art, framework. As described above, Section 101 Opinion and Order that not necessary for a determination that a to" patent-eligible subject matter. the Federal Circuit stated in Enfish that review of may "bolster" ("[0]ur improvement the is "directed Nonetheless, decisions have also clarified how a court might consider prior art, and a claimed invention's during recent such conclusion. conclusion of an decision, that existing 134 S. Ct. the See claims technology at 2358, Enfish, are 822 directed is and bolstered the Diehr F.3d to by an the decision, 450 U.S. at 178, both of which the Court considered in determining that the asserted claims of the Patents-in-Suit were directed to patentineligible subject matter. Sect. 101 Op. & Order at 34-37. Second, the Enfish decision specifically addresses improvements to computer functionality and such opinion cannot be stretched to support CertusView's suggestion that patent claims "directed to a specific implementation of a solution to a problem in [any industry]" are sufficient to satisfy step one of the Alice framework. See Elec. Power Grp., LLC v. Alstom S.A., F.3d , No. 15-1778, 2016 WL 4073318, at *4 (Fed. Cir. Aug. 1, 2016) (explaining that the claims at issue in Enfish "focused not on asserted advances existing computer capabilities could be put, improvement-a particular database technique-in in uses to which but on a specific how computers could carry out one of their basic functions of storage and retrieval of data" (citing Enfish, 822 F.3d at 1335-36)); Visual Memory LLC v. NVIDIA Corp., No. l:15-cv-789, 2016 WL 3041847, at *4 (D. Del. May 27, 2016) (unpublished) ("Enfish is thus best understood as a case which cautions against oversimplification during step one of Mayo/Alice, rather than a case which exempts from § 101 scrutiny all patents which purport to improve the functioning of a computer." (citing In re TLI Commc'ns LLC Patent Litig., 823 F.3d 607, 613 (Fed. Cir. 2016))). As discussed limitations below, which consideration address of problems prior in art, prior relevance during step one of the Alice framework. 16 and art, specific are of claim limited specification's other teachings benefits that the conventional faster flexibility, over search claimed invention databases, times, such and achieves as increased smaller memory requirements."). However, "'in other cases involving computer- related there claims, characterize what cases, analysis "'an the may be claims of close are calls directed whether there about to,'" are how and in arguably to such concrete improvements in the recited computer technology could take place under step two.'" Bascom Glob. Mobility LLC, (Fed. Cir. While the limitations is F.3d June into be claims and , No. 2016) Federal directed," should 27, deferred their to specific themselves to a step[ nonabstract idea." the of the the 822 limitations that (citing Enfish, AT&T *5 1339). incorporates claim idea two do F.3d to which claim analysis not a claim limitations when "the readily lend they are directed to a 822 F.3d at 1339, example of a case that did not present a "close call[] to characterize what the claims are v. at specific Alice step ]one finding Id. Enfish, of Inc. 2016 WL 3514158, "sometimes articulation consideration Servs., 15-1763, (quoting Circuit its Internet directed to"). as an about how Thus, while Enfish and other recent cases explain how consideration of prior art and specific claim limitations may be part of the Alice step one analysis, finding of such consideration patent-eligibility. 17 is not always Further, necessary both the for a Federal Circuit and compare claims directed the to Supreme at an issue Ct. 1359, 2357; 1362 PIP (Fed. Cir. Inc., it sufficient claims already previous in Inc. 2015)); F.3d 1, cases" v. Amazon.com, accord Elec. , No. 2016); F. App'x found to to to 15-1778, Grp. Inc., 788 Power Group, Tree, LLC v. 134 F.3d LLC v. 2016 WL 4073318, Lending be determine M-5 Zillow, , No. 14-1435, 2016 WL 3974203, Cir. July 25, 2016) Litig., "found Enfish, 822 F.3d at 1334 (citing Alice, Cir. Aug. have those idea Techs., Alstom S.A., (Fed. to abstract patent eligibility. S. Court *3 (Fed. (unpublished); In re TLI Commc'ns LLC Patent 823 F.3d 607, 613 (Fed. Cir. 2016). Thus, the Court "contrary decision Court's Section decision merely finds of 101 that law," Enfish warranting Opinion applies the and step of is reconsideration Order. one decision Instead, the the Alice not of a the Enfish framework to patent claims addressing computer functionality and explains the difference between patent-eligible claims directed to technological improvements of computer functionality and patentineligible claims directed to "abstract ideas" which employ computers as only a tool. However, ruling even regarding if the patent Court were eligibility, to the reconsider Enfish not suggest the Court should alter such ruling. its earlier decision does Claim 1 of the '359 Patent is directed to a method for generating a "searchable 18 electronic record of a locate operation," that is, "one or more computer-readable files information regarding Order at Patent, 58, Col. that 17:53-55. simplest form, some a locate operation," "performed Opinion and Order, include the by As a locate detailed or all the Markman Opinion technician." in of the Court's elements in Claim 1, See and '359 Section distilled to 101 their recite: A) electronically receiving an aerial image of the dig area, with such image displayed, at least in part on a display device; B) adding to such image a digital representation of a physical locate mark; and C) electronically transmitting and/or storing a computer readable file that includes some or all of the information regarding a locate operation, with such computer readable file comprising the aerial image to which at least one digital representation of a physical locate mark has been added and a data set including a set of geographic points, along a marking path, including geographical coordinates responding to physical locate marks, the property address associated with the physical locate marks, a timestamp of when the locate operation occurred, the name of the locate technician, the name of the company that performed the locate operation, and a ticket number associated with such operation. Sect. 101 Op. & Order at 71-72 (citing 18:21). Considering carefully elements, Claim the 1 of receiving information, additional information representation of the the '359 Patent, specific '359 Patent details Col. language the it, physical 19 in the locate form mark, of and of "process in the form of the aerial image, to 17:53the of adding the digital then storing such combined information in a computer readable file with other information related to the locate operation." In contrast were to "directed the to patent a claims specific at Id. at 72. issue in Enfish, improvement to that computer functionality," Claim 1 of the '359 Patent is closer to the kind of patent-ineligible computer claims components to that merely well-known "add business conventional practices," and "recite[s] generalized steps to be performed on a computer using conventional computer activity." (citations omitted). Generally, Enfish, 822 claims that F.3d at 1338 recite generalized steps to be performed on a computer using conventional computer activity, Enfish explains, at 1337-38; accord Elec. 4 ("Information as information" "merely is and Power Grp., such is "within the presenting collecting are directed to abstract ideas. the an 2016 WL 4073318 at *3- intangible," realm results analyzing LLC, of thus, abstract of ancillary part of such without collection citations and quotations omitted)). eligible claims specific implementation software Patent is arts," at issue Enfish, directed to in of more 822 which solution F.3d at 1339, patent-ineligible 20 to (such of as is abstract as analysis" Further, Enfish, a and further processes identifying a particular tool for presentation), an "collecting ideas"; abstract information, Id. (internal unlike the patentwere a problem Claim subject "directed 1 of matter in the to the '359 because the technological solution such claim purports to advance is the process of gathering and saving information of a specified kind, related to a locate operation, and "not any particular assertedly inventive technology for performing those functions." Elec. Power Grp., Commc'ns LLC 2016 WL Patent Litig., 4073318 823 at F.3d *4; 607, accord 612 (Fed. Cir. (finding patent claiming "a method for recording, and administering [a] digital image" to In be re TLI 2016) communicating directed to an abstract concept because such claims are "directed to the use of conventional or environment, without inventive generic technology solution any to two" (citing Enfish, claim any in a nascent that problem the invention presented 822 F.3d at 1335)). but by well-known reflects combining Therefore, an the the Court's finding that Claim 1 of the '359 patent "is directed towards the abstract idea information, environment of as of creating a applied in conducting a computer-readable the file particular locate operation," to store technological Sect. 101 Op. & Order at 71, is unchanged by the Enfish decision.7 7 CertusView also argues that, as a result of the Enfish decision, the Court should reconsider its patent-ineligibility ruling regarding Claim 1 of the '359 Patent under step two of the Alice framework. See CertusView's Br. in Supp. of Mot. for Partial Recons. at 19-25. However, as Enfish did not discuss step two of the Alice framework, and CertusView cites no "controlling authority [that] has since made a contrary decision of law" applicable to step two of the Alice framework, the Court need not revisit its ruling that Claim 1 of the '359 Patent does not claim patent-eligible subject matter under step two of the Alice framework. See Evans, 148 F. Supp. 3d at 544 ("(T]he court should not reevaluate the basis upon which it made a prior 21 B. Trial Evidence CertusView also argues that reconsideration of the Court's ineligibility regarding Claim 1 of the judgment of patent Patent is warranted due to trial of S&N's CertusView to has on that of the demonstrated conduct demonstrated reconsideration Judgment new evidence heard during the bench inequitable not the Court's such ruling Further, reconsideration that the subsequent that was trial is "substantially different" at counterclaim. that Pleadings. bench '359 in evidence on However, is S&N's relevant Motion CertusView warranted this case from the on has the not grounds produced evidence evidence available the time the Court resolved S&N's Motion for Judgment on Pleadings. S&N pursuant for the Sejman, 845 F.2d at 69. filed to its Federal Motion Rule for of Judgment Civil on Procedure the Pleadings, 12(c), seeking a finding of patent ineligibility as to the asserted claims of the Patents-in-Suit. "On a motion made pursuant to Rule 12(c), for judgment on the only the pleadings are considered," and the exhibits which are part of such pleadings. Co. v. Bait. Cir. 1964); Ins. Co. ruling, of Typographical Union No. accord Am., Thomas 122 F. pleadings Daniels Supp. 12, 338 Agency, 3d 448, A. S. Abe 11 F.2d 190, Inc. 451 v. 193 (4th Nationwide (D.S.C 2015) if the moving party merely seeks to reargue a previous claim, (citation omitted)). 22 (citations omitted); Dobson v. Cent. 240 F. Supp. 2d 516, As Court explained the 519 "[s]ection 101 [patent] Carolina Bank & Trust Co., (M.D.N.C in 2003) its Section (citations omitted). 101 Opinion eligibility is a question of law" that "hinges on the claims of the Patents-in-Suit." Order at 28 Inst. (Edinburgh), (citing Alice, 750 resolution in 134 S. F.3d such Opinion and Order, patent-eligibility 1333, Ct. at 1335 Sect. 101 Op. & 2355; (Fed. In re Roslin Cir. 2014)). In the Court also recognized that certain determinations a motion and Order for may not judgment on be the when a motion for judgment on the pleadings appropriate pleadings, for such as is raised prior to claim construction or when such motion relies on resolution of a factual dispute. Life Assurance 2012); F. Id. at 27 Co. of (citing Bancorp Servs., Can., 687 F.3d Loyalty Conversion Sys. Corp. Supp. 3d 829, 834 (E.D. Tex. v. 1266, Am. 2014)). LLC v. 1273 (Fed. Airlines, However, Sun Cir. Inc., the 66 Court found that because claim construction had already taken place in this case, and because "it need not rely on any factual matter other than that presented in the specifications of the Patentsin-Suit," which Complaint, S&N's appropriate eligibility. were attached Motion vehicle to for as exhibits Judgment determine on the to the legal the First Pleadings issue Amended was of the patent Id. at 29-30. CertusView has not demonstrated 23 that the bench trial produced that for any evidence, would be relevant Judgment that the Motion.8 on Court regarding to the Court's 1 of the resolution of '359 Patent, S&N's Motion the Pleadings regarding patent eligibility and did not at considered have the time it such Instead, the trial evidence that CertusView relies upon in support of reconsideration addresses CertusView's e-Sketch characterization of Court Claim specifically the the differences between invention prior noted, and art--a found and factual to be CertusView's dispute irrelevant, that the in the following discussion contained in its ruling on S&N's Motion for Judgment on the Pleadings: Importantly, the Court further concludes that there are no factual disputes that could affect the Court's analysis of the issue of section 101 validity. The only factual dispute that Plaintiff has brought to the Court's attention in opposition to Defendants' motion concerns Defendants' characterization of a "conventional" locate operation, including Defendants' chart comparing such an operation to Claim 1 of the '204 Patent. However, the Court need not resolve the factual dispute between the parties over how locate technicians conduct "conventional" locate operations As S&N notes in its Response to CertusView's Motion for Partial Reconsideration, CertusView has not provided the Court with any case where a court has granted a motion to reconsider a finding of patent ineligibility due to the presentation of additional evidence at trial. Resp. to CertusView's Mot. for Partial Recons. at 20-21. Instead, the primary case cited by CertusView recognizes merely, as the Court does above, that claim construction can be helpful to understanding patent claims prior to ruling on section 101 patent ineligibility. See Bancorp Servs., LLC, 687 F.3d at 1274. However, as the trial evidence cited by CertusView was considered by the Court during resolution of S&N's Motion for Judgment on the Pleadings, the Court need not address whether any trial evidence may serve as the basis for reconsideration of a determination of patent eligibility. 24 because that conclusion dispute that does the not affect Patents-in-Suit patent-eligible subject matter. will decline to exercise its the do Therefore, discretion Court's not claim the Court to consider matters outside the pleadings in resolving this Rule 12(c) motion. The Court finds that such decision is appropriate because the issue of section 101 validity is adequately presented—and the Court can adequately resolve it—without considering the disputed facts outside the pleadings. To the extent that Defendants' briefs rely on factual information outside the pleadings, including the chart contained in Defendants' memorandum in support of its motion, the Court will not consider such materials in resolving this motion. Rather, to the extent the Court considers the matter at all, the Court will view the facts regarding such "conventional" locate operations in the light most favorable to the Plaintiff based on the facts presented in Plaintiff's pleadings and the specifications of the patents-in-suit that Plaintiff has incorporated therein. Sect. 101 Op. & Order at demonstrated that new evidence bench relevant reconsideration, Further, the 29-30. Therefore, trial to in the this even Court's if the Court were to patenting. adduced at presented resolution, consider bench trial in this matter, demonstrated that such trial "produce[d] from determined that matter or any its of S&N's Motion for Judgment on the Pleadings. presented at the evidence" CertusView has not that which Claim 1 of was the new evidence CertusView has not substantially different available '359 Patent when was the Court ineligible for CertusView highlights two particular factual issues trial that it argues are "substantially different" from the evidence that the Court previously considered. CertusView argues the evidence that 25 presented during the First, bench trial demonstrated that locate operation did a not conventional paper include geographical manifest of coordinates, a and thus, such information is not, as the Court found in its Section 101 Opinion and Order, ordinarily would be Op. & Order at 76. the Court absence same sort of information included in a paper manifest." that Sect. 101 However, contrary to CertusView's assertion, considered of "the in its geographical Opinion and Order coordinates in the presence conventional or paper manifests of a locate operation and found that such evidence did not affect the Court's decision. that "some of the Specifically, information, for the Court noted example the coordinates corresponding to physical locate marks, element C in the data set geographic included in stored in the computer-readable file contains greater detail than, or might otherwise be absent from, paper manifests documenting a (emphasis locate added). information that and save, created during the operation." However, Sect. even CertusView's Op. considering & Order this of at 76 additional document the Court found that "such additional information does to claim the abstract technological such environment information of is [of the idea readable file to store information, because 101 method e-Sketch invention might not transform the method of Claim 1 attempt conventional of creating 26 a from an computer- as applied in the particular conducting the '359 Patent] same sort a locate of operation, information that ordinarily would be included in a paper manifest." Thus, evidence regarding introduced at trial, a conventional is not paper Id. at 76. manifest, "substantially different" as from the evidence that the Court considered in resolving S&N's Motion for Judgment on the Pleadings. Second, during CertusView the bench argues trial demonstrated improved documentation and Again, CertusView does that not prove different" from considered resolving S&N's Pleadings. In its that evidence Section that the 101 reviewed the state of conventional, trial evidence for Opinion product locate operations. such Motion presented the e-Sketch record-keeping of "substantially in the and prior art, evidence that the Judgment Order, is Court on the the Court locate operations and the flaws of documenting and recording a conventional locate operation, as discussed in the specifications of the Patents-in- Suit. Sect. 101 during the locate operation Op. bench & trial Order at perhaps procedures, and 5-7. The elucidates the evidence the goals adduced conventional of the e-Sketch product in improving on such procedures, but such evidence does not from contradict the Court and Order. nor differ considered and discussed Further, Opinion and Order, Suit may substantially well the in its Section that 101 Opinion as the Court explained in a footnote of its while the asserted claims of have evidence value as an 27 improvement the Patents-in- to the locate operation industry, or effect of invention is represents problem the "this Court does not claimed invention patent-eligible. the development existing in the at a art, Id. to Even of eligible." Amdocs, new the evidence to the CertusView adduced Court's Patent is at the prior ineligible reconsideration of does demonstrated bench not (emphasis demonstrated trial in determination this that that such claimed solves not render such ruling. bench that bench the "substantially different" were trial that 1 35 U.S.C. Further, trial added) matter Claim for patenting under presented during the not has n.ll invention process alone whether a it 56 F. Supp. 3d at 825). Therefore, 50 determine if that, patent inquire into the value even relevant, in this evidence such that (citing additional is relevant of the '359 § 101 if or to evidence CertusView has matter adduced reconsideration of the Court's § 101 ruling is warranted. IV. For Partial the reasons stated Reconsideration of Ineligibility under 35 U.S.C. As no pertinent First Amended CONCLUSION above, the Plaintiff's Court's § 101, Motion Judgment ECF No. 533, of for Patent is DENIED. issues remain for resolution on Plaintiff's Complaint, ECF No. 55, and previously entered judgment on Defendants' counterclaim for inequitable conduct, 28 as the Court has declaratory judgment see ECF No. 542, the Clerk is REQUESTED Plaintiff's Federal The to First Rules final judgment Amended Complaint of Civil in Defendants' pursuant to Rule favor 58 of on the Procedure. Clerk is REQUESTED to send a copy of this Opinion and Order to all IT enter IS SO counsel of record. ORDERED. fitif^ /s/i Mark S. Davis United States District Judge Norfolk, Virginia August |Q , 2016 29

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