LUXER CORPORATION, Plaintiff, v. PACKAGE CONCIERGE, INC., Defendant.
Court No. 1:24-cv-00603-JCG
IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE
Filed 02/06/25
Document 39; PageID #: 905
OPINION AND ORDER
This matter involves patent infringement claims filed by Luxer Corporation (“Plaintiff” or “Luxer”) against Package Concierge, Inc. (“Defendant” or “Package Concierge”), alleging infringement of U.S. Patent Number 11,625,675 (“’675 Patent”) (D.I. 1-1). Compl. (D.I. 1). Package Concierge filed Defendant’s Motion to Dismiss Pursuant to
BACKGROUND
Luxer is a Delaware company that makes products to “automat[e] package delivery, storage, and retrieval.” Compl. ¶ 9. In 2015, Luxer began offering the “Luxer Room,” a system for controlling access to a package storage room. Id. ¶ 11. The Luxer Room allows package carriers to access a package storage room using an access code. Id. When a package is ready for retrieval, recipients are notified via text message and provided with a single use access code to access the package storage room. Id. The Luxer Room is monitored by video surveillance and maintains access logs. Id.
Luxer is the owner by assignment of the entire right, title, and interest in and to the ’675 Patent, titled “Method and system for controlling a storage room.” Id. ¶¶ 3, 12. The ’675 Patent was issued on April 11, 2023 and “is generally directed to a system and a method for controlling electronic locks for locking a door of a storage room that is part of a building.” Id. ¶ 12; ’675 Patent Abstract. The patent describes a system in which a lock interface determines whether the credentials of a person attempting to access a package storage room are authentic. ’675 Patent at Fig. 5, 19:60–20:67. If the request for access is determined to be valid, a signal is sent to an electronic lock to allow access to the package storage room. Id. at Fig.
Package Concierge began in 2020 to offer its Access-Controlled Package Rooms. Compl. ¶¶ 14–15. Package Concierge describes its Access-Controlled Package Room “as a smart room that eliminates the handling of inbound and outbound packages by staff, freeing up their time for other priorities.” Id. ¶ 16 (internal quotations omitted). The rooms use an existing room or space within a building. Id. ¶ 17. Defendant identifies the features of the Access-Controlled Package Rooms as “providing secure space for packages that are too large to fit in the automated locker system and intuitive software for delivery carrier ease of use.” Id. ¶ 16. The Access-Controlled Package Rooms also include a “surface-mounted kiosk contain[ing] a computer, touchscreen, barcode reader, and still camera.” Id.
Luxer filed this action alleging infringement of the ’675 Patent and seeking injunctive relief and monetary damages. Compl. Package Concierge filed its Motion to Dismiss arguing that the ’675 Patent’s claims are ineligible for patent protection under
LEGAL STANDARD
In patent infringement cases, allegations of infringement are governed by the Iqbal/Twombly pleading standard. Golden v. Apple Inc., 819 F. App’x 930, 930–31 (Fed. Cir. 2020). There must be some factual allegations that, when taken as true, articulate why it is plausible that the accused product infringes the patent claim. Bot M8 LLC v. Sony Corp., 4 F.4th 1342, 1353 (Fed. Cir. 2021).
DISCUSSION
Package Concierge moves to dismiss the lone claim of patent infringement, arguing that the ’675 Patent’s claims are directed at a subject matter that is ineligible for patent protection under
In Alice Corporation Pty. Ltd. v. CLS Bank International, 573 U.S. 208 (2014), the U.S. Supreme Court reaffirmed the two-step framework set forth in
If the claims are drawn to an abstract idea at step one of the analysis, the court then turns to step two to examine “the elements of each claim both individually and as an ordered combination” to see if there is an “inventive concept—i.e., an element or combination of elements that is sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the ineligible concept itself.” Alice, 573 U.S. at 217–18 (internal quotations omitted). “A claim that recites an abstract idea must include additional features to ensure that the claim is more than a drafting effort designed to monopolize the abstract idea.” Id. at 221 (internal quotations omitted). Such “additional features” are not enough to constitute an inventive concept if they are “well-understood, routine, conventional activities.” Id. at 225. To transform an unpatentable concept into a patent-eligible application, “one must do more than simply state the [ineligible concept] while adding the words ‘apply it.’” Mayo, 566 U.S. at 72.
I. Representative Claim
Package Concierge contends that the Court should treat Claim One as representative of all of the ’675 Patent claims for purposes of determining patent eligibility. Def.’s Br. at 6–7. Defendant argues that Claim One is “substantially similar to the remaining claims and linked to the same abstract idea of authorizing access to a secure location upon verification of a user’s credentials.” Id. at 6. Luxer counters that treating Claim One as representative would fail to account for the specific requirements of the remaining claims and that those claims recite both physical components and functional requirements that constitute patent-eligible subject matter. Pl.’s Br. at 16.
A court may limit its analysis of a Section 101 challenge to representative claims when the claims at issue are “substantially similar and linked to the same ineligible concept.” Mobile Acuity Ltd. v. Blippar Ltd. (“Mobile Acuity”), 110 F.4th 1280, 1290 (Fed. Cir. 2024) (internal quotation omitted). Courts may treat a claim as representative “if the patentee does not present any meaningful argument for the distinctive significance of any claim limitations not found in the representative claim or if the parties agree to treat a claim as representative.” See Berkheimer v. HP Inc., 881 F.3d 1360, 1365 (Fed. Cir. 2018) (citations omitted).
The patent challenger asserting that a claim is representative of multiple claims bears the initial burden of making a prima facie showing that the group of
Claim one of the ’675 Patent recites:
A system comprising:
at least one electronic lock for locking a door of a storage room that is stationary and part of a building. The storage room being large enough to accommodate packages that are small, medium, and oversized;
a lock interface that is communicatively coupled to the at least one electronic lock, the lock interface having at least one processor that implements one or more machine instructions stored on at least one non-transitory computer readable medium;
wherein the one or more machine instructions, when implemented, cause the processor of the lock interface to implement a method including at least
receiving, at the lock interface from a terminal, a first signal associated with a delivery, requesting access by unlocking the door;
in response, sending from the lock interface to the at least one electronic lock, a second signal including at least a request to open the door;
opening the electronic lock, based on the request, and allowing the access through the door, regardless of whether a storage area associated with the door is in use and
regardless of whether the package is small, medium, or oversized; wherein the request includes at least a user identity and a code, wherein the method further includes, after receiving the first signal including the request,
verifying, by the lock interface, the request by authenticating the user identity and the code received from the terminal;
approving the request, by the lock interface, after the user identity and the code are successfully authenticated;
in response to the approving of the request, sending the second signal, from the lock interface to the at least one electronic lock, the second signal causing the at least one electronic lock to automatically unlock, the at least one electronic lock including a circuit that includes at least
a signal input port that is communicatively connected to at least one signal output port of the lock interface;
an electronic switch that, in response to the receiving of signals from the lock interface, causes electric current to flow through the at least one electronic lock:
the step of verifying, by the lock interface, the request further including at least
comparing, by the lock interface, the user identity and the code received from the terminal with data stored in the lock interface;
approving the request, by the lock interface, when the user identity and the code received match the data stored in the lock interface, and
rejecting the request, by the lock interface, when at least one of the user identity and the code received does not match the data stored in the lock interface; and
in response to the rejecting of the request, sending, from the lock interface to the terminal, a message indicating that the request is invalid.
’675 Patent at 57:40–58:32. Luxer’s complaint alleges that Package Concierge infringed one or more of the claims of the ’675 Patent but discusses only Claim One. Compl. ¶ 20–35.
With regard to the remaining dependent claims, Package Concierge contends that they “add only minor, well-known structural or functional features.” Def.’s Br. at 7. As examples of this argument, Package Concierge asserts that Claim Eight describes the addition of an electronic striker, Claims 12 and 13 describe the addition of storage receptacles within the storage room, and Claims 25 and 26
The burden now shifts to Luxer to present a non-frivolous argument for why the eligibility of Claim One cannot be fairly treated as representative of all claims. Id. Luxer argues that treating Claim One as representative fails to account for the specific requirements of the claim. Pl.’s Br. at 16 (citing McRO, Inc. v. Bandai Namco Games Am. Inc. (“McRO”), 837 F.3d 1299, 1313 (Fed. Cir. 2016)). It further contends that the other claims have both physical components and functional requirements that constitute patent-eligible subject matter. Id. As examples, Luxer notes:
[C]laim [Two] requires “a power source,” “a receiver that receives wireless signals . . .[and] transmit[s] signals to the processor,” and “one or more capacitors that filter the signals that are transmitted to the processor.” Claim [Three] requires a “plurality of electronic locks.” Claim [Four] requires a “solenoid that is communicatively coupled to the electronic switch.” And independent [C]laim [Five] requires the “electronic lock” to be connected “via electric wires” (as opposed to the “wireless” arrangement recited by [C]laim [Two]).
Id. (quoting ’675 Patent at 58:33–59:46.
II. Alice Step One
Package Concierge argues that the ’675 Patent claims are not eligible for patent protection because they are directed to an abstract idea of authorizing access to a secure location upon verification of a user’s credentials. Def.’s Br. at 2, 8 (citing Smart Sys. Innovations, LLC v. Chicago Transit. Auth., 873 F.3d 1364, 1371 (Fed. Cir. 2017)).
Step one of the Alice analysis requires the court to “determine whether the claims at issue are directed to a patent-ineligible concept,” such as an abstract idea. Alice, 573 U.S. at 218. In doing so, the Court considers the claim’s “character as a whole.” Enfish, LLC v. Microsoft Corp., 822 F.3d 1327, 1335 (Fed. Cir. 2016);
Package Concierge argues that Claim One, in essence, mirrors the steps taken by an apartment building’s concierge in receiving and securing a delivered package. Def.’s Br. at 8–10. Package Concierge outlines these steps as to “receive a request to unlock a door; authenticate the user seeking access; approve the request upon authentication; and cause the lock to unlock or indicate that the user failed authentication.” Id. at 8. Defendant contends that these steps are reflected in the language of Claim One:
A system comprising:
at least one electronic lock for locking a door of a storage room that is stationary and part of a building. The storage room being large
enough to accommodate packages that are small, medium, and oversized; a lock interface that is communicatively coupled to the at least one electronic lock, the lock interface having at least one processor that implements one or more machine instructions stored on at least one non-transitory computer readable medium;
wherein the one or more machine instructions, when implemented, cause the processor of the lock interface to implement a method including at least
receiving, at the lock interface from a terminal, a first signal associated with a delivery, requesting access by unlocking the door;
in response, sending from the lock interface to the at least one electronic lock, a second signal including at least a request to open the door;
opening the electronic lock, based on the request, and allowing the access through the door, regardless of whether a storage area associated with the door is in use and regardless of whether the package is small, medium, or oversized;
wherein the request includes at least a user identity and a code, wherein the method further includes, after receiving the first signal including the request,
verifying, by the lock interface, the request by authenticating the user identity and the code received from the terminal;
approving the request, by the lock interface, after the user identity and the code are successfully authenticated;
in response to the approving of the request, sending the second signal, from the lock interface to the at least one electronic lock, the second signal causing the at least one electronic lock to automatically unlock, the at least one electronic lock including a circuit that includes at least
a signal input port that is communicatively connected to at least one signal output port of the lock interface;
an electronic switch that, in response to the receiving of signals from the lock interface, causes electric current to flow through the at least one electronic lock:
the step of verifying, by the lock interface, the request further including at least
comparing, by the lock interface, the user identity and the code received from the terminal with data stored in the lock interface;
approving the request, by the lock interface, when the user identity and the code received match the data stored in the lock interface, and
rejecting the request, by the lock interface, when at least one of the user identity and the code received does not match the data stored in the lock interface; and
in response to the rejecting of the request, sending, from the lock interface to the terminal, a message indicating that the request is invalid.
Id. at 9 (emphasis in original) (quoting ’675 Patent at 57:40–58:32). Package Concierge also relies on language in the ’675 Patent’s abstract, stating that: “[i]n an embodiment, a request for opening a door is received and verified. If the request is approved, signals are sent to open the electronic lock that locks the door. If the request is rejected, a message is sent to notify the user of the invalid request.” Id. at 10 (quoting ’675 Patent Abstract). As further support for its position that the ’675 Patent claims mirror the human behavior of a concierge, Package Concierge cites to Figure 5 of the ’675 Patent, which illustrates in a flowchart an embodiment of the method for implementing the lock system:
Id. at 10–11; ’675 Patent at Fig. 5, 2:16–17.
Luxer contends that record evidence does not suggest that concierges or other individuals ever controlled access to storage rooms using signals or codes to authenticate credentials or employed electronic locks with the specific circuit components described in Claim One. Pl.’s Br. at 8–9. In support of its position that the process previously used by humans must be the same process recited in the patent to be ineligible, Luxer offers McRO, Inc. v. Bandai Namco Games America Inc., 837 F.3d 1299 (Fed. Cir. 2016), and CardioNet, LLC v. InfoBionic, Inc. (“CardioNet”), 955 F.3d 1358 (Fed. Cir. 2020). Pl.’s Br. at 8–9. McRO involved patents relating to the automation of lip synchronization in animation. McRO, 837 F.3d at 1306–08. In McRO, the court noted that “defendants provided no evidence that the process previously used by animators is the same as the process required by the claims.” Id. at 1314. CardioNet involved a patent for “cardiac monitoring systems and techniques for detecting and distinguishing atrial fibrillation and atrial flutter from other various forms of cardiac arrythmia.” CardioNet, 955 F.3d at 1362–63. The CardioNet court held that the district court erred in assuming that
- “a door of a storage room that is stationary and part of a building,”
- “at least one electronic lock for locking [the] door” that includes
- a “circuit,”’ which includes “a signal input port,” a “signal output port” and “an electronic switch;” and
- “a lock interface . . . having at least one processor.
Pl.’s Br. at 4 (quoting ’675 Patent at 57:42–50, 58:7–14). Luxer is correct in that Claim One describes a machine, but qualifying as a machine is not dispositive of whether a technology is patent-eligible. As the U.S. Supreme Court observed in Alice, that a technology “necessarily exists in the physical rather than the purely conceptual realm is beside the point.” Alice, 573 U.S. at 223–24. The relevant initial question for the Court is not whether a technology is tangible, but whether the claim at issue is directed at a patent-ineligible concept, such as a law of nature, natural phenomena, or abstract idea. Id. at 217.
Luxer further argues that Package Concierges argument cherry-picks only a few claimed functions and oversimplifies Claim One. Pl.s Br. at 6. In assessing eligibility, the “[c]ourt must be careful to avoid oversimplifying the claims by looking at them generally and failing to account for the specific requirements of the claims.” McRO, 837 F.3d at 1313 (internal quotations omitted). Luxer has not
- “a door of a storage room that is stationary and part of a building,”
- “at least one electronic lock for locking [the] door” that includes
- a “circuit,“’ which includes “a signal input port,” a “signal output port” and “an electronic switch;” and
- “a lock interface . . . having at least one processor.
Pl.s Br. at 4 (quoting 675 Patent at 57:42-50, 58:7-14), Luxer offers no explanation, beyond its earlier characterizations of the claim as a machine and system claim, for why those functions are inconsistent with the abstract concept of authorizing access to a secure location upon verification of a users credentials.
Luxer argues that Claim One should not be viewed as being directed at an abstract concept, but at a specific improvement. Pl.s Br. at 6-7. Because essentially all claims are built in some way upon laws of nature, natural phenomena, or abstract ideas, Courts have deemed claims directed at a specifically asserted improvement to be patent-eligible under the first step of the Alice analysis. See Enfish, 822 F.3d at 1335-36. Luxer asserts that Claim One is directed at resolving the problem of a delivery person being unable to deliver a package “because the door to the locker of the recipient will not open, because the locker is in use, the package is oversized and there is no other locker available.”
Luxer cites to McRO as an example of when the CAFC found claims to be directed at a specific improvement and not abstract. Id. at 8. The McRO court found the claim before it to be directed to an improvement in computer animation because it applied rules to the animation process that allowed the animation of tasks that were not being previously performed by human animators, such as the “evaluat[ion] of sub-sequences, generat[ion] of transition parameters, or applicat[ion] of transition parameters to create a final morph weight set.” McRO, 837 F.3d at 1314. This is distinguishable from the facts in this case. Though prior package storage systems might not have unlocked when occupied or were not able to accommodate all sizes of packages, a human performing that task would not have suffered the same limitation. Claim One does not describe a function beyond what would be performed by a human concierge.
At step one of the Alice analysis, the Court considers whether patent claims “focus on a specific means or method that improves the relevant technology or are instead directed to a result or effect that itself is the abstract idea and merely invoke generic processes and machinery.” McRO, 837 F.3d at 1314 (emphasis added). Unlike in CardioNet, a holistic reading of Claim One and the 675 Patent does not support that the focus of the claim is on improving access to package storage areas “regardless of whether a storage area associated with the door is in use and regardless of whether the package is small, medium, or oversized.” 675 Patent at 57:51-64 The Patent Abstract describes the patent generally as:
A system and a method for controlling a plurality of electronic locks are provided. In an embodiment, a request for opening a door is received and verified. If the request is approved, signals are sent to open the electronic lock that locks the door. If the request is rejected, a message is sent to notify the user of the invalid request.
675 Patent Abstract. This description makes no reference to the alleged improvement or the problem it allegedly solves. The majority of Claim One is
For the above discussed reasons, the Court holds that Claim One is directed at an abstract and patent-ineligible concept.
III. Alice Step Two
Having determined that Claim One concerns an abstract concept, the Court must consider step two of the Alice analysis and determine if the claim provides an “inventive concept sufficient to transform the claimed abstract idea into a patent eligible application.” Alice, 573 U.S. at 221 (internal quotation omitted). Step two of Alice requires the Court “to look with more specificity at what the claim elements add, in order to determine whether they identify an inventive concept in the application of the ineligible subject matter to which the claim is directed.” Affinity Labs, 838 F.3d at 1258. An inventive concept is “an element or combination of elements that is sufficient to ensure that the patent in practice amounts to significantly more than a patent upon the [ineligible concept] itself.” Alice, 573 U.S. at 217-18 (quoting Mayo, 566 U.S. at 72-73). It must do more than apply an abstract concept using conventional and well-understood techniques. BSG Tech LLC v. Buyseasons, Inc., 899 F.3d 1281, 1291 (Fed. Cir. 2018). A
Package Concierge contends that the 675 Patent claims do not recite an inventive concept. Def.s Br. at 13-20. Defendant asserts that the claimed functions are “well-understood, routine, conventional activities previously known to the industry.” Id. at 13-14 (quoting Alice, 573 U.S. at 225-26). Package Concierge further argues that the organization of the components of the 675 Patent does not constitute an inventive concept. Id. at 14-15. Luxer counters that whether the 675 Patent is inventive rests on a factual dispute that cannot be resolved at this stage of the litigation and that Package Concierge has not shown by clear and convincing evidence that the combination of elements in Claim One is conventional. Pl.s Br. at 11-16.
Defendant summarizes Claim One as:
the “lock interface having at least one processor that implements one or more machine instructions stored on at least one non-transitory computer readable medium” embodies this addition of generic
functions: The lock interface, for instance, “receiv[es] . . . a first signal“; send[s] . . . a second signal“; “verif[ies] . . . the request by authenticating the user identity“; and “open[s] the electronic lock,” among other similarly generic procedural steps.
Id. (quoting 675 Patent at 57:46-58:32). Package Concierge compares this series of actions to those taken by a receptionist that verifies a persons credentials before allowing them access to a secure mailroom or retrieves a package on their behalf. Id. at 13-14.
Package Concierge further argues that the components of the 675 Patent, individually and in combination, do not amount to an inventive concept. Def.s Br. at 14-15. Luxer contends that Defendant has not proven that the combination of components of the 675 Patent was conventional because it has failed to cite any prior-art patent or printed publication that disclosed the claimed components or their configuration. Pl.s Br. at 15-16. The language of the patent supports that several of the listed components are well-understood and used in conventional ways. For example, the background section states: “[t]ypically, the use of a lock provides security and privacy to a storage room(s) or a storage area(s). This specification recognizes issues in controlling electronic locks.” 675 Patent at 1:51-52. In describing the locks used in the system, the patent states: “[t]he electronic locks 103a-n may be any sort of locks including, but not limited to, one of, or any combination of, electronic locks that require a password or code to be
The system also uses generic components, such as a “door of a storage room that is stationary and part of a building,” “signal,” “machine readable medium,” “keypad,” and “processor.” 675 Patent at 9:10-14 (“Lock interface 112 is a device and/or system that is communicatively connected to each of the electronic
Luxer contends that, even if the individual components were generic, Package Concierge has not shown that their combination was conventional. Pl.s Br. at 15-16. An inventive concept can take the form of a non-conventional arrangement or configuration of conventional components. Bascom Global Internet Servs., Inc. v. AT&T Mobility LLC, 827 F.3d 1341, 1350 (Fed. Cir. 2016). For an
Luxer contends that it made representations to the Patent Office explaining why the 675 Patent constitutes an inventive concept over prior art. Pl.s Br. at 13. These representations included a statement that the ability to open the storage room door regardless of whether a package is oversized, “is an improvement in the functioning of the storage facility because it does not forc[e] the delivery person to return the package without delivering it.” Id. at 13-14 (quoting id. at Ex. 1 at 69-70). Luxer asserts that this explanation resulted in the Patent Office withdrawing its Section 101 rejection of the patent application. Id. at 14.
CONCLUSION
Upon consideration of Package Concierges Motion to Dismiss Pursuant to
ORDERED that Package Concierges Motion to Dismiss Pursuant to
ORDERED that Luxer Corporations Complaint (Doc. 1) is dismissed.
IT IS SO ORDERED this 6th day of February, 2025.
/s/ Jennifer Choe-Groves
Jennifer Choe-Groves
U.S. District Court Judge*
* Judge Jennifer Choe-Groves, of the United States Court of International Trade, sitting by designation.
