ORBCOMM Inc. v. CalAmp Corp.ORBCOMM Inc. v. CalAmp Corp.
MEMORANDUM OPINION (Defendant’s Motion for Reconsideration)
THIS MATTER is before the Court on Defendant CalAmp Corp.’s (“Defendant”) Motion for Reconsideration of Denial of Motion to Dismiss, filed on August 4, 2016. (ECF No. 35.) On May 27, 2016, Defendant moved to dismiss this patent infringement suit filed by Plaintiff ORBCOMM, Inc. (“Plaintiff’). (ECF No. 16.) On July 22, 2016, the Court denied Defendant’s Motion to Dismiss, finding that all five patents at issue constitute patent-eligible subject matter pursuant to 35 U.S.C. § 101. (ECF Nos. 29; 30.) In its Motion for Reconsideration, Defendant relies on a case recently decided by the United States Court of Appeals for the Federal Circuit, Electric Power Group, LLC v. Alstom S.A.,
I.BACKGROUND
This lawsuit concerns five separate but interrelated patents. They all involve machine-to-machine communication platforms designed for tracking and monitoring the location and status of widely dispersed fleet vehicles and related mobile assets. The specific patents-in-suit include the following:
1. U.S. Patent No. 6,292,724 (“the ’724 Patent”) (entitled “Method Of And System And Apparatus For Remotely Monitoring The Location, Status, Utilization And Condition Of Widely Geographically [Dispersed] Fleets of Vehicular Construction Equipment And The Like And Providing And Displaying Such Information”) (Compl. ¶ 21, ECF No. 1);
2. U.S. Patent No. 6,611,686 (“the ’686 Patent”) (entitled “Tracking Control And Logistics System And Method”) (Compl. ¶ 27);
3. U.S. Patent No. 6,651,001 (“the ’001 Patent”) (entitled “Method Of And System And Apparatus For Integrating Maintenance Vehicle And Service Personnel Tracking Information With The Remote Monitoring Of The Location, Status, Utilization And Condition Of Widely Geographically Dispersed Fleets Of Vehicular Construction Equipment And The Like To Be Maintained, And Providing And Displaying Together Both Construction And Maintenance Vehicle Information”) (Compl. ¶ 38);
4. U.S. Patent No. 6,735,150 (“the ’150 Patent”) (entitled “Method Of And Apparatus For Distinguishing Engine Idling And Working Hours”) (Compl. ¶ 43); and
5. U.S. Patent No. 8,855,626 (“the ’626 Patent”) (entitled “Wireless Control For Creation Of, And Command Response To, Standard Freight Shipment Messages”) (Compl. ¶ 51).
Defendant maintains, as it did in its original Motion to Dismiss, that all five of the patents-in-suit are invalid because they seek to patent abstract ideas, in contravention of 35 U.S.C.§ 101.
The denial of Defendant’s Rule (I2)(b)(6) Motion to Dismiss was an interlocutory order. See Occupy Columbia v. Haley,
It is clear that “[mjotions for reconsideration of interlocutory orders are not subject to the strict standards applicable to motions for reconsideration of a final judgment” under Rules 59(e) and 60(b). Id. at 514. However, the Fourth Circuit has declined to “thoroughly express [its] views on the interplay of Rules 60, 59 and 54.” Fayetteville,
“A motion to dismiss under Rule 12(b)(6) tests the sufficiency of a complaint; importantly, it does not resolve contests surrounding the facts, the merits of a claim, or the applicability of defenses.” Republican Party of N.C. v. Martin,
III. DISCUSSION
Section 101 of the Patent Act describes the subject matter eligible for patent protection. It provides: “[w]hoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new or useful improvement thereof, may obtain a patent therefor, subject to the conditions and re-
In Alice, the Supreme Court reiterated the two-step analytical framework “for distinguishing patents that claim laws of nature, natural phenomena, and abstract ideas from those that claim patent-eligible applications of those concepts.” Id. at 2355 (citing Mayo Collaborative Servs. v. Prometheus Labs., Inc.,
In Electric Power Group, the impetus for this Motion for Reconsideration, the Federal Circuit held that the patents in that case failed to meet the eligibility requirements of § 101. Elec. Power Grp.,
This Court’s reconsideration of the validity of the five patents-in-suit is informed by developments in the law brought about by Electric Power Group. Through that lens, each patent will be discussed in turn.
a. The ’626 Patent
The Court’s initial determinatión that the ’626 Patent comported with § 101 relied primarily on “the specialized monitoring features described in Claim 4 ... coupled with the format translation.” (Op. Den. Def.’s Mot. Dismiss 14-15, ECF No. 29.) In the Court’s view, these factors transformed the ’626 Patent from an abstract idea into “an innovative technological advancement.” (Id. at 15.) However, in Electric Power Group, the Federal Circuit
Claim 1, the only independent claim of the ’626 Patent, states:
A centralized freight asset monitoring system comprising:
a first receiver comprising an interface that inputs communication signals, the receiver receiving in real time a plurality of wireless messages, in a plurality of differing first formats that are not an industry standard freight message format and are encoded particularly for bandwidth restrictions of wireless communication links over which the wireless messages are sent, from a plurality of intelligent electronic devices associated with a plurality of freight assets, the wireless messages containing information of a monitored event or condition of the respective freight asset, wherein the receiver stores the information in a memory that holds a database of the wireless monitoring system;
a translator of the wireless monitoring system that translates in real time, utilizing a processor, the received wireless messages based upon the receipt in the respective first format into a message in a second format that is an industry standard freight message format used in an information system of a user of the freight asset;
a transmitter comprising an interface over which the messages in the second format are transmitted for delivery into the user information system based upon the translation;
a second receiver comprising an interface via which a message is received from the user containing a first command message to change a condition of a first freight asset associated with a first of the intelligent electronic devices and a second command message to change a condition of second freight asset associated with a second of the intelligent electronic devices; and
a second transmitter comprising an interface that:
responsive to receiving the first command message from the user, transmits, over the interface, the first command message to the first intelligent electronic device in the respective first format associated with the first intelligent electronic device; and
responsive to receiving the second command message from the user, transmits, over the interface, the second command message to the second intelligent electronic device in the respective first format associated with the second intelligent electronic device that differs from the first format associated with the first intelligent electronic device.
’626 Patent col. 5 1. 22-col. 6 1. 7. Distilled to its essence, the ’626 Patent claims a system that 1) receives wireless messages from a freight asset in a non-“industry standard freight message format”; 2)
1. Abstract Idea
Beginning at Alice step one, the claims at issue in the ’626 Patent fall squarely into a well-recognized category of claims “directed to” abstract ideas. Specifically, the claims describe a process of gathering information and translating it between two or more incompatible formats. Simply stated, they are directed to the wholly abstract idea of translation.
The Federal Circuit explicitly recognizes that information is an intangible and that “collecting information, including when limited to particular content (which does not change its character as information), [is] within the realm of abstract ideas.” Elec. Power Grp.,
2. Inventive Concept
Turning to the second stage of the Alice framework, the Court finds that the ’626 Patent does not add the requisite inventive material to transform the patent into more than an attempt to claim dominion over an abstract idea.
Determining whether a patent contains an inventive concept requires an evaluation of the particular combination of elements claimed in the patent. The Supreme Court has been clear that “the prohibition against patenting abstract ideas cannot be circumvented by attempting to limit the use of the [system] to a particular environment.” Bilski v. Kappos,
In this case, the fact that the scope of the ’626 Patent is limited to freight assets provides no inventive concept. Moreover, the ’626 Patent does not require any components that could be considered an “advance over conventional computer and network technology.” Elec. Power Grp.,
The Federal Circuit has established that an inventive concept can be found where “the claimed solution is necessarily rooted in computer technology in order to overcome a problem specifically arising in the realm of computer networks.” DDR Holdings, LLC v. Hotels.com, L.P.,
Plaintiff relies heavily on Messaging Gateway Solutions, a case from the United States District Court for the District of Delaware, to support its proposition that translating a wireless message into an industry standard freight message format is an inventive concept. The patent at issue in Messaging Gateway Solutions described “[a] method of using a computer system to facilitate two-way communication between a mobile device and an Internet server.” Messaging Gateway Sols.,
As noted by the Federal Circuit, claims that do no “more than simply describe [the] abstract method” but instead merely recite “conventional steps, specified at a high level of generality,” cannot pass muster under the second step of the Alice test. Ultramercial, Inc. v. Hulu, LLC,
b. The ’724, ’686, and ’001 Patents
Defendant also asserts that the ’724,-’686, and ’001 Patents should be held invalid in light of Electric Power Group; because of their similarity, these patents will be addressed together. All three patents pertain to the remote monitoring of fleet vehicles. Defendant maintains that its claims “are indistinguishable from the claims in Electric Power.” (Def.’s Mem. Supp. Mot. Recons. 6, ECF No. 36.) However, the same reasoning that guided the Court’s ruling in the original Motion to Dismiss compels the denial of the Motion for Reconsideration as to these three patents. Constrained by the four corners of the Complaint and patents, the Court is not convinced that these patents pertain to abstract ideas under Alice step one. However, even assuming that they do, when giving all reasonable inferences to Plaintiff at this Rule 12(b)(6) stage, they each appear to have an inventive concept sufficient to survive Alice step two.
Electric Power Group reiterates the well-established rule that use of “entirely conventional, generic technology” is itself not enough to establish an inventive concept. Elec. Power Grp.,
The claims of the ’724, ’686, and ’001 Patents all refer to the use of GPS for determining the location of a remote target or satellite communications for communicating that location information to a central processing station. See ’724 Patent col. 6 1. 18-21 (“upon each equipment transponder receiving GPS signals, causing the transponder to transmit to the satellite information regarding its location”); ’686 Patent col. 16 1. 10-11 (“comprising determining a global position”); ’001 Patent col. 6 1.4-6 (“upon receiving GPS signals, causing the transponder to transmit to the satellite, information as to its location”). When considering only the four corners. of the Complaint and attached patents, the Court cannot find that the GPS and satellite communications claimed in these patents constitute mere conventional, generic technology. Nothing in Electric Power Group suggests the contrary. At this stage, without the benefit of expert testimony, tying the claims to specific machines — GPS and satellite communications — makes these patents facially valid. See Bilski,
c. The ’150 Patent
As with the other patents-in-suit, Defendant also asserts that the ’150 Patent is invalid in light of Electric Power Group. Defendant maintains that this patent contains no inventive concept because it merely correlates engine component frequency with fuel consumption. (Def.’s Mem. Supp. Mot. Recons. 8.) However, Electric Power Group provides no new basis for the Court to reconsider its initial decision that the ’150 Patent constitutes eligible subject matter at this Rule 12(b)(6) stage.
The ’150 Patent claims a method of measuring engine run time by monitoring engine frequency. See. ’150 Patent col. 2 1.48-55. The patent’s background information indicates that this is an unconventional method of determining engine run time, something typically achieved by measuring fuel consumption. See T50 Patent col. 11. 23-24.
As with the ’724, ’686, and ’001 Patents, even assuming that measuring engine run time is an abstract idea, the T50 Patent is saved at Alice step two. The Complaint and attached patent clearly indicate that using engine frequency to measure run time is innovative technology. While an alternator is certainly a known, conventional machine, monitoring alternator frequency to measure engine run time is a non-conventional and non-generic use for that machine. See BASCOM,
IV. CONCLUSION
Based on the foregoing, Defendant’s Motion for Reconsideration -will be granted as to the ’626 Patent and denied as to the ’724, ’686, ’001, and ’150 Patents. The asserted claims of the ’626 Patent will be invalidated as an unpatentable abstract idea.
An appropriate Order will accompany this Memorandum Opinion.
Notes
. Rule 54(b) states in pertinent part:
[A]ny order or other decision, however designated, that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties does not end the action as to any of the claims or parties and may be revised at any time before the entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities.
Fed. R. Civ. P. 54(b).
. Plaintiff has not alleged infringement of Claims 5, 6, 8, 9, 10 or 11. Therefore, the Court will not address the validity of those claims.
. Claim 9 of the '626 Patent purports to limit the patent to apply only where a wireless message is translated into one of two specific formats — Electronic Data Exchange (EDI) and Extensible Mark-up Language (XML). Plaintiff has not alleged infringement of Claim 9. Therefore, its validity is not in issue.
. Defendant’s arguments also integrate novelty and obviousness issues. These are separate questions for another day. Cf. Parker v. Flook,