Blackboard V. Desire2learn
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Case 9:06-cv-00155-RHC Document 369 Filed 03/24/2008 Page 1 of 36 UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS LUFKIN DIVISION Blackboard Inc., § § Plaintiff, § § Case No. 9:06-CV-155 vs. § § Desire2Learn Inc., § § JUDGE RON CLARK Defendant. § § § DESIRE2LEARN’S POSTVERDICT MOTION FOR JUDGMENT AS A MATTER OF LAW AND MOTION FOR A NEW TRIAL CHIC_2211518.3 Case 9:06-cv-00155-RHC Document 369 Filed 03/24/2008 Page 2 of 36 TABLE OF CONTENTS I. INTRODUCTION .............................................................................................................. 1 II. UNDISPUTED MATERIAL FACTS ................................................................................ 1 III. ISSUES PRESENTED........................................................................................................4 IV. ARGUMENT...................................................................................................................... 5 A. Bb Failed to Present Substantial Evidence to Support a Jury Finding That All Steps of Claim 36 Are Performed Within the United States. ........................... 6 B. Bb Failed To Provide Substantial Evidence Showing that Any Single Entity Performs Each and Every Step of the Asserted Claims. .............................. 8 C. Bb Failed to Present Sufficient Evidence of Specific Instances of Infringement.......................................................................................................... 10 D. Bb Failed to Present Substantial Evidence That All Steps of Claim 36 Were Performed After the Issuance of the ’138 Patent. ....................................... 11 E. Bb Failed to Present Substantial Evidence to Support a Jury Finding That D2L Indirectly Infringes Pursuant to 35 U.S.C. § 271. ........................................ 13 F. Claims 36-38 Are Invalid as Anticipated as a Matter of Law Under a Proper Application of the Court’s Claim Construction Or, Alternatively, D2L is Entitled to a New Trial on the Issue of Invalidity..................................... 15 1. Clear and Convincing Evidence Establishes that Claims 36-38 of the ’138 Patent Are Invalid as Anticipated............................................... 15 a. CourseInfo ILN v1.5 Anticipates Claims 36-38........................... 16 b. Serf 1.0 Anticipates Claims 36-38................................................ 17 2. In the Alternative, D2L is Entitled to a New Trial on Invalidity.............. 18 G. Claims 36-38 Are Obvious as a Matter of Law. ................................................... 21 1. Claims 36-38 Are Obvious Combinations of Prior Art Elements. ........... 22 2. Claims 36-38 Are Obvious in View of the Cook and Win Patents. ......... 26 3. Secondary Considerations Are Unrelated to the Claimed Invention and Fail to Overcome Evidence of Obviousness. ..................................... 27 H. The Lost Profits Damages Award Is Not Supported by Substantial Evidence................................................................................................................ 28 I. Entry of a Post-Judgment Rate of Interest in Excess of the Statutory Rate is a Manifest Error of Law.................................................................................... 29 J. Court’s Judgment Should be Altered to Reflect that Claims 1-35 are Invalid. .................................................................................................................. 30 V. CONCLUSION................................................................................................................. 30 i CHIC_2211518.3 Case 9:06-cv-00155-RHC Document 369 Filed 03/24/2008 Page 3 of 36 TABLE OF AUTHORITIES CASES ACCO Brands, Inc. v. ABA Locks Mfrs. Co., Ltd., 501 F.3d 1307 (Fed. Cir. 2007) .................... 11 BMC Resources, Inc. v. Paymentech, L.P., 498 F.3d 1373 (Fed. Cir. 2007).................................. 8 Bradley v. Armstrong Rubber Co., 130 F.3d 168 (5th Cir. 1997) .................................................. 5 C.R. Bard, Inc. v. Advanced Cardiovascular Sys., Inc., 911 F.2d 670 (Fed. Cir. 1990) ................ 6 Cardiac Pacemakers, Inc. v. St. Jude Medical, Inc., 418 F. Supp. 2d 1021 (S.D. Ind. 2006)...... 11 Celeritas Technologies, Ltd. v. Rockwell Intern. Corp. 150 F.3d 1354 (Fed. Cir. 1998)............... 6 Cybiotronics, Ltd. v. Golden Source Electronics Ltd., 130 F. Supp. 2d 1152 (C.D. Cal. 2001)…………………………………………………………………………………………12 DePuy Spine, Inc. v. Medtronic Sofamor Danek, Inc., --- F. Supp. 2d ----, 2008 WL 48358 (D. Mass. Feb. 25, 2008)…………………………………………………………………………19 DSU Med. Corp. v. JMS Co., Ltd., 471 F.3d 1293 (Fed. Cir. 2006)............................................. 12 Dynacore Holdings Corp. v. U.S. Philips Corp, 363 F.3d 1263 (Fed. Cir. 2004)........................ 11 Exxon Chem. Patents, Inc. v. Lubrizoil Corp., 64 F.3d 1553 (Fed. Cir. 1995) ............................ 20 Finnigan Corp. v. Int’l Trade Comm’n, 180 F.3d 1354 (Fed. Cir. 1999)..................................... 15 Goodwall ConsTr. Co. v. Beers ConsTr. Co., 991 F.2d 751 (Fed. Cir. 1993) ............................. 30 Hiltgen v. Sumrall, 47 F.3d 695 (5th Cir. 1995)............................................................................. 5 Hollywood Fantasy Corp. v. Gabor, 151 F.3d 203 (5th Cir. 1998)................................................ 6 In re GPAC, 57 F.3d 1573 (Fed. Cir. 1995)……………………………………………………..27 Joy Techs., Inc. v. Flakt, Inc., 6 F.3d 770 (Fed. Cir. 1993) ............................................................ 6 KSR Intern. Co. v. Teleflex, 127 S.Ct. 1727 (2007)...................................................................... 22 Leapfrog Enter., Inc. v. Fisher-Price, Inc., 485 F.3d 1157 (Fed. Cir. 2007)................................ 22 Markman v. Westview Instruments, Inc., 517 U.S. 371 (1996) .................................................... 20 Medtronic Navigation, Inc. v. BrainLab Medizinische Computersystems Gmbh, 2008 WL 410413 (D. Colo. Feb. 12, 2008)………………………………………………...…………………...13 ii CHIC_2211518.3 Case 9:06-cv-00155-RHC Document 369 Filed 03/24/2008 Page 4 of 36 Monsanto Co. v. Syngenta Seeds, Inc., 503 F.3d 1352 (Fed. Cir. 2007) ...................................... 11 Newell Cos. v. Kenney Mfg. Co., 864 F.2d 757 (Fed. Cir. 1988) ................................................. 28 NTP, Inc. v. Research In Motion, Ltd., 418 F.3d 1282 (Fed. Cir. 2005) ........................................ 6 Richardson-Vicks Inc. v. Upjohn Co., 122 F.3d 1476 (Fed. Cir. 1997).......................................... 6 Seachange Intern., Inc. v. C-COR, Inc., 413 F.3d 1361 (Fed. Cir. 2005) .................................... 20 Smith v. Transworld Drilling Co., 773 F.2d 610 (5th Cir. 1985) ................................................... 5 Smiths Indus. Med. Sys., Inc. v. Vital Signs, Inc., 183 F.3d 1347 (Fed. Cir. 1999) ...................... 15 Standard Havens Prods., Inc. v. Gencor Indus., Inc., 953 F.2d 1360 (Fed. Cir. 1992) ................. 6 Sulzer Textil A.G. v. Picanol N.V., 358 F.3d 1356 (Fed. Cir. 2004)............................................. 20 Tegal Corp. v. Tokyo Electron Co., 248 F.3d 1376 (Fed. Cir. 2001)…………………………...14 Templet v. HydroChem Inc., 367 F.3d 473 (5th Cir. 2004) ............................................................ 5 Trell v. Marlee Elec. Corp., 912 F.2d 1443 (Fed. Cir. 1990)……………………………………12 Wahpeton Canvas Co. v. Frontier, Inc., 870 F.2d 1546 (Fed. Cir. 1989) ...................................... 8 Warner-Lambert Co. v. Apotex Corp., 316 F.3d 1348 (Fed. Cir. 2003)....................................... 14 Zoltek Corp. v. United States, 51 Fed. Cl. 829 (2002).................................................................... 5 STATUTES 28 U.S.C. § 1961........................................................................................................................... 30 35 U.S.C. § 102............................................................................................................................. 15 35 U.S.C. § 103............................................................................................................................. 22 35 U.S.C. § 271............................................................................................................................... 6 iii CHIC_2211518.3 Case 9:06-cv-00155-RHC Document 369 Filed 03/24/2008 Page 5 of 36 I. INTRODUCTION Defendant Desire2Learn Inc. (“D2L”) renews the motions for judgment as a matter of law that made prior to the Court’s submitting the case to the jury and moves for judgment as a matter of law under Federal Rule of Civil Procedure 50(b), or for a new trial under Rule 59. II. UNDISPUTED MATERIAL FACTS 1. Blackboard Inc. (“Bb”) asserted claims 36-38 of the ’138 patent. Claims 37 and 38 depend from claim 36. (PX-1, at Col. 32.) 2. Bb failed to prove that each and every step of the claims takes place in the United States. For D2L Canadian-hosted clients the Learning Environment resides on servers located in Canada. D2L installs and upgrades the Learning Environment for all clients from its offices in Canada. (Tr. 565:15-566:2, 566:14-22, 588:11-589:15, 1291:10-1292:24, 1508:2-13, 1556:17- 1557:6, 1557:23-1558:11, 1874:11-1876:8.)1 3. Bb failed to prove that a single entity performs each step of the asserted claims. Step (a) of claim 36 is performed, if at all, by D2L; steps (b)(i) and (b)(ii) are performed by instructors; steps (c) and (d) are performed by the entity hosting the system. Claim 37 can only be performed