Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Cardionet, LLC. v. The ScottCare Corp.

United States District Court, E.D. Pennsylvania

July 12, 2018

CARDIONET, LLC, et al., Plaintiffs,
v.
THE SCOTTCARE CORPORATION, et al., Defendants.

          MEMORANDUM

          TUCKER, J.

         In the present motion, Defendants, The ScottCare Corporation and Ambucor Health Solutions, Inc., ask that the Court grant their Motion for judgment on the pleadings or, in the alternative, summary judgment with respect to Plaintiffs' asserted claims of United States Patent Nos. 7, 212, 850 (“'850 Patent”) and 7, 907, 996 (“'996 Patent”) because these claims are patent-ineligible pursuant to 35 U.S.C. § 101. For the reasons set forth more fully below, Defendants' Motion is GRANTED.

         I. FACTUAL AND PROCEDURAL BACKGROUND

         Plaintiffs have alleged that Defendants infringed claims 31 and 32 of the '850 Patent and claims 1, 12, and 23 of the '996 Patent. (Second Am. Compl. ¶¶ 27-44, Doc. 58.) The patent claims are allegedly directed to “special purpose remote cardiac monitoring systems” that are useful in treating patients with arrhythmias including atrial fibrillation. (Pls.' Opp'n Defs.' Mot. J. Pleadings 1, Doc. 207.)

         On June 2, 2017, Defendants filed the instant Motion arguing that Plaintiff is collaterally estopped from alleging infringement of claim 31 of the '850 Patent and claim 12 of the '996 Patent following the district court's decision in CardioNet, LLC, et al. v. InfoBionic, Inc., 2017 U.S. Dist. LEXIS 68241 (D. Mass. May 4, 2017). In that case, in ruling on defendant's motion for judgment on the pleadings, the court determined that claim 31 of the '850 Patent and claim 12 of the '996 Patent are patent ineligible pursuant to 35 U.S.C. § 101. In InfoBionic, Inc., the court concluded that claim 31 of the '850 Patent and claim 12 of the '996 Patent are directed to a common-sense “abstract idea of correlating one set of data to another.” Id. at *21. The court explained:

Claim 31 of the '850 Patent and Claim 12 of the '996 Patent, read in conjunction with the patent specifications, recite a system that receives computer-generated “arrhythmia information from the monitoring system and . . . human-assessed arrhythmia information from the monitoring station, ” U.S. Patent No. 7, 212, 850 col. 9 ll. 48-51, to “selectively present[] information regarding the identified events based on the measure of correlation” between the two sets of information, U.S. Patent No. 7, 907, 996 col. 1 ll. 45-47. The claimed system is analogous to a medical professional analyzing the physiological data and comparing his or her assessment with a colleague's second opinion. The medical professional also consolidates his or her assessment with that of his or her colleague, based on the same physiological data, to arrive at a more accurate diagnosis. This suggests that the claims are directed to the abstract idea of “a longstanding, well-known method of organizing human behavior, ” where a computer only facilitates such existing practices. Bascom [Glob. Internet Servs., Inc. v. AT&T Mobility LLC], 827 F.3d [1341, ] 1348 [(Fed. Cir. 2016)].

Id. at *18-19. The court further concluded that “[the two claims at issue] do not add an inventive concept sufficient to be patent-eligible subject matter under Section 101.” Id. at *24. The court then requested additional briefing as to whether the claims at issue were representative of all of Plaintiffs' '850 and '996 claims. Id. at *31. After considering the additional briefing, the court found that claim 31 of the '850 Patent and claim 12 of the '996 Patent were representative of all of Plaintiffs' claims in the '850 and '996 Patents. (Ex. D, Doc. 204.)

         On June 11, 2015, the Parties negotiated and entered into a Stipulation, which was intended to remain in effect for the “remainder of this action.” (Stipulation 1, Doc. 165.) Pursuant to the Parties' Stipulation, ScottCare agreed that it would “not assert in this action invalidity of: (a) any claims of CardionNet's United States Patent Nos. 7, 907, 996 . . . .” (Stipulation ¶ 4, Doc. 165.) ScottCare also stipulated that it would not challenge the validity of any claim of Patent '850 except claims 31 and 32. (Stipulation ¶¶ 1, 4, Doc. 165.) On June 7, 2017, the Court approved and adopted the Parties' Stipulation. (Order, Doc. 193.)

         II. STANDARD OF REVIEW

         Under Federal Rule of Civil Procedure 12(c), a party may move for judgment on the pleadings after the pleadings are closed, as long as the party does so early enough not to delay the trial. Fed.R.Civ.P. 12(c). Courts in this Circuit construe motions for judgment on the pleadings that assert failure to state a claim under the same standard as motions to dismiss made pursuant to Rule 12(b)(6). Katzenmoyer v. City of Reading, 158 F.Supp.2d 491, 496 (E.D. Pa. 2001). “The only notable difference between these two standards is that the court in a motion on the pleadings reviews not only the complaint but also the answer and written instruments attached to the pleadings.” Sprague v. Neil, No. 1:05-CV-1605, 2007 WL 3085604, at *2 (M.D. Pa. Oct. 19, 2007).

         To survive a motion to dismiss under Rule 12(b)(6), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.'” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 554, 570 (2007)). A complaint is plausible on its face when its factual allegations allow a court to draw a reasonable inference that a defendant is liable for the harm alleged. Santiago v. Warminster Twp., 629 F.3d 121, 128 (3d Cir. 2010). A court must accept as true all factual allegations contained in a complaint and interpret them in the light most favorable to the plaintiff. Argueta v. U.S. Immigration & Customs Enf't, 643 F.3d 60, 74 (3d Cir. 2011).

         III. DISCUSSION

         Defendants argue that the InfoBionic, Inc. decision is a valid final judgment to which the Court should afford issue preclusive effect. Plaintiffs maintain that the InfoBionic, Inc. decision is entitled to no preclusive effect because it was an interlocutory ruling which is not appealable; therefore, it cannot constitute a final judgment.

         In light of the United States Supreme Court's holding in Blonder-Tongue Labs. v. University of Illinois Found., this Court finds that Plaintiffs are collaterally estopped from alleging infringement of the '850 Patent and '996 Patent because the court for the District of Massachusetts has made a prior determination that the these claims are patent ineligible. 402 U.S. 313 (1971). The doctrine of collateral estoppel, commonly referred to as issue preclusion, precludes a party from litigating a second time an issue that has previously been decided in a former judicial proceeding. Scooper Dooper, Inc. v. Kraftco Corp., 494 F.2d 840, 844 (3d Cir. 1974). In Blonder-Tongue, the Supreme Court unanimously held that where a patent had been declared invalid in a prior adjudication, an unrelated defendant in a subsequent action for infringement may assert a collateral estoppel defense based on the previous judgment. 402 U.S. at 321; Kaiser Indus. Corp. v. Jones & Laughlin Steel Corp., 515 F.2d 964, 976 (3d Cir. 1975). In its ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.