Realtime Data LLC v. Array Networks Inc.

• Decision Date: 04 May 2021
• Docket Number: Civil Action No. 17-0925-CFC,Civil Action No. 17-0800-CFC CONSOLIDATED
• Citation: 537 F.Supp.3d 591
• Parties: REALTIME DATA LLC, Plaintiff, v. ARRAY NETWORKS INC., et al., Defendant. Realtime Data LLC, Plaintiff, v. Spectra Logic Corp., Defendant.
• Court: U.S. District Court — District of Delaware

537 F.Supp.3d 591

REALTIME DATA LLC, Plaintiff,

v.ARRAY NETWORKS INC., et al., Defendant.

Realtime Data LLC, Plaintiff,

v.Spectra Logic Corp., Defendant.

Civil Action No. 17-0800-CFC CONSOLIDATED

Civil Action No. 17-0925-CFC

United States District Court, D. Delaware.

Signed May 4, 2021

Stephen B. Brauerman, BAYARD, P.A., Wilmington, Delaware; C. Jay Chung, Christian X. Conkle, Marc A. Fenster, Adam S. Hoffman, Paul A. Kroeger, Reza Mirzaie, Philip X. Wang, RUSS AUGUST & KABAT, Los Angeles, California, Counsel for Plaintiff.

Geoffrey Graham Grivner, BUCHANAN INGERSOLL & ROONEY P.C., Wilmington, DE, Counsel for Defendant Array Networks, Inc.

Jack B. Blumenfeld, Brian P. Egan, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; Jeffrey J. Lyons, BAKER & HOSTETLER, Wilmington, Delaware, Counsel for Defendant Fortinet, Inc.

Andrew Colin Mayo, ASHBY & GEDDES, Wilmington, Delaware; Guy Yonay, Kyle Auteri, PEARL COHEN ZEDEK LATZER BARATZ LLP, New York, New York, Counsel for Defendant Reduxio Systems, Inc.

Brian P. Egan, MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; Jeffrey J. Lyons, BAKER & HOSTETLER, Wilmington, Delaware, Counsel for Defendant Panzura.

Steven L. Caponi, K&L GATES LLP, Wilmington, Delaware; Elizabeth J. Weiskopf, Nicholas F. Lenning, Theodore J. Angelis, K&L GATES LLP, Seattle, Washington, Counsel for Defendant Quest Software, Inc.

Andrew Colin Mayo, ASHBY & GEDDES, Wilmington, Delaware, Counsel for Defendant CTERA Networks, Ltd.

Kenneth Laurence Dorsney, MORRIS JAMES LLP, Wilmington, Delaware; Joshua M. Masur, ZUBER LAWLER & DEL DUCA LLP, Redwood City, California, Counsel for Defendant Aryaka Networks, Inc.

Robert M. Vrana, YOUNG, CONWAY, STARGATT & TAYLOR LLP, Wilmington, Delaware, Counsel for Defendant Nimbus Data, Inc.

Kelly E. Farnan, Renee Mosley Delcollo, RICHARDS, LAYTON & FINGER, PA, Wilmington, Delaware; Richard G. Frenkel, Lisa K. Nguyen, LATHAM & WATKINS LLP, Menlo Park, CA; Gabriel K. Bell, LATHAM & WATKINS LLP, Washington, D.C.; Amit Makker, LATHAM & WATKINS LLP, San Francisco, CA, Counsel for Defendant Kaminario, Inc.

David Ellis Moore, Alan Richard Silverstein, Bindu Ann George Palapura, POTTER ANDERSON & CORROON, LLP, Wilmington, Delaware; Katherine R. McMorrow, Manny J. Caixeiro, DENTONS US LLP, Los Angeles, California; Timothy J. Carroll, DENTONS US LLP, Chicago, Illinois; Scott S. Crocker, Steven R. Sprinkle, SPRINKLE LAW GROUP, Austin, Texas, Counsel for Defendant Open Text, Inc.

Robert M. Vrana, YOUNG, CONWAY, STARGATT & TAYLOR LLP, Wilmington, Delaware; Hilary L. Preston, VINSON & ELKINS LLP, New York, New York; Parker D. Hancock, VINSON & ELKINS LLP, Houston, Texas, Counsel for Defendant MongoDB Inc.

Stephen J. Kraftschik, POLSINELLI PC, Wilmington, Delaware, Counsel for Defendant Buurst, Inc. f/k/a SoftNAS, Inc.

Carl Douglas Neff, FISHERBROYLES, LLP, Wilmington, Delaware; Ryan T. Beard, FISHER BROYLES, Austin, Texas; Christopher R. Kinkade, FISHER BROYLES, Princeton, New Jersey, Counsel for Defendant Egnyte, Inc.

David Ellis Moore, Bindu Ann George Palapura, Stephanie E. O'Bryne, POTTER ANDERSON & CORROON, LLP; Wilmington, Delaware; Robert E. Purcell, THE LAW OFFICE OF ROBERT E. PURCELL, PLLC, Syracuse, New York, Counsel for Defendant Spectra Logic Corp.

MEMORANDUM OPINION

COLM F. CONNOLLY, UNITED STATES DISTRICT JUDGE

Plaintiff Realtime Data LLC has sued fourteen Defendants for infringement of various combinations of eight patents it holds: U.S. Patent Nos. 7,415,530 (the #530 patent), 8,717,203 (the #203 patent), 8,717,204 (the #204 patent), 8,933,825 (the #825 patent), 9,054,728 (the #728 patent), 9,116,908 (the #908 patent), 9,667,751 (the #751 patent), and 10,019,458 (the #458 patent). The asserted patents are directed to systems and methods involving data compression.

Pending before me are motions to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) filed by six Defendants. Realtime Data LLC v. Fortinet, Inc. , No. 17-1635, D.I. 11; Realtime Data LLC v. Spectra Logic Corp. , No. 17-0925, D.I. 41; Realtime Data LLC v. Reduxio Systems, Inc. , No. 17-1676, D.I. 9; Realtime Data LLC v. Panzura, Inc. , No. 18-1200, D.I. 21; Realtime Data LLC v. Aryaka Networks, Inc. , No. 18-2062, D.I. 15; Realtime Data LLC v. Kaminario, Inc. , No. 19-0350, D.I. 23. All six Defendants argue that I should dismiss Realtime Data's complaints because the asserted patents are invalid under 35 U.S.C. § 101 for failing to claim patentable subject matter. Some Defendants argue additional grounds for dismissal, but because I find all the asserted patents invalid on § 101 grounds I do not reach those arguments.

I. BACKGROUND

Realtime alleges that it is a developer of data compression technology and that it maintains an active patent licensing business. See Fortinet , No. 17-1635, D.I. 1 ¶ 1. The asserted patents claim variations on a common theme. The patents all relate to methods and systems for compression and decompression of data. Each of the eight patents has one of three shared written descriptions. The #825, #728, and #203 patents share one written description; the #530, #908, and #458 patents share another written description; and the #204 and #751 patents share a third written description.

Kaminario challenges as ineligible the #825 and #458 patents. Kamanario, Fortinet, Reduxio, Panzaura, and Aryaka challenge the #751 patent. Fortinet, Spectra, Reduxio, Panzaura, and Aryaka challenge the #728 and #908 patents. Fortinet and Reduxio challenge the #203 patent. Spectra challenges the #204 patent. And Spectra, Panzura, and Aryaka challenge the #530 patent.

Claim 18 of the #825 recites

[a] method comprising:

associating at least one encoder to each one of a plurality of parameters or attributes of data:

analyzing data within a data block to determine whether a parameter or attribute of the data within the data block is identified for the data block;

wherein the analyzing of the data within the data block to identify a parameter or attribute of the data excludes analyzing based only on a descriptor that is indicative of the parameter or attribute of the data within the data block;

identifying a first parameter or attribute of the data of the data block;

compressing, if the first parameter or attribute of the data is the same as one of the plurality of parameter or attributes of the data, the data block with the at least one encoder associated with the one of the plurality of parameters or attributes of the data that is the same as the first parameter or attribute of the data to provide a compressed data block; and

compressing, if the first parameter or attribute of the data is not the same as one of the plurality of parameters or attributes of the data, the data block with a default encoder to provide the compressed data block.

Claim 25 of the #728 patent recites

[a] computer implemented method comprising:

analyzing, using a processor, data within a data block to identify one or more parameters or attributes of the data within the data block;

determining, using the processor, whether to output the data block in a received form or in a compressed form; and

outputting, using the processor, the data block in the received form or the compressed form based on the determination,

wherein the outputting the data block in the compressed form comprises determining whether to compress the data block with content dependent data compression based on the one or more parameters or attributes of the data within the data block or to compress the data block with a single data compression encoder; and

wherein the analyzing of the data within the data block to identify the one or more parameters or attributes of the data excludes analyzing based only on a descriptor that is indicative of the one or more parameters or attributes of the data within the data block.

Claim 1 of the #908 patent recites

[a] system comprising:

a memory device; and

a data accelerator configured to compress: (i) a first data block with a first compression technique to provide a first compressed data block; and (ii) a second data block with a second compression technique, different from the first compression technique, to provide a second compressed data block;

wherein the compressed first and second data blocks are stored on the memory device, and the compression and storage occurs faster than the first and second data blocks are able to be stored on the memory device in uncompressed form.

Clam 1 of the #530 patent recites

[a] system comprising:

a memory device; and

a data accelerator, wherein said data accelerator is coupled to said memory device, a data stream is received by said data accelerator in received form, said data stream includes a first data block and a second data block, said data stream is compressed by said data accelerator to provide a compressed data stream by compressing said first data block with a first compression technique and said second data block with a second compression technique, said first and second compression techniques are different, said compressed data stream is stored on said memory device, said compression and storage occurs faster than said data stream is able to be stored on said memory device in said received form, a first data descriptor is stored on said memory device indicative of said first compression technique, and said first descriptor is utilized to decompress the portion of said compressed data stream associated with said first data block.

Claim 9 of the #458 patent recites

[a] method for accelerating data storage comprising:

analyzing a first data block to determine a parameter of the first data block;

applying a first encoder associated with the determined parameter of the first data block to create a first encoded, data block wherein the first encoder utilizes a lossless dictionary compression technique;

analyzing a second data block to determine a parameter of the second data block;

applying a second encoder associated with the determined parameter of the second data block to create a second encoded data

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