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NonEnd Innovations N.V. v. Spotify USA Inc., C.A. No. 12-1041-GMS

NonEnd Innovations N.V. v. Spotify USA Inc., C.A. No. 12-1041-GMS

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D. Del.
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11/30/2014

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IN THE UNITED STATES DISTRICT
COURT FOR
THE DISTRICT OF DELAWARE
)
NONEND INVENTIONS N.V., )
)
Plaintiff, )
)
V. )
)
SPOTIFY USA INC., a Delaware ) Corporation; SPOTIFY LIMITED, a
United)
Kingdom Corporation; SPOTIFY ) TECHNOLOGY SARL, a Luxembourg ) Corporation; and SPOTIFY AB, a Swedish ) Corporation, )
)
Defendants. ) Civil Action No. 12-1041-GMS Civil Action No. 13-389-GMS
ORDER CONSTRUING
THE
TERMS
OF
U.S.
PATENT
NOS
7,587,508, 7,590,752, 7,779,138, 8,090,862, 8,099,513, and 8,266,315
After having considered the submissions
of
the parties and hearing oral argument on the matter, IT IS HEREBY ORDERED, ADJUDGED, and DECREED that, as used in the asserted claims
of
U.S. Patent Nos. 7,587,508 (the
'508
patent"), 7,590,752 (the
'752
patent"), 7,779,138 (the
' 138
patent"), 8,090,862
(' the
862 patent"), 8,099,513 (the
'513
patent"), and 8,266,315 (the
' 315
patent"):
1
The
term streaming (n.) is construed to
mean
the continuous transmission
of
data packages that may be played
by
the receiver
while
the transmission
is
occurring.
The Plaintiff, Nonend Inventions N.V. ("Nonend"), proposes that this term be construed as "transmission
of
content that may be played by the receiver while the transmission is occurring." (D.I. 36, Ex. B at 1.) The Defendants, Spotify
USA
Inc., Spotify Limited, Spotify
'
I
 
i
i
t
l
i
j
I
I
f
f
I
I
 
Technology Sarl, and Spotify AB ( Spotify ), suggest the construction [t]he continuous transmission
of
data packages that are received by a receiver in sequential order and played by the receiver while the transmission is occurring.
Id.)
For the reasons that follow, the court adopts a combination
of
both parties proposed constructions. The parties' proposed constructions differ regarding four issues:
(1)
whether data packages or content are transferred; (2) whether the transmission must be continuous; (3) whether the data packages or content are received in sequential order; and (4) whether the data packages or content must be played by the receiver as they are being transmitted.
D.1.
39 at
5;
D.I. 40 at 10.) As the Federal Circuit has recognized, the specification is the single best guide to the meaning
of
a disputed term.
Phillips
v.
WH
Corp.,
415 F.3d 1303, 1315 (Fed. Cir. 2005) (citation omitted). Thus, the court consults the specification
of
the '508 patent.
1
The specification states categorically that [ c ]ontent namely is generally divided into smaller data packages that are subsequently transmitted. ('508 patent, 2:38-40.) The specification bolsters this by explaining, for instance, that [ s ]treaming video and streaming audio are known internet applications in which data packages with contents are transmitted from a server or station to clients or consumers.
Id.
at 7:2-4.) Thus, while Nonend is indeed correct that content is transmitted, it is more accurate to state that data packages are transmitted since the specification makes clear that data packages are the component units
of
content. Regarding continuity, the specification states that [t]he special thing about these data packages is that the time sequence
of
the various packages is
of
importance Additionally, the
The specifications
of
the patents-in-suit are virtually identical. (D.l. 36 at
1,
n.1.) Thus,
in
keeping with the parties' preference, (D.l. 39 at
2,
n.2; D.l. 40 at
1,
n.1), the court cites to the specification
of
the '508 patent, unless otherwise noted.
2
l
 
continuity
of
the data flow is
of
importance, as otherwise the broadcast will falter.
Id.
at 7:4-9.) Although, as Nonend points out, the claims do not explicitly mention continuous and sequential content transmission, the specification's description
of
the invention is clear and must be considered in determining the scope
of
the invention. The repetition in the specification
of
the importance
of
continuity indicates that continuity must be an aspect
of
the invention. As is the case with continuity, the specification explains repeatedly that the sequential order
of
data packages is
of
importance. Nonend is correct, however, that the specification does not indicate that this be a feature
of
every embodiment. (D.I. 39 at 6.) For instance, the specification states at the outset that [i]n case
of
streaming audio
or
video application the sequential order
of
several data packages is
of
importance because en route delaying during the transmission
of
a data package results in an irregular broadcast.
Id.
at 2:40-43.) This mention
of
sequential order is cabined to streaming audio and video applications and the language is not sufficiently broad to suggest that it is intended to constrain the very character
of
the invention. Likewise, the specification also states that [d]uring data transfer, particularly during data transfer wherein the sequential order is
of
importance, such as for instance streaming audio and streaming video in internet applications, an optimal data connection is
of
great importance.
Id.
at 6:12-16.) This instance again limits the importance
of
sequential order to streaming audio and video. Thus, the court concludes that, contrary to Spotify's arguments, streaming does not require that data packages be received in sequential order. Just as Nonend has the right
of
the sequential order issue, Nonend is also correct that the data packages need not be played as they are being transmitted. Spotify argues that since the patentees distinguished the prior art on the basis that the prior art requires that the entire file be 3
f
l

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