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Discovery Patent (10-600-ER)

Discovery Patent (10-600-ER)

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Published by: YCSTBlog on Feb 09, 2011
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11/14/2011

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The Court has jurisdiction pursuant to 28 U.S.C. §§
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1331 and 1338.-1-IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF DELAWAREDISCOVERY PATENT HOLDINGS, :CIVIL ACTIONLLC, et al.,:NO. 10-600-ER:Plaintiffs,::v.::AMAZON.COM, INC., et al.,::Defendants.:M E M O R A N D U MEDUARDO C. ROBRENO, J. FEBRUARY 4, 2011
I.INTRODUCTION
Plaintiff Discovery Communications, Inc., (“Discovery”or “Plaintiff”) initiated this action against DefendantAmazon.com, Inc. (“Amazon” or “Defendant”), alleging infringementof two of its patents in violation of 35 U.S.C. § 271 and seekinginjunctive relief, and compensatory and punitive damages.
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Before the Court are both parties’ briefing on claimconstruction with proffered definitions for disputed claim terms.For the reasons set forth below, the Court defines the claimterms as set out in the conclusion.
Case 1:10-cv-00600-ER Document 206 Filed 02/04/11 Page 1 of 49 PageID #: 5907
 
On October 2, 2008, Plaintiff sent Defendant a letter
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identifying the infringing conduct and products, and allegingthat certain patents for products Defendant was using and/orselling required a license. (Doc. no. 7 at 17.)- 2 -
II.BACKGROUND
On March 17, 2009, Plaintiff Discovery Communications,Inc., initiated this action against Defendant Amazon.com, Inc.,alleging infringement of Discovery’s ‘851 Patent in violation of35 U.S.C. § 271 and seeking injunctive relief and compensatoryand punitive damages. Discovery contends that Amazon is requiredto obtain a license to “make, use, sell, offer for sale and/orimport products” under numerous patents in Amazon’s E-book PatentPortfolio (including but not limited to the Kindle, the Kindle 2,and the content of other e-books). Id.
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On May 15, 2009, Amazon filed its Answer, assertingdefenses and counterclaims. (Doc. no. 7.) Therein, Amazonasserted the following four defenses: (1) non-infringement of the‘851 patent; (2) invalidity/unenforceability of the ‘851 patent;(3) inequitable conduct engaged in by Discovery in withholdingmaterial information to the USPTO regarding prosecution of the‘851 patent; and (4) patent misuse. (Id.) Amazon also allegespatent infringements by Discovery, in the area of electroniccommerce (“e-commerce”) and its underlying technology, seekingdeclaratory relief and compensatory and punitive damages.On July 14, 2010, Discovery filed a second, separate
Case 1:10-cv-00600-ER Document 206 Filed 02/04/11 Page 2 of 49 PageID #: 5908
 
As referenced in the pleadings, the disputed patents
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were as follows:- Count I:The 141 Patent is entitled Internet-Based Customer Referral System,” issuedon Feb. 2, 2000-Count II:The 133 Patent is entitled Internet-Based Customer Referral System,” issuedon Feb. 26, 2000-Count III:The 851 Patent is entitled ElectronicBook Security and Copyright ProtectionSystem,” issued on Nov. 20, 2007,seeking declaratory relief based ondisputed liability, patent invalidity,inequitable conduct and patent misuse- Count IV:The 690 Patent is entitled ElectronicBook Selection and Delivery Service,”issued on Nov. 15, 1999, seekingdeclaratory relief on the same bases-Count V:The 173 Patent is entitled PortableElectronic Book Viewer,” issued to JohnS. Hendricks on April 29, 2003, seekingdeclaratory relief on the same bases-Count VI:The 501 Patent is entitled ElectronicBook Selection and Delivery SystemHaving Encryption and SecurityFeatures,” issued to John S. Hendrickson Nov. 20, 2007, seeking declaratoryrelief on the same bases-Count VII:The 788 Patent is entitled ElectronicBook Secure Communication with HomeSubsystem,” issued to John S. Hendrickson Feb. 26, 2008, seeking declaratoryrelief on the same bases- 3 -complaint alleging infringement of its ‘690 patent. On August17, 2010, the Court consolidated both of Discovery’s complaintsand Amazon’s counterclaims into this action.Originally, eight patents were at issue. However,
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Case 1:10-cv-00600-ER Document 206 Filed 02/04/11 Page 3 of 49 PageID #: 5909

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