Synchronoss Techs., Inc. v. Dropbox Inc.

226 F.Supp.3d 1000

SYNCHRONOSS TECHNOLOGIES, INC., Plaintiff,

v.DROPBOX INC., et al., Defendants.

Case No. 16–cv–00119–HSG

United States District Court, N.D. California.

Signed December 22, 2016

Joel Nathan Bock, Andrew Marc Grodin, Dentons U.S. LLP, Joel N. Bock, SNR Denton U.S. LLP, Short Hills, NJ, Shailendra K. Maheshwari, SNR Denton U.S. LLP, Mark Lee Hogge, Nicholas Hunt Jackson, Dentons U.S. LLP, Washington, DC, Sarah S. Eskandari, Dentons U.S. LLP, San Francisco, CA, for Plaintiff.

Adam D. Harber, Christopher John Mandernach, David M. Krinsky, Thomas H.L. Selby, Williams and Connolly, LLP, Washington, DC, Jonathan Alan Patchen, Stephen E. Taylor, Taylor & Patchen, LLP, Sonali Deeksha Maitra, Durie Tangri LLP, San Francisco, CA, Robert M. Goodman, Thomas Kiley Murphy, III, Greenbaum, Rowe, Smith & Davis, LLP, Roseland, NJ, for Defendants.

ORDER DENYING MOTION TO DISMISS

HAYWOOD S. GILLIAM, JR., United States District Judge

I. INTRODUCTION

Pending before the Court is Defendant Dropbox, Inc.'s motion to dismiss. Defendant argues that United States Patent Nos. 6,671,757 ("the '757 Patent"), 7,587,446 ("the '446 Patent") and 6,757,696 ("the '696 Patent") are invalid because their claims are directed to patent-ineligible subject matter. As a result, Defendant contends that the Court should dismiss Plaintiff Synchronoss Technologies, Inc.'s complaint for failure to state a claim. For the reasons explained below, the Court DENIES the motion.

II. BACKGROUND

Plaintiff filed this action on March 27, 2015 in the Northern District of New Jersey, alleging infringement of the '757, '446, and '696 Patents. Dkt. No. 1. On December 30, 2015, Defendant's motion to transfer the case to the Northern District of California was granted. Dkt. Nos. 24, 35. On March 10, 2016, Defendant filed the pending motion to dismiss. Dkt. No. 81.

A. '757 Patent

The '757 Patent is titled "Data Transfer and Synchronization." '757 Patent. The specification describes a system and method for "efficiently, quickly, and easily synchronizing devices which can couple to the Internet, or any network." See '757 Patent at 3:23–25.¹

Independent claim 1 describes:

1. A system for synchronizing data between a first system and a second system, comprising:

a first sync engine on the first system interfacing with data on the first system to provide difference information in a difference transaction;a data store coupled to the network and in communication with the first and second systems; and

a second sync engine on the second system coupled to receive the difference information in the difference transaction from the data store via the network, and interfacing with data on the second system to update said data on the second system with said difference information;

wherein each said sync engine comprises a data interface, a copy of a previous state of said data, and a difference transaction generator.

Id. at 46:57–47:7.

Fourteen claims depend from Claim 1 and add further limitations such as: (1) where the "first system and second system are coupled to the server via a private network," Claim 2; (2) where the apparatus of Claim 1 includes a "management server coupled to the network and in communication with the first sync engine, the second sync engine and the data store," Claim 8; and (3) where the "data on said first system comprises application data having a plurality of application specific formats, and said difference information is provided for each of said formats in a universal format to said data store," Claim 14. See id. at 47:8–54.

Additionally, the '757 Patent contains two other independent claims, Claims 16 and 24, which include similar limitations to Claim 1. Claim 16 describes:

A system , comprising:

a first device including at least a first data file and first differencing code, the first device having an input and an output coupled to a network to receive first device data change transactions from, and provide change transactions generated by the first differencing code based on said at least one data file to, said network;

a data store coupled to the network having at least one data structure coupled to store change transactions; and

a second device including at least a second data file and second differencing code, the second device having an input and an output coupled to the network to receive said first device data change transactions from, and provide second change transactions generated by the second differencing code based on said at least second data file to, said data store;

wherein said first differencing code includes a first sync engine having a first data interface, a first copy of a previous state of said data, and a first difference transaction generator, and said second differencing code includes a second sync engine having a second data interface, a second copy of a previous state of said data, and a second difference transaction generator.

Id. at 48:1–24. Claim 16 has six dependent claims. See id. at 48:25–50.

Claim 24 describes:

An Internet synchronization system , comprising:

a storage server having an Internet connection;

a first device coupled to the Internet and including a first device sync engine interfacing with data on the first device, the first device in communication with at least the storage server; and

a second device coupled to the Internet and including a second device sync engine interfacing with data on the second device, the second device in communication with at least the storage server;

wherein each said device sync engine comprises a data interface, a copy of a previous state of said data, and a difference transaction generator.

Id. at 48:51–64. Claim 24 has five dependent claims. See id. at 48:65–50:9.

B. '446 Patent

The '446 Patent incorporates the '757 Patent in its entirety, and is titled "Acquisition and Synchronization of Digital Media to a Personal Information Space." The invention "comprises a method for acquiring and maintaining a digital music store in personal information space, comprising: maintaining a personal information space identified with a user including data capable of being used on a client device, and transferring at least a portion of the data from the personal information space to an Internet-coupled device in response to a user request." '446 Patent at 3:45–51.² Independent claim 1 provides:

1. A method of transferring media data to a network coupled apparatus, comprising:

(a) maintaining a personal information space identified with a user including media data comprising a directory of digital media files, the personal information space being coupled to a server and a network;

(b) generating a first version of the media data in the personal information space;

(c) generating a digital media file, in response to an input from the user, comprising a second version of the media data in a same format as the first version in the personal information space, the second version including an update not included in the first version;

(d) obtaining difference information comprising differences between the first version of the media data and the second version of the media data; and

(e) transferring a digital media file over the network containing the difference information from the personal information space to the network coupled apparatus in response to a sync request made from a web browser at the network-coupled apparatus by the user.

'466 Patent at 13:46–14:2. There are nine dependent claims that add narrowing limitations such as (1) "including the step, prior to step (a), of receiving information into the personal information space," Claim 2; (2) using an automotive computer as the network coupled apparatus, Claim 4; and (3) including a directory of digital media files to comprise the media date, Claim 6. See id. at 14:3–34.

Additionally, Claim 11 is independent and describes:

11. A system for transferring digital media between a plurality of network coupled devices, comprising:

a personal information store identified with a user containing digital media comprising a directory of digital media files readable by an application program; and a processing device, a server and a network coupled with the personal information store, the processing device including:

an application data store holding a version of the digital media in the personal information store, and a device engine to: (a) generate a digital media file, in response to an input from the user, comprising a second version of the media data in a same format as the first version in the personal information store, the second version including an update not included in the first version; (b) obtain difference information comprising differences between the first version of the media data and the second version of the media data; and (c) transfer a digital media file over the network containing the difference information from the personal information space to the network coupled apparatus in response to a sync request made from a web browser at the network-coupled apparatus by the user.

Id. at 14:35–57. Claim 11 has three dependent claims. See id. at 14:58–64.

C. '696 Patent

The '696 Patent is titled "Management Server for Synchronization System." '696 Patent. The specification describes an invention that "includes a system and method for transferring data between two devices which require information to be shared between them." Id. at 4:25–27. Independent claim 1 provides:

A controller for a synchronization system, comprising:

an authentication module identifying a user coupled to the synchronization system; and

a synchronization manager communicating with at least one interactive agent to control data migration between a first network coupled device and a second network device.

Id. at 45:11–18. Seven claims depend from Claim 1. See id. at 45:19–48.

III. LEGAL STANDARD

Section 101 of the Patent Act describes the scope of patentable subject matter as encompassing "any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement...