Case Law Uniloc Usa, Inc. v. Microsoft Corp.

Uniloc Usa, Inc. v. Microsoft Corp.

Document Cited Authorities (68) Cited in (27) Related (3)

640 F.Supp.2d 150

UNILOC USA, INC. and Uniloc Singapore Private Limited, Plaintiffs, v. MICROSOFT CORPORATION, Defendant.

C.A. No. 03-440 S.

United States District Court, D. Rhode Island.

September 29, 2009.

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

COPYRIGHT MATERIAL OMITTED

Andria Coletta, Francis A. Connor, III, Taylor, Duane, Barton & Gilman, LLP, Providence, RI, Dean G. Bostock, Paul J. Cronin, Eugene A. Feher, Paul J. Hayes, Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, P.C., Boston, MA, for Plaintiffs.

Sheri L. Pizzi, Taylor, Duane, Barton & Gilman, LLP, Providence, RI, for Plaintiffs/Defendant.

Frank E. Scherkenbach, Kurt L. Glitzenstein, Fish & Richardson, P.C., Boston, MA, Isabella E. Fu, Microsoft Corporation Redmond, WA, Joseph V. Cavanagh, Jr., Mary C. Dunn, Blish & Cavanagh, LLP, Providence, RI, John W. Thornburgh, Fish & Richardson P.C., San Diego, CA, for Defendant.

DECISION AND ORDER

WILLIAM E. SMITH, District Judge.

For over six years Plaintiffs Uniloc USA, Inc. and Uniloc Singapore Private Limited (Uniloc) and Defendant Microsoft Corporation (Microsoft) have battled in a high stakes patent dispute in this Court. It has taken them to the Federal Circuit once, and finally to trial where Uniloc scored a massive jury verdict (purportedly the fifth largest patent verdict in history). Before the Court are numerous post-trial motions. After careful consideration of the arguments and the evidence, and mindful of the limitations placed upon the Court in ruling upon a post-trial motion for judgment as a matter of law (JMOL), the Court grants JMOL of non-infringement in Microsoft's favor. And while this holding on non-infringement arguably renders moot many, if not all, of the remaining issues raised by these motions, the Court believes it is both reasonable and potentially useful in the long run, given the breadth and complexity of the issues raised, to tackle a number of other important issues raised by the parties' motions, including willfulness and invalidity.

I. Background1

A. The '216 Patent

The patent-in-suit is U.S. Patent No. 5,490,216 ('216 patent) entitled "System for Software Registration," issued on February 6, 1996. The inventor is Mr. Ric Richardson, an Australian citizen who founded Uniloc and made the claimed invention in Australia in or around 1991 or 1992.2 In broad terms, the patent is directed to a method of reducing unlicensed use of software through casual copying. The technology is intended to deter unauthorized copying by a purchaser of a piece of software by locking the software to a user and allowing it "to run in a use mode on a platform if and only if an appropriate licensing procedure has been followed." '216 patent, col. 2, 11. 53-55. Claim 19, the sole independent claim at issue, reads as follows:

A remote registration station incorporating remote licensee unique ID generating means, said station forming part of a registration system for licensing execution of digital data in a use mode, said digital data executable on a platform, said system including local licensee unique ID generating means, said system further including mode switching means operable on said platform which permits use of said digital data in said use mode on said platform only if a licensee unique ID generated by said local licensee unique ID generating means has matched a licensee unique ID generated by said remote licensee unique ID generating means; and wherein said remote licensee unique ID generating means comprises software executed on a platform which includes the algorithm utilized by said local licensee unique ID generating means to produce said licensee unique ID.

The relevant terms (all of which are in play at this stage) were construed as follows: 

------------------------------------------------------------------
registration system               a system that allows digital
                                  data or software to
                                  run in a use mode on a
                                  platform if and only if
                                  an appropriate licensing
                                  procedure has been followed
------------------------------------------------------------------
------------------------------------------------------------------
licensee unique ID                a unique identifier associated
                                  with a licensee
------------------------------------------------------------------
------------------------------------------------------------------
use mode                          a mode that allows full
                                  use of the digital data
                                  or software in accordance
                                  with the license
------------------------------------------------------------------
------------------------------------------------------------------
local licensee unique ID          in functional terms, to
generating means                  generate a local licensee
                                  unique ID
                                  the structure to perform
                                  this function must be a
                                  summation algorithm or
                                  a summer or an equivalent
------------------------------------------------------------------
------------------------------------------------------------------
remote licensee unique            in functional terms, to
ID generating means               generate a remote licensee
                                  unique ID
                                  the structure to perform
                                  this function must be a
                                  summation algorithm or
                                  a summer or an equivalent
------------------------------------------------------------------
------------------------------------------------------------------
mode switching means              in functional terms, to
                                  permit the digital data
                                  or software to run in a
                                  use mode if the locally
                                  generated licensee
                                  unique ID matches with
                                  the remotely generated
                                  licensee unique ID
                                  the structure to perform
                                  this function must be
                                  program code which
                                  performs a comparison
                                  of two numbers or a
                                  comparator or an equivalent
                                  of such program
                                  code or comparator
------------------------------------------------------------------
------------------------------------------------------------------
has matched                       a comparison between
                                  the locally generated
                                  licensee unique ID and
                                  the remotely generated
                                  licensee unique ID
                                  shows that the two are
                                  the same
------------------------------------------------------------------
------------------------------------------------------------------
includes the algorithm            includes the identical
utilized by said local licensee   algorithm used by the
unique ID generating              local licensee unique ID
means to produce                  generating means to
said licensee unique ID           produce the licensee
                                  unique ID
------------------------------------------------------------------
------------------------------------------------------------------
algorithm                         a set of instructions that
                                  can be followed to carry
                                  out a particular task
------------------------------------------------------------------

B. Product Activation

The accused technology is Microsoft's patented Product Activation system (PA). This feature is contained in software products sold through retail distribution worldwide, including the accused Microsoft Office XP, Windows XP and Office 2003 products.3 According to Aiden Hughes, the writer of the original code for Microsoft in 1997 that evolved into PA, the goal of the feature was to limit the number of computers on which software was installed by enforcing the limits specified in the applicable product license agreement, or EULA (End User License Agreement). (Trial Ex. Z-2 ("This technology is geared towards reducing software piracy occurring today when end users pass along a copy of their floppies or CDs to a neighbor or install software products off of original CDs onto several machines.").)

There is no dispute as to how the PA system operates. Printed on each jewel box of a retail software product is a 25-character alphanumeric string called a Product Key (e.g., MQ9WT-3D8PY-6VF76-GMHVX-DCXFM). No two pieces of software have the same Product Key. A user types the Product Key into a computer to install a piece of software. If the Product Key is valid and the user agrees to the EULA that appears on his or her computer screen, the software is then installed but not yet activated.4 Also at this stage, a Product ID (PID) is created on the user's computer from a combination of data sources, including the typed-in Product Key, Microsoft Product Code (from "bits" on the software CD) and a random number derived from the user's computer. A hardware identifier (HWID) is also generated on the user's machine using components of that computer.

Activation of the software is only achieved when and if a user elects to...

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"...a “close factual call[ ],” the Court does not find that a finding of willfulness was precluded. See Uniloc USA, Inc. v. Microsoft Corp., 640 F.Supp.2d 150, 177 (D.R.I.2009). Accordingly, the renewed motion for judgment as a matter of law on the ground that no reasonable jury, properly instr..."
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"...(“'216 patent”), and, in the alternative, granting a new trial on infringement and willfulness. Uniloc USA, Inc. v. Microsoft Corp., 640 F.Supp.2d 150 (D.R.I. Sept.29, 2009) (“ Uniloc II ”). Uniloc also appeals the district court's alternative grant of a new trial on damages. Microsoft cros..."
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"...at least, the “reckless disregard” of the possibility of infringing another's known patent. Id.; see Uniloc USA, Inc. v. Microsoft Corp., 640 F.Supp.2d 150, 176–77 (D.R.I.2009)aff'd in part, rev'd in part, 632 F.3d 1292 (Fed.Cir.2011) (characterizing willful infringement as “objectively rec..."
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"...("'216 patent"), and, in the alternative, granting a new trial on infringement and willfulness. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150 (D.R.I. Sept. 29, 2009) ("Uniloc II"). Uniloc also appeals the district court's alternative grant of a new trial on damages. Microsoft cro..."
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"...as a matter of law. Compare i4i Ltd. P'ship v. Microsoft Corp., 670 F.Supp.2d 568, 581 (E.D.Tex.2009)with Uniloc USA Inc. v. Microsoft Corp., 640 F.Supp.2d 150, 177 n. 33 (D.R.I.2009) and Henrob Ltd. v. Bollhoff Systemtechnick GmbH & Co., 2009 WL 4042627, at *3, 2009 U.S. Dist. LEXIS 107966..."

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A New Frontier in Patent Bar Ethics?
"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."
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An Interview with Li-Hsien (Lily) Rin-Laures
"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."
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"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."
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"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."

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Document | JD Supra United States – 2010
Opinion Letters, Representation Issues, and the Impact of the Seagate and Knorr-Bremse Decisions.
"...of the on-sale and public use bars, to reach a conclusion.”86 Honeywell cited Black & Decker with approval.87 84. 640 F. Supp. 2d 150, 176–77 (D.R.I. 2009) (finding no willful infringement as a matter of law in “[a] case that at one point included claims of direct and indirect infringem..."
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"...BMC Resources. Endnotes System claims are also subject to the defense of divided infringement. See, e.g., Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 162 (D.R.I. 2009). 498 F.3d 1373, 1377-79 (Fed. Cir. 2007). Id. at 1380 (citations omitted). Id. at 1379. Id. at 1381. Id. at 1..."
Document | JD Supra United States – 2010
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"...klock@mbhb.com 1. System claims are also subject to the defense of divided infringement. See, e.g., Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 162 (D.R.I. 2009). 2. 498 F.3d 1373, 1377-79 (Fed. Cir. 2007). 3. Id. at 1380 (citations omitted). 4. Id. at 1379. 5. Id. at 1381. 6...."

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4 books and journal articles
Document | Núm. 12-2, November 2019 – 2019
A New Frontier in Patent Bar Ethics?
"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."
Document | Núm. 12-2, November 2019 – 2019
An Interview with Li-Hsien (Lily) Rin-Laures
"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."
Document | Núm. 12-2, November 2019 – 2019
Patenting Nature
"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."
Document | Núm. 12-2, November 2019 – 2019
Pulling Back the Curtain on Complex Funding of Patent Assertion Entities
"...16. See Cybermedia, Inc. History , in 25 International Directory of Company Histories (1999). 17. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 173 (D.R.I. 2009). 18. Uniloc USA, Inc. v. Microsoft Corp., 632 F.3d 1292, 1315 (Fed. Cir. 2011). 19. See, e.g. , Joe Mullin, How One P..."

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  • Build stronger arguments with verified citations and CERT citator that tracks case history and precedential strength

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5 cases
Document | U.S. District Court — Eastern District of New York – 2011
Metso Minerals, Inc. v. Powerscreen Int'l Distribution Ltd.
"...a “close factual call[ ],” the Court does not find that a finding of willfulness was precluded. See Uniloc USA, Inc. v. Microsoft Corp., 640 F.Supp.2d 150, 177 (D.R.I.2009). Accordingly, the renewed motion for judgment as a matter of law on the ground that no reasonable jury, properly instr..."
Document | U.S. Court of Appeals — Federal Circuit – 2011
Uniloc U.S. Inc. v. Microsoft Corp..
"...(“'216 patent”), and, in the alternative, granting a new trial on infringement and willfulness. Uniloc USA, Inc. v. Microsoft Corp., 640 F.Supp.2d 150 (D.R.I. Sept.29, 2009) (“ Uniloc II ”). Uniloc also appeals the district court's alternative grant of a new trial on damages. Microsoft cros..."
Document | U.S. District Court — Eastern District of Virginia – 2014
Va. Innovation Scis., Inc. v. Samsung Elecs. Co.
"...at least, the “reckless disregard” of the possibility of infringing another's known patent. Id.; see Uniloc USA, Inc. v. Microsoft Corp., 640 F.Supp.2d 150, 176–77 (D.R.I.2009)aff'd in part, rev'd in part, 632 F.3d 1292 (Fed.Cir.2011) (characterizing willful infringement as “objectively rec..."
Document | U.S. Court of Appeals — Federal Circuit – 2011
Uniloc USA. Inc v. Microsoft Corp., 2010-1035
"...("'216 patent"), and, in the alternative, granting a new trial on infringement and willfulness. Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150 (D.R.I. Sept. 29, 2009) ("Uniloc II"). Uniloc also appeals the district court's alternative grant of a new trial on damages. Microsoft cro..."
Document | U.S. District Court — Western District of Pennsylvania – 2012
Univ. of Pittsburgh of the Commonwealth Sys. of Higher Educ. v. Varian Med. Sys., Inc.
"...as a matter of law. Compare i4i Ltd. P'ship v. Microsoft Corp., 670 F.Supp.2d 568, 581 (E.D.Tex.2009)with Uniloc USA Inc. v. Microsoft Corp., 640 F.Supp.2d 150, 177 n. 33 (D.R.I.2009) and Henrob Ltd. v. Bollhoff Systemtechnick GmbH & Co., 2009 WL 4042627, at *3, 2009 U.S. Dist. LEXIS 107966..."

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3 firm's commentaries
Document | JD Supra United States – 2010
Opinion Letters, Representation Issues, and the Impact of the Seagate and Knorr-Bremse Decisions.
"...of the on-sale and public use bars, to reach a conclusion.”86 Honeywell cited Black & Decker with approval.87 84. 640 F. Supp. 2d 150, 176–77 (D.R.I. 2009) (finding no willful infringement as a matter of law in “[a] case that at one point included claims of direct and indirect infringem..."
Document | JD Supra United States – 2010
MBHB Snippets: Review of Developments in Intellectual Property Law - Volume 8, Issue 4 - Fall 2010
"...BMC Resources. Endnotes System claims are also subject to the defense of divided infringement. See, e.g., Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 162 (D.R.I. 2009). 498 F.3d 1373, 1377-79 (Fed. Cir. 2007). Id. at 1380 (citations omitted). Id. at 1379. Id. at 1381. Id. at 1..."
Document | JD Supra United States – 2010
I Didn’t Do (All Of) It: The Joint Infringement Defense
"...klock@mbhb.com 1. System claims are also subject to the defense of divided infringement. See, e.g., Uniloc USA, Inc. v. Microsoft Corp., 640 F. Supp. 2d 150, 162 (D.R.I. 2009). 2. 498 F.3d 1373, 1377-79 (Fed. Cir. 2007). 3. Id. at 1380 (citations omitted). 4. Id. at 1379. 5. Id. at 1381. 6...."

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