Microsoft Corporation v. Geotag, Inc. , 817 F.3d 1305 ( 2016 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    MICROSOFT CORPORATION,
    TALEO CORPORATION,
    Plaintiffs
    GOOGLE INC.,
    Plaintiff-Appellee
    v.
    GEOTAG, INC.,
    Defendant-Appellant
    ______________________
    2015-1140
    ______________________
    Appeal from the United States District Court for the
    District of Delaware in No. 1:11-cv-00175-RGA, Judge
    Richard G. Andrews.
    ______________________
    Decided: April 1, 2016
    ______________________
    DARYL JOSEFFER, King & Spalding LLP, Washington,
    DC, argued for plaintiff-appellee. Also represented by
    PAUL ALESSIO MEZZINA; ADAM CONRAD, Charlotte, NC;
    ROBERT A. VAN NEST, ASIM BHANSALI, MATTHIAS A.
    KAMBER, Keker & Van Nest, LLP, San Francisco, CA.
    2                              MICROSOFT CORP.   v. GEOTAG, INC.
    JOEL WILSON REESE, Reese Gordon, Dallas, TX, ar-
    gued for defendant-appellant. Also represented by ADAM
    COOPER SANDERSON, KENDAL CATHERINE SIMPSON.
    ______________________
    Before LOURIE, WALLACH, and STOLL, Circuit Judges.
    WALLACH, Circuit Judge.
    Appellant GeoTag, Inc. (“GeoTag”) appeals the deci-
    sion of the United States District Court for the District of
    Delaware (“District Court”) finding that it had subject
    matter jurisdiction over (1) Appellee Google Inc.’s
    (“Google”) First Amended Complaint, which sought a
    declaratory judgment that U.S. Patent No. 5,930,474 (“the
    ’474 patent”) (J.A. 89–133) is invalid and not infringed by
    Google; and (2) GeoTag’s counterclaims, which alleged
    that Google infringed the ’474 patent. See Microsoft Corp.
    v. GeoTag, Inc., No. 11-175-RGA, 
    2014 WL 4312167
    (D.
    Del. Aug. 29, 2014). GeoTag also challenges the District
    Court’s decision granting summary judgment that Google
    did not infringe the ’474 patent. See Microsoft Corp. v.
    GeoTag, Inc., No. 11-175-RGA (D. Del. Apr. 10, 2014) (J.A.
    45–63). We affirm the District Court, although we find
    jurisdiction on different grounds.
    BACKGROUND
    I. The ’474 Patent
    The ’474 patent claims systems and methods of
    searching online information within a geographically and
    topically organized database. ’474 patent, Abstract. The
    specification describes a preferred embodiment that
    organizes websites and files within a directory-like struc-
    ture of folders categorized by geography and topic. 
    Id. col. 19
    ll. 52–57; see also 
    id. fig.10. In
    that embodiment, an
    Internet user may navigate to a folder labeled for a par-
    ticular geographic area and then conduct a topical search
    within that area, such as for “information about specific
    MICROSOFT CORP.   v. GEOTAG, INC.                           3
    goods and services in the geographic location.” 
    Id., Ab- stract.
    Independent claim 1 is illustrative and describes
    A system which associates on-line information
    with geographic areas, said system comprising:
    a computer network wherein a plurality of
    computers have access to said network; and
    an organizer executing in said computer net-
    work, wherein said organizer is configured to
    receive search requests from any one of said
    plurality of computers, said organizer com-
    prising:
    a database of information organized into a
    hierarchy of geographical areas wherein
    entries corresponding to each one of said
    hierarchy of geographical areas is further
    organized into topics; and
    a search engine in communication with
    said database, said search engine config-
    ured to search geographically and topical-
    ly, said search engine further configured
    to [s]elect one of said hierarchy of geo-
    graphical areas prior to selection of a topic
    so as to provide a geographical search area
    wherein within said hierarchy of geo-
    graphical areas at least one of said entries
    associated with a [broader] geographical
    area is dynamically replicated into at least
    o[n]e narrower geographical area, said
    search engine further configured to search
    said topics within said selected geograph-
    ical search area.
    4                              MICROSOFT CORP.   v. GEOTAG, INC.
    
    Id. col. 38
    ll. 36–58 (emphasis added to reflect disputed
    claim language). 1 Importantly, the “dynamically replicat-
    ed” limitation occurs after the system conducts a search
    within a limited geographic area. 
    Id. col. 38
    ll. 47–58.
    Through that limitation, the system includes search
    results associated with the narrow geographic area and
    then automatically adds results associated with a broader
    geographic area. 
    Id. col. 38
    ll. 55–58.
    II. Procedural History
    This appeal is an outgrowth of litigation that began in
    the United States District Court for the Eastern District
    of Texas in December 2010. In the Texas actions, “Ge-
    oTag sued more than 300 entities in ten separate com-
    plaints . . . based on store locator services used by the
    entities but, for some of the defendants, provided by
    Microsoft [Corporation (“Microsoft”)] and Google.” 2 Ge-
    oTag, 
    2014 WL 4312167
    , at *1 (citation omitted). GeoTag
    alleged in those actions that Google’s customers infringed
    the ’474 patent. See, e.g., J.A. 5000.
    “In response to GeoTag’s suits [in Texas against
    Google’s customers], Google . . . filed a declaratory judg-
    ment action against GeoTag” in the District Court. Ge-
    oTag, 
    2014 WL 4312167
    , at *1 (citation omitted). The
    Complaint sought a declaratory judgment that the ’474
    1    In April 2002, the United States Patent and
    Trademark Office issued a certificate of correction that
    corrected certain errors in claim 1 of the ’474 patent. J.A.
    133. Those corrections are reflected in brackets in the
    passage quoting claim 1.
    2    All claims by and against Microsoft have been
    severed and dismissed by stipulation and, thus, are not
    part of this appeal. J.A. 7790.
    MICROSOFT CORP.   v. GEOTAG, INC.                         5
    patent “is invalid and is not infringed by the use of
    [Google’s] web mapping services.” J.A. 5192.
    GeoTag answered Google’s Complaint and counter-
    claimed that Google AdWords—an online platform for
    displaying advertisements to users that conduct a search
    on Google’s website—directly infringes the ’474 patent.
    GeoTag, 
    2014 WL 4312167
    , at *1 (citation omitted); J.A.
    5577–87 (GeoTag’s Answer and Counterclaims).              In
    relevant part, AdWords runs a search against its “entire
    database” of ads, “yield[ing] all possible results” that are
    then “progressively filtered[] using factors such as geog-
    raphy.” J.A. 61; see J.A. 59–60 (providing a technical
    description of the AdWords system).
    Google moved for summary judgment that it did not
    infringe independent claims 1, 20, and 31 (“the asserted
    independent claims”) and dependent claims 3, 5, 9–15,
    18–19, 24–25, 32, and 36–38 of the ’474 patent, which the
    District Court granted. J.A. 57, 63. 3 The District Court
    held that AdWords does not practice the “dynamically
    replicated” limitation in claim 1 of the ’474 patent because
    it does not search a narrow geographic area and automat-
    ically add results from a broader area; instead, it was
    “uncontested” that AdWords conducts a broad search for
    “all responsive ads” and then “consecutively filters” the
    results. 4 J.A. 60–61; see J.A. 61 (“Therefore, Google’s
    3   The District Court issued its summary judgment
    decision under seal; however, GeoTag appended the
    decision to the public version of its opening brief and
    redacted only certain portions of the document, to which
    Google did not object. Appellant’s App. 14–32. According-
    ly, the non-redacted portions of the District Court’s sum-
    mary judgment decision are in the public domain.
    4  The District Court found that, because the assert-
    ed independent claims each require a form of dynamic
    6                              MICROSOFT CORP.   v. GEOTAG, INC.
    accused system does not trace up linkages in a hierarchy,
    or repeat the search in order to obtain results from a
    broader geographic area, as the claim limitation would
    require, and thus cannot meet the ‘dynamic replication’
    requirement of the ’474 [p]atent.”)
    Shortly before the District Court issued its summary
    judgment decision, this court addressed declaratory
    judgment relief in Microsoft Corp. v. DataTern, Inc., 
    755 F.3d 899
    (Fed. Cir. 2014). The District Court obtained
    additional briefing on DataTern from Google and GeoTag.
    J.A. 180–81 (oral order requesting additional briefing),
    7103–06 (Google), 7791–93 (GeoTag). It subsequently
    permitted Google to file its First Amended Complaint.
    J.A. 7634–35 (Order), 7636–48 (First Amended Com-
    plaint).
    GeoTag in turn filed a Motion to Dismiss the First
    Amended Complaint, asserting that the District Court
    lacked subject matter jurisdiction over the action.
    J.A. 7698–99. Specifically, GeoTag asserted that “[t]he
    minimal additional allegations” in the First Amended
    Complaint did not establish a substantial controversy
    between GeoTag and Google “of sufficient immediacy and
    reality to warrant the issuance of a declaratory judg-
    ment.” GeoTag, 
    2014 WL 4312167
    , at *1–2 (internal
    quotation marks and citation omitted). GeoTag also
    alleged its counterclaims against Google “were compulso-
    ry, [not permissive,] and therefore should be dismissed if
    replication, its “analysis applies equally to” each of those
    claims. J.A. 58 n.5. And because the District Court found
    that Google did not infringe any of the asserted independ-
    ent claims, it held that “the dependent claims cannot, by
    definition, be infringed.” J.A. 58 n.5 (citing Muniauction,
    Inc. v. Thomson Corp., 
    532 F.3d 1318
    , 1328 n.5 (Fed. Cir.
    2008)).
    MICROSOFT CORP.   v. GEOTAG, INC.                         7
    the declaratory judgment action lacks subject matter
    jurisdiction.” 5 
    Id. at *3.
        The District Court denied GeoTag’s Motion, finding
    that Google’s First Amended Complaint established a
    substantial controversy of sufficient immediacy to war-
    rant declaratory relief and, thus, that it possessed subject
    matter jurisdiction over the action. 
    Id. at *2–3.
    The
    District Court also held that, even if the First Amended
    Complaint did not establish sufficient grounds for declar-
    atory relief, “there would still be an independent basis for
    subject matter jurisdiction over the counterclaims.” 
    Id. at *3
    (footnote omitted). In reaching the conclusion that
    it possessed subject matter jurisdiction over GeoTag’s
    counterclaims, the District Court found the counterclaims
    permissive, rather than compulsory, under Federal Cir-
    cuit law and held that it retained subject matter jurisdic-
    tion over the counterclaims under Third Circuit law. 
    Id. at *4
    (“Whether I retain subject matter jurisdiction over a
    permissive counterclaim is a procedural issue to which
    Federal Circuit law does not apply.” (citing Woods v.
    DeAngelo Marine Exhaust, Inc., 
    692 F.3d 1272
    , 1279 (Fed.
    Cir. 2012)).
    Following the denial of its Motion to Dismiss Google’s
    First Amended Complaint, GeoTag stipulated to the entry
    of final judgment based on the District Court’s summary
    5    Federal Rule of Civil Procedure 13 defines a
    “compulsory counterclaim” as a “claim that—at the time
    of its service—the pleader has against an opposing party”
    that “arises out of the transaction or occurrence that is
    the subject matter of the opposing party’s claim” and
    “does not require adding another party over whom the
    court cannot acquire jurisdiction.”     Fed. R. Civ. P.
    13(a)(1)(A)–(B). A “permissive counterclaim” includes
    “any claim that is not compulsory.” Fed. R. Civ. P. 13(b).
    8                              MICROSOFT CORP.   v. GEOTAG, INC.
    judgment ruling. J.A. 32–34. GeoTag timely appealed
    the District Court’s final judgment. We have jurisdiction
    pursuant to 28 U.S.C. § 1295(a)(1) (2006). 6
    DISCUSSION
    I. Jurisdiction
    A. Choice of Law
    Before we address whether the District Court pos-
    sessed subject matter jurisdiction over GeoTag’s patent
    infringement counterclaims pursuant to 28 U.S.C.
    § 1338(a), we must first determine whether our law or
    that of the Third Circuit applies to the jurisdiction ques-
    tion. We find that the District Court erred in determining
    that Third Circuit law governs whether it had jurisdic-
    tion. See GeoTag, 
    2014 WL 4312167
    , at *4.
    A “procedural question not unique to patent law” is
    governed by the law of the regional circuit. See, e.g.,
    Madey v. Duke Univ., 
    307 F.3d 1351
    , 1358 (Fed. Cir.
    2002). The denial of a motion to dismiss normally raises a
    procedural question not unique to patent law. See, e.g.,
    Intel Corp. v. Commonwealth Sci. & Indus. Research Org.,
    
    455 F.3d 1364
    , 1369 (Fed. Cir. 2006). However, the
    motion to dismiss in this case requires the court to deter-
    mine whether this dispute arises under 28 U.S.C.
    6   In passing the Leahy-Smith America Invents Act
    (“AIA”), Congress amended 28 U.S.C. §§ 1295 and 1338.
    Pub. L. No. 112-29, § 19(a)–(b), 125 Stat. 284, 331–32
    (2011). However, because those amendments apply only
    to civil actions commenced on or after September 16,
    2011, the pre-AIA versions of 28 U.S.C. §§ 1295 and 1338
    apply to this appeal. See 
    id. § 19(e),
    125 Stat. at 333; see
    also J.A. 5192 (Google’s Complaint, which it filed on
    March 1, 2011).
    MICROSOFT CORP.   v. GEOTAG, INC.                           9
    § 1338(a), for both Google’s First Amended Complaint and
    GeoTag’s counterclaims assert jurisdiction on the basis of
    that statute. J.A. 7638 (Google’s First Amended Com-
    plaint), 5580 (GeoTag’s Counterclaims).
    Section 1338(a) states in relevant part that the Dis-
    trict Court “shall have original jurisdiction of any civil
    action arising under any Act of Congress relating to
    patents.” 28 U.S.C. § 1338(a). Whether a civil action
    arises under an act of Congress related to patents neces-
    sarily presents an issue that is unique to patent law. See
    Midwest Indus., Inc. v. Karavan Trailers, Inc., 
    175 F.3d 1356
    , 1359 (Fed. Cir. 1999) (en banc in relevant part) (“[A]
    procedural issue that is not itself a substantive patent law
    issue is nonetheless governed by Federal Circuit law if the
    issue pertains to patent law, . . . if it bears an essential
    relationship to matters committed to our exclusive control
    by statute, . . . or if it implicates the jurisprudential
    responsibilities of this court in a field within its exclusive
    jurisdiction.” (internal quotation marks, brackets, and
    citations omitted)); Mars Inc. v. Kabushiki-Kaisha Nippon
    Conlux, 
    24 F.3d 1368
    , 1371 (Fed. Cir. 1994) (“The issue
    whether the district court had jurisdiction [under § 1338]
    to hear Mars’ claim of Japanese patent infringement is of
    importance to the development of the patent law and is
    clearly a matter that falls within the exclusive subject
    matter responsibility of this court.” (internal quotation
    marks and citations omitted)); see also Helfgott & Karas,
    P.C. v. Dickinson, 
    209 F.3d 1328
    , 1333–34 (Fed. Cir. 2000)
    (explaining that whether an action arises under the scope
    § 1338 presents a question that is unique to patent law).
    Therefore, Federal Circuit law applies to the jurisdiction
    question in this appeal.
    10                              MICROSOFT CORP.   v. GEOTAG, INC.
    B. The District Court Retained Subject Matter Jurisdic-
    tion over GeoTag’s Patent Infringement Counterclaims
    Pursuant to 28 U.S.C. § 1338(a)
    “This court reviews a grant or denial of a motion to
    dismiss for lack of subject matter jurisdiction de novo.”
    Hewlett-Packard Co. v. Acceleron LLC, 
    587 F.3d 1358
    ,
    1361 (Fed. Cir. 2009) (citation omitted). We review factu-
    al findings underlying the jurisdiction determination for
    clear error. See SanDisk Corp. v. STMicroelecs., Inc., 
    480 F.3d 1372
    , 1377 (Fed. Cir. 2007).
    GeoTag principally argues that the District Court
    lacked subject matter jurisdiction over Google’s First
    Amended Complaint, which seeks a declaratory judgment
    that the ’474 patent is invalid and not infringed by
    Google. Appellant’s Br. 20–40. If the District Court lacks
    such jurisdiction, GeoTag continues, then it also lacks
    jurisdiction over GeoTag’s patent infringement counter-
    claims. 
    Id. at 21.
    GeoTag therefore argues that the
    District Court’s “judgment should be vacated.” 
    Id. at 20.
        With respect to its patent infringement counterclaims,
    GeoTag alleges that they “cannot serve as an independent
    basis for jurisdiction.” Appellant’s Br. 34. However,
    where a complaint and a counterclaim both raise issues
    arising under federal patent law, the district court may
    retain subject matter jurisdiction over the counterclaim
    pursuant to 28 U.S.C. § 1338(a), even if the district court
    later dismisses or finds a defect in the complaint that
    raises a question arising under federal patent law. 7 See
    7  We similarly possess subject matter jurisdiction
    pursuant to 28 U.S.C. § 1295(a)(1) over counterclaims
    accompanied by a complaint raising a question arising
    under federal patent law, for “the Federal Circuit’s juris-
    diction is fixed with reference to that of the district court,
    MICROSOFT CORP.   v. GEOTAG, INC.                      11
    Holmes 
    Group, 535 U.S. at 833
    –34 & n.4, superseded by
    statute, AIA § 19(a)–(b), 125 Stat. at 331–32. 8 Indeed,
    Holmes Group expressly distinguished cases like the
    instant appeal where both the complaint and counter-
    claims raise issues arising under federal patent law from
    those cases where only the counterclaims do so. 
    See 535 U.S. at 834
    n.4.
    The District Court retained subject matter jurisdic-
    tion over GeoTag’s patent infringement counterclaims
    pursuant to § 1338(a), such that we need not determine
    whether the District Court properly found that it had
    jurisdiction over Google’s First Amended Complaint.
    GeoTag’s counterclaims charged Google with infringe-
    ment of the ’474 patent and sought money damages for
    infringement.    J.A. 5583–86.   Accordingly, GeoTag’s
    counterclaim arose under an “Act of Congress relating to
    and turns on whether the action arises under federal
    patent law.” Holmes Grp., Inc. v. Vornado Air Circulation
    Sys., Inc., 
    535 U.S. 826
    , 829 (2002) (footnote omitted).
    8   GeoTag asserts that Holmes Group ushered in a
    change in law that precludes federal courts from looking
    to counterclaims to determine jurisdiction. Appellant’s
    Br. 36. GeoTag’s argument reflects an overly broad
    reading of Holmes Group. In that decision, the Supreme
    Court addressed whether counterclaims can provide
    jurisdiction over a complaint that does not raise a ques-
    tion arising under federal patent 
    law. 535 U.S. at 831
    –32.
    The Supreme Court applied the well-pleaded complaint
    rule to determine that they could not. 
    Id. Here, the
    well-
    pleaded complaint rule is satisfied because Google’s First
    Amended Complaint unquestionably raises issues arising
    under federal patent law—i.e., whether the ’474 patent is
    invalid and not infringed by Google. J.A. 7636–48.
    12                             MICROSOFT CORP.   v. GEOTAG, INC.
    patents,” 28 U.S.C. § 1338(a), and so the District Court
    retained jurisdiction over those claims, irrespective of any
    dismissal or defect in Google’s First Amended Complaint.
    Further, as GeoTag “actually charged [Google] with
    infringement of the patent, there is, necessarily, a case or
    controversy adequate to support jurisdiction” under
    Article III. See Cardinal Chem. Co. v. Morton Int’l, Inc.,
    
    508 U.S. 83
    , 96 (1993). Thus, even assuming that the
    First Amended Complaint was dismissed or deficient in
    some respect, the District Court retained subject matter
    jurisdiction over GeoTag’s patent infringement counter-
    claims.
    GeoTag’s other arguments do not require us to find
    that the District Court lacked subject matter jurisdiction.
    Specifically, GeoTag contends that the District Court’s
    decision would “effectively reverse DataTern” by allowing
    a counterclaim to “retroactively establish[] jurisdiction”
    over a declaratory judgment complaint.         Appellant’s
    Br. 35. DataTern is inapposite. In that decision, we held
    that conditional counterclaims could not establish juris-
    diction to address the claims in a declaratory judgment
    
    complaint. 755 F.3d at 906
    . We did not consider the
    distinct question of whether a district court could retain
    subject matter jurisdiction over a counterclaim if a com-
    plaint is dismissed or deemed defective. See generally 
    id. Finally, GeoTag
    challenges the District Court’s find-
    ing that its counterclaims are permissive. In particular,
    GeoTag alleges that, “[e]ven if a permissi[ve] counterclaim
    could create jurisdiction, it makes no difference because
    GeoTag’s counterclaims were compulsory.” Appellant’s
    Br. 38 (discussing GeoTag, 
    2014 WL 4312167
    , at *3–4);
    see 
    id. at 38–40
    (arguing that GeoTag’s counterclaims
    were compulsory). Because its counterclaims are compul-
    sory, GeoTag continues, the District Court could not
    retain subject matter jurisdiction over its patent in-
    fringement counterclaims. See 
    id. at 38.
    MICROSOFT CORP.   v. GEOTAG, INC.                        13
    The District Court and GeoTag offer a distinction
    based on counterclaim status that has no bearing on the
    question of jurisdiction under 28 U.S.C. § 1338. We have
    not addressed whether a counterclaim’s permissive or
    compulsory status is relevant to retaining jurisdiction
    under 28 U.S.C. § 1338. However, nothing in the text of
    section 1338 suggests that Congress conditioned its grant
    of jurisdiction to the District Court on the compulsory or
    permissive nature of the counterclaim.          28 U.S.C.
    § 1338(a). Nor would the distinction make sense in dis-
    putes before the District Court, which has “original juris-
    diction of any civil action,” § 1338(a) (emphasis added),
    regardless of the counterclaim status, Fed. R. Civ. P.
    13(a)–(b) (permitting parties to file compulsory and
    permissive counterclaims before the District Court).
    II. The District Court Properly Granted Summary Judg-
    ment
    The review of a grant of summary judgment involves
    an issue not unique to patent law, so we look to the law of
    the regional circuit in which the district court sits. Clas-
    sen Immunotherapies, Inc. v. Elan Pharm., Inc., 
    786 F.3d 892
    , 896 (Fed. Cir. 2015). In the Third Circuit, the court
    reviews the grant of summary judgment de novo. See Al–
    Sharif v. U.S. Citizenship & Immigration Servs., 
    734 F.3d 207
    , 210 n.2 (3d Cir. 2013) (en banc). The Third Circuit
    affirms the grant of summary judgment if “the movant
    shows that there is no genuine dispute as to any material
    fact and the movant is entitled to judgment as a matter of
    law.” Gonzalez v. Sec’y of Dep’t of Homeland Sec., 
    678 F.3d 254
    , 261 (3d Cir. 2012) (quoting Fed. R. Civ. P.
    56(a)). A genuine dispute over a material fact exists when
    “the evidence is such that a reasonable jury could return a
    verdict for the nonmoving party.” Anderson v. Liberty
    Lobby, Inc., 
    477 U.S. 242
    , 248 (1986); see Celotex Corp. v.
    Catrett, 
    477 U.S. 317
    , 323 (1986).
    14                               MICROSOFT CORP.   v. GEOTAG, INC.
    “[O]n appeal from a grant of summary judgment of
    noninfringement, we must determine whether . . . the
    district court correctly concluded that no reasonable jury
    could find [literal] infringement” or infringement under
    the doctrine of equivalents. Crown Packaging Tech., Inc.
    v. Rexam Beverage Can Co., 
    559 F.3d 1308
    , 1312 (Fed.
    Cir. 2009) (internal quotation marks and citation omit-
    ted). “To establish literal infringement, every limitation
    set forth in a claim must be found in an accused product,
    exactly,” Southwall Techs., Inc. v. Cardinal IG Co., 
    54 F.3d 1570
    , 1575 (Fed. Cir. 1995) (citation omitted),
    whereas under the doctrine of equivalents infringement
    occurs when “there is equivalence between the elements
    of the accused product . . . and the claimed elements of the
    patented invention,” Duramed Pharm., Inc. v. Paddock
    Labs., Inc., 
    644 F.3d 1376
    , 1380 (Fed. Cir. 2011) (internal
    quotation marks and citation omitted).
    A. The District Court Properly Held that Google’s Ad-
    Words Does Not Infringe the ’474 Patent
    GeoTag’s infringement allegations principally concern
    the “dynamically replicated” limitation in claim 1 of the
    ’474 patent. As previously mentioned, the “dynamically
    replicated” limitation occurs after the system conducts a
    search within a limited geographic area. ’474 patent col.
    38 ll. 36–58. Through that limitation, the system includes
    search results associated with the narrow geographic area
    and then automatically adds results associated with a
    broader geographic area. 
    Id. GeoTag alleges
    that the District Court erred in grant-
    ing summary judgment that Google did not infringe the
    ’474 patent. Specifically, GeoTag argues that (1) “the
    [D]istrict [C]ourt erroneously added new limitations,
    including that dynamic replication requires at least two
    searches and that one of those searches must be inherited
    into the other search,” Appellant’s Br. 60, and (2)
    “Google’s AdWords System practices dynamic replication,”
    MICROSOFT CORP.   v. GEOTAG, INC.                          15
    
    id. at 64.
    It also contends that the District Court “wrong-
    ly substituted itself for the jury by finding that ‘filtering’
    is not a search.” 
    Id. at 68.
         The District Court properly granted summary judg-
    ment. AdWords searches its “entire database” of ads
    without geographic limitation, identifies “all possible
    results” independent of geographic restrictions, and then
    “consecutively filters” those results by, among other
    things, eliminating results not associated with the target-
    ed geographic areas. J.A. 61. Because AdWords searches
    its entire database without regard to geography and then
    filters the results, rather than searches only within a
    targeted geographic area and automatically adds results
    from outside that area in the manner claimed by the ’474
    patent, AdWords does not practice “dynamic replication”
    under any construction of that limitation. J.A. 60–62.
    Indeed, AdWords’s performance of a broad search of all
    possible ads, without regard to geography, means that it
    has no need or opportunity to “dynamically replicat[e]”
    entries from a broader geographic area into a narrower
    one, as the ’474 patent claims. J.A. 58 n.5. Thus, no
    reasonable jury could find that AdWords infringes the
    ’474 patent.
    GeoTag’s arguments do not warrant a different con-
    clusion. GeoTag first contends that the District Court
    added a new limitation by requiring dynamic replication
    to be implemented through multiple searches. Appel-
    lant’s Br. 60–64. The District Court made no such hold-
    ing. The ’474 patent’s claims require both a search and a
    dynamic replication at the time of the search. ’474 patent
    col. 38 ll. 47–58. The District Court required some action
    in AdWords—apart from its broad search of its entire
    database of ads—that could qualify as dynamic replica-
    tion and found none. J.A. 61 (“Google’s accused system
    does not trace up linkages in a hierarchy, or repeat the
    search in order to obtain results from a broader geograph-
    ic area.” (emphasis added)).
    16                             MICROSOFT CORP.   v. GEOTAG, INC.
    Similarly, GeoTag argues that the District Court
    erred in assuming that filtering is not a search. Appel-
    lant’s Br. 68–72. That argument incorrectly assumes that
    the District Court required a second search. It did not.
    J.A. 60–62. Moreover, AdWords’s progressive filtering of
    the results of its search could not qualify as dynamic
    replication because that filtering eliminates ads from the
    search results, rather than adds to them as dynamic
    replication requires under the ’474 patent. J.A. 61.
    GeoTag next asserts that AdWords practices dynamic
    replication when it “filters adgroups by those not being
    geo-targeted, campaigns with adgroups associated with a
    broader geographical area . . . are dynamically replicat-
    ed . . . into the search area at the location of the user.”
    Appellant’s Br. 71; see also J.A. 61 (where GeoTag pre-
    sented the same argument to the District Court). The
    District Court properly rejected that argument as looking
    “only to the result of Google’s accused system and not its
    method.” J.A. 61. To infringe, AdWords would have to
    produce results by performing all of the claim limitations,
    including dynamically replicating ads associated with
    broader areas into the results for narrower areas. See
    Duramed 
    Pharm., 644 F.3d at 1380
    (discussing infringe-
    ment under the doctrine of equivalents); Southwall
    
    Techs., 54 F.3d at 1575
    (discussing literal infringement).
    Merely producing that same result in a different way does
    not suffice. See Augme Techs., Inc. v. Yahoo! Inc., 
    755 F.3d 1326
    , 1336 (Fed. Cir. 2014).
    Finally, GeoTag asserts that “there is nothing in the
    [’474] patent that would exclude the practice of dynamic
    replication through the use of a single search aimed at
    gathering entries associated with both narrower and
    broader geographical areas.” Appellant’s Br. 64. As an
    initial matter, the absence of evidence supporting a
    particular fact does not equate to affirmative evidence of a
    genuine dispute as to a material fact, such that a grant of
    summary judgment is improper. Cf. Zenith Elecs. Corp. v.
    MICROSOFT CORP.   v. GEOTAG, INC.                         17
    PDI Commc’n Sys., Inc., 
    522 F.3d 1348
    , 1363 (Fed. Cir.
    2008). In any event, GeoTag’s argument would read the
    dynamic replication limitation out of the ’474 patent’s
    claims and expand the scope of the claims to cover virtual-
    ly every instance of searching within a geographically
    organized database. We decline to adopt that construc-
    tion.
    B. GeoTag’s Claim Construction Arguments Are Inappo-
    site
    GeoTag alleges that the District Court erred in its
    construction of the asserted independent claims of the
    ’474 patent. Specifically, GeoTag alleges that, when the
    District Court construed “hierarchy of geographic areas”
    to mean “interrelated geographic areas such that there
    are parent geographic areas and child geographic areas,”
    it improperly imported a parent-child limitation into the
    asserted independent claims. Appellant’s Br. 43–53. It
    also argues that, when the District Court construed the
    “dynamically replicated” limitation to mean “automatical-
    ly inheriting at the time of a search,” it improperly im-
    ported a parent-child limitation into the asserted
    independent claims from the specification and should
    have substituted “copying or inheriting” for “inheriting.”
    
    Id. at 53–59.
        Even if correct, these arguments do not warrant re-
    versal of the District Court. As to “hierarchy of geograph-
    ic areas,” the District Court’s construction of that phrase
    played no role in its grant of summary judgment. In-
    stead, the District Court relied solely on certain uncon-
    tested aspects of dynamic replication in granting
    summary judgment. J.A. 58 (“The Court finds that the
    accused Google product does not infringe the ‘dynamic
    replication’ requirement of the patent claims and there-
    fore will focus the remainder of this section on this limita-
    tion alone.” (footnote omitted)). Because “the construction
    of this term did not form the basis for any judgment of
    18                              MICROSOFT CORP.   v. GEOTAG, INC.
    non-infringement by the [D]istrict [C]ourt,” it “is irrele-
    vant to the judgment that is on appeal” and will not be
    addressed. Advanced Cardiovascular Sys., Inc. v. Scimed
    Life Sys., Inc., 
    261 F.3d 1329
    , 1334 n.2 (Fed. Cir. 2001)
    (citation omitted).
    Similarly, the contested aspects of the District Court’s
    construction of the “dynamically replicated” limitation did
    not impact its grant of summary judgment. The District
    Court observed that
    for the independent claims to be infringed[,] the
    accused device must conduct “dynamic replica-
    tion.” This limitation requires that the accused
    system “automatically inherit[s] at the time of the
    search” from one search to another search. Each
    of the three independent claims requires that this
    inheritance occur from a larger search area to a
    smaller search area, though the smaller search
    area is not necessarily a subset of the larger
    search area. . . . However, as the Google system
    performs only a single search and then simply fil-
    ters the results, it is not possible for a second
    search to inherit from the first search, as there is
    no second search. Furthermore, as the AdWords
    System does not repeat the search, there can be
    no larger or smaller search area.
    J.A. 61–62. The District Court did not base its summary
    judgment grant on any parent-child limitation in the
    “dynamically replicated” limitation, nor did it find that
    how dynamic replication occurred (i.e., whether through
    inheritance or copying) answered the infringement ques-
    tion. Instead, it found that Google’s AdWords does not
    practice “dynamic replication” under any construction of
    that phrase. J.A. 60–61. Thus, because the disputed
    construction did not form the basis of the District Court’s
    summary judgment grant, we will not address it. See
    Advanced Cardiovascular 
    Sys., 261 F.3d at 1334
    n.2.
    MICROSOFT CORP.   v. GEOTAG, INC.                      19
    CONCLUSION
    We have considered GeoTag’s remaining arguments
    and find them unpersuasive. Accordingly, the decision of
    the United States District Court for the District of Dela-
    ware is
    AFFIRMED
    

Document Info

Docket Number: 2015-1140

Citation Numbers: 817 F.3d 1305, 118 U.S.P.Q. 2d (BNA) 1405, 2016 U.S. App. LEXIS 5966, 2016 WL 1274394

Judges: Lourie, Wallach, Stoll

Filed Date: 4/1/2016

Precedential Status: Precedential

Modified Date: 10/19/2024

Authorities (16)

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