COOPERATIVE ENTERTAINMENT, INC. v. KOLLECTIVE TECHNOLOGY, INC.
- Sep 28 2022 |
- Category: CAFC Updates
Cooperative sued Kollective for infringement of U.S. Patent No. 9,432,452 relating to systems and methods of structuring a peer-to-peer (P2P) dynamic network for distributing large files, namely videos and video games. When Kollective moved to dismiss arguing all claims are ineligible under 35 U.S.C. § 101, Cooperative filed an amended complaint. When Kollective refiled its motion to dismiss, the district court granted the motion. Cooperative appeals. The district court held at Alice step one the focus of the ’452 patent is the abstract idea of the preparation and transmission of content to peers through a computer network. At Alice step two, the district court characterized the ’452 patent as merely implementing the abstract idea of preparing and transmitting data over a computer network with generic computer components using conventional technology. However, the CAFC finds that Cooperative’s amended complaint plausibly alleges that the ’452 patent claims recite inventive concepts which the specification touts as specific improvements in the distribution of data compared to the prior art, and drawing all inferences in favor of Cooperative, this should have defeated Kollective’s motion to dismiss. The CAFC notes that Cooperative’s allegations in the complaint regarding the claims and the ’452 patent’s written description create a plausible factual issue regarding the inventiveness of the dynamic P2P configuration of claim 1. Because determining whether the claimed network is well understood, routine, or conventional is a question of fact that cannot be resolved on a motion to dismiss, and the CAFC finds that the district court erred in resolving this factual issue against Cooperative. Therefore, the CAFC reverses and remands.