Second Suit on Different Patents Not Precluded

Trading Techs. Int'l., Inc. v. BCG Partners, Inc., No. 10 C 715 (Consolidated), Slip Op. (N.D. Ill. Jul. 26, 2011) (Kendall, J.).

Judge Kendall denied the SunGuard defendants' (collectively "SunGuard") summary judgment motion arguing that plaintiff Trading Technologies ("TT") second suit against the same SunGuard products should be dismissed based upon claim splitting or claim preclusion. There is much more on this case and the related cases in the Blog's archives. The parties and the accused products were the same in both cases (filed in 2005 and 2010, respectively), but the patents were different. The Federal Circuit has held that suits based upon different patents involving similar inventions are not the same claims because each patent covered a separate invention. Kearns v. General Motors Corp., 94 F. 3d 1553, 1555 (Fed. Cir. 1996). Because the TT asserted different patents in the two suits, there was no preclusion. It did not matter that that TT could have arguably amended its first suit to add some or all of the later asserted patents.

The Court also deemed TT's Local Rule 56.1 additional statements of fact admitted because SunGuard failed to respond to them.

Patent Complaint Must Identify Accused Product at Least Generally

Trading Techs. Int'l., Inc. v. BCG Partners, Inc., No. 10 C 715, Slip Op. (N.D. Ill. May 5, 2011) (Kendall, J.).

Judge Kendall granted the FuturePath defendants' and denied the SunGuard defendants' Fed. R. Civ. P. 12(b)(6) motion to dismiss plaintiff Trading Technologies' ("TT") patent claims regarding trading software.

FuturePath:  The Court dismissed TT's direct infringement claims against FuturePath because TT did not accuse a specific FuturePath product or even category of product. TT's reference to unspecified "products" did not meet the Twomby or Iqbal standards, nor did it meet the Federal Circuit's requirements in McZel v. Spring Nextel Corp., 501 F. 3d 1354 (Fed. Cir. 2007). Identification of an accused product in TT's briefing and reference to FuturePath's website in TT's indirect infringement claims were insufficient.

TT did not allege that FuturePath had knowledge of TT's patents. Without an allegation of knowledge, TT's claims were deficient. The Court, therefore, dismissed all of TT's claims against FuturePath with leave to replead correcting the deficiencies.

SunGuard:  TT alleged that SunGuard had constructive knowledge of TT's patents, but not actual knowledge. Constructive knowledge was sufficient to maintain TT's claims, regardless of whether the Federal Circuit might later hold constructive knowledge insufficient.