Scale Video Coding LLC v. Cisco Systems, Inc.

United States District Court, Eastern District of Texas, Sherman Division · April 2, 2025 · No. 4:23-cv-00803

Summary

This memorandum opinion and order addresses Defendant Cisco Systems, Inc.'s motion to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(c). The court evaluates whether the asserted patent claims are directed to patent-ineligible abstract ideas under the Alice/Mayo framework. Applying Federal Circuit precedent, the court concludes that the claims recite a specific improvement to computer network functionality and congestion control rather than an abstract idea. Consequently, the court denies Cisco's motion to dismiss.

Court
United States District Court, Eastern District of Texas, Sherman Division
Jurisdiction
Eastern District of Texas
Decision date
April 2, 2025
Docket number
4:23-cv-00803
Procedural posture
Defendant's motion to dismiss under Rule 12(c) for failure to state a claim.
Standard of review
Plaintiff must show plausibility under the Iqbal/Twombly standard for a complaint to survive a motion to dismiss.
Precedential value
nonprecedential
Disposition
other

Topics

patent eligibilitymotions to dismisscivil procedure

Practice areas

intellectual propertycivil procedure

Questions Presented

  1. Whether the asserted claims of the ’372 Patent are directed to patent‑ineligible subject matter under 35 U.S.C. §101.

Holdings

  1. The court held that the claims are directed to a specific improvement in computer‑network functioning and therefore are patent‑eligible; the motion to dismiss is denied.

Key quotations

Accordingly, the claims are not directed to an abstract idea, and Cisco has failed to prove by clear and convincing evidence that the claims are invalid under Section 101. (at 13)

Factual background

SVC holds patents covering a congestion‑control system that uses an overlay network and packet‑prioritization layering to improve multicasting of video streams. Cisco is accused of infringing claims 1, 6, and 11 of that patent by delivering layered video data over the Internet.

Procedural history

Scale Video Coding LLC sued Cisco for infringement of U.S. Patent No. 11,019,372. Cisco filed a Rule 12(c) motion to dismiss alleging lack of patent‑eligible subject matter. The motion was fully briefed and heard, and the court denied the motion.

Court Document

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