Judge Andrews grants motion to dismiss claims of direct and indirect infringement

In a recent opinion, Judge Richard G. Andrews granted defendants’ motion to dismiss plaintiff’s claims of direct and indirect infringement.   M2M Solutions LLC v.  Telit Communication, C.A. No.  14-1103-RGA (D. Del. Aug. 5, 2015). As to plaintiff’s allegations of direct infringement, Judge Andrews observed that plaintiff’s decision to lump two defendants together in addressing its direct infringement claim cannot pass muster under Form 18, which also requires the identification of the accused product, process or method for each defendant. Indeed, Plaintiff’s complaint does not identify which particular defendant or defendants are responsible for which allegedly infringing products, process or method.” Id. at 6. Plaintiff argued that it was appropriate to group “Telit UK and Telit US under an umbrella term” based on “Telit UK’s public representations suggesting its actual control over Telit US.” Id. Judge Andrews found, however, that although “Plaintiff allege[d] the existence of a parent-subsidiary relationship” it failed to “present facts that demonstrate the parent’s effective control over the subsidiary.”  Id. at 7.

As to inducement, Judge Andrews found that plaintiff failed to sufficiently plead knowledge that the infringer’s acts constituted infringement.  Specifically, plaintiff asserted in its complaint that “[u]pon information and belief, Telit has performed the acts that constitute inducement of infringement with the knowledge or willful blindness that the acts induced thereby would constitute direct infringement by its customers.” Id. at 8. Judge Andrews reasoned that plaintiff’s assertion was based “on no factual allegations [and therefore] cannot pass muster under the plausibility standards.”  Id.  Further, Judge Andrews also found that plaintiff failed to sufficiently plead a “specific intent to infringe” because it “fus[ed] the two Defendants as one.” Id. at 9. Specifically, Judge Andrews explained that when articulating inducement allegations, plaintiff has to identify “which particular Defendant or Defendants are said to have disseminated the training or instructional materials at issue.” Id. at 10.  Judge Andrews also dismissed plaintiff’s contributory infringement claim because plaintiff “lump[ed]” the defendants together, and because “[t]he contributory infringement claim [was] factually too conclusory to state a claim.” Id. at 10 & n.5, 11.

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