Realtime Data, LLC v. Carbonite, Inc. et al. (D. Mass. 17-cv-12499).

  • December 12, 2022

In 2017, Realtime Data, LLC sued Carbonite, Inc. and EVault, Inc., in the Eastern District of Texas, accusing the two of infringing four patents related to data compression.  Carbonite, a Massachusetts company, filed a motion to dismiss for failure to state a claim, and subsequently filed a motion to dismiss for improper venue upon the issuance of the TC Heartland decision concerning patent venue.  The Court denied the improper venue motion, noting that failure to make such a motion in the initial pleading constitutes a waiver.  Carbonite sought a writ of mandamus from the Federal Circuit, which denied it with instructions for Carbonite to first seek reconsideration from the district court, while noting that the Federal Circuit had recently deemed the TC Heartland decision to be a change in the governing law that excused a failure to file a venue motion in the first pleading.  After meeting and conferring on the issue, the parties agreed to transfer the case to the District of Massachusetts, and in December 2019 the case was assigned to Judge Young.

Judge Young adopted the recommendation of Texas Magistrate Judge Love and denied the motion to dismiss for failure to state a claim, finding that the claims were directed to patent-eligible subject matter.  Judge Young then transferred the case to Judge Talwani, who was already handling a related case between Realtime and Acronis. 

The case was consolidated with several other cases, and was stayed pending the resolution of still other cases in other jurisdictions for several years.  In October 2022, Judge Talwani granted Carbonite’s motion for entry of judgment.  She dismissed all claims related to a first patent as moot, given that those claims were deemed unpatentable by the Patent Trial and Appeal Board.  She further found Carbonite was entitled to entry of judgment on the claims of the remaining three patents based on collateral estoppel, as the patents had been deemed invalid under 35 U.S.C. § 101 by the District of Delaware.  The Delaware decision is presently under appeal, and Realtime has now filed a notice of appeal in this case as well.

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