Allegation That Defendants Knew Of Patent At Time Of Service Of Complaint Sufficient To Establish Knowledge Requirement For Inducing Infringement

Potter Voice filed a patent infringement action against Apple, Google, HTC, Sony, LG, Motorola, ZTE, Kyocera, Sharp, Huawei, Pantech, Research in Motion, Microsoft and Nokia. Many of the defendants filed several motions to dismiss pursuant to Fed.R.Civ.P. 12(b)(6).

After addressing the pleading standard for determining a Rule 12(b)(6) motion and denying certain motions without prejudice based on severance and transfer issues, the district court turned to the allegations of induced infringement. As explained by the district court, "[e]ach of the defendants who filed a motion to dismiss argues that the allegations in the plaintiff's complaint are not sufficient to state a claim for inducement of infringement. To allege induced infringement, the plaintiff must allege direct infringement by another, knowing inducement of that infringement by the defendant, and the defendant's specific intent to encourage another's infringement. Toshiba Corp. v. Imation Corp., 681 F.3d 1358, 1363 (Fed. Cir. 2012). In addition, the plaintiff must allege that the defendant had knowledge of the plaintiff's patent. Global-Tech Appliances, Inc. v. SEB S.A., ___ U.S. ___, ___, 131 S. Ct. 2060, 2068-69 (2011). "The requirement that the alleged infringer knew or should have known his actions would induce actual infringement necessarily includes the requirement that he or she knew of the patent." DSU Med. Corp. v. JMS Co., Ltd., 471 F.3d 1293, 1304 (Fed. Cir. 2006)."

Potter Voice asserted in the complaint that the defendants had knowledge of the patent from the date of the service of the initial complaint. The defendants asserted that this allegation was insufficient to support a claim of induced infringement. The district court disagreed: "The defendants argue that knowledge first gained when a lawsuit is filed alleging induced infringement is not sufficient to support a claim of induced infringement. I disagree. An allege violation or infringement can continue beyond the date on which a civil action was filed. The allegations in the complaint properly are read to allege past and continuing infringement of the plaintiff's patent. For the purpose of allegedly induced infringements occurring after the date of the filing of the initial complaint, an allegation of knowledge gained with the filing of the initial complaint is sufficient. I disagree with the cases cited by the defendants which hold that knowledge of a patent gained solely from the filing of a complaint is not...