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Capital Security Systems, Inc. v. NCR Corp.

United States District Court, N.D. Georgia, Atlanta Division

June 30, 2017

CAPITAL SECURITY SYSTEMS, INC., Plaintiff,
v.
NCR CORPORATION, SUNTRUST BANKS, INC., and SUNTRUST BANK, Defendants.

          OPINION AND ORDER

          WILLIAM S. DUFFEY, JR. UNITED STATES DISTRICT JUDGE

         This matter is before the Court on Defendant NCR Corporation's (“NCR”) Motion for Summary Judgment of Invalidity[162]. Also before the Court are the parties' Motions for Leave to File Matters Under Seal [161], [180].

         I. BACKGROUND

         On May 19, 2014, Plaintiff Capital Security Systems, Inc. (“Capsec”) filed this action for patent infringement against Defendants NCR, SunTrust Banks, Inc., and SunTrust Bank (collectively, “Defendants”), asserting infringement of United States Patent Nos. 5, 897, 625 (“the '625 Patent”); 7, 653, 600 (“the '600 Patent”); 7, 991, 696 (“the '696 Patent”); and 8, 121, 948 (“the '948 Patent”) (collectively, “Patents-in-Suit”). (See Compl. [1]). On May 29, 2014, Defendants filed their counterclaims [8], seeking a declaratory judgment that the Patents-in-Suit are invalid, unenforceable, or not infringed.

         On June 18, 2015, recognizing that the claims against NCR are the predicate for the claims against the banks that use the ATMs with the technology at issue in this case, the Court stayed Capsec's claims against SunTrust Banks, Inc. and SunTrust Bank “pending the resolution of the dispute between Plaintiff and NCR.” ([100]). For the same reasons, the Court also stayed the actions in Capital Security Systems, Inc. v. Capital One, N.A., 1:14-cv-3370-WSD (the “3370 case”), and Capital Security Systems, Inc. v. ABNB Federal Credit Union, 1:14-cv-3371-WSD (the “3371 case”). The Court determined that allowing a resolution of Capsec's “infringement claims against NCR avoids potentially inconsistent results and otherwise promotes litigation efficiency, ” in this and other parallel litigation based on the Patents-in-Suit. (Id.).

         On May 24, 2016, the Court held a Markman hearing, and, on June 28, 2016, issued its Opinion and Order construing certain disputed terms in the Patents-in-Suit. ([133] (the “Claim Construction Order”)).

         On October 24, 2016, Capsec filed its Motion for Entry of Judgment of Non-Infringement in favor of NCR to appeal the Court's Claim Construction Order. ([143]). Capsec also sought to dismiss NCR's invalidity and unenforceability counterclaims. On December 9, 2016, the Court issued its order on Capsec's motion. The Court entered judgment of non-infringement of the Patents-in-Suit and denied Capsec's request to dismiss NCR's counterclaims.

         On January 19, 2017, NCR filed its Motion for Summary Judgment of Invalidity. NCR argues Capsec's patents are invalid as obvious because they are merely collections of the ATM features already known to NCR and described in the prior art. NCR relies on the following combinations of prior art references:

• Claim 15 of the '625 Patent
1. AT&T 5675 in view of Hain and DiMauro
2. Sharman in view of Crabtree, Hain, and DiMauro
• Claims 1-2, 6-8 of the '600 Patent; Claims 1, 2, 6, 9 of the '696 Patent; Claims 1-3, 7-9 of the '948 Patent
1. AT&T 5675 in view of Johnston, DiMauro, Anisimov, and Franklin
2. AT&T 5675 in view of Campbell, DiMauro, Anisimov, and Franklin
3. Sharman in view of Johnston, DiMauro, Anisimov, and Franklin
4. Sharman in view of Campbell, DiMauro, Anisimov, or Franklin

         NCR also argues that the following terms are invalid as indefinite: the term “apparent signature” in Claims 1 and 2 of the '948 Patent, Claim 1 of the '600 Patent, and Claim 1 of the '696 Patent, and the term “transactional operator” in Claim 15 of the '625 Patent.

         On March 10, 2017, Capsec filed its Motion to Strike [181], seeking to strike certain invalidity arguments and factual information relied upon in NCR's summary judgment motion, and the Elwin Declaration NCR relied upon in its motion. In its May 31, 2017, Order [191] (“May 31st Order”), the Court granted in part Capsec's Motion to Strike. The Court struck (1) the LeClerc, Campbell, Chuang, Moore, Döhle, and Graef references in NCR's Supplemental Stanners Report, Stanners Reply Report, Stanners Declaration, and Motion for Summary Judgment of Invalidity; (2) the invalidity arguments based on obviousness combinations first disclosed in the Stanners Reply Report from that report, the Stanners Declaration, and the Motion for Summary Judgment of Invalidity; and (3) the portions of the Elwin Declaration, and the Motion for Summary Judgment of Invalidity sections relying upon it, in which Elwin states that certain documents were “publicly available, ” “published, ” or “created” on certain dates, that the AT&T 5675 ATM was on sale or in public use in the United States by certain dates, that certain documents and products reflect the functionality and operation of the 5675 ATM by certain dates, that certain products provide the interface through which applications communicate with the Document Processing Module, and that certain documents show sales or offers for sale. ([162.27] ¶¶ 5-7, 9-20, 24, 26). The combinations of prior art references the Court struck included the following:

• Claim 15 of the '625 Patent
1. Sharman in view of Hain, Crabtree, and DiMauro
2. AT&T 5675 in view of Hain and DiMauro
• Claims 1-2, 7, and 8 of the '600 Patent, and claims 1-3, 8, and 9 of the '948 Patent
1. AT&T 5675 in view of Johnston and DiMauro
2. AT&T 5675 in view of Campbell and ...

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