GoTV Streaming v. Netflix
Panel: Prost, Clevenger, Taranto
The Federal Circuit reversed the district court's denial of summary judgment of invalidity and held all asserted claims of U.S. Patent Nos. 8,478,245, 8,989,715, and 8,103,865—owned by GoTV Streaming, LLC and asserted against Netflix, Inc.—patent-ineligible under 35 U.S.C. § 101. The court reversed the district court's step-one determination that the claims were not directed to an abstract idea and concluded that the claims failed at step two of the Alice framework because they lacked an inventive concept sufficient to transform the abstract idea into patent-eligible subject matter. The court also reversed the district court's indefiniteness holding as to the '865 patent claims, adopting GoTV's construction of "discrete low level rendering command," but that reversal did not save the claims from ineligibility. Because the ineligibility determination required entry of judgment for Netflix, the court expressly vacated—without definitively resolving—the district court's dismissal of GoTV's induced infringement claims and its admission of certain Netflix damages evidence, noting that GoTV had raised substantial arguments on both points.
The decision underscores the Federal Circuit's willingness to resolve § 101 issues on appeal even when the district court did not reach step two of Alice, provided the parties brief both steps and no genuine factual disputes require remand. The court emphasized that patent eligibility turns on "the language of the [c]laims themselves," and that unclaimed details in the specification cannot supply the inventive concept necessary to save claims directed to abstract ideas. GoTV's failure to advance separate eligibility arguments for different claims or patents proved fatal: by relying solely on representative claim 1 of the '865 patent, GoTV effectively conceded that all asserted claims stood or fell together. The court's express vacatur of the no-inducement and evidentiary rulings, despite the case-dispositive ineligibility holding, signals concern about leaving potentially erroneous rulings intact where substantial arguments support reversal.