Etison LLC v. Highlevel, Inc.
Panel: Lourie, Cunningham, Stark
The Federal Circuit affirmed the District of Delaware's dismissal under Rule 12(b)(6) of Etison LLC v. HighLevel, Inc., holding all claims of U.S. Patent Nos. 10,846,357 and 11,361,047 invalid under 35 U.S.C. § 101. The patents relate to website creation systems using templates to generate digital sales "funnels" that direct potential customers sequentially through webpages toward purchasing decisions. The district court treated claim 1 of the '357 patent as representative of all 40 claims across both patents and found them directed to the abstract idea of "filtering information based on user preferences to arrive at a final result," with no inventive concept at Alice step two.
The Federal Circuit held that the district court erred in treating claim 1 as representative of claims containing a "one or more triggers" limitation not present in claim 1, because the defendant failed to show the patentee's argument about this distinction was frivolous. The court clarified that once a challenger makes a prima facie showing of representativeness based on substantial similarity and linkage to the same abstract idea, the burden shifts to the patentee to present non-frivolous arguments as to why a representative claim cannot fairly dispose of all claims in the group. The error was harmless, however, because the district court effectively performed an Alice step two analysis on the claims with the triggers limitation and correctly concluded they added no inventive concept beyond conventional computer activities—a determination the Federal Circuit reviewed de novo and affirmed.