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Magistrate Judge Burke Grants Stay Pending Resolution of § 101 Motion to Dismiss

Magistrate Judge Burke recently granted several patent infringement defendants’ motions to stay pending resolution of their motions to dismiss for lack of patentable subject matter. Kaavo Inc. v. Amazon.com Inc., et al., C.A. No. 15-638-LPS-CJB, Memo. Or. at 5 (D. Del. Jan. 4, 2016).
Judge Burke explained that the case was somewhat similar to the Court’s decision to stay in other cases filed by the Plaintiff, referred to here as “Kaavo I.” In Kaavo I, a single patent was at issue and was subject to a motion to dismiss pursuant to § 101, leading Judge Burke to order a stay pending resolution of that motion to dismiss. In the instant case, a single patent—a child of the patent at issue in Kaavo I—was at issue and was subject to a motion to dismiss pursuant to § 101. Id. at 2-3.

Accordingly, Judge Burke found that “the record is little different than that in Kaavo I. If anything, the facts are slightly more favorable for Defendants than they were at the time of the Court’s decision in Kaavo I.” Id. Indeed, the Court “agrees with Defendants that there could be some inefficiency in ‘allow[ing] this case to proceed where a related case involving the parent patent and the same parties is stayed.’” Id. at 3. Accordingly, a stay would tend to simplify the issues in the case. Additionally, the early stage of the case—a case management conference had not yet been held—favored a stay. Id. at 3-4. Finally, the Plaintiff’s failure to demonstrate direct competition between the parties, and the Defendants’ declarations confirming that they were unaware of direct competition with Plaintiff, weighed against a finding of undue prejudice. Id. at 4-5.

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