Versata Software, Inc. v. Callidus Software, Inc., No. 14-1468 (Fed. Cir. 2014)
Annotate this CaseVersata sued Callidus, alleging infringement the 326, 304, and 024 patents, concerning management and tracking of sales information by a financial services company. Seven months after briefing on motions to dismiss or to transfer, the district court denied both. Callidus answered and counterclaimed, asserting its own patents against Versata and stated that it would seek post-grant review of Versata’s patents under the Transitional Program for Covered Business Method (CBM) Patents under the America Invents Act, 125 Stat. 284, 329–31. The district court declined to consider a stay until the Patent Trial and Appeal Board (PTAB) decided to institute CBM review. PTAB instituted CBM review for each patent, finding each challenged claim more likely than not directed to unpatentable subject matter. Callidus renewed its motion. The court granted a stay as to the 326 patent but denied it as to the other patents. The Federal Circuit reversed, finding that the court “clearly erred” in evaluating the burden-of-litigation factor exclusively through a backward-looking lens. The correct test focuses prospectively on the impact of the stay on the litigation, not on the past actions of the parties. Framed appropriately, it is clear that a stay will reduce the future burdens of litigation.
The court issued a subsequent related opinion or order on February 27, 2015.
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