Barnes & Noble, Inc. v. LSI CORP.

ORDER DENYING DEFENDANTS’ MOTIONS TO DISMISS PLAINTIFFS’ COMPLAINT AND FIRST AMENDED COMPLAINT

(Docket Nos. 21, 45)

I. INTRODUCTION

Plaintiffs Barnes & Noble (“BN”) and Barnesandnoble.com (“BN.com”) have filed a declaratory judgment suit for non-infringement of eleven patents against Defendants Agere Systems, Inc. (“Agere”) and LSI Corp. (“LSI”). Defendants’ motions to dismiss Plaintiffs’ complaint (“Compl.”) and first amended complaint (“FAC”), Docket Nos. 21, 45, came on for hearing on October 7, 2011. Having considered the parties’ submissions and oral argument, the Court enters the following order.

II. FACTUAL & PROCEDURAL BACKGROUND

Plaintiffs BN and BN.com are manufacturers and sellers of the Nook e-reader. On June 29, 2010, BN received a letter from LSI informing them that LSI believed the Nook’s 3G, WiFi, and audio technology was infringing on some of LSI’s patents. Snow Deck, Docket No. 29, Exh. 1. Thereafter, the parties engaged in negotiations, including meetings and exchanged emails and documents, regarding LSI’s contention that the Nook infringed its patents. Opp. 1 at 3-8; Snow Deck Before their fourth meeting which both parties characterized (at the hearing) as…