Mortgage Grader, Inc. v. Costco Wholesale Corp.

ORDER GRANTING IN PART DEFENDANTS’ OMNIBUS MOTION FOR SUMMARY JUDGMENT

INTRODUCTION

Plaintiff Mortgage Grader, Inc. (“Plaintiff’) alleges that Defendants Costco *1059 Wholesale Corporation (“Costco”), First Choice Loan Services, Inc. (“First Choice”), and NYLX, Inc. (“NYLX”) (collectively, “Defendants”) have infringed U.S. Patent Nos. 7,680,728 (“ '728 Patent”) and 7,366,694 (“ '694 Patent”), both titled “Credit/Financing Process” (collectively, the “Asserted Patents” or “patents-in-suit”). (Second Am. Compl., Dkt. No. 33.) The Asserted Patents cover computer implemented systems and methods for online mortgage shopping.

On November 3, 2014, Defendants filed an omnibus motion for summary judgment of (1) invalidity of all asserted claims under 35 U.S.C. § 101 , (2) noninfringement of the '728 Patent, (3) noninfringement of the '694 Patent, (4) no induced infringement by Costco, and (5) no infringement of method claims due to divided infringement (“Motion”). (Dkt. No. 99.) On November 17, 2014, Plaintiff filed an opposition (“Opposition”). (Dkt. No. 124.) On November 24, 2014, Defendants filed a reply (“Reply”). (Dkt. No. 131.)

The Motion is GRANTED IN PART and DENIED IN PART.…