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Ioengine, LLC v. Paypal Holdings, Inc.

United States District Court for the District of Delaware

January 25, 2019, Decided; January 25, 2019, Filed

Civil Action No. 18-452-WCB; Civil Action No. 18-826-WCB



Before the Court are two motions to dismiss. The first, in case number 18-452, is the motion by defendant PayPal Holdings, Inc. ("PayPal"), to dismiss IOENGINE's claims of joint infringement, indirect infringement, and willful infringement on the ground that the complaint fails to allege facts sufficient to plead plausible claims on each of those theories of liability. No. 1:18-cv-452, Dkt. No. 9. The second, in case number 18-826, is the motion by the Ingenico counterclaim defendants (Ingenico Inc., Ingenico Corp., and Ingenico Group S.A.) to dismiss the counterclaims by IOENGINE, LLC, against Ingenico Group S.A. for lack of jurisdiction and to dismiss the counterclaims against all of the counterclaim defendants on the ground that the counterclaims [*3]  lump the defendants together and fail to give fair notice to any of them. No. 1:18-cv-826, Dkt. No. 26.

In the PayPal case, the Court grants PayPal's motion to dismiss in part and denies it in part. With respect to IOENGINE's theory of joint infringement, the Court holds that the complaint sufficiently alleges facts that plausibly state a claim for relief on that theory. With respect to IOENGINE's theories of indirect infringement and willful infringement, the Court rules that the complaint pleads the requisite knowledge of the patents-in-suit from the date of the complaint. The Court rules that the complaint is otherwise sufficient to support IOENGINE's theories of induced infringement and willful infringement, but that the complaint does not sufficiently allege contributory infringement.

In the Ingenico case, the Court denies the motion to dismiss without prejudice, pending jurisdictional discovery. After jurisdictional discovery, the Ingenico counterclaim defendants will be permitted to renew their motion to dismiss Ingenico Group S.A. as a counterclaim-defendant in this action if they wish to do so, and the parties will be given an opportunity to file supplemental briefs on the jurisdictional [*4]  issues. A hearing on the jurisdictional issue will be held if the Court determines that it is necessary. As to the motion of the Ingenico counterclaim defendants to dismiss the counterclaims on the ground that it is unclear from the counterclaims what role each defendant is accused of playing in the alleged acts of infringement, the Court denies the motion.

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2019 U.S. Dist. LEXIS 12195 *; 2019 WL 330515

IOENGINE, LLC, Plaintiff, v. PAYPAL HOLDINGS, INC., Defendant.INGENICO INC., Plaintiff, v. IOENGINE, LLC, Defendant.IOENGINE, LLC, Counterclaim Plaintiff, v. INGENICO INC., INGENICO CORP., and INGENICO GROUP, S.A., Counterclaim Defendants.

Subsequent History: Motion denied by, Request denied by IOENGINE, LLC v. PayPal Holdings, Inc., 2019 U.S. Dist. LEXIS 81827 (D. Del., May 15, 2019)

Stay granted by IOENGINE, LLC v. PayPal Holdings, Inc., 2019 U.S. Dist. LEXIS 141545 (D. Del., Aug. 21, 2019)

Motion denied by IOENGINE, LLC v. Paypal Holdings, Inc., 2020 U.S. Dist. LEXIS 12741 (D. Del., Jan. 27, 2020)

Prior History: IOENGINE, LLC v. Interactive Media Corp., 2016 U.S. Dist. LEXIS 39764 (D. Del., Mar. 21, 2016)


infringement, allegations, subsidiaries, patents, products, contributory, counterclaims, motion to dismiss, induced, non-infringing, willfulness, discovery, customers, indirect, steps, post-suit, recite, cases, alleged infringement, fails, third party, instructions, pleaded, argues, notice, personam jurisdiction, joint enterprise, specific intent, contends, personal jurisdiction

Business & Corporate Compliance, Patent Law, Infringement Actions, Infringing Acts, Civil Procedure, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Infringing Acts, Indirect Infringement, Pleadings, Complaints, Requirements for Complaint, Patent Law, Remedies, Damages, Increased Damages, Jurisdiction & Review, Personal Jurisdiction & Venue