Judge considers tossing Databricks patent suit under California anti-SLAPP law

SAN FRANCISCO (CN) — Databricks, a data and artificial intelligence company, told a San Francisco judge Tuesday that claims brought against Acacia Research Group, a patent licensing and enforcement company, over patent royalties should not be dismissed under the state’s anti-SLAPP law because the lawsuit falls under the public interest exception.Databricks attorney Matthew Warren argued the company’s lawsuit would benefit all users of software licensed under the Apache License, a perpetual, nonexclusive and royalty-free license created by the Apache Software Foundation, despite the company also seeking damages.“The parties agreed the public interest exception depends on the allegations of the complaint. Databricks’ complaint claims this action will benefit all users of software licensed by the Apache License. It is our understanding that, if it is written to benefit that group, we fall within the public interest exception,” he said.The lawsuit stems from open-source software Yahoo contributed to that was originally licensed under the Apache License, Databricks says in the complaint. The company also claims the license prevents companies from seeking patent royalties against implementers for their use of the software licensed under the Apache License.The specific patent at issue, U.S. Patent No. 8,190,610, also known as the ’610 patent, was filed by Yahoo in 2006 and issued by the Patent Office in 2012. However, when Yahoo split, some of its patents were purchased by R2 Solutions, a subsidiary of Acacia Research Group, a company that acquires and operates businesses, as well as enforces patents.In its complaint filed in San Francisco Superior Court in March, Databricks claims Acacia did not honor Yahoo’s license of its patents covering the open-source projects and used R2 to collect patent royalties from companies, including Databricks, for implementing the open-source software.The defendants asked the court to toss the complaint under anti-SLAPP law, which allows defendants to seek quick dismissal of a lawsuit they believe is only aimed at stifling their First Amendment right to free speech or petition in connection with a public issue.They argue every claim Databricks brings arises from a lawsuit R2 filed against Databricks for use of the ’610 patent in U.S. District Court for the Eastern District of Texas, which, they say, is protected activity under state anti-SLAPP law.San Francisco County Superior Court Judge Harold Kahn seemed to agree with the defense, telling Databricks its claims “strike me as right down the middle of protected activity.” Kahn added the public interest exception to the state’s anti-SLAPP law was critical to Databricks’ argument, warning: “If you don’t win on that, you’re in trouble.”Under California law, lawsuits are immune from the state anti-SLAPP law if they are “brought solely in the public interest or on behalf of the general public.”The standard applies when the plaintiff does not “seek any relief greater than or different from the relief sought for the general public,” the case would, if successful, enforce an important right affecting the public interest and confer a significant benefit and proves private enforcement is necessary and a disproportionate financial burden on the plaintiff.Warren argued Databricks seeking damages does not preclude the lawsuit from being brought in the public interest because the company is also asking the court for an injunction barring the defendants from “continuing to seek patent royalties for software licensed under the Apache License.”He added that the lawsuit, if successful, would benefit the general public due to the “ubiquity” of open-source software, as the injunction sought would apply to all implementers and all users of software licensed under the Apache License.“It would vindicate the effectiveness of the Apache License and protect software under the Apache License,” he said, describing the Apache License as a “key cog” in the machine of how the internet is run.In contrast, Stradling Yocca attorney Douglas Hahn, representing Acacia, claimed the suit does not benefit the general public because Databricks brought it on behalf of the company and asks for personal, individualized damages.He further argued the injunction Databricks seeks would only prohibit patent holders from seeking royalties, not prevent all patent enforcement.“It doesn’t really remedy the threat they’ve raised. The threat they’ve raised is problems to the open-source community as a whole,” he said.As to the necessity of private enforcement, Hahn argued the Texas lawsuit will address the same core questions the San Francisco case raises.“A ruling in the Texas case would be binding on the parties there and potentially restrict future actions. But that court will decide it and decide it way before this court,” he said.However, in rebuttal, Warren asserted the relief Databricks seeks in the San Francisco case cannot be achieved in the Texas case.Kahn did not indicate when he would rule but told the parties he would work on the case on July 28 after receiving the transcripts from the hearing.“It seems pretty clear to me that the facts are undisputed. The issue is the application of those facts to the law. I need to read the law,” he said.Representatives for the parties declined to comment.Subscribe to our free newslettersOur weekly newsletter Closing Arguments offers the latest about ongoing trials, major litigation and rulings in courthouses around the U.S. and the world, while the monthly Under the Lights dishes the legal dirt from Hollywood, sports, Big Tech and the arts.Additional Reads