Opinion ID: 183066
Heading Depth: 4
Heading Rank: 1

Heading: “Use” by Qwest’s Customers

Text: Centillion argues that, under the correct definition of “use” from NTP, Qwest’s customers put the claimed system into service. It argues that a system is put into service “when it is engaged to accomplish the purposes for which it is intended.” Appellant’s Reply Br. 32. It argues that Qwest’s customers use the system by subscribing, thus causing the back-end portions of the system to act and then downloading the reports. It argues that this is sufficient to put the entire system into service. Qwest argues that its customers do not “use” the system because they do not control the back-end processing. It argues that Qwest performs the back-end processing and provides the result—not the processing itself—to the customer. It argues that the customer then chooses autonomously whether to download this information and whether to install and use the Qwest software. It argues that under Cross Medical, a customer could only be liable for use of the system if Qwest actually provided the backend processing hardware and software to the customer so that the customer could control it. There are two different manners of operation of the Qwest system relevant to this appeal. First, there is an on-demand function where a customer “seeks particular and specified information” by creating a query that the Qwest back-end system processes and provides a result for download (on-demand operation). Appellee’s Br. 44. Second, during the normal functioning of the system after a user subscribes, Qwest’s back-end systems create periCENTILLION DATA v. QWEST COMM 10 odic summary reports (standard operation) which are available for the user to download. We hold that the on-demand operation is a “use” of the system as a matter of law. 1 The customer puts the system as a whole into service, i.e., controls the system and obtains benefit from it. The customer controls the system by creating a query and transmitting it to Qwest’s back-end. The customer controls the system on a one request/one response basis. This query causes the backend processing to act for its intended purpose to run a query and return a result. The user may then download the result and perform additional processing as required by the claim. If the user did not make the request, then the back-end processing would not be put into service. By causing the system as a whole to perform this processing and obtaining the benefit of the result, the customer has “used” the system under § 271(a). It makes no difference that the back-end processing is physically possessed by Qwest. The customer is a single “user” of the system and because there is a single user, there is no need for the vicarious liability analysis from BMC or Cross Medical. We also hold that the standard operation is a “use” as a matter of law. The standard operation allows users to subscribe to receive electronic billing information on a monthly basis. Once a user subscribes, Qwest’s back-end system generates monthly reports and makes them available to the customer by download or other means. Qwest also makes available to customers software to load on their PCs to further exploit these monthly reports. Unlike the on-demand operation, this is not a one request/one response scenario. By subscribing a single 1 As we discuss below, this does not dispose of the issue of infringement because the district court did not compare the accused system to the asserted claims. 11 CENTILLION DATA v. QWEST COMM time, the user causes the back-end processing to perform its function on a monthly basis. Like the on-demand operation, the back-end processing in normal operation is performed in response to a customer demand. The difference though is that a single customer demand (the act of subscribing to the service) causes the back-end processing monthly. But in both modes of operation, it is the customer initiated demand for the service which causes the back-end system to generate the requisite reports. This is “use” because, but for the customer’s actions, the entire system would never have been put into service. This is sufficient control over the system under NTP, and the customer clearly benefits from this function. Because the district court concluded as a matter of law that no single party could be liable for “use” of the patented invention, it did not compare the accused system to the claim limitations. We note that, although the customers “use” the system as a matter of law, this does not settle the issue of infringement. We will not decide, as Qwest requests, whether the accused products satisfy the “as specified by the user” limitations for the first time on appeal. Likewise, we decline to determine for the first time on appeal whether any individual customer has actually installed the Qwest software, 2 downloaded records, and analyzed them as required by the claims. 3 Because the issue has not been raised on appeal here, we 2 Centillion concedes that in order to infringe, the customer must install Qwest’s client software. Appellant’s Br. 31. 3 For purposes of its indirect infringement case, Qwest also asks us to determine that the accused products have substantial noninfringing uses. The district court did not address this issue in its opinion and we decline to perform this factual inquiry for the first time on appeal. CENTILLION DATA v. QWEST COMM 12 make no comment on whether Qwest may have induced infringement by a customer.