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Furthermore, Open Text’s current assertion that Box is “only now poised” to sell to large customers is opposite of its statement in its pre-motion court filings, including its June Complaint, that Box was in “direct competition” warranting a preliminary injunction. Box counters that it was Box, not Open Text, who was the “first-mover” into the cloud market. Salem Communications Cla’ Salesforce.

Thereafter, the file is transferred from the remote system to the local system and executed by the operating system, Windows. This is not a sufficient showing that the harm flows from Box’s alleged infringement. Loss of First-Mover Advantage Open Text argues that, as a market leader in on-premises enterprise document management systems for the last decade, it has positioned itself to be a first-mover in the emerging off-premises, e.

The cited advantages of using the WWW include its independence from any particular platform, its commonality amongst businesses and organizations, and the fact that it would not require additional installation.

Declaration of Grant Shirk “Shirk Decl. If the applications were integrated into the workspace, as Open Text suggests, the purpose of a collaborative workspace whereby users have discretion to include or exclude functions relevant to the collaboration would be defeated.

Open Text explains its filing date of September 13, as timely because it was only after the release of Box’s Elite Plan in August of that Open Text discovered Box was directly competing with them. Box correctly points out Open Text failed to move at that time.


Appelt at 3, Ex. Digital Domain Media Group, Inc. After the user edits the file on the local system, the user must upload the file to the remote system with a new file name.


Com Incorporated BankUnited, Inc. Further, Appelt discloses that the BSCW System was originally conceived for information dissemination but envisions its use for dispersed working groups and organizations. Box operates exclusively in the cloud market and these companies constitute the majority of Box’s revenue. Thus, the Court need not reach the question of invalidity for the remaining claims.

Box presenattion the Elite Plan was not Box’s entry point into the market for customers with more than users, it was the Enterprise software. Public Interest The filial prong the court must consider is whether an injunction weighs in the public interest. Summary On filetyle, Open Text’s potential loss of goodwill and weak showing of inadequate presentagion at law fail to offset Open Text’s arguments establishing irreparable harm.

Citations are also linked in the body of the Featured Case. Once the alleged infringer has raised a substantial question regarding validity, the plaintiff must bring forth evidence to demonstrate that the alleged infringer’s invalidity defense “lacks substantial merit. Furthermore, Box argues that although Open Text claims that it only wants “narrow” and “prospective” relief, the injunction would ensure a substantial hardship on Box’s existing and prospective customer relationships because current and prospective “smaller” customers often need scalability to potentially accommodate more than users.

The Court disagrees with Box that the ultimate cause of the alleged harm is the “hypothetical mandatory permanent injunction,” not the alleged infringement. Appelt at 1, Ex.

See KSR, U. Examples of objects include documents, tables, graphics, or spreadsheets.

Analysis | #totalhash

Unfortunately for Open Text, the Court finds Box has raised a substantial question concerning the validity of the asserted patents. Homebanc Corp Home Bancorp Inc. As support, Open Text focuses on the excerpt that “users can assign different access rights to objects in a workspace” underneath the subheading “Access Rights. Nathaniel Polish “Polish Decl. F, Docket Item No. Accordingly, when the user selects “Save” from the file menu when “Remote Edit uses ShellExecute” is checked, the same file in the temporary directory is updated.


Open Text argues that, even though Box infringes claims of twelve asserted patents from two different patent families, its preliminary injunction is limited in scope. Declaration of Srinivasan Jaggannathan “Jaggannathan Decl.

Here, Open Text relies solely on Box’s sales charts after Box Edit was released but does not establish a direct nexus to the claimed limitations of the Synchronization Patents. The Court puts minimal credence in this circumstantial evidence without more because: On balance, Open Text’s potential loss of goodwill and weak showing of inadequate remedies at law fail to offset Open Text’s arguments establishing irreparable harm. Insurance Index Dow Jones U.

The allegedly infringing Box Edit software that Open Text argues is driving consumer demand was not even released until Octoberwell after these large increases in sales were reported. After the user edits the file, the user can choose “Save As” from the application that opened the file.

OPEN TEXT, S.A. v. BOX, I | 36 3d | |

Open Text appears to argue that because Appelt discloses that “members of a group” establish a shared workspace for coordinating and organizing their work, there can be no primary user to create the workspace.

This relief is necessary to prevent a loss of goodwill, Open Text argues, because if Open Text prevails at trial and obtains a permanent injunction against Box, that permanent injunction would likely require Box customers to remove the infringing software from their systems. Hr’g Jan 24,Pl. According to Box, the Elite Plan does not add any new functionality and instead provides Box customers with multiple enterprise ID’s commonly referred to as a “sandbox environment”Box Premier Support, and the ability to build custom internal applications on the Box platform.

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As a check on hindsight when applying the obviousness doctrine, the court looks to secondary considerations, or objective evidence such as copying, long felt but unsolved needs, failures of others, and commercial success.