Posts in Federal Circuit

Wading into Contract Law Again, CAFC Says Forum Selection Clause Also Precludes IPRs

The U.S. Court of Appeals for the Federal Circuit (CAFC) earlier today issued a precedential decision holding that the U.S. District Court for the District of Delaware improperly denied Nippon Shinyaku Co., Ltd.’s motion for a preliminary injunction in the court’s misreading of the plain language of a contract’s forum selection clause. The CAFC consequently reversed the decision and remanded for entry of a preliminary injunction (PI) enjoining Sarepta Therapeutics, Inc. from proceeding with its seven inter partes review petitions (IPRs) against Nippon Shinyaku and requiring that Sarepta withdraw the petitions.

CAFC Rejects Apple’s Claim Construction and Partially Affirms Infringement of Wi-LAN Patents, But Orders New Damages Trial

On February 4, the United States Court of Appeals for the Federal Circuit (CAFC) affirmed in part, reversed in part, vacated in part, and remanded a patent infringement decision of the U.S. District Court for the Southern District of California that had awarded WiLAN, Inc. $85.23 million in damages from Apple Inc. Wi-LAN is the owner of two patents related to allocating bandwidth in a wireless communication system, U.S. Patent Nos. 8,457,145 (the ‘145 patent) and 8,537,757 (the ‘757 patent). In May 2014, Apple sued Wi-LAN in the Southern District of California seeking a declaratory judgment of non-infringement and invalidity for all claims of the ‘757 and ‘145 patents. Wi-LAN counterclaimed, asserting that certain Apple devices, including certain iPhone 5 and 6 models infringed claim 1 of the ‘757 patent and claims 9, 26, and 27 of the ‘145 patent based on their use of its Long-Term Evolution (LTE) wireless communication standard. Wi-LAN argued that the technology in the two patents at issue enabled Voice over Loong-Term Evolution (VoLTE), which enables voice call service over a 4G LTE network.

Mandamus and the Battle Over Venue in Modern America

The United States Court of Appeals for the Federal Circuit (CAFC) has become enamored with the power of the writ of mandamus to correct what they do not like, and they do not like patent owners filing patent infringement actions in Texas. Or, perhaps it is more accurate to say that while they might not mind patent owners filing patent infringement actions in Texas, they expect federal district court judges in Texas to order those patent owners off to other courthouses outside of Texas upon the request of defendants.

CAFC Orders New Trial on Damages, Clarifies IPR Estoppel Rule in Appeal of Caltech’s $1.1 Billion Win Against Apple and Broadcom

On February 4, in a mixed precedential decision, the U.S. Court of Appeals for the Federal Circuit (CAFC) affirmed, vacated, and remanded in part a decision by the U.S. District Court for the Central District of California in a patent infringement suit filed by the California Institute of Technology (Caltech) against Broadcom Limited, Broadcom Corporation, and Avago Technologies (collectively “Broadcom) and Apple Inc. The suit was related to Caltech’s U.S. Patent 7,116,710 (‘710 patent), U.S. Patent 7,421,032 (‘032 patent), and U.S. Patent 7,916,781 (‘781 patent). The CAFC affirmed the district court’s denial of judgment as a matter of law (JMOL) on infringement because the jury’s verdict of infringement of the declared claims of the ‘710 and ‘032 patents was supported by substantial evidence and the district court’s construction of the claim limitation “repeat” was not erroneous.

CAFC Affirms Preliminary Injunction Against Myco Industries, Finding No Clear Error or Abuse of Discretion

On February 3, the United States Court of Appeals for the Federal Circuit (CAFC) affirmed a preliminary injunction granted by the U.S. District Court for the Eastern District of Michigan, holding that the lower court did not abuse its discretion or clearly err in its factual findings. Myco Industries, Inc. started marketing, the AB Max, a device for treating blepharitis in February 2019. The following month, BlephEx, LLC filed a patent application, which issued as U.S. Patent No. 10,449,087 (the ‘087 patent) on October 22, 2019. The ‘087 patent discloses “an instrument for removing debris from an eye during the treatment of an ocular disorder.” The day the ‘087 patent issued, BlephEx sued Myco in the Eastern District of Michigan, alleging that Myco’s AB Max infringed claim 16 of the ‘087 patent. Shortly thereafter, the district court enjoined “Myco and those acting on its behalf from, inter alia, selling, distributing, or offering to sell or distribute the AB Max Product.” Myco appealed.

CAFC Says District Court Committed ‘Clear Error’ in Enforcing Disputed Settlement Agreement

On February 3, the U.S. Court of Appeals for the Federal Circuit (CAFC) reversed and remanded a decision by the U.S. District Court for the Eastern District of Texas granting a motion to enforce PlasmaCAM’s (Plasmacam) version of an agreement with Fourhills Designs, LLC, and Thomas and Martha Caudle (collectively “CNC”). On appeal, the CAFC held that CNC’s version of the agreement more accurately reflected the understanding between the two parties regarding a settlement over Plasmacam’s claim that CNC infringed U.S. Patent No. 7,071,441 (‘441 patent), for which Plasmacam has an exclusive license.

CAFC Denies Registration for Stylized .SUCKS Mark

The U.S. Court of Appeals for the Federal Circuit ruled earlier today that a stylized form of the trademark for the .SUCKS domain name failed to create a “separate commercial impression” warranting registration by the U.S. Patent and Trademark Office (USPTO). Vox Populi Registry Ltd. is the domain registry operator for the controversial .SUCKS generic top-level domain (gTLD). The USPTO’s Trademark Trial and Appeal Board (TTAB) in October 2020 affirmed an examiner’s decision to refuse the stylized mark, as well as the standard character word mark for .SUCKS.

Two Pharma and Biotech Cases to Watch in 2022

As we enter the second month of 2022, the old saying, “If at first you don’t succeed, try, try again” and the famous line, “I’m not dead,” from Monty Python and the Holy Grail, come to mind to describe two issues we’ll be watching closely this year relating to litigation involving small and large molecule therapies. In the first instance, Amgen recently petitioned the Supreme Court to review the Federal Circuit’s affirmance invalidating several patent claims based on the lack of enablement for genus claims. This case comes on the heels of the Supreme Court’s denial of cert. in Idenix Pharms. LLC v. Gilead Sci. Inc., 941 F.3d 1149 (Fed. Cir. 2019) on similar issues. Amgen now hopes for a better result.

CAFC Vacates PTAB Ruling for Apple, Citing Board Error on Applicant Admitted Prior Art

The U.S. Court of Appeals for the Federal Circuit (CAFC) today vacated and remanded two decisions of the Patent Trial and Appeal Board (PTAB) on related inter partes reviews (IPRs) brought by Apple against Qualcomm, explaining that the Board’s determination that “prior art consisting of patents or printed publications” includes applicant admitted prior art (AAPA) was incorrect. The CAFC nonetheless remanded the case for the PTAB to decide “whether Apple’s petition nonetheless raises its § 103 challenge on the basis of prior art consisting of patents or printed publications.” Apple petitioned the PTAB to review the claims of U.S. Patent No. 8,063,674. In two separate decisions, the PTAB found several claims unpatentable under Section 103, basing its finding on a ground raised by Apple that relied in part on AAPA and a prior art patent. Apple also challenged the claims as unpatentable under Section 103 based on two prior patents and one publication, but the Board said that Apple had not proven unpatentability on this ground.

CAFC Rules District Court Erred on Legal Standard for Claim Indefiniteness

On January 27, the United States Court of Appeals for the Federal Circuit (CAFC) reversed the decision of the United States District Court for the Northern District of California to invalidate claims in two related patents, holding that the district court used the incorrect legal standard for indefiniteness. Nature Simulation Systems, Inc. (NSS) is the owner of United States Patents No. 10,120,961 (the ‘961 patent) and No. 10,109,105 (the ‘105 patent). Both patents relate to computer-implemented methods for building three-dimensional objects employing a computation method called “Boolean operation.” NSS brought an infringement action against Autodesk, Inc. in district court alleging infringement of claims 1 and 8 of the ‘961 patent and claim 1 of the ‘105 patent.

Federal Circuit Finds ‘Lifter Member’ Invokes Means-Plus-Function

On January 21, 2022, the U.S. Court of Appeals for the Federal Circuit held that the term “lifter member” invokes means plus function (MPF) claiming. The case is Kyocera Senco Indus. Tools Inc. v. ITC, Appeal Nos. 2020-1046 and 2020-2050 (Fed. Cir. 2022). The Federal Circuit panel for the case consisted of Chief Judge Moore along with Judges Dyk and Cunningham. Chief Judge Moore wrote the opinion for the panel. To summarize, in 2017, Kyocera filed a complaint with the International Trade Commission (ITC). Kyocera alleged that a company named Koki violated 19 U.S.C. § 1337 (Section 337) by importing gas spring nailer products that infringe, or were made using methods that infringe, certain claims in five Kyocera patents. Those patents generally relate to linear fastener driving tools, like portable tools that drive staples, nails, or other linearly-driven fasteners.

Use of Research Tools May Expose Companies to Patent Infringement Claims

The safe harbor provision set forth in 35 U.S.C. § 271(e)(1) immunizes many types of activities in pursuit of a Food and Drug Administration (FDA) submission from patent infringement claims. Research tools are frequently used in pursuit of an FDA submission, such as drug development, testing and screening. But research tools themselves generally are not subject to FDA or other regulatory approval. Depending on the circumstances, using research tools to submit data to the FDA may not be protected by the safe harbor provision and thus may expose companies to patent infringement claims.

SCOTUS Denials of Apple and Mylan Petitions Unlikely to End Challenges to PTAB NHK/Fintiv Framework

Earlier this week, the U.S. Supreme Court issued an order list indicating it had denied petitions for writs of certiorari in two cases challenging the NHK/Fintiv framework developed by the Patent Trial and Appeal Board (PTAB) for discretionary denials of validity trials under the America Invents Act (AIA). In denying petitions from consumer tech giant Apple and generic pharmaceutical firm Mylan Laboratories, SCOTUS has ended the latest challenge to the PTAB’s NHK/Fintiv rule, which has raised the ire of many entities who have found the PTAB to be a very valuable backdoor towards patent invalidation outside of U.S. district court. Both petitions essentially asked the Court whether the PTAB’s application of its NHK/Fintiv rule passes muster under precepts of U.S. administrative or due process law.

CAFC Grants Mandamus on Netflix Motion to Transfer Out of Gilstrap’s Court

The U.S. Court of Appeals for the Federal Circuit (CAFC) today granted Netflix, Inc.’s Petition for Writ of Mandamus to transfer a case brought against it by CA Inc. and Avago Technologies from Judge Rodney Gilstrap’s Eastern District of Texas court to the Northern District of California. The Order is the latest in a series of decisions from the CAFC censuring Texas courts for their refusal to transfer cases. In today’s ruling, the CAFC said the district court’s denial of transfer was a clear abuse of discretion and ordered the court to transfer the case, but did not address Netflix’s motion to dismiss the case for lack of venue.

CAFC Nixes District Court Claim Construction in Win for Firearms Patent Owner

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Friday ruled that a California district court erred in its claim construction relating to Evolusion Concepts, Inc.’s patent for a method of converting a semi-automatic rifle with a detachable magazine to one with a fixed magazine. The CAFC reversed the court’s grant of summary judgment of non-infringement for Juggernaut Tactical, Inc., reversed a denial of summary judgment of direct infringement, vacated the award of attorneys’ fees and remanded for further proceedings.