Posts Tagged: "Judge Timothy Dyk"

Federal Circuit says Finjan virus-screening method not abstract, is patent eligible

In Finjan, Inc. v. Blue Coat Systems, Inc., the United States Court of Appeals for the Federal Circuit recently affirmed-in-part, reversed-in-part, and remanded the case to the district court. Notably, however, the Federal Circuit found no error in the district court’s subject matter eligibility determination, meaning the claims of Finjan’s ‘844 patent were patent eligible under 35 U.S.C. 101. Perhaps more remarkable, the claims of the ‘844 patent relate to virus-screening and were determined to be not abstract. Still more remarkable, the author of this Federal Circuit decision was Judge Dyk, who is not know as a zealous advocate for software patent eligibility.

Court Affirms Inherent Disclosure of Monsanto Soybean Claims

The Federal Circuit affirmed the rejection of several claims in a patent owned by Monsanto… Extrinsic evidence is permissible to interpret an allegedly anticipating references and to shed light on what it would have meant to a POSA. For purposes of inherent anticipation, recognition is not required within the prior art itself and need not antedate the patent at issue or have contemporaneous recognition by a POSA.

CAFC Says No Need for PTAB to Explicitly Construe Claim Terms

In HTC Corp. v. Cellular Communs. Equip., Appellants HTC Corporation and ZTE (USA) Inc. (“HTC”) appeal a final written decision by the Patent Trial and Appeal Board (“PTAB”) in an inter partes review. The Board instituted inter partes review of challenged claims in patents owned by Appellee Cellular Communications Equipment, LLC’s (“CEE”). The PTAB concluded that HTC failed to show that any of the challenged claims were unpatentable… There is no need for the PTAB to explicitly construe claim terms if the PTAB’s findings were sufficient to establish its understanding of the scope of the claimed subject matter.

Prohibition of Immoral or Scandalous Trademarks Held Unconstitutional

In re Brunetti, the Federal Circuit reversed a Patent Trial and Appeal Board (“Board”) decision affirming a refusal to register the mark “FUCT” because it comprised immoral or scandalous matter under 15 U.S.C. § 1052(a) (“Section 2(a)”). While the Board properly relied on substantial evidence to support its conclusion, the bar against registering immoral or scandalous marks was held to be an unconstitutional restriction on free speech.

CAFC Denies Enhanced Damages and Lost Profits, Competitor Proves Intervening Rights

In determining indefiniteness of a claim based on a testing method referenced in the patent, courts will evaluate whether the method is well known in the art and could reasonably be adapted for the claimed purpose. Intervening rights is an affirmative defense that may arise when claims are substantially changed after an intervening reexamination. For lost profits, a non-infringing alternative does not have to be a direct substitute; it can be an alternative in a hypothetical market absent the infringing product. Enhanced damages are discretionary and may be declined when willful infringement is not egregious, e.g. in light of its defenses and when patentee amended its claims in reexamination. Irreparable injury based on an erroneous lost profits finding will not stand. Further, a permanent injunction may be reconsidered by evaluating the sales in the actual market after the grant of an injunction.

PTAB Erred Finding Claims Nonobvious in IPR, Federal Circuit Reverses Without Remand

In Owens Corning v. Fast Felt Corp, Fast Felt sued Owens Corning for infringement, and Owens Corning filed a petition with the PTO seeking inter partes review of claims 1, 2, 4, 6, and 7. All of the challenged claims contain the term “roofing or building cover material.” Owens Corning argued that the claims are obvious over Lassiter, Hefele, and Eaton. The Board concluded that Owens Corning failed to show obviousness of any of the challenged claims… While the preferred embodiment of a claim might focus on a particular element of the claim, this is not enough to narrow the claim scope of the IPR. The Board must still give the claim its broadest reasonable interpretation in light of the specification. Where the record and a correct claim construction support only one result, reversal is warranted, without need for remand.

Burden of Persuasion for Patentability of Amended Claims in IPR Stays with Petitioner

After a panel of the Federal Circuit affirmed the Board’s decision, in Aqua Products v. Matal, Aqua requested an en banc rehearing. The USPTO Director Joseph Matal joined the appeal on behalf of the USPTO. At issue was whether the Board could place the burden of proof for patentability of amended claims on the patent owner in an IPR, and the Board’s underlying interpretation of the relevant statutes, specifically § 316(d) governing claim amendments and 35 U.S.C. § 316(e) allocating the burden of proof in an IPR… With respect to the burden of proof, the burden of persuasion for patentability of amended claims in an IPR proceeding is placed on the petitioner, not the patent owner. However, considering Judge Reyna’s concurrence, patent owners might still have the burden of production; depending on future cases.

CAFC upholds validity of Intellectual Ventures patents, reverses infringement findings

The Federal Circuit affirmed a district court decision upholding the validity of two patents belonging to Intellectual Ventures (“IV”), but reversed all findings of infringement regarding one patent and remanded for further proceedings regarding the other. IV sued Motorola for infringement of two patents. The ‘144 patent relates to a file transfer system between computer devices. The ‘462 patent relates to a portable computer formed by docking a smartphone into a “shell” with a larger display and keyboard. Motorola defended the suit by arguing non-infringement and the invalidity of the patents. At separate trials, a jury found Motorola infringed both patents and failed to prove them invalid. Motorola moved for judgment as a matter of law and the district court denied both motions.

Octane Standard for Attorney’s Fees Applies to Lanham Act and Patent Act Cases

In mag Fasteners, Inc. v. Fossil, Inc., Romag sued Fossil for patent and trademark infringement and a violation of the Connecticut Unfair Trade Practices Act (“CUTPA”) after one batch of Fossil’s handbags appeared to have counterfeit magnetic snaps. The jury found Fossil liable for patent and trademark infringement and for violating the CUTPA. The Federal Circuit affirmed the patent and trademark infringement verdicts. After that appeal, Romag sought attorney’s fees under the Patent Act, Lanham Act, and the CUTPA. The district court awarded attorney’s fees under all but the Lanham Act… The Supreme Court’s “objectively unreasonable” standard for attorney’s fees set forth in Octane applies to infringement cases under the Lanham Act and the Patent Act. In attorney’s fee disputes, courts must consider the totality of the circumstances, including the conduct of both parties.

CAFC denies Amgen discovery in biosimilar patent dispute

In a patent infringement case governed by the Biologics Price Competition and Innovation Act of 2009 (“BPCIA”), the Federal Circuit found that it lacked jurisdiction to compel discovery in the district court. The Court also found that Amgen failed to meet the requirements for mandamus relief. Amgen Inc. v. Hospira, Inc., (Fed. Cir. Aug. 10, 2017) (Before Dyk, Bryson, and Chen, J.) (Opinion for the court, Dyk, J.)… When filing a BPCIA paragraph (l)(3) list of patents that could potentially be infringed by a biosimilar, all patents that could reasonably be infringed, based on available knowledge without discovery, should be included on that list. In an interlocutory appeal, the Federal Circuit lacks “collateral order” jurisdiction to compel a district court to order discovery concerning non-listed patents, nor is mandamus warranted, because relief is available on appeal from a final judgment.

Where parties dispute proper scope of claims, Board must provide an explicit claim construction

The Board declined to provide a construction of “settling speed” and determined that the claims were not invalid as anticipated. Homeland appealed… When parties dispute the proper scope of claims, the Board must provide an explicit claim construction. The Court may construe the claims de novo. When comparing prior art evidence to properly construed claims, the Court may disregard expert testimony if it is plainly inconsistent with the written record, even if the testimony was unrebutted.

Federal Circuit invalidates another patent upheld at PTAB after IPR

The Federal Circuit issued a decision in Homeland Housewares, LLC v. Whirlpool Corporation, which ought to be completely unnerving to every owner of a U.S. patent grant. Hearing an appeal from a decision of the Patent Trial and Appeal Board (PTAB), the panel voted 2-1 in favor of Homeland Housewares and overturned a final written decision that had confirmed that challenged claims from a Whirlpool patent were valid. So even when a patent owner manages to escape the clutches of the PTAB and prevails no patent is ever truly safe any longer. A dissent was filed by Judge Newman, who chastised the majority for rewriting the claims of the patent in a way that more broadly stated the invention than did the patentee.

Generic Examples of Claimed Compounds Do Not Satisfy Enablement Requirement

On June 21, 2017, In Storer v. Clark, the Federal Circuit affirmed a Patent Trial and Appeal Board’s interference decision, which awarded priority to Clark’s pending application (filed May 30, 2003) over Storer’s issued patent. The Court found that Storer’s earlier provisional application (filed June 28, 2002) did not enable the subject matter of Storer’s interfering claims… To satisfy the enablement requirement, applicants should provide either explicit examples of claimed compounds or direction or guidance on how to synthesize the claimed compounds. Disclosing generic structures or general approaches to synthesis does not by itself satisfy the enablement requirement for specific compounds. A known precursor does not enable synthesis of a claimed compound if the application does not disclose the precursor or how to convert it into to a claimed compound.

PTAB Appellants Must Pay USPTO’s Attorneys’ Fees Regardless of Outcome of Appeal

In Nantkwest v. Matal, the Federal Circuit reversed the Eastern District of Virginia’s denial of the USPTO’s request for attorneys’ fees in connection with Nantkwest’s district court appeal of the PTAB rejection of its patent application. At issue was the correct interpretation of Section 145 of the Patent Act, namely the language “[a]ll of the expenses of the proceeding.” The Court held that Section 145 of the Patent Act requires the appellant to pay the USPTO’s attorneys’ fees, regardless of the outcome of the case.

CAFC Affirms Board’s Claim Construction and Holds Waterproofing Patent Invalid

Outdry appealed from a Board determination that its patent directed to waterproofing leather was invalid as obvious in an inter partes review (IPR) proceeding. Outdry challenged the Board’s claim construction and motivation to combine findings. The Federal Circuit affirmed.