The U.S. Court of Appeals for the Federal Circuit (CAFC) today issued a precedential ruling finding that it is ultimately the petitioner’s burden to clearly present arguments in an inter partes review (IPR), and that Netflix failed to do so in challenging the relevant claims of DivX’s streaming technology patents. Judge Dyk dissented from the majority.
Digital video company, DivX, scored a win in a Brazilian court after a judge ratified its expert report and enforced a previously-granted preliminary injunction against Netflix. DivX sued Netflix for infringement of its Patent No. PI 0506163-6, which is directed to a “deblocking” tool implemented in High Efficiency Video Coding (HEVC)-encoded files. According to DivX, Netflix’s streaming in HEVC infringes the patent.
The United States Court of Appeals for the Federal Circuit (CAFC) ruled on March 1 that the Patent Trial and Appeal Board (PTAB) erred in its analysis of an inter partes review (IPR) filed by streaming giants Netflix and Hulu. The CAFC vacated and remanded the case, ordering the PTAB to once again review the patent dispute filed against DivX. “Because the Board legally erred in its obviousness analysis, and the error cannot be regarded as harmless, we vacate and remand,” wrote the CAFC judges in their ruling. Netflix and Hulu petitioned the PTAB to carry out an IPR in February 2020 of DivX’s U.S. Patent No. 10,225,588. The petition claimed the ‘588 patent was unpatentable due to obviousness.
The U.S. Court of Appeals for the Federal Circuit (CAFC) today issued a precedential decision affirming a California district court’s award of attorneys’ fees in part to Netflix, Inc. for Realtime Adaptive Streaming LLC’s “improper” litigation conduct. The CAFC said that Realtime’s use of forum-shopping to blatantly avoid an adverse ruling amounted to “gamesmanship” that “constitutes a willful action for an improper purpose, tantamount to bad faith, and therefore [is] within the bounds of activities sanctionable under a court’s inherent power in view of the Ninth Circuit’s standard.” The opinion was authored by Judge Chen and Judge Reyna concurred-in-part and dissented-in-part.
Last week, U.S. District Judge James Donato of the Northern District of California issued a judgment on the pleadings invalidating claims from one of 12 patents asserted by semiconductor and software developer Broadcom against streaming video provider Netflix. The ruling is the latest setback for Broadcom in its enforcement campaign against Netflix’s use of patented server technologies to support streaming media services that are cutting into Broadcom’s market for semiconductors developed for use in set-top boxes.