Posts in District Courts

OpenAI Touts Briefs Backing Fair Use for AI Training

OpenAI published a post on Friday, titled “Fair use benefits everyone,” featuring excerpts from 20 filings that urge the U.S. District Court for the Southern District of New York (SDNY) to find that training large language models (LLMs) on copyrighted works is fair use. All but one are amicus briefs filed on or before the October 30 deadline in In re OpenAI, Inc. Copyright Infringement Litigation, the multidistrict litigation (MDL) that combines copyright lawsuits filed against OpenAI and Microsoft by The New York Times and other news publishers, Ziff Davis, and a group of authors, led by the Authors Guild, seeking to proceed as a class.

CAFC Reverses $9.1 Million Exceptionality Award, Holding Myriad Did Not Foreclose Patent Owner’s 101 Argument

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Friday reversed a district court’s award of attorneys’ fees to Elysium Health, Inc., holding that the lower court erred in assessing the substantive strength of ChromaDex’s Section 101 position. The appeal is rooted in the CAFC’s 2023 decision affirming the U.S. District Court for the District of Delaware’s grant of summary judgment for Elysium Health that the asserted claims of ChromaDex’s patent on an isolated form of vitamin B3 were directed to unpatentable subject matter under Section 101.

Federal Circuit Affirms Summary Judgment of Non-Infringement for Sonos in Google Patent Case

The U.S. Court of Appeals for the Federal Circuit (CAFC) issued a decision Friday in Google LLC v. Sonos, Inc., affirming a summary judgment of non-infringement entered by the U.S. District Court for the Northern District of California. The CAFC agreed with the district court’s constructions of the claim terms “utilized” and “private key,” each of which resolved one of Google’s two infringement theories.

Rights Holders of Elvis Compositions File Suit Against Anthropic Over AI Training and Lyrics Output

Several owners of Elvis Presley compositions filed a lawsuit against Anthropic on October 23 in the U.S. District Court for the Northern District of California, alleging that the company copied copyrighted lyrics without authorization to train its Claude large language models (LLMs) and that Claude generated infringing versions of the songs. The complaint asserted claims for direct copyright infringement, circumvention of technological protection measures under Section 1201 of Title 17, and removal or alteration of copyright management information (CMI) under Section 1202.

CAFC Affirms Ticketing Companies’ Motions to Dismiss Due to Pro Se Plaintiff’s Failure to Timely Oppose

The U.S. Court of Appeals for the Federal Circuit (CAFC) today affirmed the dismissal of a pro se patent owner’s claims against Live Nation, Ticketmaster, Major League Baseball and several law firms, concluding that the plaintiff waived her appellate arguments by failing to oppose the defendants’ dismissal motions in district court.

A Winning Combination: Recent Decisions Signal Strengthened Protectability of Compilation and Combination Trade Secrets

For companies in many industries, their most valuable trade secrets reside not in a single formula or document, but in years of accumulated data, coordinated processes, and combinations of technical and commercial information from various internal sources. Engineering know-how (including negative know-how), integrated software features, and customer databases can reflect years of investment and work effort and give competitors a shortcut if acquired improperly and used. Compilation and combination trade secret protection helps safeguard that collective value, even when some individual components are publicly known or unprotectable standing alone.

CAFC Denies Mandamus Petition Arguing District Court Should Not Have Reconsidered Initial Transfer Ruling

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Thursday denied two petitions for writ of mandamus arguing the U.S. District Court for the Eastern District of Virginia abused its discretion in transferring three related patent infringement suits to the Northern District of Illinois.

Must All Good Things Come to an End, Or Can You Obtain a Perpetual Design Patent?

Many intellectual property rights peacefully coexist because they apply to distinct aspects of a product. Issues can arise when intellectual property rights that expire and intellectual property rights that do not expire protect the same or overlapping features of the same product. One example is design patents and trade dress rights, both of which apply to non-functional ornamental features.

Judge Says Amazon Must Face Direct and Vicarious Copyright Claims Over Merch on Demand Products

An Ohio judge has ruled that Amazon must face trial on claims that its Merch on Demand service directly and vicariously infringed an apparel company’s copyrights, although the company’s contributory-infringement claim was dismissed. In an October 14 opinion, U.S. District Judge Douglas R. Cole of the Southern District of Ohio denied Amazon and plaintiff Weekend Warrior Clothing LLC—a T-shirt company founded by two brothers—summary judgment on most of their competing claims.

CAFC Affirms Win for Hulu Due to Ineligibility of Digital Ad Tech Claims

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Wednesday affirmed a decision for Hulu, LLC that dismissed a patent infringement suit brought by Piranha Media Distribution LLC because the asserted claims were found to be patent ineligible. The opinion was authored by Judge Cunningham. Piranha claimed that Hulu infringed its U.S. Patent Nos. 10,986,403 and 11,463,768, which relate to systems for integrating advertisements in digital media. The U.S. District Court for the Central District of California granted Hulu’s motion to dismiss the complaint, finding that the claims were not directed to patent eligible subject matter.

Copyright Office Solicits Comment on Music Streaming Fraud

Today, the U.S. Copyright Office published a notice of inquiry (NOI) in the Federal Register soliciting public comment on issues related to music piracy threatening billions in U.S. domestic revenues generated by digital streaming. The Office’s NOI responds to a request into the prevalence of streaming fraud across the music industry issued by U.S. Representative Scott Fitzgerald (R-WI), who also voiced concerns about generative artificial intelligence’s (AI) impact on the music industry.

Federal Circuit Grants Google Mandamus Petition, Directs Transfer of Patent Case to Northern District of California

The U.S. Court of Appeals for the Federal Circuit (CAFC) issued an order Tuesday in In re Google LLC, granting a petition for a writ of mandamus and directing the U.S. District Court for the Western District of Texas (WDTX) to transfer a patent infringement case to the U.S. District Court for the Northern District of California (NDCA). The CAFC concluded that “the decision to deny transfer here was patently erroneous.”

A Proposal for Addressing the AI Memory Supply Shortage

In economic theory, corporate value creation can be attributed to many factors and conflicting preferences. Prioritizing different factors produces a set of different outcomes and the outcome that is seemingly most efficient becomes the accepted norm. Sometimes however, corporate actors rely on accepted business practices which, while taken in the pursuit of the most optimal outcome, facilitate market distortions. Hit by a compute-driven demand shock and faced with resource scarcity, Samsung, SK Hynix, and Micron have opted to allocate production capacity in a way that has exacerbated an industry- wide memory card supply shortage. But to fully understand why the price of hardware components and consumer electronic devices has been steadily surging, we must first start with Nvidia.

CAFC Says Trade Secret Owner Forfeited Tortious Interference, Damages Arguments

The U.S. Court of Appeals for the Federal Circuit (CAFC) issued a decision today in Truinject Corp. v. Galderma S.A., affirming a U.S. District Court for the District of Delaware judgment for Galderma S.A. on tortious interference, breach of contract, and trade secret misappropriation claims. The CAFC held that Truinject Corporation forfeited its arguments on appeal about the dismissal of its tortious interference claim and the summary judgment of no damages.

CAFC Says District Court Failed to Provide Sufficient Reasoning for Denying Sanctions, Attorney’s Fees

The U.S. Court of Appeals for the Federal Circuit (CAFC) issued a precedential decision Wednesday vacating and remanding a district court ruling that had denied Pen-Tech Associates, Inc.’s motion for sanctions and attorney’s fees due to Epic Tech, LLC’s allegedly frivolous infringement claims. The CAFC found the district court had provided “insufficient detail to permit meaningful review.”

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