Posts in Federal Circuit

CAFC Says Improper Litigation Conduct Warrants Attorneys’ Fees Award for Netflix

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.

Amicus Filings in Biogen v. Mylan Urge SCOTUS to Eliminate Uncertainty in Drafting Patents to Satisfy Written Description Requirement

Last week, the U.S. Supreme Court received several amicus briefs filed in support of the petition for writ of certiorari filed in Biogen International GmbH v. Mylan Pharmaceuticals Inc. If cert is granted, this case will ask the nation’s highest court to clarify the written description requirement under 35 U.S.C. § 112. The appeal follows a contentious decision this March from the U.S. Court of Appeals for the Federal Circuit to deny panel rehearing and rehearing en banc of an earlier ruling affirming the Northern District of West Virginia’s invalidation of Biogen’s patent claims covering a method of treating multiple sclerosis (MS) under Section 112.

Federal Circuit Affirms Denial of JMOL, Partial Costs in Favor of Amazon

The U.S. Court of Appeals for the Federal Circuit (CAFC) today affirmed a district court’s ruling denying Innovation Sciences’ post-trial motion for judgment as a matter of law (JMOL) that claims of three of its patents are not invalid and that Amazon.com, Inc. infringed them, or, alternatively, a new trial. The CAFC said that substantial evidence supported the district court’s finding of anticipation, which Amazon proved via expert testimony relating to a prior art home automation software called HAL.

A Tale of Two Motions: A Closer Look at Motions to Dismiss in Design Patent Cases

For most people, what comes to mind when they hear the word “patent” might be an invention like the lightbulb—Thomas Edison’s version rather than Sawyer and Man’s, probably—or the telephone—another hotly-contested invention between Alexander Graham Bell and the lesser-known Elisha Gray….What the average person might not be aware of is the type of patent intended to protect “any new, original, and ornamental design for an article of manufacture.” This is the domain of the design patent…. Traditionally, design patents covered physical designs that had some tangible effect on the shape, or texture of the “article of manufacture.” Over time, design patent protection extended to cover screen layouts and graphical user interfaces (“GUIs”)…. Two recent cases are some of the rare examples of a company arguing infringement solely based on GUI design patents.

CAFC Affirms Invalidation of Stanford Organ Transplant Rejection Test in Latest Patent-Eligibility Blow to Medical Diagnostics

On July 18, the U.S. Court of Appeals for the Federal Circuit issued a precedential decision in CareDx, Inc. v. Natera, Inc. affirming a summary judgment ruling of the District of Delaware, which invalidated claims from three Stanford University patents licensed by CareDx as patent  ineligible. The decision marks yet another blow to medical diagnostic testing, this time in the context of organ transplants, and the prospects of their developers for obtaining enforceable patent rights.

Newman Says CAFC Majority Departed from Claim Construction Law in Blow to Ford Over Fuel System Patents

The U.S. Court of Appeals for the Federal Circuit (CAFC) on Monday vacated and remanded a decision of the U.S. District Court for the District of Delaware, which had granted judgment of non-infringement for Ford Motor Company on three patents owned by Ethanol Boosting Systems, LLC and the Massachusetts Institute of Technology (EBS). The CAFC, with Chief Judge Moore writing, said the district court’s ruling was based on an erroneous claim construction. Judge Pauline Newman dissented, accusing the majority of departing “from the rule that patent claims are construed in accordance with the invention described in the specification.”

Teva Tells SCOTUS CAFC Decision Could Upend Hatch-Waxman

On July 11, Teva Pharmaceuticals USA filed a Petition for Writ of Certiorari to the U.S. Supreme Court asking it to review a decision of the U.S. Court of Appeals for the Federal Circuit (CAFC) in which the CAFC found that Teva could be held liable for inducement based on sections of a “skinny label” that provided information about unpatented uses. Teva claims that the decision by the CAFC would upend the legal rules governing the modern prescription-drug marketplace. The petition notes that the decision would wreak doctrinal havoc in two equally disturbing ways. First, the court’s decision eliminates the key element of inducement liability requiring plaintiffs to prove that a defendant took active steps to encourage the direct infringement. Secondly, it effectively nullifies a Congressional act that was enacted to bring low-cost generic drugs to market, which is precisely what Teva was doing.

Petitioner Distances Eligibility Case from American Axle, Imploring SCOTUS to Weigh in on ‘Quasi-Enablement’ Analysis

Interactive Wearables, the petitioner in yet another patent eligibility case that the U.S. Supreme Court is being asked to review, filed a reply brief on July 11 distancing its petition from that of American Axle & Manufacturing, Inc.’s, which was denied certiorari on June 30, 2022. The brief characterizes U.S. patent eligibility doctrine as being “perilously fractured” and narrows its arguments to focus on the third question presented in its petition, since the first two were addressed, and have now been rejected by the Court, in the American Axle case.

The Case for Patenting AI: U.S. Patent Laws Better Get Smart or Get Left Behind

The idea of patented inventions brings to mind machines fully realized – flying contraptions and engines with gears and pistons operating in coherent symphony. When it comes to artificial intelligence (AI), there are no contraptions, no gears, no pistons, and in a lot of cases, no machines. AI inventors sound much more like philosophers theorizing about machines, rather than mechanics describing a machine. They use phrases like “predictive model” and “complexity module” that evoke little to no imagery or association with practical life whatsoever. The AI inventor’s ways are antithetical to the principles of patent writing, where inventions are described in terms of what does what, why, how, and how often.

Federal Circuit Denies Thales’ Request to Bar Philips from Heading to the ITC

The U.S. Court of Appeals for the Federal Circuit today held in a precedential decision that Thales DIS AIS Deutschland GMBH cannot stop Philips from seeking an exclusion order at the International Trade Commission (ITC) to enjoin Thales from importing its products relating to wireless network technology into the United States.

Inventor Asks SCOTUS to Consider Patent Eligibility Again, Distinguishing Case from American Axle

Despite the U.S. Supreme Court’s rejection of the petition in American Axle v. Neapco just a few days earlier, inventor David Tropp on July 5 again asked the Court to unravel U.S. patent eligibility law. Tropp, who owns two patents relating to luggage lock technology that enables airport screening of luggage while still allowing the bags to remain locked, is asking the Court to answer the question: “Whether the claims at issue in Tropp’s patents reciting physical rather than computer-processing steps are patent-eligible under 35 U.S.C. § 101, as interpreted in Alice Corporation Pty v. CLS Bank International, 573 U.S. 208 (2014).”

Federal Circuit Holds Transcription Error Cannot Be Used to Prove Obviousness

The U.S. Court of Appeals for the Federal Circuit (CAFC) earlier today held in a precedential decision that a typographical error in a prior art document would have been dismissed by a person of ordinary skill in the art (POSITA) and thus could not be used to prove obviousness. The appeal was brought by LG Electronics, Inc, against ImmerVision, Inc. and related to claims of U.S. Patent No. 6,844,990 for “capturing and displaying digital panoramic images.”

It’s Time to Give Up on the Charade of U.S. Patent Protection: Most Patents are Now Officially Invalid under American Axle

Last week, the Supreme Court refused certiorari in yet another patent eligibility appeal. I’ve lost count as to how many times the Court has refused to provide clarity to the fundamental question of patent eligibility since it last muddied the waters in Alice back in 2014. I stopped counting several years ago, when the number of petitions—pleas begging for help really—crossed over 50. But the petition in American Axle was supposed to be different. Yes, the Federal Circuit has been hopelessly, and helplessly, split for years—a division and impotence of their own making. In American Axle the self-castrated Federal Circuit seemed to believe the Supreme Court modern quartet of patent eligibility cases renders nothing of importance or value patent eligible. In fact, the Federal Circuit actually ruled that a drive shaft is not patent eligible because the operation of the drive shaft fundamentally relies on Hooke’s law.

Coca-Cola Win Reversed at CAFC in Case Over Indian Soda Trademarks

The U.S. Court of Appeals for the Federal Circuit (CAFC) today reversed a decision of the U.S. Patent and Trademark Office’s (USPTO’s) Trademark Trial and Appeal Board (TTAB) that had canceled two marks for Thums Up cola and Limca lemon-lime soda owned by Meenaxi Enterprise, Inc. The CAFC held that Coca-Cola had not established a statutory cause of action based on lost sales or reputational injury under Section 14(3) of the Lanham Act and thus reversed the decision. Judge Reyna wrote separately in concurrence but said he would have focused the inquiry on the territoriality principle and the well-known mark exception, rather than lost sales and reputational injury among U.S. consumers, as the majority did.

CAFC Reverses Contempt Finding for Disclosures of Confidential Discovery Information to Develop Joint Defense Strategy

On June 28, the U.S. Court of Appeals for the Federal Circuit (CAFC) issued a precedential decision in Static Media LLC v. Leader Accessories LLC reversing a contempt finding entered in the Western District of Wisconsin over alleged violations of a protective order from a design patent infringement case between Static and Leader. Circuit Judge Jimmie Reyna authored a brief dissent from the majority opinion, arguing that Leader’s disclosure of certain confidential information with another company sued by Static for the development of a joint defense strategy was a violation of the district court’s protective order.