Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

Dr. Neena Biswas, a physician at the VA’s Dallas facility, alleged that the VA retaliated against her for whistleblowing by converting her appointment from permanent to temporary and subsequently terminating her employment. Dr. Biswas had made disclosures regarding the hiring process for the Chief of the Hospitalist Section, which she believed violated statutory requirements prioritizing U.S. citizens.The Merit Systems Protection Board (Board) found that Dr. Biswas’s disclosures were protected under the Whistleblower Protection Act and contributed to the VA’s actions. However, the Board denied her request for corrective action, concluding that the VA would have taken the same actions regardless of her disclosures. The Board determined that the VA had strong evidence supporting its personnel actions, including Dr. Biswas’s unprofessional and disruptive conduct, and that other similarly situated employees were treated similarly.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed the Board’s decision, agreeing that the VA had clear and convincing evidence to support its actions. The court noted that Dr. Biswas’s conduct, including refusing patient assignments and sending inflammatory emails, justified the VA’s actions. The court also found that the Board’s error in considering Dr. Biswas’s emails to the VA Secretary as insubordination was harmless, as the decision was supported by other substantial evidence of her misconduct. The court concluded that the VA met its burden of proving it would have taken the same actions absent the whistleblowing. View "BISWAS v. DVA " on Justia Law

Lynk Labs, Inc. owns U.S. Patent No. 10,687,400, which relates to light-emitting diodes (LEDs) and LED drivers, specifically alternating current (AC) driven LEDs and LED circuits. Samsung Electronics Co., Ltd. filed a petition for inter partes review (IPR) challenging claims 7-20 of the '400 patent for obviousness. Lynk Labs disclaimed claims 14 and 18-20, leaving claims 7-13 and 15-17 in dispute. The Patent Trial and Appeal Board (Board) determined that claims 7-13 and 17 were unpatentable for obviousness based on prior art, including U.S. Patent Application Publication No. 2004/0206970 (Martin), which was filed before the '400 patent's priority date but published after.The Board found that Martin could serve as prior art under 35 U.S.C. § 102(e)(1), which allows a published patent application to be deemed prior art as of its filing date. The Board also determined that claims 15 and 16 were unpatentable based on other grounds not involving Martin. Lynk Labs appealed, arguing that Martin could not be prior art because it was published after the '400 patent's priority date and that the Board erred in its claim constructions.The United States Court of Appeals for the Federal Circuit affirmed the Board's decision. The court held that under § 102(e)(1), a published patent application can be deemed prior art as of its filing date, thus Martin was properly considered prior art. The court also upheld the Board's claim constructions, concluding that the term "a plurality of LEDs connected in series" includes both individual LEDs and groups of LEDs connected in series, and that "matches" in the context of the forward voltage limitation includes both equivalence and a rectified input AC voltage output that is less than the forward voltage of the LEDs. The court found substantial evidence supporting the Board's findings and affirmed the unpatentability of claims 7-13 and 17. View "LYNK LABS, INC. v. SAMSUNG ELECTRONICS CO., LTD. " on Justia Law

BearBox LLC and Austin Storms alleged that Lancium LLC and its co-founders, Michael T. McNamara and Dr. Raymond E. Cline, Jr., improperly used Storms' ideas and patented them. The dispute arose from a conversation at a Bitcoin mining conference and a follow-up email from Storms to McNamara containing BearBox's system details. BearBox claimed that Storms should be named as an inventor on Lancium's U.S. Patent No. 10,608,433.The United States District Court for the District of Delaware granted summary judgment to Lancium, dismissing BearBox's Louisiana state law conversion claim as preempted by federal patent law. The court also excluded BearBox's expert's supplemental report and denied BearBox's claim that Storms was either a sole or joint inventor of the '433 patent.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed the district court's judgment on all issues. It held that BearBox's conversion claim was preempted by federal patent law because it sought patent-like protection for unpatented technology. The court also upheld the exclusion of the expert's supplemental report, finding no abuse of discretion in the district court's decision. Finally, the court agreed with the district court's conclusion that BearBox failed to prove by clear and convincing evidence that Storms was a sole or joint inventor of the '433 patent. The court found that the information Storms shared with Lancium did not establish his contribution to the claimed invention and that Lancium had independently conceived the subject matter of the patent before Storms' communication. View "BEARBOX LLC v. LANCIUM LLC " on Justia Law

Novartis Pharmaceuticals Corporation developed a combination therapy of valsartan and sacubitril, marketed as Entresto®, for treating heart failure. The U.S. Patent 8,101,659 (the ’659 patent) protects this combination. In 2019, several generic manufacturers, including MSN Pharmaceuticals, filed Abbreviated New Drug Applications (ANDAs) to market generic versions of Entresto, prompting Novartis to sue for patent infringement.The United States District Court for the District of Delaware held a three-day bench trial. The court found that the claims of the ’659 patent were not invalid for obviousness, lack of enablement, or indefiniteness but were invalid for lack of written description. Specifically, the court determined that the patent did not adequately describe the combination of valsartan and sacubitril in a complex form, which was a later-discovered form of the combination.The United States Court of Appeals for the Federal Circuit reviewed the case. The court reversed the district court’s determination that the claims lacked an adequate written description, holding that the ’659 patent adequately described the claimed combination of valsartan and sacubitril administered "in combination." The court affirmed the district court’s findings that the claims were not invalid for lack of enablement or obviousness. The court concluded that the patent did not need to enable or describe the later-discovered complex form of the combination, as it was not claimed in the patent. The court also found no clear error in the district court’s determination that the prior art did not provide a motivation to combine valsartan and sacubitril with a reasonable expectation of success.Thus, the Federal Circuit affirmed in part and reversed in part, upholding the validity of the ’659 patent except for the written description finding, which it reversed. View "Novartis Pharmaceuticals Corporation v. Torrent Pharma Inc." on Justia Law

Oman Fasteners, LLC, a foreign producer and exporter of steel nails, was subject to a 2015 antidumping-duty order by the U.S. Department of Commerce. During the 2020-2021 administrative review, Oman Fasteners submitted a response to Commerce's detailed questionnaire 16 minutes past the 5:00 PM deadline. Commerce rejected the late submission and applied an adverse inference, resulting in a 154.33% antidumping-duty rate for Oman Fasteners.Oman Fasteners challenged Commerce's decision in the Court of International Trade (Trade Court), seeking a preliminary injunction against the imposition of the 154.33% duty rate. The Trade Court consolidated the preliminary injunction proceeding with a trial on the merits and held that Commerce abused its discretion. The court remanded the case to Commerce for recalculation and issued an injunction limiting cash deposits to the pre-existing 1.65% rate.Mid Continent Steel & Wire, Inc., a domestic steel-nail producer, intervened and filed an interlocutory appeal with the United States Court of Appeals for the Federal Circuit. The Federal Circuit concluded that Mid Continent had standing and that the appeal was not moot. The court affirmed the Trade Court's injunction, agreeing that Commerce's application of the 154.33% rate was unsupported by substantial evidence and constituted an abuse of discretion. The court noted that the slight delay in submission did not justify such a punitive rate and that the balance of hardships favored Oman Fasteners, which faced irreparable harm without the injunction. View "OMAN FASTENERS, LLC v. US " on Justia Law

Bitmanagement Software GmBH ("Bitmanagement") developed software for rendering three-dimensional graphics, specifically "BS Contact Geo," which was used by the United States Navy ("Navy") in conjunction with its SPIDERS 3D platform. Initially, Bitmanagement provided the Navy with 100 seat licenses, allowing installation on 100 computers. In 2012, the Navy switched to a floating license, permitting installation on multiple computers but limiting simultaneous users to 20, monitored by a tracking application called Flexera. However, Flexera failed to limit usage, and the software was installed on over 429,000 Navy computers.The United States Court of Federal Claims initially found no liability for copyright infringement. Bitmanagement appealed, and the Federal Circuit held that the Navy's failure to use Flexera breached a material condition of the implied license, constituting copyright infringement. The case was remanded to the Court of Federal Claims to calculate damages. On remand, the court awarded Bitmanagement $154,400, based on a hypothetical negotiation for a combination of seat and floating licenses, rather than per-copy damages.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the lower court's decision. The Federal Circuit held that the Court of Federal Claims did not abuse its discretion in awarding damages based on the Navy's actual usage of the software rather than the number of copies made. The court found that the hypothetical negotiation would have resulted in a primarily usage-based licensing scheme, supported by the parties' past licensing practices and the evidence presented. The court also upheld the admission of the government's damages expert's testimony and found no error in the burden of proof allocation. View "BITMANAGEMENT SOFTWARE GMBH v. US " on Justia Law

Mr. Anthony W. Knox, a former Special Agent with the Drug Enforcement Administration (DEA) and a member of the United States Air Force Reserves, brought reemployment and discrimination claims under the Uniformed Services Employment and Reemployment Rights Act (USERRA). He sought to retroactively correct the effective dates of a within-grade pay increase and a promotion. Knox was deployed on active duty from November 2002 to November 2003. During his deployment, his DEA supervisor indicated that his next within-grade increase should be effective February 23, 2003, but it was incorrectly set as April 20, 2003. Knox returned to the DEA in November 2003 and was eventually promoted to GS-13 in April 2016.The Merit Systems Protection Board (Board) granted Knox’s within-grade increase reemployment claim but denied his promotion claims and his within-grade increase discrimination claim. The Board found that the delay in Knox’s within-grade increase was an administrative error unrelated to his military service and that his promotion was discretionary, not automatic.The United States Court of Appeals for the Federal Circuit reviewed the case. The court affirmed the Board’s denial of Knox’s discrimination claims, finding substantial evidence supported the Board’s conclusion that the delay in his within-grade increase was not due to his military service. However, the court vacated and remanded the Board’s decision on Knox’s promotion reemployment claim, stating that the Board applied the incorrect legal standard by requiring Knox to prove he was entitled to an automatic promotion. The correct standard is whether Knox may have been entitled to the promotion, considering factors such as whether the promotion was generally granted to all employees and whether it was reasonably certain that the benefit would have accrued but for his military service. View "KNOX v. DOJ " on Justia Law

CeramTec GmbH manufactures artificial hip components made from zirconia-toughened alumina (ZTA) ceramic, which contains chromium oxide (chromia) and is marketed under the name "Biolox Delta." The addition of chromia gives the ceramic a pink color. CeramTec held U.S. Patent 5,830,816 (the '816 patent) for the chemical composition of Biolox Delta until it expired in January 2013. In January 2012, CeramTec applied for trademarks for the pink color of its ceramic hip components, which were registered on the Supplemental Register in April 2013. CoorsTek Bioceramics LLC, a competitor, manufactures similar ceramic hip implants and filed a lawsuit and a cancellation petition with the Trademark Trial and Appeal Board (the Board) in 2014, arguing that the pink color was functional and should not be trademarked.The Board found in favor of CoorsTek, concluding that the pink color was functional for ceramic hip components. The Board analyzed the functionality under the four factors from In re Morton-Norwich Products, Inc., and found that CeramTec's patents and public communications disclosed the functional benefits of chromia, including increased hardness. The Board also found that there was no probative evidence of functionally equivalent designs and conflicting evidence regarding the cost of manufacturing. The Board rejected CeramTec's unclean hands defense, which argued that CoorsTek should be precluded from challenging the trademarks due to its previous statements about chromia's lack of material benefits.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Board's decision. The court held that the Board's findings were supported by substantial evidence and that the Board correctly applied the burden of proof. The court also addressed CeramTec's arguments regarding the Board's analysis of the Morton-Norwich factors and the unclean hands defense, finding no reversible error. The court concluded that the pink color of CeramTec's ceramic hip components was functional and not eligible for trademark protection. View "CERAMTEC GMBH v. COORSTEK BIOCERAMICS LLC " on Justia Law

Honeywell International Inc., Telit Cinterion Deutschland GmbH, and Sierra Wireless, ULC (collectively, "Honeywell") appealed a decision by the Patent Trial and Appeal Board (PTAB) regarding U.S. Patent No. 7,319,718 (the '718 patent). The '718 patent involves a coding method for Channel Quality Indicator (CQI) in third-generation mobile communication systems. The PTAB had declined to hold claims 1, 2, 4-7, 9-13, and 15-23 of the '718 patent unpatentable as obvious.The PTAB found that Honeywell had not shown that a person of ordinary skill in the art would have been motivated to switch the last two bits in the basis sequence table of the Philips reference to provide more protection to the most significant bit (MSB). The PTAB also held that even if such a motivation existed, it had not been demonstrated that this change would be desirable. Honeywell argued that the PTAB's decision was based on multiple legal errors and was not supported by substantial evidence.The United States Court of Appeals for the Federal Circuit reviewed the PTAB's decision. The court found that the PTAB improperly based its conclusion on the '718 patent's primary motivation to maximize system throughput rather than minimizing root-mean-square error or bit error rate. The court noted that the motivation to modify a prior art reference need not be the same as the patentee's motivation. The court also found that the PTAB's finding that Honeywell had not shown a motivation to switch the bits was not supported by substantial evidence, as the Philips reference itself recognized the benefit of protecting the MSB.The court concluded that the PTAB's decision was based on a misunderstanding of the relevant standards for obviousness and anticipation. The court held that the PTAB erred in requiring a consensus among the working group members and in failing to recognize that the claimed modification needed only to be desirable, not the best or preferred approach. The decision of the PTAB was reversed. View "HONEYWELL INTERNATIONAL INC. v. 3G LICENSING, S.A. " on Justia Law

Thomas Rodenhizer, a U.S. Army veteran, sought an earlier effective date for his veteran benefits, which the Board of Veterans’ Appeals denied. He appealed to the United States Court of Appeals for Veterans Claims. During the appeal, Mr. Rodenhizer passed away, and his mother, Deborah Rodenhizer, moved to be substituted in his place. The Veterans Court denied her motion, vacated the Board’s decision, and dismissed the appeal, stating that Ms. Rodenhizer had not established her right to the benefits.The Veterans Court’s decision was based on the fact that Ms. Rodenhizer had not provided evidence that she requested a determination of accrued-benefits eligibility from the VA within one year of her son’s death, as required by 38 U.S.C. § 5121(c). Additionally, the VA had not made a determination about her eligibility to receive accrued benefits. The Veterans Court concluded that it could not make the factual determination of her eligibility in the first instance.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the Veterans Court erred in denying the motion to substitute and dismissing the appeal before a final decision was made in the parallel VA proceeding regarding Ms. Rodenhizer’s eligibility as an accrued-benefits claimant. The Federal Circuit vacated the Veterans Court’s judgment and remanded the case with instructions to hold the appeal and motion to substitute in abeyance pending the outcome of the VA’s determination of Ms. Rodenhizer’s eligibility. The court emphasized that this approach would prevent unnecessary reworking of the same claim and save families from facing unnecessary administrative hurdles. View "RODENHIZER v. MCDONOUGH " on Justia Law