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

This case involves a challenge to the validity of a patent owned by DivX, LLC, which claims systems and methods for streaming partly encrypted media content. DivX sued Netflix, Inc. for patent infringement, leading Netflix to petition for inter partes review (IPR) before the United States Patent and Trademark Office’s Patent Trial and Appeal Board (PTAB). Netflix argued that the patent’s claims would have been obvious in view of specific prior-art references. The dispute centered on the proper construction of a claim limitation relating to the location of "encryption information" within the system described by the patent.After the IPR was instituted, the Patent Trial and Appeal Board first issued a final written decision holding that Netflix had not shown the claims were unpatentable, basing its conclusion on issues unrelated to claim construction. Netflix appealed that decision to the United States Court of Appeals for the Federal Circuit, which vacated and remanded. On remand, the Board adopted DivX’s proposed claim construction, holding that the limitation required the encryption information itself to be located within the requested portions of the selected stream of protected video, and again found in favor of DivX. Netflix appealed again.The United States Court of Appeals for the Federal Circuit reviewed the Board’s claim construction de novo. The appellate court held that the Board erred in its construction of the disputed limitation. The correct construction, the court explained, is that only the encrypted portions of the video frames, not the encryption information, must be located within the requested portions of the selected stream. The court found that, under this construction, the asserted prior art meets the limitation. The Federal Circuit therefore reversed the Board’s claim construction, vacated its decision, and remanded for further proceedings. View "NETFLIX, INC. v. DIVX, LLC " on Justia Law

Several technology companies challenged instructions issued by the Director of the United States Patent and Trademark Office (PTO) that guided the Patent Trial and Appeal Board (Board) in deciding whether to institute inter partes review (IPR) proceedings. These instructions, known collectively as the NHK-Fintiv instructions, outlined factors for the Board to consider when parallel patent litigation was occurring in district court. The challengers argued that these instructions resulted in too many denials of IPR petitions and were contrary to law, arbitrary and capricious, and issued without the required notice-and-comment rulemaking under the Administrative Procedure Act (APA).The United States District Court for the Northern District of California initially found all challenges to the PTO’s instructions to be judicially unreviewable. On appeal, the United States Court of Appeals for the Federal Circuit previously held that while the challenges based on statutory and arbitrary-and-capricious grounds were unreviewable, the claim regarding the lack of notice-and-comment rulemaking could proceed. On remand, the district court determined that the instructions were exempt from notice-and-comment requirements because they were “general statements of policy,” not substantive or legislative rules.The United States Court of Appeals for the Federal Circuit reviewed the district court’s decision de novo. The court agreed that the Director’s instructions were general statements of policy exempt from notice-and-comment rulemaking under 5 U.S.C. § 553(b). It emphasized that there is no statutory right to IPR institution, that the instructions do not bind the Director, and that the Director retains unreviewable discretion to institute or deny IPR. The court found that none of the legal standards or precedents cited by the challengers required a different result, and it affirmed the district court’s judgment rejecting the APA-based challenge. View "APPLE INC. v. SQUIRES " on Justia Law

The petitioner received a Prevnar 13 pneumococcal conjugate vaccine and soon after began experiencing symptoms that ultimately led to a diagnosis of Guillain-Barré Syndrome (GBS). He sought compensation under the National Vaccine Injury Compensation Program, alleging that the vaccine caused his condition. To support his claim, he presented expert testimony advancing a molecular mimicry theory, arguing that components of the vaccine could trigger an autoimmune response resulting in GBS. The government countered with its own expert, disputing this causation theory.A special master in the United States Court of Federal Claims evaluated the evidence and found that the petitioner failed to prove, by a preponderance of the evidence, that the vaccine can cause GBS. The special master determined that key elements of the petitioner’s expert’s theory lacked support from reliable scientific literature and that the evidence did not sufficiently establish a causal connection. As a result, the special master denied compensation. The United States Court of Federal Claims reviewed and affirmed the special master’s decision.The United States Court of Appeals for the Federal Circuit reviewed the case. It held that the special master did not require the petitioner to provide direct medical literature establishing causation, which would have been contrary to the standard set forth in Althen v. Secretary of Health & Human Services, 418 F.3d 1274 (Fed. Cir. 2005). Instead, the special master properly considered the absence of supporting literature as one factor in evaluating the reliability of the causation theory, consistent with governing law. The Federal Circuit affirmed the Claims Court’s decision, noting concern about inconsistent outcomes among special masters on similar facts but finding no legal error in this case’s resolution. View "GAMBOA-AVILA v. HHS " on Justia Law

Two companies that manufacture activated carbon honeycombs, used in automotive emission control systems, became embroiled in a legal dispute. One company holds a patent covering certain dual-stage fuel vapor canister systems, but not honeycombs used in air-intake systems. The other company began marketing a competing honeycomb product, prompting a patent infringement lawsuit. In response, the defendant challenged the validity of the patent, argued non-infringement, and asserted counterclaims alleging antitrust violations—specifically, that the patent holder unlawfully tied licenses for the patent to the purchase of its unpatented honeycomb products.The United States District Court for the District of Delaware first granted summary judgment that the patent was invalid due to prior invention. It then denied both parties’ motions for summary judgment on the antitrust and tortious interference counterclaims, finding a factual dispute about whether the honeycomb products had substantial non-infringing uses. At trial, the jury found the patent holder liable for unlawful tying under federal antitrust law, concluding that it had conditioned patent licenses on customers buying its honeycombs, and awarded significant damages. The district court denied the patent holder’s motions for judgment as a matter of law and for a new trial, confirming the jury’s findings that the honeycombs were staple goods with substantial non-infringing uses and that the conduct was not protected by immunity doctrines.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the district court’s judgment. The Federal Circuit held that substantial evidence supported the jury’s findings that the honeycomb products had actual and substantial non-infringing uses, making them staple goods and removing the patent holder’s statutory defense against antitrust liability. The court also rejected the argument that the patent holder’s conduct was immunized from antitrust scrutiny, and upheld the damages award, finding no error in the district court’s rulings or the jury’s determinations. View "INGEVITY CORPORATION v. BASF CORPORATION " on Justia Law

GoTV Streaming, LLC owned three related patents that describe a system in which a server receives a content request from a wireless device, tailors the content to that device’s capabilities (such as screen size), and sends the modified content to the device for display. The patents were designed to reduce the burden of developing unique applications for each device type. Instead, the server uses generic templates and custom configurations that are then tailored to the specific device’s needs.The United States District Court for the Central District of California initially dismissed GoTV’s claims for induced infringement, holding that such claims require the defendant’s knowledge of the patents before the lawsuit. The court also denied Netflix’s motion that the patents were ineligible under 35 U.S.C. § 101, finding the claims were not directed to abstract ideas. The court later found all claims of the ’865 patent indefinite and invalid, adopted some of GoTV’s proposed claim constructions, and denied GoTV’s motions to exclude certain Netflix damages evidence. At trial, the jury found Netflix infringed only one patent and awarded GoTV $2.5 million in damages. The district court denied GoTV’s post-trial motions, including for retrial on damages and for prejudgment interest predating the complaint.The United States Court of Appeals for the Federal Circuit reviewed the case. It reversed the district court’s indefiniteness finding for the ’865 patent and adopted GoTV’s claim construction. However, it held that all asserted claims were patent-ineligible under § 101 because they were directed to the abstract idea of using a generic template tailored for a user’s device without reciting an inventive concept. The Federal Circuit reversed the district court’s judgment for GoTV, ordered judgment for Netflix, and vacated the district court’s rulings on inducement and damages evidence. View "GOTV STREAMING, LLC v. NETFLIX, INC. " on Justia Law

The United States Department of Commerce issued a request for proposals seeking enterprise-wide information technology services. After evaluating numerous proposals, the agency announced fifteen presumptive contract awardees. CAN Softtech, Inc. (CSI) and other unsuccessful offerors challenged the awards, alleging flaws in the evaluation process. The agency responded by reevaluating the proposals multiple times, making adjustments to the technical evaluation team, and ultimately reissuing awards to the same fifteen companies. Each time, CSI and others filed new or amended bid protests, contending that the agency’s corrective actions and reevaluations were improper.The United States Court of Federal Claims initially found the agency’s evaluation of CSI’s proposal arbitrary and capricious and enjoined performance of the contracts pending reevaluation. After further corrective action by the agency, including terminating awards and issuing new evaluations, the trial court determined that the agency’s final evaluation and contract awards were rational and supported by the record. The court considered the agency’s process for reevaluation and corrective action to have satisfied procedural requirements, and rejected CSI’s argument that the agency needed to seek voluntary remand before taking corrective action.The United States Court of Appeals for the Federal Circuit reviewed the trial court’s judgment de novo. The court held that administrative agencies possess inherent authority to terminate contract awards and take unilateral corrective action in response to bid protests, so long as they act within statutory and procedural bounds and avoid arbitrary or capricious conduct. The court also determined that the agency’s actions in this case did not violate the Administrative Procedure Act and were not arbitrary, capricious, or an abuse of discretion. The Federal Circuit affirmed the trial court’s denial of CSI’s bid protest. View "SYNEREN TECHNOLOGIES CORP. v. US " on Justia Law

A veteran who served in the U.S. Navy sought service-connected disability benefits for several medical conditions, including asthma, chronic obstructive pulmonary disease (COPD), gastroesophageal reflux disease (GERD), and an enlarged prostate. He claimed that GERD and prostate issues were secondary to COPD, which he alleged was caused by exposure to lead paint during his military service. The veteran submitted medical articles and sworn statements supporting the connection between lead exposure and these conditions in February 2022 during an appeal for asthma and COPD. When he later appealed the denial of benefits for GERD and prostate conditions, he attached an addendum to his Notice of Disagreement (NOD) directing the Board of Veterans’ Appeals to consider the previously submitted evidence.After the regional office denied his claim, the veteran sought higher-level review, which was also denied. He then appealed to the Board, selecting an appeal track that allowed submission of additional evidence without a hearing. The Board denied his appeal, stating that no “new and relevant” evidence had been presented and refusing to consider the February 2022 evidence because it had been submitted before the NOD for the current claim. The Board reasoned that evidence must be submitted anew with each NOD to be considered. The veteran appealed to the United States Court of Appeals for Veterans Claims, which affirmed the Board’s decision, relying on Cook v. McDonough to hold that evidence submitted between the agency decision and the NOD was excluded from consideration.The United States Court of Appeals for the Federal Circuit reviewed the statutory interpretation de novo and held that the veteran satisfied the evidentiary submission requirement by clearly and timely referencing the prior submission in his NOD addendum. The court reversed the Veterans Court's decision, concluding that the Board must consider the evidence previously submitted and clearly incorporated by reference with the NOD. View "CASH v. COLLINS " on Justia Law

David Hamill served in the U.S. Marine Corps from 2009 to 2013 and was discharged under “Other Than Honorable” conditions. After his discharge, he sought disability compensation for PTSD and other conditions, but the Department of Veterans Affairs (VA) denied his application in 2014, citing that his discharge status barred him from most benefits. He did not appeal. In 2017 and again in 2021, Hamill filed new claims for disability benefits, which the VA interpreted as attempts to reopen his character of discharge determination. The VA ultimately granted service connection for PTSD in 2021, but did not address his discharge status, leaving Hamill without an appealable decision on that issue. Hamill’s attorney later requested an adjudication of his discharge characterization, but the VA replied that he should seek a change through the Service Department.Hamill then petitioned the United States Court of Appeals for Veterans Claims for a writ of mandamus to compel the VA to adjudicate his character of discharge claim. The Secretary moved to dismiss the petition as moot after the VA sent a letter in February 2023 explicitly finding no new and material evidence to reopen the discharge determination. Hamill also requested class certification, arguing the petition was not moot due to certain exceptions. A divided panel of the Veterans Court dismissed Hamill’s petition, concluding it was moot based on the implicit denial doctrine, which held that the 2021 VA decision implicitly denied his claim.The United States Court of Appeals for the Federal Circuit reviewed the case and held that under the Appeals Modernization Act (AMA), the VA can no longer implicitly deny claims; decisions must explicitly identify adjudicated issues. The court vacated the Veterans Court’s order dismissing Hamill’s petition and remanded the case for further proceedings, including consideration of mootness exceptions. Costs were awarded to Hamill. View "HAMILL v. COLLINS " on Justia Law

Over three hundred restaurants and businesses applied for grants from the Restaurant Revitalization Fund (RRF), a program established by Congress in response to the COVID-19 pandemic and administered by the Small Business Administration (SBA). The plaintiffs submitted their applications on the first day the portal opened, but did not receive grants before the RRF funds were exhausted. They alleged that the SBA improperly awarded grants to later applicants instead of following the statutory requirement to award grants in the order applications were received.The United States Court of Federal Claims considered the plaintiffs’ complaint seeking damages equivalent to the unpaid grants. The Government moved to dismiss the case for lack of jurisdiction under the Tucker Act and for failure to state a claim, arguing that the RRF statute did not mandate payment and that Congress imposed a cap on liability. The Court of Federal Claims denied the motion, holding that the RRF statute’s language was money-mandating, thus conferring jurisdiction under the Tucker Act, and that there was no clear statutory cap limiting the Government’s liability for the grants. The court certified its decision for interlocutory appeal.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the lower court’s decision. The appellate court held that the RRF statute was money-mandating due to its mandatory “shall award” language and the retrospective nature of the grant calculation. The court further determined that the statutory appropriation language was ambiguous and did not impose a clear cap limiting the Government’s liability. As a result, the plaintiffs’ claims fell within Tucker Act jurisdiction, and they had sufficiently stated a claim for relief. The decision of the Court of Federal Claims was affirmed. View "112 GENESEE STREET, LLC v. US " on Justia Law

In this case, the central issue arose during a countervailing duty investigation into phosphate fertilizers imported from Morocco and Russia. The International Trade Commission (Commission) collected information through questionnaires sent to various parties, including domestic and foreign producers. The Commission’s longstanding practice was to automatically designate all questionnaire responses as confidential, regardless of whether the submitting party requested confidentiality or whether the information would qualify for such treatment under the relevant statute. This led to heavy redactions in the administrative record when the investigation was challenged in court.A Moroccan producer, OCP S.A., sought review of the Commission’s injury determination in the United States Court of International Trade (CIT). The CIT initially remanded the injury determination due to insufficient evidentiary support. When the remand record again included substantial redactions, the CIT held a hearing to scrutinize the Commission’s confidentiality designations. After reviewing arguments from the Commission and affected parties, the CIT concluded that the Commission’s practice of automatically treating all questionnaire responses as confidential was unauthorized by law. The CIT found that much of the redacted information was either publicly available, generalized, or outdated, and thus not entitled to confidential treatment, with only a small portion warranting protection.The United States Court of Appeals for the Federal Circuit reviewed the CIT’s Confidentiality Opinion and Order. The Federal Circuit held that the governing statute does not abrogate the common law right of public access to judicial records and that the Commission’s blanket confidentiality rule conflicts with statutory requirements, which demand public disclosure of non-confidential information and proper justification for confidentiality. The Federal Circuit affirmed the CIT’s order that required the Commission to comply with statutory standards for confidentiality and to cease automatic confidential designation of questionnaire responses. View "In re United States" on Justia Law