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

Oplus filed a patent infringement suit in Illinois that was transferred to California. Oplus moved the Judicial Panel on Multidistrict Litigation to transfer the case back and consolidate it with other cases. The Panel denied the motion. Ultimately, the district court granted summary judgment of noninfringement. Defendant sought attorneys’ and expert witness fees under 35 U.S.C. 285 and 28 U.S.C. 1927. The court made numerous findings regarding misconduct, found the case exceptional under section 285, and held that Oplus and its counsel were vexatious litigants. The court nonetheless denied the request, stating that “[a]though Oplus’s behavior has been inappropriate, unprofessional, and vexatious, an award of attorney fees must take the particular misconduct into account,” the “case has been fraught with delays and avoidance tactics to some degree on both sides,” and “[t]here is little reason to believe that significantly more attorney fees or expert fees have been incurred than would have been in the absence of Oplus’s vexatious behavior.” Concerning section 1927, the court stated that “there is no evidence suggesting that Oplus’s behavior stemmed from bad faith or a sufficient intent to harass,” although there was “ample evidence of Oplus’s litigation misconduct.” The Federal Circuit vacated, finding the denial an abuse of discretion. View "Oplus Techs., Ltd. v. Vizio, Inc." on Justia Law

AMS sued Crane for infringement of four patents. In 2011, Crane requested an inter partes reexamination of each patent under 35 U.S.C. 311–318. Finding that Crane raised substantial new questions of patentability, the PTO initiated four inter partes reexaminations. While they were underway, AMS and Crane settled their suit. The court issued a consent judgment stating that “[t]he parties stipulate that [the patents] are valid,” that “[a]ll claims . . . are dismissed with prejudice,” and that “[t]his judgment is final.” AMS argued that the reexaminations must stop because, under 35 U.S.C. 317(b), the judgment was a “final decision . . . entered against a party in a civil action . . . that the party has not sustained its burden of proving the invalidity of any patent claim in suit.” The PTO denied AMS’s petition. The district court reasoned that the consent judgment, though final, was not a decision that Crane failed to prove invalidity of the patents, but only that the parties stipulated to validity. The Federal Circuit affirmed, holding that the PTO’s refusal to terminate pending reexaminations is not subject to judicial review because it is not a “final agency action” under the APA, 5 U.S.C. 704. View "Automated Merch. Sys., Inc. v. Lee" on Justia Law

IV alleged infringement of five patents. A year later, JPMC moved to stay the case pending the result of four covered business method reviews (CBMR) JPMC planned to file with respect to the patents. JPMC filed CBMR petitions for two patents, but never filed the other two promised petitions. Before the Patent Trial and Appeal Board acted on the petitions, the district court denied JPMC’s motion to stay, applying the four-factor test from the America Invents Act, 125 Stat. 284, 329–31. The court stated that, because there are multiple patents and claims in suit, it would be inappropriate to stay the entire litigation while waiting to see if the PTAB would initiate review of only two; that the litigation would likely be resolved more quickly than any extended CBM review; that it was largely speculative to argue that the PTAB’s resolutions of the CBMR petitions would reduce the court’s workload; and that any reduction was offset by IV’s right to a speedy trial. The Federal Circuit dismissed for lack of jurisdiction to consider an interlocutory appeal from a decision on a motion to stay until the PTAB institutes a CBMR proceeding. View "Intellectual Ventures II LLC v. JPMorgan Chase & Co." on Justia Law

Exela petitioned the Patent and Trademark Office to “reconsider and withdraw” its revival of the national stage application and to cancel the 218 patent, assigned to SCR Pharmatop. The PTO declined to consider Exela’s petition, stating that no law or regulation authorizes non-party challenge to a PTO ruling to accept a tardy filing. Exela then brought suit under the Administrative Procedure Act, arguing that the PTO’s action was ultra vires and that Exela’s petition should have been considered and favorably decided. The district court, on reconsideration and in view of new Fourth Circuit precedent, dismissed Exela’s complaint for failing to meet the statute of limitations for claims filed against the United States, including APA claims. The Federal Circuit affirmed the dismissal, on the ground that PTO revival rulings are not subject to third party collateral challenge, thereby precluding review regardless of whether Exela’s claims were time-barred. View "Exela Pharma Sciences, LLC v. Lee" on Justia Law

TWM filed a patent infringement suit against AT&T. A jury awarded damages. The district court entered judgment consistent with the verdict and denied all of AT&T’s post-trial motions. AT&T failed to file timely notice of appeal. The Federal Circuit held that the district court did not abuse its discretion or clearly err in refusing to extend or reopen the appeal period. With respect to F.R. App. P. 4(a)(5), the court found that the AT&T had failed to show good cause or excusable neglect for its failure to read the underlying orders and check the docket for more than a month after the court issued the final orders. Refusing to reopen the appeal period under Rule 4(a)(6), where a party actually received a final judgment, but failed to monitor the electronic docket for a compliant entry of the judgment, the court stated: “In this era of electronic filing … we find no abuse of discretion in a district court’s decision to impose an obligation to monitor an electronic docket for entry of an order which a party and its counsel already have in their possession and know that the clerk at least attempted to enter.” View "Two-Way Media, LLC v. AT&T, Inc." on Justia Law

Roca Solida, a non-profit religious organization, purchased a 40-acre Nevada parcel. A desert stream flowed across the property, the water rights to which Roca also purchased. The water supplied a recreational pond, used for baptisms. Roca’s property is situated within a national wildlife refuge, managed by the U.S. Fish and Wildlife Service. An FWS water restoration project completed in 2010 “restored [the] stream to its natural channel,” the effect of which was to divert the stream away from Roca Solida’s property, depriving it of water it would have otherwise enjoyed. In federal district court in Nevada, Roca sought declaratory, injunctive, and compensatory relief on the basis of alleged violations under the First and Fifth Amendment and “at least $86,639.00 in damage[s]” under the Federal Tort Claims Act, 28 U.S.C. 2671–80. It also sued in the Claims Court, seeking declaratory relief and compensatory damages on the basis that the diversion project constituted an unlawful taking and asserting FWS negligently executed the water diversion project, causing $86,639 in damages to “land, structures, and animals.” The Claims Court dismissed for lack of subject matter jurisdiction in light of the pending district court action under 28 U.S.C. 1500. The Federal Circuit affirmed. View "Ministerio Roca Solida v. United States" on Justia Law

United owns three patents that recite systems for using a landline telephone connection for both voice communication and data transmission. They are directed to the use of exchanges that combine the voice and data components of the signal for transmission over the telephone line, and filters that separate those components so that they can be received as separate voice and data signals by a user. In 2002, United’s predecessor sued EarthLink, charging direct infringement because EarthLink offered its customers an Internet connection service based on a broadband digital communications technology, Asymmetrical Digital Subscriber Line (ADSL). EarthLink argued that the accused ADSL system did not include a “telephone device” as required by all asserted claims. The jury returned a general verdict of non-infringement. The Federal Circuit affirmed without opinion. In 2011, United sued CenturyTel and Qwest for infringing the same claims of the three patents. The district court dismissed on collateral estoppel grounds, noting that United did not articulate how the defendants’ systems were different from the systems that were the subjects of the Earthlink trial other than that the defendants’ services included telephone devices. The Federal Circuit reversed, reasoning that the earlier verdict could have been based on several grounds. View "United Access Techs., LLC v. CenturyTel Broadband Servs., LLC" on Justia Law

Best, a Hong Kong manufacturer, produces Metalized Yarn from polyester chips melted with metal nanopowders to form monofilament yarns. Best sought a pre-importation ruling concerning proper tariff classification in the Harmonized Tariff Schedule (HTSUS), attaching a laboratory report describing the yarn as having a fiber content of 100% polyester, with 0.7%- 0.74% metal by weight. Customs classified the yarn as metalized yarn, HTSUS 5605.00.90, dutiable at 13.2%, stating “yarn combined with metal in the form of powder is considered a metalized yarn.” Best then sought a ruing regarding a “Johnny Collar” garment made of its yarn, asserting the garment was classifiable under HTSUS 6105.90.8030 as a shirt of other textile materials (duty rate 5.6%), not HTSUS 6110.30.3053 for polyester shirts (duty rate 32%). Based on trace amounts of metal and a label that stated “100% polyester,” Customs classified the sample as man-made non-metalized fibers under HTSUS 6110.30.3053. Customs subsequently revoked the Yarn Ruling, reclassifying the yarn as a polyester yarn under HTSUS 5402.47.90 (duty rate 8%). Customs also revoked the Johnny Collar Ruling as conflicting with the Yarn Ruling, but continued to classify the garment under 6110.30.30. Best challenged the Yarn Ruling Revocation, but not the Johnny Collar revocation. The Trade Court sustained the Revocation. The Federal Circuit vacated with instructions to dismiss for lack of jurisdiction. Best sought reversal of a Revocation, the effect of which would be to increase Best ’s own duty rate while benefiting manufacturers of products made from its yarn. The statute does not provide jurisdiction over such requests View "Best Key Textiles Co., Ltd. v. United States" on Justia Law

In 2005, NeuroRepair retained Nath Law Group for prosecution of patent applications. NeuroRepair became dissatisfied and requested that Nath transfer its files to another law firm to continue prosecution before the USPTO. Nath withdrew from representation of NeuroRepair before the USPTO, but continued to assist NeuroRepair with other matters. NeuroRepair filed suit in 2009, alleging professional negligence, breach of fiduciary duty, breach of written contract, breach of oral contract, breach of implied covenant of good faith and fair dealing, negligent misrepresentation, and false promise. Nath removed the case to federal court on the ground that it was “a civil action relating to patents.” After judgment in Nath’s favor in 2012, NeuroRepair appealed, challenging the court’s subject matter jurisdiction in light of the Supreme Court’s 2013 pronouncement in Gunn v. Minto. The Federal Circuit vacated, with instructions to remand to California state court; no federal issue is necessarily raised, because any federal issues raised are not substantial in the relevant sense. Federal court resolution of malpractice claims that do not raise substantial issues of federal law would usurp the important role of state courts in regulating the practice of law within their boundaries, disrupting the federal-state balance approved by Congress. View "NeoroRepair, Inc. v. Nath Law Grp." on Justia Law

ABB designs, produces, and sells exhaust-gas turbochargers and turbocharger parts, primarily for use in large, ocean-going vessels and in power plants. In 2012, ABB filed suit, accusing TurboUSA, Inc., and TurboNed Service B.V. of infringing two of ABB’s turbocharger-related patents. Claiming that the infringement was willful, ABB alleged that its former employee had improperly obtained and transferred to TurboUSA confidential information relating to ABB parts embodying its patented inventions. After filing its original complaint, ABB received information that, it alleges, suggested that Hans Franken, who worked for ABB until 1986 and is TurboNed’s former owner and TurboUSA’s current indirect owner, and his son Willem, who is TurboUSA’s current president, collaborated in the covert misappropriation of ABB’s trade secrets concerning the design, manufacture, servicing, and pricing of ABB’s turbochargers and parts, and added claims of misappropriation of trade secrets under Fla. Stat. 688.001–688.009 and of civil conspiracy to misappropriate trade secrets. Before discovery, the district court dismissed for failure to state a claim. The Federal Circuit reversed, concluding that the court relied on judgments about the merits that go beyond what is authorized at the complaint stage. View "ABB Turbo Sys. AG v. TurboUSA, Inc." on Justia Law