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

Recentive Analytics, Inc. owns four patents related to the use of machine learning for generating network maps and schedules for television broadcasts and live events. The patents are divided into two groups: the "Machine Learning Training" patents and the "Network Map" patents. The Machine Learning Training patents focus on optimizing event schedules using machine learning models, while the Network Map patents focus on creating network maps for broadcasters using similar techniques. Recentive sued Fox Corp. and its affiliates for patent infringement.The United States District Court for the District of Delaware dismissed the case, ruling that the patents were directed to ineligible subject matter under 35 U.S.C. § 101. The court found that the patents were focused on the abstract idea of using generic machine learning techniques in a specific environment without any inventive concept. Recentive acknowledged that the patents did not claim the machine learning techniques themselves but rather their application to event scheduling and network map creation.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the district court's decision. The Federal Circuit held that the patents were directed to abstract ideas and did not contain an inventive concept that would transform them into patent-eligible applications. The court noted that the use of generic machine learning technology in a new environment, such as event scheduling or network map creation, does not make the patents eligible. The court also rejected Recentive's argument that the increased speed and efficiency of the methods rendered them patent-eligible. The Federal Circuit concluded that the district court did not err in denying leave to amend, as any amendment would have been futile. View "RECENTIVE ANALYTICS, INC. v. FOX CORP. " on Justia Law

Sage Products, LLC (“Sage”) challenged the final written decisions of the Patent Trial and Appeal Board (“Board”) which found all challenged claims of two of its patents unpatentable. The patents in question, U.S. Patent Nos. 10,398,642 and 10,688,067, relate to a sterilized chlorhexidine product in a package, such as an applicator filled with an antiseptic composition for disinfecting skin. The key claims at issue include claims 1-3, 5-8, 10-18, and 20 of the ’642 patent and claims 1-3, 5-8, and 10-19 of the ’067 patent.The Board relied on four key pieces of prior art in finding Sage’s claims unpatentable: the ChloraPrep Public Assessment Report (“PAR”), British Standard EN 556-1 (“BS EN-556-1”), U.S. Patent Application Publication 2015/0190535 (“Degala”), and U.S. Patent Publication No. 2014/0371695 (“Chiang”). The Board found that a skilled artisan would understand the PAR’s references to “sterile” to mean “sterilized” as used in the Sage patents. The Board determined that the PAR disclosed all elements of the challenged claims, including the sterilized chlorhexidine gluconate composition and the sterilized applicator.The United States Court of Appeals for the Federal Circuit reviewed the Board’s findings and affirmed the judgment. The court held that substantial evidence supported the Board’s findings that a skilled artisan would understand the PAR to describe a “sterilized” composition and product. The court also found that the Board correctly determined that the PAR disclosed the limitations of the dependent claims, including the “sterilized colorant” and the sterility assurance level (SAL) of 10-3 to 10-9. The court rejected Sage’s procedural arguments, finding no abuse of discretion in the Board’s reliance on expert testimony and other evidence to interpret the PAR. The court concluded that the Board’s decision was supported by substantial evidence and affirmed the Board’s finding of unpatentability. View "SAGE PRODUCTS, LLC v. STEWART " on Justia Law

Heritage Alliance offers voter guides under the names “iVoterGuide” and “iVoterGuide.com.” In January 2019, the American Policy Roundtable (APR) filed for registration of the marks “iVoters” and “iVoters.com.” Heritage opposed APR’s registration, claiming that APR’s marks would likely be confused with Heritage’s marks, for which Heritage claimed priority of use. The Trademark Trial and Appeal Board (Board) of the United States Patent and Trademark Office (PTO) found that Heritage’s prior-use marks were not protectable because they were highly descriptive and had not acquired distinctiveness, and dismissed the opposition.The Board determined that Heritage had begun using its iVoterGuide marks well before APR’s first use date. However, the Board found that APR effectively conceded likelihood of confusion. Despite this, the Board ruled that Heritage’s prior-use marks were not protectable as trademarks because they were highly descriptive and had not acquired distinctiveness. The Board found that the marks were highly descriptive as they clearly described the service offered, and that Heritage’s evidence of acquired distinctiveness was insufficient.The United States Court of Appeals for the Federal Circuit reviewed the Board’s decision. The court affirmed the Board’s findings that the iVoterGuide marks were highly descriptive and had not acquired distinctiveness. The court found that the Board’s determination was supported by substantial evidence, including the descriptive nature of the marks and the limited additional evidence of acquired distinctiveness. The court concluded that the Board’s decision to dismiss the opposition was correct and affirmed the dismissal. View "HERITAGE ALLIANCE v. AMERICAN POLICY ROUNDTABLE " on Justia Law

Azurity Pharmaceuticals, Inc. filed a lawsuit against Alkem Laboratories Ltd. under the Hatch-Waxman Act, alleging infringement of claims 5, 7, 8, and 9 of U.S. Patent No. 10,959,948. The patent pertains to non-sterile drinkable liquid formulations containing the antibiotic vancomycin. Alkem had submitted an Abbreviated New Drug Application (ANDA) for a product that Azurity claimed infringed on their patent.The United States District Court for the District of Delaware conducted a two-day bench trial and concluded that Alkem’s ANDA did not infringe any of the asserted claims of the ’948 patent. The court found that Azurity had disclaimed any presence of propylene glycol in the prosecution history of the ’948 patent. Since Alkem’s ANDA product contained propylene glycol, the court ruled in favor of Alkem. Azurity argued that a stipulation made during discovery should preclude Alkem’s disclaimer argument, but the district court found this interpretation unpersuasive.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the district court’s decision. The Federal Circuit agreed that Azurity had clearly and unmistakably disclaimed propylene glycol during the prosecution of the ’948 patent. The court also found that the stipulation regarding suitable flavoring agents did not preclude the application of the disclaimer. Consequently, the presence of propylene glycol in Alkem’s ANDA product established non-infringement of the ’948 patent claims. The Federal Circuit affirmed the district court’s judgment, holding that Alkem’s ANDA product did not infringe the asserted claims of the ’948 patent. View "AZURITY PHARMACEUTICALS, INC. v. ALKEM LABORATORIES LTD. " on Justia Law

In 2008, the plaintiff, ams-OSRAM USA Inc. (formerly Texas Advanced Optoelectronic Solutions, Inc. or TAOS), sued Renesas Electronics America, Inc. (formerly Intersil Corporation) in the Eastern District of Texas. TAOS alleged patent infringement and state-law claims of trade secret misappropriation and breach of a confidentiality agreement related to ambient-light sensors. The patent claim is no longer at issue. TAOS claimed that Intersil used confidential information disclosed during merger discussions to develop competing products.The district court entered a judgment in 2015 based on a jury verdict, awarding TAOS damages for trade secret misappropriation but not for breach of contract, deeming the latter duplicative. In 2018, the Federal Circuit affirmed Intersil’s liability for trade secret misappropriation on a narrower basis, vacated the monetary award, and remanded for further proceedings. The court also vacated the judgment denying contract damages as duplicative.On remand, the district court held additional proceedings, including a new jury trial. The court awarded TAOS $8,546,000 in disgorged profits for trade secret misappropriation, $17,092,000 in exemplary damages, and reasonable royalties for breach of contract totaling $6,637,693. The court also awarded prejudgment interest and attorneys’ fees. Both parties appealed.The United States Court of Appeals for the Federal Circuit affirmed the district court’s findings on the trade secret and contract claims, including the disgorgement and exemplary damages awards. However, the court reversed the finding that the trade secret became properly accessible in January 2006, determining the correct date to be February 28, 2005. The court affirmed the 26-month head-start period and the inclusion of profits from sales to Apple for the iPod Touch in the disgorgement award. The court vacated the prejudgment interest awards and remanded for further consideration of the appropriate accrual dates for interest on sales occurring after the complaint was filed. View "AMS-OSRAM USA INC. v. RENESAS ELECTRONICS AMERICA, INC. " on Justia Law

Donald Forest submitted a patent application for an "Apparatus for Selecting from a Touch Screen" to the United States Patent and Trademark Office (USPTO) on December 27, 2016. The Patent Trial and Appeal Board (PTAB) affirmed in part the examiner’s rejection of certain claims under 35 U.S.C. § 103 and nonstatutory double patenting. Forest appealed this decision.The PTAB reviewed the case and upheld the examiner's rejection of certain claims in Forest's patent application. Forest did not dispute that his application was filed more than a year after the expiration date of any resulting patent, which would have been in 2015. The USPTO raised a jurisdictional issue, arguing that Forest had no personal stake in the appeal because he could not be granted enforceable rights by a patent with zero term. Forest argued that he would still acquire "provisional rights" under 35 U.S.C. § 154(d) if the USPTO issued him an expired patent.The United States Court of Appeals for the Federal Circuit reviewed the case and disagreed with Forest's interpretation of the statute. The court held that provisional rights are granted only when a patent would issue with exclusionary rights, meaning before its expiration date. Since Forest's patent would issue after its expiration date, he would not receive any enforceable rights. Consequently, the court dismissed the appeal. View "In Re FOREST " on Justia Law

The case involves an appeal by the named inventors of U.S. Patent Application No. 11/005,678, which is directed to logistics systems and methods for the transportation of goods. The application was rejected by an Examiner under pre-AIA 35 U.S.C. § 102(e) as anticipated by a published patent application (Lettich) and under 35 U.S.C. § 103 as obvious over Lettich in view of another reference (Rojek). The inventors appealed the rejection to the U.S. Patent Trial and Appeal Board (Board).The Board initially reversed the Examiner's rejections but later granted the Examiner's request for rehearing, determining that Lettich did qualify as prior art under pre-AIA § 102(e). The Board then sustained the Examiner's anticipation and obviousness rejections. The inventors appealed the Board's decision to the United States Court of Appeals for the Federal Circuit.The Federal Circuit reviewed the case and found that the Board conducted an incomplete analysis in determining whether Lettich qualifies as prior art under § 102(e). Specifically, the court held that it is not sufficient to show that a single claim in the prior art application is supported by the provisional application; the specific portions of the application relied on in the rejection must also be supported by the provisional application. The court vacated the Board's decision and remanded the case for further analysis to determine whether the Lettich Provisional Application provides written description support for the specific disclosures in Lettich that the Examiner identified and relied on in the prior art rejections. View "In Re RIGGS " on Justia Law

Wash World Inc. sought to reverse a final judgment that it infringed Belanger Inc.'s 8,602,041 patent. Wash World contended that the district court erred in not construing three claim terms and that Belanger could not prove infringement under the correct constructions. Wash World also disputed the jury's decision to award Belanger $9.8 million in lost profits damages and requested a remittitur of approximately $2.6 million. Belanger argued that Wash World forfeited these issues by not preserving them in the district court.The United States District Court for the Eastern District of Wisconsin ruled that no construction was needed for the disputed terms and denied Wash World's motion for summary judgment of noninfringement. The jury found that Wash World’s Razor EDGE car wash system infringed Belanger’s patent and awarded $9.8 million in lost profits and $260,000 in reasonable royalties. The district court denied Wash World’s post-trial motions for judgment as a matter of law, a new trial, or remittitur.The United States Court of Appeals for the Federal Circuit reviewed the case. It found that Wash World forfeited its arguments regarding the constructions of "outer cushioning sleeve" and "predefined wash area" by not presenting them adequately in the district court. However, the court agreed with the district court's construction of "dependingly mounted" and affirmed the judgment of infringement.On the issue of damages, the Federal Circuit concluded that the jury's award improperly included $2,577,848 for convoyed sales, which lacked sufficient evidence of a functional relationship with the patented product. The court vacated the damages portion of the judgment and remanded with instructions to remit the damages by $2,577,848, resulting in a total award of $7,482,152 in favor of Belanger. View "WASH WORLD INC. v. BELANGER INC. " on Justia Law

Actavis Laboratories FL, Inc. ("Actavis") filed Abbreviated New Drug Applications (ANDAs) with the FDA to market generic versions of branded drugs. The manufacturers of these branded drugs, who hold New Drug Applications (NDAs) and patents, sued Actavis for patent infringement under the Hatch-Waxman Act. This Act considers the submission of an ANDA with a Paragraph IV certification as an act of patent infringement if it seeks FDA approval before the expiration of the patents. Actavis incurred significant litigation expenses defending these suits and deducted these expenses as ordinary business expenses on its tax returns.The IRS disagreed, treating these expenses as capital expenditures related to the acquisition of an intangible asset (FDA approval) and issued Notices of Deficiency. Actavis paid the assessed taxes and sued in the Court of Federal Claims for a refund, arguing that the litigation expenses were deductible. The Court of Federal Claims ruled in favor of Actavis, holding that the litigation expenses were deductible as ordinary business expenses.The United States Court of Appeals for the Federal Circuit reviewed the case. The court considered whether the litigation expenses were ordinary business expenses or capital expenditures. Applying both the "origin of the claim" test and the IRS regulation under C.F.R. § 1.263, the court concluded that the expenses were deductible. The court found that the origin of the claim was the patent infringement suit, not the pursuit of FDA approval, and that the litigation did not facilitate the acquisition of the FDA-approved ANDA. Therefore, the court affirmed the decision of the Court of Federal Claims, allowing Actavis to deduct the litigation expenses as ordinary business expenses. View "ACTAVIS LABORATORIES FL, INC. v. US " on Justia Law

Maquet Cardiovascular LLC owns U.S. Patent No. 10,238,783, which relates to an intravascular blood pump system designed to improve the deployment of blood pumps within a patient's circulatory system. The patent aims to address the difficulties associated with guiding blood pumps to the appropriate position using supplemental guiding mechanisms. Instead, it employs integrated guide mechanisms located on the device itself. Maquet sued Abiomed Inc. and its affiliates for infringing claims of the '783 patent and U.S. Patent No. 9,789,238.The United States District Court for the District of Massachusetts construed certain claim terms of the '783 patent, including "guide mechanism comprising a lumen" and "guide wire" terms. The court included negative limitations in its constructions based on the prosecution history of related patents. The parties stipulated to non-infringement based on these constructions, leading the district court to enter a final judgment of non-infringement for both patents.The United States Court of Appeals for the Federal Circuit reviewed the district court's claim constructions. The Federal Circuit found that the district court erred in applying prosecution disclaimer to the "guide mechanism comprising a lumen" term in claim 1 of the '783 patent, as the prosecution history of the related '238 patent was not relevant due to differences in claim language. The court also found that the district court erred in construing the "guide wire" terms in claims 1 and 24 of the '783 patent, as Maquet did not make a clear and unmistakable disavowal of claim scope during the prosecution of the '728 patent.The Federal Circuit vacated the district court's judgment of non-infringement as to the '783 patent and remanded for further proceedings. The judgment of non-infringement as to the '238 patent was left undisturbed. View "MAQUET CARDIOVASCULAR LLC v. ABIOMED INC. " on Justia Law