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

Leader, a software company, owns the 761 patent, which discloses a system that manages data that may be accessed and created by multiple users over a network. The patent improves upon conventional systems by associating data "with an individual, group of individuals, and topical content, and not simply with a folder, as in traditional systems." The system achieves this improvement by having users collaborate and communicate through boards that are accessible through an Internet browser and appear as a webpage. To facilitate those user-facing functions, the data management system employs metadata, tagged to data being created, to capture the association between the data and its context. As users create and change their contexts, the data (files) and applications automatically follow. Prior to filing the 761 application in 2003, Leader developed Leader2Leader.® Facebook claimed that the earlier product, publicly used and on sale prior to December 10, 2002 fell within the scope of the asserted claims of the 761 patent, rendering them invalid under 35 U.S.C. 102(b). The district court ruled in favor of Facebook. The Federal Circuit affirmed, finding the verdict supported by substantial evidence. View "Leader Tech., Inc. v. Facebook, Inc." on Justia Law

The patent, titled "Automated Exchange for Trading Derivative Securities," discloses an invention directed to an automated exchange for trading options contracts that allocates trades among market professionals and that assures liquidity. The patent distinguishes an automated exchange from the traditional, floor-based "open-outcry" system, under which trading takes place through oral communications between market professionals at a central location in open view of other market professionals. The patent purports that it can "provide an automated system for matching previously entered orders and quotations with incoming orders and quotations on an exchange for securities, which will improve liquidity and assure the fair handling of orders." The district court held that the patent is not infringed by the trading system of Chicago Board Options Exchange. The Federal Circuit reversed in part. The district court erred in construing "system memory means," "matching," and "automated exchange." View "Chicago Bd. Options Exch., Inc. v. Int' Sec. Exch., L.L.C." on Justia Law

The FDA last approved a typical antipsychotic in 1975. Despite drawbacks, typical antipsychotics are still used to treat schizophrenia. In the early 1960s, researchers discovered clozapine, the first "atypical" antipsychotic, useful for treating both positive and negative symptoms. Clozapine had serious potential side effects and was withdrawn from clinical trials. The FDA approved no new antipsychotic drugs between 1976 and 1989, finally approving clozapine in 1990, only for certain patients, subject to blood testing. The FDA approved risperidone, an atypical antipsychotic, in 1994, and, since then, has approved seven other atypical antipsychotics, including aripiprazole. These are as effective as typical antipsychotics for treating positive symptoms, while also treating negative symptoms and causing fewer side effects than clozapine. Every approved atypical antipsychotic has chemical structure related either to clozapine or risperidone, except aripiprazole, the active ingredient in "Abilify," marketed by plaintiff for treatment of schizophrenia, bipolar disorder, irritability associated with pediatric autistic disorder, and as add-on treatment for depression. Anticipating expiration of the patent, companies submitted FDA Abbreviated New Drug Applications for approval of generic aripiprazole. The district court ruled in favor of plaintiff on patent infringement, 35 U.S.C. 103. The Federal Circuit affirmed, rejecting claims of obviousness and of nonstatutory double patenting. View "Otsuka Pharm. Co., Ltd. v. Sandoz, Inc." on Justia Law

Plaintiff worked as an airplane mechanic, in the Navy and for several airlines. In the 1960s, he devised a tool that could reach deep inside airplane engines without disassembling external components. In 2000, a patent issued to plaintiff for the extended reach pliers, based on an application written and prosecuted by defendant. Danaher, a customer of plaintiff's business, subsequently developed its own version of the ERP and began competing against the device. Plaintiff sued for malpractice, alleging that the patent was so negligently drafted that it offered no meaningful protection against infringers. Its expert proposed alternate claim language that allegedly could have been enforced against Danaher. The district court granted defendant summary judgment, based on the element of causation. The Federal Circuit affirmed. Plaintiff did not raise a genuine dispute of material fact as to the patentability of its alternate claims. Plaintiff failed to raise a single material fact in dispute as to the nonobviousness of the proposed alternate claims. View "Minkin v. Gibbons, P.C." on Justia Law

In 1999 Beasley filed a patent application for personalized postage stamps. In 2001 the PTO issued notice of allowance. Beasley then entered into a licensing agreement with Avery, specifying that Avery would assume responsibility for prosecution of the patent application and would pay patent prosecution expenses. Beasley appointed Renner to prosecute his application. A Renner attorney filed a supplemental information disclosure statement concerning prior art references. The PTO issued a second notice of allowance. Beasley transferred ownership USPPS. USPPS and Avery entered into an agreement. Later, the PTO vacated its notice of allowance and issued final rejections. Beasley and USPPS alleged that Avery mismanaged the application. Beasley’s suit for was dismissed for lack of standing. USPPS filed suit, alleging breach of fiduciary duty and fraud, based on Avery’s alleged representation that Beasley was the client of Renner. The district court granted summary judgment for defendants. The Fifth Circuit transferred to the Federal Circuit, finding that jurisdiction was based, in part, on 28 U.S.C. 1338 and that the alleged malpractice involves a question of patentability, even if no patent actually issued. The Federal Circuit affirmed, holding that it had jurisdiction and that the complaint was untimely. View "USPPS, Ltd. v. Avery Dennison Corp." on Justia Law

BD applied to register with the U.S. Patent and Trademark Office a mark for "closures for medical collection tubes," asserting acquired distinctiveness based on five years of substantially exclusive, continuous use in commerce. The examining attorney refused registration under 15 U.S.C. 1052(e)(5) finding that the cap design was functional and that even if non-functional, the cap design was a non-distinctive configuration of the goods under 15 U.S.C. 1051-1052 and 1127. She found BD's declaration insufficient to show acquired distinctiveness under 15 U.S.C. 1052(f). The Trademark Trial and Appeal Board and the Federal Circuit affirmed on the basis that the cap is functional. View "In re Becton Dickinson & Co." on Justia Law

Plaintiff's 561 and 512 pharmaceutical patents for "Taxotere" are related to administration of the chemotherapy cancer drug docetaxel (a successor to the cancer drug paclitaxel, covered by a now-expired patent). To stabilize the perfusion and delay precipitation, the cancer drugs are mixed with additives like surfactants and ethanol. Prior art used the surfactant Cremophor, but it was known to trigger serious allergic reactions. The 561 and 512 patents relate to using surfactants other than Cremophor and decreasing the amount of ethanol to reduce alcohol intoxication and anaphylactic effects in patients. After defendants applied for FDA approval to market generic versions of Taxotere, plaintiff claimed infringement, 35 U.S.C. 271(e). The district court found certain claims invalid for obviousness and that the patents were unenforceable for inequitable conduct. The Federal Circuit affirmed, concluding that withheld references to prior art were material View "Aventis Pharma S.A. v. Hospira, Inc." on Justia Law

The Trademark Trial and Appeal Board found that a service mark, NATIONAL CHAMBER, submitted by the Chamber of Commerce of the USA, was correctly refused registration for being merely descriptive under 15 U.S.C. 1052(e)(1). The Federal Circuit affirmed, finding the decision supported by substantial evidence. View "In re: Chamber of Commerce of the United States of America" on Justia Law

The patent involves screening devices used in the pulp and paper industry. According to the specification of the asserted patent, a persistent problem in the screening process is clogging of the openings in the screen resulting in reduced efficiency. The patent purports to include specially-designed screening devices that offer substantially increased efficiency and flow capacity. Submission for reissue in 2003 was initially rejected as anticipated by prior art 35 U.S.C. 102 (b). After the examiner withdrew the rejection, the patent-holder filed suit for infringement. The district court entered summary judgment of noninfringement and lack of willfulness. The Federal Circuit affirmed on willfulness, but reversed with respect to infringement, finding that the court erred in its construction of the term "perforated."View "Advanced Fiber Tech. Trust. v. J&L Fiber Serv., Inc." on Justia Law

In 1996, RG, exclusive licensee of a German patent and corresponding patents in the U.S., Europe, and Japan relating to genetic identification, entered into a license agreement with Promega, granting Promega certain licenses. The agreement included a clause, providing that “all controversies or disputes arising out of or relating to this Agreement, or relating to the breach thereof, shall be resolved by arbitration” and prohibited assignment without consent. Assignments were approved in 2001 and 2003; a subsequent assignment from IP to LT was not approved. In 2008 LT believed that Promega was paying less than required royalties. Negotiations failed and LT demanded arbitration. Promega sought a declaratory judgment of non-arbitrability, alleging infringement of five patents and contenting that rights under the 1996 agreement had never been assigned to LT. IP then moved to compel arbitration. The district court ordered arbitration, finding that IP was the assignee, remained in existence, and that it was irrelevant that Promega alleged that IP was merely a puppet of LT. The Federal Circuit affirmed.View "Promega Corp. v. Life Tech. Corp." on Justia Law