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

. Until 2008, Lehman Brothers, a large investment bank, owned federal trademark registrations for the standard character mark LEHMAN BROTHERS. Lehman Brothers filed for bankruptcy in 2008 and sold several of its businesses and other assets to Barclays for $1.5 billion, assigning all of its LEHMAN BROTHERS trademarks and accompanying goodwill. Barclays granted Lehman Brothers a worldwide, non-exclusive license to use the LEHMAN BROTHERS trademarks in connection with continuing businesses and operations. The term of the license was two years for use in connection with investment banking and capital markets businesses and perpetual for use in connection with other operations. Barclays allowed its LEHMAN BROTHERS trademark registrations to expire. In 2013, Tiger Lily, which has no affiliation to Lehman Brothers or Barclays, sought registration of the mark LEHMAN BROTHERS for beer and spirits. A few months later, Barclays applied to register LEHMAN BROTHERS for use in connection with financial services. In 2014, Tiger Lily applied for registration of the LEHMAN BROTHERS mark for bar services and restaurant services. Barclays and Tiger Lily filed Notices of Opposition.The Federal Circuit affirmed the Trademark Trial and Appeal Board in sustaining Barclay’s oppositions against Tiger Lily’s applications and in dismissing Tiger Lily’s opposition to Barclays’ application, noting that Lehman Brothers and Barclays have continued to use the LEHMAN BROTHERS mark since 2008. View "Tiger Lily Ventures Ltd. v. Barclays Capital Inc." on Justia Law

Arthrex sued S&N, alleging infringement. S&N sought inter partes review (IPR). The Patent Trial and Appeal Board found that prior art anticipated several claims. Arthrex challenged the decision on the merits and argued that the Board lacked constitutional authority to issue the final decision because its Administrative Patent Judges (APJs) were not nominated by the President and confirmed by the Senate, as the Appointments Clause requires for principal officers.The Federal Circuit severed the statutory limitations on the removal of APJs and remanded for rehearing by a new panel. The Supreme Court vacated and remanded, finding that the appropriate remedy was to exempt the Director from 35 U.S.C. 6(c), which precludes anyone but the Board from granting rehearing of a Board decision, and remand to the Acting Director for a decision on whether to rehear the case. The offices of the Director and Deputy Director were vacant. Agency Organization Order 45-1 states, “If both the [Director] and the Deputy [Director] positions are vacant, the Commissioner for Patents . . . will perform the non-exclusive functions and duties of the [Director].” The Commissioner denied rehearing and ordered that the Board’s decision “is the final decision of the agency.”The Federal Circuit affirmed, rejecting arguments that the Commissioner violated the Appointments Clause, the Federal Vacancies Reform Act, 5 U.S.C. 3345, or the Constitution’s separation of powers in denying Arthrex’s rehearing request. The court agreed that prior art anticipated the challenged claims. View "Smith & Nephew, Inc. v. Arthrex, Inc." on Justia Law

Kaufman’s now-expired patent describes and claims methods for using a computer to automatically generate an end-user interface for working with the data in a relational database. Kaufman sued Microsoft, asserting infringement by Microsoft’s making and selling of its Dynamic Data product. A jury found Microsoft liable and awarded damages of $7 million. The district court upheld the verdict and denied Kaufman’s motion to amend the judgment to include prejudgment interest. The Federal Circuit affirmed the denial of Microsoft’s post-judgment motions but reversed the denial of prejudgment interest. Microsoft failed to preserve its challenge to claim construction with respect to the phrase “automatically generating,” and failed to establish that the district court erred in its claim construction or that the jury’s verdict was not supported by substantial evidence. View "Kaufman v. Microsoft Corp.," on Justia Law

USAA, a reciprocal inter-insurance exchange organized under Texas law with its principal place of business in San Antonio, owns the four patents, which address the use of a mobile device to capture an image of a bank check and transmit it for deposit. Mitek filed suit in the Northern District of California, seeking a declaratory judgment (28 U.S.C. 2201(a)), that Mitek and its customers have not infringed, either directly or indirectly, any valid and enforceable claim of USAA’s patents. USAA moved for dismissal of the complaint, arguing that there was no case or controversy between USAA and Mitek and that the court should exercise discretion not to hear Mitek’s claim. In the alternative, USAA requested the transfer of the action to the Eastern District of Texas under 28 U.S.C. 1404. The California court, without ruling on the dismissal motion, ordered the case transferred to Texas.The Texas court dismissed for want of a case or controversy, stating that, even if jurisdiction existed, it would exercise its discretion to decline to entertain the action. The Federal Circuit vacated the Texas court’s dismissal and remanded, affirming the California court’s transfer order. To make the “case or controversy” determination, the district court’s primary task will be to ascertain the alleged role of the Mitek technology in the banks’ applications and the alleged role that the Mitek technology plays in infringement claims. View "Mitek Systems, Inc. v. United Services Automobile Association" on Justia Law

The patents relate to software-based architecture for supporting cooperative task completion by flexible, dynamic configurations of autonomous electronic agents. Both patents list Martin and Cheyer as inventors. Google petitioned for inter partes review of various claims, relying primarily on an academic paper entitled “Building Distributed Software Systems with the Open Agent Architecture” to argue that the claims would have been obvious. Google contended that the paper was prior art as work “by others” because it described the work of an inventive entity (Martin, Cheyer, and Moran) differently from the inventive entity of the challenged patents. The Board concluded that Google had not provided sufficient support to explain how Moran’s contribution established him as an inventive entity.The Federal Circuit vacated. The Board failed to resolve fundamental testimonial conflicts in concluding that the relied-upon reference was not prior art. The issue was not the lack of corroboration for Moran’s testimony, but rather whether his testimony should be credited over Cheyer and Martin’s conflicting testimony during the IPR proceedings. View "Google, LLC v. IPA Technologies Inc." on Justia Law

Bennett sued Atlanta Gas, a Georgia distributor of natural gas, for infringement of Bennett's patent, directed to an anti-icing device for a gas pressure regulator. Atlanta Gas was served with the complaint on July 18, 2012. That litigation was dismissed without prejudice for lack of personal jurisdiction. On July 18, 2013, Atlanta Gas filed an inter partes review (IPR) petition concerning the patent.The Patent Trial and Appeal Board rejected Bennett’s argument that Atlanta Gas was time-barred from petitioning for IPR under 35 U.S.C. 315(b) and determined that the challenged claims were unpatentable over the prior art. The Federal Circuit held that Atlanta Gas should have been barred, vacated the unpatentability determination, and remanded with directions to dismiss the IPR and to further consider a sanctions order. Before the Board acted, the Supreme Court held that time-bar determinations were unreviewable, "Thryv," (2020). On remand, the Federal Circuit affirmed the unpatentability determination on the merits and again remanded for the Board to reconsider and finalize its sanctions order. The Board then terminated the proceeding due in part to reconsideration of its decision on the time bar. Atlanta Gas appealed.The Federal Circuit dismissed, holding that it lacked jurisdiction to review the Board’s decision to vacate its institution decision, a decision made based in part on the Board's evaluation of the time bar and changed Patent and Trademark Office policy. View "Atlanta Gas Light Co. v. Bennett Regulator Guards, Inc" on Justia Law

Sound View alleged that Hulu infringed claim 16 of its patent, titled “Method for Streaming Multimedia Information over Public Networks” by its use of (third party) edge servers, which sit between a central Hulu content server and the video-playing devices of customers. The district court construed the patent’s “downloading/retrieving limitation” not to cover a process in which downloading occurs from one buffer in a helper server and the (concurrent) retrieving places what is retrieved in another buffer in that server. The court construed the limitation to require that the same buffer in the helper server host both the portion sent to the client and a remaining portion retrieved concurrently from the content server or other helper server. Hulu argued that, in the edge servers of its content delivery networks, no single buffer hosts both the video portion downloaded to the client and the retrieved additional portion. Sound View argued that there remained a factual dispute about whether “caches” in the edge servers met the concurrency limitation as construed.The district court held that a “cache” could not be the “buffer” that its construction of the downloading/retrieving limitation required. The Federal Circuit vacated the summary judgment of non-infringement, affirming the construction of the downloading/retrieving limitation but rejecting the determination that “buffer” cannot cover “a cache.” View "Sound View Innovations, LLC v. Hulu, LLC" on Justia Law

Gasoline producers blend butane into gasoline before selling it because butane makes gasoline more volatile, helping vehicles start more readily in colder temperatures, and butane is cheaper than gasoline. Sunoco’s patented technology seeks to maximize butane content while complying with EPA regulations concerning volatility, which vary depending on season and location. Sunoco’s patents “describe a system and method for blending butane with the gasoline at a point close to the end of the distribution process: immediately before being distributed to the tanker trucks that take gasoline to consumer gas stations.” Producers can “blend the maximum allowable butane into each batch based on where the truck is going and what month it is.” Sunoco successfully sued Venture, alleging infringement.The Federal Circuit reversed a holding that the experimental-use doctrine insulated a subset of asserted patent claims from the on-sale bar, vacated the infringement judgment as to those claims, and remanded for the district court to analyze the second prong of the on-sale bar. The court also vacated the infringement judgment with respect to patent claims that it affirmed are invalid in a separate appeal. The court adopted the district court’s claim constructions and affirmed its infringement judgment regarding two patent claims; vacated a treble-damages award; and affirmed the denial of lost-profits damages and $2 million reasonable royalty. View "Sunoco Partners Marketing & Terminals L.P. v. U.S. Venture, Inc." on Justia Law

Intuitive’s 447 patent relates to robotic surgery systems and describes an improvement over Intuitive’s earlier robotic surgery systems, which allow surgeons to remotely manipulate surgical tools using a controller. The invention embodied by the patent attempts to address difficulties in swapping tools via a robotic system with a servo-pulley mechanism, which allows clinicians to more quickly swap out surgical instruments and thereby reduce surgery time, improve safety, and increase the reliability of the system. Following inter partes review of all five claims of the patent, the Patent Trial and Appeal Board determined that Auris failed to demonstrate that the claims were unpatentable as obvious. Although the Board agreed with Auris that its combination of two references disclosed every limitation of the challenged claims, the Board concluded that a skilled artisan would not have been motivated to combine those references. The Federal Circuit vacated. The Board impermissibly rested its motivation-to-combine finding on evidence of general skepticism about the field of invention. The Board recited Auris’s evidence that combining prior art would reduce the number of assistants but also Intuitive’s evidence that such a combination would come at the expense of precision required for surgery. View "Auris Health, Inc. v. Intuitive Surgical Operations, Inc." on Justia Law

Zipit, a Delaware corporation with a principal place of business in South Carolina, and with all of its employees in South Carolina, is the assignee of the patents-in-suit, which are generally directed to wireless instant messaging devices that use Wi-Fi. In 2013, Zipit contacted Apple in California. For three years, the parties exchanged correspondence and met in person at Apple’s Cupertino headquarters. Zipit filed a patent infringement action against Apple in Georgia but later dismissed the case without prejudice.Apple sought a declaratory judgment of noninfringement in the Northern District of California. The district court dismissed, holding that it lacked specific personal jurisdiction over Zipit (general jurisdiction was not asserted). The court concluded that Apple had established the requisite minimum contacts but that “the exercise of personal jurisdiction . . . would be unconstitutional when ‘[a]ll of the contacts were for the purpose of warning against infringement or negotiating license agreements, and [the defendant] lacked a binding obligation in the forum.’” The Federal Circuit reversed, Zipit is subject to specific personal jurisdiction in the Northern District of California for purposes of Apple’s declaratory judgment action. Zipit has not presented a compelling case that the relevant factors in the aggregate would render the exercise of jurisdiction unreasonable. View "Apple, Inc. v. Zipit Wireless, Inc." on Justia Law