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

USM builds military boats. Working with VT Halter, USM designed a special-operations craft with a hull made out of composite materials for use in competing for the Navy's “MK V Special Operations Craft and Transporter System Contract.” With its 1993 bid, VT Halter submitted drawings stamped with a “Limited Rights Legend” to invoke Defense Federal Acquisition Regulations Supplement Section 252.227-7013(a)(15), which limits governmental use and disclosure of certain information. VT Halter won the contracts and delivered 24 Mark V special-operations craft. In 2004, the Navy awarded University of Maine a research grant to improve the ride and handling of the Mark V and provided detailed design drawings of the Mark V to contractors, stamped with the DFARS Limited Rights Legend, but did not obtain VT Halter’s consent for disclosure. The Navy awarded Maine Marine a contract to design and construct a prototype Mark V.1. USM sued under the Federal Tort Claims Act, 28 U.S.C. 1346(b), alleging misappropriation of trade secrets. The district court awarded damages, but the Fifth Circuit held that the matter lay exclusively within the jurisdiction of the Court of Federal Claims under the Tucker Act, 28 U.S.C. 1491(a)(1). The Fifth Circuit vacated the judgment and ordered transfer. The Federal Circuit affirmed. View "U.S. Marine, Inc. v. United States" on Justia Law

Synthes owns a patent, issued in 2006, directed to a system for repairing fractures in long bones, such as the femur, using a bone plate along the outside of the fractured bone, attached by anchors inserted through predrilled holes in the plate and then into the bone. The Patent and Trademark Office granted Smith & Nephew’s 2009 reexamination request and rejected all 55 claims of the patent as obvious based on prior art. The Board of Patent Appeals upheld the rejections of 31 of the claims, but reversed the rejections of 24. The Federal Circuit reversed, holding that Smith & Nephew met its burden of showing that the claims at issue would have been obvious. The patentability of the invention turns on the structure of the holes, not the special nature of the non-locking screws. The conical, partially threaded holes were well known in the art, as was the advantage of adding more of them to the head of a bone plate in place of unthreaded holes. The screws and the holes perform a conventional, expected function in securing the plate. View "Smith & Nephew, Inc. v. Rea" on Justia Law

Yonek served on active duty in the Navy from 1973 to 1977 and in 1991-1992. In 1991, Yonek aggravated a preexisting injury to his right shoulder, leaving the motion of his arm permanently limited. The VA regional office granted service connection for the injury, assigning a rating of 10 percent. Over the next 17 years, Yonek underwent at least 15 examinations, measuring his range of motion for flexion, elevation of the arm in a forward direction, and abduction, elevation of the arm outward from the side of the body. The results showed a range of motion of anywhere between 80 and 180 degrees in flexion and 60 and 180 degrees in abduction. In 1999, the RO increased the rating to 20 percent, concluding that motion was limited to a point at or below shoulder level but past the midpoint between the side and the shoulder (between 45 and 90 degrees). The Board of Veterans’ Appeals denied his appeal. The Veterans Court held that diagnostic code 5201 only allows a single disability rating for each injured shoulder even though Yonek’s shoulder manifests limitation of motion with respect to both flexion and abduction. The Federal Circuit affirmed, finding that the schedule in 38 C.F.R. 4.71a only allows a single disability rating. View "Yonek v. Shinseki" on Justia Law

Bartlett, who served on active duty from 1943 to 1963, submitted a claim in 2002 to increase his rating for service-connected Post Traumatic Stress Disorder. The Board of Veterans’ Appeals issued its first final decision in 2005, increasing Bartlett’s rating from 30% to 100% and remanded to the regional office. After that decision, but before a decision on remand, Bartlett entered into a fee agreement with attorney Cameron, calling for a contingent fee of 20 percent of any past due VA benefits awarded on the basis of his claims. The regional office then increased Bartlett’s disability to 100%, effective April 2002, when Bartlett filed his claim. Cameron sought fees for the past-due benefits award. The regional office denied entitlement to attorney fees, finding that, because the decision was the Board’s first final decision in this claim, 38 U.S.C. 5904(c)(1) precluded entitlement to fees based on benefits arising from the decision. Cameron also appealed the assigned effective date. The regional office assigned a new date, approximately 15 months earlier, granted Bartlett $45,995.93 in past-due benefit, and set aside attorney fees for Cameron: 20% of the additional award occasioned by the change in the effective date. The Board, the Veterans’ Court, and the Federal Circuit affirmed. View "Cameron v. Shinseki" on Justia Law

In 2003, Fresenius, a manufacturer of hemodialysis machines sought declaratory judgments of invalidity and non-infringement with respect to Baxter’s 434 patent, covering a dialysis machine with an integrated touch screen interface. Baxter counterclaimed for infringement. The Federal Circuit affirmed a determination that the claims at issue were not invalid, but remanded for reconsideration of an injunction and post-verdict damages. While the appeal was pending, the United States Patent and Trademark Office completed reexamination of the patent and determined that all asserted claims were invalid. The Federal Circuit affirmed. Meanwhile the district court entered judgment against Fresenius in the infringement proceedings. The Federal Circuit vacated; in light of the cancellation of the asserted claims and the fact that the infringement suit remains pending, Baxter no longer has a cause of action. View "Fresenius USA, Inc. v. Baxter Int'l, Inc." on Justia Law

For more than 20 years, members of the U.S. softwood lumber industry accused Canada of unfairly subsidizing production of softwood lumber, resulting in a substantial amount of litigation. The U.S. and Canada have entered into several agreements intended to resolve the dispute. Under a 2006 agreement, the Department of Commerce agreed to refund duties collected on Canadian lumber after May, 2002, approximately $5 billion. Canada agreed that for seven years after the 2006 effective date, it would impose export taxes on certain softwood lumber exported to the U.S. and distribute $1 billion to U.S. groups, half to be distributed to benefit members of the Coalition. Plaintiffs are U.S. softwood lumber producers who are not members of the Coalition. Plaintiffs sued, asserting that by agreeing to a distribution that did not include all members of the domestic softwood lumber industry, the U.S. Trade Representative acted outside of its authority; that the distribution violates equal protection; and that the USTR wrongfully delegated to the Coalition the function of determining how much each affected domestic producer should receive. On remand, the Trade Court dismissed three counts for failure to state a claim. The Federal Circuit affirmed, stating that plaintiffs failed to allege facts to make plausible any of its claims. View "Almond Bros. Lumber Co. v. United States" on Justia Law

Wyeth’s patents relate to the use of rapamycin for treatment and prevention of restenosis, the renarrowing of an artery. To open a blocked artery, a doctor guides a balloon catheter to the site of accumulated plaque and inflates the balloon to crush the plaque. As the balloon inflates it may cause injury to the arterial wall that leads to restenosis. The claims recite a method of treating or preventing “restenosis ... which comprises administering an antirestenosis effective amount of rapamycin.” In general, “rapamycin” may refer to a class of compounds; the parties agree that the specification discloses only one rapamycin species, sirolimus. In Wyeth’s infringement action, the district court adopted Wyeth’s proposed construction of “rapamycin,” but entered summary judgment, finding the patents invalid for nonenablement. The Federal Circuit affirmed, finding that the specification does not enable one of ordinary skill to practice the asserted claims without undue experimentation. View "Wyeth & Cordis Corp. v. Abbott Labs." on Justia Law

The Navy solicited bids for maritime husbanding support services to ships visiting ports in regions in the Western Pacific and Indian Ocean for separate negotiated procurements. Offerors were to submit separate proposals for each region in which they sought a contract. The solicitation identified factors to be used to evaluate acceptable offers. Offerors were instructed to submit past performance information. GDMA and MLS submitted proposals for the Region 1, South Asia, contract. GDMA appealed the award of the contract to MLS. The Court of Federal Claims granted judgment on the record in favor of the government and MLS. The Federal Circuit affirmed. The Court of Federal Claims found that even if GDMA should have gotten a “Satisfactory” rating instead of “Less than Satisfactory” for past performance GDMA still would have had an inferior past performance rating as compared to MLS, and still would have had negative past performance comments in the record. GDMA did not provide anything but conjecture that even with a “Satisfactory” rating it would have had a substantial chance of prevailing in the bid. GDMA failed to establish that the award to MLS was arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law. View "Glenn Def. Marine (Asia) PTE, Ltd. v. United States" on Justia Law

In a wireless system, devices communicate with fixed “base stations” according to “protocols,” which are standardized procedures that govern how data exchanged between devices is formatted, ordered, maintained, and transmitted. Effective wireless communication requires that the transmitting device and the receiving device follow the same protocol. Commil’s 395 patent covers a method of providing faster and more reliable handoffs of mobile devices from one base station to another as a mobile device moves throughout a network area. Cisco is a major supplier of WiFi access points and controllers. A jury found that Cisco directly and indirectly infringed specified claims of the 395 patent; that the specified claims were not invalid as indefinite, for lack of enablement, or as lacking adequate written description; and that Cisco was liable for $63,791,153 in damages and pre-judgment interest and costs. The Federal Circuit reversed in part, holding that the district court gave the jury a legally erroneous instruction concerning indirect infringement and that Cisco’s evidence of a good-faith belief of invalidity may negate the requisite intent for induced infringement. The district court did not err in granting a partial new trial. View "Commil USA, LLC v. Cisco Sys., Inc." on Justia Law

Shapiro, a U.S. affiliate of Aifudi, imports laminated woven sacks manufactured and exported by Aifudi in the People’s Republic of China (PRC). In 2008, the Department of Commerce found that those sacks were being sold in the U.S. at less than fair market value (19 U.S.C. 1673) and issued an antidumping-duty order. Aifudi participated, submitted verified information, and demonstrated that it was not subject to government control. Aifudi was assigned a “separate rate” of 64.28 percent, not the default PRC-wide rate. In a later review, conducted at Aifudi’s request, of the amount of the duty for a defined period, Commerce considered Aifudi’s eligibility for a company-specific rate for that period. Commerce published preliminary results, favorable to Aifudi. Aifudi immediately withdrew from the proceeding and removed its confidential information from the record. Commerce concluded that the record no longer contained enough verifiable information to prove that Aifudi was not subject to government control and assigned Aifudi the default PRC-wide rate for the review period. Shapiro appealed. The Court of International Trade upheld the decision. The Federal Circuit affirmed, concluding that Commerce’s decision to apply the PRC-wide rate to Aifudi was supported by substantial evidence and did not violate any law. View "AMS Assocs., Inc. v. United States" on Justia Law