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

Forrester and Wheelabrator are competitors in the market for phosphate-based treatment systems for stabilizing heavy metals in waste such as incinerator ash, to prevent heavy metals from leaching into drinking water sources. Wheelabrator calls its treatment system “WES-PHix” and has obtained several related U.S. patents. Forrester calls its system “FESI-BOND” and has also obtained patents. In 2001, Wheelabrator entered into a license agreement that granted Bio Max the exclusive right to use and sublicense WES-PHix® in Taiwan. Bio Max sublicensed WESPHix to Kobin, which used WES-PHix at its Taipei plant. Forrester learned that Kobin was dissatisfied with WES-PHix due to the odor it generated. Forrester developed a variation on its system, addressing the odor problem, and persuaded Kobin to license FESI-BOND for use at its plant. Wheelabrator sent a letter asserting that Kobin was in breach of its WES-PHix sublicense agreement and threatening legal action. Kobin stopped purchasing from Forrester and entered into a new sublicense with Wheelabrator. Forrester filed suit alleging violation of the New Hampshire Consumer Protection Act; tortious interference with a contractual relationship; tortious interference with Forrester’s prospective advantage; and trade secret misappropriation. The district court denied remand and granted summary judgment for Wheelabrator. The Federal Circuit vacated, with instructions to remand to state court. View "Forrester Envt.l Servs., Inc. v. Wheelabrator Techs.,Inc." on Justia Law

In 1989, the Department of Commerce determined that U.S domestic industry for ball bearings was being materially injured by sales of ball bearings imported from France, Germany, Italy, Japan, Romania, Singapore, Sweden, Thailand, and the U.K. at less than fair value and published an anti-dumping order. Following four remands, the Court of International Trade’s affirmed the Commission’s decisions, issued under protest, to revoke the anti-dumping orders on ball bearings from Japan and the U.K. The Federal Circuit reversed in part and vacated in part, finding that the Commission’s second remand determination was supported substantial evidence and that the Court of International Trade erred in repeatedly remanding the case. View "NSK Corp. v.. FAG Italia, S.P.A." on Justia Law

Motiva’s patent, issued in 2007 and titled “Human Movement Measurement System,” generally relates to a “system for ... testing and training a user to manipulate the position of ... transponders while being guided by interactive and sensory feedback . . . for the purpose of functional movement assessment for exercise and physical rehabilitation.” Motiva accused Nintendo’s Wii video game system of infringement. The district court stayed the case pending patent reexamination. Motiva then filed a complaint with the International Trade Commission, asserting that the Wii infringed the patent, so that its importation violated the Tariff Act. After the Commission began its investigation, Nintendo moved for summary determination under Section 337, which prohibits importation of articles that infringe a valid and enforceable U.S. patent if “an industry in the United States, relating to the articles protected by the patent ... exists or is in the process of being established.” 19 U.S.C. 1337(a)(2). According to Nintendo, there were no commercialized products incorporating Motiva’s patented technology, and Motiva’s activity aimed at developing a domestic industry consisted solely of the litigation. The administrative law judge agreed. The Federal Circuit affirmed. View "Motiva, LLC v. Int'l Trade Comm'n" on Justia Law

Alice Corporation owns three patents covering a computerized trading platform for exchanging obligations in which a trusted third party settles obligations between a first and second party so as to eliminate “settlement risk.” Settlement risk is the risk that only one party’s obligation will be paid, leaving the other party without its principal. The trusted third party eliminates this risk by either exchanging both parties’ obligations or exchanging neither obligation. CLS sought a declaration of invalidity; Alice counterclaimed infringement. The district court ruled in favor of CLS, holding that each asserted claim of the four patents is invalid for failure to claim patent eligible subject matter. In 2012, the Federal Circuit reversed, finding that the system, method, and media claims were directed to practical applications of invention falling within the categories of patent eligible subject matter defined by 35 U.S.C. 101. Upon consideration en banc, a majority of the court affirmed the district court’s holding that the asserted system, method and computer-readable media claims are not directed to eligible subject matter under 35 U.S.C. 101. View "CLS Bank, Int'l v Alice Corp. Pty. Ltd." on Justia Law

In 1985, Behringwerke filed a U.S. patent application directed to the use of DNA sequences (enhancers) identified in human cytomegalovirus. An enhancer, when introduced into a cell that produces a drug, can enable the cell to produce the drug at a much higher rate. In 1992, Behringwerke and Genentech entered into a licensing agreement related to enhancers that matured into the patents-in-suit; for fixed annual payments, Genentech could practice the patents for research purposes. Genentech was to pay a royalty on sales of commercially marketable goods incorporating a “Licensed Product.” The Agreement, governed by German law, required that disputes be settled by arbitration. Behringwerke sold its pharmaceutical business to Sanofi, but the Agreement and patent rights stayed with Hoechst; both are German entities. In 2008, Sanofi sued Genentech for infringement based on sales of the allegedly infringing drugs Rituxan and Avastin, which Genentech had not identified as licensed products. Hoechst demanded arbitration before a European arbitrator. The district court found no infringement. The Federal Circuit affirmed. Arbitration continued. On remand, Genentech sought to enjoin Sanofi from continuing the foreign arbitration. The district court denied the motion, finding that Hoechst is a party to the arbitration, but not a party to the litigation and that an injunction would frustrate policies favoring enforcement of forum selection clauses, and would not be in the interest of international comity. The arbitrator determined that German substantive law, not U.S. patent law, would be used, that a drug could be a licensed article even though it did not contain the patented enhancers, if those enhancers were used in its manufacture, and that Genentech was liable for damages. The Federal Circuit affirmed that Genentech was not entitled to an injunction. View "Sanofi-Aventis Deutschland, GMBH v. Genentech, Inc." on Justia Law

General Dynamics entered into fixed-price contracts, fixed-price incentive contracts, cost-plus-fixed fee contracts, cost-plus-award-fee contracts, and time-and-materials contracts with the Department of Defense. Many require compliance with Cost Accounting Standards (CAS), which provide uniformity in how contractors measure, assign, and allocate costs to government contracts, including guidance for determining and measuring the components of pension cost, CAS 412-20(a). The Defense Contract Management Agency notified General Dynamics in 2006 that its use of a blended rate using partial-year valuations did not comply with CAS 412. The Contracting Officer issued notice of noncompliance in 2007. General Dynamics then submitted a compliant retirement plan, but, in 2008, again submitted a plan using the blended rate for the base year. The CO issued a second determination of noncompliance. The Armed Services Board of Contract Appeals denied General Dynamics’ appeal, determining that use of partial-year asset data reflected short-term fluctuations that could and did introduce distortion prohibited by CAS 412-50(b)(4) and that substitution of a midyear value and a blended rate in place of the 8 percent long-term estimate rate constituted “actuarial assumptions” because they were “estimate[s] of future conditions affecting pension cost” and were encompassed by the prohibitions of CAS 412-50(b)(4). The Federal Circuit affirmed. View "Gen. Dynamics Corp. v. Panetta" on Justia Law

Deckers imported UGG® Classic Crochet boots having a knit upper portion and a rubber sole. They do not have laces, buckles, or fasteners, can be pulled on by hand, and extend above the ankle. At liquidation, Customs classified the boots under Subheading 19.35, covering: “Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials: Footwear with outer soles of rubber or plastics: Other: Footwear with open toes or open heels; footwear of the slip-on type, that is held to the foot without the use of laces or buckles or other fasteners, the foregoing except footwear of subheading 6404.19.20 and except footwear having a foxing or foxing-like band wholly or almost wholly of rubber or plastics applied or molded at the sole and overlapping the upper” and subject to a duty rate of 37.5 percent. Deckers sought reclassification under subheading 6404.19.90, covering“[f]ootwear with outer soles of rubber . . . uppers of textile materials” that is “[v]alued [at] over $12/pair,” subject to a duty rate of nine percent. Customs rejected an argument that the term “footwear of the slip-on type” only encompasses footwear that does not extend above the ankle. The Trade Court granted the government summary judgment. The Federal Circuit affirmed. View "Deckers Outdoor Corp. v. United States" on Justia Law

Uship’s patents are directed to systems and methods of processing packages for shipment. According to the shared specification, the invention fills the need “for a system which accepts and stores items for subsequent pick-up by a commercial carrier.” The claims at issue recite “[a] method of mailing parcels and envelopes using an automated shipping machine” in the preamble. The claims comprise several similar or identical steps, including “receiving payment information from a customer”; “receiving package type information identifying a parcel . . . to be mailed”; “printing a shipping label”; and “validating receipt of said parcel . . . as the parcel . . . for which said . . . label was printed.” In Uship’s infringement action, the Court of Federal Claims found that “only an automated machine can perform” the validating step. On reconsideration, the court explained that its construction was based on both the specification and the prosecution history. After claim construction, the parties stipulated to a judgment of noninfringement. The Federal Circuit affirmed. View "Uship Intellectual Props., LLC v. United States" on Justia Law

Baron owns the 525 patent, which “generally relates to systems and methods for weather reporting and forecasting, and more particularly, to computerized systems and methods for reporting and forecasting real-time weather information.” ’ In 2011, Baron filed a civil action alleging that MWI’s WeatherCall programs infringed the 525 patent. The district court awarded summary judgment of noninfringement and attorney’s fees to MWI. The federal circuit vacated, finding summary judgment premature because Baron had yet to obtain MWI’s source code and to conduct two scheduled depositions. View "Baron Servs., Inc. v. Media Weather Innovations, LLC" on Justia Law

U.S. Customs and Border Protection denied Ford’s claims for post-entry duty refunds. The Court of International Trade upheld the denial and the Federal Circuit vacated. While 19 U.S.C. 1520(d) required Ford to file the relevant certificates of origin within one year, and its failure to do so could not be excused by 19 C.F.R. 10.112, Customs failed to adequately explain why it treats post-entry claims for refunds under 1520(d) differently depending on whether they were filed on paper or through the reconciliation program, under the North American Free Trade Agreement, which allows qualifying goods to enter the United States duty free(art. 502). View "Ford Motor Co. v. United States" on Justia Law