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

The challenged patents relate to certain improvements to electronic communications systems that lower the peak-to-average power ratio (PAR) of the transmitted signals. Lowering the PAR of a communications system is desirable because it reduces power consumption and the likelihood of transmission errors. The challenged patents specifically address a PAR problem that arises in the transmission of digital data using multicarrier communications systems, such as digital subscriber line (DSL) systems. In inter partes review proceedings, the Patent Trial and Appeal Board invalidated all claims of the two related patents as obvious in view of prior art, 35 U.S.C. 103. The Federal Circuit reversed. The fact findings underlying the Board’s obviousness determinations are not supported by substantial evidence. The Board based its findings on the assertions in Cisco’s petition, which the Board expressly adopted as its own findings and conclusions. No reasonable factfinder could find, based on Cisco’s petition and supporting expert declaration, that a person of ordinary skill would have recognized prior art’s disclosure of phase scrambling as a solution to reduce the PAR of other prior art. View "TQ Delta, LLC v. Cisco Systems, Inc." on Justia Law

Pharma Tech sued LifeScan for infringement of two patents that concern blood glucose monitoring systems for home use by individuals with diabetes. The shared specification of Pharma Tech’s patents states that the claimed inventions improve on prior art blood glucose monitoring systems by “eliminat[ing] several of the critical operator depend[e]nt variables that adversely affect the accuracy and reliability” of these systems. The specification explains that the invention accomplishes this objective by performing multiple Cottrell current measurements and comparing the results. “In a system that is operating correctly, the results should agree within reasonable limits.” The Federal Circuit affirmed summary judgment of noninfringement. Pharma Tech agreed that the accused products do not literally infringe the claim. Prosecution history estoppel bars the claims for infringement under the doctrine of equivalents; the accused system falls within the claim scope surrendered by the inventors during prosecution of the patent. View "Pharma Tech Solutions, Inc. v. LifeScan, Inc." on Justia Law

IPR’s 244 patent recognizes two types of wireless networks: a wireless local area network, which allows a user to wirelessly connect a portable electronic device to an access point, e.g., a router, that is in turn connected to a network and a cellular network, in which geographic regions are divided into “cells” that each contain a “base station.” The 244 patent claims a “subscriber unit,” e.g., a mobile device, that can automatically select the best available wireless network and then connect to it. The Patent Trial and Appeal Board found multiple claims obvious based on prior art references. The Federal Circuit remanded as to claim 8, finding insufficient record support for the determination that claim 8 is invalid as obvious. The court concluded that the evidence to which the Board pointed failed—either individually or collectively— to support the conclusion that there would have been a motivation to combine the relevant prior art references. On remand, the Board again found claim 8 unpatentable. The Federal Circuit again remanded. The only additional evidence the Board cited in support of its conclusion on remand was not part of the record before the Board and the decision remains unsupported. View "In re IPR Licensing, Inc." on Justia Law

GAT’s 243 patent discloses a “method and system for providing an online game, in which ability information of a unit associated with a pilot is enabled to change as ability information of the pilot changes.” In July 2015, GAT filed a complaint accusing Wargaming and its affiliate, Wargaming.net, of infringing the patent. GAT's process server served Wargaming.net’s registered United Kingdom agent in December 2015; the summons was not signed by the clerk of court and did not bear the court’s seal. GAT’s attorney also mailed a copy of the complaint and summons to Wargaming's Cyprus office. In February 2016, Wargaming indicated that it did not believe that service was properly effected on either Wargaming entity but that Wargaming would waive service in exchange for an agreement to have until April to respond to the complaint. No formal waiver was filed. In March 2016, Wargaming appeared at a scheduling conference. In April 2016, Wargaming moved to dismiss. On March 13, 2017, Wargaming filed its petition for inter partes review (IPR), asserting that it was not barred by 35 U.S.C. 315(b)'s one-year limitation from requesting IPR because it had not been served. The Patent Board concluded that neither the UK service nor the Cyprus service triggered the time bar and that several claims would have been obvious over prior art. The Federal Circuit affirmed. GAT did not preserve its specific arguments for why service was proper or that Wargaming’s counsel waived service. The court upheld the Board’s construction of the terms “unit,” “pilot,” and “ability” in making its findings of obviousness. View "Game & Technology Co., Ltd. v. Wargaming Group Ltd." on Justia Law

KPN sued Gemalto for infringement of its 662 patent, which concerns “systemic error” in the physical transmission of information over the air, The district court found four claims patent-ineligible under 35 U.S.C. 101, as reciting no more than mere abstract data manipulation operations, such as “reordering data and generating additional data.” The Federal Circuit reversed. These claims are directed to an improved check data generating device that enables a data transmission error detection system to detect a specific type of error that prior art systems could not. The 662 patent solves prior art problems by varying the way check data is generated by varying the permutation applied to different data blocks. Varying the permutation for each data block reduces the chances that the same systematic error will produce the same defective check data across different data blocks. Claims 2–4 thus replace the prior art check data generator with an improved, dynamic check data generator that enables increased detection of systematic errors that recur across a series of transmitted data blocks. The appealed claims represent a nonabstract improvement in the functionality of an existing technological process and not simply an abstract idea of manipulating data. View "Koninklijke KPN N.V. v. Gemalto M2M GMBH" on Justia Law

The Federal Acquisition Regulation permits contractors such as Northrop to seek reimbursement from the federal government for “allowable” post-retirement benefit (PRB) costs. The Armed Services Board of Contract Appeals found that the government improperly disallowed certain retirement benefits costs that Northrop asserted. Certain retirement benefit costs were unallowable under the applicable regulations because they were calculated using an improper accounting method but Northrop never claimed and will never claim any of the disputed benefits. The Federal Circuit affirmed. Substantial evidence supported the Board’s factual findings that the unallowable costs were not charged to the government by virtue of being excluded from Northrop’s transition obligation by Northrop’s negative amendment to its PRB plans. The factual findings are, therefore “final and conclusive,” 41 U.S.C. 7107 (2012). The government’s disallowance of the disputed $253,361,512 of Northrop’s PRB costs was improper. View "Secretary of Defense v. Northrop Grumman Corp." on Justia Law

The Klamath River Basin Reclamation Project straddles the Oregon-California border and provides water to hundreds of farms. The Project is managed by the Bureau of Reclamation. In 2001, the Bureau temporarily halted water delivery to farms and water districts in order to comply with its tribal trust obligations under the Endangered Species Act, 16 U.S.C. 1531. Plaintiffs alleged that action amounted to a taking without compensation, impaired their rights under the Klamath River Basin Compact, and caused the breach of water delivery contracts. The Claims Court rejected the suit on summary judgment. On remand, the Claims Court dismissed the breach of contract claims, determined that the takings claims should be analyzed as “physical takings,” and held a trial. The districts had been voluntarily dismissed as plaintiffs. As to the individual farmers, the Claims Court held that the Bureau’s actions did not amount to a taking and did not violate the Compact because the rights reserved for tribal fishing were superior. The Federal Circuit affirmed, finding the plaintiffs’ state water rights subordinate to the federal tribal rights, which were recognized in an 1864 treaty. The Bureau acted reasonably to preserve water levels necessary to avoid endangering fish. View "Baley v. United States" on Justia Law

Columbia’s 270 patent is a utility patent directed to materials that use a pattern of heat-directing elements coupled to a base fabric to manage heat through reflection or conductivity. Figures in the patent depict the material’s use in cold weather and camping gear. Its 093 patent is a design patent drawn to the “ornamental design of a heat reflective material.” In an infringement suit against Seirus, the jury found two claims in the 270 patent invalid as anticipated and obvious. The court entered summary judgment fining the 093 patent infringed. The Federal Circuit affirmed that the claims were invalid but reversed the summary judgment of infringement. In evaluating the prior art, the court erroneously compared Columbia’s design, Seirus’s product’s design, and a prior art patent design side-by-side before concluding that “[t]he overall visual effect of the Columbia and Seirus designs are nearly identical and if the logo was removed from the Seirus design, an ordinary observer would have great difficulty distinguishing between" the designs.” In evaluating prior art and wave thickness, the district court made a finding of fact—whether an element of Seirus’s design would give an ordinary observer a different visual impression than Columbia’s design—over a disputed factual record. Such questions should be resolved by a jury. View "Columbia Sportswear North America, Inc. v. Seirus Innovative Accessories, Inc." on Justia Law

Norman, a school teacher, opened a “numbered” Swiss bank account with UBS in 1999. Statements for the account list only the account number, not Norman’s name or address. From 2001-2008, her balance ranged between $1.5 million-$2.5 million. Norman was actively involved in managing and controlling her account. She gave UBS investment instructions and prohibited UBS from investing in U.S. securities on her behalf, which helped prevent disclosure of her account to the IRS. She took withdrawals in cash. In 2008, Norman expressed displeasure when she was informed of UBS’s decision to “no longer provide offshore banking” and to work “with the US Government to identify the names of US clients who may have engaged in tax fraud.” Just before UBS publicly announced this plan, Norman closed her UBS account, transferring her funds to another foreign bank. Under 31 U.S.C. 5314(a), U.S. persons who have relationships with foreign financial agencies are required to file a Report of Foreign Bank and Financial Accounts (FBAR) with the Treasury Department. When the IRS discovered her account during an audit, Norman initially expressed shock to learn that she had a foreign account and subsequently tried to claim that she did not control the account. The Federal Circuit affirmed a Claims Court finding that Norman willfully failed to file an FBAR in 2007 and the IRS properly assessed a penalty of $803,530 for this failure. View "Norman v. United States" on Justia Law

On inter partes reexamination after the Federal Circuit vacated the Patent Trial and Appeal Board’s prior decision, the Board reversed the patent examiner’s rejection of new claims presented by Firepass (the patent owner). The patent discloses a fire prevention and suppression system that prevents and extinguishes fires using breathable air instead of water, foam, or toxic chemicals— each of which can present risks to personnel or electronic equipment. The invention is based on the inventor’s alleged discovery that a low-oxygen (hypoxic” but normal pressure (normbaric) atmosphere inhibits fire ignition and combustion, yet remains breathable for humans. The Federal Circuit vacated the Board’s reversal of the examiner’s rejection of the claims. The Board erred in its analogous art analysis by declining to consider record evidence relied on by Airbus to demonstrate the knowledge and perspective of a person of ordinary skill in the art at the time of the invention. The court remanded for consideration whether a particular prior art reference is analogous art in view of the four prior art references relied on by Airbus to demonstrate the knowledge and perspective of a person of ordinary skill in the art at the time of the invention. View "Airbus S.A.S. v. Firepass Corp." on Justia Law