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

Commonwealth Scientific and Industrial Research Organization (CSIRO) filed the instant suit for infringement of CSIRO’s U.S. Patent No. 5,487,069 (“’069 patent”) against Cicso Systems, Inc. The district court accepted a joint stipulation that Cisco would not contest infringement or validity. After a bench trial on damages, the district court awarded entered judgment for CSIRO in the amount of $16,243,067. Cisco appealed, challenging the district court’s damages award. The Federal Circuit vacated the district court’s judgment and remanded for the district court to revise its damages award, holding (1) the methodology employed by the district court in this case was not contrary to damages law; but (2) the district court erred in not accounting for the ‘069 patent’s standard-essential status and in its reasons for discounting a relevant license agreement. Remanded for the district court to revise its damages award. View "Commonwealth Scientific & Indus. Research Org. v. Cisco Sys., Inc." on Justia Law

MCM Portfolio LLC owns U.S. Patent No. 7,162,549 (the ‘549 patent). Hewlett-Packard Co. (HP) filed a petition requesting inter partes review of claims 7, 11, 19, and 21 of the ‘549 patent. The Patent Trial and Appeal Board determined that there was a reasonable likelihood that HP would prevail with respect to at least one of the challenged claims based on obviousness and rejected MCM’s argument that it could not institute inter partes review under 35 U.S.C. 315(b). Thereafter, the Board issued a final decision concluding that the challenged claims would have been obvious. MCM appealed. The Federal Circuit affirmed, holding (1) the Court lacks jurisdiction to review the Board’s decision that the institution of inter partes review was not barred by 35 U.S.C. 315(b); (2) on the merits, inter partes review does not violate Article III or MCM’s right to a trial by jury under the Seventh Amendment; and (3) the Board correctly found that claims 7, 11, 19, and 21 of the ‘549 patent would have been obvious. View "MCM Portfolio LLC v. Hewlett-Packard Co." on Justia Law

In CardSoft v. VeriFone, Inc., the Federal Circuit reversed the district court’s decision in favor of CardSoft. The district court adopted CardSoft’s proposed construction for the claim term “vertical machine." Applying the district court’s construction, a jury determined that certain VeriFone devices infringed claim 11 of the 6,934,945 patent and claim 1 of the 7,302,683 patent. The federal circuit concluded that the district court erred in its construction of “vertical machine” and that CardSoft waived any argument of infringement under the correct construction. The Supreme Court vacated and remanded the CardSoft decision, determining that the Federal Circuit must review a district court’s ultimate interpretation of a claim term as well as its interpretations of “evidence intrinsic to the patent” de novo and its subsidiary factual findings about extrinsic evidence for clear error. The Federal Circuit again reversed the district court’s construction of the term “virtual machine,” holding (1) the district court’s construction is entitled to de novo review because the case does not involve the factual findings to which the Court owes deference under Teva; and (2) the district court erred by failing to give “virtual machine” its ordinary and customary meaning, and CardSoft waived any argument of infringement under the correct construction. View "CardSoft, LLC v. VeriFone, Inc." on Justia Law

Between 2001 and 2004, Nitek Electronics, Inc. entered thirty-six shipments of pipe fitting components used for gas meters into the United States from China. U.S. Customs and Border Protection (“Customs”) claimed that the merchandise was misclassified and issued Nitek a final penalty claim stating that the tentative culpability was gross negligence. Customs then referred the matter to the United States Department of Justice (“Government”) to bring a claim against Nitek in the Court of International Trade to enforce the penalty. The Government brought suit against Nitek to recover lost duties, antidumping duties, and a penalty based on negligence under 19 U.S.C. 1592. Nitek moved to dismiss the case for failure to state a claim. The court denied dismissal of the claims to recover lost duties and antidumping duties but did dismiss the Government’s claim for a penalty based on negligence, concluding that the Government had failed to exhaust all administrative remedies under 19 U.S.C. 1592 by not having Customs demand a penalty based on negligence, instead of gross negligence. The Federal Circuit affirmed, holding that the statutory framework of section 1592 does not allow the Government to bring a penalty claim based on negligence in court because such a claim did not exist at the administrative level. View "United States v. Nitek Elecs., Inc." on Justia Law

The Department of Commerce determined that utility scale wind towers from the People’s Republic of China and utility scale wind towers from the Socialist Republic of Vietnam (together, the subject merchandise) were sold in the United States at less than fair value and that it received countervailable subsidies. The International Trade Commission made a final affirmative determination of material injury to the domestic industry. The determination was by divided vote of the six-member Commission. The Court of International Trade upheld the Commission’s affirmative injury determination. Siemens Energy, Inc., an importer of utility scale wind towers, challenged the determination. The issues on appeal concerned the interpretation and effect of the divided vote. The Federal Circuit affirmed, holding that the Court of International Trade properly upheld the Commission’s affirmative injury determination. View "Simens Energy, Inc. v. United States, Wind Tower Trade Coalition" on Justia Law

Straight Path IP Group owns U.S. Patent No. 6,108,704 (“the ’704 patent”), entitled Point-to-Point Internet Protocol, which describes protocols for establishing communication links through a network. Sipnet EU S.R.O. filed a petition for inter partes review of the ‘704 patent, requesting cancellation of claims 1-7 and 32-42, as anticipated by and obvious over several prior-art references. The Patent Trial and Appeal Board conducted the review and reached a final decision canceling the challenged claims based on determinations of anticipation and obviousness. The Federal Circuit reversed, holding that the Board adopted a claim construction in arriving at its decision that was erroneous, even under the broadest-reasonable-interpretation standard. Remanded for further proceedings under the correct construction. View "Straight Path IP Group, Inc. v. Sipnet EU S.R.O." on Justia Law

Normandy Apartments, Ltd. owned and managed a low-income rental housing project where tenants’ rents were federally subsidized under the Section 8 project-based program. In 2004, Normandy and the United States Department of Housing and Urban Development (HUD) entered into a contract (the HAP contract) wherein HUD agreed to pay rental housing assistance to Normandy. Normandy and HUD renewed the contract annually until 2004. The named parties and signatories of the 2004 HAP contract were the Oklahoma Housing Finance Authority and Normandy. In 2007, HUD notified Normandy that its assistance payments would be terminated because Normandy defaulted on the HAP contract by repeatedly failing to maintain the apartments. In 2010, Normandy filed suit against the government in the United States Court of Federal Claims asserting a breach of the 2004 HAP Contract and requesting damages. The Claims Court dismissed the case for lack of subject matter jurisdiction. Normandy then filed an amended complaint asserting a takings claim against the government. The Claims Court granted summary judgment in favor of the government. The Federal Circuit affirmed, holding (1) the Claims Court correctly dismissed Normandy’s breach of contract claim for lack of jurisdiction because the United States was not a party to the 2004 HAP contract; and (2) HUD’s conduct did not constitute a regulatory taking. View "Normandy Apartments, Ltd. v. United States" on Justia Law

In 2009, a jury found Akamai’s 703 patent not invalid and directly infringed by Limelight, but the court entered judgment as a matter of law overturning the infringement verdict on the basis of divided infringement. After several rounds of appeals and remands, culminating with the en Federal Circuit’s reversal of the district court’s JMOL determination on the divided infringement issue, the Federal Circuit concluded that the district court did not err in its claim constructions of the terms “tagging” and “optimal” and appropriately instructed the jury and did not err in allowing Akamai to present a theory by its lost profits expert. The court ordered reinstatement of the jury’s original verdict and damages award. View "Akamai Techs., Inc. v. Limelight Networks, Inc." on Justia Law

Verinata and Ariosa compete in the field of noninvasive prenatal diagnostics, including testing for fetal chromosomal abnormalities. Verinata owns the 430 patent, which describes methods of noninvasive prenatal testing for the presence of fetal chromosomal abnormalities, particularly “aneuploidy,” i.e., the presence of an abnormal number of copies of a chromosome. Ariosa petitioned the Patent Trial and Appeal Board for inter partes review and challenged the claims for obviousness under 35 U.S.C. 103. The Board concluded that Ariosa had not met its burden of proving that claims 1–18 and 19–30 would have been obvious.The Federal Circuit vacated and remanded because the Board’s language suggests it did not sufficiently consider a 2008 patent that discloses a method of determining fetal aneuploidy by isolating fetal cells, not cell-free DNA. View "Ariosa Diagnostics v. Verinata Health, Inc." on Justia Law

Netlist’s 537 patent, entitled “Memory Module with a Circuit Providing Load Isolation and Memory Domain Translation” has a 2006 application date and relates to computer system memory modules, which Netlist designs and manufactures. The invention improves the performance or capacity of the memory modules. Inphi sought inter partes reexamination in 2010. The examiner rejected claims 1–9, 12–31, and 34–44 as obvious in view of the prior art. To overcome the rejection, Netlist amended its claims, narrowing them. Thereafter, the examiner withdrew the rejection of the claims and issued a final decision. The Patent Trial and Appeal Board affirmed, rejecting an argument that the amendment, which introduced a negative claim limitation, failed to satisfy the written description requirement of 35 U.S.C. 112, paragraph 1. The Federal Circuit affirmed, holding that the Board’s determination that the negative claim limitation met the requirements of section 112, paragraph 1 was supported by substantial evidence; properly described, alternative features are sufficient to satisfy the written description standard of section 112, paragraph 1 for negative claim limitations. View "Inphi Corp. v. Netlist, Inc." on Justia Law