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

Plaintiffs, which are self-insured health and welfare trust funds, challenged a statutory requirement under the Patient Protection and Affordable Care Act (ACA) that obligated them to pay contributions to the Transitional Reinsurance Program (TRP) for the 2014, 2015, and 2016 benefit years. They argued that these mandatory payments constituted a taking of their property under the Fifth Amendment, claiming a protected property interest in the specific funds held in their trust accounts, which are maintained solely for providing health and welfare benefits to covered individuals.The United States Court of Federal Claims reviewed the case and granted the Government’s motion for partial summary judgment on the Fifth Amendment takings claim. The Claims Court found that the plaintiffs did not possess a cognizable property interest in the TRP payments, as the obligation was merely to pay money, not to surrender specifically identifiable funds. The court rejected the argument that the trust agreements created a property interest in the sums paid, and also dismissed the alternative claim that the trust accounts themselves were the specific funds at issue. The Claims Court further held that a taking would only occur if the government appropriated the entire fund, which did not happen here. Plaintiffs’ motion for reconsideration was denied.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the grant of summary judgment de novo. The Federal Circuit affirmed the Claims Court’s decision, holding that the statutory obligation to pay TRP contributions did not constitute a taking under the Fifth Amendment because it was an obligation to pay money, not an appropriation of a specific, identifiable fund. The court clarified that a mere requirement to pay money, even from a trust account, does not give rise to a takings claim. The Federal Circuit also found harmless error in the Claims Court’s alternative reasoning regarding appropriation of funds in toto. The judgment was affirmed. View "ELECTRICAL WELFARE TRUST FUND v. US " on Justia Law

Rex Medical, L.P. and Intuitive Surgical, Inc. are competitors in the medical device industry, specifically in the market for surgical stapling products. Rex accused Intuitive of infringing U.S. Patent No. 9,439,650, which covers a system for stapling tissue during surgery. The accused products included several models of Intuitive’s SureForm staplers. Rex initially asserted two patents, but after Intuitive challenged one in an inter partes review, Rex withdrew it, leaving only the ’650 patent at issue. The dispute centered on claim 6 of the ’650 patent, which describes a stapling apparatus with specific structural features.The United States District Court for the District of Delaware presided over the case. Before trial, the court excluded Rex’s damages expert from testifying about a prior license agreement, finding the expert failed to apportion the value of the asserted patent from other patents in the agreement. At trial, neither party’s damages expert testified, and Rex relied on lay testimony regarding damages. The jury found Intuitive infringed claim 6 and that the claim was not invalid, awarding Rex $10 million in damages. After post-trial motions, the district court entered judgment for Rex on infringement and validity but reduced the damages award to $1, finding insufficient evidence to support the jury’s damages calculation and denying Rex’s request for a new trial on damages.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the district court’s rulings. The Federal Circuit held that the exclusion of Rex’s damages expert was proper because the expert did not adequately apportion the value of the asserted patent. The court also affirmed the reduction of damages to $1, finding the record lacked sufficient evidence for the jury to reasonably determine damages for the ’650 patent alone. The Federal Circuit further affirmed the district court’s findings on infringement and validity, rejecting Intuitive’s arguments regarding claim construction and written description. View "REX MEDICAL, L.P. v. INTUITIVE SURGICAL, INC. " on Justia Law

The dispute centers on allegations of intellectual property infringement involving shower curtains designed with embedded rings, eliminating the need for traditional hooks. The plaintiffs, a group of related companies, own several patents covering these “hookless” shower curtains, as well as registered and unregistered trademark and trade dress rights. The defendants, two companies that manufactured and sold similar shower curtains, were accused of infringing these patents, trademarks, and trade dress. The accused products featured rings with a flat upper edge and a slit, allowing the curtain to be attached to a rod without hooks.In the United States District Court for the Southern District of New York, the defendants’ motion to transfer venue was denied as untimely. The district court granted summary judgment of patent infringement in favor of the plaintiffs, based on its claim constructions, and precluded the defendants’ unclean hands defense for being raised too late. After a bench trial, the court found that the defendants infringed the asserted patents, the HOOKLESS® and EZ ON trademarks, and the claimed trade dress, and that some infringement was willful. The court awarded lost profits, reasonable royalties, attorneys’ fees, and costs.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the denial of the venue transfer and the exclusion of the unclean hands defense. However, it reversed the findings of infringement for the ’248 and ’609 patents as to one defendant, vacated the ’088 patent infringement finding as to that defendant, and affirmed the patent infringement findings as to the other. The court also vacated the trade dress infringement and willfulness findings, reversed the EZ ON trademark infringement finding, and vacated the HOOKLESS® trademark infringement finding. The award of attorneys’ fees was vacated, and the case was remanded for further proceedings consistent with these rulings. The court clarified the standards for claim construction, trade dress functionality, and standing to assert trademark rights. View "Focus Products Group International, LLC v. Kartri Sales Co." on Justia Law

Several U.S. companies that import products from China challenged the imposition of tariffs on certain Chinese goods, known as List 3 and List 4A tariffs. These tariffs were implemented by the Office of the United States Trade Representative (USTR) after an investigation found that China engaged in unreasonable or discriminatory practices that burdened U.S. commerce. The initial tariffs, covering $50 billion in imports (Lists 1 and 2), were not contested. However, after China retaliated with its own tariffs, USTR expanded the tariffs to cover an additional $200 billion (List 3) and later $120 billion (List 4A) in Chinese imports. The plaintiffs argued that these expanded tariffs exceeded USTR’s statutory authority and violated the Administrative Procedure Act (APA) by failing to properly consider public comments.The United States Court of International Trade reviewed the case first. It found that USTR acted within its authority under Section 307(a)(1)(B) of the Trade Act of 1974, which allows modification of trade actions when the burden on U.S. commerce increases or decreases. However, the court also determined that USTR had not adequately responded to significant public comments as required by the APA. The court ordered a limited remand for USTR to further explain its reasoning and how it considered public input. After USTR provided a more detailed explanation, the trial court sustained the List 3 and List 4A tariffs.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the trial court’s judgment. The appellate court held that Section 307(a)(1)(C) independently authorized USTR’s modifications, allowing escalatory trade actions when the original action was no longer appropriate. The court also found that USTR’s remand redetermination satisfied the APA’s notice-and-comment requirements. Thus, the Federal Circuit affirmed and sustained the challenged tariffs. View "HMTX Industries LLC v. United States" on Justia Law

A company that provides credit card services under the registered mark ASPIRE opposed the registration of two marks—ASPIRE BANK word and design marks—by a Tennessee retail bank, Apex Bank. Apex Bank, which does not offer credit cards but provides various banking services, filed intent-to-use applications for the ASPIRE BANK marks for “banking and financing services.” CC Serve, the credit card company, argued that Apex’s proposed marks were confusingly similar to its own ASPIRE mark, which has been used in connection with credit card services since 1996.The Trademark Trial and Appeal Board (TTAB) reviewed the opposition and sustained it under Section 2(d) of the Lanham Act, finding that there was a likelihood of consumer confusion between the marks. The Board analyzed several factors from the E. I. DuPont DeNemours & Co. case, including the similarity of the services and the marks themselves, and concluded that the services were highly similar and that confusion was likely. Apex Bank appealed the TTAB’s decision to the United States Court of Appeals for the Federal Circuit.The United States Court of Appeals for the Federal Circuit affirmed the TTAB’s finding that the parties’ services are highly similar, upholding the Board’s analysis of the second DuPont factor. However, the appellate court found that the Board erred in its analysis of the sixth DuPont factor by narrowly considering only marks used for credit card services, rather than similar marks used for broader banking and financing services. The court also vacated the Board’s analysis of the first DuPont factor, as reconsideration of the sixth factor could affect the assessment of the marks’ commercial impression. The case was affirmed in part, vacated in part, and remanded for further proceedings consistent with the appellate court’s opinion. View "Apex Bank v. CC Serve Corp." on Justia Law

Finesse Wireless LLC owns two patents related to methods for mitigating interference in radios caused by intermodulation products (IMPs), which can arise when radio signals interact with passive obstacles. Finesse alleged that AT&T Mobility LLC, by using a particular feature in Nokia radios, infringed specific claims of both patents. Nokia intervened in the case. The dispute centered on whether the accused radios performed the patented methods for reducing IMP interference, specifically whether they sampled the required signals and performed certain signal multiplications as described in the patent claims.The United States District Court for the Eastern District of Texas presided over a jury trial in which the jury found all asserted claims of both patents valid and infringed, awarding Finesse a lump-sum damages amount for the remaining life of the patents. After the verdict, AT&T and Nokia moved for judgment as a matter of law (JMOL) of noninfringement and for a new trial on damages, but the district court denied these motions.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the district court’s denial of JMOL de novo, applying Fifth Circuit law. The Federal Circuit found that Finesse’s evidence, particularly its expert’s testimony, was insufficient and self-contradictory regarding whether the accused radios sampled both the “signals of interest” and “interference generating signals” as required by the first patent. For the second patent, the court determined that no reasonable jury could have found the accused radios performed the seven specific signal multiplications required by the claims. As a result, the Federal Circuit reversed the district court’s denial of JMOL of noninfringement for both patents and vacated the damages award. Costs were awarded to the defendants-appellants. View "FINESSE WIRELESS LLC v. AT&T MOBILITY LLC" on Justia Law

The dispute centers on a patent owned by a pharmaceutical company, which describes methods for reducing the risk of cardiovascular events in patients with coronary artery disease or peripheral artery disease by administering specific doses of rivaroxaban and aspirin. The patent claims include both general methods of administering these drugs and a particular claim involving a “first product” that combines both drugs in a single dosage form. The patent is based on results from a clinical trial known as COMPASS, which evaluated the efficacy and safety of this drug combination.Three generic drug manufacturers challenged the patent’s validity by filing petitions for inter partes review with the Patent Trial and Appeal Board (PTAB), arguing that the claims were anticipated or obvious in light of prior art references, including published articles describing similar drug regimens and ongoing clinical trials. The PTAB joined the proceedings and ultimately held that claims 1–2 were unpatentable as anticipated and claims 1–8 were unpatentable as obvious, relying on the prior art and its interpretation of the patent’s claim language.On appeal, the United States Court of Appeals for the Federal Circuit reviewed the PTAB’s decision. The court affirmed the PTAB’s finding that claims 1–4 were unpatentable, holding that the phrase “clinically proven effective” in the claims, even if considered limiting, did not create a patentable distinction because it was functionally unrelated to the method itself. However, the court found that the PTAB had incorrectly construed the “first product” limitation in claims 5–8, which should require a single dosage form containing both drugs. The court vacated the PTAB’s unpatentability finding for claims 5–8 and remanded for further proceedings under the correct claim construction. The court affirmed in part, vacated in part, and remanded the case, with no costs awarded. View "BAYER PHARMA AKTIENGESELLSCHAFT v. MYLAN PHARMACEUTICALS INC. " on Justia Law

A patent owner brought two infringement lawsuits in the United States District Court for the Western District of Texas against a semiconductor company, alleging that certain integrated circuit products infringed three patents related to electronic circuitry and power-saving features. The accused products included specific chips that allegedly implemented a particular feature. After the lawsuits were filed, the defendant challenged the cases on grounds including improper service, lack of personal jurisdiction, and failure to state a claim. During the litigation, the plaintiff produced a licensing agreement with a third party, and subsequently entered into another agreement covering the accused products. Shortly thereafter, the plaintiff voluntarily dismissed both cases without prejudice.Following the dismissals, the defendant moved for attorneys’ fees, costs, and sanctions, arguing that the lawsuits were baseless. The district court denied the defendant’s motions for attorneys’ fees under 35 U.S.C. § 285, costs under Rule 54(d)(1), and sanctions under Rule 11 and 28 U.S.C. § 1927, but converted the voluntary dismissals to dismissals with prejudice as a sanction. The court also denied the defendant’s discovery requests related to confidentiality and access to certain materials.On appeal, the United States Court of Appeals for the Federal Circuit held that the district court erred in denying fees under § 285 and costs under Rule 54(d)(1), because the defendant became a prevailing party when the dismissals were converted to dismissals with prejudice. The Federal Circuit vacated those portions of the district court’s decision and remanded for further proceedings. The appellate court affirmed the district court’s denial of Rule 11 sanctions and fees under § 1927, finding no abuse of discretion. It also affirmed the denial of the remaining discovery request, concluding that the district court did not abuse its discretion in applying the protective order. The judgment was thus vacated in part, affirmed in part, and remanded. View "FUTURE LINK SYSTEMS, LLC v. REALTEK SEMICONDUCTOR CORPORATION " on Justia Law

A company developed and patented a process for desulfurizing heavy marine fuel oil (HMFO) to comply with international sulfur content standards. The patented process involves taking a high-sulfur HMFO that meets certain physical property requirements and then hydroprocessing it to reduce its sulfur content. The company marketed its technology to various refineries, including the defendants, but no licensing agreement was reached. The defendants later modified their refineries to produce low-sulfur HMFO, prompting the plaintiff to sue for patent infringement, specifically alleging that the defendants’ processes at one refinery infringed two claims of the relevant patent.In the United States District Court for the Southern District of Texas, the parties disputed the proper construction of certain claim terms and the appropriate method and location for testing the fuel’s compliance with the required standards. During discovery, the defendants argued that it was too dangerous to obtain certain test samples, and the court accepted their position, allowing the plaintiff to use an estimation formula instead. On the eve of trial, however, the defendants introduced a new noninfringement theory, arguing that only actual test data—not estimates—could prove compliance. The district court allowed this argument, and the jury returned a general verdict of noninfringement. The district court later found the defendants’ argument improper and prejudicial but deemed the error harmless and denied the plaintiff’s motion for a new trial.The United States Court of Appeals for the Federal Circuit reviewed the case. It held that the district court abused its discretion in finding the error harmless because the jury’s general verdict made it impossible to determine whether the improper argument affected the outcome. The appellate court reversed the denial of a new trial and remanded for further proceedings, also affirming the district court’s construction of the disputed claim term. View "MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 " on Justia Law

The case concerns an administrative review of an antidumping duty order imposed by the United States Department of Commerce on certain large diameter welded pipe imported from Greece. The Greek producer, Corinth Pipeworks Pipe Industry SA, and its U.S. subsidiary, CPW America Co., were the sole exporter and importer of the subject merchandise. During the review period, Commerce required Corinth to submit cost data and a reconciliation of those costs to its financial statements. Corinth submitted responses to Commerce’s initial and two supplemental questionnaires, but Commerce found that the data did not reconcile as required, included double-counted costs, and failed to provide a single, complete reconciliation for the review period.After receiving Corinth’s responses, Commerce initially issued preliminary results finding no dumping. However, after reviewing the final submissions, Commerce determined that Corinth’s cost data were unreliable and incomplete. Commerce concluded that Corinth had withheld necessary information, failed to provide data in the requested form, and significantly impeded the review. As a result, Commerce applied “facts otherwise available” with an adverse inference, assigning Corinth the highest dumping margin alleged in the original petition. Corinth challenged this determination before the United States Court of International Trade, arguing that Commerce’s actions were unreasonable, that it was not given an opportunity to comment on a change in methodology, and that the adverse inference was not justified.The United States Court of International Trade sustained Commerce’s final determination, finding that Commerce’s use of total adverse facts available was reasonable and supported by substantial evidence. On appeal, the United States Court of Appeals for the Federal Circuit affirmed. The Federal Circuit held that Commerce’s determinations were supported by substantial evidence and not contrary to law, that Corinth had failed to cooperate to the best of its ability, and that Commerce was not required to provide an additional opportunity to comment under the circumstances. The judgment of the Trade Court was affirmed. View "CORINTH PIPEWORKS PIPE INDUSTRY SA v. US " on Justia Law