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

Corephonics’s Challenged Patents relate to dual-aperture camera systems and disclose techniques for using the images from both lenses when zooming while capturing video. The Patent Trial and Appeal Board found claims of the Challenged Patents unpatentable as obvious (35 U.S.C. 103) in inter partes reviews initiated by Apple.The Federal Circuit vacated, finding no procedural error in the Board’s handling of whether two prior references are analogous art. The Board’s handling of the analogous art issue neither markedly departed from the evidence and theories presented by the petition or institution decision nor unfairly surprised” Corephotonics. The Board’s determination that one of the references is analogous art is supported by substantial evidence; the reference is in the same field of endeavor as the Challenged Patents . The court remanded for the Board to explain why the other reference is (or is not) analogous art and how this finding affects its overall conclusion as to obviousness. The Board must decide whether it should consider Apple’s contention that, regardless of whether the reference is pertinent to the problem faced by the inventors, it is in the same field of endeavor as the Challenged Patents. View "Corephotonics, Ltd. v. Apple, Inc." on Justia Law

Finjan asserted the “Downloadable Patents” and the “ARB Patent,” among others in a patent infringement complaint as to SonicWall’s Gateways, Email Security products, and Capture Advanced Threat Protection, among other products. The Downloadable Patents relate to ways to protect network-connectable devices from undesirable downloadable operations.The district court agreed with SonicWall’s interpretation of the claims, concluding that the recited claim limitations “must be performed by the same computer.” Capture ATP and Gateways and Capture ATP and ES products involve separate, remote computers. The court granted summary judgment of noninfringement. Finjan unsuccessfully argued that there remained a factual dispute as to whether Capture ATP and its Gateway and Capture ATP and its ES products each work together to act as a unified computer system to form the steps as Finjan alleged. The district court excluded the apportionment opinions of Finjan’s technical expert and of Finjan’s damages expert based on that apportionment analysis.The Federal Circuit vacated in part. The district court based its judgment of invalidity on a collateral estoppel decision that has since been vacated. The court affirmed the summary judgment of noninfringement and the exclusion of Finjan’s expert analysis. View "Finjan LLC v. SonicWall, Inc." on Justia Law

Schwendimann owns the challenged patents, which relate to transfer sheets and methods for transferring images onto dark-colored fabrics. Multi-layer image transfer sheets for transferring images onto fabrics were well known in the prior art but Schwendimann’s patents claimed a single-step solution whereby the white background was incorporated into the image transfer sheet, allowing the white background and dark image to be applied simultaneously onto the dark fabric.On inter partes review, the Patent Trial and Appeal Board found all claims of three patents and multiple claims of the fourth patent unpatentable as obvious in view of prior art. The Federal Circuit affirmed. Substantial evidence supported the Board’s finding that a skilled artisan would be motivated to combine prior art. View "Schwendimann v. Neenah, Inc." on Justia Law

Sisvel’s 561 patent relates to methods of channel coding when transmitting data in radio systems. Channel coding is a technique that adds redundant information to a data block, thereby creating a coded data block. To account for problems from noise and interference during data transmission, the redundant data allows a receiver to more accurately detect and correct errors in the transmitted data, but at the cost of requiring more bandwidth and network resource usage. The 561 patent uses techniques called “link adaptation” and “incremental redundancy,” which it asserts improves prior channel coding techniques.On inter partes review, the Patent Trial and Appeal Board found four claims unpatentable but upheld five other claims. The Federal Circuit affirmed the findings of unpatentability. Prior art (Chen) does disclose a second puncturing pattern for transmission of selected code symbols and the Board provided a sufficiently detailed explanation to support its finding that Chen discloses the “combining” limitation. The Board acknowledged Sisvel’s argument that Chen includes a statement that “retransmitted packets are interleaved (not combined).” The court vacated in part, with respect to the claims that were upheld. View "Sisvel International, S.A. v. Sierra Wireless, ULC" on Justia Law

In 1907, the then-owner executed the “Stimson deed,” transferring to the Railroad “its successors and assigns, the right to cross said right of way at any point or points where such crossing is desired” the land at issue. POTB later took ownership of the railroad. A 2007 storm caused severe damage to the railroad tracks. POTB did not repair the damage, resulting in the disbandment of the Oregon Tillamook Railroad Authority. POTB, with governmental entities, established the Salmonberry Trail Intergovernmental Agency, to construct “a new multi-use trail” that would “connect[] to a wide network of existing recreation[al] trails and parks, educational opportunities, and heritage sites” over portions of the railroad line. In 2016, POTB filed a notice of intent to abandon service of the portions of the railroad line at issue with the Surface Transportation Board, which issued a Notice of Interim Trail Use (NITU) allowing interim trail use and railbanking under the National Trails System Act Amendments, 16 U.S.C. 1247(d).The Claims Court and Federal Circuit rejected Stimson’s claim that the creation of the trail constituted a Fifth Amendment taking. Railbanking and interim trail use are within the scope of the easement. Stimson failed to show abandonment for all purposes and had no compensable property interest in the land to which the deed pertained. View "Stimson Lumber Co. v. United States" on Justia Law

GSS is the managing member and owner of Liberty. In 2006, Liberty purchased a note issued by Aaardvark and entered into a liquidity asset purchase agreement (LAPA) for that Note. BNS was Liberty’s counterparty for the Aaardvark LAPA, requiring BNS to purchase the Aaardvark Note at par value if Liberty exercised the LAPA. Months later, Liberty entered into a note purchase agreement with an unrelated investor, Scotiabank’s predecessor, and issued the First Loss Note; Scotiabank’s predecessor funded the “First Loss Note Account” to cover some of the risk of Liberty’s assets. That Account would compensate BNS for a loss in value of Liberty’s assets. For tax purposes, Scotiabank’s investment in the Note was treated as a partnership interest in Liberty. In 2011, Liberty exercised the Aaardvark LAPA; BNS purchased the Aaardvark Note at a loss. BNS certified this loss to Scotiabank, causing Liberty to pay $24 million to BNS from the Account. Liberty’s loss was allocated to GSS.GSS filed an amended return for the 2009 tax year, requesting to carry back the allocated 2011 loss, 26 U.S.C. 165. The IRS disallowed the deduction under section 707(b)(1), focusing on Liberty’s Aaardvark Note sale to BNS and the $24 million payment to BNS to conclude that these transactions should be treated as a single transaction. The Claims Court rejected GSS’s appeal. The Federal Circuit vacated. The Claims Court erred by applying a hybrid legal standard that improperly conflated the step transaction doctrine and the economic substance doctrine. Under the end result test, the Claims Court must “examine[] whether it appears that separate transactions were really component parts of a single transaction intended from the outset to be taken for the purpose of reaching the ultimate result.” View "GSS Holdings (Liberty) Inc. v. United States" on Justia Law

Elekta’s 648 patent, titled “Method and apparatus for treatment by ionizing radiation,” discloses a device for treating a patient with ionizing radiation for certain types of radiosurgery and radiation therapy. The invention uses a radiation source, e.g., a linear accelerator (linac), mounted on a pair of concentric rings to deliver a beam of ionizing radiation to the targeted area of the patient. ZAP Surgical Systems sought inter partes review (IPR). The Patent Trial and Appeal Board addressed Elekta’s arguments that a skilled artisan would not have been motivated to combine, and would not have had a reasonable expectation of success in combining, one prior art device (Grady) with the linac described in the prior art, Ruchala, and whether a skilled artisan would have been dissuaded from combining the devices because one device was an imaging device, rather than a radiation device, and because the linac’s weight would render the Grady device inoperable, imprecise, and unsuitable for treatment.The Board concluded that a skilled artisan would have been motivated to combine Grady and Ruchala. The Federal Circuit affirmed, finding substantial support for the finding that a person of ordinary skill in the art would have been motivated to make the proposed combination. View "Elekta Ltd. v. ZAP Surgical Systems, Inc." on Justia Law

In a “key step” of the "coagulation cascade" that forms blood clots, an enzyme (Factor VIIIa) complexes with another enzyme (Factor IXa) to activate Factor X. Hemophilia A is a disorder where the activity of Factor VIII is functionally absent, impeding the body’s ability to effectively form blood clots. Historically, Hemophilia A has been treated by intravenously administering Factor VIII. Approximately 20–30% of Hemophilia A patients cannot benefit from that treatment because they develop Factor VIII inhibitors. Baxalta’s patent provides alternative means to treat Hemophilia A.Baxalta sued, alleging Genentech’s Hemlibra® (emicizumab) product infringes the patent. Emicizumab is a humanized bispecific antibody that binds to Factor IXa with one arm and Factor X with the other arm, mimicking the function of Factor VIIIa. Following the district court’s construction of the claim terms “antibody” and “antibody fragment” to exclude bispecific antibodies, the Federal Circuit held the proper construction of “antibody” was “an immunoglobulin molecule having a specific amino acid sequence comprising two heavy chains (H chains) and two light chains (L chains),” and the proper construction of “antibody fragment” was “a portion of an antibody” and remanded. On remand, Genentech successfully moved for summary judgment of invalidity of multiple claims for lack of enablement. The Federal Circuit affirmed. The patent fails to teach skilled artisans how to make and use the full scope of claimed antibodies without unreasonable experimentation. View "Baxalta Inc. v. Genentech, Inc." on Justia Law

Columbia’s D093 patent, titled “Heat Reflective Material,” claims “[t]he ornamental design of a heat reflective material. Seirus markets and sells products (e.g., gloves) made with material that it calls HeatWave. Columbia sued Seirus for infringement. the district court granted summary judgment of infringement; a jury awarded Columbia $3,018,174 in damages. On remand, a jury found that Seirus did not infringe.The Federal Circuit vacated the non-infringement judgment, first rejecting arguments concerning the preclusive effect of the prior proceedings. The district court erred by failing to instruct the jury as to the scope of the D093 patent claim (design for a heat reflective material) and, relatedly, the proper scope of comparison prior art. To qualify as comparison prior art, the prior-art design must be applied to the article of manufacture identified in the claim. Here, the issue is not whether the patent’s design (e.g., a wavy pattern) is dictated by function but whether the claimed article to which that design is applied is the same as another article. A natural, relevant consideration for distinguishing one article from another involves looking to the articles’ respective functions. View "Columbia Sportswear North America, Inc.v. Seirus Innovative Accessories, Inc." on Justia Law

The DivX patent explains, in a section titled “Background of the Invention,” that “[t]he present invention relates generally to encoding, transmission and decoding of multimedia files.” In its petition for inter partes review, Netflix asserted that several claims of the patent would have been obvious in view of prior art, Zetts as modified by Kaku. In a section titled “Field of the Invention,” Kaku’s specification states that the invention “relates to motion image apparatuses and, more particularly, to a motion image reproducing apparatus which is applicable to a digital camera for reproducing motion image data recorded on a recording medium.” The Patent Trial and Appeal Board found that Kaku failed to qualify as analogous art.The Federal Circuit vacated and remanded. The Board failed to identify the field of endeavor for either the challenged patent or the prior art and thus failed to establish analogous art under the field of endeavor test. The Board’s directive that Netflix more precisely articulate the relevant field of endeavor to meet its burden was unduly strict. View "Netflix, Inc. v. DivX, LLC" on Justia Law