Wednesday, August 26, 2020
Sealy lost on obviousness grounds:
Because we affirm the Board’s obviousness determination over the Aireloom Heritage reference, we decline to
consider Sealy’s challenges to the other four references.
We have considered Sealy’s remaining arguments and find
them unpersuasive. For the foregoing reasons, we affirm
the Board.
The obviousness analysis for design patents requires
that there be a prior art design that qualifies as a primary
reference. Spigen, 955 F.3d at 1383, 1385. Whether a
prior art design qualifies as a primary reference depends
on whether the prior art reference “creates ‘basically the
same’ visual impression as the claimed design.” Id.
(cleaned up). The determination of whether a prior art design qualifies as a primary reference is a factual issue. Id.
As to copying:
Sealy’s “copying” argument during the reexamination
proceeding was based mainly on the fact that Sealy’s mattress designs were on the market for over a year before
Simmons introduced its alleged copycat products. See Appellant’s Br. 55–57 (citing J.A. 2370–72). The Board, in its
decision on rehearing, stated that it “did not overlook evidence of copying,” but instead “agreed with the examiner’s
general determination as to secondary considerations,”
which included “acknowledging [Sealy’s] assertions as to
copying.” Decision on Rehearing, 2019 WL 1489533, at *2.
Indeed, the examiner’s general determination noted that
Sealy presented argument regarding alleged “copying,”
among other secondary considerations. J.A. 2498. The examiner then found Sealy’s secondary considerations to be
unpersuasive and to not outweigh the strong evidence of
obviousness presented in the Board’s new grounds of rejection. J.A. 2498–99 (“the strong evidence of obviousness
presented in the new grounds of rejection by the Board outweighs the secondary considerations”); see also W. Union
Co. v. MoneyGram Payment Sys., Inc., 626 F.3d 1361, 1373
(Fed. Cir. 2010) (“[W]eak secondary considerations generally do not overcome a strong prima facie case of obviousness.”). While a more comprehensive discussion of
“copying” would be preferred, given the circumstances
here—including the appropriate interpretation of “contrast,” the analysis and application of the prior art, and the
examiner’s and Board’s more detailed discussion of other
secondary considerations—we disagree that the comparatively limited discussion of “copying” alone constitutes a
sufficient basis to disturb the Board’s overall determination of obviousness. See MySpace, Inc. v. GraphOn Corp.,
672 F.3d 1250, 1263–64 (Fed. Cir. 2012) (finding no error
in a district court’s failing to explicitly mention secondary
considerations “when the record establishes that the evidence was properly before and considered by the court”).
Saturday, August 22, 2020
CAFC mentions "obvious to try" in Kross case
We likewise reject Kross’s argument that the Board impermissibly employed an “obvious to try” rationale. Kross’s
arguments in this regard focus on the Board’s statement
that the “reasonable expectation of successfully solving a
known problem using known properties of a known material i[s] generally prima facie obvious.” J.A. 6–7. We do
not read into this statement the error that Kross complains
of. This is not a case, as Kross contends, where “the prior
art gave no indication of critical parameters and no direction as to which of many possibilities is likely to be successful.” Appellant’s Br. 24–25 (quoting In re Copaxone Consol.
Cases, 906 F.3d 1013, 1025 (Fed. Cir. 2018)). As Kross himself contends, Taylor and Germain identified the parameters that would have been of concern to a skilled artisan
(cracking, splitting). Chen teaches that non-gelatin, gel
polymers would be beneficial in fixing these critical parameters (high dimensional stability, crack and tear resistance). That is a far cry from impermissibly requiring
that a skilled artisan, without any guidance from the prior
art, “vary all parameters” until one succeeds. Kubin, 561
F.3d at 1359.
Friday, August 21, 2020
"Security People" loses at the CAFC
The outcome:
Security People, Inc., appeals the district court’s dismissal of its Administrative Procedure Act suit challenging
the constitutionality of the cancellation of its patent in an
inter partes review proceeding. Because Congress foreclosed the possibility of collateral APA review of inter
partes review decisions by district courts, and because Security People cannot bring an APA challenge when the
statutory scheme separately establishes an adequate remedy in a court for its constitutional challenge, we affirm the
district court’s dismissal.
The arguments
The PTO responded to the complaint by moving to dismiss the suit on three grounds: (1) the district court lacked
subject matter jurisdiction because Congress established a
specific means for judicial review of IPR decisions, rendering collateral APA suits in district court inappropriate;
(2) Security People failed to state a claim because it is
barred from raising arguments it could have raised in an
earlier proceeding; and (3) Security People failed to state a
claim because precedent renders its claim meritless.
The district court noted:
The district court agreed with the PTO on the first
ground, dismissing the suit for lack of subject matter jurisdiction. See Sec. People, Inc. v. Iancu, No. 18-cv-06180-
HSG, slip op. at 4 (N.D. Cal. Jun. 10, 2019), ECF No. 28,
(Decision). The court reasoned that because the America
Invents Act (AIA)—codified in relevant part at 35 U.S.C.
§§ 319, 141(c)—provides for “broad Federal Circuit review”
of the Board’s final written decisions, see Decision at 3, but
allows for review “only” in the Federal Circuit, see § 141(c),
Congress discernibly intended to preclude district court review of Board decisions under the APA.
The CAFC noted:
More generally, we agree with the district court that
the statutes providing for exclusive review of the Board’s
final written decisions in this court preclude district courts
from exercising APA jurisdiction over claims challenging
the constitutionality of a final written decision. “[A] statutory scheme of administrative review followed by judicial
review in a federal appellate court [can] preclude[] district
court jurisdiction over a plaintiff’s statutory and constitutional claims” if “Congress’ intent to preclude district court
jurisdiction [is] ‘fairly discernible in the statutory scheme.’”
Elgin, 567 U.S. at 9–10 (quoting Thunder Basin, 510 U.S.
at 207). “To determine whether it is ‘fairly discernible’ that
Congress precluded district court jurisdiction over [Security People’s] claims, we examine the [statute’s] text, structure, and purpose.” Id. at 10.
Dr. Richard Sowinski loses at the CAFC under FRCP 41(b)
The issue:
Dr. Sowinski argues that the merits of patent infringement were not adjudicated in Sowinski I, for the action was
dismissed because he did not comply with the district
court’s local rule for responding to a motion to dismiss. He
argues that this was not a final judgment on the merits,
because the dismissal was based on the technicality of a
local deadline. He states that the imposition of res judicata
on this basis is “manifestly unjust” because there was no
trial of the question of infringement, and that if an infringement suit is now barred his patent is essentially invalidated because the CARB Cap-and-Trade Program is
the only known infringing activity.
BUT
Federal Rule of Civil Procedure 41(b) provides that a
dismissal for failure to prosecute “operates as an adjudication on the merits,” with exceptions not here applicable:
41(b) Involuntary Dismissal; Effect. If the plaintiff fails to prosecute or to comply with these rules
or a court order, a defendant may move to dismiss
the action or any claim against it. Unless the dismissal order states otherwise, a dismissal under
this subdivision (b) and any dismissal not under
this rule—except one for lack of jurisdiction, improper venue, or failure to join a party under Rule
19—operates as an adjudication on the merits. . . .
The Federal Circuit has applied these principles. See, e.g.,
Nystrom v. Trex Co., 580 F.3d 1281, 1284-85 (Fed. Cir.
2009) (“In its simplest construct, [claim preclusion bars]
the relitigation of a claim, or cause of action, or any possible
defense to the cause of action which is ended by a judgment
of the court.”); Senju, supra.
Monday, August 10, 2020
Blackbird prevails against Fitbit at CAFC
The outcome
Blackbird Tech LLC, d/b/a Blackbird Technologies,
owns U.S. Patent No. 6,434,212, which describes and
claims a device that counts an individual’s steps and, based
on the length and rate of those steps, provides the individual with information such as distance traveled and speed.
Fitbit, Inc. and Wahoo Fitness LLC each sought an inter
partes review of claims 2, 5, and 6 of the ’212 patent. The
Patent Trial and Appeal Board of the Patent and Trademark Office instituted the requested reviews and consolidated the proceedings. The Board ultimately determined
that Fitbit had proven claim 6 of the ’212 patent unpatentable for obviousness but had not proven claims 2 and 5 unpatentable. See FitBit, Inc. v. Blackbird Tech, LLC, No.
IPR2017-02012, 2019 WL 1118863 (P.T.A.B. Mar. 11,
2019). Blackbird appeals the Board’s ruling on claim 6. We
affirm.
AND
But the Board’s conclusion of unpatentability did not
rely on a modification of Kato’s equation—it relied on a
finding that a relevant skilled artisan would consider
Kato’s equation to teach claim 6’s limitation. To determine
the “meaning of a prior art reference,” the Board must incorporate “the understanding of an artisan of ordinary
skill.” Finisar Corp. v. DirecTV Grp., Inc., 523 F.3d 1323,
1336 (Fed. Cir. 2008). Here, the Board determined that a
relevant skilled artisan would be an engineer with either a
master’s degree or multiple years of work experience. FitBit, 2019 WL 1118863, at *5. The Board could readily find
that such a person would understand Kato’s teaching of a
very simple multiplicative relationship to teach the form of
that relationship that involves the elementary process of
unit cancellation between numerator and denominator.
Accordingly, the Board had a sufficient basis to find that a
relevant artisan would have considered Kato’s method for
calculating distance traveled to be identical to claim 6’s
limitation.
The CAFC does PACER in NVLSP v. UNITED STATES: PACER fees LIMITED to the amount needed to cover expenses incurred in services
The outcome:
These interlocutory cross-appeals challenge the district
court’s interpretation of a statutory note to 28 U.S.C.
§ 1913 permitting the federal judiciary to charge “reasonable fees”
for “access to information available through automatic data processing equipment.”
Plaintiffs contend that
under this provision unlawfully excessive fees have been
charged for accessing federal court records through the
Public Access to Court Electronic Records (PACER) system
and that the district court identifies too little unlawful excess.
The government argues that the district court identifies too much (and also that the district court lacked
jurisdiction). We conclude that the district court got it just
right. We therefore affirm and remand for further proceedings.
Some history
In April 2016, plaintiffs—three national nonprofit organizations that have downloaded public court records via
PACER—brought a class action against the United States,
alleging that the incurred PACER fees “exceeded the
amount that could lawfully be charged” under § 1913 Note
because the fees did not reflect the cost of operating
PACER alone. J.A. 87 ¶ 34. Plaintiffs alleged that each
individual download of a public record for which they were
charged gave rise to a separate “illegal exaction” claim—
that is, a claim that money was “improperly paid, exacted,
or taken from the claimant” in violation of law, Norman v.
United States, 429 F.3d 1081, 1095 (Fed. Cir. 2005).
J.A. 75, 87 ¶ 34. Asserting subject-matter jurisdiction under the Little Tucker Act, 28 U.S.C. § 1346, plaintiffs
sought the “return or refund of the excessive PACER fees”
collected over the previous six years, from 2010 to 2016.5
J.A. 77 ¶ 5; J.A. 87 ¶ 34.
Turning to the merits, the only issue presented in the
main appeal is one of statutory interpretation, as neither
party has identified any material disputed factual issues at
this stage. We review de novo the district court’s statutory
interpretation. BASR P’ship v. United States,
915 F.3d 771, 776 (Fed. Cir. 2019). “We focus our inquiry
on the statutory language.” Id. Our “first step ‘is to determine whether the language at issue has a plain and unambiguous meaning.’” Barnhart v. Sigmon Coal Co.,
534 U.S. 438, 450 (2002) (quoting Robinson v. Shell Oil Co.,
519 U.S. 337, 340 (1997)). In making this assessment, we
secondarily consider the surrounding legislative history
and principles of constitutional avoidance.
The outcome:
We agree with plaintiffs and amici that the First
Amendment stakes here are high. See generally Br. of
Amici American Civil Liberties Union et al. (discussing the
First Amendment right of access to judicial proceedings
and records, including via PACER). If large swaths of the
public cannot afford the fees required to access court records, it will diminish the public’s ability “to participate in
and serve as a check upon the judicial process—an essential component in our structure of self-government.” Globe
Newspaper Co. v. Superior Court for Norfolk Cty.,
457 U.S. 596, 606 (1982). Such concerns bolster our rejection of the government’s more sweeping interpretation of
§ 1913 Note as permitting EPA fees high enough to cover
all electronic access to court information. But we do not
foresee the district court’s middle-ground interpretation
permitting EPA fees to be used for PACER, CM/ECF, and
EBN as resulting in a level of user fees that will significantly impede public access to courts.16 As for the nondelegation concern, we agree with the district court that both
the text and legislative history of § 1913 Note demonstrate
that Congress adequately authorized the use of EPA fees
for more than just operating PACER. See Summary Judgment Opinion, 291 F. Supp. 3d at 142–43.
We therefore hold that § 1913 Note limits PACER fees
to the amount needed to cover expenses incurred in services providing public access to federal court electronic
docketing information.
Tuesday, August 04, 2020
Appellant TCL COMMUNICATION TECHNOLOGY HOLDINGS LIMITED loses at CAFC
The outcome:
In this appeal, the parties dispute whether the patentee was permitted to prove that the Appellants’ products infringed the claims of the asserted patent by showing
that: (1) the patent claims are essential to mandatory aspects of the Long-Term Evolution (“LTE”) standard; and (2)
the accused products practice that standard. Appellants
assert that, if Appellee wanted to resort to that theory of
infringement, it was required to ask the court to decide the
question of the claims’ essentiality to the standard in the
claim construction context and that the court needed to decide that question as a matter of law. Unsurprisingly, Appellee disagrees. We find no error in the submission of
these questions to the jury in the context of an infringement trial.
AND
Accordingly, we reject TCL’s reading of Fujitsu.
Where, as here, there are material disputes of fact regarding whether asserted claims are in fact essential to all implementations of an industry standard, the question of
essentiality must be resolved by the trier of fact in the context of an infringement trial. Viewed through this lens, we
find that substantial evidence fully supports the jury’s infringement verdict