Justia Intellectual Property Opinion Summaries

Plaintiff appealed the district court's grant of summary judgment in favor of defendant on the grounds that plaintiff's trade dress registrations, which cover the shape and color scheme of its chicken feeder products, are functional and thus only eligible for patent law's protection of utilitarian inventions. The Fourth Circuit affirmed the district court's grant of summary judgment to defendant on plaintiff's claims of trade dress infringement under the Lanham Act and North Carolina common law. The court held that the total feeder profile is functional and ineligible for trade dress protection. The court explained that, because the color trade dress was placed on the supplemental trademark register, rather than the principal register, it is presumed functional, and plaintiff bears the burden of proving non-functionality. In this case, the court held that plaintiff cannot do so because its own utility patents and witness testimony establish that the red pan and gray spokes serve the functional purpose of attracting chickens to feed. Finally, the court held that the district court's order recommending a trial sanction for spoliation of evidence was moot. View "CTB, Inc. v. Hog Slat, Inc." on Justia Law

The Ninth Circuit affirmed the district court's grant of summary judgment to defendants in an action brought by plaintiff, a licensing company, alleging that the Burbank High School student show choirs failed to obtain licenses for their use of copyrighted sheet music in arranging a show choir performance. The panel held that plaintiff lacked standing to sue as to three of the four musical works at issue, and that the defense of fair use rendered the use of the fourth work noninfringing. In regard to the three works, plaintiff received its interests in the three songs from individual co-owners of copyright, without the consent of the other co-owners, and therefore held only nonexclusive licenses in those works. The panel held that the use of the fourth work was a fair use in light of the limited and transformative nature of the use and the work's nonprofit educational purposes in enhancing the educational experience of high school students. Finally, the panel held that the district court abused its discretion in denying defendants' motion for attorneys' fees under 17 U.S.C. 505, and remanded for the calculation of the award. View "Tresóna Multimedia, LLC v. Burbank High School Vocal Music Ass'n" on Justia Law

In 1996, Intersal, a marine salvage company, discovered the shipwreck of the Queen Anne’s Revenge off the North Carolina coast. North Carolina, the shipwreck’s legal owner, contracted with Intersal to conduct recovery. Intersal hired videographer Allen to document the efforts. Allen recorded the recovery for years. He registered copyrights in all of his works. When North Carolina published some of Allen’s videos and photos online, Allen sued for copyright infringement, arguing that the Copyright Remedy Clarification Act of 1990 (CRCA, 17 U.S.C. 511(a)) removed the states’ sovereign immunity in copyright infringement cases. The Supreme Court affirmed the Fourth Circuit, ruling in favor of North Carolina. Congress lacked the authority to abrogate the states’ immunity from copyright infringement suits in the CRCA. A federal court may not hear a suit brought by any person against a nonconsenting state unless Congress has enacted “unequivocal statutory language” abrogating the states’ immunity from suit and some constitutional provision allows Congress to have thus encroached on the states’ sovereignty. Under existing precedent, neither the Intellectual Property Clause, Art. I, section 8, cl. 8, nor Section 5 of the Fourteenth Amendment, which authorizes Congress to “enforce” the commands of the Due Process Clause, provides that authority. View "Allen v. Cooper" on Justia Law

Windy CIty’s patents share a common specification and are generally related to methods for communicating over a computer-based network. Exactly one year after being served with Windy City’s infringement complaint, Facebook timely petitioned for inter partes review (IPR). Windy City had not yet identified the specific claims it was asserting in the infringement proceeding. The Patent Trial and Appeal Board instituted IPR. After Windy City identified the claims it was asserting in the infringement litigation, Facebook filed two additional petitions for IPR of additional claims and motions for joinder to the already instituted IPRs. The one-year time bar of 35 U.S.C. 315(b) had passed. The Board nonetheless instituted new IPRs and granted joinder, then held that Facebook had shown by a preponderance of the evidence that some of the challenged claims, including several claims only challenged in the later-joined proceedings, are unpatentable as obvious but had failed to show that others were unpatentable. The Federal Circuit vacated in part. The Board erred in allowing Facebook to join itself to a proceeding in which it was already a party and in allowing Facebook to add new claims to the IPRs through that joinder. The court held that the obviousness determinations on the originally instituted claims are supported by substantial evidence. View "Facebook, Inc. v. Windy City Innovations, LLC" on Justia Law

In 1996, two doctors discovered cell-free fetal DNA in maternal plasma and serum, previously discarded as medical waste. In 2001, they obtained a patent, claiming a method for detecting the small fraction of paternally inherited cell-free fetal DNA in the plasma and serum of a pregnant woman. In 2015, the Federal Circuit (Ariosa) held that the patent's claims were invalid under 35 U.S.C. 101, as directed to “matter that is naturally occurring.” The patents at issue are unrelated to the Ariosa patent and begin by acknowledging the "Ariosa" natural phenomenon, then identify a problem that was the subject of further research: there was no known way to distinguish and separate the tiny amount of fetal DNA from the vast amount of maternal DNA. The patents use an additional discovery to claim methods of preparing a fraction of cell-free DNA that is enriched in fetal DNA. The Federal Circuit concluded that the claims are patent-eligible. These inventors patented methods of preparing a DNA fraction. The claimed methods utilize the natural phenomenon that the inventors discovered by employing physical process steps to selectively remove larger fragments of cell-free DNA to enrich a mixture in cell-free fetal DNA. Those steps change the composition of the mixture, resulting in a DNA fraction that is different from the naturally-occurring fraction in the mother’s blood. View "Illumina, Inc. v. Ariosa Diagnostics, Inc." on Justia Law

The Eighth Circuit affirmed the district court's order granting SnugglyCat's motion to voluntarily dismiss this Lanham Act action without prejudice pursuant to Federal Rule of Civil Procedure 41(a)(2). The court rejected appellants' contention that the district court failed to consider their argument regarding legal prejudice; the court saw no need to adopt a per se rule that would bar dismissal without prejudice in all cases in which a plaintiff has sued under a fee-shifting statute and found that the district court did not commit an error of law; and the district court did not commit a clear error of judgment where it considered all the relevant factors, including SnugglyCat's purported reason for seeking dismissal of the action without prejudice—its inability as a small company to sustain the cost of continuing suit—and expressly found the motion to have been made in good faith. View "SnugglyCat, Inc. v. Opfer Communications, Inc." on Justia Law

The Ninth Circuit affirmed the district court's dismissal of plaintiff's action alleging copyright infringement by the Disney movie Inside Out of plaintiffs' characters called The Moodsters. After plaintiff developed The Moodsters, anthropomorphized characters representing human emotions, she pitched to entertainment and toy companies around the country, including The Walt Disney Company. The panel held that, under DC Comics v. Towle, 802 F.3d 1012 (9th Cir. 2015), lightly sketched characters such as The Moodsters, which lack consistent, identifiable character traits and attributes, do not enjoy copyright protection. Furthermore, under Warner Bros. Pictures v. Columbia Broad. Sys., 216 F.2d 945, 950 (9th Cir. 1954), The Moodsters are chessman in the game of telling the story. In this case, the panel applied the alternative "story being told" test and held that The Moodsters as an ensemble are no more copyrightable than the individual characters. Finally, the panel held that the district court did not err in dismissing plaintiff's claim for an implied-in-fact contract where plaintiff was required under California law to do more than plead a boiler-plate allegation, devoid of any relevant details. View "Daniels v. The Walt Disney Co." on Justia Law

Hafco’s patent, issued in 2013, covers a “Rock Dust Blower” used to distribute rock dust in areas such as coal mines, where rock dust is applied to interior surfaces, to control the explosive hazards of coal dust. Hafco contracted with GMS to serve as the distributor of Hafco’s blower for sale to mining customers. In 2015, Hafco terminated this arrangement, stating that performance was poor. GMS then produced a rock dust blower for sale to mining customers. Hafco sued for infringement. GMS filed an unsuccessful pretrial motion for patent invalidity. The jury found GMS liable for willful infringement and awarded damages of $123,650. The court entered a permanent injunction against infringement but remitted the damages award to zero, offering a new trial on damages. The Federal Circuit affirmed the judgment of infringement and the denial of GMS’ request for a new trial and remanded the case. The jury was correctly instructed that the question is how the ordinary observer would view the article as a whole. Given that there was no prior art introduced at trial, no attempt by GMS to introduce the prior art, and no proposed jury instruction on the issue, the purported exclusion of this instruction cannot be an error. View "Hafco Foundry & Machine Co. v. GMS Mine Repair & Maintenance, Inc." on Justia Law

PMC’s patent is directed to methods for enhancing broadcast communications with user-specific data by embedding digital signals in those broadcast communications. The specification discloses a number of embodiments that include analog broadcast signals with embedded digital signals. On inter partes review, the Patent Trial and Appeal Board found certain claims unpatentable on anticipation and obviousness grounds. The Federal Circuit reversed as to certain claims and otherwise affirmed. The Board erred in construing the claim term “an encrypted digital information transmission including encrypted information” as including mixed digital and analog signals. The prosecution history indicates that the disputed claim term is limited to all-digital signals. View "Personalized Media Communications, LLC v. Apple Inc." on Justia Law

CTDI is a worldwide engineering, repair, and logistics company with its principal place of business in Pennsylvania. Since 2007, CTDI has developed, manufactured, and used its “Gen3” and “Gen5” test systems within the U.S. for testing set-top boxes and multimedia devices. The test systems were designed and developed at CTDI’s Pennsylvania facility. Contec “provides repair, test and reverse logistics for electronics hardware used in a broad range of markets.” Contec owns patents for the “Arrangement and Method for Managing Testing and Repair of Set-Top Boxes” and for a “Multimedia Device Test System.” The patented systems were designed and developed at Contec’s New York headquarters. Three of the six inventors of the patents reside in New York; another left Contec and works in CTDI’s, New York facility. CTDI sought a declaratory judgment in a Pennsylvania federal court that its test systems do not infringe Contec’s patents. Six days later, Contec sued CTDI for infringement in the Northern District of New York. The Pennsylvania court dismissed, finding that CTDI’s anticipatory filing was made in bad faith during active licensing discussions; the court found that equitable considerations warranted departure from the first-to-file rule. The Federal Circuit affirmed, finding that the district court did not abuse its broad discretion under the Declaratory Judgment Act, 28 U.S.C. 2201(a) and pursuant to the first-to-file rule. View "Communications Test Design, Inc. v. Contec, LLC" on Justia Law