Justia Intellectual Property Opinion Summaries

Mitek Systems, Inc. (Mitek) filed a declaratory judgment action against United Services Automobile Association (USAA) seeking a declaration of non-infringement concerning four patents related to its MiSnap software product. Mitek argued that it faced potential liability for direct, induced, and contributory infringement, as well as indemnification demands from its licensees after USAA sent them letters seeking to sell licenses to USAA patents.The United States District Court for the Eastern District of Texas initially dismissed Mitek’s complaint for lack of subject-matter jurisdiction and alternatively declined to exercise jurisdiction. On appeal, the Federal Circuit vacated the dismissal and remanded for further proceedings, instructing the district court to conduct a more detailed analysis. On remand, the district court again dismissed the case, finding no subject-matter jurisdiction and reiterating its decision to decline jurisdiction even if it existed.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the district court’s decision. The court agreed that Mitek did not have a reasonable apprehension of suit for direct, induced, or contributory infringement based on the record evidence, including USAA’s allegations and claim charts from prior litigation. The court also found that Mitek’s potential indemnification liability was not sufficient to establish jurisdiction, as the indemnification agreements contained applicable carve-outs and did not create a reasonable potential for liability. Additionally, the court upheld the district court’s discretionary decision to decline jurisdiction, noting that intervention in future litigation involving Mitek’s customers would be a more effective remedy. View "MITEK SYSTEMS, INC. v. UNITED SERVICES AUTOMOBILE ASSOCIATION " on Justia Law

Agilent Technologies, Inc. appealed two final written decisions by the Patent Trial and Appeal Board (Board) that determined all claims of U.S. Patent Nos. 10,337,001 and 10,900,034 to be unpatentable. The patents in question relate to CRISPR-Cas systems for gene editing, specifically focusing on chemically modified guide RNAs (gRNAs) used in these systems. The Board found that the claims were anticipated by prior art, specifically a reference known as Pioneer Hi-Bred, and that certain claims were also obvious in view of additional references, Threlfall and Deleavey.The Board's decisions were based on findings that Pioneer Hi-Bred disclosed the claimed gRNA functionality and that the reference was enabling. The Board also found that the additional references provided sufficient motivation and reasonable expectation of success for a person of ordinary skill in the art to combine the teachings of Pioneer Hi-Bred with those of Threlfall and Deleavey.The United States Court of Appeals for the Federal Circuit reviewed the Board's findings. The court affirmed the Board's determination that Pioneer Hi-Bred disclosed the claimed gRNA functionality, noting that substantial evidence supported the Board's findings. The court also agreed with the Board's conclusion that Pioneer Hi-Bred was an enabling reference, rejecting Agilent's arguments that undue experimentation would be required to practice the disclosed invention.Additionally, the court upheld the Board's finding that the dependent claims, which included specific chemical modifications, were obvious in view of the combined teachings of Pioneer Hi-Bred, Threlfall, and Deleavey. The court found that the Board had provided a thorough analysis and that substantial evidence supported the Board's conclusion that a person of ordinary skill in the art would have had a reasonable expectation of success in making the claimed modifications.In conclusion, the Federal Circuit affirmed the Board's decisions, holding that all claims of the '001 and '034 patents were unpatentable. View "AGILENT TECHNOLOGIES, INC. v. SYNTHEGO CORP. " on Justia Law

Jekyll Island State Park Authority, a Georgia entity, operates the Summer Waves Water Park and owns the federally registered trademark for SUMMER WAVES. In 2021, Jekyll Island discovered that Polygroup Macau Limited, an intellectual property holding company registered in the British Virgin Islands, had registered nearly identical SUMMER WAVES marks. Polygroup Macau’s general counsel had also asked to buy Jekyll Island’s domain name, summerwaves.com. Jekyll Island sued Polygroup Macau for trademark infringement and to cancel Polygroup Macau’s marks. Polygroup Macau moved to dismiss for lack of personal jurisdiction, arguing it did not sell products in the United States using its trademarks.The United States District Court for the Southern District of Georgia granted Polygroup Macau’s motion to dismiss, concluding that Polygroup Macau did not have sufficient contacts with the United States to support personal jurisdiction. The court noted that Polygroup Macau did not sell products in the United States using its trademarks and only permitted other entities to do so, making the connection between Polygroup Macau’s activities and Jekyll Island’s claims too attenuated.The United States Court of Appeals for the Eleventh Circuit reviewed the case and disagreed with the district court’s conclusion. The Eleventh Circuit found that Polygroup Macau had purposefully availed itself of the benefits of United States law by registering and maintaining trademarks with the USPTO, allowing its sister companies to use those trademarks to sell products in the United States, and marketing specifically to U.S. consumers. The court held that the connection between Jekyll Island’s claims and Polygroup Macau’s activities in the United States was close enough to support specific jurisdiction. The Eleventh Circuit reversed the district court’s dismissal and remanded the case for consideration on the merits. View "Jekyll Island-State Park Authority v. Polygroup Macau Limited" on Justia Law

Fraunhofer-Gesellschaft zur Förderung der angewandten Forschung e.V. (Fraunhofer) is a non-profit research organization that developed and patented multicarrier modulation (MCM) technology used in satellite radio. In 1998, Fraunhofer granted WorldSpace International Network, Inc. (WorldSpace) an exclusive license to its MCM technology patents. Fraunhofer also collaborated with XM Satellite Radio (XM) to develop a satellite radio system, requiring XM to obtain a sublicense from WorldSpace. XM later merged with Sirius Satellite Radio to form Sirius XM Radio Inc. (SXM), which continued using the XM system. In 2010, WorldSpace filed for bankruptcy, and Fraunhofer claimed the Master Agreement was terminated, reverting patent rights to Fraunhofer. In 2015, Fraunhofer notified SXM of alleged patent infringement and filed a lawsuit in 2017.The United States District Court for the District of Delaware initially dismissed the case, ruling SXM had a valid license. The Federal Circuit vacated this decision and remanded the case. On remand, the district court granted summary judgment for SXM, concluding Fraunhofer's claims were barred by equitable estoppel due to Fraunhofer's delay in asserting its rights and SXM's reliance on this delay to its detriment.The United States Court of Appeals for the Federal Circuit reviewed the case and reversed the district court's summary judgment. The Federal Circuit agreed that Fraunhofer's delay constituted misleading conduct but found that SXM did not indisputably rely on this conduct in deciding to migrate to the high-band system. The court noted that SXM's decision was based on business pragmatics rather than reliance on Fraunhofer's silence. The case was remanded for further proceedings to determine if SXM relied on Fraunhofer's conduct and if it was prejudiced by this reliance. View "Fraunhofer-Gesellschaft v. Sirius XM Radio Inc." on Justia Law

Amgen Inc., a biotechnology company, holds patents in the U.S. and South Korea for denosumab, a drug used in treating certain bone cancers. Amgen filed patent infringement suits against Celltrion Inc. (Celltrion Korea) in both countries. To support its case, Amgen sought discovery from Celltrion Korea’s subsidiary, Celltrion USA, located in New Jersey. Amgen filed an application under 28 U.S.C. § 1782 in the District of New Jersey to subpoena Celltrion USA for documents and testimony related to Celltrion Korea’s denosumab products.The Magistrate Judge granted Amgen’s § 1782 application, rejecting Celltrion USA’s argument that § 1782 cannot compel it to produce information held by its foreign parent company. The Judge also found the request not unduly burdensome and ordered the parties to meet and confer to agree on a confidentiality agreement. The District Court affirmed the Magistrate Judge’s order, leading Celltrion USA to appeal.The United States Court of Appeals for the Third Circuit reviewed the case to determine if the order under § 1782 was final and thus appealable under 28 U.S.C. § 1291. The Court concluded that the order was not final because the scope of permissible discovery had not been conclusively defined. The Court emphasized that without a definite scope of discovery, it could not properly review whether the District Court had abused its discretion. Consequently, the Third Circuit dismissed the appeal for lack of jurisdiction, holding that an order granting discovery under § 1782 but leaving the scope of discovery unresolved is not a final order under § 1291. View "Amgen Inc v. Celltrion USA Inc" on Justia Law

Dolby Laboratories Licensing Corporation (Dolby) owns U.S. Patent No. 10,237,577, which is directed to a prediction method using an in-loop filter. Unified Patents, LLC (Unified) filed a petition for inter partes review (IPR) challenging claims 1, 7, and 8 of the patent as anticipated and obvious. Unified certified it was the sole real party in interest (RPI). Dolby identified nine other entities it believed should also have been named as RPIs. The Patent Trial and Appeal Board (Board) declined to adjudicate whether these entities were RPIs and instituted the review with Unified as the sole RPI. The Board ultimately held that Unified failed to show any of the challenged claims were unpatentable.The Board's final written decision did not address the RPI dispute, explaining that there was no evidence any of the alleged RPIs were time-barred or estopped from bringing the IPR, or that Unified purposefully omitted any RPIs to gain an advantage. Dolby appealed the Board's decision, arguing that the Board's refusal to adjudicate the RPI dispute caused various harms, including potential breaches of license agreements, conflicts of interest, improper estoppel in future proceedings, and disincentivizing Unified from filing IPRs.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that Dolby failed to establish an injury in fact sufficient to confer standing to appeal. The court found Dolby's claims of harm to be too speculative, noting that Dolby did not provide evidence of any actual or imminent injury. The court dismissed the appeal for lack of standing and did not reach the merits of Dolby's substantive challenges. View "Dolby Laboratories Licensing Corporation v. Unified Patents, LLC" on Justia Law

Alnylam Pharmaceuticals, Inc. filed two lawsuits against Moderna, Inc., ModernaTX, Inc., and Moderna US, Inc. (collectively Moderna) in the District Court for the District of Delaware. Alnylam alleged that Moderna’s mRNA-based COVID-19 vaccine SPIKEVAX® infringed U.S. Patent Nos. 11,246,933 and 11,382,979, which cover cationic lipids used for delivering nucleic acids. The dispute centered on the interpretation of the term “branched alkyl” in the patent claims, specifically whether it required a carbon atom bound to at least three other carbon atoms.The District Court for the District of Delaware concluded that Alnylam had acted as a lexicographer in defining “branched alkyl” in the patent specification. The court adopted Moderna’s proposed construction, which required that a “branched alkyl” must have a carbon atom bound to at least three other carbon atoms. Based on this construction, the parties stipulated that Moderna did not infringe the asserted patent claims, as Moderna’s product did not meet this requirement. The district court entered final judgment of noninfringement accordingly.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the district court’s decision. The Federal Circuit agreed that the specification’s definition of “branched alkyl” was clear and unequivocal, requiring a carbon atom bound to at least three other carbon atoms. The court found no evidence in the claims, specification, or prosecution history that specified otherwise for the asserted claims. Consequently, the Federal Circuit upheld the district court’s claim construction and the resulting judgment of noninfringement. View "ALNYLAM PHARMACEUTICALS, INC. v. MODERNA, INC. " on Justia Law

LADS Network Solutions, Inc. sued Agilis Systems, LLC and its subsidiaries for copyright infringement of LADS’s courier management software, GPStrac. LADS licensed GPStrac to Agilis from 2004 to 2009 and sought copyright protection in 2014. LADS’s application claimed the first publication date was May 1, 2000, but the Copyright Office found a 2004 copyright notice within the source code. LADS resubmitted the correct code, and the Copyright Office approved the copyright. LADS alleged Agilis continued using GPStrac after the license expired.The United States District Court for the Eastern District of Missouri granted summary judgment to Agilis, invalidating LADS’s copyright under 17 U.S.C. § 411(b). The court found that LADS had knowledge of inaccuracies in the application due to references to APIs that did not exist on the claimed publication date. The district court rejected LADS’s argument that § 411(b)(1) requires intent to defraud the Copyright Office.The United States Court of Appeals for the Eighth Circuit reviewed the case de novo. The court found a genuine dispute of material fact regarding whether LADS had actual knowledge of the inaccuracies in the application. The court noted that the API references alone did not necessarily provide actual knowledge of the code’s creation date. Agilis failed to show that LADS knew the API’s creation date from any source. The court held that this factual dispute precluded summary judgment and reversed the district court’s decision, remanding the case for further proceedings. View "LADS Network Solutions, Inc. v. Agilis Systems, LLC" on Justia Law

Ogen and Dorit Perry, along with their limited partnership Dahlex LP, sought a writ of mandate to compel Milestone Financial LLC and its managers to produce corporate records under the California Revised Uniform Limited Liability Company Act. The trial court partially granted the petition, ordering the disclosure of some records but redacting member names and addresses, deeming the member list a protected trade secret. The court also declined to order the production of audited records.Milestone appealed, arguing the Perrys lacked standing, the records request did not meet statutory standards, and the redaction order should have included more documents. The Perrys cross-appealed, contending the member list is not a trade secret and the court erred in not ordering audited records. They also appealed the trial court's order on attorney fees and costs, arguing the awarded amount did not reflect the findings in the writ order and was an abuse of discretion.The California Court of Appeal, Sixth Appellate District, found substantial evidence supporting the trial court's decision that the Perrys' request was reasonably related to their interests. The court affirmed the trial court's finding that the member list is a trade secret but directed the trial court to amend its order to require Milestone to provide financial statements accompanied by the appropriate report or certificate. The appellate court also reversed the attorney fee award and remanded for reconsideration, requiring the trial court to provide a more detailed explanation for the reduced fee award. The judgment was otherwise affirmed, and each party was ordered to bear its own costs on appeal. View "Perry v. Stuart" on Justia Law

Carroll Shelby Licensing, Inc. and Carroll Hall Shelby Trust filed a lawsuit against Denice Halicki and her associated entities, alleging that Halicki's copyright claims over the "Eleanor" Ford Mustangs were invalid. Halicki counterclaimed, asserting that Shelby's "GT-500CR" Mustangs infringed her copyright in Eleanor, a collection of Mustangs featured in four films. The dispute also involved claims of breach of a prior settlement agreement between the parties.The United States District Court for the Central District of California held that Eleanor was not entitled to character copyright protection and dismissed Halicki’s breach of contract claim based on the settlement agreement. The court also denied Shelby’s request for a declaration that the GT-500CR did not infringe any of Halicki’s rights.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court’s summary judgment that Eleanor was not entitled to character copyright protection. The Ninth Circuit applied the Towle test and concluded that Eleanor did not have conceptual qualities, consistent traits, or distinctive elements necessary for character copyright protection. The court also affirmed the district court’s judgment that Shelby did not violate the settlement agreement, which prohibited Shelby from copying only Eleanor’s distinctive hood and inset lights.However, the Ninth Circuit reversed the district court’s denial of declaratory relief and remanded the case for the purpose of issuing the appropriate declaration. The appellate court held that a declaration would clarify and settle the legal relations between Shelby and Halicki and provide Shelby relief from the uncertainty that led to the proceedings. View "CARROLL SHELBY LICENSING, INC. V. HALICKI" on Justia Law