Justia Intellectual Property Opinion Summaries
Novartis AG v. Ezra Ventures LLC
Ezra filed an Abbreviated New Drug Application (ANDA) for a generic version of Novartis’s multiple sclerosis drug, Gilenya®. Novartis sued for infringement, asserting the 229 patent. Because the 229 patent was filed before the 1994 Uruguay Round Agreements Act (URAA), its patent term was 17 years. It was set to expire in 2014. Novartis secured a patent term extension (PTE) of five years, 35 U.S.C. 156. Section 156 was enacted to restore the value of the patent term that an owner loses because the product cannot be commercially marketed without regulatory, e.g., FDA, approval. Multiple patents may cover the same product, but only one patent’s term can be extended. Novartis also owned the 565 patent covering Gilenya® and sought PTE on the 229 patent, which now expires in February 2019. Because the 565 patent issued from an application filed after the URAA, its 20-year term expired in 2017. The court denied Ezra’s motion for judgment on the pleadings, where Ezra argued that the extension of the 229 patent’s term beyond the life of the 565 patent de facto extended the life of the 565 patent and rendered the 229 patent invalid for double patenting; the two patents' claims are not patentably distinct. Ezra stipulated that its ANDA product infringes and dropped the double patenting issues. The court found the 229 patent valid, unexpired, enforceable, and infringed, and enjoined Ezra’s ANDA product until the 2019 expiration. The Federal Circuit affirmed. Obviousness-type double patenting does not invalidate an otherwise valid PTE. View "Novartis AG v. Ezra Ventures LLC" on Justia Law
Maxchief Investments Ltd. v. Wok & Pan, Ind., Inc.
Maxchief has its principal place of business in China and distributes one of the plastic tables it manufactures (UT-18) exclusively through Meco, which is located in Tennessee. Meco sells the UT-18 tables to retailers. Wok competes with Maxchief in the market for plastic folding tables, and also has its principal place of business in China. Wok owns patents directed to folding tables. Wok sued Maxchief’s customer, Staples, in the Central District of California, alleging that Staples’ sale of Maxchief’s UT-18 table infringed the Wok patents. Staples requested that Meco defend and indemnify Staples. Meco requested that Maxchief defend and indemnify Meco and Staples. The Staples action is stayed pending the outcome of this case. Maxchief then sued Wok in the Eastern District of Tennessee, seeking declarations of non-infringement or invalidity of all claims of the Wok patents and alleging tortious interference with business relations under Tennessee state law. The district court dismissed the declaratory judgment claim for lack of personal jurisdiction. With respect to the state law tortious interference claim, the district court concluded it lacked subject matter jurisdiction. The Federal Circuit affirmed. Wok lacked sufficient contacts with the forum state of Tennessee for personal jurisdiction as to both the declaratory judgment claim and the tortious interference claim. View "Maxchief Investments Ltd. v. Wok & Pan, Ind., Inc." on Justia Law
Schlafly v. Saint Louis Brewery, LLC
Saint Louis Brewery (SLB), a craft brewery founded in 1989 by Thomas Schlafly and Daniel Kopman, began selling beer with the SCHLAFLY logo in 1991 and asserts that it “has continuously sold beer under its SCHLAFLY trademark” ever since. In 2011, SLB applied for trademark registration for the word mark “SCHLAFLY” for use with various types of beer. The application drew opposition from Phyllis Schlafly, Thomas’s aunt and a well-known conservative activist (now deceased), and Bruce Schlafly (Opposers). The Trademark Trial and Appeal Board denied the opposition. The Federal Circuit affirmed the registration, rejecting an argument that the Board did not recognize that the mark was “primarily merely a surname,” and improperly accepted that the mark has acquired secondary meaning although the applicant did not provide survey evidence. The court also rejected claims of violation of the Opposers’ First Amendment, Fifth Amendment, and Due Process rights and protections. A trademark registration does not constitute a “taking” and the trademark opposition procedure, of which the Opposers have availed themselves, provides an appropriate process of law. View "Schlafly v. Saint Louis Brewery, LLC" on Justia Law
In re: McGraw-Hill Global Education Holdings, LLC
The Photographers entered into representation agreements with Corbis, a photography agency, providing Corbis authority to sub-license their works to third parties on a non-exclusive, fixed-duration basis. The agreements include forum selection clauses and give Corbis sole authority to make and settle claims for unauthorized use of images. If Corbis declines to bring such a claim within 60 days, the Photographers may bring actions. Corbis sub-licensed their photographs to McGraw-Hill. The invoices included the name of the photographer responsible for the work and incorporated Corbis’ standard “Terms and Conditions,” which included mandatory, exclusive forum selection clauses. The Photographers each brought a copyright action against McGraw-Hill in the Eastern District of Pennsylvania. McGraw-Hill moved to transfer venue under 28 U.S.C. 1404(a), arguing that the disputes implicate the Corbis–McGraw-Hill agreements, under which the proper venue was the Southern District of New York. One judge denied the motion, reasoning that the claims are based purely on copyright law, so the action is not a “dispute regarding th[e] Agreement[s],” and not subject to the forum selection clauses. Another judge reasoned that the copyright claims depend upon the interpretation of the Corbis–McGraw-Hill agreements so that the photographer was subject to the forum selection clause as an intended third-party beneficiary. In consolidated actions, the Third Circuit concluded that the photographers are not bound because they are not intended beneficiaries of the agreements, nor are they closely related parties. Because the erring district court’s mistakes were not clear or indisputable, the court declined to grant mandamus relief. View "In re: McGraw-Hill Global Education Holdings, LLC" on Justia Law
Gordon v. Drape Creative, Inc.
The Ninth Circuit filed an order granting defendants' petition for panel rehearing, withdrawing the panel’s opinion, and ordering the filing of a superseding opinion. The panel also filed a superseding opinion reversing the district court's grant of summary judgment in favor of defendants in a trademark infringement suit over the "Honey Badger" catchphrases under the Lanham Act.The panel held that, under the test in Rogers v. Grimaldi, 875 F.2d 994 (2d Cir. 1989), the Lanham Act applies to expressive works only where the public interest in avoiding consumer confusion outweighs the public interest in free expression. In this case, defendants have not used plaintiff's mark in the creation of a song, photograph, video game, or television show, but have largely just pasted plaintiff's mark into their greeting cards. The panel held that a jury could determine that this use of plaintiff's mark was explicitly misleading as to the source or content of the cards. Therefore, the panel reversed the district court's grant of summary judgment and remanded for further proceedings. View "Gordon v. Drape Creative, Inc." on Justia Law
Enplas Display Device Corp. v. Seoul Semiconductor Co.
Seoul's asserted patents are directed to methods of backlighting display panels, particularly LED displays used in televisions, laptop computers, and other electronics. The 209 patent teaches, “uniform illumination is difficult to achieve, and prior art devices frequently fail[ed] to provide a sufficiently uniform source of illumination for LCD displays.” The invention claimed in the patent purports to solve this problem by providing a light source that uniformly backlights the rear surface of the display panel. The district court entered summary judgment that claim 20 is not anticipated and awarded damages. The Federal Circuit affirmed that claim 20 of the 209 patent and the asserted 554 patent claims are not anticipated and upheld the denial of judgment as a matter of law of no induced infringement. The evidence, while not overwhelming, provides at least circumstantial evidence that would allow a jury to reasonably find that Emplas had knowledge of the patents and of its customers’ infringing activity and that it intended to induce their infringement. 35 U.S.C. 271(b), The court upheld the $70,000 award for infringement of the 209 patent but vacated the $4 million damages award for infringement of the 554 patent, as not supported by substantial evidence. View "Enplas Display Device Corp. v. Seoul Semiconductor Co." on Justia Law
Ancora Technologies, Inc. v. HTC America, Inc.
Ancora’s 941 patent, entitled “Method of Restricting Software Operation Within a License Limitation,” describes and claims methods of limiting a computer’s running of software not authorized for that computer to run. It issued in 2002, and the patentability of all claims was confirmed in a reexamination in 2010. Ancora sued HTC, alleging infringement of the 941 patent. The district court dismissed, concluding that the patent’s claims are invalid because their subject matter is ineligible for patenting under 35 U.S.C 101, as directed to, and ultimately claiming no more than, an abstract idea. The Federal Circuit reversed. The claimed advance is a concrete assignment of specified functions among a computer’s components to improve computer security, and this claimed improvement in computer functionality is eligible for patenting. The asserted innovation of the patent relates to where the license record is stored in the computer and the interaction of that memory with other memory to check for permission to run a program that is introduced into the computer. View "Ancora Technologies, Inc. v. HTC America, Inc." on Justia Law
Hamilton Beach Brands, Inc. v. f’real Foods, LLC
The patent, entitled “Rinseable splash shield and method of use,” discloses a vessel for containing contents to be mixed that is positioned in a mixing machine and a splash shield that is positioned to shield the opening of the vessel. After the material within the vessel is mixed by a mixing element, the splash shield is separated from the vessel and rinsed by a nozzle on the mixing machine. The patent describes how the invention “provide[s] a drink mixer having a splash shield that may be automatically rinsed following mixing of each batch or beverage, preferably without disassembly or removal of any components or disposable covers.” The Patent Trial and Appeal Board upheld the patentability of claim 21 under 35 U.S.C. 103. The Federal Circuit affirmed, rejecting an argument that the Board changed claim construction theories midstream without providing the parties an opportunity to respond, and erred in construing the “nozzle” terms so as to require that the nozzles be prepositioned. Substantial evidence supports the Board’s decision ’s that Hamilton Beach did not persuasively establish a motivation to combine the prior art references to arrive at claim 21. View "Hamilton Beach Brands, Inc. v. f'real Foods, LLC" on Justia Law
Omaha Steaks International, Inc. v. Greater Omaha Packing Co.
Around 1959, the company started doing business as Omaha Steaks. It has multiple trademark registrations that include the words “Omaha Steaks" and spent over $50 million in 2012 and 2013, on domestic advertising of its beef products through national radio, television, and freestanding print campaigns. It has been featured in national newspapers, magazines, television shows, and movies. It promotes its products via catalog and direct mail, a daily blast email, customer calls, and on social media. Omaha Steaks has 75 stores and two airport kiosks and sells via Amazon. In 1920, Greater Omaha Packing Company was formed; it sells boxed beef to wholesalers, such as hotels, restaurants, and food service institutions and has sold beef to Omaha Steaks since 1966. GOP sought to register the mark “GREATER OMAHA PROVIDING THE HIGHEST QUALITY BEEF” with a design for: “meat, including boxed beef primal cuts.” The Trademark Trial and Appeal Board dismissed Omaha Steak’s opposition, finding no likelihood of confusion between the opposed mark and Omaha Steaks’ registered trademarks. The Federal Circuit vacated. The Board’s fact-findings confirm that due to Omaha Steaks’ sales and marketing, the consuming public has been regularly exposed to its marks on a nationwide scale; the Board’s conclusion that Omaha Steaks did not provide any context for its “raw” sales figures and ad expenditures lacks substantial evidence. The Board’s findings regarding third-party use improperly relied on marks found on dissimilar goods not directed to the relevant public. View "Omaha Steaks International, Inc. v. Greater Omaha Packing Co." on Justia Law
Arcelormittal Atlantique v. AK Steel Corp.
Plaintiff’s asserted RE940 patent, a reissue of its 805 patent, relates to boron steel sheets with an aluminum-based coating that, when hot-stamped, become highly mechanically resistant. In 2010, plaintiff sued AK Steel for infringement. The primary issue was whether steel sheets produced by AK met the mechanical resistance limitation of the 805 patent after thermal treatment. While the 2010 case was on remand, Plaintiff filed the complaint related to this appeal, asserting the RE940 patent. According to AK, the accused products in this case—steel sheets marketed and sold under the trade name ULTRALUME—are the same as the AXN steel sheets in the 2010 case. The district court granted AK summary judgment, citing collateral estoppel. The Federal Circuit vacated and remanded. Evidence indicates a material difference in the accused products, so collateral estoppel does not apply. Differences with respect to the claimed limitations constitute changes in controlling facts. Discovery is necessary to determine whether and to what extent AK supplied auto manufacturers with steel sheets with ultimate tensile strength in excess of 1,500 megapascals after thermal treatment, its knowledge and intent in doing so, and the relationships between AK, the hot-stampers, and the auto manufacturers during the relevant timeframe. View "Arcelormittal Atlantique v. AK Steel Corp." on Justia Law