Justia Intellectual Property Opinion Summaries

Sanho Corporation appealed a decision by the Patent Trial and Appeal Board (PTAB) that found all challenged claims of U.S. Patent No. 10,572,429 unpatentable as obvious. The PTAB's decision relied on U.S. Patent Application Publication No. 2018/0165053 (Kuo) as prior art. Sanho argued that Kuo should not be considered prior art under 35 U.S.C. § 102(b)(2)(B) because the inventor of the '429 patent had publicly disclosed the relevant subject matter before Kuo's effective filing date through the private sale of a product called HyperDrive.The PTAB concluded that the private sale of the HyperDrive did not qualify as a public disclosure under § 102(b)(2)(B), and therefore, Kuo was considered prior art. The PTAB found that Sanho failed to show that the inventor publicly disclosed the subject matter of Kuo before Kuo's effective filing date. Consequently, the PTAB determined that all challenged claims of the '429 patent were unpatentable as obvious based on combinations that included Kuo.The United States Court of Appeals for the Federal Circuit reviewed the PTAB's decision. The court held that the private sale of the HyperDrive did not constitute a public disclosure under § 102(b)(2)(B). The court reasoned that the term "publicly disclosed" in the statute requires that the invention be made available to the public, which was not the case with the private sale between the inventor and Sanho. The court affirmed the PTAB's decision, concluding that Kuo was prior art and that the challenged claims of the '429 patent were unpatentable as obvious. View "SANHO CORP. v. KAIJET TECHNOLOGY INTERNATIONAL LIMITED, INC. " on Justia Law

The case involves BioPoint, Inc., a life sciences consulting firm, which accused Catapult Staffing, LLC, and Andrew Dickhaut of misappropriating trade secrets, confidential business information, and engaging in unfair trade practices. BioPoint alleged that Catapult, with the help of Dickhaut and Leah Attis (a former BioPoint employee and Dickhaut's fiancée), used BioPoint's proprietary information to recruit candidates and secure business from BioPoint's clients, including Vedanta and Shire/Takeda.The U.S. District Court for the District of Massachusetts handled the initial proceedings. The jury found Catapult liable for misappropriating BioPoint's trade secrets concerning three candidates and two clients, and for tortious interference with BioPoint's business relationship with one candidate. The jury awarded BioPoint $312,000 in lost profits. The judge, in a subsequent bench trial, found Catapult liable for unjust enrichment and violations of the Massachusetts Consumer Protection Law (chapter 93A), awarding BioPoint $5,061,444 in damages, which included treble damages for willful and knowing conduct, as well as costs and attorneys' fees.The United States Court of Appeals for the First Circuit reviewed the case. The court largely affirmed the lower court's findings but reduced the judge's award by $157,068, as it found that BioPoint could not recover both lost profits and unjust enrichment for the same placement. The court also reversed the district court's imposition of joint-and-several liability on Andrew Dickhaut, ruling that he could not be held liable for profits he did not receive. The case was remanded for further proceedings to determine Dickhaut's individual liability. View "BioPoint, Inc. v. Dickhaut" on Justia Law

D'Pergo Custom Guitars, Inc. sued Sweetwater Sound, Inc. for using a photo of D'Pergo's guitar necks on Sweetwater's website. D'Pergo claimed copyright infringement under the Copyright Act, trademark infringement under the Lanham Act, and a violation of the New Hampshire Consumer Protection Act (CPA). The district court granted summary judgment to Sweetwater on the trademark claim and to D'Pergo on the copyright claim. A bench trial found in favor of Sweetwater on the CPA claim, and a jury awarded D'Pergo approximately $75,000 in compensatory damages for the copyright claim but did not award any of Sweetwater's profits.D'Pergo appealed the district court's summary judgment on the trademark claim and the bench trial ruling on the CPA claim. D'Pergo also argued that erroneous jury instructions warranted a reversal of the jury's finding that it was not entitled to recover any of Sweetwater's profits. Sweetwater cross-appealed, challenging the copyright damages based on what it claimed was inadmissible expert testimony.The United States Court of Appeals for the First Circuit affirmed the district court's ruling in favor of Sweetwater on the CPA claim, finding that Sweetwater did not act with the intent required for a CPA violation. However, the court reversed the district court's grant of summary judgment to Sweetwater on the trademark claim, concluding that D'Pergo's evidence created a genuine issue of fact regarding the trademark's secondary meaning and likelihood of confusion.The court also remanded for a new jury trial on the issue of infringing profits for the copyright claim, finding that the district court's jury instruction on the burden of proof for infringing profits overstated D'Pergo's burden. The court affirmed the district court's refusal to give D'Pergo's proposed "commingling" instruction and upheld the actual damages awarded to D'Pergo, rejecting Sweetwater's challenge to the admissibility of the expert testimony. View "D'Pergo Custom Guitars, Inc. v. Sweetwater Sound, Inc." on Justia Law

Affordable Aerial Photography, Inc. (AAP) filed a copyright infringement lawsuit against Property Matters USA, LLC (Property Matters) and Home Junction Inc. (Home Junction) in the Southern District of Florida. AAP alleged that Property Matters used a copyrighted aerial photograph on its website without permission. The photograph, created by AAP in 2010, was registered with the Register of Copyrights in 2018. Property Matters moved to dismiss the case, arguing that the statute of limitations had expired. Before the court ruled on the motion, AAP voluntarily dismissed the case without prejudice under Rule 41(a)(1)(A)(i).The district court denied Property Matters' motion for attorney’s fees under 17 U.S.C. § 505, concluding that Property Matters was not the prevailing party because the voluntary dismissal did not materially alter the legal relationship between the parties. The court applied the discovery rule, determining that AAP discovered the alleged infringement in February 2022, making the claim timely.The United States Court of Appeals for the Eleventh Circuit reviewed the case and affirmed the district court’s decision. The appellate court held that a defendant is not the prevailing party under § 505 when a plaintiff’s action is voluntarily dismissed without prejudice under Rule 41(a)(1)(A)(i). The court emphasized that prevailing-party status requires a judicial rejection of the plaintiff’s claim, which did not occur in this case. Therefore, Property Matters was not entitled to attorney’s fees. View "Affordable Aerial Photography, Inc. v. Property Matters USA, LLC" on Justia Law

SoftView LLC appealed a decision by the Patent Trial and Appeal Board (PTAB) regarding the invalidation of all claims of its U.S. Patent No. 7,461,353. The PTAB's decision was based on a prior inter partes review (IPR) proceeding that found the claims invalid under the estoppel provision in 37 C.F.R. § 42.73(d)(3)(i). SoftView argued that the PTAB misinterpreted the regulation, that the Patent and Trademark Office (PTO) lacked statutory authority to issue such a regulation, and that the regulation should not apply to already issued claims.The PTAB had previously stayed reexamination proceedings pending the outcome of the IPR. After the IPR invalidated 18 claims, the PTAB lifted the stay and resumed reexamination. The PTAB found most claims unpatentable over prior art but reversed the examiner's obviousness rejections. Instead, it applied the estoppel provision to invalidate all claims, including amended and previously issued claims, reasoning that they were not patentably distinct from the canceled claims.The United States Court of Appeals for the Federal Circuit upheld the validity of the regulation and its estoppel standard but agreed with SoftView that the regulation applies only to new or amended claims, not to previously issued claims. The court affirmed the PTAB's application of the regulation to the amended claims, finding them not patentably distinct from the canceled claims. However, it vacated the PTAB's decision regarding the previously issued claims, as the regulation does not apply to maintaining existing claims.The court concluded that the PTO had the authority under 35 U.S.C. § 316(a)(4) to issue the regulation, which governs the relationship of IPR to other proceedings. The case was affirmed in part and vacated and remanded in part for further consideration of the issued claims. View "SOFTVIEW LLC v. APPLE INC. " on Justia Law

Neu Cloud, a joint venture between IBM, TeamSun, and Zhuangyan Hao, alleged that IBM misappropriated its trade secrets. Neu Cloud claimed that IBM used confidential customer information, obtained through special bids submitted by Neu Cloud, to benefit a competing joint venture, INSPUR Power. This alleged misappropriation occurred between 2015 and 2018, leading to a significant decline in Neu Cloud's business.Neu Cloud initially filed a lawsuit in New York state court, asserting state-law claims such as unfair competition and breach of contract. The New York Supreme Court dismissed the state complaint on various grounds, including timeliness and lack of personal jurisdiction over IBM China. Shortly after, Neu Cloud filed a federal lawsuit in the United States District Court for the Southern District of New York, asserting a single cause of action under the Defend Trade Secrets Act (DTSA). The district court dismissed the federal complaint, ruling that the DTSA claim was both untimely and inadequately pleaded, and that there was no personal jurisdiction over IBM China.On appeal, the United States Court of Appeals for the Second Circuit reviewed the case. The court affirmed the district court's dismissal, but on the alternative ground of res judicata. The Second Circuit held that the New York Supreme Court's prior judgment barred Neu Cloud from asserting its DTSA claim in federal court. The court concluded that the state and federal claims arose from the same series of transactions and that the state court was competent to adjudicate the DTSA claim. Therefore, the judgment of the district court was affirmed on the basis of res judicata. View "Beijing Neu Cloud v. IBM Corp." on Justia Law

The case involves an inter partes review (IPR) proceeding concerning U.S. Patent No. 8,265,096, which relates to methods for constructing frame structures in orthogonal frequency-division multiple access (OFDMA) systems. The Patent Trial and Appeal Board (PTAB) found claims 1–4, 6, and 7 of the patent unpatentable as obvious but did not find claim 8 unpatentable. The PTAB also granted the patentee's motion to amend, canceling claims 1–4, 6, and 7 and substituting them with new claims 44–47, 49, and 50.The PTAB's decision was appealed by ZyXEL Communications Corp., which contested the finding that claim 8 was not obvious and the decision to grant the motion to amend. UNM Rainforest Innovations (UNMRI) cross-appealed the finding that claims 1–4, 6, and 7 were unpatentable. The PTAB had found that the combination of prior art references Talukdar and Li rendered claims 1–4, 6, and 7 obvious but did not find a motivation to combine Talukdar and Nystrom to render claim 8 obvious.The United States Court of Appeals for the Federal Circuit affirmed the PTAB's determination that claims 1–4, 6, and 7 were unpatentable as obvious. The court found substantial evidence supporting the PTAB's conclusion that a person of ordinary skill in the art would combine Talukdar and Li. However, the court reversed the PTAB's decision regarding claim 8, concluding that the combination of Talukdar and Nystrom would render claim 8 obvious.The court also affirmed the PTAB's decision to grant UNMRI's motion to amend, finding no procedural error in allowing UNMRI to supplement its motion with a reply brief. The court remanded the case to the PTAB to determine if the substitute claims are unpatentable as obvious under collateral estoppel based on the court's holding that claims 1–4 and 6–8 are unpatentable as obvious. The PTAB was also instructed to consider whether to evaluate the substitute claims' obviousness on a new ground. View "ZYXEL COMMUNICATIONS CORP. v. UNM RAINFOREST INNOVATIONS " on Justia Law

Koss Corporation (Koss) owns several patents related to wireless earphones. Koss filed a patent infringement lawsuit against Bose Corporation (Bose) in the Western District of Texas, alleging infringement of three patents. Bose challenged the venue and also filed for inter partes review (IPR) of the patents with the Patent Trial and Appeal Board (PTAB). Concurrently, Bose sought a declaratory judgment of noninfringement in the District of Massachusetts. The Texas court dismissed Koss's case for improper venue, leading Koss to file counterclaims in Massachusetts. The Massachusetts court stayed the case pending the IPR outcomes.In parallel, Koss's infringement action against Plantronics, Inc. was transferred to the Northern District of California. Plantronics moved to dismiss the case, arguing that the patents were invalid under 35 U.S.C. § 101. The California court agreed, invalidating all claims of the patents. Koss amended its complaint but eventually stipulated to dismiss the case with prejudice, without appealing the invalidation order.The United States Court of Appeals for the Federal Circuit reviewed the PTAB's decisions on the IPRs. However, since the California court had already invalidated all claims of the patents and Koss did not appeal this decision, the Federal Circuit found the appeals moot. The court held that the invalidation order from the California court was final and precluded any further action on the patents, leading to the dismissal of the appeals. View "KOSS CORPORATION v. BOSE CORPORATION " on Justia Law

Miller Mendel, Inc. sued the City of Anna, Texas, alleging that the City’s use of the Guardian Alliance Technologies software platform infringed claims 1, 5, and 15 of U.S. Patent No. 10,043,188, which relates to a software system for managing pre-employment background investigations. The United States District Court for the Eastern District of Texas granted the City’s motion for judgment on the pleadings, concluding that the asserted claims do not claim patent-eligible subject matter under 35 U.S.C. § 101. The district court also denied the City’s motion for attorneys’ fees.The district court found that the claims were directed to the abstract idea of performing a background check and did not contain an inventive concept that would transform the abstract idea into a patent-eligible application. Miller Mendel’s motion for reconsideration was denied, with the court clarifying that its decision only invalidated claims 1, 5, and 15. The City’s motion for attorneys’ fees was denied on the grounds that the case was not exceptional.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 claims were directed to an abstract idea and lacked an inventive concept. The court also upheld the district court’s decision to limit its invalidity finding to claims 1, 5, and 15, as Miller Mendel had narrowed the scope of the asserted claims before the court ruled on the motion. Additionally, the Federal Circuit found no abuse of discretion in the district court’s denial of attorneys’ fees, concluding that Miller Mendel’s litigation conduct did not make the case exceptional. View "MILLER MENDEL, INC. v. CITY OF ANNA, TEXAS " on Justia Law

The case involves the Canadian Standards Association (CSA), a Canadian not-for-profit corporation that holds Canadian copyrights for various model codes. CSA alleged that P.S. Knight Company, Limited, PS Knight Americas, Incorporated, and Gordon Knight (collectively, Knight) infringed its copyrights by selling competing versions of CSA’s codes. These codes had been incorporated by reference into Canadian statutes and regulations. Knight argued that his actions were permissible under U.S. copyright law, as the codes had become "the law" of Canada.The United States District Court for the Western District of Texas found in favor of CSA, granting its motion for summary judgment and issuing a permanent injunction against Knight. The district court held that Knight's copying of CSA’s codes constituted copyright infringement and declared Knight’s U.S. copyright registration invalid. Knight appealed the decision, arguing that the district court improperly applied the law.The United States Court of Appeals for the Fifth Circuit reviewed the case de novo. The court found that the district court had improperly applied the holding of Veeck v. Southern Building Code Congress International, Inc., which states that once model codes are enacted into law, they become "the law" and may be reproduced or distributed as such. The Fifth Circuit held that because CSA’s model codes had been incorporated into Canadian law, Knight’s copying of those codes did not constitute copyright infringement under U.S. law.The Fifth Circuit reversed the district court’s summary judgment decisions, vacated the grant of injunctive relief, and remanded the case with instructions to grant summary judgment in favor of Knight and to dismiss CSA’s copyright infringement claim. View "Canadian Standards Association v. P.S. Knight Company Limited" on Justia Law