Justia Intellectual Property Opinion Summaries

Ingenico Inc. filed a declaratory judgment action against IOENGINE, LLC, in the District of Delaware, asserting that IOENGINE's patents were invalid. The patents in question, U.S. Patent No. 9,059,969 and U.S. Patent No. 9,774,703, relate to a portable device, such as a USB thumb drive, that includes a processor for network communication. IOENGINE counterclaimed, alleging infringement. Ingenico argued that the patents were invalid due to prior art, specifically a USB device known as the DiskOnKey System, which included a Firmware Upgrader.The District Court for the District of Delaware held a jury trial, which resulted in a verdict finding the claims of the patents invalid as anticipated and obvious. IOENGINE filed a motion for judgment as a matter of law (JMOL) and a motion for a new trial, both of which were denied by the district court. IOENGINE then appealed the decision, challenging the jury's findings and the district court's rulings on jury instructions and the introduction of prior art.The United States Court of Appeals for the Federal Circuit reviewed the case. The court found that substantial evidence supported the jury's verdict that the DiskOnKey System, including the Firmware Upgrader, was in public use before the critical date, thus invalidating the patents. The court also held that the district court did not err in its jury instructions or in allowing Ingenico to introduce the prior art at trial. The court clarified that IPR estoppel under 35 U.S.C. § 315(e)(2) did not preclude Ingenico from using the DiskOnKey System to argue that the claimed invention was known or used by others, on sale, or in public use, as these grounds could not have been raised during the IPR.The Federal Circuit affirmed the district court's judgment, upholding the jury's verdict of invalidity. View "INGENICO INC. v. IOENGINE, LLC " on Justia Law

Thomas D. Foster, APC (Foster) sought to register the trademark "US SPACE FORCE" for various goods and services. The application was filed on March 19, 2018, shortly after President Donald J. Trump announced the creation of a new military branch called the Space Force. The United States Patent and Trademark Office (USPTO) examining attorney refused the registration, citing a false suggestion of a connection with the United States under § 2(a) of the Lanham Act.The Trademark Trial and Appeal Board (Board) affirmed the examining attorney’s refusal, concluding that the mark falsely suggested a connection with the United States. Foster requested reconsideration, arguing that the Board erred by not crediting the filing date of the intent-to-use application as the constructive use date and by relying on evidence post-dating the filing date. The Board denied reconsideration, maintaining that Foster was not the prior user and that there was ample evidence supporting the false connection analysis.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the appropriate timing for assessing a false suggestion of a connection includes evidence up to the time of examination, which in this case extended through the Board’s December 12, 2022 decision. The court found substantial evidence supporting the Board’s findings that the mark "US SPACE FORCE" was the same as or a close approximation of a name or identity used by the United States and that it pointed uniquely and unmistakably to the United States. The court affirmed the Board’s decision, concluding that the mark falsely suggested a connection with the United States and was therefore unregistrable under § 2(a) of the Lanham Act. View "In Re FOSTER" on Justia Law

Incyte Corporation and Incyte Holdings Corporation (collectively, Incyte) own U.S. Patent No. 9,662,335, which claims deuterated versions of ruxolitinib, a Janus kinase (JAK) modulator used to treat autoimmune disorders. Sun Pharmaceutical Industries, Ltd. and Sun Pharmaceutical Industries, Inc. (collectively, Sun) secured FDA approval for an oral deuterated ruxolitinib product, branded as Leqselvi, to treat alopecia areata (AA) and planned to launch it in October 2024. Incyte sued Sun for allegedly infringing the ’335 patent and moved for a preliminary injunction to prevent Sun from launching Leqselvi.The United States District Court for the District of New Jersey granted Incyte’s motion for a preliminary injunction, finding that Incyte would suffer irreparable harm if Sun launched Leqselvi. The district court based its decision on the theory that Sun’s launch would give it an unjust head start in the AA market, diminishing the value of Incyte’s investments in developing its own topical deuterated ruxolitinib product.Sun appealed the district court’s decision to the United States Court of Appeals for the Federal Circuit. The Federal Circuit reviewed the grant of the preliminary injunction for an abuse of discretion, focusing on whether the district court made a clear error in its irreparable harm analysis. The Federal Circuit found that the district court clearly erred in its finding of irreparable harm, as it was based on the incorrect assumption that Incyte would be first to market if the injunction were granted. The court noted that Sun’s multi-year head start was inevitable regardless of the injunction, as Incyte’s product would not launch until several years after the ’335 patent expired.The Federal Circuit reversed the district court’s order granting the preliminary injunction, concluding that Incyte failed to provide non-speculative evidence of irreparable harm. View "INCYTE CORPORATION v. SUN PHARMACEUTICAL INDUSTRIES, LTD. " on Justia Law

Miodrag Kostic and Guy Vandevelde, owners and listed inventors of U.S. Patent No. 8,494,950, appealed a decision by the Patent Trial and Appeal Board (PTAB) that sustained the examiner’s rejection of claim 3 of their Reissue Application No. 16/667,530. The '950 patent is directed to methods for buying and selling click-through traffic on internet websites, involving a trial process to measure traffic before a bidding process. Claim 3 of the original patent allowed for a direct exchange of click-through traffic without a trial process.The examiner rejected the reissue application, finding that the reissue claim 3 was broader than the original claim 3 and thus constituted an improper broadening reissue application filed outside the permissible two-year period. The examiner also found the reissue claim 3 to be obvious over prior art. The PTAB affirmed these rejections, agreeing that reissue claim 3 improperly broadened the scope of the original claim by making the trial process optional, which was not allowed under 35 U.S.C. § 251(d).The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the scope of reissue claim 3 was indeed broader than the original claim 3 because it allowed for either a trial process or a direct exchange without a trial process, whereas the original claim 3 required both. The court emphasized that the proper inquiry under 35 U.S.C. § 251(d) is whether the reissue claim is broader than the actual scope of the original claim, not the intended scope. Consequently, the court affirmed the PTAB’s decision, finding that the reissue application was statutorily barred as it broadened the scope of the original patent claims beyond the permissible period. View "In Re KOSTIC " on Justia Law

Jazz Pharmaceuticals, Inc. and Jazz Pharmaceuticals Ireland Limited (collectively, "Jazz") manufacture and sell sodium oxybate products, Xyrem and Xywav, for treating narcolepsy and idiopathic hypersomnia (IH). Avadel CNS Pharmaceuticals, LLC ("Avadel") sought FDA approval for Lumryz, a sodium oxybate product, for treating narcolepsy. Jazz sued Avadel, alleging that Avadel's FDA submission infringed Jazz's U.S. Patent 11,147,782. The district court found in favor of Jazz, issuing a permanent injunction against Avadel from seeking FDA approval for Lumryz for IH and from marketing Lumryz for that indication.The U.S. District Court for the District of Delaware initially ruled that Avadel's submission of its New Drug Application (NDA) constituted infringement under 35 U.S.C. § 271(e)(2). The court issued a permanent injunction prohibiting Avadel from seeking FDA approval for Lumryz for IH, offering open-label extensions (OLEs) to clinical trial participants, and initiating new clinical trials. Avadel appealed, arguing that the injunction was overly broad and that certain activities were protected under the safe-harbor provision of 35 U.S.C. § 271(e)(1).The United States Court of Appeals for the Federal Circuit reviewed the case. The court reversed the injunction prohibiting Avadel from initiating new clinical trials and offering OLEs, finding these activities to be protected under the safe-harbor provision. The court vacated the injunction preventing Avadel from seeking FDA approval for new indications of Lumryz, remanding the issue to the district court for further consideration. The court instructed the district court to determine whether Avadel's submission of a paper NDA for additional indications would constitute an act of infringement under 35 U.S.C. § 271(e)(2) and to reassess the eBay factors if necessary. View "JAZZ PHARMACEUTICALS, INC. v. AVADEL CNS PHARMACEUTICALS, LLC " on Justia Law

InfoDeli, LLC and Breht C. Burri (collectively, InfoDeli) brought a lawsuit against Western Robidoux, Inc. (WRI), Engage Mobile Solutions, LLC, and other defendants, including members of the Burri family and several companies. InfoDeli alleged copyright infringement, tortious interference, and violations of the Missouri Computer Tampering Act (MCTA). The dispute arose from a joint venture between InfoDeli and WRI, where InfoDeli created webstores for clients, and WRI provided printing and fulfillment services. The relationship deteriorated when WRI hired Engage to replace InfoDeli's webstores, leading to the lawsuit.The United States District Court for the Western District of Missouri granted summary judgment to the defendants on the copyright infringement claim, dismissed or tried the remaining claims before a jury, which found in favor of the defendants. The district court also granted in part and denied in part InfoDeli's sanctions motion and awarded attorney’s fees and costs to the defendants. InfoDeli appealed these decisions.The United States Court of Appeals for the Eighth Circuit reviewed the case. The court affirmed the district court's grant of summary judgment on the copyright infringement claim, finding that InfoDeli failed to show that the nonliteral elements of its webstores were protected by copyright. The court also upheld the district court's denial of InfoDeli's motion for summary judgment on CEVA's conversion counterclaim, finding it was timely under Missouri law. Additionally, the court affirmed the district court's denial of InfoDeli's posttrial motions for judgment as a matter of law and a new trial as untimely.The Eighth Circuit also reviewed the sanctions imposed by the district court and found no abuse of discretion in the amount awarded or the decision not to impose additional sanctions under Rule 37(e). Finally, the court upheld the award of attorney’s fees and costs to the defendants, finding that the district court did not abuse its discretion in its assessment. The court affirmed the district court's decisions in all respects. View "InfoDeli, LLC v. Western Robidoux, Inc." on Justia Law

Oscar Hernandez allegedly sustained injuries from a RIDGID-branded nail gun purchased from Home Depot. The nail gun, designed and manufactured by other companies, was marketed and sold by Home Depot under a trademark license agreement with Ridge Tool Company. Hernandez filed a complaint against Ridge Tool Company and Home Depot, asserting claims of strict liability, negligence, breach of express warranty, and breach of implied warranty of fitness. The case was removed to the U.S. District Court for the District of Nevada.The respondents moved for summary judgment, arguing that Ridge Tool Company should not be held strictly liable as it only licensed the RIDGID trademark and did not participate in the design, manufacture, distribution, or sale of the nail gun. The U.S. District Court granted summary judgment on all claims except the strict liability claim, noting the lack of controlling precedent in Nevada on whether a trademark licensor can be held strictly liable under such circumstances. The court certified the question to the Supreme Court of Nevada.The Supreme Court of Nevada concluded that Nevada does not impose strict products liability on an entity whose only involvement with a defective product is licensing its trademark for marketing purposes. The court adopted the rule set forth in section 14 of the Restatement (Third) of Torts: Products Liability, which states that a trademark licensor is not subject to strict liability unless it substantially participates in the design, manufacture, or distribution of the product. The court answered the certified question in the negative, holding that a trademark licensor cannot be held strictly liable for damages caused by a defective product if its role is limited to licensing its trademark. View "HERNANDEZ VS. THE HOME DEPOT, INC." on Justia Law

Top Tobacco, L.P., Republic Technologies (NA), LLC, and Republic Tobacco, L.P. sued Star Importers & Wholesalers, Inc., and its president, Amin Hudda, for selling counterfeit TOP® and JOB® cigarette rolling papers. Republic conducted test buys and laboratory testing, which confirmed the products were counterfeit. The police seized 704 jars of allegedly counterfeit rolling papers from Star’s warehouse. Republic alleged trademark counterfeiting, trademark infringement, unfair competition, deceptive trade practices, and unjust enrichment.The United States District Court for the Northern District of Georgia granted summary judgment against Star on liability for trademark infringement and counterfeiting but not against Hudda. The remaining issues for trial were Hudda’s personal liability, whether Star’s actions were willful, and the amount of statutory damages. The jury found Star did not act willfully and awarded Republic $123,000 in damages per mark, totaling $1,107,000 for nine marks. The district court denied Star’s motion for judgment as a matter of law challenging the verdict size.The United States Court of Appeals for the Eleventh Circuit reviewed the case. The court held that the district court did not err in refusing to reduce the jury verdict, as it fell within the statutory damages range permitted by the Lanham Act. The court affirmed that statutory damages need not be related to actual damages and that the jury could consider factors such as the value of the trademark, deterrence, and public safety risks. The court also found that the verdict did not violate due process, as it was not so disproportionate as to be unreasonable. The Eleventh Circuit affirmed the district court’s denial of Star’s motion for judgment as a matter of law. View "Top Tobacco, L.P. v. Star Importers & Wholesalers, Inc." on Justia Law

Fintiv, Inc. sued PayPal Holdings, Inc. for patent infringement in the U.S. District Court for the Western District of Texas, asserting four patents related to a cloud-based transaction system. The district court determined that certain claim terms in the asserted patents were subject to 35 U.S.C. § 112 ¶ 6 and held the asserted claims invalid as indefinite.The district court found that the payment-handler terms in the patents invoked § 112 ¶ 6 because they recited function without sufficient structure. The court noted that the terms were drafted in a format consistent with traditional means-plus-function limitations and merely replaced the term "means" with "payment handler" or "payment handler service." The court also found that the specifications of the asserted patents failed to disclose adequate structure corresponding to the claimed functions, rendering the claims indefinite.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the district court's indefiniteness determination. The Federal Circuit agreed that the payment-handler terms invoked § 112 ¶ 6 because they recited function without sufficient structure. The court also agreed that the specifications did not disclose any algorithm to perform the recited functions, and thus, the claims were indefinite. The Federal Circuit concluded that the payment-handler terms were no more than a "black box recitation of structure" and that a person of ordinary skill in the art would not have understood how to implement the recited functions based on the specifications. View "FINTIV, INC. v. PAYPAL HOLDINGS, INC. " on Justia Law

Honeywell International, a Delaware corporation, and OPTO Electronics, a Japanese company, are competitors in the barcode-scanning equipment market. In May 2019, Honeywell sued OPTO for patent infringement, alleging that OPTO's barcode products infringed on seven of Honeywell's patents. The parties settled in January 2020 with a patent-licensing agreement, allowing OPTO to use Honeywell's patents in exchange for royalty payments. In March 2021, Honeywell audited OPTO and claimed that OPTO had underreported its revenues, leading to a dispute over the definition of "2D Barcode Products." Honeywell then sued OPTO for breach of contract in September 2021, alleging unpaid royalties.The United States District Court for the Western District of North Carolina handled the case. A jury found that OPTO's laser-scanning barcode readers were "2D Barcode Products" but awarded Honeywell only $859,741. The district court also rejected OPTO's counterclaim of patent misuse, concluding that Honeywell had not engaged in such conduct. Both parties filed post-trial motions, which the district court denied. Honeywell sought attorney's fees, and OPTO moved to set aside the jury verdict, but both requests were denied.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court determined that it could not reach the merits because the United States Court of Appeals for the Federal Circuit has exclusive appellate jurisdiction over the appeal due to the patent-related counterclaim asserted by OPTO. The Fourth Circuit dismissed the appeal, allowing the parallel appeal pending in the Federal Circuit to proceed. The main holding was that the Federal Circuit has exclusive jurisdiction over appeals involving patent claims and counterclaims, even if the primary dispute is over a contract. View "Honeywell International, Inc. v. OPTO Electronics Co., Ltd." on Justia Law