Justia Intellectual Property Opinion Summaries

This action represents Metabyte’s fourth attempt to hold Technicolor liable for Technicolor’s allegedly improper auction of a patent portfolio in 2009. After the French courts ruled they lacked jurisdiction in the criminal action, Metabyte brought an action in district court alleging a federal RICO claim and several state law causes of action. After the district court ruled that equitable tolling did not apply to its RICO claim as a matter of federal law, Metabyte dismissed the federal action and brought its state law claims in Los Angeles County Superior Court. The trial court granted Technicolor’s demurrer without leave to amend. Metabyte contends the trial court erred in finding equitable estoppel applies only where a plaintiff invokes remedies designed to lessen the extent of a plaintiff’s injuries or damages, with the result that Article 145 proceeding in France could not support equitable tolling because it did not provide such a remedy. Technicolor defends the trial court’s ruling but devotes more of its energies to its contentions that even if equitable tolling did apply, the order should be affirmed by applying the doctrines of issue preclusion and judicial estoppel.   The Second Appellate District affirmed the trial court’s ruling sustaining the demurrer on the alternate ground that Metabyte failed to adequately plead facts showing that its decision to proceed in France was objectively reasonable and subjectively in good faith. However, the court granted Metabyte leave to amend. Accordingly, the court reversed the judgment and remanded for further proceedings. View "Metabyte v. Technicolor S.A." on Justia Law

Two companies that operate in the real estate development industry have spent years embroiled in a dispute over their shared name: “Dewberry.” Dewberry Engineers sued Dewberry Group to quell the latter’s use of several new insignias it developed as part of its rebrand. Dewberry Engineers owns federal trademark rights to the “Dewberry” mark and claims Dewberry Group’s rebranding efforts infringe that mark and breach an agreement struck between the sparring corporations over a decade ago. The district court sided with Dewberry Engineers in the proceedings below, assessing a nearly $43 million profit disgorgement award against Dewberry Group for its infringement, enjoining it from further breaches of its agreement with Dewberry Engineers, and ordering it to pay attorneys’ fees for forcing Dewberry Engineers to litigate an exceptional case of trademark infringement.   The Fourth Circuit affirmed. The court explained that the parties share an identical, arbitrary dominant word and disclaim different suffixes (and prefixes in some cases) in the marks at issue. The record shows they also employ those marks in related, overlapping, and complementary services. Those details go some distance toward creating a likelihood of confusion as to the origin of either party’s “Dewberry” mark. Moreover, the court explained that despite Dewberry Group’s failure to calculate exact figures or provide evidence of deductions from infringement revenues for losses and expenses, the court equitably reduced the requested award by twenty percent to $42,975,725.60.  The court finds no error of fact or law suggesting the district court’s conclusions were an abuse of its discretion. View "Dewberry Engineers Inc. v. Dewberry Group, Inc." on Justia Law

Menasha licensed Nulogy’s software, Nulogy Solution. Years later, Deloitte reviewed Menasha’s systems in hopes of better integrating Nulogy Solution into Menasha’s other software. Deloitte and Menasha asked Nulogy to share proprietary information. Nulogy alleges that the two used this information to reverse engineer an alternative to Nulogy Solution. In 2020, Nulogy filed suit in Ontario’s Superior Court of Justice, alleging breach of contract by Menasha and violations of trade secrets by Menasha and Deloitte. Deloitte objected to jurisdiction in Canada.Nulogy voluntarily dismissed its trade secret claims against both companies and refiled those claims in the Northern District of Illinois under the Defend Trade Secrets Act, 18 U.S.C. 1836(b). The breach of contract claims against Menasha remained pending in Canada. Menasha moved to dismiss the U.S. trade secrets litigation. Menasha’s contract with Nulogy contained a forum selection clause, identifying Ontario, Canada. Deloitte did not join that motion but filed its own motion to dismiss arguing failure to state a claim. The district court dismissed the claims against Menasha but reasoned that the forum non-conveniens doctrine required the dismissal of the entire complaint, including the claims against Deloitte.The Seventh Circuit affirmed the dismissal of Nulogy’s claims against Menasha but reversed the Deloitte dismissal. Deloitte has no contractual agreement with Nulogy identifying Canada as the proper forum and continues to insist that Canadian courts do not have jurisdiction. View "Nulogy Corp. v. Menasha Packaging Co., LLC" on Justia Law

Medtronics’s patents, which share a specification, relate to the transcutaneous (through the skin) charging of implanted medical devices. This charging occurs by inductive coupling, whereby energy is transferred between a primary coil in the external charger and a secondary coil in the implanted device when the two coils are placed in proximity to each other. The patents seek to improve charging efficiency by automatically varying the power output of the external charger based on various measured parameters of the current passing through the implanted device.In two inter partes review (IPR) determinations. The Patent Trial and Appeal Board held that the petitioner had failed to show that claims of the patents were unpatentable as anticipated or obvious. In each decision, the Board adopted a "two-input" claim construction first presented in the patent owner’s response after the institution decision and declined to consider the petitioner’s reply arguments and evidence under the new claim construction, reasoning that the petitioner had not identified anywhere in the petition that the two-input anticipation arguments had been made.The Federal Circuit vacated. The Board’s refusal to consider the new arguments and evidence was erroneous. The court remanded for the Board to consider the merits of Axonics’ responsive arguments and evidence under the new claim construction. View "Axonics, Inc. v. Medtronic, Inc." on Justia Law

Every five years, the Copyright Royalty Board (the “Board”) issues a statutory license that establishes the terms and rates under which certain entities that stream copyrighted songs over the internet make royalty payments to the songs’ copyright owners. The “webcasters” that are subject to the license are “noninteractive” — i.e., they stream music without letting their listeners choose songs on demand. This appeal challenges on various grounds the Board’s most recent noninteractive webcaster license Final Determination, covering calendar years 2021 through 2025.   The DC Circuit sustained Board’s Final Determination in all respects. The court held that the Board’s decision to set a royalty rate that was slightly below the Willig model’s flawed opportunity-cost measure is neither here nor there. And thus, the court explained, it has no occasion to decide, as SoundExchange urges, whether it would, as a matter of law, violate the willing buyer/willing seller standard for the Board to set a royalty rate below some definitive measure of opportunity cost. View "National Religious Broadcasters Noncommercial Music License Committee v. CRB" on Justia Law

La Bamba Licensing operates Mexican restaurants in the Midwest under the name “La Bamba.” In 1998, La Bamba registered “LA BAMBA” as a trademark for restaurant services and for various food items. Nearly two decades later, La Bamba Authentic Mexican Cuisine opened a Mexican restaurant under the name “La Bamba Authentic Mexican Cuisine” with one location in Lebanon, Kentucky—about 65 miles from one of La Bamba’s restaurants in Louisville. In May 2016, La Bamba sent Cuisine a cease-and-desist letter, citing La Bamba’s federal trademark registrations. La Bamba subsequently sued, alleging trademark infringement and unfair competition under the Lanham Act and Kentucky common law. In October 2017, Cuisine changed the name of its restaurant to “La Villa Rica Authentic Mexican Cuisine, Inc.”The district court granted La Bamba summary judgment and awarded La Bamba $50,741.76 ($22,907.26 in profits; $27,309.50 for attorneys’ fees; and $525.00 for court costs. The Sixth Circuit affirmed, Under the Lanham Act, a plaintiff who succeeds on an infringement claim “shall be entitled” subject to equitable principles, to recover a defendant’s profits, any damages sustained by the plaintiff, and the costs of the action, 15 U.S.C. 1117(a). The district court did not abuse its discretion in considering the relevant factors and making the awards. View "La Bamba Licensing, LLC v. La Bamba Authentic Mex. Cuisine, Inc." on Justia Law

Y.Y.G.M. SA, doing business as Brandy Melville, manufactures its own clothing, home goods, and other items. It owns several trademarks, including the Brandy Melville Heart Mark (Heart Mark) and the LA Lightning Mark (Lightning Mark). Redbubble owns and operates an online marketplace where artists can upload their artwork to be printed on various products and sold. After a jury found that Redbubble, Inc. had violated Brandy Melville’s trademarks, the district court granted partial judgment as a matter of law to Redbubble on one trademark claim. Both parties appealed.   The Ninth Circuit affirmed in part and vacated in part the district court’s judgment after a jury trial in an action brought under the Lanham Act against Red Bubble. Vacating the district court’s order granting in part and denying in part Redbubble’s motion for judgment as a matter of law, the panel held that a party is liable for contributory infringement when it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement. A party meets this standard if it is willfully blind to infringement. Agreeing with other circuits, the panel held that contributory trademark liability requires the defendant to have knowledge of specific infringers or instances of infringement. The panel held that, in granting judgment as a matter of law to Redbubble on the claim for contributory trademark counterfeiting as to the Heart Mark, the district court further erred by failing to evaluate the evidence of likelihood of confusion under the correct legal standard. View "Y.Y.G.M. SA V. REDBUBBLE, INC." on Justia Law

United Therapeutics holds New Drug Application (NDA) 022387 for Tyvaso®, an inhaled solution formulation of treprostinil approved for the treatment of pulmonary hypertension. It is a vasodilator that reduces vasoconstriction in the pulmonary vasculature, thereby decreasing blood pressure. United’s patents are listed in the FDA’s Orange Book for Tyvaso. Liquidia filed NDA 213005 for Yutrepia™ (21 U.S.C. 355(b)(2)), a dry powder inhalation formulation of treprostinil that is not a generic version of any currently marketed drug. United sued Liquidia, alleging infringement. Liquidia filed a petition for inter partes review (IPR); the Board found all claims of the 793 patent unpatentable as obvious. The district court concluded that seven claims of the 793 patent were not invalid and were infringed by Liquidia; several claims of the 066 patent were invalid as anticipated and would have been infringed by Liquidia but for the finding of anticipation; and claim 8 of the 066 patent was not invalid and not infringed.The Federal Circuit affirmed, upholding the district court’s determination that the meaning of “treating pulmonary hypertension” does not require a showing of safety and efficacy; the claims of the 793 patent are adequately enabled and supported by the written description; and Liquida induced infringement of that patent. View "United Therapeutics Corp. v. Liquidia Technologies, Inc." on Justia Law

Columbus-based financial advisors developed a financial product seemingly unique to the annuities market: the Transitions Beneficiary Income Rider, which would guarantee that, following a life insurance policyholder’s death, an insurance company would pay death-benefit proceeds to beneficiaries throughout their lifetimes. They founded Novus to launch the product. Novus contracted with Genesis and Annexus, financial product developers, to handle the eventual pitch to Novus’s target customer, Nationwide. Each agreement contained a confidentiality provision. Nationwide would not sign a nondisclosure agreement (NDA) and cautioned Novus not to disclose any confidential information about the Rider. An Annexus executive shared the Rider concept by email with Nationwide VP Morrone. Nationwide chose not to pursue the concept. After Novus’s unsuccessful pitch, Branch, Morrone’s supervisor, left Nationwide to join its competitor, Prudential. Branch convinced Ferris, also in Branch’s chain-of-command, and who had allegedly attended the in-person pitch, to leave Nationwide for Prudential. Prudential subsequently launched Legacy “eerily similar to” Rider.In Novus’s suit, alleging that Prudential engaged in trade secrets misappropriation, in violation of Ohio’s Uniform Trade Secrets Act, the district court granted summary judgment to Prudential. The Sixth Circuit affirmed. There is no reference to a confidential relationship through which Prudential acquired information about the Rider concept. View "Novus Group, LLC v. Prudential Financial, Inc." on Justia Law

Plaintiff claimed Defendant infringed her copyrights in two charts depicting organizational change. The key question is whether the copyright in one of those charts was registered with the Copyright Office such that it will support a suit for copyright infringement.The Ninth Circuit reversed the district court’s partial grant of summary judgment in favor of Defendants, vacated a jury verdict, vacated an award of attorneys’ fees, and remanded an action alleging infringement of copyrights in two charts depicting organizational change. The court held that Plaintiff created a genuine issue of material fact on that question. The panel held that Plaintiff raised a genuine dispute about whether she registered the chart directly or whether she registered elements of that chart by later registering an “Aligning for Success” chart. Agreeing with other circuits on a matter of first impression, the panel held that by registering a derivative work, an author registers all of the material included in the derivative work, including that which previously appeared in an unregistered, original work created by the author. The panel, therefore, reversed the district court’s grant of summary judgment and also vacated the jury verdict because, as a result of the grant of summary judgment, the district court prevented Plaintiff from introducing any evidence and making any argument as to the Managinwg Complex Change chart at trial. The panel further held that the district court erred in instructing the jury that if it found that Defendant accessed and copied other work but did not copy the registered Aligning for Success chart, then Dfendant’s challenged work was an independent creation. View "ENTERPRISE MANAGEMENT LIMITED, INC., ET AL V. CONSTRUX SOFTWARE BUILDERS, INC., ET AL" on Justia Law