Justia Intellectual Property Opinion Summaries
Mojave Desert Holdings, LLC v. Crocs, Inc.
Crocs's Design Patent 789, titled “Footwear,” has a single claim for the “ornamental design for footwear.” Crocs sued Dawgs for infringement, Dawgs sought inter partes reexamination (IPE) under 35 U.S.C. 311. The district court stayed its proceedings. The examiner rejected the claim as anticipated, 35 U.S.C. 102(b). While an appeal to the Patent Trial and Appeal Board was pending, Dawgs filed for Chapter 11 bankruptcy. The bankruptcy court approved the sale of all of its assets to a new entity, Holdings, “not free and clear of any Claims Crocs . . . may hold for patent infringement occurring post-Closing Date by any person ... or any defenses Crocs may have in respect of any litigation claims that are sold.” The bankruptcy court authorized the distribution of the net sale proceeds and dismissed Dawgs’s bankruptcy case. Holdings assigned all rights, including explicitly the claims asserted by Dawgs in the infringement action and the IPE, to Mojave. Dawgs dissolved but continued to exist for limited purposes, including “prosecuting and defending suits" and "claims of any kind.”The Board declined to change the real-party-in-interest from the IPE requestor to Mojave, then reversed the examiner’s rejection of the patent’s claim. The Federal Circuit granted the motion to substitute. The assignments indicate that Mojave is Dawgs's successor-in-interest; as such, Mojave has standing. If the Board precludes substitution on the basis of a transfer in interest because of a late filing, it would defeat the important interest in having the proper party before the Board. View "Mojave Desert Holdings, LLC v. Crocs, Inc." on Justia Law
Amgen Inc. v. Sanofi, Aventisub LLC
Elevated LDL cholesterol is linked to heart disease. LDL receptors remove LDL cholesterol from the bloodstream; the PCSK9 enzyme regulates LDL receptor degradation. Amgen’s 165 and 741 patents describe antibodies that purportedly bind to the PCSK9 protein and lower LDL levels by blocking PCSK9 from binding to LDL receptors. Amgen sued Sanofi, alleging infringement of multiple patents, including the 165 and 741 patents. Amgen and Sanofi stipulated to infringement of selected claims and tried issues of validity to a jury.The court granted judgment as a matter of law (JMOL) of nonobviousness and of no willful infringement. Following remand, a jury again found that Sanofi failed to prove that the asserted claims were invalid for lack of written description and enablement. The district court granted Sanofi’s Motion for JMOL for lack of enablement and denied the motion for lack of written description. The Federal Circuit affirmed. Undue experimentation would be required to practice the full scope of these claims, which encompasses millions of candidates claimed with respect to multiple specific functions. It would be necessary to first generate and then screen each candidate antibody to determine whether it meets the double-function claim limitations. View "Amgen Inc. v. Sanofi, Aventisub LLC" on Justia Law
Infinity Computer Products, Inc. v. Oki Data Americas, Inc.
The Infinity patents share a specification and involve using a fax machine as a printer or scanner for a personal computer. The indefiniteness issues revolve around the connection between the fax machine and the computer, termed a “passive link.” In a suit alleging that Oki infringed the patents, the district court found the patent claims indefinite.The Federal Circuit affirmed. Infinity has taken materially inconsistent positions regarding the extent of the claimed “passive link”— specifically, whether it ends at the I/O bus inside the computer or merely at the computer’s port; the endpoint of “passive link” is not reasonably certain and the term is indefinite. Because there is no reasonable certainty about where the “passive link” ends, there also cannot be reasonable certainty about where the “computer” begins. View "Infinity Computer Products, Inc. v. Oki Data Americas, Inc." on Justia Law
Chudik v. Hirshfeld
Dr. Chudik applied to the Patent and Trademark Office (PTO) for a patent on his “Guide for Shoulder Surgery” in 2006. The PTO examiner issued a second rejection in 2010. Rather than taking an appeal to the Patent Trial and Appeal Board (35 U.S.C. 134(a)), Chudik requested continued examination (section 132(b)). In 2014, the examiner again rejected his claims. Chudik appealed to the Board. Instead of filing an answer, the examiner reopened prosecution and rejected the claims as unpatentable on a different ground; that process repeated in 2016. In 2017, while Chudik’s fourth notice of appeal from an examiner rejection was pending, the examiner issued another rejection, which led to a notice of allowance after Chudik altered his claims. Chudik’s patent issued in 2018.The PTO awarded Chudik a patent term adjustment of 2,066 days (35 U.S.C. 154(b)) but rejected Chudik’s claim for an additional 655 days of “C-delay,” for the time his four notices of appeal were pending in the PTO. C-delay covers appellate review by the Board or a federal court in a case in which the patent was issued under a decision in the review reversing an adverse determination of patentability. The PTO concluded that, in light of the reopening of prosecution, the Board’s jurisdiction never attached and there was no Board or reviewing court reversal. The district court and Federal Circuit affirmed. C-delay for “appellate review” requires a reversal by the Board or a court. View "Chudik v. Hirshfeld" on Justia Law
cxLoyalty, Inc. v. Maritz Holdings Inc.
Customer loyalty programs issue points that customers can redeem for goods and services. Maritz’s patent relates to a system and method for permitting a customer to redeem loyalty points without human intervention. A graphical user interface provides allows the participant to communicate with a web-based vendor system, such as an airline reservation system. An application programming interface interfaces with the GUI and the vendor system to facilitate information transfer between them.cxLoyalty petitioned for a covered business method (CBM) review of claims 1–15 of the patent. The Patent Trial and Appeal Board concluded that original claims 1–15 are ineligible for patenting under 35 U.S.C. 101 but that proposed substitute claims 16–23 are patent-eligible. cxLoyalty appealed as to the substitute claims; Maritz cross-appealed both the determination that the patent is eligible for CBM review and the ruling as to the original claims.The Federal Circuit dismissed Maritz’s challenge to CBM eligibility and held that both the original and substitute claims are directed to patent-ineligible subject matter. The threshold determination that a patent qualifies for CBM review is non-appealable under 35 U.S.C. 324(e). Representative claim 1 is directed to transfers of information relating to a longstanding commercial practice and is directed to an abstract idea. The claims amount to nothing more than applying an abstract idea using techniques that are, individually or as an ordered combination, well-understood, routine, and conventional. View "cxLoyalty, Inc. v. Maritz Holdings Inc." on Justia Law
OverDrive Inc. v. Open E-Book Forum
OverDrive, a digital reading platform, belonged to International Digital Publishing Forum, a trade association dedicated to the development of electronic publishing standards. International’s members developed EPUB, the leading eBook format. International's intellectual-property policy, approved by all its members, states that International’s members retain any copyrights in their independent contributions to EPUB but grants International a license to “reproduce, adapt, distribute, perform, display, and create derivative works” of any copyrighted contributions to EPUB. International may sublicense others to do the same. By a vote of 88% to 12%, International agreed to transfer its assets to the Consortium and to grant the Consortium a license to use International's intellectual property to carry out Internationa;'s digital publishing activities. International would commence dissolution, after which its intellectual property rights would be owned by the Consortium. The Consortium began developing improvements to EPUB. A second agreement affirmed the first, explaining that the license included International’s sub-licensable rights to any copyrights its members retained.OverDrive sought a declaratory judgment that International had violated, and would violate in the future, its copyrights in EPUB. The district court granted International summary judgment. The Sixth Circuit affirmed. International validly licensed its intellectual property and it would be premature to resolve any claim about future transfers. Under the Copyright Act, 17 U.S.C. 106, OverDrive granted International the right to use any copyrights OverDrive had in EPUB. International an unrestricted right to grant sublicenses with respect to those copyrights. View "OverDrive Inc. v. Open E-Book Forum" on Justia Law
Desire, LLC v. Manna Textiles, Inc.
After Desire filed suit against various defendants for copyright infringement, the district court held that Desire owned a valid copyright in the fabric design that was the subject of the action (the Subject Design), and that the Subject Design was entitled to broad copyright protection. The jury returned a verdict for Desire, finding that Manna, ABN, and Top Fashion willfully infringed the Subject Design, and that Pride & Joys and 618 Main innocently infringed the Subject Design.The Ninth Circuit held that the district court did not err in granting summary judgment in favor of Desire on the validity of its copyright and the scope of the Subject Design's copyright protection. The panel explained that the "similarity" of one design to another has no bearing on whether Desire "independently created" the subject design. Furthermore, defendants have also failed to introduce evidence that the Subject Design lacked the necessary "modicum of creativity" to be entitled to a valid copyright. The panel also held that the district court correctly extended broad copyright protection to the Subject Design. However, the panel held that the district court erred in permitting multiple awards of statutory damages. In this case, the district court correctly apportioned joint and several liability among the defendants, but the Copyright Act permits only one award of statutory damages here. Therefore, the panel affirmed in part, reversed in part, vacated the judgment awarding Desire multiple awards of statutory damages, and remanded for further proceedings. View "Desire, LLC v. Manna Textiles, Inc." on Justia Law
M & K Holdings, Inc. v. Samsung Electronics Co., Ltd.
The patent at issue is directed to an efficient method for compressing video files; its claims generally concern “a method of decoding a moving picture in inter prediction mode,” in which “one or more reference pictures are used to estimate motion of a current block” over the time of the video. In inter partes review, the Patent Trial and Appeal Board found all claims unpatentable.The Federal Circuit affirmed in part and vacated with respect to claim 3. The court rejected an argument that the Board erred by relying on references that do not qualify as prior art printed publications under 35 U.S.C. 102. Substantial evidence supports the Board’s finding that persons of ordinary skill in video-coding technology could have accessed the references with reasonable diligence; those references constitute printed publications within the meaning of 35 U.S.C. 102. The Board erred by finding claim 3 anticipated when the petition for inter partes review asserted only obviousness as to that claim. View "M & K Holdings, Inc. v. Samsung Electronics Co., Ltd." on Justia Law
Acrylicon USA, LLC v. Silikal GMBH
This appeal involves AC-USA's and Silikal's dispute over a shared trade secret consisting of the formula for 1061 SW, a flooring resin Silikal manufactured and sold (along with other flooring resins). AC-USA filed suit alleging that Silikal breached the agreement by selling 1061 SW without its written permission. A jury awarded AC-USA damages on each of its claims for common law breach of contract and for violation of the Georgia Trade Secrets Act of 1990 (GTSA) for misappropriation of the shared trade secret. The district court also awarded punitive damages on the misappropriation claim. The district court then denied Silikal's post-verdict motion for judgment as a matter of law on the misappropriation and contract claims, entering a final judgment for AC-USA for $5,861,415.The Eleventh Circuit rejected Silikal's argument that the district court lacked jurisdiction over its person, and thus affirmed the district court's denial of Silikal's motion to dismiss. However, the court concluded that AC-USA failed to prove its misappropriation claim because the evidence that Silikal misappropriated the trade secret is insufficient as a matter of law. Furthermore, AC-USA failed to prove that it sustained cognizable damages on its contract claim. Therefore, the court reversed the district court's judgment on the misappropriation claim and vacated the damages awarded on the contract claim. Finally, the court held that AC-USA is entitled to nominal damages and attorney's fees on its contract claim in a sum to be determined by the district court on remand. View "Acrylicon USA, LLC v. Silikal GMBH" on Justia Law
Fleet Feet, Inc. v. Nike, Inc.
Fleet Feet filed suit against NIKE, alleging that NIKE's advertising campaign with the tagline "Sport Changes Everything" infringed on Fleet Feet's trademarks "Change Everything" and "Running Changes Everything." Fleet Feet also sought a preliminary injunction, which the district court granted, enjoining NIKE's use of the tagline and any designation "confusingly similar" to Fleet Feet's marks.While NIKE's appeal was pending, NIKE ended its advertising campaign and disavowed any intent to continue using the tagline. Therefore, the Fourth Circuit dismissed the appeal as moot because NIKE no longer has a legally cognizable interest in the validity of the preliminary injunction. The court explained that, at best, NIKE's argument that the "confusingly similar" language in the preliminary injunction order presents only a potential controversy, which cannot sustain this appeal. In regard to NIKE's contention that the injunction bond is a live issue, the court agreed that the bond keeps the case as a whole from being moot but it does not do the same for the appeal. In this case, if the district court ultimately finds that NIKE's "Sport Changes Everything" campaign infringed on Fleet Feet's marks, the preliminary injunction will have been, at worst, harmless error. If it does not, NIKE may recover on the bond. Either way, the court explained that the district court must be the first to resolve NIKE's challenge on the merits. The court found no good reason to vacate the district court's order and opinion granting a preliminary opinion, remanding for further proceedings as necessary. View "Fleet Feet, Inc. v. Nike, Inc." on Justia Law