Calculating Reasonable Royalties

September 14th, 2009

Patent attorneys often express frustration over various holdings of the Federal Circuit.  This has certainly been true of decisions of the court in the area of damages and reasonable royalties.  It was interesting to hear Chief Judge Michel’s own frustration with some of the court’s holdings in the recent oral argument of Lucent Technologies v. Gateway.  You can listen to Chief Judge Michel’s comments [Here] and [Here]. 

There was a lighter moment in the oral argument when Chief Judge Michel asked counsel for Lucent  if the court should grant judgment in favor of Lucent if the panel deemed that Lucent’s expert had provided sufficient testimony on damages  — counsel for Lucent agreed that would be proper.  However, when Chief Judge Michel asked counsel for Lucent  if the court should grant judgment in favor of Microsoft if the panel deemed that Lucent’s expert had not provided sufficient testimony on damages, counsel for Lucent offered that perhaps a remand to the district court might be another choice.   [Listen]

The panel extended the oral argument to 70 minutes for this case — more than double the normal 30 minutes — and was quite complimentary of the argument conducted by Constantine Trela on behalf of Microsoft and John Desmarais on behalf of Lucent [Listen].

You can download or listen to the oral argument [Here].

You can read the court’s opinion [Here].

Diamond v. Bradley

September 13th, 2009

It has been more than a quarter of a century since the Supreme Court issued a substantive opinion concerning 35 USC section 101 — Diamond v. Diehr.  On the same day that the Court heard the oral argument in Diamond v. Diehr, it also heard a companion case in Diamond v. BradleyDiamond v. Bradley concerned 35 USC section 101 in the context of an apparatus claim for a computer.  Chief Justice Burger took no part in the decision which resulted in a 4-4 split decision by the remaining eight justices.  As a result, the CCPA’s judgment was affirmed.

Obviously, computing has advanced significantly in the last quarter of a century.  However, the following sound bite truly puts that advancement in perspective. [Listen]  (“[W]ord processors — you know, those machines that are replacing typewriters in offices.”)

C-Span and Bilski Oral Argument

September 11th, 2009

I noticed that C-Span already has coverage of Wednesday’s  Citizens United v. FEC oral argument before the US Supreme Court.  Citizens United v. FEC is an important case concerning campaign contributions.

C-Span’s US Supreme Court site

Citizens United v. FEC oral argument                                            

Hopefully this means that C-Span will air same day coverage of the Bilski v. Kappos oral argument on November 9th, as well.  Typically, C-Span petitions the Supreme Court to release audio of the oral arguments on the same day that the proceedings take place.  [Press Release]

LabCorp v. Metabolite

September 10th, 2009

With the Bilski v. Kappos briefing currently taking place, I thought it might be of interest to post the briefs from the Lab Corp v. Metabolite case.  As readers may recall,  the Supreme  Court dismissed the writ of certiorari in Lab Corp. v. Metabolite in 2006 as having been improvidently granted.

Petitioner’s Brief

Respondents’ Brief

Petitioner’s Reply Brief

Supreme Court’s Dismissal and Justice Breyer’s dissent

Martek Biosciences v. Nutrinova

September 9th, 2009

In the recent case of Martek Biosciences v. Nutrinova an expanded panel of five judges heard the appeal.  The audience at oral argument that day included visiting dignitaries from other countries and is the likely reason that an expanded panel was used.

An important issue in this case was whether  the claim term “animal” included humans.  The expanded panel produced a more “animated” oral argument than usual.  At one point Judge Rader remarked that his tennis playing would clearly categorize him as an animal while at another point Judge Gajarsa surmised that Judge Rader’s tennis playing was encompassed under the explicitly recited category of “swine.”  And, Judge Moore offered that Judge Rader was not a mammal because he lacked the ability to produce milk.  [Listen]  

Judges Lourie and Rader dissented from the majority opinion and asserted that the claim term “animal” did not include humans for the patent at issue.

You can listen to the entire oral argument [Here].

You can read the court’s opinion [Here].

Bilski briefs

September 6th, 2009

I noticed that the ABA has a nice site where one can easily access the briefs being submitted for the Bilski v. Kappos case.  The link is:  http://www.abanet.org/publiced/preview/briefs/nov09.shtml#bilski

So far, 45 amicus briefs have been filed — easily outnumbering briefs on file for any other case being argued in October or November.

“Each” — Hard cases make bad law

September 5th, 2009

      At first glance, the case of In re Skvorecz, appears to deal with how the transition word “comprising” is to be construed.  A closer reading reveals that the case really turns on how the word “each” is to be construed following recitation of multiple elements, in this case “a plurality of legs” or “at least two legs.”   The claim at issue in the reissue proceeding is for a table-like structure (a frame to support a chafing dish) and reads as follows:

1. A wire chafing stand comprising a first [an upper] rim of wire steel which forms a closed geometrical configuration circumscribing a first surface area, [a lower rim of wire steel forming a closed geometrical configuration circumscribing a second surface area with said first surface area being larger than said second surface area] and having at least two [a plurality of] wire legs with each wire leg having two upright sections interconnected to one another [at a location below the lower rim] in a configuration forming a base support for the stand to rest upon with each upright section extending upwardly from said base support to from an angle equal to or greater than 90° with respect to a horizontal plane through said base support and being affixed to the first [upper] rim adjacent one end thereof [and to said lower rim at a relatively equal distance below the point of attachment to said upper rim] and further comprising a plurality of offsets located either in said upright sections of said wire legs or in said first [upper] rim for laterally displacing each wire leg relative to said first [upper] rim to facilitate the nesting of a multiplicity of stands into one another without significant wedging.

Material in [brackets ] indicates Applicant’s proposed deletions and underlined material indicates proposed additions.

      The Board of Appeals and Interferences decided that in construing the claim to have its broadest reasonable  interpretation that the use of the word “each” need only refer to the “two legs” of the “at least two legs.”  The word “each” need not refer to every leg.  Thus, the Board found that the claim was anticipated by a reference that had offsets on two legs but not on every leg.

     The panel at the Federal Circuit disagreed with the Board and found the claim not to be anticipated.  Importantly, the panel reads the word “each” in this circumstance to mean “all” the legs or “every” leg.  Listen to the panel’s discussion of this issue with the counsel for the PTO:  [Here],  [Here], and  [Here].

     This decision has far-reaching effects beyond this particular case.  Moreover, while it is pro-patentee in the context of a reissue proceeding, the precedent it sets is actually anti-patentee in an infringement context.  Given the limited treatment in the opinion of why “each” must necessarily be understood to mean “all” or “every,” I think this case is ripe for en banc review.  Given the circumstances the parties have little incentive to request rehearing — the patentee has a completely favorable opinion from the Federal Circuit and the PTO is not known for being an advocate of broadly interpreted patents. 

     It seems to me that if  the word “each” has such a definite meaning in our language that the expression “each and every” would not exist.  The fact that “each and every” is a common expression suggests that the meaning of “each” is not as clear as the panel implies.  Furthermore, as counsel for the PTO remarked, if the Applicant wanted “each” to mean “all” he could have said “all.”

You can listen to the entire oral argument [Here].

You can read the court’s precedential opinion [Here].

UPDATE:

I was curious if the Federal Circuit had ever construed “each” not to mean “all” or “every” when referring to “a plurality” or “at least two” items.  In the case of ResQNet.com v. Lansa, 346 F.3d 1374 (Fed. Cir. 2003), the panel of Judges Newman, Rader, and Michel stated that:

Claim 1 of the ’608 patent recites “each of a plurality of fields,” which does not carry the same meaning as “every field.”  Rather, the recitation of “plurality” suggests the use of “at least two.”   See York Prods., Inc. v. Cent. Tractor Farm & Family Ctr., 99 F.3d 1568, 1575 (Fed. Cir. 1996) (“The term means, simply, ‘the state of being plural.’”).  While “at least two” may mean “every” under some circumstances, the two terms are not synonymous.  In sum, “each of a plurality of fields” means “each of at least two fields.”

[Read ResQnet.com v. Lansa]

Answer Key

September 4th, 2009

The answers for the quiz in the previous post are: 

A)  Chief Justice of the US Supreme Court    $217,400

B)  Judge, US Court of Appeals                   $179,500

C)  Librarian of Congress                           $172,200

D)  Register of Copyrights                          $158,800

E)  US Senator                                        $169,300

F) Vice President of the United States         $221,100

A=6, B=5, C=1, D=2, E=3, F=4         [Source]

Answer to the extra credit problem:  James Hadley Billington is the Librarian of Congress.

Also, US District Court judges made $169,300 in January of 2008 and US Magistrate judges made $155,756.

Match Game

August 29th, 2009

With the PTO recently posting a job opening for the position of Deputy Commissioner for Patent Examination Policy having a salary range of $117,787- $177,000, I became curious what other public officials are paid.  Can you match the following government positions with their 2008 salary?

A)  Chief Justice of the US Supreme Court  1)  $172,200

B)  Judge, US Court of Appeals                 2)  $158,800

C)  Librarian of Congress                         3)  $169,300

D)  Register of Copyrights                        4)  $221,100

E)  US Senator                                          5)  $179,500

F) Vice President of the United States       6)  $217,400

For extra credit, can you name the Librarian of Congress?

Answer key in the next posting.

Oral Argument of Brenner v. Manson

August 26th, 2009

Brenner v. Manson was decided by the US Supreme Court in 1966.  The case dealt with whether a method claim to produce a product is patentable when the putative inventor knew of no use for the produced product.  The Supreme Court decided that the method claim did not satisfy 35 USC section 101 under those circumstances.

This oral argument* is primarily of interest in regard to Bilski v. Kappos for the policy arguments that are made in regard to the purpose of section 101.  Interestingly, Justice Fortas, in writing for the majority, concluded the opinion with this final sentence: “[A] patent system must be related to the world of commerce, rather than to the realm of philosophy. . . .”  One might find that statement useful when considering whether 35 USC section 101 was intended to cover business methods.

Finally, in the Court’s opinion there is one interesting line that seems particularly apt for a patent case even though the Court was dealing with statutory construction rather than claim construction.  Justice Fortas wrote “[A] simple, everyday word can be pregnant with ambiguity when applied to the facts of life. . . .”

You can listen to the oral argument Here.

You can read the opinion Here.

*I believe this is the only place on the Internet where you can currently listen to this oral argument.  I ordered it from the Supreme Court archives.

Bilski v. Kappos

August 23rd, 2009

Mark your calendar.  The oral argument for Bilski v. Kappos before the United States Supreme Court has been set for Monday, November 9, 2009.  You can view the entire docket sheet [Here].

Oral Advocate — Thomas W. Krause, Associate Solicitor

August 19th, 2009

I am always impressed when I listen to recordings of Tom Krause arguing before the Federal Circuit on behalf of the PTO.  He comes across as knowledgeable, fair, and articulate.  Most importantly, it does not appear that he is trying to pursue any hidden agenda.  Rather, he always seems to be trying to accurately apply existing case law to the facts at hand.

Mr. Krause recently argued the case of In re Siemens Water Technologies Holding Corp.  You can listen to the entire oral argument here: [Listen].  I think this case is particularly interesting for the way that Judge Clevenger probed for an explanation of  how the PTO goes about making the factual determination of combining references in a 103 rejection and whether an examiner should be entitled to such a high degree of deference in stating a prima facie case of unpatentability in matters of “common sense” and “design choice” [Listen].  

Most prosecutors will get a chuckle out of this exchange about the limits on the use of “design choice” by examiners: [Listen].

The Rule 36 opinion is available here: [Read].

Oral Argument of the Month — May 2009

August 17th, 2009

The oral argument of the month for May 2009 is Corebrace v. Star Seismic.  The case concerned a license agreement to “make, use, and sell” licensed products.  The issues centered around whether that language necessarily included the right for a third party to make the licensed products for the licensee when a subsequent clause in the license agreement reserved rights to the licensor that had not been expressly granted by the license agreement.

You can listen to the entire oral argument here: [Listen].

You can read the opinion here: [Read].

“Just tweaking you a little bit”

August 13th, 2009

It’s well known that when a judge asks a question at oral argument that counsel should give a direct answer.  I think it is probably apropos to just chuckle and move on with the argument, as counsel did here, when the judge is “just tweaking you a little bit.” [Listen]

Summary of the Invention

August 13th, 2009

The 2007 case of  The Saunders Group v. Comfortrac is an interesting case for a number of reasons.  The patent at issue was a continuation that included claims broader than the claims of its parent patent.  The Federal Circuit had to construe the term “pneumatic cylinder” in the child patent.  Namely, the court had to determine whether the term pneumatic cylinder, as used in the child patent, was meant to include at least one pressure activated seal.  The phrase “pressure activated seal” had been used to further define “pneumatic cylinder” in the claims of the parent patent; but, the phrase “pressure activated seal” had been expressly omitted from some of the claims of the child patent.

Judge Michel first remarked during oral argument that while a continuation application might be appropriate in some situations for pursuing broader claims, it might not be appropriate in every conceivable circumstance. [Listen

The panel then went on to consider the effect of the Summary of the Invention section of the patent at issue.  In the patent at issue, the applicant had referred to “the invention” in the first two sentences and then referred to “embodiments of the invention” in subsequent sentences.  The panel quizzed the patentee’s attorney on the significance of that paragraph structure. [Listen

The exchange above is also interesting because the patentee’s attorney was able to argue that the boilerplate language appearing at the end of the patent was relevant to the meaning of the term at issue.

The court eventually held that the term “pneumatic cylinder” did not require the inclusion of a “pressure activated seal.”  Yet, the case is also interesting because the court indicated it might have reached a different decision if the term “pressure activated seal” had been omitted from all of the independent claims of the child patent rather than just some of the claims.  The court stated: “When the patentees filed the continuation application, they omitted that limitation [pressure activated seal] from some, but not all, of the new claims.  Had they omitted the limitation from all of the claims, it might be argued that the limitation was assumed to be present and did not need to be explicitly recited.  Making such a change to only some of the claims, however, is a strong indication that the claims not reciting pressure activated seals were not intended to require them.”

You can read the court’s opinion here [Read].  Again, note that this is a 2007 opinion.