What is a patent troll?

Here’s my working definition of the confusing term: Patent Troll.

Definition: The patent troll does not research or develop the technology or any products related to its patent. Rather, the patent troll waits for others to independently develop the patented technology into useful products and to create a market for those products. Once the newcomers are locked-into the new technology, the patent troll seeks rents either through licensing or litigation.

Question: Is this type of activity bad?

Links:

Philips v. AWH Takes a Casualty: “interface” construed as “parallel bus interface.”

AIPLATalk207Inpro II v. T-Mobile (Fed. Cir. 2006, 05–1233).

Inpro accused T-Mobile and RIM of infringement of its patent relating to electronic devices having user-operable input means such as a thumb wheel. (Pat. No. 6,523,079). After claim construction, the parties stipulated to summary judgment of noninfringement. 

Inpro’s PDA design includes a thumbwheel controller with a host interface.  The “PDA is designed to run independently by its own [CPU] until it is connected to a host computer.  Upon connection to the host computer, the host CPU takes control and can access the memory and other functional units of the PDA. 

Inpro appealed the construction of the term “host interface.” Interestingly, the specification only discussed the interface as a parallel bus, and actually disparages serial busses. 

The appellate panel agreed the defendants that the term’s definition should be limited to parallel bus interfaces:

The description of a serial connection in the discussion of the expansion bus interface, and the lack of any such description in the discussion of the host interface, reinforce the interpretation of the host interface as requiring a parallel bus interface, for that is the only interface described for that purpose.

The real killer for the plaintiff was that the following line from the patent:

A very important feature of the PDA in an aspect of the present invention is a direct parallel bus interface . . .

Because RIM and T-Mobile use serial ports, they can’t infringe the patent, which is construed to require parallel ports.

Patent Drafting Commentary: This case reinforces the trend of intentional obscurity in patent drafting.  Based on this case and others, patent drafters would do well to ensure that nothing in the patent document is “important,” “essential,” “required,” or the like.  Those terms do help the patent readers better understand your preferred embodiment, but in court they will only limit your claim scope.

Additional views of Judge Newman: Judge Newman wrote the majority opinion, but added a separate addendum on her own. Judge Newman agreed that the court’s construction of “host interface” was dispositive in this case.  However, she argued that the court should have construed all three disputed terms.

I believe we have the obligation to review the construction of the three appealed terms, for the interests of the parties and the public, as well as judicial economy, require final disposition of the issues of claim construction that were decided by the district court, and raised on appeal. This panel’s resolution of this infringement action based solely on the construction of “host interface” does not resolve, or render moot, the interpretation of the other disputed terms. . . .

We should review and decide all three of the disputed claim terms that are presented on this appeal, lest our silence leave a cloud of uncertainty on the patent, its scope, and its validity. Our obligation to the system of patent-based innovation requires no less.

 Judge Newman’s view appears to be at odds with Judge Mayer’s recent dissent in Old Town Canoe.

Patents are Still “Very Important”

In Inpro v. T-Mobile, an applicant’s use of the phrase “very important feature” in the specification allowed the court to legitimately import the “important” limitation into the claims.  That result prompted a resourceful, but anonymous Patently-O reader to do some quick analysis to figure out: who still uses phrases like “very important?” The answer: Lots of people.

 

The following table shows the percentage of patents using the terms “important” or “very important” by month over the past twenty years.  As you can see, “important” features are alive and discussed in a significant number of applications.

 

Application Month

“important” %

“very important” %

Jan 1985

23.5

1.65

Jan 1990

24.0

1.80

Jan 1995

28.3

1.82

Jan 2000

29.6

2.08

Jan 2001

27.5

1.80

Jan 2002

27.0

1.78

Jan 2003

24.4

1.95

Jan 2003*

32.3

2.31

Jan 2004*

31.4

2.21

*Data taken from published patent applications, which may or may not also have issued as patents.

 

Of course, there are times when it is useful to talk about a “very important” feature of the invention — such as if you are attempting to avoid known prior art.  However, I would be cautious even on that point.

 

A few caveats to this data — some of these hits might be in the background saying “this problem is very important.”  Some of them might also be saying it is “not very important.”

Patently-O TidBits

  • Highway 101: Oracle and GWU are hosting a timely symposium on patentable subject matter in light of Lundgren and Metabolite.  For law school faculty, Oracle will sponsor your paper and travel expenses to the November conference in Washington DC. Conference Details PDF.
  • Fire of Genius: After regularly contributing to several blogs, Professor Joseph Miller at Lewis & Clark has started his own blog
  • TinyTechIP: Blaise Mouttet is also a long-time blog comment-writer.  His new blog focuses on nanotechnology patent developments.
  • PunchcardTechnoLawyer: I regularly receive the TechnoLawyer intellectual property newsletter, known as “IPMemes.” Last year, TechnoLawyer members picked Patently-O as the “Best Practice Area Blog” on the net.  This year, Patently-O is up for Favorite Legal Blog — Your vote would be appreciated.
    • How to vote (3 minute process):
    • Note — the one issue with TechnoLawyer is that they send quite a few e-mails — I would recommend using your yahoo or gmail account. (I setup a rule in outlook)

DJ Counterclaims Allow Adjudication of Invalidity Counterclaims Even After Noninfringement Decision

The Old Town Canoe Company: Our First Hundred YearsOld Town Canoe v. Confluence Holdings (Fed. Cir. 2006, 05–1123).

Old Town sued Confluence, asserting infringement of its patent covering layered polyethylene canoes. Confluence filed declaratory judgment counterclaims of invalidity and unenforceability.

After a few days of trial, the judge called it quits — first ruling that as a matter of law, the patents were not infringed, and the next day taking further arguments and ruling that the patents were not invalid and not unenforceable.

On appeal, the CAFC majority agreed that the claims were not infringed (based on claim construction) and then bit into the validity analysis.

Enablement: Because the time and temperature settings of the canoe manufacturing process were not disclosed, a jury could find that undue experimentation was required.

Best mode: Best mode requirement only applies to the claimed invention. However, the defendant’s evidence that a preferred mode had not been disclosed to the PTO was enough to overcome the Court’s judgment as a matter of law.

Inequitable Conduct: Without evidence of intent, the patentee’s failure to disclose the best mode is not “material” as a matter of law.

J. Mayer’s Dissent: Dissenting-in-part, Judge Mayer argued that after the district court decided that the defendant did not infringe, the declaratory judgment jurisdiction of the counterclaims vanished.  Those counterclaims became moot.  Thus, the lower court’s decision on validity and enforceability should be vacated.

Practice Strategy: This case is a prime example of why a defendant should include declaratory judgment counterclaims rather than just defenses.  With counterclaims, the plaintiff will need the defendant’s agreement to end the case.

Book Review: Pharmaceutical Patent Law

PharmPatentLawPharmaceutical Patent Law
by Professor John R. Thomas (Georgetown).
December 2005

$355 from Amazon.com

Professor Thomas has written an excellent treatise that will be very well regarded for years to come.  The book includes 600+ pages of text that is surprisingly readable plus a large appendix in CD form. 

This is not primarily a textbook for law students.  No, the book provides answers and focused analysis that a practitioner will find extremely useful. The focus of the book is clearly the interplay between patents and the FDA.  However, the book also details the pharmaceutical patent prosecution process and particular litigation issues that are important in pharmaceutical patent litigation. The review on Amazon (link above) does a good job of describing the contents.

I have found the book useful and would recommend it to you as well.

 

In re EchoStar: Opinion Waiver Does Not Extend To Work Product Never Communicated To The Client

In re EchoStar Communications (Fed. Cir. 2006, order).

In an order on mandamus, the CAFC has vacated a district court’s decision that would require EchoStar’s outside counsel (who provided an infringement opinion) to produce documents that were never communicated to EchoStar.

Before TiVo sued, EchoStar relied on the advice of its in-house counsel in continuing to produce its allegedly infringing product.  After the suit was filed, EchoStar hired Merchant & Gould (M&G), but decided not to rely on the IP Boutique’s advice.  Since EchoStar was relying on advice in defense of a willfulness charge, TiVo asked for any M&G opinions and associated work product.

The district court ordered production of M&G’s infringement opinions as well as “all work product . . . whether or not communicated to EchoStar.”  The non-communicated subject matter, according to the district court, might contain information disclosed to EchoStar — even if the documents themselves were not disclosed.

On appeal, the CAFC (Gajarsa) came to several conclusions:

  1. An in-house attorney providing an opinion to executives can be an “opinion of counsel.”  And, relying on that opinion in court will create a waiver of attorney-client privilege. According to the court, “[u]se of in-house counsel may affect the strength of the defense, but it does not affect the legal nature of the advice.”
  2. Attorney-Client privilege is distinct from Work-Product protection.  Waiver of one, does not necessarily waive the other.
  3. Here, “[w]ork-product waiver extends only so far as to inform the court of the infringer’s state of mind.”
  4. Importantly, “work product, which is never communicated to the client, is not discoverable” even after waiver of attorney-client privilege.

[I]f a legal opinion or mental impression was never communicated to the client, then it provides little if any assistance to the court in determining whether the accused knew it was infringing, and any relative value is outweighed by the policies supporting the work-product doctrine.

This case goes a long way in clarifying the scope of waiver, which has been in dispute in essentially every patent case where an opinion is asserted. The court also discusses how redaction should take place and gives rather easy guidlines for determining when a document would fall within the waiver.

Notes:

 

Blogger Defamation Litigation

VisitMaine AdvertisementWarren Kremer Paino v. Dunston (D. Maine)

There is an interesting controversy brewing about a blogger (Dunston) who has been sued for defamation and copyright violation by Maine’s tourism advertising firm (Warren Kremer).  Dunston reposted (and derided) one of Warren Kremer’s recent ads that mistakenly included the number to a phone-sex hotline.  The defamation claim is partially based on Dunston’s accusation that the ad firm is “pissing away” Maine’s tourism dollars.

Blogger Ron Coleman is one of the attorneys representing Dunston.

UPDATE: Warren Kremer dismissed the suit.

Links:

 

 

Editorial: The Orange Book Should Include Process Patents or Be Eliminated

By Aaron Barkoff

Pharmaceutical-related patents are allowed in the FDA’s Orange Book only if they’re “composition” or “method of use” patents.  Such patents may cover the drug compound, specific formulations of the drug, or methods of treating certain diseases by administering the drug.  But “process patents,” which cover methods for making (chemically synthesizing) the drug compound, are not allowed to be listed in the Orange Book.  This inconsistency creates several problems for drug companies.

In ordinary circumstances, a patent owner trying to enforce its patent must first get the competitor’s product, look at it and test it, determine that it’s covered by the patent, and then file a lawsuit.  In most pharmaceutical patent cases, however, the patent owner need not bother with that.  Instead, if an innovator drug company lists its patent in the Orange Book, a generic drug company is required by law to notify the patent owner that it is making (and plans to sell) a drug that arguably infringes the patent.  Once notified, the patent owner can file a lawsuit for patent infringement.  But notice of possible infringement is required only with respect to patents that are listed in the Orange Book.  A patent might not be listed for in the Orange Book because either (a) it’s a process patent; or (b) the patent owner simply forgot to ask the FDA to include it in the Orange Book.

For generic drug companies, the Orange Book provides notice that there are patents out there covering FDA-approved drugs.  This relieves the generic drug company’s burden of searching for patents before it invests in research to develop a generic drug product.  But patent searching isn’t too difficult nowadays, and generic companies have to do it anyway because not all patents of concern are listed in the Orange Book.

For innovator drug companies, the Orange Book provides more valuable benefits.  First, the Orange Book relieves the innovator’s burden of monitoring the marketplace for new generic drugs that infringe its patents.  As long as an innovator drug company gets its patent listed in the Orange Book, a generic drug company that desires to make its own version of the drug must, under law, provide notice of possible infringement to the innovator.  Upon receiving notice, the innovator is free to file for patent infringement–without having to see the generic product or conduct expensive chemical testing on it.  Second (and probably more importantly to the innovator drug companies), the filing of a lawsuit based on a patent listed in the Orange Book automatically invokes a 30-month stay before the generic drug company can sell its drug.

But why can’t any patent relating to an FDA-approved drug be listed in the Orange Book?  The answer must be in some sort of bargain struck by lobbyists.  After all, the reasons for the Orange Book’s existence apply as well or better when it comes to process patents.  For example, to enforce its process patents, an innovator drug company has to monitor the marketplace, obtain a sample of the competitor’s product, test it, and establish a “good faith basis” for filing a patent infringement lawsuit.  In other words, the innovator drug company has to gather some evidence (usually the results of chemical testing) that the generic drug company uses the patented process to make the drug.  It is difficult and expensive to gather such evidence.  In fact, in most cases it would probably be easier to find chemical evidence that a generic drug company infringes a compound or formulation patent, yet because compound and formulation patents may be listed in the Orange book, such monitoring and evidence isn’t required.

Furthermore, owners of process patents must continue to monitor the marketplace even after they win in litigation.  Suppose an innovator drug company monitors the market, tests a new generic drug, suspects infringement of its process patent, files a lawsuit, and wins.  The generic drug company must then stop selling its drug.  However, the generic drug company is free to purchase API made differently, from a different source perhaps, and amend its drug application with the FDA.  The innovator drug company that already proved infringement won’t be given notice, and therefore must continue to monitor the market and test all new drugs for infringement of its process patents.  Such continuous monitoring isn’t necessary for owners of composition or method of use patents, because a generic company that loses in the first round of litigation will have to provide notice to the innovator company if it later files another drug application.  As long as composition or method of use patents are in the Orange Book, the generic drug company must provide notice.

Maybe the inconsistency that only some, but not all, kinds of pharmaceutical patents may be listed in the Orange Book is a minor issue.  Maybe the bigger problem is that the Orange Book exists at all.  Every other company has to continuously monitor the marketplace for potentially infringing products.  And monitoring and testing is expensive for all sorts of high tech industries.  What makes the drug companies special?  Moreover, because the FDA includes any composition or method of use patent in the Orange Book that an innovator company asks it to list, and does not question whether such listings are proper, many patents that don’t belong in the Orange Book are listed there.  This often leads to unnecessary litigation between drug companies.  Maybe a way to bring consistency to FDA regulations is to eliminate the Orange Book entirely.

Notes:

  • Post author: Aaron Barkoff is a patent litigator at the Chicago office of MBHB. He hold a PhD in Biochemistry from Wisconsin and a JD from the University of Chicago. 
  • Comments are welcome.

Patently-O TidBits

Here are three new patent papers that I found interesting:

  • AcademicEggHeadBeth Simone Noveck of New York Law School proposes a peer-to-patent system that would harness the public “collective intelligence” and allow members of the public to suggest references to the Examiner. [Link]
  • Stuart Minor Benjamin and Arti Rai of Duke Law School provide a useful framework for how the Administrative Procedures Act (APA) should be applied in post-grant reviews. [Link]
  • Margo Bagley of Emory Law School is worried that the prospect of patent rights forces researches to delay dissemination of their research. Professor Bagley proposes an opt-in filing delay that would allow a two-year grace period coupled with early publication of the patent application [Link] (Published in the Boston College Law Review).

Patent Blog Posts: The world of patent blogs is continuing to grow.  Here are

Patently-O Intellectual Property Schedule: I have started a new Google calendar to keep track of upcoming conferences and events in the patent world. The feed for the calendar is publicly available through these icons:   and is apparently best seen through any product that supports the iCal format (like iCal for Mac or Mozilla’s Sunbird).  Please send suggested events to patentcalendar@gmail.com.

Expert Testimony Not Required for Infringement Finding

Screenshot019Kyocera Wireless v. President Electronics and Tony Colida (Fed. Cir. 2006, unpublished).

In a DJ action, Kyocera was awarded summary judgment of noninfringement. On appeal, Colida argued that expert testimony is required for such a summary determination. The CAFC, however, affirmed its prior precedent that expert evidence is “not always necessary to resolve questions of patent infringement.”

While expert evidence may be necessary in cases involving complex technology, this is not such a case, and Mr. Colida does not explain how expert evidence would have been helpful.

Affirmed

Colida has been involved in several other CAFC decisions:

 

Should the Patent Office Kill Late Claiming?: Proposed Continuation Change

In January 2006, the PTO proposed dramatic changes to patent continuation practice that would essentially allow only one continuation (or CIP or RCE) per application. [Link]. 

Although the PTO has justified these changes based on a need to reduce examiner workload, the real controversy with extended continuations is what I call “late claiming.” 

There are many different ways to “claim” an invention in a patent application.  Often, an applicant may pursue one aspect of the invention in the original application, and then file continuations to obtain coverage for other aspects.  That practice is fine and legal, but can create business problems when the applicant waits until learning of a competitor product before adding claims that cover that new product.

Late claiming occurs when the applicant adds new claims to cover what has arisen in the marketplace since filing the original patent application.

According to the law, those new claims are generally legitimate so long as they are enabled by the original written description.  However, the possibility of late claiming creates another potential down-the-road liability for product developers.

Is late claiming a problem?
Will the PTO rule change reduce late claiming?

USPTO Continuation Rule Changes

Supreme Court Moves Toward Hearing AT&T v. Microsoft Software Export Case

When can a U.S. patent be used to recover damages for infringement occurring abroad? The answer is actually quite often.  Over the past couple of years, plaintiffs have recovered huge damages (or settlements) in U.S. courts for activities that at least partially occurred abroad.  In NTP v. RIM, RIM’s BlackBerry system was considered to be used “in the United States” because the e-mail exchange was being controlled by and for the beneficial use of U.S. customers.  In Eolas v. Microsoft and AT&T v. Microsoft, the Court of Appeals for the Federal Circuit (CAFC) agreed that the transmittal of computer code could create liability under 271(f) a “component” of a patented invention “supplied” from the U.S. In Shell v. Union Carbide the court further clarified that method claims could have components as well — in this case, the component was a compound used in the patented chemical process.  To now, each of these cases have stalled after the CAFC decision when the Supreme Court failed to accept them on petition for certiorari.  The lone remaining case is AT&T v. Microsoft.  In that case, the Supreme Court has asked the U.S. Solicitor General for the views of the U.S. Government before the Court makes its decision on certiorari.  As a historical note, the Supreme Court has not addressed the issue of extraterritorial infringement since the DeepSouth Packing case of 1972, which prompted Congress to pass Section 271(f).

PatentlyO041

AT&T v. Microsoft (on petition for certiorari).

This issue is huge for Microsoft and for U.S. software developers. Microsoft develops much of its software in the U.S., and ships the code around the world.  In the Eolas case, of the half-billion dollar verdict, $330 million was premised on exported code.

In the AT&T case, the CAFC essentially held that Microsoft’s act of shipping its code to a foreign office constitutes patent infringement and any consequential sales or licensing of the shipped code will create patent infringement damages.

The software here involves enhancing the sound quality of synthesized speech while maintaining a high data compression.

In its petition, Microsoft asks two questions:

1) Whether digital software code – an intangible sequence of “1’s” and “0’s” – may be considered a “component[] of a patented invention” within the meaning of Section 271(f)(1); and, if so

2) Whether copies of such a “component[]” made in a foreign country are “supplie[d] . . . from the United States.”

The petition attempts to show that the CAFC has gone astray by interpreting the statute in a manner “appropriate to the technology at issue” rather than according to its “plain meaning and legislative history” as required by Supreme Court precedent.

The petition also impliedly argues that software itself should not be patentable.  

The decision below is premised on a commonly held misunderstanding of the nature, and thus the patentability, of software.

Noted attorney Ted Olson and his able team (including Matthew McGill) are handling the appeal.

AT&T’s Opposition

AT&T quickly notes that Microsoft has already appealed this identical issue in the Eolas case, and lost there as well. In addition, AT&T discusses Microsoft’s highly public (but yet unsuccessful) lobbying for patent reform in Congress as evidence that this is an issue that has been considered and rejected by the lawmaking body. Of course, AT&T also argues that the lower court decision does nothing to “expand the extraterritorial reach of U.S. patent laws.

Petitioner’s extraterritoriality argument is a red-herring.  Years before . . . the court defined the limits of section 271(f) in order to avoid “the appearance of ‘giving extraterritorial effect to United States patent protection.’”

Waymark (looking only to activity within the U.S. when adjudging infringement).

Amicus in Support of Petitioner by the Software & Information Industry Association (SIIA).

The SIIA is a trade group with over 750 corporate members argued that the CAFC’s new rule upsets settled expectations.

SIIA makes what I see as an important distinction that in Microsoft’s case, the code supplied from the U.S. is not actually incorporated into the infringing products.  Rather, the code shipped abroad, copied, and then the copies are installed in the foreign country.  They argue that the act was never intended to capture millions of infringing acts based on the supply of only a single component.

Next Steps:

The SG is expected to take several months to provide its input, and this case will not be heard until 4th Quarter 2006. It is currently too-late for parties to file amici briefs.  However, the SG will accept input from the public on this important issue.

Documents:

Links:

  • NTP v. Research in Motion, (271(f) “component” does not apply to method claims).
  • AT&T v. Microsoft, 414 F.3d 1366 (Fed. Cir. Jul. 13,2005) (271(f) “component” applies to method claims and software being sold abroad);
  • Eolas v. Microsoft, 399 F.3d 1325 (Fed. Cir. Mar. 2,2005) (271(f) “component” applies to method claims);
  • Pellegrini v. Analog Devices, 375 F.3d 1113 (Fed. Cir. 2004) (271(f) “component” does not cover export of plans/instructions of patented item to be manufactured abroad);
  • Bayer v. Housey Pharms, 340 F.3d 1367 (Fed. Cir. 2003) (271(g) “component” does not apply to importation of ‘intangible information’).

Notes:

** 35 U.S.C. 271(f)

(1) Whoever without authority supplies . . . from the United States . . . a substantial portion of the components of a patented invention . . . in such manner as to actively induce the combination of such components outside of the United States in a manner that would infringe the patent if such combination occurred within the United States, shall be liable as an infringer.

(2) Whoever without authority supplies . . . from the United States any component of a patented invention that is especially made . . . for use in the invention and not a staple article . . . suitable for substantial noninfringing use. . . , knowing that such component is so made . . . and intending that such component will be combined outside of the United States in a manner that would infringe the patent if such combination occurred within the United States, shall be liable as an infringer.

CAFC’s Jurisdiction Extends to Settlement Disputes Where Settlement References the Patent Act

Parental Guide of Texas v. Thomson (Fed. Cir. 2006).

The most interesting aspect of this case is that the CAFC was willing to decide it.  In a post-settlement dispute over damages, Parental Guide originally appealed to the Fifth Circuit.  On motion, the Fifth Circuit transferred the case to the CAFC because the settlement agreement “expressly refers to the patent statute, 35 U.S.C. § 284.”

Because it was “at least plausible” that a determination of Section 284 would be necessary to decide the case, the appellate panel felt compelled to hear the appeal.

 

Judge Linn Dissent: File Wrapper Should Not Serve as Prior Art

Bruckelmyer v. Ground Heaters (Fed. Cir. 2006).

The majority held that an unpublished patent application that eventually issued as a Canadian patent was a “printed publication” under 35 U.S.C. § 102(b).  Judge Linn dissented:

[T]he text of an issued patent does not generally serve to guide researchers to the file history for a more expansive disclosure of the described invention, and it certainly does not lead researchers to the file history for disclosure of subject matter not described in the issued text. . . . The fact that an additional drawing, disclosing additional structure, is present in the application file is a matter of sheer happenstance nowhere indicated in the issued patent. For this reason, it is my view that, as in Cronyn, the anticipatory drawings at issue in this case are “not accessible to the public because they have not been cataloged or indexed in a meaningful way.” . . . In this case, in addition to not being meaningfully indexed, as discussed above, no copies were known to have been made or distributed during the critical period, and the ’119 application was available for viewing only at the Canadian Patent Office in Hull, Quebec.

 

Unpublished Foreign Patent Application Invalidates Later Filed Patent

Bruckelmyer v. Ground Heaters (Fed. Cir. 2006).

Bruckelmyer has two patents on methods of thawing frozen ground so that a layer of concrete can be laid on top of the ground. The trial court found Bruckelmyer’s patents obviated by a Canadian patent application and decided the case on summary judgment.

Interestingly, the Canadian patent application included two important figures that were cancelled during prosecution.  Those figures were reportedly required for a finding of obviousness.

On appeal, Bruckelmyer argued that the unpublished Canadian patent application was not a “printed publication” under 35 U.S.C. Section 102(b) and thus, was not prior art.

The CAFC found that the original application was “publicly accessible,” and thus a prior art “printed publication” because the Canadian prosecution file was open to the public more than a year before Bruckelmyer filed his application.

A given reference is “publicly accessible” 

upon a satisfactory showing that such document has been disseminated . . . to the extent that persons interested and ordinarily skilled in the subject matter . . . exercising reasonable diligence, can locate it and recognize and comprehend therefrom the essentials of the claimed invention without need of further research or experimentation.

In re Wyer, 655 F.2d 221, 226 (CCPA 1981).

Here, the Court found that this particular application could be located because the related patent discussed a solution for the same problem addressed by Bruckelmyer’s patents.

Thus, the application was found to be prior art even though there was no evidence that it was actually disseminated.

LiveBlogging The Blog Law Conference

Day one of our blog law conference has been a great success.  Cathy Kirkman of Wilson Sonsini and I are co-hosts of this LSI conference that has been billed as the first CLE covering the “law of blogs.”

In Lava Trading Dissent, Judge Mayer Laments de Novo Review

AIPLATalk203Lava Trading v. Sonic Trading Management (Fed. Cir. 2006, 05–1177)

The majority overturned a lower court claim construction, but Judge Mayer dissented:

The decision today is yet another example of the unfortunate consequences of Markman v. Westview Instruments, Inc., 52 F.3d 967 (Fed. Cir. 1995) (en banc), Cybor Corp. v. FAS Techs., Inc., 138 F.3d 1448 (Fed. Cir. 1998) (en banc), and Phillips v. AWH Corp., 415 F.3d 1303 (Fed. Cir. 2005) (en banc), which cemented this court’s jurisprudence with respect to claim construction as being purely a matter of law subject to de novo review. Because claim construction is treated as a matter of law chimerically devoid of underlying factual determinations, there are no “facts” on the record to prevent parties from presenting claim construction one way in the trial court and in an entirely different way in this court. By not dismissing this case, we issue a decision based on an undeveloped record. We set ourselves up to have to decide claim construction again later, which could well differ from the ruling today. Furthermore, allowance of an appeal of the trial court’s perfunctory, offhand ruling from the bench, for all intents and purposes allows an interlocutory appeal of claim construction, which portends chaos in process.

Claims Should be Construed within the Context of the Accused Device

AIPLATalk203Lava Trading v. Sonic Trading Management (Fed. Cir. 2006, 05–1177)

In today’s case of Lava Trading, the CAFC again found that knowledge of the accused product is import for providing “a proper context for an accurate claim construction. . . . Without the vital contextual knowledge of the accused products or processes, this appeal takes on the attributes of something akin to an advisory opinion on the [patent] scope. ” 

This decision falls in line with the recent Wilson Sporting Goods case that held “while a claim is not to be construed in light of the accused device, in an infringement case, it must inevitably be construed in context of the accused device.”