Anthropic Settles the Authors’ Class Action on Training Data: What It Means for Fair Use, Compensation, and Competition

by Dennis Crouch

Anthropic and a certified class of book authors have reportedly reached a class-wide settlement in Bartz v. Anthropic PBC, the Northern District of California case challenging the company’s ingestion of millions of books as training data to build Claude. The parties filed a notice on August 26, 2025, stating that they executed a binding term sheet and will seek preliminary approval in early September. The procedural posture reveals two critical features: (1) Judge Alsup’s June order finding that training on lawfully obtained books constituted fair use as a matter of law; and (2) his conclusion that Anthropic’s acquisition and storage of “pirated” works in a central library could constitute infringement—potentially exposing the company to staggering statutory damages.

The settlement averts that trial (and class certification appeal) but not the broader policy questions surrounding AI training and copyright. Judge Alsup’s analysis demonstrates why fair use isn’t a blanket defense for LLM development. While he granted summary judgment for Anthropic on training with lawfully obtained copies, he distinguished between “training” and maintaining a “shadow library” as separate uses under copyright law. This distinction matters: even where certain training uses qualify as fair use, developers remain exposed to infringement claims based on how they acquire and store training materials. The ruling reinforces that fair use under 17 U.S.C. § 107 requires a fact-specific, work-by-work analysis—not a categorical exemption for AI development.

The Evolving Policy Landscape

The settlement occurs against a shifting federal backdrop on AI and copyright policy. Earlier this year, the U.S. Copyright Office released a pre-publication report concluding that many scraping-based training regimes would constitute infringement absent explicit permission from rightsholders. However, the day after the report’s release, President Trump removed Register of Copyrights Shira Perlmutter – a move I interpret as partially reflecting the administration’s prioritization of AI development over copyright enforcement concerns.

This policy tension raises fundamental questions about the appropriate balance between innovation incentives and authorial rights. One way to frame current developments is as an effort to normalize uncompensated use of copyrighted works for AI “infrastructure.” From a constitutional perspective, if the government were to mandate or effectively authorize such uncompensated use, this might constitute a Taking requiring just compensation under the Fifth Amendment. Alternatively, one might invoke the more provocative analogy of Johnson v. M’Intosh, 21 U.S. (8 Wheat.) 543 (1823), which describes assertions of sovereign prerogative over private interests without compensation requirements. (more…)

Non-IP En Banc: Federal Circuit Limits Federal Procurement Protests

by Dennis Crouch

The Federal Circuit this week decided a non-patent en banc case - focusing on standing to challenge government procurement decisions as a federal claim under 28 U.S.C. § 1491(b). Percipient.AI, Inc. v. United States, No. 2023-1970 (Fed. Cir. Aug. 28, 2025).

The statute provides jurisdiction to the Court of Federal Claims over actions filed by "an interested party objecting to (1) a solicitation by a Federal agency for bids or proposals for a proposed contract or to (2) a proposed award or the award of a contract or (3) any alleged violation of statute or regulation in connection with a procurement or a proposed procurement." 28 U.S.C. § 1491(b)(1) (numbering not found in statute).

Here, the 7-4 court concluded that an "interested party" under the statute must be "an actual or prospective bidder or offeror whose direct economic interest would be affected by the award of the contract or by failure to award the contract."  And, this definition applies even to the third prong where the objection is based upon the third prong rather than upon bids or proposed award.


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Remote Work on the Chopping Block: How Union Exclusion Reshapes USPTO Employment

by Dennis Crouch

 

In a significant labor relations development that will reshape working conditions for thousands of patent examiners, President Trump issued an executive order on August 28, 2025, excluding the USPTO's entire Patents business unit from federal collective bargaining protections.  The order, titled "Further Exclusions from the Federal Labor-Management Relations Program," adds "Office of the Commissioner for Patents and subordinate units, Patent and Trademark Office" to the list of agencies excluded from Chapter 71 of Title 5, United States Code (the federal labor-management relations statute). This exclusion effectively terminates union representation for patent examiners by the Patent Office Professional Association (POPA), which has represented USPTO examiners for years based upon negotiated collective bargaining agreements that govern everything from telework arrangements to performance evaluation procedures.

The executive order relies on the President's authority under 5 U.S.C. § 7103(b)(1), which permits excluding agencies or subdivisions when the President determines they have "as a primary function intelligence, counterintelligence, investigative, or national security work" and that Chapter 71 "cannot be applied to that agency or subdivision in a manner consistent with national security requirements and considerations." According to Acting USPTO Director Coke Morgan Stewart's internal message to staff, "the administration has determined that the Patents business unit and the Office of the Chief Information Officer (OCIO) business unit have 'as a primary function . . . national security work,'" rendering federal labor protections inconsistent with national security considerations. The changes took effect immediately and remove POPA's bargaining rights for patent examiners.

I want to pause in the analysis to acknowledge that thousands of patent examiners now face significant uncertainty about their working conditions and job security, including big questions about whether they will need to uproot their family in order to keep a job.


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Google v. Sonos: Federal Circuit Validates Strategic Patent Continuation Practice (With Limits)

by Dennis Crouch

The Federal Circuit has now wiped away Judge William Alsup's dramatic post-trial decision in Sonos v. Google. In a nonprecedential opinion, the court reversed the lower court's finding of prosecution laches, reiterating that laches is an equitable defense reserved for rare cases. Google LLC v. Sonos, Inc., No. 2024-1097 (Fed. Cir. Aug. 28, 2025).

Prosecution laches requires both (1) an unreasonable and unexplained delay in patent prosecution and (2) a showing of prejudice to the accused infringer in the form of intervening rights (e.g. evidence that others "invested in, worked on, or used the claimed technology during the period of delay"). Here, Google failed to present evidence that it (or others) changed their position or made investments in reliance on Sonos's delay and so laches could not apply. At times, egregious delay can trigger laches absent a specific showing of harm. Here, however, the panel emphasized that standard continuation practice, even over more than a decade, is not itself an "egregious misuse" of the system sufficient to trigger laches in the absence of specific prejudice. Prior prosecution laches cases all involved pre-1995 patents and decades of delay and this was the first time prosecution laches had been used to render a post-1995 patent unenforceable in a situation where delays in prosecution automatically delayed patent term as well. The court ultimately reversed Judge Alsup's unenforceability ruling and reinstated the jury's $32 million verdict on the Sonos "zone scenes" patents.

Although Sonos won the appeal, the decision does not provide a full green light to the continuation practice found here - particularly where claims covering competitor activity are first added to the patent family long after the original filing and publication dates. The Federal Circuit's analysis focused heavily on the fact that Sonos's 2007 patent application previously published, well before Google's alleged investments began in 2014-2015. This meant Google could not claim prejudice from incorporating into its products a feature that was already publicly disclosed in a pending patent family.


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Love Letters Gone Wrong: Federal Circuit’s First AIA Derivation Appeal Hinges on Valentine’s Day Emails

by Dennis Crouch

The Federal Circuit recently decided its first AIA derivation proceeding appeal. In Global Health Solutions LLC (Burnam) v. Selner, No. 23-2009 (Fed. Cir. Aug. 26, 2025), the court affirmed a PTAB decision favoring the first-filer -- but found a harmless error with the Board's analysis (the Board erred by framing its analysis in first-to-invent terms rather than first-to-file).   Ultimately, the case outcome keeps derivation proceedings in their corner as narrow and rare exceptions to the general first-to-file rule.  The decision also serves as a reminder that, while conception timing remains relevant for establishing derivation and rebuttal, the AIA system fundamentally abandons any inquiry into which party conceived the invention first.

The case involved competing patent applications for an emulsifier-free wound treatment ointment filed by former collaborators.  Marc Selner filed his application on August 4, 2017, four days before Bradley Burnam's company Global Health Solutions LLC (GHS) filed its application.  GHS petitioned for a derivation proceeding, arguing that Selner derived the invention from Burnam's earlier conception and communication. Although Burnham established a prima facie case of derivation, Selner was able to rebut that presumption with evidence of prior conception.

The dispute was resolved based upon a 3 hour time difference between emails from the competing inventors on Valentine's Day 2014.


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F-Bombs Away: Federal Circuit Sends Brunetti Back to TTAB to Consider its Failure to Function Doctrine

by Dennis Crouch

In a divided decision that highlights ongoing tensions around trademark law's Failure to Function doctrine, the Federal Circuit in In re Brunetti, No. 2023-1539 (Fed. Cir. Aug. 26, 2025), vacated a TTAB refusal to register the word FUCK as a trademark for various consumer goods and retail services. The court rejected most of applicant Erik Brunetti's constitutional challenges but concluded that the Board failed to articulate a coherent standard for determining when widely-used words can function as source identifiers.

Writing for the majority, Judge Dyk criticized the Board's apparent "I know it when I see it" approach to failure-to-function refusals, while Judge Lourie dissented, arguing that substantial evidence clearly supported the Board's conclusion that the "f-word" cannot serve as a trademark for the applied-for goods. (While the majority used FUCK a total of 19 times, Judge Lourie was content with "f-word" and "f[]."  I would have used "F-Bomb.")

The case represents Brunetti's second major trademark dispute to reach the Federal Circuit, following his successful Supreme Court challenge in Iancu v. Brunetti, 588 U.S. 388 (2019), which invalidated the Lanham Act's prohibition on registering "immoral or scandalous" marks. However, this case involved different trademark applications - seeking registration of FUCK (not FUCT as in the prior case) for goods including sunglasses, jewelry, backpacks, and retail services - and raised entirely different legal issues centered on the fundamental requirement that trademarks function as source identifiers under 15 U.S.C. § 1127.

Patent Alert: The Federal Circuit's emphasis on consistency in Brunetti offers a potential parallel argument against USPTO decision-making in the patent context as well. As discussed below, the court's reliance on Booking.com's mandate that the PTO "consider its 'own past practice' in developing a 'comprehensive rule'" suggests that patent applicants facing inconsistent rejections may now have stronger grounds to challenge the USPTO's rejections.


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Hips Don’t Lie, But Patent Specs Might: CeramTec’s Color Conundrum and Trade Dress After Patenting

by Dennis Crouch

CeramTec has now filed its petition for certiorari challenging the Federal Circuit’s affirmance of the TTAB’s cancellation of CeramTec’s “pink ceramic hip” trade‑dress registrations based upon overlapping utility patent protection. In its 2001 TrafFix decision, the Supreme Court held that a utility patent constitutes "strong evidence" that the claimed features are functional, thereby creating a presumption against trademark protection for those features.  [20250820165039977_CeramTec Cert Petition]

CeramTec's fake-hips are pink and the company used that in marketing is Biolox Delta product and has established market distinctiveness in the color itself.  The USPTO initially agreed and registered the color pink for the ceramic bones.

The problem is that the pink color arises from from the addition of chromia to the ceramic compound -- an important aspect of the (now expired) utility patent (US5830816) covering its product.  Although CeramTec admits that its pink product is covered by the patent -- and that the pink is caused by the 0.33 wt% chromia used in their product -- that result is not required by the patent.  In particular, the patent does not claim or even mention the pink color and chromia addition within the claim scope can yield a spectrum of colors in zirconia‑toughened alumina (ZTA_ depending upon the concentration used, including “pink, red, purple, yellow, black, gray [or] white.”  Although CeramTec chose 0.33 wt% chromia for its product, nothing in the patent indicates that concentration is unique or more beneficial than other concentrations within the claim scope.

Hips don't lie?: An additional interesting and potentially important fact. The utility patent provides a number of reasons why chromium is important as an addition to the zirconium dioxide ceramic, it:

  1. strengthens the alumina matrix,
  2. restores hardness lost by adding zirconia, and
  3. improves thermal and wear resistance.

However, as this lawsuit developed, CeramTec's position changed dramatically. In response to CoorsTek's cancellation petition, CeramTec argued to the Board that "although it had once believed that adding chromia provided material benefits to ZTA ceramics, that belief was mistaken and has since been disproven." This reversal was supported by experimental testing conducted by a government-sponsored research agency in related German litigation, which found that adding chromia at various levels (0.0, 0.1, 0.3, and 0.5% by weight) had no effect on hardness or wear resistance.

This alteration in utility means that chromia - although claimed - is not actually functional.  This is highlighted by the CoorsTek competing product which achieves the same ZTA features without chromia.  CoorsTek though wanted to ensure that the ortho purchasers understand its product is effectively the same as CeramTec's and so added pink dye in order to guarantee visual similarity.

In 2014 CoorsTek petitioned to cancel CeramTec’s color registrations as functional. After some delay because of parallel litigation, the TTAB ultimately granted cancellation, and the Federal Circuit affirmed.  The TTAB applied the Morton‑Norwich framework and also credited TrafFix’s “strong evidence” rule.  It concluded that the patent record (and other materials) showed chromia conveyed utilitarian advantages to ZTA and that pink is a “natural byproduct” of the concentration CeramTec chose. On that view, the expired patent became “strong evidence” that the pink trade dress is functional. The Board also found CoorsTek's criticisms of the testing methodology and scope to be persuasive.

On appeal, the Federal Circuit held that TrafFix does not demand that the patent explicitly claim the exact design feature (pink) or that the marked feature be the “central advance” of the patent; it sufficed that “the addition of chromia causes ZTA ceramics to become pink.” The court treated the “central advance” phrasing in TrafFix as illustrative rather than as a threshold requirement.  I summarized the Federal Circuit’s decision when it issued, noting the cautionary lesson for patent prosecutors: statements in a utility patent about functional benefits can later loom large in a trademark functionality fight.

The new petition for writ of cert to the Supreme Court asking:

Question Presented: Whether under this Court’s decision in TrafFix Devices, Inc. v. Marketing Displays, Inc., 532 U.S. 23 (2001), a utility patent that produces a product with a wide array of designs is “strong evidence” that every aspect of every design produced by practicing the patent is functional rather than arbitrary, incidental, or ornamental.


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When ‘Patented’ Becomes False Advertising: Crocs Takes Its Dastar Fight to the Supreme Court

by Dennis Crouch

In July 2025, Crocs asked the Supreme Court to decide a seemingly clean legal question: whether the Lanham Act’s false advertising provision, § 43(a)(1)(B), covers misrepresentations about a product’s intangible attributes, such as its patent status. Two new filings complicate the story somewhat. The Accessories Council, in an amicus brief supporting Crocs, urges the Court to take the case to prevent what it sees as a chilling effect on both patent enforcement and routine commercial speech. Dawgs’ brief in opposition reframes the case entirely, insisting that this dispute is about false claims tied to tangible product attributes—not abstract questions about intangibles at all.

The case stems from a protracted legal battle between Crocs and Double Diamond (maker of "Dawgs" shoes) that began in 2006 with design patent infringement litigation. The current dispute centers on Double Diamond's false advertising counterclaim, alleging that Crocs misled consumers by marketing its "Croslite" foam material as "patented," "proprietary," and "exclusive" when the material was neither patented nor unique. Rather it was essentially the same EVA foam used by many competitors.


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New Clothes for the Doctrine of Foreign Equivalents?

by Dennis Crouch

Earlier in 2025, the Federal Circuit affirmed a TTAB’s refusal to register VETEMENTS (both standard-character and a block-letter stylization) for clothing and online retail store services for clothing.  Pardon my French, but the problem here is that “vêtements” directly translates into "clothing" -- rendering the word generic for goods and at least highly descriptive for clothing related services.  In re Vetements Group AG, 137 F.4th 1317 (Fed. Cir. 2025).  The case falls under the "Doctrine of Foreign Equivalents" (DFE) which the court was careful to characterize as a guideline rather than a firm rule.  Here, the Federal Circuit applied the guideline and concluded that an "appreciable" number of American consumers would likely "stop and translate" the word and recognize it as generic to the goods in question.

Vetements has now filed a petition for certiorari asking the Court to decide, first, whether protectability of a non-English mark should turn on consumer perception of the mark as encountered (without translation) or on its English translation; and second, what the proper test is for genericness or descriptiveness of non-English marks. The petition frames the Federal Circuit’s approach as inconsistent with Menendez v. Holt, 128 U.S. 514 (1888), and the “bedrock” consumer-perception principle reiterated in USPTO v. Booking.com, 591 U.S. 549 (2020). The petition also highlights divergent approaches among the circuits and the TTAB.  Vetements Grp. AG v. Stewart, No. 25-215 (U.S. Aug. 19, 2025) (petition for cert. filed).


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No Fault for USTA: Federal Circuit Protects Non-Party Defenses against Attempted Default Slam

by Dennis Crouch

The Federal Circuit has affirmed a district court's refusal to hold the United States Tennis Association (USTA) in contempt of a temporary restraining order, emphasizing that non-parties retain their right to defend against infringement allegations even when bound by injunctions against defaulting defendants. In Group One Ltd. v. GTE GmbH, 2024-1273 (Fed. Cir. Aug. 21, 2025), the court also reversed the district court's denial of mandatory post-judgment interest while affirming strict limits on damages awards in default judgment cases.

Group One sued German company GTE GmbH and its owner Ralf Weigel for patent infringement of tennis let detection technology covered by U.S. Patent Nos. 10,583,341 and 10,272,307, claim a system for measuring net tension to indicate whether a ball has clipped the net during a serve and allow umpires to control shot clocks. GTE and Weigel defaulted - i.e., did not show up to court - and the district court entered default judgment finding infringement based on defendants' sale of their "Trinity" let detection system for use at the 2019 and 2020 U.S. Open Tennis Championships. The court also issued a temporary restraining order preventing use of infringing Trinity systems during the 2021 U.S. Open. USTA went ahead and used a Trinity system at the 2021 tournament and Group One sought to enforce the TRO against USTA as a non-party acting "in concert" with the defaulting defendants -- particularly seeking a contempt finding.


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Obviousness-Type Double Patenting: Challenging the Allergan First-Issued Safe Harbor

A new en banc petition challenges the Federal Circuit's odd approach to double-patenting and patent term adjustment issues stemming from In re Cellect, 81 F.4th 1216 (Fed. Cir. 2023) and Allergan USA, Inc. v. MSN Laboratories Private Ltd., 111 F.4th 1358 (Fed. Cir. 2024).  As I discuss below, the new case is Acadia Pharmaceuticals Inc. v. Aurobindo Pharma Ltd., No. 2024-1401 (Fed. Cir. 2025) and the patentee is the current winner -- but the patent challenger (MSN) believes that the court's ruling is improper because it insulates a PTA-extended patent from ODP invalidity based upon the Allergan exception - thereby allowing two obvious patents to coexist with different expiration dates, without restrictions on divided ownership, and effectively prolonging exclusivity. [Acadia v. Aurobindo Petition]

Obviousness-type double patenting (ODP) is a judicially-created doctrine with shifting justifications that has evolved over more than 150 years. Originally designed to prevent patent owners from extending exclusivity beyond the term of an original patent by obtaining subsequent patents for obvious variations of the same invention, see Miller v. Eagle Manufacturing Co., 151 U.S. 186 (1894), the doctrine's rationale has morphed significantly over time. Early cases like Odiorne v. Amesbury Nail Factory, 18 F. Cas. 578 (1819), focused on preventing indefinite patent term extension, while later decisions have emphasized theories of public dedication of unclaimed subject matter and prevention of harassment through multiple enforcement actions by different assignees. See In re Hubbell, 709 F.3d 1140 (Fed. Cir. 2013).

The 1995 Uruguay Round Agreements Act (URAA) fundamentally altered patent terms from 17 years from issuance to 20 years from the earliest effective filing date.  This change eliminated the most egregious ODP concerns since patents with common priority dates would typically expire simultaneously. Gilead Sciences, Inc. v. Natco Pharma Ltd., 753 F.3d 1208 (Fed. Cir. 2014).  But, Congress's introduction of patent term adjustment (PTA) in 1999, codified at 35 U.S.C. § 154(b), to compensate patentees for USPTO examination delays reintroduced variability in expiration dates among family members sharing priority dates. Most patents are part of a family, and it is common for one or more to have received an ODP rejection - overcome with a terminal disclaimer.  Notably, the PTA statute contains a provision (§ 154(b)(2)(B)) that terminal disclaimers filed to overcome ODP forfeit any PTA beyond the disclaimed expiration date.

The setup in the bulk of these cases reflects a structural quirk of patent prosecution. In a family where two patents/applications claim obvious variations of the same invention, the USPTO only polices double patenting a situation where one patent has already issued and an application is still pending claiming an obvious variant.  For the issued patent, its prosecution is closed, and the Office does not ask the owner to go back and file a terminal disclaimer to synchronize its term with issued family members.  This practice made sense when term was calculated from issuance date - the later issued would normally always expire later.  But today it is actually more common for earlier issued patents to expire later -- that is because prosecution is often longer in the first application than in continuations.  As a result, the disclaimer requirement falls only on the follow-on application, while the first-issued patent retains whatever PTA the statute provides. This asymmetry is at the heart of the current controversy: whether the judiciary should treat those earlier patents as vulnerable to ODP challenges?

The chart above shows this setup for Acadia. The ’740 patent was filed first (1/15/2004), issued first (10/13/2009), and—absent any adjustment—would have expired on 1/15/2024, but it received 980 days of PTA that pushed its term to 9/21/2026 (the subsequent PTE to 4/29/2030 is not at issue here). The later‑filed family member, the ’271 patent, issued on 2/14/2017 with no PTA and therefore expired on the ordinary 20‑year date, 1/15/2024. The ODP question is whether that later‑filed, later‑issued, earlier‑expiring ’271 patent can be used invalidate the '740 patent since no terminal disclaimer was filed in the parent.


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Guest Post: Quintara Clarifies — and Complicates — Trade Secret Identification Under the DTSA

Guest Post by Matthew D’Amore, Professor of the Practice, Cornell Tech and Cornell Law School.

Should a plaintiff in a trade secret case under the DTSA be required to detail its alleged trade secrets before discovery? Can a district court give the question of trade secret particularity to the jury? The Ninth Circuit’s recent decision in Quintara Biosciences v. Ruifeng Biztech rejects importing California’s pre-discovery “reasonable particularity” rule into the Defend Trade Secrets Act, reaffirming that federal law imposes no such up-front requirement. But while Quintara endorses an iterative identification process, it also embraces a problematic notion — that “reasonable particularity” is a fact question for the jury — creating new uncertainty for courts and litigants managing DTSA cases. (more…)

Wilco v. Weeks Marine: When Expert Disagreements Don’t Create Genuine Disputes of Material Fact

by Dennis Crouch

The Federal Circuit's recent decision in Wilco Marsh Buggies and Draglines, Inc. v. Weeks Marine, Inc., 23-2320 (Fed. Cir. Aug. 19, 2025) (nonprecedential), illustrates how the Federal Circuit appears to be increasingly disregarding the jury's role in fact finding -- in this case disputes about whether a competitor's prior sales were anticipating based upon the on sale bar. Looking at it from an alternative perspective, the decision demonstrates how the Federal Circuit's regular disregard of conclusory expert testimony can vaporize what appear to be genuine factual disputes.

The case involved U.S. Patent No. 6,918,801, directed to an amphibious vehicle with tracked pontoons and retractable spuds for stabilization during excavation operations. Weeks Marine successfully argued that a 1993 sale of the MudMaster amphibious dredge anticipated the asserted claims under the on-sale bar of 35 U.S.C. § 102(b). The Federal Circuit affirmed summary judgment of invalidity, finding that no reasonable jury could conclude the 1993 MudMaster lacked a "chassis" as required by the claims, despite what appeared to be competing expert testimony on this critical element.


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Federal Circuit Reverses Another Jury Verdict Favoring Patent Holder in LabCorp v. Qiagen

by Dennis Crouch

Laboratory Corp. of Am. Holdings v. Qiagen Scis., LLC, 23-2350, 2025 WL 2327197 (Fed. Cir. Aug. 13, 2025)

In a significant post-trial reversal, the Federal Circuit set aside a Delaware jury’s willful-infringement verdict and directed entry of JMOL of non‑infringement on two Mass General patents now owned by LabCorp. The panel (Judge Lourie, joined by Judges Dyk and Cunningham) held that the district court improperly let the jury decide a disputed claim construction (O2 Micro error) and that the patentee’s doctrine‑of‑equivalents showing failed the function-way-result test under Warner‑Jenkinson and VLSI.

The case centered on U.S. Patents 10,017,810 and 10,450,597, both directed to methods for preparing DNA samples for sequencing through "enrichment" techniques. Rather than sequencing entire genomes, these patents describe methods for producing copies of specific regions of interest - such as sections suspected of containing disease-causing mutations - to make sequencing more efficient and cost-effective. The technology relies on polymerase chain reaction (PCR) to amplify target areas using various types of primers, including "target-specific primers" that anneal to sequences of interest, "adaptor primers" that work with artificial sequences attached to the native DNA fragments, and "sequencing primers" that enable the enriched fragments to be read by sequencing instruments.

After a five-day jury trial, the jury found that Qiagen's accused products willfully infringed both patents and awarded about $5 million in damages. Delaware Federal Judge Noreika subsequently denied Qiagen's renewed motion for judgment as a matter of law (JMOL) on infringement, invalidity, and damages.  On appeal, the Federal Circuit has now reversed.


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After “Schedule A”: The Cross-Border IP Enforcement Gap

by Dennis Crouch

In a comprehensive 24-page opinion that may reshape intellectual property enforcement against foreign online merchants, Judge Kness of the Northern District of Illinois has systematically dismantled the already weak doctrinal foundations of "Schedule A" litigation in Eicher Motors Limited v. The Partnerships and Unincorporated Associations Identified on Schedule "A", No. 25-cv-02937 (N.D. Ill. Aug. 8, 2025). The decision represents the most thorough judicial examination to date of whether this mass litigation mechanism comports with fundamental principles of civil procedure and due process. [Eicher Motors][Eicher Motors II].

Schedule A cases typically involve brand owners suing dozens or hundreds of foreign defendants for trademark, copyright, or patent infringement, seeking ex parte temporary restraining orders and prejudgment asset freezes against online marketplace accounts. The names of the defendants are not found on the complaint but rather listed in an attachment ("Schedule A") that is filed under seal and without immediately informing the defendants of the lawsuit. Plaintiffs use this secrecy to seek TROs and asset restraints before defendants can move their money or modify their online operations. When defendants finally learn about the litigation, it is typically only after their marketplace accounts have been frozen and funds restricted. The vast majority of defendants subsequently default, with Schedule A cases "almost exclusively get[ting] resolved after the entry of a preliminary injunction, dismissal of some defendants, settlements with others, and a default judgment against the remainder." In this case, motorcycle manufacturer Eicher Motors sued fifty defendants for allegedly selling counterfeit ROYAL ENFIELD products through platforms like Aliexpress and Alipay. After imposing a comprehensive stay on all Schedule A cases, Judge Kness concluded that the mechanism violates multiple procedural requirements and denied plaintiff's motion for emergency relief.

But, as I note below, I see Schedule A cases as representing a symptom of a larger structural problem in intellectual property enforcement against the modern reality of cross-border e-commerce. The surge in Schedule A litigation reflects the absence of practical enforcement mechanisms when rights holders face hundreds of small, foreign marketplace sellers whose individual economic impact cannot justify single-defendant federal litigation or Section 337 proceedings at the International Trade Commission (ITC). In essence, Schedule A has evolved into "337-Lite" - a rapid, low-cost substitute for ITC exclusion orders that targets the same imported articles through marketplace compliance rather than Customs enforcement. While Judge Kness's procedural analysis exposes serious constitutional and rule-based deficiencies in current Schedule A practice, his decision also highlights a potential enforcement gap that may require congressional rather than judicial solutions. The thousands of Schedule A cases filed annually suggest genuine "demand" for middle-tier remedies against fast-moving, offshore infringement that neither individual civil actions nor comprehensive ITC investigations can adequately address.

The fact that it has taken this long to see a strong anti-Schedule-A opinion is also remarkable, given that Schedule A cases have been proliferating for years. Federal litigation is fundamentally designed as an adversarial system with competing parties presenting their best arguments to neutral judges who facilitate resolution through reasoned decision-making. This system works pretty well when both sides actively and proportionately participate, but it systematically breaks down in default scenarios where defendants simply don't show up (or here, where they are never notified).  In those default situations, judges cannot rely on the usual adversarial testing of facts and law, and should instead (IMO) step up as more active gatekeepers to ensure that the unrepresented party is not being unduly duped through procedural manipulation or legal overreach. The Schedule A phenomenon suggests that many N.D. Ill. courts have been too willing to grant extraordinary ex parte relief based on boilerplate allegations, essentially permitting plaintiffs to short-circuit the adversarial process without the heightened scrutiny that such departures from normal procedure should require.


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Fintiv Patent Case Against Apple Ends; Fintiv RICO case Against Apple Begins

by Dennis Crouch

After a second trip to the Federal Circuit and back, Fintiv, Inc. v. Apple Inc. (W.D. Tex. No. 1:21-cv-00896-ADA) has ended with a final judgment for Apple. On August 7, 2025, Judge Alan Albright granted summary judgment of noninfringement on most of the asserted claims of U.S. Patent No. 8,843,125, finding that Fintiv failed to identify any actual “widget” in Apple’s accused mobile wallet products as required by the claims.  Fintiv then voluntarily dismissed the remaining claims - indicating that it will appeal yet again.

Having lost its patent clam, Fintiv has also filed a new corporate theft and racketeering lawsuit against Apple.  This post first looks at the dismissed patent case and then moves over to the RICO claims.


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Upcoming Public Events

I’m looking forward to a few upcoming CLE related events:

Hope to see you there! Dennis

 

Patent Damage Arguments Move to the Supreme Court: Built-In-Apportionment

by Dennis Crouch

R.J. Reynolds has petitioned the Supreme Court to review a $95 million patent damages award that relied on the Federal Circuit's "built-in apportionment" doctrine, setting up a potential Supreme Court showdown. In R.J. Reynolds Vapor Company v. Altria Client Services LLC, Reynolds argues that the Federal Circuit effectively nullified the Supreme Court's 140-year-old mandate in Garretson v. Clark, 111 U.S. 120 (1884), that patent damages "must in every case" be apportioned between patented and unpatented features. [RJR v Altria Petition][RJR v. Altria - Appendix]

The RJR opinion released prior to the Federal Circuit's recent en banc decision in EcoFactor, Inc. v. Google LLC, 137 F.4th 1333 (Fed. Cir. 2025), and that case may be enough to warrant a new outcome (although note that EcoFactor does not mention RJR).  And, the petition for certiorari asks the Supreme Court to "grant, vacate, and remand in light of the Federal Circuit's recent en banc decision in EcoFactor."

The petition also asks a more fundamental question focusing Supreme Court precedent: "whether the Federal Circuit's "built-in apportionment" exception violates Garretson's apportionment requirement."

Meanwhile, EcoFactor has filed for an extension application so that its own petition for certiorari will be due mid-September 2025, with a likely parallel focus on the Federal Circuit's approach to patent damages expert testimony under Federal Rule of Evidence 702 and Daubert v. Merrell Dow Pharmaceuticals, Inc., 509 U.S. 579 (1993).  A third case focusing on apportionment, Jiaxing Super Lighting Electric Appliance Co. v. CH Lighting Technology Co. (Fed. Cir. July 28, 2025), would make an interesting trio for the Supreme Court to consider.

Famed Patent Litigator Bill Lee and Stanford professor Mark Lemley recently published an influential article that provides grounding for RJR's petition. William F. Lee & Mark A. Lemley, The Broken Balance: How “Built-In Apportionment” and the Failure to Apply Daubert Have Distorted Patent Infringement Damages, 37 Harv. J.L. & Tech. 256 (2024). The article extends prior work by both, including Lee's 2016 article with Prof. Melamed. Douglas A. Melamed and William F. Lee, Breaking the Vicious Cycle of Patent Damages, 101 Cornell L. Rev. 385 (2016).


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The Federal Circuit’s Heavy Lifting on Automation Patents

by Dennis Crouch

In a decision that should provide welcome clarity for mechanical device patents, the Federal Circuit reversed a district court's dismissal of patent infringement claims involving automated exercise equipment, holding that claims incorporating an electric motor to automate previously manual dumbbell weight selection are not directed to abstract ideas under Alice step one. PowerBlock Holdings, Inc. v. iFit, Inc., No. 24-1177 (Fed. Cir. Aug. 11, 2025).  While the decision provides a victory for mechanical automation patents, the court's reasoning appears to turn primarily on the physical nature of the claimed system - using an electric motor to move mechanical components.

A few issues buried inside:

  • Mechanical vs. software distinction - Court emphasized the physical nature of the invention (electric motor moving mechanical components) as distinguishing it from purely software-based automation patents. In other words physical automation is much more likely eligible.
  • CAFC Erred in decided on narrow claim - Court focused analysis on detailed claim 1 then summarily declared broader claim 20 also eligible, despite parties arguing the claims separately and meaningful distinctions between them.  I see this as an error that should get a rehearing.
  • Section 101 boundary warning against ignoring old elements - The decision included an explicit caution to "parties and courts" against conflating patent eligibility with novelty/obviousness inquiries by ignoring conventional elements in the eligibility analysis.  The interesting bit is that the court inverted quotes from Mayo and Flook to justify its statements.

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Rapunzel, Rapunzel, Let Down Your Generic Hair (and Let the Supreme Court In)!

by Dennis Crouch

Rebecca Curtin, an IP-focused Suffolk law professor and a parent who purchases princess dolls, is setting up to file her petition for writ of certiorari to the Supreme Court on her pending trademark case.  In Curtin v. United Trademark Holdings, Inc., No. 23-2140 (Fed. Cir. May 22, 2025), the Federal Circuit affirmed the TTAB dismissal of Curtin’s opposition to United Trademark Holdings’ application to register “RAPUNZEL” for dolls and toy figures under International Class 28. Curtin had challenged the mark as generic, merely descriptive, and failing to function as a trademark – arguing that registration refusal is necessary to protect the public’s right to use common language to describe categories of goods. The Federal Circuit’s ruling, however, concluded that consumers like Curtin lack statutory standing to bring such challenges under 15 U.S.C. § 1063, effectively limiting opposition proceedings to commercial actors with competitive interests in the marketplace.

Any person who believes that he would be damaged by the registration of a mark upon the principal register . . . may, upon payment of the prescribed fee, file an opposition . . .

The statute – quoted above – appears quite broad, but the Federal Circuit has tightly limited its application.  Curtain’s brief is now due October 3, 2025.

The case represents a significant departure from earlier Federal Circuit precedent and raises fundamental questions about the scope of public participation in the trademark registration process. (more…)