(Informal 1-2 line summaries, which certainly should not be relied upon for legal or other research purposes)
-
- CAFC precedentially remands for the DCT to consider two trade secrets damages models the DCT dismissed (i.e., unjust enrichment and the jury award based on contract damages). Indeed, "the
plain language of both the DTSA and the MUTSA allow for
unjust enrichment caused by the misappropriation of the
trade secret that is not accounted for when calculating
damages for actual loss" so it's unclear from my superficial reading why the DCT thought it appropriate to set it aside (furthermore, the Michigan code says: "Damages can include both
the actual loss caused by misappropriation and the unjust
enrichment caused by misappropriation that is not taken
into account in computing actual loss.").
"We disagree with the district court’s reading of Sixth
Circuit precedent. Though the Sixth Circuit did uphold
damages awards that were calculated using royalties-based damages models in Vitro Corp. and Mid-Michigan, it
did not preclude the plaintiff from seeking unjust enrichment damages altogether . . . The district court’s preclusion of unjust enrichment
damages impacted Versata’s ability to seek damages
throughout this case, including at trial and during posttrial proceedings. Accordingly, we partially vacate the district court’s JMOL zeroing out the jury’s damages award
and remand for a new trial on damages for trade secret
misappropriation."
CAFC likewise reverses the DCT's finding of lack of evidence for the jury contract damages award:
"We therefore conclude
that the district court erred when it determined that Versata did not present any evidence that would allow the jury
to calculate damages with reasonable certainty. Versata’s
and Ford’s expert testimony, the submission of the MSSA
and the 2011 addendum, and the jury instructions given by
Versata’s counsel during closing arguments all amount to
sufficient evidence that provided the jury with a discernible path to properly calculate damages. Accordingly, we reverse the district court’s reduction of breach of contract
damages and reinstate the jury award of $82,260,000 to
Versata."
Finally, CAFC affirms the denial of JMOL ("[W]e conclude that Versata presented sufficient evidence to support its claim for trade secret misappropriation").
-
- A couple rather vanilla obviousness and claim construction opinions today, but this one provides a (very brief, but still helpful) true positive regarding motivation to combine analysis:
"[W]e find no clear error in the district court’s
analysis of the skilled artisan’s motivation to modify the
reduction step of Kondo specifically. As the district court noted, both experts agreed that many of the steps of Kondo
would have been considered for modification, including the
reduction step . . . And
Dr. Dichtel presented significant testimony about why a
skilled artisan would have sought to modify Kondo’s reduction step, including cost savings, improvement of the reaction’s safety profile, post-processing simplification, and
knowledge that the hydrogenating agent was already being
used in molar excess . . .
This evidence, tethered to the chemical realities of the reaction, is a far cry from the conclusory expert testimony our
case law rejects . . . We therefore decline to find clear error in the district court’s choice to credit
this testimony."
So, some things to look for when constructing your own non-conclusory argument.
-
- In another patent standing case, this one precedential, CAFC reverses and remands finding that "Plaintiff retained an exclusionary right sufficient to
satisfy the “irreducible constitutional minimum of standing.”"
Basically, Plaintiff granted a worldwide, exclusive license to MWV, but with a bunch of conditions and joint enforcement requirements. While those restrictions likely gutted "all substantial rights" to sue under 281, CAFC is here making the point that Article III standing is a distinct inquiry, for which a single exclusionary right suffices.
Why care? Well . . .
"The distinction
. . . matters: constitutional standing “is a jurisdictional requirement” that is “incurable if absent at the initiation of suit,” whereas a statutory standing defect is
“curable by joinder” . . . Accordingly, a plaintiff may have constitutional standing without satisfying the additional statutory requirement of possessing “all substantial rights” . . . In attempting to reconcile our precedents, some district courts
have drawn a bright line between our cases addressing constitutional standing and those addressing statutory standing, concluding that cases addressing one side of that line
have little, if any, relevance to cases on the other side . . . although the two standing inquiries are distinct, the
same facts bearing on whether a patent owner has granted
“all substantial rights” to a licensee to enable the licensee
to have statutory standing may also bear on whether the
owner retained “an exclusionary right” sufficient for constitutional standing."
And so, now focusing on Article III on these facts . . .
"In this case, Plaintiff retains a sublicensing veto that
(while it must be reasonably exercised) prevents Ingevity from granting sublicenses absent Plaintiff’s consent or free
of Plaintiff’s royalty interest . . . That consent right over sublicensing helps preserve Plaintiff’s exclusionary interest because it prevents the licensee from
unilaterally authorizing an accused infringer’s practice of
the patents without Plaintiff’s approval and royalty interests. Moreover, “infringement would amount to an invasion of [Plaintiff’s] legally protected interest” in the patents
because it deprives it of royalties to which it is entitled as
a patent owner . . . Plaintiff’s
right to sue, right to veto sublicenses, and royalty interests
confirm that Plaintiff retains an exclusionary right, establishing that Plaintiff retains a concrete stake in excluding
unauthorized practice of the patents and a mechanism to
enforce that interest . . . On these facts, Plaintiff retained an exclusionary right
sufficient for Article III standing, namely the non-illusory
right to sue that their licensee, Ingevity, could not nullify
through unilateral, royalty-free sublicensing." (emphasis added)
(License drafters take note!).
In any event, reversed and remanded so that the analysis may continue.
-
- This is another application of the recent precedential principle that "when a patent owner retains a right to sue third parties for patent infringement
that is not rendered illusory by the rights granted to a licensee, that patent owner retains an exclusionary right
sufficient for constitutional standing" (though, of course, you're probably still going to need joinder).
-
- In this precedential exceptional / fees opinion, CAFC reverses the 285 award below. Below, defendant objected to the amended complaint, arguing . . .
" . . . that the asserted claims were invalid
under § 101 because they claimed patent-ineligible subject
matter . . . Separately, City National argued
that the claims were invalid under § 103, because they
were “not patentably distinct” from the claims determined
to be unpatentable in the IPR, so were “also obvious . . . in
view of the[ ] same [prior art] references.”"
Following dismissal based in part on those arguments, defendant moved for fees:
"City
National advanced the same principal reasons for both the
§ 285 award and the § 1927 sanction: (a) “a cursory look” at
the asserted claims showed them to be invalid, J.A. 552;
(b) mCom had not adequately pleaded infringement, J.A.
555; (c) “mCom [never] investigate[d] whether a license . . .
would cover the purported infringing activity,” “even after
being put on actual notice” of such a license, J.A. 552, 554;
and (d) mCom had filed many other patent suits without
taking any to trial, implying an improper goal of “quickly
settling . . . for nuisance value."
Here, CAFC first affirms the dismissal ("Because we
have been presented with no challenge at all related to
claims 2, 8, or 14, and no persuasive reason to disturb the invalidation of claim 17, mCom has failed to show error in
the district court’s invalidity ruling."). However, CAFC reverses on the fees:
"[B]ecause in district
court a fact-dependent obviousness challenge faces a
higher burden of persuasion than in an IPR, mCom could
reasonably have believed that an invalidity analysis in district court could not simply take the IPR result for different
claims as a starting point (based on issue preclusion) and
address only patentable distinctness . . . . The district court also observed that mCom had filed
a first complaint that was struck for a nonsubstantive reason (shotgun pleading, i.e., insufficient separation of the
claims of direct and indirect infringement) and a second
complaint that was dismissed . . . But this two-pronged reason
does not go to the relevant question whether the case was
exceptionally substantively weak or unreasonably litigated. The first aspect is purely formal; the second is nothing more than lack of merit, which, as indicated, is not
legally sufficient for § 285 purposes."
Similarly, a license is an affirmative defense, and while the plaintiff must perform a reasonable pre-filing investigation, CAFC doesn't find evidence in the record supporting a finding of unreasonable diligence.
Ergo reversed as to fees and affirmed otherwise.
James Skelley is a solo practitioner based in Mountain View, California since 2015, focusing primarily upon technology transactions and intellectual property procurement. James' practice also serves as an "incubator" for new legal service technologies / methodologies and a "living example" of their application. To this end, James regularly partners with larger law firms and with his clients so as to improve the practice of intellectual property law.
- Utility / Design / PCT Patent Prosecution
- Open Source Diligence
- Technology Transactions (typically as a team)
- Litigation / Inter Partes Review Support (typically as a team)
- James tends NOT to handle low-volume trademark work (though referrals are available)
- USPTO - #59458 - 10/16/2006
- California - #257829 - 12/01/2008
- District Columbia - #1014986 - 08/05/2013
- James is available by email, 8x8 hangout, and in-person meetups in the Valley.
- Email is typically the best way to reach James.
- Machine Learning / Robotics
- Cryptograpy / Cryptocurrency / Smart Contracts
- Medical Device
- Computational Biology (primarily modeling and proteomics)
- Signal Processing (primarily wireless and compression)
- Quantum Physics (primarily semiconductor) / Electromagnetics (antennae, waveguides, etc.)
- Manufacturing / 3D Printing
- James tends NOT to handle pure chemistry applications (though referrals are available), however James HAS handled matters involving computational proteomics, cellular modeling, and diagnostic lab protocols
LawMux Bites are (very) short, one-page summaries of various legal concepts, cases, and technologies. As informal summaries, you certainly shouldn't rely upon them as legal advice / for business use, but they can help orient you if you're new to the subject matter.