Rethinking Obviousness

Chicago Kent Professor, and former Fed. Cir. clerk, Tim Holbrook has published a very interesting article at the Washington University Law Review's Slip Opinions blog.  In the article, Holbrook attempts to sort out obviousness and poses a new obviousness standard which he argues takes the best of the current Federal Circuit approach and the Graham v. John Deere standard created in the 1960s.  Holbrook's article is especially relevant as we await the Superme Court's KSR v. Teleflex opinion.  Here is an excerpt from the article:

Unfortunately, the debate and briefing at the Supreme Court have resulted primarily in a bifurcated world – those who agree with the Federal Circuit’s approach versus those who think we should return the state of the law to 1966, the year that the Supreme Court decided its seminal case Graham v. John Deere. The law of obviousness is not limited to this dichotomous world, however. This Essay posits a methodology that best balances the Federal Circuit’s concerns with certainty in the law with the concern of its critics that the obvious standard has been set too low. I propose a rebuttable presumption approach to obviousness, which best balances these concerns and is consistent with the Supreme Court’s approach in previous intellectual property cases.

Failure to Object at a Deposition Waives Privilege

Rowe Int'l. Corp. v. Ecast, Inc., __ F. Supp.2d __, 2007 WL 831772 (N.D. Ill. Mar. 19, 2007) (Kennelly, J.).

Judge Kennelly held that plaintiff Arachnid waived its privilege as to a limited scope of information and held that Arachnid's related uses of the information did not rise to the level of the crime-fraud exception, even if they may have been inequitable conduct.  Arachnid filed a motion seeking the return of three inadvertently produced, privileged "patent reports."  Defendants filed a cross-motion to compel production of privileged materials arguing that Arachnid waived the privilege as to the three documents and that the crime-fraud exception destroyed the privilege to the extent it was not waived.  The Court agreed that the patent reports were inadvertently produced, but still held the privilege was waived on a limited scope of information.  In 1999, a former Arachnid employee testified that he learned from Arachnid's attorneys that "the only way we would receive [one of] the patent[s-in-suit] was if we included that information."  While a former employee cannot waive the privilege, Arachnid's attorneys attended the deposition in question and failed to object to the question or the answer.  Additionally, Arachnid later turned the transcript over to the PTO during prosecution of a subsequent application and to defendants during production in the instant case.  These actions combined to waive the privilege as to the specific information discussed by the ex-employee, the inclusion of figure 2 in the patent.

Continue Reading...

Book Review: "Patents for Business"

Patents for Business: The Manager's Guide to Scope, Strategy, and Due Diligence, M. Henry Heines (Praeger Publishers, 2007) (195 pp.)

Heines has written a very useful book for introducing your client's business people and engineers to the patent world.  The book is written for anyone who needs an introduction to patents and discusses all aspects of patenting from strategies for claiming through patent infringement.  It also explains bedrock concepts like invalidity, prior art and obviousness.  Additionally, there are sections on handling IP due diligence and theories for setting up a patenting operation within a company, which could be useful both for the new company patenting for the first time and established companies as a check on how their patenting operation is running.  Finally, there is a well thought out glossary of terms, which could be a useful glossary of terms for business people to refer to when they need an IP refresher.

Case Transferred to D. Minn. Because All Relevant Information and 24 of 25 Potential Witnesses Were Within D. Minn.'s Reach

Timebase Pty Ltd. v. Thomson Corp., No. 07 C 460, 2007 WL 772946 (N.D. Ill. Mar. 9, 2007) (Lindberg, Sen. J.).

Judge Lindberg transferred this patent case to the District of Minnesota because all of the relevant documents and witnesses reside within that district or its subpoena power, while the dispute has no apparent unique connection to Illinois.  The software at issue, Westlaw's PastStat Locator, was researched, designed and developed in Minnesota and the related documents were still there.  Additionally, although the PastStat Locator can be accessed in any state, including Illinois, the hardware and software necessary to operate it are located in Minnesota.  Finally, 24 of the 25 witnesses identified as related to defendant are within the D. Minn. or its subpoena power.  And plaintiff's witnesses are in Australia, so whether they flew to Illinois or Minnesota was a minor difference to them at most.

"Beef Stick" and "Turkey Stick" Are Generic Marks

Hickory Farms, Inc. v. Snackmasters, Inc., No. 05 C 4541, 2007 WL 772919 (N.D. Ill. Mar. 8, 2007) (Kennelly, J.).

Judge Kennelly held that plaintiff's "Beef Stick" and "Turkey Stick" marks were generic and canceled the Beef Stick mark, plaintiff had already let its "Turkey Stick" registration lapse.  Plaintiff alleged that defendant infringed its marks by marketing defendant's beef and turkey snacks in stick forms and labeling them "Beef Sticks" and "Turkey Sticks," respectively.  But defendant countered with evidence that numerous companies use the terms to refer to meat products sold sell in stick form.  For example, Trader Joe's, Flat Iron, Jimmy Dean, Slim Jim and Tombstone all sell meat stick products using the marks.  The Court held that the terms were generic because they name a class of goods -- meat packaged in a stick form.  The Court also noted that "it [was] difficult to imagine what else a seller would call a beef or turkey product packaged in stick form."

Lanham Act Case Made Exceptional

Ty, Inc v. Softbelly's, Inc., No. 00 C 5230, 2007 WL 734394 (N.D. Ill. Mar. 6, 2007) (Lefkow, J.).

Judge Lefkow granted plaintiff's, Ty, motion to make the case exception and grant it attorneys' fees and expenses.  A jury previously returned a verdict against defendant, Softbelly's, for violations of the Lanham Act and common law unfair competition.  The Court held that the case was exceptional because "Softbelly's made an aggressive, uncounseled, and persistent endeavor to trade on the success and reputation of Ty's marks."

Non-Exclusive Sublicensee Plaintiff is Dismissed and the Case is Transferred

Adventus Ams. Inc. v. Innovative Envtl. Techs., Inc., No. 06 CV 3267, 2007 WL 704938 (N.D. Ill. Mar. 5, 2007) (Manning).

Judge Manning dismissed one plaintiff for lack of standing and transferred the case to the Eastern District of Pennsylvania.  Plaintiff EnviroMetal Technologies ("EnviroMetal") had an exclusive license to the patent-in-suit from the University of Waterloo in Canada.  The Court held that EnviroMetal's license was sufficiently exclusive to create standing because, among other things, it expressly gave the right to make use or sell and EnviroMetal had exclusive sublicensing rights.  Plaintiff Adventus Americas ("Adventus"), however, was a non-exclusive sublicensee of EnviroMetal and the Court held it had no standing.  Defendant also argued that the Court lacked personal jurisdiction, but the Court held that defendant's sales contacts with Illinois were sufficient to create personal jurisdiction.

Continue Reading...

Court Will Not Enter a Rule 54(b) Final Judgment Because of Delay and Overlap of Factual Basis For Remaining Claims

AutoZone, Inc. v. Strick, No. 03 C 8152, 2007 WL 683992 (N.D. Ill.  March 1, 2007) (Hart, J.).

Judge Hart denied plaintiffs' motion for a Fed. R. Civ. P. 54(b) entry of final judgment on plaintiffs' Lanham Act and related state law trademark infringement and dilution claims, which the Court dismissed in this opinion.  The Court denied the motion on two grounds.  First, plaintiffs notified the Court of their intent to file the motion 30 days after the Court's order dismissing the claims, but only entered it 37 days later.  The Court noted the Seventh Circuit standard is that a district court generally abuses its discretion by entering a Rule 54(b) judgment when the motion was filed more than 30 days after the underlying order was issued.*  Second, the Court denied the motion on substantive grounds.  Defendants' counterclaims, which were the only claims remaining in suit, involved overlapping factual issues with plaintiffs' dismissed claims.  Defendants sought cancellation of plaintiffs' Zone mark, one of the marks plaintiffs alleged defendants infringed in the dismissed claims.  Additionally, defendants' remaining claims alleged infringement of their Oil Zone mark, a mark that plaintiffs' dismissed claims alleged infringed their AutoZone and Zone marks.

*  The Court also noted that some litigants have argued that the Seventh Circuit standard is no longer good law, but stated that district courts throughout the Seventh Circuit continue to follow it with a string cite.

Work-For-Hire Determination Hinged Upon the Employee-Independent Contractor Distinction

Bucciarelli-Tieger v. Victory Records, Inc., No. 06 C 4258, 2007 WL 684047 (N.D. Ill. Mar. 1, 2007) (Moran, Sen. J.).

Judge Moran held that the parties' contract was not exclusive and, therefore, granted in part and denied in part defendants' Rule 12(c) motion to dismiss.  Plaintiffs are members of an Ohio-based band called Hawthorne Heights (collectively "HH").  HH entered into a contract (the "Agreement") with defendants to produce and promote four albums.  The first album was created and promoted seemingly without incident, but just before release of the second album the relationship soured.  HH sent defendants a letter which purported to terminate the Agreement and listed several ways that defendants had allegedly harmed HH.  This suit arose from that dispute.  Plaintiffs allege breach of contract, as well as copyright and trademark infringement for promotions and sales after the date of HH's letter allegedly terminating the Agreement and related state law claims.  The Court held that the Agreement was not exclusive because it did not contain any exclusivity provisions, which meant that HH was free to record other songs or records with another company during the life of the Agreement.  The Court also held that the only way HH's songs can be considered a work-for-hire owned by defendants is if HH were defendants' employees.  But the Court was unable to decide that issue on the pleadings.  As a result, the Court also could not decide HH's copyright and trademark infringement claims on the pleadings because whether defendants could have infringe requires a determination of whether HH or defendants own the marks.  The opinion also contains a very detailed analysis of Illinois choice of law issues for the related state law claims.

Defendants' Patent Licenses In Different Technology But Same Field Are Discoverable

Trading Techs. Int'l., Inc. v. eSpeed, Inc., No 04 C 5312, 2007 WL 704525 (N.D. Ill. Mar. 1, 2007) (Moran, Sen. J.).

Judge Moran granted plaintiff Trading Technologies' ("TT") motion to compel production of documents and answers to interrogatories regarding defendant eSpeed's patent licenses (more on this case in the Blog's archives).  The Court held that the licenses could be relevant to three of the Georgia Pacific factors:  1) Rates paid by the licensee for patents similar to the patents in suit; 2) customary royalty rates in the industry; and 3) the royalty that would have been agreed upon in an arms length negotiation.  The Court acknowledged that the eSpeed licenses were not for the same technology as the patents in suit, but held that the fact that the patents were all for technology within the futures trading industry was sufficient to make them potentially relevant.  And the Court noted that if the eSpeed patents are ultimately not comparable to the patents in suit, the licenses covering the eSpeed patents will not be given weight in the final determination.

 

Insurer Has Duty to Indemnify Against IP Infringement Even Against Charges of Willfulness

Allied Ins. Co. v. Bach, No. 05 C 5945, 2007 WL 627635 (N.D. Ill. Feb. 27, 2007) (Leinenweber, J.).

Judge Leinenweber granted declaratory judgment defendants/counter-plaintiffs (collectively "defendants") summary judgment DJ plaintiff/counter-defendant's ("plaintiff") duty to defend defendants against Lanham Act and related state law claims.  Defendants were sued by third party Acushnet which accused defendants of willful and intentional violation of Acushnet's marks related to its Titlest Pro VI golf ball based upon defendants' alleged marketing of counterfeit golf balls.  Defendants sought defense and indemnification from plaintiff, their insurer.  Defendants' insurance policy covered, among other things, defendants' infringement of third party marks or copyrights in defendants' advertising so long as the infringement was not done with knowledge or intent of the infringement.  Although the Complaint charges defendants' with willful and intentional violations of the marks, the Lanham Act provides claims without regard to intent.  Because not all of Acushnet's claims require intent, plaintiff has a duty to defend defendants' against the suit.  The Court did note, however, that should Acushnet prove that defendants' acts were willful and intentional, plaintiff would have no duty to indemnify.

Court Clarifies That "Static" Elements Require Permanent Lack of Movement

Trading Techs. Int'l., Inc. v. eSpeed, Inc., No 04 C 5312, 2007 WL 611258 (N.D. Ill. Feb. 21, 2007) (Moran, Sen. J.).

Judge Moran denied plaintiff Trading Technologies ("TT") motion for clarification of the Court's claim construction or in the alternative for reconsideration (more on the claim construction and the case generally here).  TT sought clarification of the Court's construction of "static" and a correction to the Court's construction of "plurality."  The Court defined "static" relative to a "price axis" as a line that does not change position unless it is manually re-centered.  TT sought clarification as to whether a product that had a "static" "price axis" for periods of time in between automatic re-centering would fall within the definition of "static" at least for part-time infringement.  The Court denied to clarify the construction as TT requested and held that for something to be "static" it must have "a permanent lack of movement."

 

Continue Reading...

DLA Piper Joins the Short List of AmLaw 200 Firms with Blogs

Ron Friedmann, of Prism Legal Consulting has created a list of "firm-branded blogs" -- he does not count AmLaw 200 attorneys that blog without displaying their firm affiliation -- in which he identifies nine AmLaw 200 firms that have a collective 30 blogs.  LexBlog's Kevin O'Keefe adds four more to Friedmann's list to reach 13 AmLaw 200 firms with 34 blogs:

Kevin's post also alludes to another blog from one of the AmLaw 50 that LexBlog will be going live with this week.  And as you can see from the addition of the DLA Piper logo to the Blog, this is it. 

Many friends and colleagues already know that I left my in-house position with Delphi's Technology Licensing & Litigation group in November and reentered private practice as Special Counsel to DLA Piper.  It has taken a little bit of time to get everything ready to go, but DLA has embraced the Blog and is very excited about being affiliated with it.  The Blog remains mine and that you will continue to get the same quality content.  The only differences are that I am back in Chicago and that I am now actively litigating IP matters in the Northern District of Illinois again.  It is great to be back in town and, as always, I welcome your comments.  And now that I am no longer inhouse, in addition to my thoughts (which remain solely mine and not necessarily those of DLA Piper or any of our clients) I can offer you my litigation services should you ever need them.

Joel Daly Named Northern District Court Information Officer

Chief Judge Holderman announced this week that Joel Daly has been appointed the Northern District's Court Information Officer.  Daly is a "living legend" in the Chicago news world.  You can learn more about him from his ABC 7 biography.  In his role as Information Officer, Daly will assist journalists covering the Court and field inquiries about the Court's docket, ongoing cases and the judges.  Welcome to the Northern District Joel.

Allegations of Fraud on the Patent Office Meet the Walker Process Fraud Requirements Allowing an Antitrust Counterclaim

Abbott Labs. v. Mylan Pharms., Inc., No. 05 C 6561, 2007 WL 625496 (N.D. Ill. Feb. 23, 2007) (Kendall, J.).

Judge Kendall denied plaintiff's, Abbott, Fed. R. Civ. P. 12(b)(6) motion to dismiss defendant's, Mylan, antitrust counterclaims.  Mylan alleged that two Abbott employees submitted declarations and/or testimony stating the weight and structure of certain oligomers related to the patented invention, despite their knowledge that the tests they relied upon were known to be incapable of measuring the oligomers at issue.  Mylan further alleged that based upon these fraudulent statements, the USPTO issued certain of the patents-in-suit which then prevented Mylan from entering the market with a generic version of Abbott's pharmaceutical Depakote.  Abbott relied upon a prior Northern District ruling against third party Torpharm which held that Abbott's conduct before the USPTO was not inequitable.  But the Court held that while that ruling prevented a sham litigation claim, it did not estop Mylan's inequitable conduct allegations because Mylan was not a party to the prior case and, therefore, had no opportunity to present its evidence and argument.  Additionally, the Court held that Mylan adequately alleged antitrust injury by stating that it prepared to enter the market with generic Depakote, but was prevented from doing so by Abbott's alleged inequitable conduct.

A New Regional IP Blog for the N.D. Cal.

Since my last post listing the Blog's "cousin" blogs -- regional IP blogs -- another has joined the family.  The Tech Law Forum Blog has switched its format to focus on N.D. California IP cases.  Welcome to the family.  Here is the revised list:

 
 
 
Illinois Trial Pratice Weblog (okay, it is not IP specific, but it is regional and provides excellent content)
IP Dragon (China)
 
 
Patent Trademark Blog (some Orange County focus)

Tech Law Forum Blog (N.D. Cal.)

If you know of other regional IP blogs, post a comment or send me an email (david.donoghue@dlapiper.com) and I will add them to the list.

*The Florida IP Blog is another blog developed and hosted by LexBlog just like this Blog and, as usual, it is a great looking site with easy navigation.

Seller is Liable for Contributory Infringement Becase Seller Knew Buyer Intended to Use the Property in an Infringing Manner

Days Inns Worldwide, Inc. v. Lincoln Park Hotels, Inc., No. 06 C 2960, 2007 WL 551570 (N.D. Ill. Feb. 22, 2007) (Der-Yeghiayan, J.)

Judge Der-Yeghiayan granted plaintiff summary judgment on its trademark infringement and Illinois Deceptive Trade Practices Act ("IDTPA") claims, among others.  Plaintiff owns various marks relating to its Days Inn chain (the "Days Inn Marks").  Plaintiff licensed defendants Lincoln Park Hotels, Inc. and Richard Erlich (collectively "LPH") to use the Days Inn Marks in connection with the operation of a hotel in Chicago's Lincoln Park neighborhood.  In 2005, LPH sold the hotel to defendant Gold Coast Investors ("GCI") without informing plaintiff, in violation of the parties' license agreement.  GCI continued operating the hotel using the Days Inn Marks without licensing the rights to the marks from plaintiff.  As a result, plaintiff brought the instant action against defendants alleging that, among other things, GCI infringed plaintiff's Days Inn Marks and LPH contributorily infringed plaintiff's Days Inn Marks by selling the hotel to GCI with the knowledge that GCI intended to continue using the Days Inn Marks and without informing plaintiff of the sale or removing the Days Inn Marks from the hotel, as required in the parties' license agreement. 

Continue Reading...

Jury's Anticipation and Obviousness Determinations Are Not Supported By Legally Sufficeint Evidence

Black & Decker Inc. v. Robert Bosch Tool Corp., No. 04 C 7955, 2006 WL 3883286 (N.D. Ill. Dec. 18, 2006) (St. Eve, J.).*

Judge St. Eve granted judgment as a matter of law for plaintiff, holding that the jury's findings of invalidity and obviousness were not supported by legally sufficient evidence.  At trial, defendant introduced an article describing a prior art radio as 102(b) prior art using its expert.  But the expert testified that one of the claim elements was missing.  Defendant argued that pictures of the radio that were not used in the article, showed the device.  But the Court held that defendant could not piece together the article, testimony and pictures to prove that the article disclosed all elements of the claimed invention.  The jury's obviousness finding was not supported by legally sufficient evidence because defendant did not present clear and convincing evidence of a motivation to combine its obviousness prior art references.

* You can find much more on this case in the Blog's archives.

 

Top [11] Copyright Missteps

Sheppard Mullin's Intellectual Property Law Blog (another LexBlog creation) has an excellent post on The Top Ten Ways Copyright Law Can Mess Up Your Transaction.  The post will go a long way towards keeping any company or individual out of the Northern District for copyright infringement issues.  But it does not address one of the biggest copyright dangers -- not addressing the use of potentially copyrighted materials within an organization.  Every modern business relies upon information, often that information is gathered from copyrighted sources, for example the internet, television, books or newsletters and magazines.  It is important to educate your employees to respect the copyrights covering their information sources and to set up corporate policies to make it clear that the company respects copyrights.  The fix for this problem is inexpensive and quick, but it can head off very expensive mistakes -- statutory damages for copyright infringement can be astronomical.

Crime-Fraud Exception Not Met For Lack of Independent Evidence of Intent

Abbott Labs. v. Andrx Pharms., Inc., No. 05 C 1490, 2007 WL 551551 (N.D. Ill. Feb. 20, 2007) (Brown, Mag. J.).*

The Court denied defendant's motion to compel production of attorney-client privileged documents pursuant to the crime-fraud exception.  Defendant argued that plaintiff's failure to disclose full results from two studies with conflicting results (for and against the applications' claims) to the USPTO, both of which were material to the claims, was both inequitable conduct and fraud.  The studies were conducted during the pendency of one application and prior to two others.  Additionally, three of the named inventors co-authored a journal article detailing the results.  And during her deposition, prosecution counsel admitted being aware of the studies during prosecution of the applications.  The Court held that the evidence warranted in camera review of selected documents from plaintiff's privilege log to determine whether there was evidence of intent.  But after its review, the Court found no direct evidence of intent to defraud the USPTO.  The Court noted that "[n]one of the documents . . . contained a 'smoking gun' or anything close to it."  Furthermore, while intent can be inferred based upon circumstantial evidence, there most be more evidence than failure to disclose to support the inference. 

* You can see more on this case, in particular, various preliminary injunction opinions here and here.

Cisco's GC Speech is Heard Around the Country

In January, Cisco's General Counsel Mark Chandler gave a speech at Northwestern's Securities Regulation Institute that made major headlines.  Because several in-house friends and colleagues have mentioned it to me recently, I thought it was worth a post.  Anyone involved in the private practice of law should take the time to read it.  It highlights an issue that is critical to achieving a client's desired results and to developing a strong relationship between a client and its outside counsel -- aligning the interests of the counsel to those of the client.  Chandler's speech resonates with me because when I was in-house, I struggled to align my outside counsel's interests with those of my company.  It seems that it should be an easy task, but many outside counsel do not get it. 

Continue Reading...

Northwestern Hits a Triple With The Supremes

According to this Chicago Tribune article, 'Struck By Lightning' 3 Times Over, three recent Northwestern grads Andrianna Kastanek (2005), Jessica Phillips (2006) and Katherine Shaw (2006) are headed to the Supreme Court next term.  The three will clerk for Kennedy, Alito and Stevens, respectively.  Congratulations to each and to Northwestern.  The school on the Lake will a U. of Chicago size presence on the Court next term.

Upon Reconsideration Court Clarifies That Binary Code Cannot Be Trinary Code

Chamberlain Group, Inc. v. Lear Corp., No. 05 C 3449, 2007 WL 551579 (N.D. Ill. Feb. 20, 2007) (Moran, J.).

Judge Moran granted in part defendant's motion for reconsideration regarding the Court's construction of "binary code."  In its prior claim construction opinion -- discussed here -- the Court defined "binary code" and "trinary code generator," among other terms.  In its discussion of its "binary code" construction, the Court explained that the claims do not limit binary code to a binary number and, therefore, the term encompasses "other numerical and character languages, including trinary code."  Defendant argued that binary code could not be defined as trinary code and that, therefore, the Court should modify its construction to make clear that trinary code cannot be part of binary code.  The Court agreed with defendant that binary code cannot encompass trinary code and, therefore, clarified its explanatory sentence.  The Court explained that binary code could not include trinary code, but that it could include trinary numbers.  But because the Court's actual construction did not mention trinary code, it declined to revise the construction.

Art Imitates Life: Animated Series Does Not Infringe Copyright on Documentary Film

Murphy v. Murphy, No. 04 C 3496, 2007 WL 551576 (N.D. Ill. Feb. 15, 2007) (Darrah, J.).

Judge Darrah granted defendants summary judgment of noninfringement of plaintiff’s copyright. Plaintiff, a documentary filmmaker, filmed several residents of Chicago Housing Authority Projects. Plaintiff copyrighted his documentary film and, in early 1998, sent it to Oprah Winfrey at Harpo Productions. He requested that Winfrey and Harpo air his documentary on the Oprah Winfrey Show and that they forward it to a list of people in the film industry, several of whom are named defendants. Winfrey never responded to plaintiff and his documentary was never aired on her show. Shortly thereafter, defendants’ animated program, “The PJs” – telling the story of several fictional characters living in an urban housing project – aired on the Fox network. Plaintiff alleged that the defendants collectively infringed his copyrighted documentary by using scenes from it, as well as unique features of several of plaintiff’s subjects to make their characters.

Continue Reading...

Conflicting Testimony Creates Questions of Fact in Trade Secrets Case

RRK Holding Co. v. Sears, Roebuck & Co., No. 04 C 3944, 2007 WL 495254 (N.D. Ill. Feb. 14, 2007) (Coar, J.).

Judge Coar denied defendant summary judgment on plaintiff’s trade secret and breach of contract (nondisclosure agreement) claims. The Court also granted defendant summary judgment on plaintiff’s unjust enrichment claim holding that because it was based upon the trade secret misappropriation allegations it was preempted by the Illinois Trade Secret Act (“ITSA”). Plaintiff alleged that, pursuant to a nondisclosure agreement, it disclosed to defendant its plans for its “combination tool” which consisted of a rotary saw, also called a spiral saw, which could be converted into a plunge router. But after negotiations broke down over price, defendant allegedly disclosed the idea to its Canadian subsidiary, which then allegedly disclosed the idea to another party, Choon Nang Electrical Appliance Manufacturing Ltd. (“Choon Nang”), that obtained a British design patent on the combination tool and produced it for defendant. 

Continue Reading...

Section 102(b) -- Public v. Experimental Use

Cummins-Allison Corp. v. Glory Ltd., No. 02 C 7008, 2007 WL 487564 (N.D. Ill. Feb. 12, 2007) (Kendall, J.).

Judge Kendall denied summary judgment of invalidity for defendant in this patent dispute (you can find the Court's prior claim construction ruling here).  Defendant argued that plaintiff's public use of money-counting machines embodying the patented inventions in banks more than one year before filing of the patent application invalidated the patents pursuant to 35 U.S.C. Section 102(b).  Defendant relied upon the testimony of several bank employees that the machines were beta-tested by banks in locations that bank patrons could see without signing any confidentiality agreements.  But plaintiff put forth evidence that defendant had taken steps to keep the use confidential and that, even if the use was public, it was only an experimental use which does not create a Section 102(b) bar.  Based on the conflicting evidence, the Court held that there were questions of material fact as to the patents' validity and, therefore, denied summary judgment.

Reading the Tea Leaves: Microsft v. AT&T Oral Arguments

The big news in patent law this week is the Supreme Court oral argument in Microsoft v. AT&T.  Microsoft exports software from the United States to various countries.  The software code alone cannot infringe AT&T's patents until it is combined with the hardware, which only occurs after the software has left the United States.  So, exporting the software is not an act of infringement.  The issue, therefore, is whether, pursuant to 35 U.S.C. Section 271(f), exporting the software constitutes:

suppl[y] . . . from the United States . . . [of] all or 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,” as well as the “suppl[y] . . . from the United States [of] any component of a patented invention that is especially made or especially adapted for use in the invention.

For more on the issues, you can find the briefs at Patently-O

The case has received substantial media attention both because it was granted cert and because the case could have effects far beyond the international exportation of software.  The oral arguments were interesting (transcript here) and both the main stream media and blogs are frantically reading the tea leaves.

 

 

Continue Reading...

Court Denies Summary Judgment Because A Jury Could Go Either Way on the Issue of Copying

Bryant v. Gordon, No. 05 C 3066, 2007 WL 461326 (N.D. Ill. Feb. 8, 2007) (Kennelly, J).

Judge Kennelly granted summary judgment for defendants, Gordon and Mach 1 LLC ("Mach 1"), on plaintiff's, Bryant, claims of copyright infringement based upon copyrighted goods Mach 1 purchased free of encumbrances in a bankruptcy auction.  Because Bryant had notice that copies of posters including his copyrighted photograph of U.S. Army snipers in Ghillie suits (the "Bryant photo") would be sold at the auction and he did not object, he had no claim of infringement for those copies.  The Court denied summary judgment for both Bryant and defendants on their cross-motions for summary judgment regarding infringement of a picture taken by defendant, Urtis, (the "Urtis photo") which allegedly copied the Bryant photo.  The Court held that the Bryant photo was copyrightable based upon Bryant's choice of composition, lighting, camera angle and other factors, but denied summary judgment as to whether the Urtis photo copied the Bryant photo.  The Court noted that both photos were "taken from the same angle, perspective, and with the same scene and terrain."  There were differences between the photos, but the Court could not say as a matter of law that the differences would be sufficiently obvious to an ordinary person.  The Court, therefore, held that a reasonable jury could find that the Urtis photo copied the Bryant photo or that it did not and denied summary judgment.

Italian Contract Dispute Does Not Remove Court's Jurisdiction Over the Related Trademark Infringement Suit

Gabbanelli Accordions & Imports, L.L.C. v. Italo-Am. Accordion Manufacturing Co., No. 02 C 4048, 2007 WL 465423 (N.D. Ill. Feb. 6, 2007) (Zagel, J.).

Judge Zagel held that the Court had jurisdiction over plaintiff's trademark infringement action and ordered defendant to respond to plaintiff's summary judgment motion on the merits of the case.  In October 2002, the Court stayed the case pending resolution of contractual disputes related to ownership of the marks at issue in an Italian court.  The Court lifted the stay in May 2005.  Plaintiff distributed defendant's accordions in the United States.  In 1997, Plaintiff registered the mark at issue, which defendant claims to own.  While the contract at issue in the Italian court may play a role in determining ownership of the mark, the Court held that if plaintiff can prove ownership of the mark prior to the Agreement, then the Court can exercise jurisdiction and resolve the trademark infringement dispute.

Tribune on Patents

On the front page of yesterday's Business section, the Tribune ran a story about pharmaceutial companies developing combination drugs - Combo Pills Perk Up Firms' Profits.  The combination pills, for example a pill containing medicine to treat both high cholesterol and high blood pressure, have dual advantages:  1) patients are required to take fewer pills and the fewer the number of pills a person must take, the more likely they are to take all of their pills; and 2) patents are likely available on the combined drugs, extending patent protection.  The Tribune reported that dozens of combination pills are likely being developed, including in areas such as heart disease, asthma and depression.  For example, the article reports that Abbott Labs and AstraZeneca announced plans last year to combine their two popular cholesterol drugs, Tricor and Crestor respectively, into a single pill to lower cardiovascular disease risk (the #1 killer according to the article).

Continue Reading...

Prior Patenting of Functional Trademark Invalidates the Mark

Specialized Seating, Inc. v. Greenwich Indus., L.P., __ F. Supp.2d, 2007 WL 417027 (N.D. Ill. Feb. 2, 2007) (Holderman, C.J.).

Judge Holderman held declaratory judgment defendant's, Greenwich Industries ("Greenwich"), trademark invalid and held that Greenwich committed fraud on the USPTO while prosecuting its trademarks.  Declaratory judgment plaintiff, Specialized Seating ("Specialized"), and Greenwich are competing manufacturers of folding chairs.*  Greenwich has a trademark to a configuration of a folding chair with certain physical characteristics.  Because Greenwich secured patents for most or all of the features identified in its trademark, the Court held that Greenwich's trademark was functional and, therefore, invalid.  In addition to having held patents on the claimed features, Greenwich had also touted the functional benefits of the features in advertising.

Continue Reading...

Weekend of Trademarks in the Tribune

Over the weekend the Tribune ran two articles on trademark suits.  The first on Friday - 'March Madness' Use Approved - reported on a trademark suit in Cook County Circuit Court between Intersport, a Chicago-based sports media company, and the NCAA.  Intersport brought the action for, it appears, declaratory judgment that Intersport's license with the NCAA allowed it to use the NCAA's March Madness mark in connection with college-basketball related programming on wireless devices.  Circuit Judge Palmer held that Intersport could use the mark for distributing content "in any manner, including but not limited to distribution to video-enabled mobile wireless media devices."  The Tribune reports that Cingular Wireless, one of the NCAA's sponsors, offered wireless scores and highlights last year.  Last year, Intersport produced basketball-related wireless content for Sprint, but was barred from using the March Madness mark.  This year, it appears they will be free to use the mark.

Continue Reading...