949 F.3d 1360
Fed. Cir.2020Background
- Acoustic Technology owns U.S. Patent No. 5,986,574 asserting a "WAN means" claim limitation for transmitting meter data over a wide area network.
- Silver Spring filed two timely IPR petitions challenging the ’574 patent on March 3, 2017; Itron was time-barred from filing IPRs due to an earlier 2010 suit by Acoustic.
- Silver Spring and Itron began merger discussions before the petitions and agreed to merge on Sept. 17, 2017 (nine days after PTAB instituted the IPRs on Sept. 8, 2017); the merger closed Jan. 5, 2018.
- The PTAB issued final written decisions on Aug. 21, 2018, finding the challenged claims unpatentable on obviousness grounds; Acoustic did not raise a §315(b) time‑bar challenge to the Board.
- On appeal Acoustic argued (1) the IPRs were time‑barred under 35 U.S.C. §315(b) because Itron was a real party in interest before and after institution, and (2) the Board mis-construed the "WAN means" structure, warranting reversal of the obviousness findings.
- The Federal Circuit held Acoustic waived both challenges for failing to present them to the Board and affirmed the PTAB’s final decisions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the IPRs were time‑barred under 35 U.S.C. §315(b) due to Itron's merger-related involvement | Acoustic: Itron was a real‑party‑in‑interest (pre‑ and post‑institution) because of merger negotiations and control after merger; PTAB should be able to reassess §315(b) post‑institution | Itron: Acoustic waived time‑bar by not raising it before the PTAB; post‑institution merger does not render the IPR untimely; PTAB need not reevaluate §315(b) after institution | Waived — Court declined to address merits because Acoustic never raised §315(b) to the Board and appellate review is discretionary on waived issues |
| Whether the Board mis‑construed "WAN means" and erred in obviousness findings | Acoustic: Board defined corresponding structure too broadly ("any device"); should be limited to a "conventional WAN radio" and prior art does not disclose such a structure | Itron: Acoustic changed its construction/argument on appeal (now arguing any conventional WAN radio is missing), so these new arguments were not presented to the Board | Waived — Court refused to consider new claim‑construction/obviousness arguments not raised before the PTAB; affirmed obviousness findings |
Key Cases Cited
- Power Integrations, Inc. v. Semiconductor Components Indus., LLC, 926 F.3d 1306 (Fed. Cir. 2019) (§315(b) requires considering relationships arising after petition filing but before institution)
- PGS Geophysical AS v. Iancu, 891 F.3d 1354 (Fed. Cir. 2018) (agency "jurisdiction" errors can be waived; waiver is applied case‑by‑case)
- In re NuVasive, Inc., 842 F.3d 1376 (Fed. Cir. 2016) (failing to present arguments to the PTAB deprives the court of the Board’s informed judgment)
- In re Watts, 354 F.3d 1362 (Fed. Cir. 2004) (court often declines to consider arguments not raised before the Board)
- Monsanto Tech. LLC v. E.I. DuPont de Nemours & Co., 878 F.3d 1336 (Fed. Cir. 2018) (court retains discretion to apply waiver)
- Applications in Internet Time, LLC v. RPX Corp., 897 F.3d 1336 (Fed. Cir. 2018) (Congress added the real‑party‑in‑interest provision to protect patent owners from related‑party late administrative attacks)
- Freytag v. Comm’r of Internal Revenue, 501 U.S. 868 (1991) (discusses the unfairness of "sandbagging" by withholding jurisdictional objections)
