*1 EQUIPMENT In re CONSTRUCTION
COMPANY.
No. 2010-1507. 90/008,447. No.
Reexamination Appeals, Court
United States Circuit.
Federal Heuser, & E. Schwabe Williamson Peter 8, 2011. Dec. PC, Portland, OR, argued for Wyatt Dec. As Corrected De- With him on the brief was appellant. von Zastrow Newman. Solicitor, Lynch, Associate
Frances M. and Trademark Of- States Patent United Alexandria, VA, fice, argued appel- for Raymond the brief lee. her on With Chen, Solicitor, Gongola, and Janet A. T. Solicitor. Associate NEWMAN, PROST, and Before O’MALLEY, Judges. Circuit filed Opinion the court Circuit Dissenting filed Judge opinion PROST. Judge NEWMAN. Circuit PROST, Judge. Circuit Equipment Company Construction (“CEC”) reexamination pro- from appeals ceedings which the United States (“PTO”) rejected and Trademark Office sought by parte Ex numerous claims CEC. Co., No. (“BPAI (B.P.A.I.2009) Op.”), WL 2807871 (B.P.A.I. denied, 2010 WL reh’g 2010) ”). {“Reh’gDenial Because May agree with the PTO’s conclusion we over the the claims at issue were obvious art, we affirm. I Patent No. is the owner of CEC U.S. (“'564 5,234,564 patent”). The '564 Assembly for Screen is entitled “Mobile Debris,” and is directed Rubble mat- screening plant rocks and vehicle *2 (among things) ter other based size
from, example, or soil dirt at con-
struction site.
'564 to fig.l. appealed Material be sorted is to the Board of Appeals placed hopper in It up Interferences, 30. is carried which generally af- conveyor 26 by transport dropped firmed rejections. the Examiner’s BPAI 90, assembly Op. onto screen which sifts it. sought rehearing, CEC which the Sorted material either descends down Board Reh’g timely denied. Denial. CEC 120, away by conveyors chute or is appealed carried to jurisdic- this court. haveWe 168, 130 or according where tion over the Board’s decisions under 28 sifting process 1295(a)(4)(A). § sorted material left the U.S.C.
main stream.
II
proceedings
began
in Janu-
This court reviews the Board’s fac
ary 2007
request
when
PTO received a
tual findings for substantial evidence and
parte
ex
reexamination of the '564
legal
its
determinations de novo. 5 U.S.C.
patent.1
requestor sought
reexamina-
706(2)(E);
Gartside,
§
In re
203 F.3d
1, 2,
5-8,
claims
alleging
1305, 1316 (Fed.Cir.2000). The determina
unpatentable.
they
Upon
were
finding
tion of
awhat
reference teaches is
one
that the
request raised
substantial new
fact, as is the existence of a reason for a
question of patentability concerning those
person
ordinary
skill
combine refer
claims,
began
the PTO
pro-
reexamination
Dement,
Rapoport
ences.
ceedings.
(Fed.Cir.2001);
see also Gart
CEC made various amendments and
side,
In this judicata case the rules of res preclusion The doctrines of relate to the involved, issue preclusion are re-litigation this reex- of issues that have been actu- requested Powerscreen, amination by ally litigated A party and decided. who the defendant in the prior district court part litigation took the earlier cannot ruling, prior the appellant ordinarily the prejudiced Federal be by subsequently appeal, petitioner Circuit and the being for cer- bound by that decision. See Clem- ents, (“Where tiorari. Powerscreen could not have reliti- 69 F.3d at plaintiffs the gated question any of obviousness in have had a full and fair opportunity to Hotel, court. See City actually San Remo L.P. v. litigate the issue and did in fact S.F., Cnty. it, & 336 n. litigate they ordinarily can not preju- of by L.Ed.2d 315 diced subsequently being held to the (“Under determination.”). judicata, res prior on The interest in fi- case, appealed to Federal Powerscreen in this where highlighted
nality is Circuit, full again briefing validity of upheld previously this court argued that of Powerscreen patent, obviousness. Equipment’s Construction patent are of the '564 invalid majority today claims panel § combinations 103 based several on the same issue. under be invalid holds to pro- to the respect of references. With sued Construc- Powerscreen was When posed combination of Eriksson the de- infringement, Equipment the Royer Trommel '564 with either the challenge pat- to the included a fense art, Equip- prior Trommel Construction of obviousness. validity ground on the ent’s responded ment in the United States The case was tried Oregon. of for the District Court District attempt does show Powerscreen court, cited In Powerscreen merely con- teachings, such but instead compo- various that showed references ... have been obvi- that would tends machine, argued patented nents of existing designs modify “to machine ous been obvious select that it would have simply exchanging type one screen together put them components and these ... assembly with another.” Without ruling In its non- machine. one art any suggestion prior that the obviousness, district court discussed Eriksson, Royer and the best features explained its con- the cited references Trommel 620 would have been combined example: For clusions. recited in claim Power- the manner fail, argument obviousness must screen’s art as combination [T]he court so at JA2009- as the district held Defendants, merely which suggested Royer the loader Trom- combines device of the screening with the
mel Br. 44-45. The Federal Circuit Appellee in the opposite situated Eriksson Patent judgment. affirmed district court’s direction, produce a viable would Int’l Co. machine____The drawing schematic Ltd., (Fed.Cir.2000), Distrib. *7 by Defendants the combination offered denied, cert. necessary deviations from the
includes
(2001).
L.Ed.2d 962
how
prior art but
not indicate
these
does
years
request
later
Seven
from the prior
are obvious
alterations
ground
ed
on the
of obvi
reexamination
Accordingly,
teachings....
or
art
ousness,
and
citing
same references
portrayal
finds Defendant’s
of the
court
references,
strongest re
placing
additional
of the Erikkson
obvious combination
liance on
same references that had
Royer Trommel
Patent and
does
[sic]
However,
litigation.
cited in the
been
depositing
encompass
not
the element of
litigated
judg
an issue has been
and
when
top
material
from
the coarsest
resort,
last
ment entered in
court of
beyond
opposite
end of the
screen
of the doctrine
underlying rationale
“[t]he
machine.
party
who has
preclusion
of issue
and lost
be bound
litigated
v. Powerscreen Int’l
issue
should
Co.
Ltd.,
(D.Or. by
demand that
No.
that decision
cannot
Distrib.
Civ.
96-1574-AS
11, 1998),
again.” In re
op.
17-19. The
the issue be decided over
slip
June
(Fed.Cir.
Freeman,
30 F.3d
court ruled that
the '564
district
1994) (in
enforceable,
valid,
completed
in-
after
willfully
reexamination
Powerscreen,
gave
effect
litigation,
preclusive
entered final
PTO
fringed
ruling
court’s
on claim
to the district
judgment.
scope, although
Board
stated that it
“non-mutual offensive collateral estoppel”
the Board
stated that
did
agree
barred,
must be
Maj. Op. at 1257 n.3. The
court).
These fundamentals of question here is not of non-mutuality, for
judicial authority and administrative obli-
this reexamination was initiated by for this
gation are not subject to
vagaries
reexamination was initiated by the same
shifts in
burden
of proof
standard
in party that was
defendant
the district
non-judicial forums, as the panel majority
court and Federal Circuit. The question is
proposes. Although this
aspect was whether
the administrative
agency is
weighed in
Swanson,
In re
the Judicial Power dispositive judgment. Here, the question of obviousness had judicial
Conservation of and administra been finally decided, and Powerscreen is tive resources also against counsels reliti precluded from reopening the same issue gation of issues that have been fully adju in another forum. Whether viewed as res finally dicated and decided. Although the judicata or preclusion, reexamination administrative agency boards have a “qua on this issue is not available. si-judicial” flavor, “the same principles of efficiency justify application which The Reexamination Statute doctrine of collateral estoppel judicial statute, in its various proceedings also justify application its in evolving forms, did not and does pur quasi-judicial proceedings.” Graybill v. port to authorize departure from prin Serv., U.S. Postal 1571 ciples judicial review finali (Fed.Cir.1986) (holding Maryland ty. The statute authorizes the return of court preclusive decision had effect on an issued patent to the administrative Systems
Merit Protection proceed Board agency so examiners can ings). conduct a more thorough examination than *8 public in finality interest particu- is may have occurred the first time around. larly compelling in the context of commer- The purposes remain initially as conceived, cial investment and property rights. The provide to a less costly way of removing or adverse effect on the patent incentive, due restricting patents that should not have to uncertainty as to the validity duly of a granted been or that granted were too granted patent, notorious, is per- broadly, permit to such challenge even be meates hearing the record the recently fore litigation-inducing controversy has enacted America Invents arisen, Act. The reexam- and also to patentees enable to ination that is sustained, here after final bring overlooked references into the exam courts, contravenes the ination process. See Patent Reexamina policy of the reexamination procedures tion: Hearing on S. 1679 the Senate Before applied in this case. The panel ma- C omm. on the Judiciary, 96th Cong. jority apparently misperceives (1979) (statement this con- 15-16 of Comm’r Sidney cern, for question the is Diamond) (“Reexamination not whether all would elimi- adjudicated patent, an valid than amount of invalidate simplify significant a
nate or cases, the has patent PTO can the PTO validate a litigation. In some patent reexamina- adjudicated a result of Nor does the would conclude as been invalid. not have issued. patent grant a should to purport tion that reexamination statute A have issued. cer- patent A should not authority. such validity and litigation over tain amount completely would be infringement thus The merits 30,364 avoided.”); Cong. Rec. majority decides the merits of panel (“Reexamination (statement Bayh) of Sen. litiga- if there had been no appeal this as challengers holders and patent
would allow history, if the of obviousness as issue delays costs and present to the avoid fully adjudicated. been previously had not litigation.... Patent patent prior appeal to the As in the Federal our over- reduce the burden on will also Circuit, of the patent- the various elements drawing expertise the by courts worked ed refer- device were selected from various Office.”); Trademark of the Patent and ences, question and the is whether it would (1980) (statement 29,901 Cong. Rec. to been obvious combine these ele- have Hollenbeck) (“As pro- a of the Rep. result time, ments, way. and in This howev- this reexamination, con- potential vision for the er, my find that “one of ordi- colleagues by flict can be settled the Office art have able nary skill the would been itself in far time and at far smaller shorter to combine the available references such challenger the to the expense to practice alleged to way as invention.” only if the holder than would be the case This Maj. Op. is correct system.”). through recourse was court analytic criterion. re- The reexamination statute seeks to hindsight against Precedent warns com- expense reduce and encum- place or whereby disparate elements are bination litigation; brance of but when template into the of the new device fitted already litigated finally has been My guidance patentee. with the adjudicated, persons interested should be colleagues present a illustration of classical rely judicial able to on the decision. judicial to hindsight construct machine adjustments Throughout legislative known, a machine previously that was reexamination, suggested that no one reex- achieved commercial because success PTO amination could override previously unavailable advan- provided Such an unconstitu- decision. Fritch, See In re tages.2 contemplat- tional have act would not been (Fed.Cir.1992) (“[I]t impermissible Congress, improperly ed and is use the claimed invention as instruc- court. For the endorsed this ‘template’ piece together tion manual or issue, question here at of obviousness teachings art so that the litigated and decided in obvious.... court, claimed invention rendered followed decision on *9 Circuit, previously court has stated that ‘[o]ne Federal and denial of certiorari. This pick no hindsight on can more cannot use reconstruction PTO reexamination performance compared prior improving 2. The invention in the '564 channels machines, way whereby capacity a of its material in a novel art because oversized debris, large process larger it can be made small relatively small can handle machine enough transported operating site to be predecessors, debris than its while concur- sifting sorting using a commercial value rently debris. This ma- on roads hitch. Its imitators, litigation. reducing jamming chine is described as attracted among isolated and choose disclosures of fundamental principles. respectfully I dissent. deprecate art to the claimed in ”). prohibited analysis This vention.’ adopted by panel majority,
nonetheless
although unaccompanied any “articula a underpinning” rational com in such
bining way the references as to patentee. made
achieve machine Inc.,
See KSR Int'l Co.v.
Teleflex
398, 418,
127 S.Ct.
ness.”). Cancellation No. 92047859. KSR recognized
The Court that “in- United States Court of Appeals, most, Federal if all Circuit. rely ventions instances uncovered, upon long building blocks since Dec. and claimed necessity discoveries almost of what, will be combinations of in some
sense, already known.” 550 U.S.
Co., (Fed.Cir.2004) F.3d
(“Inventions typically are new combina- features.”). existing principles
tions
We are offered no rationale for the combi- obvious,
nation now deemed other than the
patentee’s any achievement. On view of us, in which posture this case reaches panel majority errs its decision.
Conclusion plan, judi-
As matter constitutional structure, legislative
cial power, and na-
tional policy, innovation that has
been held valid or invalid in court is not
subject to administrative redetermination premises, issue. On these generally the PTO is not
available of patentability after litigated
has been to a final from
which no can has been taken. accepted here procedure violation
