PROMEGA CORPORATION, Plaintiff-Cross-Appellant v. LIFE TECHNOLOGIES CORPORATION, Invitrogen IP Holdings, Inc., Applied Biosystems, LLC, Defendants-Appellants
2013-1011, 2013-1029, 2013-1376
United States Court of Appeals, Federal Circuit
November 13, 2017
875 F.3d 651
III
For the foregoing reasons, we affirm the district court‘s judgment.
AFFIRMED
PROMEGA CORPORATION, Plaintiff-Cross-Appellant
Max-Planck-Gesellschaft Zur Foerderung Der Wissenschaften E.V., Plaintiff
v.
LIFE TECHNOLOGIES CORPORATION, Invitrogen IP Holdings, Inc., Applied Biosystems, LLC, Defendants-Appellants
2013-1011, 2013-1029, 2013-1376
United States Court of Appeals, Federal Circuit.
Decided: November 13, 2017
EDWARD R. REINES, Weil, Gotshal & Manges LLP, Redwood Shores, CA, for defendants-appellants. Also represented by MARION MCLANE READ, DEREK C. WALTER; CARTER GLASGOW PHILLIPS, Sidley Austin LLP, Washington, DC.
DARYL JOSEFFER, King & Spalding LLP, Washington, DC, for amicus curiae The Internet Association. Also represented by PAUL ALESSIO MEZZINA; ADAM M. CONRAD, North Carolina Business Court, Charlotte, NC.
PETER J. BRANN, Brann & Isaacson, Lewiston, ME, for amici curiae Newegg, Inc., Acushnet Company, Limelight Networks, Inc., QVC, Inc., SAS Institute, Inc. Also represented by STACY O. STITHAM, DAVID SWETNAM-BURLAND.
Before PROST, MAYER, and CHEN, Circuit Judges.
CHEN, Circuit Judge.
This case returns to us on remand from the Supreme Court. See Life Techs. Corp. v. Promega Corp., --- U.S. ----, 137 S.Ct. 734, 741, 197 L.Ed.2d 33 (2017) (Promega II). Defendants-Appellants (collectively, Life) sought review of our decision in Promega Corp. v. Life Technologies Corp., 773 F.3d 1338 (Fed. Cir. 2014) (Promega I), arguing, inter alia, that we erred in holding that a multicomponent product assembled overseas could infringe a United
The Supreme Court‘s opinion did not affect several of our prior holdings. First, we held that the asserted claims of four patents owned by Promega Corporation (Promega) were invalid for failure to comply with the enablement requirement in
The Supreme Court‘s opinion, however, requires us to reconsider two of our prior holdings. First, we must reexamine our reversal of the district court‘s grant of Life‘s motion for judgment as a matter of law (JMOL) that Promega failed to prove its infringement case under
BACKGROUND
In our prior opinion, we described the asserted patents, accused products, and procedural history before the district court. See id. at 1341-45. We recite below only the facts relevant to our analyses of the district court‘s rulings on Life‘s JMOL motion and Promega‘s motion for a new trial.
I. Factual Background
From 2006 through 2012, Life sold genetic testing kits designed to detect the presence of “short tandem repeats” (STR), which are repeating sequences of DNA that are analyzed when profiling an individual‘s DNA. Id. at 1341-42, 1344. Life‘s
Promega was the exclusive licensee of United States Reissue Patent No. 37,984 (Tautz patent), which expired in 2015. The Tautz patent claimed methods and kits for analyzing DNA to determine the identity and kinship of organisms. See, e.g., Tautz patent, J.A. 406, col. 11 l. 51-col. 12 l. 64; J.A. 407, col. 13 ll. 28-47.
II. Proceedings in District Court
A. Pretrial Proceedings
Promega sued Life for infringement of the Tautz patent by Life‘s STR kits, seeking damages for infringement occurring between 2006 and 2012.
At summary judgment, Promega moved for a ruling that Life‘s accused products meet all of the elements of the asserted claims of the Tautz patent. See generally J.A. 688-703. Life did not challenge this assertion. Therefore, the district court granted Promega‘s motion. Promega did not request a ruling on Life‘s liability under any particular subsection of
B. Trial
The case proceeded to a jury trial. On the first day of trial, the parties stipulated that Life‘s total worldwide sales of the accused products during the pertinent time period amounted to $707,618,247. J.A. 189. Later, during Life‘s case-in-chief, a dispute arose as to the effect of the parties’ stipulation. During Life‘s direct examination of Mr. Guido Sandulli, one of Life‘s employees, counsel for Life asked Mr. Sandulli to quantify the amount of United States sales of Life‘s accused products since 2006. J.A. 6126. Prоmega objected to the question on the basis that the amount of United States sales was irrelevant to any issue in dispute at trial. The district court overruled the objection. Promega then requested a sidebar at which it argued that “[t]he whole purpose of [the stipulation] was to remove from this case the need for the plaintiff to go into [a] series of witnesses to prove up sales of infringing kits.” J.A. 6127. Life countered that there was still a live issue as to whether Promega was entitled to “damages on worldwide sales or simply on U.S. sales.” J.A. 6130. Promega responded that prior statements by Life had created the impression that Promega was not required to prove anything at trial regarding the amount of domestic versus foreign sales, in view of the stipulation.
The district court expressed its own confusion regarding whether the parties had agreed that Promеga did not need to separately quantify domestic and foreign sales. This confusion arose from prior statements
In its rebuttal case, Promega presented additional evidence of infringement. For example, Promega submitted financial spreadsheets generated by Life showing sales of the accused products to certain law enforcement agencies in the United States. Promega elicited testimony from Mr. Sandulli indicating that, although all of the accused kits were assembled in the United Kingdom, the Taq polymerase component used in all of the accused kits originated from the United States. In addition, Promega introduced evidence that three of the accused products—the “Identifiler” kits—included primer components that were supplied from the United States. However, Promega did not proffer evidence or elicit testimony intended to prove a specific amount of domestic, foreign, or any other subset of total sales. Instead, Promega relied only on the stipulated worldwide sales figure as a potential damages base. See, e.g., J.A. 6416-19 (counsel for Promega identifying, at closing argumеnt, only Life‘s total worldwide sales as a potential damages base).
Promega continued to rely solely on the worldwide sales figure when it submitted a proposed special verdict form to the district court that asked the jury to determine a single amount for sales falling under either, or both, of
The jury found that all of Life‘s $708 million in worldwide sales qualified as “United States sales,” and also found that a substantial portion of these sales, approximately $637 million, were for permitted uses under the 2006 license agreement. J.A. 202. The jury found that all of Life‘s unlicensed sales infringed Promega‘s five asserted patents under
C. Post-Trial Proceedings
1. Life‘s JMOL Motion
Life filed a renewed motion for JMOL pursuant to
The district court granted Life‘s JMOL motion, holding that no reasonable jury could have found, based on the trial reсord, that all of the accused products infringed under
Regarding infringement under
The district court further held that no reasonable jury could have found infringement under
2. Promega‘s Motion for a New Trial
After the district court issued its JMOL decision, Promega obtained new counsel and moved for reconsideration or a new trial, arguing for the first time that the evidence could support a damages award based on a subset of worldwide sales. The district court denied Promega‘s motion. The district court reiterated that Promega had waived any argument based on a subset of worldwide sales by failing to respond to Life‘s argument on this issue in its JMOL briefing:
In response to defendants’ [JMOL] motion, plaintiff argued that the motion should be denied because the evidence was sufficient to support the jury‘s finding that all of defendants’ sales of the accused products violated
§ 271(f)(1) or§ 271(a) . Plaintiff did not argue in the alternative that defendants’Rule 50 motion should be denied because the trial record was sufficient to support a lesser damages award and it did not respond in any way to defendants’ contention that plaintiff‘s evidence at trial was limited to defendants’ total worldwide sales. As a result, I concluded that plaintiff had conceded this issue.
J.A. 2365-66.
Promega appealed the district court‘s rulings on Life‘s JMOL motion and Promega‘s motion for a new trial.
III. Promega I
We reversed the district court‘s decisions on both motions. See Promega I, 773 F.3d at 1341. Regarding
IV. Promega II
The Supreme Court reversed our judgment and remanded for further proceedings consistent with the Court‘s opinion that “a single component does nоt constitute a substantial portion of the components that can give rise to liability under
V. Post-Remand Submissions by the Parties
The parties submitted statements on how we should proceed post-remand. See Case No. 13-1011 ECF No. 108 (Life‘s Statement), ECF No. 112 (Promega‘s Statement). Life argues that we should affirm the district court‘s post-trial decisions, contending that “[t]he trial judge with her ‘first-hand knowledge of witnesses, testimony, and issues’ simply held Promega to its own considered strategic litigation decisions, and appropriately denied Promega‘s retrial request.” Life‘s Statement at 3 (quoting Unitherm Food Sys., Inc. v. Swift-Eckrich, Inc., 546 U.S. 394, 401 n.3, 126 S.Ct. 980, 163 L.Ed.2d 974 (2006) (internal quotes and citations omitted)). Promega counters that we should reaffirm our prior holdings, reinstating the judgment of infringement under
STANDARDS OF REVIEW
We review a district court‘s rulings on post-trial motions for JMOL and a new trial under regional circuit law. Finjan, Inc. v. Secure Computing Corp., 626 F.3d 1197, 1202 (Fed. Cir. 2010). In the Seventh Circuit, a JMOL grant is reviewed “without deference, while viewing all the evidence in the light most favorable to the nonmoving party.” Trading Techs. Int‘l, Inc. v. eSpeed, Inc., 595 F.3d 1340, 1357 (Fed. Cir. 2010) (citing Harper v. Albert, 400 F.3d 1052, 1061 (7th Cir. 2005)). JMOL is proper when a party has been fully heard on an issue and there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue.
“The ruling on a motion for a new trial is a matter committed to the district court‘s discretion,” which the Seventh Circuit reviews “for abuse of discretion.” Galvan v. Norberg, 678 F.3d 581, 588 (7th Cir. 2012). In the Seventh Circuit, appellate review of a decision denying a new trial is “extremely deferential.” Id.
DISCUSSION
Under
I. Promega‘s Burden to Prove the Amount of Damages
In patent cases, “[t]he burden of proving dаmages falls on the patentee,” Lucent Techs., Inc. v. Gateway, Inc., 580 F.3d 1301, 1324 (Fed. Cir. 2009), and “[t]he [patentee] must show his damages by evidence,” Philp v. Nock, 84 U.S. 460, 462, 17 Wall. 460, 21 L.Ed. 679 (1873). Damages “must not be left to conjecture by the jury. They must be proved, and not guessed at.” Id.
When a patentee seeks lost profits as the measure of damages, “the patent holder bears the burden of proving the amount of the award.” Minco, Inc. v. Combustion Eng‘g, Inc., 95 F.3d 1109, 1118 (Fed. Cir. 1996) (emphasis added). “[T]he amount of a prevailing party‘s damages is a finding of fact on which the plaintiff bears the burden of proof by a preponderance of the evidence.” SmithKline Diagnostics, Inc. v. Helena Labs. Corp., 926 F.2d 1161, 1164 (Fed. Cir. 1991). “[T]he amount is normally provable by the facts in evidence or as a factual inference from the evidence.” Lindemann, 895 F.2d at 1406.
II. Promega‘s Waiver of Alternative Damages Arguments
The linchpin of the district court‘s rulings on Life‘s JMOL motion and Promega‘s motion for a new trial is its finding that Promega waived any argument that the trial record supports a damages calculation based on a subset of Life‘s total worldwide sales. In Promega I, we held that all of the accused products infringed under
We review the district court‘s waiver finding using the same standard applied by the regional circuit. Riverwood Int‘l Corp. v. R.A. Jones & Co., 324 F.3d 1346, 1352 (Fed. Cir. 2003). The Seventh Circuit reviews the ultimate legal conclusion of waiver de novo and predicate factual findings for clear error. Baker v. Lindgren, 856 F.3d 498, 506 (7th Cir. 2017).
Under Seventh Circuit precedent, a party may waive an argument by not raising it in opposition to a
Having reviewed Promega‘s responsive JMOL brief, we agree with the district court that Promega waived any argument that the trial record could support a damages award based on a subset of total sales by wholly failing to address Life‘s argument on this point.
Promega‘s position at JMOL was completely consistent with Promega‘s all-or-nothing damages strategy that Promega pursued throughout the litigation. At trial, the district court corrected Promega‘s misconceptions about the import of the parties’ stipulation regarding the amount of Life‘s total worldwide sales and informed Promega that it needed to put forward evidence separately proving the amount of infringing acts under
Promega presented no expert testimony on damages at trial. Instead, in its rebuttal case, Promega relied on exhibits and lay testimony, including testimony from Mr. Sandulli regarding financial spreadsheets showing sales of the accused products, without using any of this evidence to arrive at any numerical value that could have been used by a reasonable jury to calculate an award of lost profits damages. We agree with Life that Promega did not “produce a witness who could make sense of the documents” it presented in such a way that could have enabled a reasonable jury to calculate a damages award. Life Reply Br. at 50.
Promega later confirmed its adherence to its all-or-nothing approach by submitting a proposed special verdict form that asked the jury to determine a single “United States sales” figure for sales falling under both
Promega‘s deliberate strategy to adhere to a single damages theory had the effect of winnowing out from the case any argument about damages based on a figure other than worldwide sales. Cf. Tronzo v. Biomet, Inc., 236 F.3d 1342, 1347 (Fed. Cir. 2001) (affirming the district court‘s refusal to consider a new damages theory presented for the first time post-remand, because the plaintiff “made strategic decisions in the initial trial concerning what evidence and arguments to advance in support of his theory of damages“). The Supreme Court has explained that “waiver and forfeiture rules” exist to “ensure that parties can determine when an issue is out of the case, and that litigation remains, to the extent possible, an orderly progression.” Exxon Shipping Co. v. Baker, 554 U.S. 471, 487 n.6, 128 S.Ct. 2605, 171 L.Ed.2d 570 (2008).
The reason for the rules is not that litigation is a game, like golf, with arbitrary rules to test the skill of the players. Rather, litigation is a “winnowing process,” and the procedures for preserving or waiving issues are part of the machinery by which courts narrow what remains to be decided. Id. (quoting Poliquin v. Garden Way, Inc., 989 F.2d 527, 531 (1st Cir. 1993)). In the instant case, the district court could properly conclude that Promega abandoned any alternative damages base when it failed to rebut Life‘s argument in its
III. Life‘s JMOL Motion
Promega argues, and Life does not dispute, that the record contains evidence of admitted infringement by Life under
Before the district court, Promega‘s only argument regarding
Promega argues that the trial record could support a jury‘s decision to use a damages base other than the total sales figure. Promega‘s Statement at 10. As we discussed in our prior decision, we agree with Promega that there is evidence in the record to support some unspecified amount of
This is not, as Promega argues, a case involving a “general” damages verdict in which “one of multiple bases of liability” has “drop[ped] away after trial.” Promega‘s Statement at 2. This is a case where there was a finding of waiver that carried forward as law of the case to subsequent proceedings in the litigation, as discussed in more detail in § IV, infra. The nature of the waiver under the circumstances of this case had the effect of limiting the trial evidence on damages to only the parties’ stipulated worldwide sales figure. Because there was insufficient evidenсe to show that all worldwide sales infringed under
For the foregoing reasons, we affirm the district court‘s decision granting Life‘s JMOL motion.
IV. Promega‘s Motion for a New Trial
Promega argues that Life‘s admitted infringement, the Seventh Amendment,13
Life argues that retrial should not be granted on a waived theory presented for the first time post-judgment. Life‘s Statement at 16; see also id. at n.4 (citing, e.g., Anderson v. Flexel, Inc., 47 F.3d 243, 247 (7th Cir. 1995) (rejecting new theory urged for the first time post-judgment)). In addition, Life argues that “Promegа‘s reliance on
We agree with Life. Under the law of the case doctrine, the district court properly exercised its discretion by relying on its waiver finding from its JMOL ruling to support its decision to deny Promega‘s motion for a new trial. J.A. 2369. The district court also permissibly relied on the Seventh Circuit‘s holding that “[a] party may not introduce evidence or make arguments in a Rule 59 motion that could or shоuld have been presented to the court prior to judgment.” J.A. 2366 (quoting United States v. 47 West 644 Route 38, Maple Park, Ill., 190 F.3d 781, 783 (7th Cir. 1999)). If Promega wanted to argue that the evidence at trial supported a damages calculation based on anything other than worldwide sales, it should have raised such an argument at trial and in response to Life‘s
Promega improperly conflates what is procedurally permitted under
Promega‘s arguments regarding the Seventh Amendment,
This is an unusual case. Patent owners who prove infringement are typically awarded at least some amount of damages. See Lindemann, 895 F.2d at 1406. But, as explained above, a patent owner may waive its right to a damages award when it deliberately abandons valid theories of recovery in a singular pursuit of an ultimately invalid damages theory. When a plaintiff deliberately takes a risk by relying at trial exclusively on a damages theory that ultimately proves unsuccessful, and, when challenged, does not dispute that it failed to present an alternative case for damages, a district court does not abuse its discretion by declining to give that plaintiff multiple chances to correct deficiencies in its arguments or the record. We affirm the district court‘s decision on Promega‘s motion for a new trial and hold that the district court did not abuse its discretion in denying the motion.
Because we hold that Promega is not entitled to any damages, we affirm the district court‘s denial of Promega‘s motion for enhanced damages under
CONCLUSION
For the reasons above, we affirm the district court‘s grant of Life‘s motion for judgment as a matter of law and denial of Promega‘s motion for a new trial.
AFFIRMED
COSTS
No costs.
Notes
Section 271(f)(1) states:
Whoever without authority supplies оr causes to be supplied in or from the United States all or a substantial portion of the components of a patented invention, where such components are uncombined in whole or in part, in such manner as to actively induce the combination of such components outside of the United States in a manner that would infringe the patent if such combination occurred within the United States, shall be liable as an infringer.
The 2006 license agreement was originally between Promega and Applied Biosystems, LLC, which is now a wholly-owned subsidiary of Life. See Promega I, 773 F.3d at 1344 & n.3.
Section 271(a) states:
Except as otherwise provided in this title, whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent.
Section 284 states, in pertinent part:
Upon finding for the claimant the court shall award the claimant damages adequate to compensate for the infringement, but in no event less than a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court.
In its JMOL opposition brief, Promega argued that: (1) Life‘s JMOL motion raised untimely arguments that were not raised in Life‘s
The Seventh Amendment recites:
In suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved, and no fact tried by a jury, shall be otherwise reexamined in any court of the United States, than according to the rules of the common law.
