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Railroad Dynamics, Inc., Appellant/cross-Appellee v. A. Stucki Company, Appellee/cross-Appellant
727 F.2d 1506
Fed. Cir.
1984
Check Treatment

*4 (or, tacts the frame when the snubber is MARKEY, Before FRIED- Judge, Chief position, reversed in at which point MAN, NICHOLS, Circuit Judge, and Senior bolster). rod contacts the Judge. Circuit representative: 1 is Claim MARKEY, Judge. Chief dampened truck railway assem- Appeal from a judgment of the District bly selectively operable in loaded and un- Court for the of Pennsyl- Eastern District loaded conditions and having hydraulic denying vania motions for not- judgment apparatus interposed spring snubber in a withstanding (JNOV) the verdict and for a group intermediate a bolster member and 3,837,292 (’292 new trial. Patent U.S. No. member, frame improvement a side patent), assigned (Stucki), to A. Co. Stucki comprising: interposed means between infringed. was held valid and found Dam- apparatus snubber one of said said ages were awarded in the apparatus amount of members to bias said snubber $2,182,986. We affirm. operative engagement out of with said new truck moved for or for a trial said JNOV said members when

one of an un- normally royalties assembly operating objected inclusion condition; means and and said loaded award. moved carsets Stucki certain being cooperable apparatus snubber said by increasing amend judgment to alter snubbing by said hydraulic initiate amount of award. substantially only apparatus snubber Broderick, and exhaus- in a careful Judge assembly is nor- railway said truck F.Supp. at published tive Memorandum condition, the in a mally operating loaded all the evi- USPQ 618, reviewed means overcome partially bias of said dence, trial post and denied the motions of opera- is in and said snubber apparatus for correction of (except RDI and Stucki mem- engagement tive with both of said interest). error the calculation clerical bers. Order on court entered an The district August 1983 that March Procedural History corrected, tunc, pro nunc (RDI) brought a Dynamics, Railroad Inc. $2,182,986. Final judg- favor Stucki declaratory judgment against action 28,1 entered March accordingly ment was 1975, seeking a of patent declaration after suit was years or some seven for in- invalidity. Stucki counterclaimed filed. fringement. lia infringement RDI admitted and the Issues tried bility issue was to a for three *5 entered on (A) judgment Whether 19, 1980 10, 1980). The (May weeks June is in the jury supported verdict record. judge gave trial detailed instructions covering over 51 of the record. jury, pages erred in: (B) Whether the district court inquiries answered in ten jury writing The jury; (2) (1) submitting legal issue to “interrogatories”, each of its an labeled jury; (3) submitting interrogatories agree favoring parties swers Stucki. The (4) failing to instructing jury; declare gen jury’s amounted to a answers or invalidity for lack of oath declaration. verdict in favor of eral Stucki. court (C) Whether the district erred damages issue tried to the court The was determining damages. the amount of 9,1981 20,1981. February February from Memorandum unreported The court in an OPINION royalty established a reasonable $35.00 of Review—In General2 Standard per (four snubbers) interest. plus carset 6% judgments appealed. It is that are 25, 1981, issued an August On the court a final issues favor of judgment Because favor of judgment Order that be entered in movant, “an it has said that order $1,960,700. en- been Judgment for August appealable”. 26. a motion is granting tered on for JNOV Damages were on this basis: awarded Royalty Royalty ($35.00/ with Compound Carsets Carset) Interest at

Shipped 6% - 124,400 84,236 12/1/74 4/30/75 2.406.75 - 245,977 176,505 5/1/75 4/30/76 5.043.00 - 312,105 238,175 5/1/76 4/30/77 6.805.00 - 309,493 250,075 4/30/78 5/1/77 7.145.00 - 386,807 332,080 5/1/78 4/30/79 9.488.00 - 465,360 513,013 13,296.00 5/1/79 4/30/80 - 291,191 279,991 2/9/81 5/1/80 7.999.75 2,182,986 52,183.50 1,826,422

TOTAL cases and the indication of section is distasteful dicta deemed desir- trials patent 2. This growing briefs and in other appeals. in view of the incidence of here able need only Orders a motion for JNOV and denying meaning court, that ease as that the district a motion for granting denying new trial a motion for considering JNOV attacking generally judgments do not result validity, only determines whether pat- are not themselves 5A Moore’s appealable. ent owner had introduced sufficiently sub- (2d 1983). ¶ Federal Practice 50.16 ed. support stantial evidence to that conclusion. instances, appealable those latter the only would, That approach contrary to the stat- judgment is that entered on the ver ute, 35 U.S.C. shift to the patent § dict. owner the burden of proving facts estab- lishing validity. Where post-trial no motions of the filed, type discussed here were and the ap Patent owners are never in law re peal directly judgment from the entered quired prove establishing facts validity, verdict, on the jury’s sufficiency review for though they may necessary be well of evidence is extremely limited or non-ex prove advised to such facts in rebuttal of a istent, prejudicial legal error must be shown patent challenger’s do, case. they When trial, to have occurred in the conduct of the validity verdict of may be sustained on the and the action an appellate court is limit failure of the challenger to meet its burden ed to affirmance or remand for new trial. in light of the rebuttal evidence. Argento, Lenard v. See F.2d placed burden challengers (7th Cir.1983); Holding Scientific Co. 282 is not undue. There are many § Inc., Plessey, (2nd Cir.1974). F.2d grounds for challenging patent. Chal- It thus behooves counsel to file non-frivo all; lengers press often them and challeng- JNOV, lous motions for directed they ers win if only establish one. and for new trial. When a validity verdict of where Similarly, there has been no JNOV, therefore, tested a motion for motion for 50(b) JNOV under Rule Fed.R. district court must determine whether the Civ.P., and nothing of record that may be patent challenger’s evidence met the burden motion, treated as such a appellate court imposed by 282. If cannot that evidence be such § reverse or order appel *6 lant. as to have so withstood the Virginia Pulp Paper patent Cone v. West & owner’s Co., 212, 752, 330 U.S. 67 S.Ct. 91 L.Ed. 849 rebuttal evidence that jurors reasonable (1947); Liquor Roman, Globe v.Co. San 332 could not have concluded patent that the 246, U.S. 68 92 L.Ed. (1948); S.Ct. 177 valid, the motion granted. should be If the York, Johnson v. New New Haven & Hart patent challenger’s test, evidence fails that Co., ford Railroad 344 U.S. 73 S.Ct. the motion should be denied. (1952). Moore’s, L.Ed. supra, 150.12. When the verdict connotes invalidi An appeal may not be treated as a substi ty, properly a instructed jury has necessari tute for a motion for JNOV that was not ly determined that the patent challenger’s made to the district court. evidence met imposed by the burden § Though has been said that a district A presented district court with the patent presented court with a motion for JNOV owner’s motion for JNOV would apply the must determine whether there was “sub- test, i.e., same jurors whether reasonable verdict”, stantial evidence support the viewing the challenger’s evidence could or Sears, Co., Connell v. See Roebuck & not have could reached the conclusion that (Fed.Cir. 23, F.2d 1542 1983), quoted the patent the is invalid. must phrase applicable not be taken as Respecting infringement, the shoe is the same manner to all issues encompassed foot, on the other for there the burden is on in the verdict or in a manner that would the patent owner. Whether the verdict be disregard proper placement the of the bur- patent alleged infringer, for the owner or a proof. den of For the example, may verdict owner, attacking infringe motion for JNOV the patent be for the necessarily imply- a on whether the ing patent finding conclusion that the is valid. ment must tested quoted The must not evidence was such that rea- phrase patent be taken in owner’s the trial court’s Memo disregards de- could not have jurors could or sonable a mention of “the Except not for were were randum. that the claims or termined refer a one sentence monopoly” and patent infringed. Sears, and Com Roebuck ence to Roberts Case of Review —This Standard Cir.) vacated and (7th 697 F.2d pany, banc, (7th Cir. remanded en a motion for denial of present reflects a thor 1983), Memorandum is reviewable JNOV, though appealable, fac unchallengeable statement ough, the from appeal with the in connection of RDI’s basis for denial legal tual and the verdict. When entered on judgment application of motions, well as a correct as the granted, has been motion for JNOV trials procedure governing law and entered the review is that judgment on would cases and determination judgment not the judge, trial entered on the verdict. Whether in this case. damages have been granted, appellate motion was denied or en- judgment from a appeals who One path, follows the decisional discussed review motions, trial post a verdict absent tered on supra, Moore’s, infra, trod the trial court. grant on the of a judgment entered from a 50.07. ¶ JNOV, entered judgment from motion or of a motion for Similarly, though the denial a verdict after denial on on a ap JNOV, judgment motion for new trial is not entered grant of a or from new reviewa of a motion for pealable, a denial of that motion is after denial verdict time appeal trial, with the from the court’s ble connection if he would not waste on the verdict. Review judgment money, comply entered must and his client’s conducted, however, first, an abuse of dis appellant rules. If the applicable supra, standard. Moore’s prejudi- cretion prepared to show ¶ 59.15[3]. must come If the occurred at trial. legal cial error Where, here, motion for JNOV as third, pre- must come appellant second denied, appellee may grounds assert find- jury’s factual pared to show if entitle him to a new trial that would evi- supported by substantial ings were not for JNOV is held to denial of the motion were, dence, jury’s legal they or if 50(d), Rule Fed.R. in error. been those facts. supported by was not conclusion support assertions in Civ.P. Stucki’s last, prepared must come appellant If the denial of RDI’s motions verdict and the denying an abuse of discretion show assertion of such considered an may be trial. motion for new grounds here. is from the Though present appeal also, Where, as here motions entered on denied, for new trial have been JNOV and is, motion for JNOV of RDI’s denial may court affirm the denial appellate *7 indicated, re- reviewable. Because above latter, former, the denial of the the reverse former, the encompasses of the latter view Moore’s, supra, a new trial. and order light In of together. be discussed they may ¶ 50.15. par- of the presentation record and the the foregoing the rules and decisions Though ties, (A) the together consider under we and actions the standards of review govern the motion and the denial of jury’s verdict appeals court on from open appellate to an JNOV, (B) under the denial we consider circum- entered under various judgments light of its RDI’s motion for new trial of trial, parties the following jury a stances trial in rela- the conduct of the attacks on those rules essentially ignored here have verdict, and we consider jury’s tion to the directly assert RDI does and decisions. en- (C) judgment of the court under the preju- resulted from jury’s the verdict that damages proceeding. tered on the error in the argue error. It does legal dicial its (directly respecting of its motions denial (A) Jury’s JNOV —The Verdict JNOV; its indirectly respecting motion for motion for Upon presentation of a i.e., error trial, asserting new by motion for on following jury a verdict JNOV trial). in the conduct of the validity, the court must con- district first Judge Our review of Broderick’s sider the fact evidence and draw reasonable thorough coupled Memorandum with con inferences in a most the light favorable to of parties’ sideration the presentations on without non-moving party, determining appeal, leads the inescapably to conclusion credibility substituting or its that choice for that RDI’s motion for JNOV was properly conflicting ap- when elements denied. pear probative the evi- substantial fact The thrust of arguments RDI’s here cen- dence. The is to moving party entitled a piece ter around of non-patented prior art JNOY when is (1) the court convinced: that arrangement. known as the Holland In reasonable persons light could not in that arrangement that or spiral stiff “volute” necessary evidence have found the facts to placed is between the bolster and the verdict; the support jury’s (2) the that frame. dispute at trial was whether properly support facts cannot in law found was, the spiral unlike snubber the If, hand, that verdict. the other the inventions, claimed contact the bol- is court convinced that persons reasonable ster and frame. says RDI the Holland ar- light could have found that evidence rangement spaced is like the claimed snub- the necessary support all facts the ber is therefore pertinent more than verdict, denial of motion the for JNOV is the by art considered the Patent and Trade- Connell, required. supra, 722 F.2d at (PTO), mark Office it that would have Thus the trial judge engages in a two obvious the rendered inventions claimed in step process presented motion basis, patent. ’292 On that RDI argues (1) sup- JNOV: determine what facts are there evidence of record which evidence; ported by (2) substantial de- would support grant of its motion for termine whether those facts support JNOV. legal necessarily conclusion drawn by jury enroute to its verdict. says RDI because “the issue of obvi- legal conclusion, ousness is albeit based on conducting step, In the first trial facts”, in the form evidence that issue is judge avoids jury’s province invasion “fully by reviewable this court de novo”. by respecting right reasonably its select confusing. The assertion is at best Every the probative from evidence and to deter- legal conclusion must be based on facts mine credibility. conducting In the second by established evidence. “De novo" review step, judge jus- a miscarriage avoids totally means a new fact-finding effort. by tice reaching, when the rules render necessary, a legal conclusion from different sit We do not Given fact-finders. of the jury. respect Because of the evidence, facts supported substantial we trial, right due constitutional to a jury certainly court, are at liberty, as is the trial relating judge’s the rules role neces- say committed error of sarily judicial limit that in- interposition to reaching law in its conclusion on obvious- underlying stances which the facts found ness when those facts will not in law sup- jury (in writing implied or as from port quite the conclusion. But an- return general verdict) of a are either thing from other what is RDI. desired ev- supported by not themselves substantial or, turn supported, idence if so cannot in do, appellants As are wont support jury’s legal conclusion. trial, seeks a second this albeit at level. *8 “de the arguing for novo" review of obvi present the was trial judge Thus who at “issue”, ousness RDI would render a trial of positioned, presented a motion is best question that for all that unnecessary, JNOV, in detail for to review the evidence necessary proposal would be under case, RDI’s present In the our and events at trial. patent that mail parties the us the and the is aided trial by the approach decisional prior set- art and ask we think review and his Memorandum whether the judge’s for mo- been denying forth his reasons the claimed invention would have obvious ting for tion JNOV. or unobvious. Denial of Trial (B) New Motion our role as an

Thus RDI misconceives jus- hall appellate court. the concert of not so RDI’s asser- Though designated, tice, part play. musician a to each has in of trial of error the conduct the tions his but plays When one on whim not own the (B)(1), (2), (3)) are attacks on (issues and certain. More- part, another’s discord is new These its motion for a trial. denial of over, are under well parts played our if warrant a new attacks would sustained play When a elects to player defined rules. assume, a as to (not, appears trial RDI design, rules personal under of a special it). appears and for As reversal satisfy sweetly so though playing his should de- below, declaring for the no basis exists ear, the justice the of his inner concert new to have nial RDI’s motion for trial of succeed. roles rules itself cannot The and of discretion. been abuse an trial are distinct and appellate of and courts Hence, designed harmony. to distinctly Legal for A Issue (B)(1) Submitting reject Jury RDI’s to consider the we invitation the de and arrangement Holland evidence novo in strenuously RDI asserts error to reach our own conclusion on obviousness question the of obvious submission vacuum, though many in a as the events language from an jury, citing ness the to appeal before this never occurred. seeming to so opinion of another court trial may That there have been evidence state. i.e., sides, to both to RDI and to favorable that it is not error to This court held Stucki, simply usually There irrelevant. to a question submit the of obviousness At argument, responded is. oral to Connell, supra, at As jury. it to this court’s indication that did not sit Connell, there is no reason for stated review de evidence novo with assertion legal ques- the of distinguishing submission no there is evidence favorable jury a cases from the patent tions to Stucki. That assertion is unfounded. legal juries submissions of issues to routine is dis- ample evidence favorable of types in other cases. F.Supp. cussed at 579 by Judge Broderick elsewhere, ef- appearing Language 364-66, 625-26. jury findings” no when it fect that a “made RDI’s “no evidence” assertion is short- general legal a or that the returned disagreement hand the for its first “al- regarding obviousness must conclusion court’s of jury’s and now district view ways judge made and not the evidence, expert particular testi- jury”, broadly as so stated difficult are mony that contact of the bolster with the always necessarily A jury understand. spiral in the Holland arrangement. occurs (albeit findings unwritten) makes before it our governing jurispru- Under the rules general Similarly, its verdict. a reaches dence, had jury right credit conclusion, jury necessarily legal reaches and, testimony, factual under those expert judge’s with the in- presumably accord rules, deprive judge trial could not law, on the it reaches its structions before by substituting own right of that his Moreover, verdict. is idle to general may Nor we

credibility finder, determination. as fact so speak jury solely per- ours. Because reasonable substituting long general instructions on the law and sons, testimony, could crediting a jury remain elements of trial. verdicts arrangement did found that Holland 49, 50, if Fed.R. When and Rules RDI, asserted spacing involve Civ.P., repealed, may there are be room for JNOV of RDI’s motion the denial finding juries the restriction fact required. prohibition general role verdicts verdict or other types trials. Un attacks on RDI’s other day, prohibition general til ver of attacks on in terms that are couched (and disregard of the findings are without dicts motion for JNOV denial *9 must legal jury conclusions a make merit.

1515 verdicts) you plaintiff cannot be accom- Do find that the reaching those convincing clear and evi- proved by judicial fiat. plished by that United Patent No. dence States course, is, no reason for con- of There 3,837,292 ground is invalid on the of the cases as somehow out of sidering patent obviousness? proce- rules of of the law and mainstream submitted to the interrogatories The ten trials for centuries jury applicable dure answers, case, are in this and the jury waiver of jurisprudence. our Until under opinion. A to this As Appendix found the Act of permitted by trials was jury 2, 9, seen, interrogatories be all but may 501, 3, 1865, 86, 4, 13 all ch. Stat. March § substantially identical with in- and 10 are juries. tried The by cases at law were 1, differing only respect with terrogatory resurfacing jury of comparatively recent many grounds invalidity by the of asserted cases, of though productive in patent trials RDI. judges for some and commenta- discomfort welcome; tors, may not be wise or may courts have broad au District special of and it forms no basis for creation the controlling and discretion in con thority rules, consequent or for the unauthorized authority a trial. That extends to duct of denying the constitution- effectively risk of verdicts, juries return the form which clause of the out in the first right spelled al 49, and will not be interfered Fed.R.Civ.P. Amendment. Seventh abuse of discretion is shown. with unless an Metal, Hammerquist v. Clarke’s Sheet See danger error nor Thus it is neither 481, 1319, 1322-23, USPQ Inc., 212 legal ju issues to justice ous to to submit Cir.1981), nom. (9th cert. denied sub 483 ries, being accompanied the submission Corp. International v. Carson Carsonite on the law from appropriate instructions 1499, Co., -- U.S. --, 103 S.Ct. Mfg. to inter judge. relating The rules the trial v. Acme- (1983); Tights, Inc. L.Ed.2d instructions, di motions for rogatories, jury 1061, McCrary Corp., F.2d verdict, JNOY, trial, new and rected (4th Cir.), 314-15 cert. denied following jury governing appeals the rules Inc., Tights, Kayser-Roth Corp. sub nom. trials, fully adequate provide are 50 L.Ed.2d 589 97 S.Ct. 429 U.S. guardian as of interposition judge of the use of (1976). RDI has not shown that and when neces proper point the law at “interrogatories” constituted present judge question There is no sary. a new trial in requiring of discretion abuse must remain the ultimate arbiter on this case. He or she exercis question of obviousness. is inart- challenged “interrogatory” exercising judge’s first in The es that role It sets parties. labeled as fully instructions on such duty giving proper of proof (“proved by clear its ver forth standard law to the before it considers evidence”) relation to a convincing on the judge exercises control dict. (“invalid ground conclusion on legal with a mo again presented question obviousness”). Yet conclusions are legal new trial. In no sense tion for JNOV or as Interrogatories, facts are. proved; guardianship judge need the abdicate such, seeking answers employed are best that the trial necessary All that is role. the answers to questions, factual which here, role, was and ours judge’s clearly legal conclusion. require lead to or the rules. within appeal, played on invalidity requires for obviousness That (B)(2) Interrogatories convincing evidence of by clear proof general subject in- establishing that submission obviousness is Asserting facts interroga- interrogatories but for in- (instead specific not for terrogatories matter law en- error, leading guiding to a reversal of on the tories) structions legal its conclusion on the issue jury, RDI centers route to judge the roles 51; it. Rule obvi- Fed.R.Civ.P. dealing submitted interrogatory attack However, requests error to label if it be ousness: *10 1516 the coupled judge,

verdicts with without merit. That is jury, elements of instruc- tions on the law as it of the evidence in “interrogatories”, having considered all light must be viewed in entirety the of motions, of he said would to RDI’s response trial, at events was as so viewed it as those made findings made the same have harmless. role rever- jury the does not constitute indicated, Moreover, a as above when sal. as Though labeled the “interrogatories”, verdict, law general pre- a the returns jury questions put ten to jury designed the were elicit, findings implied fact to and were the existence of treated all concerned sumes elicited, as a having Be- reached that verdict. ten-part jury’s having verdict. the from tried, was the validity only cause issue findings certain jury the must make That of interrogatories encompassed the ten each is, as it it can its verdict reach before defenses, hardly RDI’s numerous RDI can here, clear instructions on the made in the complain separate returned a general the The verdict given jury. law defenses, of of verdict on each those instead the conclusion and jury’s legal includes thus ex- returning general reading, a verdict the latter implied findings, of fact a set (which “we find in of ample, favor Stucki” the necessary support legal those to being of it could have absent the ten course done the verdict. encompassed in conclusion responses “interrogatories”). jury’s The were verdicts, they were not special because When, here, present is judge as the upon “written each simply finding[s] not a motion or for new trial ed with for JNOV 49(a), fact”. Rule Fed.R.Civ.P. issue of there is sufficient and determines whether single per there a general Nor was the support jury’s of record to evidence se, accompanied by “written answers” findings, is not role reversal. implied the of “one or more issues fact decision contrary, serving precisely the it is the On 49(b) necessary to a Rule which verdict”. judge long role of under established Nonetheless, as above indi- Fed.R.Civ.P. Pumps rules. Panther & procedural See cated, correctly viewed the parties Inc., 468 Co. v. F.2d Equipment Hydrocraft, responses equal gener- ten 228, 577, Cir.1972), 225, (7th 175 579 USPQ jury spoke al verdict for Stucki. That denied, Q.S. 965, 2143, 411 93 36 cert. S.Ct. respect each defense is specifically (1973); v. American May L.Ed.2d 685 in benefit courts and to this case of Distributors, Inc., 715 Waterbed Southwest parties. 876, 880, USPQ 433, (5th 218 437 Cir. F.2d interrogato- attack on the primary RDI’s 1983). ries, call “in- which its briefs on occasion judge deciding role of the trial The structions”, centers the statement trial, and new motions JNOV upon challenger’s is met burden review, are greatly of this court on evidence, convincing” whereas “clear and facilitated answered “preponder- is met when mere says burden, writing. indi- factual When inquiries ance” as above series of is shown. defenses, cated, issue, facts prove supporting interrogatories is to seek obviousness is not, prove legal conclu- says, as RDI writing inquiries drawn ing answers de- invalidity) sought by those (patent sion those listed v. John Deere about in Graham the stan- This court has said that fenses. 684, 15 Co., L.Ed.2d 383 U.S. S.Ct. necessary support facts proof dard (1966), insofar as evi “clear and invalidity legal conclusion at relate to those in dence adduced trial upon a change It does not convincing”. Connell, employed. should be su quiries, art considered prior showing of cited F.2d at and cases there pra, 722 Connell, defense to defense. or from PTO in; Company Derrick American Hoist and supra. Sons, Inc., 725 F.2d & Sowa modified (Fed.Cir.1984). Examples from interroga assertion that

RDI’s cases reversal, employed appear a few actual in which the those in role tories resulted opinion. B to Appendix role of the this fact-finding judge played *11 ITC, to detailed fact in law. Removal v. Failure submit Solder F.2d every will not in case result in terrogatories 1978); (CCPA Sunspool, 633 n. 9 Richdel v. the for a new trial. Rule Fed.R. need (Fed.Cir.1983). 714 F.2d 1573 practice strongly is nonetheless Civ.P. The indicated, assuming As above and of appropriate recommended as an means reliability pertinent (an unlikely the of its art was more as guiding jury, increasing a facilitating judicial and the role verdict) its sumption in view of the RDI was following jury a trial. not entitled to an instruction that its bur preponderance den could be met of the by

(B)(3) Instructions presumption validity evidence. The is indicated, As above the district court destroyed neither weakened nor where art extended, detailed, gave the care- jury and pertinent than by more that considered the the law. ful instructions on Those instruc- introduced; offering PTO is the party make correctly required tions to simply likely carry more the burden of proper findings reaching before its conclu- facts proving clearly convincingly and un questions presented on to it. legal sions Medtronic, der those circumstances. Inc. v. specifically The court’s re- instructions Pacemakers, Inc., Cardiac set quired findings inquiries forth (Fed.Cir.1983). Similarly, argu RDI’s Graham, before the reached its supra, required prove ment that it was facts conclusion on obviousness. The instructions establishing its “failure set forth the best contained no error of law governing mode” defense only by preponderance, issues at trial that would warrant a new because that issue was not before the exam trial. iner, is without merit. RDI has made no effort to claim error in any instruction, for the reason that perhaps among plethora RDI included its few very appear errors that do were defenses applied one to which it at trial the (“the pro- favorable to it combination must inappropriate long ago and discredited “late result”; surprising duce a new and “second- claiming” label. Because Stucki had ary finding factors .'.. cannot support amended its claims in the course of prose [sic, holding] subject matter is not cuting application, RDI created from [sic, your would not have obvious if been] single variously that fact four labeled “de consideration of the three factors [Graham] (1) fenses”: the claims of the ’292 listed leads to the conclusion that the sub- patent designed are to encompass RDI’s ject [sic, matter is would have obvi- been] product, and therefore claim an invention ous”). headings RDI’s briefs include assert- claimed; (2) different from that originally instructions, ing error in the but the text that the claims by entered amendment were headings under those foregoing discusses its declaration; supported by (3) never oath or objections to the interrogatories, not to the acquired that RDI had “intervening instructions. (4) that rights”; guilty Stucki was (1) RDI asserts: is not enti- claiming”. “late As the district court cor tled to presume uncited U.S. Patents rectly recognized, question the sole raised 1,983,088 1,989,433 to Kiesel and Syming- single but by variously stated defense PTO, ton solely were considered be- is whether claims entered amend they cause are listed classes and subclass- supported by ment were the disclosure in searched; (2) that two patents es those original application. clearly As set Stucki’s arrangement per- are more and the Holland forth at 579 F.Supp. 369-370, Having tinent than the art cited. intro- 631-632, ample there was sup evidence to art, pertinent more says duced what it port finding question that that must be thereafter “show says RDI then it need answered in the affirmative. RDI’s argu preponderance only obviousness” ment that should be held invalid evidence, required rather than in light of this many-labeled clear defense facts obviousness is and prove supporting That is not the convincing always evidence. was without merit. importance of snubber light Instructions must be viewed In their to RDI and the dollar amounts entirety. permissible A new trial is sales only profit, when it is in the district court selling price clear that error in the royalty structions as a that a reasonable whole was such as to have determined $35/carset, jury. case, falling neigh- misled the an amount in the present we conclude that any no such error at borhood of 7.5% of the snubber’s 1974-75 occurred point given jury. selling price. instructions $2,182,986 were awarded *12 Damages (B)(4) Oath Declaration 52,183.5 carsets, supra sale of based on the above, As indicated there immediately 1, note with 6% interest. was no basis for RDI’s assertion that the court’s party Neither is satisfied with patent was invalid sepa- for failure to file a RDI asserts that the judgment. rate oath or declaration in support of claims royalty approach on a rate that is based by amendment, inserted those claims being (i) erroneous because: it is not con- clearly fully supported original disclosure. licenses; by existing (ii) it does not trolled Nor was there basis for RDI’s assertion on offer; (iii) match 7.5% it is not Stucki’s appeal that the district court erred in fail- invention; (iv) on the claimed and it based ing to declare the invalid for lack of sales; foreign (v) it was applied and supplemental oath or declaration. no- applied receipt sales made before (i) tice. asserts: it is entitled to lost (C) Damages (ii) that a interest rate is profits; 6% Judge thoroughly analyzed Broderick too low. evidence on in damages light of fifteen RDI’s Assertions factors in Georgia-Pacific Corp. v. United Existing i. Licenses Plywood 1116, States Corp., 318 F.Supp. 1120, USPQ 235, (S.D.N.Y.1970), 166 238 RDI three points to licenses for bol modified, 295, (2d 446 F.2d 170 369 having royalty sters and sideframes rates Cir.), denied, 870, 105, cert. 92 S.Ct. U.S. industry either 1% or as evidence of an $1 (1971) approved by 30 L.Ed.2d 114 his However, relating standard. three licenses (the Third) circuit in Trio Corp. Process products entirely pat distinct from the Sons, Inc., 1353, L. Goldstein’s product ented are insufficient here to estab USPQ 881, (3d Cir.), cert. industry lish an standard. The district denied, 449 U.S. 101 S.Ct. correctly apply court refused to the rates of (1980). L.Ed.2d 30 present those licenses in the case. royalty initially sug- A rate of 7.5% was ii. Offer Stucki’s gested January in 1975 letter to Stucki’s average Based on the 1975-1980 selling license, RDI of a concerning possibility $416.19/carset, price of royalty stating contemplated the letter that “it is equates set court district $35/carset rate will not in excess of royalty be royalty Though to an 8.4% rate. that rate percent selling price” 7V2 of the net of a greater is less than 1% than the maximum carset. rate royalty contemplated by Stucki its (1) The district court found that: RDI’s letter, January 1975 RDI asserts that (four pre-tax profit was snub- $72/carset clearly district court was erroneous in es- bers), price; of the sale equalling (2) 16.4% tablishing it as a reasonable royalty. it profits RDI did not make consistent until snubber; infringing (3) its snub- The district court considered introduced $343,200in royalty expressed ber sales increased from 1973 to rate Stucki’s letter as 1980; $5,591,486 (4) reaching damages its determi although one factor nation, $46,856 had, began that the letter itself and the noting lost in 1973 it after in- annual evidence that the letter was not a infringement, growing taxable indicated $1,292,830 offer, firm that examination of RDI’s reaching come to a was to have a prerequisite records been that RDI notice 40 days (December had earlier offer, would be royalty firm that no rate 1974), finding supported by testimo if it undersell accepted allowed a licensee to ny that marked snubbers were sold soon Stueki, royalty and that a minimum castings after marked were received in No $500,000/year was re- desired to recover vember of 1974. cannot be development search and costs. It said the difference between 8.4% Assertions Stucki’s selling “contem- average price merely and a i. Lost Profits consti- plated” selling price 7.5% net overturning tutes a sufficient basis for says the Stueki district court erred determination of the district court. because it Stueki to required prove it would sales, have made all RDI’s rather than the iii. Claimed Invention percent of those sales Stueki would have Jepson Because some claims are imposed made. The district court no such format, RDI asserts that the claimed inven requirement. biasing tion must limited to a spring, *13 court The district stated in published royalty rate on the that must be based Memorandum, was no evidence “[t]here price of four No springs. sale deter $40.00 the record which upon this court could base pream mination of the effect of the claim finding as to the percentage of the plain- ble made appears was and no basis tiff’s infringing sales which would have limiting record for claimed invention been by made defendant in the absence biasing spring. presumably aware of infringement”. 579 F.Supp. 218 10 that claim is drawn to a assem snubber It at 636. is clear that was Stueki is not in bly Jepson par format. The prove free to whatever percentage of RDI ties sell and customers assem buy snubber sales, 100%, up to for which it was able blies, merely biasing not RDI’s springs. submit evidence. One who fails to submit arguments against application support evidence in of a position cannot rate royalty selling price to the snubber appeal complain heard on that the trial are without Corp. assemblies merit. Bendix court failed to find facts States, upholding that (Ct.Cl.1982); 676 United F.2d 606 Corp. States, position. Leesona v. United (1979). Ct.Cl. 202 USPQ 220 424 attempt Stueki does before us to on rely testimony expert: this RDI’s Foreign iv. Sales Q. were not in if If RDI the market and The award royalties includes for able to sell percent Stueki were 1,671 earsets sold to foreign customers by 1980, by snubbers sold RDI through foreign installation in truck assemblies in percentage what would sales Stucki’s only countries. Claim 10 is drawn to the have increased? assembly,

snubber not to truck assemblies. infringement RDI admitted claims in all Approximately percent. A. 1,671 it suit. When made the in this earsets arguing In testimony estab- it infringed claim Whether country, lished that would have made it at least 68% those earsets were sold in the else U.S. sales, only of RDI’s Stueki misconstrues not irrelevant, where is therefore no error appellate our role as an court but the evi- in including among occurred those earsets question dence itself. The presupposes infringing products royalty on which have Stueki would made of RDI’s 100% due. sales and the answer indicates that v. Notice resulted in a would have 68% increase The cited testimony Stuekis sales. thus RDI’s mere us that assertion before provides support no whatever for Stucki’s receive did not actual notice of the testimony assertion that indicates January until 1975 does not establish as sales, finding made clearly erroneous the district court’s would have 68% of RDI’s Stueki injunction in a mis- that error If waived the view Stucki support and cannot statement con- remain resides in the district court’s that RDI would expectation taken record. cerning proof an absence of that is unfortunate. damages, responsible extent to record establishes the Nothing of that 35 points out U.S.C. correctly Stucki may have contributed which Stucki “adequate to provides damages § events, all delay before trial. In year five pro- infringement compensate” for proceed- conducted a full the district court only as the royalty vides for a reasonable at which was found ing damages, should Stucki damage floor beneath which a award damages in its fail- its actual difficulty not fall. Its here lies not to have established leaving the prove damages, ure to actual 284. No basis exists under 35 U.S.C. § court with no alternative but that district overturning the award of therefore for measuring damages what would light made in of those damages and interest royalty. been a reasonable proceedings. ii. Interest Proceedings Further Lastly, asserts that a 6% in of this case to the district Upon return represents

terest rate neither the value of court, motion for an assuming Stucki’s nor money adequately compensates Stucki upon, then been acted provides injunction for its loss. 35 U.S.C. § adequate award ... at an damages granted court “shall we it will be presume infringement for the ... compensate determining damages to be early date. as fixed together with interest and costs infringement occurring from awarded for ” “leaves the language the court.... That 28,1983 until the final the March awarding prejudg court some discretion in injunction, the rate of interest grant of the *14 Corp. ment interest”. General Motors damages equal is applicable to those 2058, 103 Corp., -- U.S. --, Devex S.Ct. Treasury bills. coupon yield issue U.S. Lam, (1983); 211 Inc. v. 76 L.Ed.2d (1982). concern 1961 U.S.C. Stucki’s § Corp., Johns-Manville the full amount ability for its to collect (Fed.Cir.1983). Though finally presentation awarded is a matter for inter higher could have selected a court course, court, may, which to the district rate, is est mere assertion 6% Stucki’s not without modify judgment its and is an abuse of too does not establish that low to enforce it. power discretion occurred here. stipulated in 1980 it tells us that Stucki Costs on injunction appeal, until decision delay are not al- lawyering The limit lines of on proceedings it learned in the dam- ways ap- clear. The zenith of zeal was of RDI had ages that the two shareholders of RDI’s if not exceeded those proached assets, its milking been and were RDI of or law. having no true basis in fact defenses injunction for an that it then filed motion RDI, sought appeal on Similarly, like which the district court had not acted on damages facts and a de a retrial of the filed, two appeal this that RDI’s testimony to misconstrued approach novo $2,200,000 received from RDI stockholders express find- court’s the face of the district $1,000,000, all from RDI’s in- gained record, that it had not ing, supported on litigation, that RDI’s fringement during the This court damages. its actual proved just from before the suit infringing sales parties leave the where content therefore to $19,000,000, $9,000,- with a was filed were provide finds them and to herewith that suffered actu- margin, that Stucki gross appeal. own costs on party pay each shall $7,000,000 than over of more damages al filing from years than five the more Decision while it waited for of trial completion having legal error been prejudicial No owner in plight decision. have influenced the shown to it cannot may sympathy; invoke this case hav- of RDI’s motion for JNOV of discretion. the denial finding invoke a of abuse correct, ing eminently been awarding $2,182,986 denial of damages and inter- est, final entered on March RDI’s motion for new trial representing no 28, 1983 is affirmed. discretion, abuse of having and no error Judge been shown in Broderick’s order AFFIRMED.

APPENDIX A THE IN UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA DYNAMICS, RAILROAD CIVIL ACTION v. INC. A. NO. 76-800 STUCKI COMPANY TO THE JURY

INTERROGATORIES We, case, captioned unanimously in the above find as follows: 1,2 questions Instructions: Answer and 3A. you plaintiff proved by convincing

1. Do find that the has clear and evidence 3,837,292 ground United States Patent No. is invalid on the of obviousness? X NO

YES_ you proved by preponderance 2. Do find that defendant has of the evidence filing the effective date of the invention claimed in United States 3,837,292 22,1969? August Patent No. X NO YES _ you plaintiff proved by convincing 3A. Do find that clear and evidence that 3,837,292 ground United Patent No. is invalid on the that the invention States known, public year prior claimed was or on use sale more than one patent application? filing the effective date X NO YES_ your “No”, question proceed Instructions: If question answer to 3A is 4 and following questions. “Yes”, your question answer If 3A is answer question following questions. 3B and *15 you 3B. Do proved by convincing find that defendant has clear and evidence that use or sale of the experimental claimed invention was an use?

YES_ NO_ you plaintiff proved by 4. Do find that convincing has clear and evidence that 3,837,292 United Patent ground States No. is invalid on the patent application amendment April required filed on supplemental oath or declaration in that the amendment contained matter originally substantially shown or described but not embraced in the statement originally presented application? invention or claim X NO

YES_(cid:127) you plaintiff 5. Do proved by convincing find that the has clear and evidence that 3,387,292 claiming? United Patent States No. is invalid for late NO X

YES_ you plaintiff proved by convincing 6. Do find that has clear and evidence that 3,837,292 ground United Patent invalid States No. on the application contemplated by failed to set forth the best mode the inventor carrying out his invention? NO X

YES_ you plaintiff proved by convincing Do 7. find that has clear and evidence that 3,837,292 Patent No. States are claims 7 and/or of United invalid on distinctly particularly point out and not they do claim ground subject applicant regards invention? matter which the as his X NO YES _ convincing you plaintiff proved by clear and evidence that Do find that has 8. 3,837,292 ground on the United Patent No. is invalid States description specification application provide such that does practice skilled in the art to the invention? would enable one NO X

YES _ prior questions that Patent you by any your answers to Instructions: If have found however, invalid, If, you 3,837,292 proceed have no further. No. then invalid, questions patent to be answer 9 and 10. not found the proved by preponderance the evidence that you plaintiff 9. find that Do 3,387,292? acquired intervening rights Patent No. it has under United States NO X

YES _ you proved by preponderance of the evidence 10. Do find that defendant has 3,827,292 infringement plaintiff’s of United Patent No. was willful? States NO X

YES_ (Signature Foreperson) Dated: June [10] 1980.

APPENDIX B

Interrogatories (MARK NO) OR YES NO YES the_article scope Is within the and con- prior tent of the art? impedance pass 2. Did the associated with the low filter phase loop the_Stereo locked charge discharge substantially equal Tuner time constants? *16 the_Stereo

3. Does Tuner have constant driving impedance? driving impedance,” used

4. Does the term “constant as pat- reissue No._(“the in U.S. Patent ent”) person ordinary of skill in the art how teach a impedance can have and still be much variation that “constant”? patent in some Was claim 1 of the reissue broadened 5. original patent? respect scope in the from its 6. Did the inventor listed in the reissue act with gross bad faith negligence or when he made the statements of to the fact United Patent States regarding Trademark operation Office of the _Stereo Tuner?

7. Does the_chip following have the ele- (which ments are set forth in each of asserted claims 3,4, 5):

A first filter means?

A second filter means? driving impedance?

A constant respect the_

8. claim With to asserted does article disclose: attaching a_lead a. “a of a method of _to a_” “obtaining b. access the_lead “screwing

c. free end of the_” into ordinary pertinent art that Is skill in the

9. the level of a_? ordinary Is the level skill pertinent in the art that knowledge the combination of skill and of a together expertise _ with the of a _engineer having a mechanical or elec- aptitude engineering degree? trical NICHOLS, one, Judge, Senior concur- this though but reflected glory Circ.uit in the ring result. case of this writer. concur in join is, I the result and impossible trouble it is to foresee captioned (c) portion opinion contingencies. Dam- parts all In future cases Much, all, ages. cited, that is perhaps opinion said in this will response be and the parts correct, prior opinion but bewill made that the words referred to are I serious qualms saying about it. The Future judges may dicta. this court attempt guidelines is to have comprehensive by our struck wisdom wish to follow all contingencies likely words, as to to arise may when a or they perceive they our are is asked or general allowed to return a problem confronted we did not fore- see, dealing verdict with the issue of obvious- and find our words an embarrassment. event, ness under 103 of Act. No pre- doubt In the latter it cannot now be § courts guide- profess district have a need these whether will themselves they dicted *17 it worthy statements, lines and would be a our enterprise reject bound or them as for one our able textbook nonbinding writers. I dicta. The future utility or qualms being have about attempted by subsequent a career of a dictum is wholly panel unpredictable, of three judges twelve-judge why judges and that is over court, given dicta, even as panel distinguished centuries have avoided or at least said relevant, i.e., suit was expo- the Stucki device in judicial were so.

they doing When to be decid- was sition relates to a concrete issue and Holland’s not. Stucki hydraulic ed, meaning however, add to record facts evidence, substantial offered words, and their safeguards against exist believed, and could which a dictum being read out of context. With did, doubtless view of so, up having not may this is and it well end not work in the manner Holland device did effect author never intend- judicial all there really RDI. This asserted ed. the Chief point. the obviousness As was on course, state always Of the court should to find- wanted us make a Judge says, RDI on, this rule the rule law it relies which contrary jury’s, our own to ing of cover than the before the may more case was no liberty not at to do. There we are forensically be nec- may court. Or dictum being inadequately as issue argu- essary, example, deal with as to erroneously instructed the obviousness imag- commonly urged, predicting ments so any Surely no federal point. issue or other it has inary horribles if the court what does it about court, may however deluded be must forgivable decided do. dicta Such areas, more law in some difficult carefully be and hedged. limited merely issue. reverse on this factual would I But if pronounce were to dissertation hand, I with subject on the at start would

the recent con- scholarly comprehensive banc, Circuit,

sideration en by the Seventh Sears, Co., v.

Roberts Roebuck & (1983). it I take this is the “[l]an- to in

guage appearing elsewhere” referred (B)(1). jurisdiction

Part own Our exclusive require of certain of cases does not classes Labrado, Robert L. JONES us to follow other opinions such cases Inc., Appellants, courts, require ig- but not that we it does my nore them either. consideration light I would topic, grope this difficult HARDY, Appellee. Alex might from wherever it emanate. Appeal No. 83-900. case The obviousness issue the instant of Appeals, Court United States is, however, readily and it simple, can Federal Circuit. committed no judge shown the district more ef- reversible error. Railroads needed 8, 1984. Feb. to deal car roll and fective snubbers increasing in view of and load pitch, speeds deteriorating

weights, and roadbeds. Our snubbers perceived prior

inventor art

needlessly the entire attempted control range weight car from full

broad art worked all

empty. prior snubbers but as the

right, were not efficient He a snubber

Stucki invention. contrived the car was inoperative

that was only car was

empty engaged when the al- Dynamics loaded. Railroad

partially however, prior unpa-

leged, art but job in device did the same

tented Holland way. too Allegedly the same

almost light at loads. The

went out of contact car Holland differencé between the

greatest patentably snubbers

and Stucki

Case Details

Case Name: Railroad Dynamics, Inc., Appellant/cross-Appellee v. A. Stucki Company, Appellee/cross-Appellant
Court Name: Court of Appeals for the Federal Circuit
Date Published: Jan 25, 1984
Citation: 727 F.2d 1506
Docket Number: Appeal 83-951/961
Court Abbreviation: Fed. Cir.
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