Lead Opinion
PROST, Chief Judge, DYK and WALLACH, Circuit Judges, concur in the denial of the petition for rehearing en banc.
O’MALLEY, Circuit Judge, with whom REYNA, Circuit Judge, joins, dissents from the denial of the petition for rehearing en banc.
ORDER
Cross-Appellant The Dow Chemical Company filed a combined petition for rehearing and rehearing en banc. A response to the petition was invited by the court and filed by the Appellants NOVA Chemicals Corporation (Canada) and NOVA Chemicals Inc. (Delaware). The petition and response were referred to the panel that heard the appeal, and thereafter were referred to the circuit judges who are in regular active service. A poll was requested, taken, and failed.
Upon consideration thereof,
It Is ORDERED That:
The petition for panel rehearing is denied.
The petition for rehearing en banc is denied.
The mandate of the court will be issued on December 28, 2015.
Concurrence Opinion
concurring in the denial of the petition for rehearing en banc.
While I concur that en banc action is not warranted in this case, I write separately to make clear that the panel’s opinion does not change the law of indefiniteness in three key respects. First, despite Nova’s claim to the contrary, the panel opinion does not and cannot stand for the proposition that extrinsic evidence cannot be relied upon to determine whether, in light of the state of knowledge of the skilled artisan at the time, a patent’s specification is sufficiently definite. Second, despite Dow’s contention that it does, the panel’s opinion does not alter Supreme Court and our own precedent that fact findings made incident to the ultimate legal conclusion of indefiniteness receive deference on appeal. Finally, the panel’s opinion does not alter Supreme Court and our own precedent that the burden of proving indefiniteness, as with any allegation of invalidity, remains on the party challenging validity who must establish it by clear and convincing evidence.
I.
There is no dispute that, under controlling precedent, the ultimate question of
It would be incorrect to argue that the Dow decision changed this or that the intrinsic record alone must disclose which measurement method to use. Nova'defends the decision in its favor by arguing that the decision correctly determined that extrinsic evidence cannot be relied upon to determine which measurement method to use. Defs.-Appellants’ Resp. to Dow Chem. Co.’s Combined Pet. For Reh’g & Hr’g En Banc 5. We do not view the Dow decision as standing for such a sweeping change to our law or as limiting extrinsic evidence in this manner. Appreciating what a skilled artisan knew at the time of the invention is pertinent to whether the claims are reasonably clear in their meaning and scope. A question about the state of the knowledge of a skilled artisan is a question of fact, likely necessitating extrinsic evidence to establish. Dow itself recognizes that appreciation of the knowledge of skilled artisans at the time of the invention necessarily arises when trying to discern whether the claims are reasonably clear in their meaning and scope. Dow Chem. Co. v. Nova Chems. Corp.,
Dow’s primary claim in its petition for en banc review is that the panel applied a
During prosecution of the related '847 and '539 patents, which with respect to molecular weight have identical specifications, examiners twice rejected the term “molecular weight” as indefinite for failing to disclose which measure of molecular weight to use (Mp, Mm or M w). And the patentee in one instance stated that it was M w and in the other stated it was M p. We find no clear error in the district court’s fact finding that one of the statements contained a scientifically erroneous claim. We hold that claim 1 is invalid for indefiniteness by clear and convincing evidence because read in light of the specification and the prosecution history, the patentee has failed to inform with reasonable certainty those skilled in the art about the scope of the invention. On this record, there is not reasonable certainty that molecular weight should be measured using M p. This is the legal question — and on this question — we reverse the district court.
We have consistently permitted courts to submit legal questions which contain underlying factual issues, like obviousness, enablement, or indefiniteness, to the jury. See, e.g., BJ Servs. Co. v. Halliburton Energy Servs., Inc.,
Precedent likewise requires that the burden of proving indefiniteness remains on the party challenging validity and that they must establish it by clear and convincing evidence. This burden — of establishing invalidity of issued patent claims— has always been on the party challenging validity. Microsoft Corp. v. i4i Ltd., P’ship,
For the same reasons that Dow cannot alter our review of subsidiary fact findings for clear error, Dow cannot and does not change settled law on the burden of proving indefiniteness. The burden of proving indefiniteness, which may include proving what one of skill .in the art would know how to do or not know -how to do, remains at all times on the party challenging the validity of the patent. In many different arts, measurement of some variable may be required (value, temperature, concentration, depth, dispersion, etc.). The burden of proving indefiniteness includes proving not only that multiple measurement techniques exist, but that one of skill in the art would not know how to choose among them. This knowledge of the skilled artisan is part of the proof necessary for indefiniteness and the burden of proving it is on the challenger of validity. No panel of our court could overrule the Supreme Court or this court’s prior precedent on where this burden of proof lies, and the Dow decision should not be read to change this burden of proof.
Because I do not believe that Dow could have changed or did change the law of indefiniteness, I concur in the denial of en banc. No doubt this case was confused by Dow’s reliance on the particular testimony of Dow’s own witness who created his own measurement technique rather than simply relying on the state of the knowledge in the art about such measurement techniques.
m.
This is not to say, however, that I agree with the decision in Dow. It is to say only that the questions raised by the. panel’s decision appear to be case-specific. It may be that the panel erred. The Dow panel appears to have decided the case on a basis not only not raised by Nova (whether one of skill in the art would know how to select from among multiple measurement techniques to determine maximum slope), but in fact expressly disavowed by Nova.
The question of whether one of skill in the art would know which measurement method to use to determine the maximum slope of a curve is unquestionably a factual issue based upon extrinsic evidence. While I may disagree and even find troubling the panel’s resolution of this case and in particular its treatment of this factual issue, that is not a sufficient reason for en banc review. So long as the Dow opinion is not viewed as having changed the law of indefiniteness regarding underlying fact findings, the relevance of extrinsic evidence to the inquiry, or the deference to be given to fact findings, then I concur in the denial of en banc.
Dissenting Opinion
dissenting in the denial of the petition for rehearing en banc.
I agree with Judge Moore that both The Dow Chemical Company (“Dow”) and NOVA Chemicals Corporation (“NOVA”) mischaracterize the panel’s decision in this matter. The panel did not and could not effect sweeping changes in the law of indefiniteness. I write separately, however, because I do not believe the panel should have discussed the law of indefiniteness at all; the panel simply did not have jurisdiction to render the judgment it did.
The panel could not reopen a validity determination that had been the subject of a final judgment that was affirmed on appeal, and as to which the Supreme Court declined review. Even if the Supreme Court’s decision in Nautilus, Inc. v. Biosig Instruments, Inc., — U.S. -,
In Robert Bosch, LLC v. Pylon Mfg. Corp.,
This decision authorized, nay encouraged, parties to engage in piecemeal appeals in patent cases and encouraged district judges to authorize the same. The district judge in this ease, at the invitation of Appellant NOVA, accepted that invitation. Because the only procedural vehicle that existed for entry of a final judgment on the liability determination in this case was Rule 54(b) of the Federal Rules of Civil Procedure, that is the vehicle the trial court necessarily employed. It is also the vehicle we endorsed when the first panel to hear an appeal in this case accepted the appeal and rendered judgment on it.
Having rewritten the rules of appellate finality in Bosch, the current panel now violates the Rules of Civil Procedure by ignoring the implications of the trial court’s Rule 54(b) final judgment in this case and our affirmance of it. The panel also ignores, moreover, the perhaps even more basic rule that an appellate court may not address issues not raised in the judgment on appeal. See Fed. R.App. P. 4(a)(1)(B) (“The notice of appeal may be filed by any party within 60 days after entry of the judgment or order appealed from.... ” (emphasis added)); accord Singleton v. Wulff,
DISCUSSION
Although the panel says that the judgment now on appeal came after a “remand” from this court, that is inaccurate. We did not remand anything in our earlier mandate; there was nothing to remand. The new appeal arises from a completely separate judgment than the original appeal.
Prior to the first appeal, a jury returned a verdict on validity, infringement, and damages, all in Dow’s favor. The trial court then conducted a hearing regarding whether the relief afforded Dow should include not just the damages awarded for past infringement, but a permanent injunction as well. The trial court declined to issue a permanent injunction on July 30, 2010 because, among other reasons, NOVA convinced it that a running royalty until the soon-to-occur expiration of the patent would be adequate to provide Dow the full scope of the relief to which it was entitled. Dow Chem. Co. v. Nova Chems. Corp., 1:05-cv-737,
While we were not required to accept review of the trial court’s Rule 54(b) judgment on these issues — indeed, we arguably should not have done so even despite Bosch given the pending antitrust counterclaims — we did so. And we affirmed the lower court verdict and findings across the
While the trial court did proceed to calculate the measure of ongoing royalties to be awarded in lieu of an injunction once the first appeal was completed, that was not by virtue of a remand on that issue. The district court at all times retained jurisdiction on those issues that were not included in the Rule 54(b) final judgment, and our affirmance ended our consideration of all issues that were included in that final judgment. That is how the Rule operates. The trial court merely lifted its own stay on the accounting of post-verdict infringement damages — one imposed for the parties convenience — and on the other claims that actually did remain — willfulness and the antitrust counterclaim.
The record, thus, establishes that Dow was entitled to relief for NOVA’s continued infringement of its patent as of our affirmance of the Rule 54(b) final judgment. Wflien the trial court denied Dow’s request for a permanent injunction, it made clear that a remaining royalty for the life of the patent would be awarded, as it should have. See Finjan, Inc. v. Secure Computing Corp.,
NOVA acknowledged both the ministerial nature of the calculation remaining before the district court and the final nature of the earlier liability determinations when, in its brief supporting its position on supplemental damages, it asserted that the only thing left for the district court to do on the damages question was to undertake an “accounting” regarding the dollar amount due to Dow. Dow Chem. Co. v. Nova Chems. Corp., 1:05-cv-737,
It was not until that very narrow appeal from that very narrow judgment reached us — long after the patent had expired and the damages.period had closed — that the Supreme Court issued its decision in Nautilus. While the panel .reaches to apply that later-decided case to the earlier final judgment on validity here, Rule 54(b) prohibits it from doing so. The only thing we should have reviewed on appeal is the measure of royalty owed post-verdict and pre-expiration of the patent that is memorialized in the judgment from which this appeal was taken. See Dow Chem. Co. v. Nova Chems. Corp., 1:05-cv-737 (D.Del. Apr. 23, 2014), ECF No. 764. There should be no question regarding either the validity of Dow’s patent or Dow’s entitlement to damages for the short interim period between the judgment and the expiration of the patent; those had already been established and affirmed. Accord Bosch,
To justify reaching the indefiniteness issue anew, the panel describes why it believes it is not limited by either the law of the case doctrine or concepts of issue preclusion. But that discussion is an unnecessary detour. First, the law of the case doctrine does not apply when there already has been a Rule 54(b) final judgment on an issue. The “law of the case [doctrine] does not involve preclusion after final judgment, but rather it regulates judicial affairs before final judgment.” Hughes Aircraft Co. v. United States,
And, for issue preclusion to apply, the issue must actually be raised in the judgment we are reviewing on appeal. Accord Wright & Miller § 4405 (“Ordinarily both issue preclusion and claim preclusion are enforced by awaiting a second action in which they are pleaded and proved by the party asserting them.”). In this case, the issue of indefiniteness was not pending before the district court in this claim for supplemental damages; indefiniteness had already been subject to a Rule 54(b) judgment that we affirmed on appeal. Compare Dow Chem. Co. v. Nova Chems. Corp., 1:05-cv-737 (D.Del. Aug. 26, 2010), ECF No. 615 (entering final judgment on “validity, infringement and damages”), with Dow Chem. Co. v. Nova Chems.
To be sure, I disagreed with our conclusion in Bosch that piecemeal appeals are appropriate in patent cases. I also believe this court is, at times, too quick to accept certification of judgments under Rule 54(b) from district courts where aspects of the underlying action are unresolved. But my view of the law and best practices on these issues is not the governing one in this circuit. Having authorized appeals from seriatim final judgments and encouraged district courts to employ Rule 54(b) to effectuate those appeals, we should, at minimum, adhere to Rule 54(b) and its dictates.
For these reasons, while I agree with Judge Moore’s concurrence to the extent issues of indefiniteness are in play, I must dissent from the denial of en banc in this matter.
Notes
. It is odd that we would characterize a jury trial on the full range of infringement damages as a mere accounting, but treat the calculation the district court did here as a determination that justifies the reopening of all issues subject to an earlier final judgment.
Concurrence Opinion
concurring in the denial of the petition for rehearing en banc.
We agree with Judge Moore that clear and convincing evidence is the standard for patent invalidation; that the burden to establish indefiniteness rests with the accused infringer; that findings of fact by juries are entitled to deference; and that knowledge of someone skilled in the art may be pertinent to the indefiniteness question. In particular, we agree that if a skilled person would choose an established method of measurement, that may be sufficient to defeat a claim of indefiniteness, even if that method is not set forth in haec verba in the patent itself.
The opinion in this case does not depart from, and in fact directly applies, those principles.
