IP UPDATE

What we have here is a failure to communicate: Expert must map all claim limitations to the accused infringement

by Benjamin Ediger, Ph.D. | Oct 2, 2025 | Patents

The US Court of Appeals for the Federal Circuit reversed jury verdicts of infringement, finding that they were not supported by substantial evidence because of deficiencies in the patent owner’s expert testimony. Finesse Wireless LLC v. AT&T Mobility LLC, Case No. 2025 WL 2713518 (Fed. Cir. Sept. 24, 2025) (Moore, C.J.; Linn, Cunningham, JJ.)

AT&T Mobility was accused of infringing two patents owned by Finesse Wireless, both directed to methods for mitigating intermodulation product interference in radios. The accused technology involved Nokia radios implementing passive intermodulation (PIM) cancellation. Nokia intervened in the case. A jury found all asserted claims valid and infringed, awarding Finesse more than $166 million in lump sum damages. AT&T and Nokia moved for judgment as a matter of law (JMOL) on both noninfringement and the damages award, and alternatively sought a new trial. The district court denied the motions. AT&T and Nokia appealed.

The Federal Circuit reversed the district court’s denial of JMOL on noninfringement and vacated the damages award, concluding that the jury verdicts were not supported by substantial evidence. The Court’s decision turned largely on shortcomings in the testimony of Finesse’s infringement expert, whose analysis was the sole basis for Finesse’s infringement case.

For the first patent, the Federal Circuit found that Finesse’s expert failed to demonstrate that Nokia’s PIM cancellation feature received all input signals required by the asserted claims. The expert relied on a Nokia diagram but misinterpreted it by mistakenly identifying a signal generated by the radio as one of the required input signals. Although the expert was made aware of the error, he did not clearly correct his position or identify alternative signals that satisfied the claim limitation. Finesse argued that the expert had corrected a “misimpression,” but the Court disagreed, finding that the expert failed to provide a clear and consistent explanation reconciling his contradictory positions.

The asserted claims of the second patent required seven multiplications involving three signals. Finesse’s expert relied solely on a Nokia document that listed only three multiplications yet equated them to the seven required by the claims. The Federal Circuit found this testimony inadequate, noting that the expert failed to explain how the three multiplications mapped to the seven required. On appeal, Finesse argued that the document actually evidenced 10 multiplications, but the Court was unpersuaded. Neither Finesse nor its expert explained how the 10 multiplications corresponded to the seven required multiplications, nor did they reconcile this new position with the expert’s prior reliance on only three multiplications.

Because Finesse failed to present expert testimony that adequately mapped each claim limitation to the accused method, the Federal Circuit reversed the jury’s infringement findings for both patents and vacated the damages award.

Practice note: The decision underscores the importance of detailed and consistent expert analysis in patent infringement cases, particularly when expert testimony is the sole basis for proving infringement.

Bank on it: Likelihood of confusion analysis requires factual consistency when evaluating DuPont factors

by Taylor MacDonald | Oct 2, 2025 | Trademarks

The US Court of Appeals for the Federal Circuit reversed in part a decision by the Trademark Trial & Appeal Board and remanded for new analysis of two factors under the Dupont likelihood of confusion test. The Court emphasized that the factual determination in factor two (similarity of the parties’ goods or services) should remain consistent through the analyses for factors one and six. Apex Bank v. CC Serve Corp., Case No. 23-2143 (Fed. Cir. Sept. 25, 2025) (Moore, Hughes, Cunningham, JJ.)

CC Serve has held a registration for the word mark ASPIRE in connection with credit card services since 1998. In 2019, Apex Bank, a Tennessee-based banking chain, filed intent-to-use applications at the US Patent & Trademark Office (PTO) for marks incorporating ASPIRE BANK for use in “banking and financing services.” CC Serve, which partners with banks to issue and service credit cards, filed a letter of protest during Apex’s trademark prosecution. Despite CC Serve’s objections, the PTO published Apex’s marks in December 2019. CC Serve then formally opposed the marks, and the Board sustained the opposition, finding a likelihood of consumer confusion. Apex appealed.

The Federal Circuit reviewed the Board’s findings under the DuPont framework, which assesses likelihood of confusion based on multiple factors. Apex challenged the Board’s analysis of three specific factors:

Factor two: Similarity of the parties’ goods/services
Factor six: Strength of the prior mark in the marketplace
Factor one: Similarity of the marks themselves

The Federal Circuit upheld the Board’s finding under factor two, agreeing that “credit card services” and “banking/financing services” are highly similar based on their definitions and market overlap.

However, the Federal Circuit found fault with the Board’s analysis under factor six, which evaluates third-party use of similar marks to determine the strength of the contested mark. Apex submitted many examples of ASPIRE marks used in both the credit card and broader financial services industries. The Board, however, narrowed its focus to only those marks used in credit card services, excluding broader banking and financial services. The Federal Circuit concluded that this was inconsistent with the Board’s finding under factor two regarding the similarity of the parties’ goods and services. The Court instructed that on remand, the Board should consider third-party ASPIRE marks across both industries.

The Federal Circuit also directed the Board to revisit factor one, which assesses the similarity of the marks in light of the strength of the prior mark. Whether the strength of CC Serve’s mark is diminished when viewed in the broader financial services context could affect the “overall commercial impression” of the marks and the likelihood of confusion.

The Federal Circuit emphasized that factual determinations, particularly regarding the similarity of goods and services, must be applied consistently across the DuPont factors. The Court therefore remanded the case to the Board for reconsideration of factors one and six considering this guidance.

Functional relationship recitation can’t overcome anticipating prior art

by Tim Dunker | Oct 2, 2025 | Patents

Underscoring functional relationships as limitations in patent claims and the importance of claim construction, the US Court of Appeals for the Federal Circuit affirmed in part, vacated in part, and remanded a Patent Trial & Appeal Board decision that found claims of a patent unpatentable notwithstanding a functional relationship recitation. Bayer Pharma Aktiengesellschaft v. Mylan Pharmaceuticals Inc., et al., Case No. 23-2434 (Fed. Cir. Sept. 23, 2025) (Moore, Cunningham, Scarsi, JJ.)

Bayer owns a patent that describes the results of a phase III clinical trial that evaluated the efficacy and safety of administering rivaroxaban with and without aspirin for the prevention of major adverse cardiac events. Certain claims require “administering to the human patient rivaroxaban and aspirin in amounts that are clinically proven effective in reducing the risk of myocardial infarction, stroke or cardiovascular death[,] wherein rivaroxaban is administered in an amount of 2.5 mg twice daily and aspirin is administered in an amount of 75 – 100 mg daily.” Other claims are directed to a once daily administration of “a first product comprising rivaroxaban and aspirin” and “a second product comprising rivaroxaban.”

Mylan challenged the patent in inter partes review (IPR), arguing that certain claims were anticipated by the Foley reference and others were obvious over Foley alone or in combination with Plosker. The Board agreed, finding all challenged claims unpatentable. Bayer appealed.

Bayer argued that the Board erred in:

Construing “clinically proven effective” as non-limiting and finding, in the alternative, that it was inherently anticipated
Construing “first product comprising rivaroxaban and aspirin” to encompass administration of rivaroxaban and aspirin as separate dosage forms
Failing to articulate why a skilled artisan would have combined Foley and Plosker with a reasonable expectation of success
Failing to analyze whether clinical proof of efficacy was an unexpected result

The Federal Circuit declined to resolve whether “clinically proven effective” is a limiting claim element, concluding that even if it were, it would not render the claims patentable. The Court explained that the phrase does not create a “new and unobvious functional relationship” with the known method of treatment. Analogizing to a hypothetical claim for a known drug method modified by a post-dated accolade (e.g., “Best Drug of 2026”), the Court emphasized that requiring clinical proof of efficacy does not transform the underlying treatment process.

Bayer relied on the Federal Circuit’s 2019 decision in Allergan Sales v. Sandoz, in which the Court found “wherein” clauses specifying safety and efficacy to be material to patentability. The Federal Circuit distinguished Allergan, noting that the claims there were written in open format and the “wherein” clauses modified the overall composition. In contrast, the claims of Bayer’s patent already specified exact dosages, and “clinically proven effective” did not modify any particular component. The Court therefore affirmed the Board’s finding of unpatentability for these claims.

However, the Federal Circuit agreed with Bayer on the construction of claims requiring a “first product comprising rivaroxaban and aspirin.” Bayer argued that this language required a single dosage [...]

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The smoke has cleared – and so has your invalidity defense

by Jodi Benassi | Sep 25, 2025 | America Invents Act, Patents

The US District Court for the Northern District of Iowa issued an instructive decision clarifying the scope of statutory estoppel under the Leahy-Smith America Invents Act (AIA) following post-grant review (PGR) proceedings before the Patent Trial & Appeal Board. Intirion Corp. v. College Products, Inc., Case No. 23-cv-4023-CJW-KEM (N.D. Iowa Sept. 16, 2025) (Williams, J.)

Intirion brought a patent infringement suit against College Products, which responded by petitioning the Board for PGR, challenging the patents based on obviousness and indefiniteness. While the PGR was pending, the district court proceeded with claim construction and initially found the terms “level of smoke,” “amount of smoke,” and “dangerous condition” indefinite. Intirion moved for reconsideration, and College Products filed a motion for partial summary judgment asserting invalidity. Intirion also sought a stay of the litigation pending the PGR outcome, which the court granted.

The Board instituted review of all claims. Initially, it found that neither party had requested express construction of any terms and adopted Intirion’s interpretation that “level of smoke” and “amount of smoke” meant “merely detecting smoke,” based on Intirion’s representations in the district court. In its final written decision (FWD), the Board acknowledged the district court’s indefiniteness findings but ultimately adopted the plain and ordinary meaning of the terms, concluding that a person of ordinary skill in the art could determine appropriate thresholds using known methods. Expert testimony persuaded the Board that defining the terms by their function was sufficiently definite under patent law.

After the Board upheld the claims, the district court found that College Products was estopped under 35 U.S.C. §325(e)(2) from asserting any invalidity grounds (including indefiniteness and obviousness) that were or reasonably could have been raised during the PGR. The district court explained that the AIA established a streamlined system allowing third parties to challenge the patentability of issued claims before the Board as a quicker and more cost-effective alternative to litigation. This structure is specifically designed to prevent challengers from getting multiple bites at the apple by raising the same or similar arguments in subsequent court proceedings.

College Products argued that estoppel should not apply because it filed its motion for partial summary judgment before the Board issued its FWD. The district court rejected this argument, explaining that the statutory language provides no exception based on timing and imposes a clear bar once the Board has issued a FWD. The district court also found that College Products’ position was inconsistent with applicable case law and noted that it failed to cite any contrary authority.

The district court further explained that it had intentionally deferred ruling on College Products’ motion for partial summary judgment of invalidity pending the outcome of the PGR proceedings. Once the PTAB issued its FWDs, College Products was estopped from further challenging the validity of the patents, including through its pending summary judgment motion, because it could have raised any such indefiniteness arguments during the PGR process.

Practice note: Unlike inter partes review (IPR), during PGR a petitioner can challenge patentability on grounds [...]

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DMCA safe harbor: Prelude to a Supreme Court encore?

by Jodi Benassi | Sep 18, 2025 | Copyrights

The US Court of Appeals for the Second Circuit granted in part and denied in part Capitol Records’ petition for reconsideration of the Court’s January 13, 2025, decision in Capitol Records v. Vimeo. In that ruling, the Court determined that Capitol Records had waived the argument that Vimeo’s encouragement of users to make infringing lip-dub videos may constitute a form of right and ability to control infringement – an apparent forfeiture of the safe harbor provided by the Digital Millennium Copyright Act (DMCA). In its reconsideration decision, the Court removed a footnote regarding whether the “right and ability to control” argument was preserved for Supreme Court review. Capitol Records, LLC, et al. v. Vimeo, Inc., et al., Case Nos. 21-2949; -2974 (2d Cir. Sept. 9, 2025) (Leval, Parker, Merriam JJ.)

Capitol Records filed a petition for reconsideration of the Second Circuit’s decision, which found that Capitol had waived its argument under Metro-Goldwyn-Mayer Studios v. Grokster. A central issue was application of the Grokster precedent, which addressed inducement of copyright infringement. Capitol Records argued that Vimeo’s encouragement of users to create infringing lip-dub videos constituted a “right and ability to control” infringement, potentially forfeiting the DMCA safe harbor protection.

In its earlier ruling, the Second Circuit found that Capitol Records had waived this argument by not adequately presenting it in the appellate brief, despite having discussed it in the fact section. The Court emphasized that the argument was not developed in the argument section of the brief and, in a footnote, noted that Capitol Records had acknowledged that the argument was foreclosed by a prior ruling. Capitol Records argued that its waiver was not of the Grokster-based theory of forfeiture of the safe harbor, but rather of a claim under Grokster for induced infringement. The Court was not persuaded, noting that Capitol Records’ opening brief made no distinction between a Grokster-based inducement claim and a Grokster-based theory for forfeiting DMCA safe harbor protection. As a result, the Court rejected Capitol Records’ argument that the Grokster-based theory had not been waived.

In its most recent ruling, the Second Circuit granted Capitol’s petition to remove language from a footnote in the Court’s prior ruling that suggested Capitol’s Grokster inducement theory, based on the “right and ability to control,” was barred from Supreme Court review.

Practice note: The Second Circuit’s decision to partially grant and deny the petition for reconsideration clarifies the procedural requirements for preserving arguments on appeal and reinforces the complexities of applying traditional copyright principles to digital platforms. As the case progresses, stakeholders in the music and technology industries should monitor developments and implications for the DMCA and copyright enforcement.