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Exploring the latest in intellectual property law
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Exploring the latest in intellectual property law
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Tree-mendous award: Damages expert royalty opinions are lit

by | Mar 5, 2026 |

The US Court of Appeals for the Federal Circuit affirmed a damages verdict amounting to tens of millions of dollars. The Court found that the patentee’s damages expert correctly apportioned value to the patented feature and rejected challenges to her methodology. Willis Electric Co., Ltd. v. Polygroup Ltd., Case No. 24-2118 (Fed. Cir. Feb. 17, 2026) (Moore, Stark, Oetken, JJ.)

Willis sued Polygroup for infringing its patent related to pre-lit artificial trees with decorative lighting. In response, Polygroup filed multiple inter partes review (IPR) petitions challenging the asserted claims. Following extensive IPR proceedings, only a dependent claim that required coaxial trunk connectors remained for trial.

A jury found the claim infringed and not obvious, and awarded about $42.5 million in damages, equating to a $4-per-tree royalty. Polygroup moved for judgment as a matter of law of obviousness or, alternatively, for a new trial on damages. The district court denied both motions. Polygroup appealed.

Effect of prior IPR ruling

Polygroup argued that because the independent claim from which the asserted claim depended was held unpatentable, damages should be limited to only the incremental value of the coaxial connectors recited in the asserted dependent claim. The Federal Circuit rejected that argument, explaining that the IPR applied the broadest reasonable interpretation standard, while the district court construed the independent claim under the Phillips standard. Under the district court’s construction, the independent claim required forming simultaneous mechanical and electrical connections regardless of rotational orientation, a feature that was not required under the IPR construction. Because the independent claim had not been held unpatentable under the district court’s construction, the Federal Circuit reasoned that the IPR ruling did not preclude Willis from relying on that one-step functionality in calculating the value attributable to the coaxial connectors recited in the dependent claim.

The Federal Circuit emphasized that what value was attributable to the claimed coaxial connectors was a question of fact for the jury. Substantial evidence supported the jury’s finding that the value included rotationally independent, simultaneous connection functionality, not merely the physical presence of coaxial connectors.

Rule 702 and damages methodology

Willis’ damages expert presented two independent apportionment analyses.

Under an income-based approach, the expert compared profit margins for Willis’ “One Plug” trees and Polygroup’s Quick Set trees against comparable noninfringing trees to derive a royalty range. Under a market-based approach, she analyzed several license agreements to establish a reasonable royalty range, which she combined with her income approach to arrive at an expanded reasonable royalty range. She then applied the Georgia-Pacific factors to select a $5-per-tree royalty, resulting in a jury award of $4 per tree.

Polygroup argued that the expert failed to adequately apportion value and relied on non-comparable licenses and improper averaging methods. The Federal Circuit disagreed, emphasizing the district court’s gatekeeping role under Federal Rule of Evidence 702 while reinforcing the distinction between admissibility and weight.

The Federal Circuit explained that reasonable royalty determinations inherently involve approximation and uncertainty. Where an expert’s methodology is grounded in record evidence, including internal sales [...]

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Did you account for the entire corresponding disclosed structure?

by | Mar 5, 2026 |

The US Court of Appeals for the Federal Circuit affirmed the district court’s grant of summary judgment of noninfringement of a means-plus-function claim element, emphasizing that a patentee must compare the accused product to the entire disclosed structure, not just a selected subset. Genuine Enabling Tech. v. Sony Group Corp., et al., Case No. 24-1686 (Fed. Cir. Feb. 19, 2026) (Dyk, Taranto, Chen, JJ.)

Genuine Enabling Technology (GET) sued Sony for patent infringement, alleging that Sony’s PlayStation 3 and 4 infringed its patent related to synchronizing data streams from multiple input devices. The district court ruled in favor of Sony, granting summary judgment of noninfringement and excluding the infringement conclusion of GET’s expert. GET appealed.

The Federal Circuit affirmed. The parties agreed that the term “encoding means” for synchronizing two separate streams, present in each asserted claim, was a means-plus-function limitation under 35 U.S.C. § 112(f). Neither party disputed that the corresponding structure consisted of the entirety of a logic block disclosed in the patent specification.

GET’s expert focused solely on the bit-rate clock appearing in the logic block, neglecting most of the other disclosed components, and did not provide an explanation for these omissions in his “way” analysis. The Federal Circuit explained that this approach failed to satisfy the function-way-result test for structural equivalence, which requires demonstrating that the accused product is equivalent to the disclosed structure by showing that both the accused and corresponding disclosed structures perform the identical function in substantially the same way to achieve substantially the same result. The Court clarified that while a component-by-component examination is not necessary, the analysis must consider all components of the identified structure or justify any omissions. GET’s expert did not meet the burden of describing the “way” the “encoding means” structure in the patent performed its function.

GET’s expert attempted to simplify structural equivalence to “anything that synchronizes to a clock.” The Federal Circuit explained that this approach improperly reduced the function-way-result test to function-result alone, contradicting the patent’s specific synchronization scheme. Because of the lack of analytical support for the expert’s structural-equivalence conclusion, the Federal Circuit upheld the district court’s exclusion of the expert’s opinion.

Since GET did not seek discovery of the accused product’s Bluetooth schematics until the end of fact discovery, GET’s expert never examined the internal design of the accused Bluetooth modules. Instead, his infringement theory relied solely on assumptions about generic Bluetooth behavior, which the Federal Circuit found to be conclusory, legally insufficient, and inconsistent with the patent’s detailed circuitry disclosed in the specification. The Federal Circuit affirmed the district court’s partial exclusion of GET’s expert’s testimony.

Practice note: When litigating means-plus-function claims under 35 U.S.C. § 112(f), an opining expert must address the entirety of the corresponding structure disclosed in the specification. Selectively focusing on only one or two elements without explaining omissions can be fatal.



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Manufactured host cells markedly different from naturally occurring cells may be patent eligible

by | Mar 5, 2026 | ,

Addressing subject matter eligibility in the life sciences context, the US Court of Appeals for the Federal Circuit reversed a district court’s summary judgment ruling that certain claims directed to genetically engineered host cells were patent ineligible as directed to a natural phenomenon. The Federal Circuit found that the claimed cells contained recombinant nucleic acid molecules that were markedly different from anything occurring in nature and therefore were patent eligible under 35 U.S.C. § 101. REGENXBIO Inc. v. Sarepta Therapeutics, Inc., Case No. 24-1408 (Fed. Cir. Feb. 20, 2026) (Dyk, Hughes, Stoll, JJ.)

REGENXBIO owns a patent directed to genetically engineered host cells containing a recombinant nucleic acid molecule (adeno-associated virus (AAV) rh.10 sequences). These host cells are human made and do not exist in nature. The recombinant nucleic acid molecule is created by chemically splicing together nucleic acid sequences from two different organisms. REGENXBIO sued Sarepta, alleging infringement of its patent. Both parties moved for summary judgment on whether the asserted claims were patent eligible under Section 101. The parties did not assert that claims were ineligible as an abstract idea but rather debated whether the claims disclosed natural products.

The district court analogized the claims to those considered in the 1949 Supreme Court decision in Funk Brothers Seed v. Kalo Inoculant, where two strains of bacteria from two different organisms were merely put together. The district court concluded that the invention, “taking ‘two sequences from two different organisms and put[ting] them together,’” amounted to merely packaging natural products together and found the asserted claims ineligible. REGENXBIO appealed.

The Federal Circuit reversed. Relying on the Supreme Court’s decisions in Diamond v. Chakrabarty (1980) and Association for Molecular Pathology v. Myriad Genetics (2013), the Federal Circuit explained that the relevant inquiry was whether the claimed composition as a whole possessed “markedly different characteristics” from what occurs in nature. The Court emphasized that the claimed recombinant nucleic acid molecules were not naturally occurring and cannot form in nature without human intervention. The claims required a recombinant molecule encoding both an AAV vp1 capsid protein and a heterologous sequence, created by combining genetic material from different sources.

The Federal Circuit explained that like the engineered bacterium in Chakrabarty, the claimed host cells here were “not nature’s handiwork” but a product of human ingenuity. And like the cDNA claims upheld in Myriad, the recombinant molecules represented something “distinct from” naturally occurring DNA. In contrast to Funk Brothers, where the bacteria performed exactly as they did in nature and were merely packaged together, the claimed host cells here contained a newly engineered molecule that did not exist in nature and that enabled gene therapy applications.

The Federal Circuit also noted that the claimed compositions had the potential for significant utility, specifically in gene delivery and gene therapy, further distinguishing them from the ineligible claims in Funk Brothers. Although the claims did not expressly recite a specific therapeutic use, the Court explained that potential utility may be considered in evaluating whether a composition is markedly [...]

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USPTO Director IPR institution discretion survives APA challenge

by | Feb 26, 2026 |

The US Court of Appeals for the Federal Circuit concluded that the United States Patent and Trademark Office’s (USPTO) framework for discretionary denials of inter partes review (IPR) is a general statement of policy, not a substantive rule, and therefore is exempt from the Administrative Procedure Act’s notice‑and‑comment requirements.

The USPTO Director issued a trio of related instructions to the Patent Trial & Appeal Board for its exercise of delegated non-institution authority, addressing the common situation where the IPR petitioner and the patent owner are already involved in a district court litigation over the patent at issue. Two of the instructions were in the form of precedential Board decisions, which set forth six exclusive factors, weighing in favor or against institution, that the Board must assess. These instructions are generally referred to as the NHK-Fintiv instructions that, as Board precedent, bind only the Board and not the USPTO Director.

Several IPR petitioners argued that the Director’s instructions to the Board effectively bind the USPTO as an agency and thus should have been promulgated through formal rulemaking.

The Federal Circuit disagreed, emphasizing that institution decisions rest ultimately with the USPTO Director. The Court explained that while the NHK-Fintiv framework provides guidance on how that discretionary authority may be exercised, the Director retains the ability to depart from the framework in any given case. To that end, the guidance does not carry the force and effect of law and does not impose legally binding obligations on the agency or the public.

Practice note: The decision reinforces the Federal Circuit’s post‑Arthrex theme that the Director enjoys broad and largely unreviewable discretion at the IPR institution stage.



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Tied up: Federal Circuit affirms antitrust verdict in patent case

by | Feb 26, 2026 | ,

The US Court of Appeals for the Federal Circuit affirmed a jury verdict finding that Ingevity engaged in unlawful tying under the Sherman Act by conditioning licenses to its patent on customers’ purchase of its unpatented products that were staple items of commerce. Ingevity Corp. v. BASF Corp., Case No. 24-1577 (Fed. Cir. Feb. 11, 2026) (Lourie, Prost, Cunningham, JJ.)

Ingevity sued BASF for patent infringement. BASF denied infringement, challenged the patent’s validity and enforceability, and asserted counterclaims for unlawful tying under federal antitrust law, alleging that Ingevity conditioned licenses to the patent on customers’ agreement to purchase Ingevity’s unpatented products. The district court granted summary judgment of invalidity and denied motions for summary judgment on BASF’s antitrust claims.

At trial, the jury found that Ingevity unlawfully tied licenses for the patent to sales of its unpatented products and awarded BASF antitrust damages. Ingevity moved for judgment as a matter of law or, alternatively, for a new trial, arguing that its conduct was protected under the Patent Act because its unpatented products were “nonstaple goods” (i.e., goods lacking substantial non-infringing uses) and that its actions were immune under the Noerr-Pennington doctrine. The district court denied those motions, and Ingevity appealed, challenging the jury’s tying liability finding, the rejection of Ingevity’s immunity defenses, and the damages award.

The Federal Circuit first addressed Ingevity’s statutory patent misuse defense under 35 U.S.C. § 271(d), which permits patentees to control nonstaple goods lacking substantial noninfringing uses. The Court concluded that substantial evidence supported the jury’s finding that Ingevity’s unpatented products were staple articles of commerce because the record showed actual and substantial noninfringing uses in air-intake systems. Business records, customer purchases, and technical evidence provided a sufficient basis for the jury to find that the products had recurring, practical noninfringing applications, defeating Ingevity’s reliance on § 271(d).

The Federal Circuit also rejected Ingevity’s immunity arguments. The Court determined that Ingevity forfeited its reframed immunity theory on appeal because it differed materially from the argument presented in the case below. In the alternative, the Court explained that conditioning patent licenses on the purchase of staple goods constitutes commercial tying conduct beyond mere patent enforcement communications and is not protected by either the Patent Act or the Noerr-Pennington doctrine. Accordingly, immunity did not shield Ingevity from antitrust liability.



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The meaning is plain as day: Just follow the grammar

by | Feb 26, 2026 |

The US Court of Appeals for the Federal Circuit reversed and vacated a decision by the Patent Trial & Appeal Board, explaining that the Board failed to consider common textual modifier language when applying the plain meaning to a disputed claim term. Netflix, Inc. v. DivX, LLC, Case No. 24-1541 (Fed. Cir. Feb. 13, 2026) (Moore, C.J.; Dyk, Taranto, JJ.)

DivX sued Netflix for infringing its patent directed to systems and methods for streaming partly encrypted media content. The patent uses encryption/decryption, a Digital Rights Management (DRM) technique, to protect streams of media content from unauthorized access or copying. This technique requires that cryptographic information be relayed to the playback device for users to watch streamed media content. The patent explains that encrypting parts of streamed media decreases the resources needed for encryption/decryption and provides the playback device with information on the portions that are encrypted and “common” decryption information.

Netflix petitioned for inter partes review (IPR) of all claims on the basis of obviousness. The Board rejected DivX’s proposed construction of limitation [l] of the representative claim: “locating encryption information that identifies encrypted portions of frames of video within the requested portions of the selected stream of protected video.” DivX’s argued that the “encryption information” must be located “within the requested portions of the selected stream of protected video.” The Board deemed DivX’s proposed claim construction as “too restrictive,” concluding that the claim suggested that the encryption information just needed to identify encrypted portions of frames that themselves were “within the requested portions of the selected stream of protected video.”

In its final written decision, the Board agreed with Netflix that a person of skill in the art would have been motivated to combine the asserted prior art but held that the artisan would not have reasonably expected success in combining the prior art and that therefore Netflix did not establish obviousness of the challenged claims.

The Federal Circuit vacated the Board’s decision on appeal and remanded the matter. On remand, the Board again concluded that Netflix did not demonstrate obviousness but this time accepted DivX’s originally proposed claim construction. Netflix appealed.

The Federal Circuit found the Board’s construction of limitation [l] was erroneous, agreeing with Netflix that limitation [l] was taught by the asserted prior art combination. Using the plain language doctrine, the Court found that limitation [l] was susceptible to two interpretations: “the modifier ‘within the requested portions of the selected stream of protected video’ could modify either ‘encrypted portions of frames of video’ or ‘encryption information.’” Accordingly, the Court relied on the principle that where commas or other textual signals are not used, it is presumed that the modifier is tied to the nearest available semantically plausible modificand. The Court determined that only the “encrypted portions of frames of video” needed to be “within the requested portions of the selected stream of protected video.” The Federal Circuit also determined that the context of the claim itself, the specification, and the prosecution history supported the construction that [...]

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Here’s an abstract idea: Patent eligibility depends on what is claimed, not unclaimed disclosure

by | Feb 19, 2026 |

The US Court of Appeals for the Federal Circuit reversed a district court’s rejection of Netflix’s 35 U.S.C. § 101 challenge, finding that claims directed to tailoring content specifications for wireless devices were patent ineligible. GoTV Streaming, LLC v. Netflix, Inc., Case Nos. 24-1669; -1744 (Fed. Cir. Feb. 9, 2026) (Prost, Clevenger, Taranto, JJ.)

GoTV sued Netflix for direct and induced infringement of three related patents directed to server-based tailoring of content for wireless devices. The district court dismissed the induced infringement claims and rejected Netflix’s § 101 challenge. A jury found infringement of one of the asserted patents and awarded $2.5 million in damages. Netflix appealed.

The Federal Circuit reversed the district court’s indefiniteness ruling as to a key term of the representative patents and adopted GoTV’s proposed construction of that claim term: “discrete low level rendering command.” Based on its construction, the Court concluded that the asserted claims were directed to an abstract idea and lacked an inventive concept under Alice. The Court concluded that the claims merely recited the abstract idea of using a generic template tailored to a user’s device constraints and relied on conventional computer and network functions without specifying a concrete technological improvement. The Federal Circuit determined that the claims failed both steps of the Alice framework and were invalid under § 101.

Although its § 101 holding resolved the case in Netflix’s favor, the Federal Circuit vacated the district court’s summary judgment of no inducement and its denial of GoTV’s motion for a new trial on damages, explaining that GoTV had presented substantial arguments on those issues, before directing entry of final judgment for Netflix.

Practice note: The Federal Circuit noted that the ineligibility analysis depends on the claim language at issue, not whether there may be a patent eligible invention disclosed in the specification. Although the prosecution history may be intrinsic evidence for claim construction, recitation of the problems faced by the inventor and the inventive solution cannot be relied on to argue unclaimed details of the invention to render an abstract idea patent eligible.



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Method steps must be done in order where there is logical dependency

by | Feb 12, 2026 |

In a second appeal, the US Court of Appeals for the Federal Circuit affirmed a district court’s summary judgment of noninfringement based on an implicit ordering of steps in a method claim after disagreeing with the lower court on another basis for noninfringement. Sound View Innovations, LLC v. Hulu, LLC, Case No. 24-1092 (Fed. Cir. Jan. 29, 2026) (Chen, Prost, Wallach, JJ.)

At the district court, Sound View asserted an expired patent against Hulu’s use of a central content server connected to end users through intermediate edge servers. The asserted claim recites downloading streaming content from a buffer in a helper server to an end user while concurrently retrieving more streaming content from a content server.

The district court issued a decision in favor of Hulu, which Sound View appealed. In that first appeal, the Federal Circuit vacated and remanded the district court’s ruling, based on the district court’s negative claim construction.

On remand, the district court determined Hulu did not infringe, finding that the claimed method requires the steps of “receiving a request” and “allocating a buffer” to be performed in sequence. Since Hulu did not perform these claimed steps in order, the district court found there was no infringement. Sound View appealed.

The claim-at-issue recites:

Source: Sound View Innovations, LLC v. Hulu, LLC, Case No. 24-1092 (Fed. Cir. Jan. 29, 2026), Slip Op. at 4.

The Federal Circuit reasoned that the phrase “requested SM object” in the buffer-allocation step grammatically and logically depended on the prior step of “receiving a request,” because an object cannot be “requested” until a request has occurred. The Court explained that “‘requested’ is not only a grammatical descriptor, but also is a status indicator reflecting a completed action – the receiving of a request.”

The Federal Circuit applied precedent on implicit ordering of method steps and noted that “[o]ur caselaw on implicit ordering does not help Sound View, as it does not require a finding that the performance of the claimed steps would be inoperable if the steps are not followed in the order they appear in the claim” (emphasis added). The Court explained that the “logical” dependency between the method steps mandates that the request-receiving step precede buffer allocation. Because there was no dispute that the accused systems performed these steps in a different order, the Court affirmed summary judgment of noninfringement.



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Relax, design patent claim scope doesn’t include functional elements

by | Feb 12, 2026 |

Addressing the issue of functional versus ornamental features, the US Court of Appeals for the Federal Circuit affirmed the district court’s summary judgment of noninfringement, concluding that no reasonable juror could find the accused product’s design substantially similar to the patented design once functional features were properly excluded. Range of Motion Prods. v. Armaid Co., Case No. 23-2427 (Fed. Cir. Feb. 2, 2026) (Cunningham, Hughes, JJ.) (Moore, J., dissenting).

Range of Motion Products (RoM) owns a design patent titled “Body Massaging Apparatus.” RoM sued Armaid Company, alleging that its Armaid2 product infringed RoM’s patent. Armaid owns an expired utility patent (prior art to the RoM patent) titled “Limb Massager” (Armaid1) that embodies elements of the Armaid2 design. The relevant drawings from the product and patents are below.

Source: Range of Motion Prods. v. Armaid Co., Case No. 23-2427 (Fed. Cir. Feb. 2, 2026), Slip Op. at 14.

The district court granted summary judgment in Armaid’s favor, concluding that after properly filtering out functional elements, no reasonable jury could find the Armaid2 design substantially similar to the RoM’s design patent. RoM appealed.

The Federal Circuit reviewed claim construction de novo, the underlying factual findings for clear error, and the summary judgment determination de novo. Applying the ordinary observer test as articulated in Egyptian Goddess, the majority found that several prominent features of the claimed design, most notably the clam shaped arms, were functional. The Court relied on RoM’s own marketing materials, which described the arm shape as providing leverage, and the fact that Armaid’s prior utility patent had claimed similar features.

After excluding those functional elements, the Federal Circuit assessed whether an ordinary observer familiar with the prior art would be deceived into believing the accused design was the same as the patented design based solely on their ornamental aspects. Consistent with post-Egyptian Goddess precedent, the analysis proceeded in two steps: determining whether the designs were “plainly dissimilar,” and if not, comparing the designs in light of the prior art.

The majority concluded that the designs were plainly dissimilar, citing differences in arm shape and the manner in which the fixed arm connects to the hinge. The panel majority further stated that even if the designs were not plainly dissimilar, a comparison against the prior art would yield the same result. The Federal Circuit therefore affirmed summary judgment of noninfringement.

The decision is notable for Chief Judge Moore’s dissent. The dissent argued that both the district court and the majority improperly usurped the jury’s role by resolving what should have been a fact question, which is whether the designs were substantially similar in overall appearance. More broadly, the dissent criticized the Federal Circuit’s evolution of the ordinary observer test, contending that Egyptian Goddess shifted the inquiry away from the Supreme Court’s substantial similarity framework established in Gorham Co. v. White [...]

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Can’t patent idea of using asynchronous data streams during web conferencing

by | Feb 5, 2026 |

The US Court of Appeals for the Federal Circuit affirmed a district court’s dismissal of a patent infringement suit, holding that the asserted web conferencing claims were directed to an abstract idea, lacked any inventive concept, and were therefore not patent eligible under 35 U.S.C. Section 101. US Patent No. 7,679,637 LLC v. Google LLC, Case No. 24-1540 (Fed. Cir. Jan. 22, 2025) (Moore, CJ.; Hughes, Stoll, JJ.)

The patent owner accused Google of infringing a patent that describes systems for web conferencing that allow users to view and manipulate multiple data streams asynchronously, for example by reviewing earlier content while a live presentation continues. The representative claims recited client applications for presenting and observing participants, and some claims recited a server application and a “time scale modification component” to maintain audio quality at different playback speeds. Google moved to dismiss, arguing that the claims were ineligible under Section 101. The district court agreed and denied leave to amend on the rationale of futility. The patent owner appealed.

Reviewing de novo, the Federal Circuit applied the two-step Alice framework. At step one, the Court concluded that the claims were directed to the abstract idea of allowing users to manipulate and review data streams in a web conferencing environment. The Court found that the claims recited desired results, such as asynchronous viewing, without explaining how those results were achieved or identifying any specific technological improvement. The patent owner argued that the claims were not result oriented because they recited two client applications, but the Court found that the claims still failed to describe any technical mechanism for performing the claimed functions.

The patent owner also pointed to alleged “functional claiming” in Google’s own patents, but the Federal Circuit noted that the eligibility of unrelated patents was irrelevant. The Court further rejected the notion that the mere existence of factually distinguishable Google-owned patents somehow amounted to a sweeping concession by Google that all patents involving functional claiming approaches were necessarily patent eligible.

Turning to step two, the Federal Circuit concluded that the claims lacked an inventive concept. The specification described the client applications and the time scale modification component as conventional components performing their ordinary functions. The patent owner largely repeated its step one arguments, which the Court found insufficient to supply an inventive concept.

Finally, the Federal Circuit rejected the patent owner’s argument that dismissal at the pleading stage was premature. Because the asserted patent was ineligible as a matter of law and the patent owner identified no factual allegations that could alter the Section 101 analysis, any amendment would have been futile.



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