The Dolcera Blog

http://www.cafc.uscourts.gov/opinions/09-1001.pdf

It is our contention that in the globalized world of manufacturing, where most of the manufacturing activity happens outside the developed world, having legally valid patents in the manufacturing hubs of China, Mexico or India can pay off handsomely. A legal right in those countries can ease gathering of evidence as can be seen in the case below where video shots of manufacturing process used in Mexico is used as admissible evidence.

This case pertains to an infringement claim won by Gemtron Corp. against Saint Gobain for refrigerator shelf manufacturing method and design.

Background:
Saint Gobain manufactures refrigerator components in Mexico and sells them in the United Sates. Gemtron Corp. has a patent for manufacture of refrigerator shelves where by a glass portion of the shelf is held to a polymeric base using ‘fingers’ and not ‘adhesive’ ( a traditional method) filed in both USA and Mexico.

Gemtron Corp. alleged that Saint Gobain was infringing on its patents since it was using a similar method for manufacturing its shelves - in which a glass portion is held to its polymeric base using ‘fingers’. Saint Gobain was countering Gemtron Corp. allegation saying that the claim 23 of the ‘673 Gemtron patent was only a ‘process’ patent and hence the end result from the process (the end design or the structural component) was not claimed. The CAFC rejected Saint Gobain’s plea on the grounds that the result of a claimed process which lead to a unique structural change were also by default patentable subject matter.

In order to refute Saint Gobain’s claims that its manufacturing process was significantly different than claimed in the patent, Gemtron Corp. showed videos of the manufacturing process used at Saint Gobain’s manufacturing site in Mexico. The video clearly proved similarity in the process used at Saint Gobain manufacturing site.

In the overall case argument, while the moot point was the ’structural component’ or the design of the shelf, it can be argued that the video showing Saint Gobain’s manufacturing process was also helpful in winning a non-technical jury’s verdict to prove wilful infringement at the district court level.

- Lakshmikant Goenka

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Red Hat Inc. and Novell Inc. are being sued by IP Innovation LLC. and Technology Licensing Corp. for patent infringement. The court filing claims that Novell and Red Hat infringed on the plaintiff’s patent for User Interface with Multiple Workspaces for Sharing Display System Objects as well as two other similar patents. This is the first patent infringement lawsuit involving Linux.

According to the lawsuit filed with the U.S. District Court for the Eastern District of Texas, Novell and Red Hat are accused of infringing on the patents by selling the Red Hat Linux system, the Novell SUSE Linux Enterprise Desktop, and the Novell SUSE Linux Enterprise Server. IP Innovation LLC. and Technology Licensing Corp. further further contend that the defendants “deliberately and willfully” infringed on the patents, stating that the defendants were previously notified of the infringement.

IP Innovation LLC. and Technology Licensing Corp. are seeking an injunction from the District Court plus damages including other relief that the court might find proper. Novell withheld comment until their attorneys could further review the court filing.
Red Hat Inc and Novell Inc are accused of violating three patents.

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Vonage has agreed to settle partially on a patent suit with Verizon after the company was faced with possible interruption of its service. Verizon alleges that Vonage is infringing on seven of its patents on voice-over-IP technologies. A joint statement read succinctly “The parties are pleased to have resolved this matter.”

In March of this year, a jury found that Vonage is infringing on three of the seven patents, awarding Verizon with $58 million in damages. The judge issued an injunction which was stayed pending an appeal. Nevertheless in September, the U.S. Court of Appeals upheld the earlier court decision. Vonage then filed a petition for a rehearing.

If Vonage wins a rehearing on either the ‘574 or ‘711 patent, or if the injunction is vacated as to the ‘574 or ‘711 patent, Vonage will have to pay Verizon $80 million. If Vonage does not win a rehearing on either the ‘574 or ‘711 patent, or if the stay is lifted reinstating the injunction, Vonage will pay Verizon $117.5 million.

Things got more interesting as AT&T filed a lawsuit against Vonage on October 17 for a patent on connecting a traditional telephone to the Internet. The suit was filed after two years of unsuccessful negotiations, however Vonage said they would resolve the matter with AT&T to prevent court proceedings.

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Apple agreed to settle a patent dispute with Burst.com, ending two years of litigation. Burst agreed not to sue Apple over current or pending DVR patents.

Under the agreement, Apple will pay Burst.com $10 million and get access to Burst.com’s patent portfolio, with some exceptions. Apple won’t have access to four of Burst.com’s current and pending patents, including three pending patents relating to digital video recorder (DVR) technology. Court costs, expenses and attorney’s fees will reduce the proceeds to Burst.com to $4.6 million.

Burst alleges that Apple infringed four patents for transmission of compressed audio and video files in iTunes, iLife, QuickTime and the iPod.

Apple was asked by Burst in 2004 to license some of its patents, saying they were at the pioneering heart of the iPod. In January 2006, Apple sued Burst.com in the U.S. District Court for the Northern District of California, seeking a judgment that the Burst.com patents were invalid and not infringed upon. Burst.com countersued in April 2006, alleging that Apple infringed four of its patents.

Bust also won a $60 million financial settlement from Microsoft in 2005 after a patent dispute over the transmission of music and video with its Windows Media Player.

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