Justia Civil Procedure Opinion Summaries

Backertop Licensing LLC and Lori LaPray appealed the U.S. District Court of Delaware’s orders requiring LaPray to appear in-person for testimony regarding potential fraud and imposing monetary sanctions for her failure to appear. The District Court identified potential misconduct in numerous related patent cases involving IP Edge and Mavexar, which allegedly created shell LLCs, assigned patents for little consideration, and directed litigation without disclosing their ongoing rights. The court was concerned that this arrangement concealed the real parties in interest and potentially perpetrated fraud on the court.The District Court ordered LaPray, the sole owner of Backertop, to produce documents and appear in-person to address these concerns. LaPray moved to set aside the order, citing travel difficulties and requesting to appear telephonically, which the court denied. The court rescheduled the hearing to accommodate her schedule but maintained the requirement for in-person testimony to assess her credibility. LaPray did not attend the rescheduled hearing, leading the court to hold her in civil contempt and impose a daily fine until she appeared.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the District Court’s orders were within its inherent authority and not an abuse of discretion. The court found that Federal Rule of Civil Procedure 45, which limits the geographic range of subpoenas, did not apply to the court’s sua sponte orders. The court affirmed the District Court’s orders, emphasizing the necessity of in-person testimony to investigate potential misconduct and assess credibility. The monetary sanctions for LaPray’s failure to appear were also upheld. View "BACKERTOP LICENSING LLC v. CANARY CONNECT, INC. " on Justia Law

This case involves Packet Intelligence LLC ("Packet") and NetScout Systems, Inc. and NetScout Systems Texas, LLC (collectively, "NetScout"). Packet had sued NetScout for patent infringement. The U.S. District Court for the Eastern District of Texas found that NetScout had willfully infringed Packet's patents and awarded Packet damages, enhanced damages for willful infringement, and an ongoing royalty. NetScout appealed this decision.In a previous appeal, the United States Court of Appeals for the Federal Circuit had reversed the district court's award of pre-suit damages and vacated the court's enhancement of that award. The court affirmed the district court's judgment in all other respects and remanded the case to the district court. On remand, the district court denied NetScout's motion to dismiss or stay the case and entered an amended final judgment. The amended judgment reduced the enhanced damages and reset the ongoing royalty rate.Meanwhile, the Patent Trial and Appeal Board ("Board") found all of the patent claims asserted by Packet in this case unpatentable as obvious. Packet appealed the Board's final written decisions. The Federal Circuit coordinated those appeals so they would be considered by the same panel deciding this appeal.The United States Court of Appeals for the Federal Circuit vacated the district court’s amended final judgment and remanded the case with instructions to dismiss the case as moot. The court held that Packet’s infringement judgment was not final before the Board’s unpatentability determinations were affirmed. Therefore, the court was compelled to order that Packet’s patent infringement claims be dismissed as moot. View "PACKET INTELLIGENCE LLC v. NETSCOUT SYSTEMS, INC. " on Justia Law

The case revolves around SnapRays, a Utah-based company that designs, markets, and sells electrical outlet covers with integrated guide lights, safety lights, motion sensor lights, and USB charging technology, and Lighting Defense Group (LDG), an Arizona-based company that owns a patent related to a cover for an electrical receptacle. LDG submitted an Amazon Patent Evaluation Express (APEX) Agreement alleging that certain SnapPower products sold on Amazon.com infringed its patent. SnapPower subsequently filed an action for declaratory judgment of noninfringement.The United States District Court for the District of Utah dismissed SnapPower's complaint for lack of personal jurisdiction over LDG. The court concluded that LDG lacked sufficient contacts with Utah for it to exercise specific personal jurisdiction. It found that LDG's allegations of infringement were directed toward Amazon in Washington, where the APEX Agreement was sent, and not at SnapPower in Utah. The court also noted that under Federal Circuit law, principles of fair play and substantial justice support a finding that LDG is not subject to specific personal jurisdiction in Utah.The United States Court of Appeals for the Federal Circuit reversed the lower court's decision. The appellate court concluded that LDG purposefully directed extra-judicial patent enforcement activities at SnapPower in Utah, thereby satisfying the requirements for specific personal jurisdiction. The court found that LDG's submission of the APEX Agreement to Amazon, which identified SnapPower's listings as allegedly infringing, was an intentional action aimed at affecting SnapPower's sales and activities in Utah. The court also rejected LDG's argument that the assertion of specific personal jurisdiction over it in Utah would be unfair and unreasonable. The case was remanded for further proceedings. View "SNAPRAYS v. LIGHTING DEFENSE GROUP " on Justia Law

This case involves a dispute between two manufacturers of dining mats for toddlers, Luv n' Care, Ltd. and Nouri E. Hakim (collectively, “LNC”), and Lindsey Laurain and Eazy-PZ, LLC (collectively, “EZPZ”). LNC filed a lawsuit against EZPZ, seeking a declaratory judgment that EZPZ’s U.S. Patent No. 9,462,903 (the “’903 patent”) is invalid, unenforceable, and not infringed. EZPZ counterclaimed, alleging infringement of the ’903 patent, among other claims. After a bench trial, the district court found that LNC failed to prove that the ’903 patent is unenforceable due to inequitable conduct, but that EZPZ was barred from obtaining relief due to its “unclean hands.” The court also granted LNC’s motion for partial summary judgment that the claims of the ’903 patent are invalid as obvious. Both parties appealed.The United States Court of Appeals for the Federal Circuit affirmed the district court’s judgment on the doctrine of unclean hands, meaning that EZPZ was barred from obtaining relief due to its misconduct during the litigation. However, the court vacated the district court’s judgment on inequitable conduct and invalidity, finding that there were genuine disputes of material fact that precluded summary judgment. The court also vacated the district court’s denial of LNC’s motion for attorney fees and costs, and remanded the case for further proceedings. View "Luv n' Care, Ltd. v. Laurain" on Justia Law

AI Visualize, Inc. accused Nuance Communications, Inc. and Mach7 Technologies, Inc. of patent infringement in the District of Delaware. The patents in question concerned the visualization of medical scans, with an emphasis on three-dimensional views via a low-bandwidth web portal. Nuance and Mach7 sought dismissal of the case on the grounds that the patents were directed to patent-ineligible subject matter under 35 U.S.C. § 101. The district court agreed, ruling that the patents were directed to an abstract idea and failed to provide an inventive step that transformed the abstract idea into patent-eligible subject matter. Consequently, AI Visualize’s case was dismissed.Prior to this, the district court had granted Nuance and Mach7's motion to dismiss AI Visualize's complaint for failing to state a claim. AI Visualize then filed an amended complaint, which Nuance and Mach7 again moved to dismiss. The district court found that the patents attempted to address prior art problems with transporting large volume visualization datasets over a standard internet connection. However, the court ruled that the focus of the claimed advance over the prior art was abstract, and AI Visualize’s arguments that the claims were directed to improvements in computer functionality were rejected.On appeal, the United States Court of Appeals for the Federal Circuit affirmed the district court’s decision. The appellate court agreed that the patents in question were directed to an abstract idea and did not offer an inventive step that transformed the idea into patent-eligible subject matter. Further, the court observed that AI Visualize's amended complaint failed to provide sufficient factual allegations to support that the claims involved unconventional technology or a concrete application of the abstract idea of virtual view "creation". Thus, the dismissal of AI Visualize’s case was affirmed. View "AI Visualize, Inc. v. Nuance Communications, Inc." on Justia Law

The United States Court of Appeals for the Federal Circuit heard the appeal of Inline Plastics Corp. against Lacerta Group, LLC. Inline Plastics alleged that Lacerta infringed on several of its patents concerning tamper-resistant plastic containers and methods of making them. After a district court ruling in favor of Lacerta, Inline appealed on the grounds that the court erred in its judgment of invalidity and infringement. Lacerta cross-appealed, challenging the denial of attorney fees and the dismissal of certain patent claims Inline dropped near the end of trial.The Court of Appeals decided to affirm the district court's denial of Inline's motion for judgment as a matter of law of validity, but vacated the court's judgment of invalidity and remanded for a new trial on this issue. The court affirmed the district court's finding of non-infringement of various claims by Lacerta, but vacated the without-prejudice dismissal of Inline’s late-withdrawn claims. The court also vacated the district court's denial of Lacerta’s motion for attorney fees under § 285. Each party will bear their own costs. View "Inline Plastics Corp. v. Lacerta Group, LLC" on Justia Law

The case in question is a petition for a writ of mandamus filed by Abbott Laboratories, Abbvie Inc., Abbvie Products LLC, Unimed Pharmaceuticals LLC, and Besins Healthcare, Inc. These petitioners were involved in a patent and antitrust lawsuit concerning the drug AndroGel 1%. They sought a writ of mandamus after a district judge ruled that the application of the crime-fraud exception to the attorney-client privilege justified an order compelling the production of certain documents. The Petitioners claimed those documents were privileged.The Court of Appeals for the Third Circuit denied their petition. The court reasoned that the petitioners failed to meet the high standard for granting a petition for writ of mandamus. Specifically, they failed to show a clear and indisputable abuse of discretion or error of law, a lack of an alternate avenue for adequate relief, and a likelihood of irreparable injury.The court also found that the district court did not err in its interpretation of the crime-fraud exception to the attorney-client privilege as it applies to sham litigation. The court held that sham litigation, which involves a client’s intentional “misuse” of the legal process for an “improper purpose,” can trigger the crime-fraud exception. The court also rejected the argument that a "reliance" requirement must be applied in this context. View "In re: Abbott Laboratories" on Justia Law

In a case before the United States Court of Appeals for the Federal Circuit involving VLSI Technology LLC and Intel Corporation, the court examined claims of patent infringement and respective damages. VLSI alleged that Intel had infringed two of its patents, U.S. Patent No. 7,523,373 ("373 patent") and U.S. Patent No. 7,725,759 ("759 patent").The jury found that Intel had indeed infringed both patents and awarded separate damages for each. Intel appealed these decisions. The court affirmed the judgment of infringement of the 373 patent but reversed the judgment of infringement of the 759 patent. The court also vacated the award of damages for the 373 patent and remanded the case for a new trial limited to damages. The court further reversed the denial of Intel's motion for leave to amend to add a license defense.The court's decisions hinged on a number of factors, including the interpretation of the patents, the evidence presented by both parties, and the legal conclusions drawn by the district court. The court's decision underscores the complexity of patent infringement cases and the importance of accurately interpreting and applying patent law. View "VLSI TECHNOLOGY LLC v. INTEL CORPORATION " on Justia Law

Whirlpool filed a complaint against Shenzhen Sanlida Electrical Technology Co., Ltd. and Shenzhen Avoga Technology Co., Ltd. (collectively, “Shenzhen”) asserting federal and state law claims for trademark and trade dress infringement along with a motion for a preliminary injunction to stop the sale of the allegedly infringing mixers. The district court granted the injunction. In addition to its appeal, Shenzhen sought an emergency stay pending appeal. After granting an initial administrative stay, the Fifth Circuit denied that motion. Then, after the Federal Circuit heard the merits of the case, it affirmed the district court.The Fifth Circuit found the district court did not abuse its discretion in finding that the harms weighed in favor of Whirlpool. View "Whirlpool v. Shenzhen Sanlida" on Justia Law

This action represents Metabyte’s fourth attempt to hold Technicolor liable for Technicolor’s allegedly improper auction of a patent portfolio in 2009. After the French courts ruled they lacked jurisdiction in the criminal action, Metabyte brought an action in district court alleging a federal RICO claim and several state law causes of action. After the district court ruled that equitable tolling did not apply to its RICO claim as a matter of federal law, Metabyte dismissed the federal action and brought its state law claims in Los Angeles County Superior Court. The trial court granted Technicolor’s demurrer without leave to amend. Metabyte contends the trial court erred in finding equitable estoppel applies only where a plaintiff invokes remedies designed to lessen the extent of a plaintiff’s injuries or damages, with the result that Article 145 proceeding in France could not support equitable tolling because it did not provide such a remedy. Technicolor defends the trial court’s ruling but devotes more of its energies to its contentions that even if equitable tolling did apply, the order should be affirmed by applying the doctrines of issue preclusion and judicial estoppel.   The Second Appellate District affirmed the trial court’s ruling sustaining the demurrer on the alternate ground that Metabyte failed to adequately plead facts showing that its decision to proceed in France was objectively reasonable and subjectively in good faith. However, the court granted Metabyte leave to amend. Accordingly, the court reversed the judgment and remanded for further proceedings. View "Metabyte v. Technicolor S.A." on Justia Law