Palomar Techs., Inc. v. Mrsi Sys., LLC
Palomar Techs., Inc. v. Mrsi Sys., LLC
Opinion of the Court
This is a patent infringement dispute between two companies involved in the *324production and distribution of "die attach" systems. Plaintiff Palomar Technologies, Inc., has brought suit against defendant MRSI Systems, LLC. The complaint asserts a claim for patent infringement pursuant to
Plaintiff has moved for partial summary judgment as to defendant's invalidity claims on the basis of statutory estoppel under
I. Background
A. Palomar Technologies
Palomar Technologies, Inc., is the owner and assignee of
Palomar provides, among other things, "die-attach solutions" and "precision assembly services." (Compl. ¶ 2). Palomar's systems are used to manufacture "LED, optoelectronic, solar, RF and microelectronic packages in the photonic, wireless, microwave, automotive, aerospace, defense, medical and life science industries." (Id. ).
B. The '327 Patent
The '327 patent generally relates to a "method for high accuracy placement of a first workpiece onto a second workpiece for attachment of the two workpieces." (Id. col. 1 ll. 7-9). More particularly, the patent relates to a "high accuracy [automated] placement method which utilizes double pick and place of the first workpiece to enhance the final placement accuracy of the first workpiece onto the second workpiece." (Id. col. 1 ll. 9-13).
According to the patent, in the production of many electronic applications, dies, or tiny semiconductor devices, are attached to circuit bodies. ( '327 patent col. 1 ll. 16-24). The process of attaching a die to a circuit body typically involves two steps: first, in the "pick and place" operation, "the die is picked from a remote location by a tool and placed on the circuit body at the location where attachment is desired." ( '327 patent col. 1 ll. 25-28). Next, "the die and circuit body are heated to the melting point of an interposed solder, more specifically termed the die attach material, to form an electrically and thermally conductive die attach connection between the die and the circuit body." ( '327 patent col. 1 ll. 28-32).
According to the patent, automated die-attach techniques were already known and used, although the conventional techniques were not able to perform pick and place operations in a manner sufficiently accurate for emerging industries, such as the optical communications industry. (Id. col. 1 ll. 33-35, 42-45). The '327 patent distinguishes itself from these earlier techniques by claiming to provide an automated placement method that is "both time efficient and highly accurate." (Id. col. 1 ll. 49-51).
*325The patent's automated placement method involves two steps. Initially, the "first workpiece, which is preferably a die," is "positioned at the origination location." (Id. col. 1 ll. 63-64;
C. MRSI Systems, LLC
MRSI Systems, LLC designs, manufactures, and supplies "fully automated, ultra-high precision die-attach and epoxy dispensing tools," including the "MRSI-M3 Assembly Work Cell." (Id. ¶ 2, 12).
The MRSI-M3 Assembly Work Cell is "an automated die bonder" that "utilizes" a technique called the "double-pick and place." (Id. ¶ 13). Under this technique, a "pick tool" picks a die from a "waffle pack, Gel-Pak, wafer, or tape and reel," moves the die to "an intermediate location," and places the die "onto a vacuum containing surface." (Id. ). After the pick tool disengages the die, and the system "utilizes pattern recognition to obtain the coordinates of the die," the pick tool reengages the die and moves the die to a location on a circuit body. (Id. ). This method, Palomar contends, infringes on its '327 patent. (Id. ¶ 15).
D. The Inter Partes Review
On July 6, 2015, Palomar filed this action against MRSI in the Southern District of California. (ECF 1). On October 13, 2015, MRSI petitioned the Patent Trial and Appeal Board ("PTAB") for inter partes review ("IPR") of the patent. (ECF 113-1) (PTAB IPR2016-00043). That petition requested that an IPR be instituted as to all 48 claims of the patent on one or more of six grounds. (ECF 113-1 at 1-9). Specifically, the petition requested review of:
• Claims 1, 3-10, 13, and 24 for anticipation by Isaacs.2
• Claims 25, 27-34, and 37 for obviousness over Isaacs.
• Claims 2, 16-18, 26, 40-42, and 48 for obviousness over Isaacs and Mori.3
• Claims 11-13, 35-37 for obviousness over Isaacs and Bauks.4
• Claims 14, 15, 38, and 39 for obviousness over Isaacs, Mori, and Ginsberg.5
• Claims 19-23, 43-47 for obviousness over Isaacs and Taguchi.6
(ECF 113-2 at 5). In addition to those five prior art references (Isaacs, Mori, Bauks, Ginsberg, and Taguchi), which formed the basis for one or more of the specific grounds, MRSI's petition advanced five others (Derby, Janisiewicz, Gamel, Fukui, and Lee). (ECF 113-2 at 4).
*326On April 7, 2016, the PTAB instituted review on each of the six grounds raised in the petition. (ECF 113-2). On March 29, 2017, the PTAB issued its final written decision. (ECF 113-3). That decision upheld the validity of claims 1-47 and invalidated claim 48. (ECF 113-3). MRSI did not appeal.
E. MRSI's Invalidity and Non-Infringement Contentions
Palomar's action against MRSI had been stayed by the Southern District of California during the IPR proceedings. On February 5, 2018, that action was transferred to this Court. (ECF 53). On March 30, 2018, the Court issued a scheduling order that instructed the parties to file preliminary invalidity and non-infringement contentions by August 3, 2018. As part of that process, the parties were directed to "identify prior art that anticipates or renders obvious the identified patent claims in question." (ECF 69).
MRSI filed its preliminary invalidity and non-infringement contentions on August 3, 2018. (ECF 104). MRSI contends that all of the claims asserted by Palomar against it are invalid. (ECF 104 at 1). To support its contention, MRSI provides various references to prior art that allegedly render the patent invalid based on anticipation and obviousness. (Id. at 5-10).
First, MRSI identifies prior art references that it contends anticipate the claims of the '327 patent. The references are divided into three categories and presented in tables. MRSI also provides a fourth table that lists "documents" that describe the prior art listed in the third table.
• Table 1A lists "Prior Art Patents" that anticipate the patent's claims:
Table 1A U.S. Patent No. 5,035,047 to Harigane et al.• Table 1B lists "Prior Art Publications" that anticipate the patent's claim:
Table 1B Reference WO 01/72097A2 to Yasuharu Ueno (PCT/JP01/02308)
• Table 1C lists "Prior Art Knowledge, Uses, Sales, Offers for Sale, and Inventions by Others " that anticipate the patent's claims:
Table 1C MRSI-505 MRSI-5005
• Table 1D lists documents and a video as "evidence of the relevant features and functionality" of the "systems" listed in Table 1C.
*327Table 1D Document Description Bates Number Programmer's Guide MRSI WorkCell MRSI0000116 Video demonstrating similarity between MRSI-505 MRSI0005610 and MRSI M3 Programming and Operations Manual MRSI 505 MRSI0001026 Programming and Operations Manual MRSI 505 MRSI0001555 Technical Manual MRSI 505 DOS MRSI0002085 Service Manual MRSI 505 MRSI0002717 Service Manual MRSI 505 MRSI0002855 M3/M5 WorkCell Technical Reference Manual MRSI0003072 WorkCell Basic Programming Manual MRSI0005224
Second, MRSI identifies prior art references that it contends render the claims obvious. MRSI divides those references into two tables:
• Table 2A lists "Prior Art Patents and Patent Publications" that render the claims obvious:
Table 2A U.S. Patent No. 4,878,610 to Mori et al. U.S. Patent No. 4,893,396 to Ainsworth U.S. Patent No. 4,919,586 to Derby U.S. Patent No. 5,035,047 to Harigane et al. U.S. Patent No. 5,040,291 to Janisiewicz et al. U.S. Patent No. 5,639,203 to Lee U.S. Patent No. 5,446,960 to Isaacs et al. U.S. Patent No. 5,657,533 to Fukui et al. U.S. Patent No. 5,864,944 U.S. Patent No. 6,085,407 to Gamel et al. U.S. Patent No. 6,148,511 to Taguchi
• Table 2B lists "Prior Art Publications" that render the claims obvious:
Table 2B Daniel Z. Bauks, "Automated Hybrid-Circuit Assembly," Microelectronic Manufacturing and Testing (1983) Gerald L. Ginsberg, "Chip and Wire Technology: The Ultimate in Surface Mounting," Electronic Packaging & Production (1985) WO 01/72097A2 to Yasuharu Ueno (PCT/JP01/02308) Japanese Patent Number JP2002141700A
In total-not counting the documents listed in Table 1D (because MRSI does not contend that they are prior art), and accounting for references listed in more than *328one table-MRSI provides 17 references to prior art that it contends invalidate the claims of the patent. The 17 references include the ten references MRSI advanced to the PTAB during IPR. Those ten references, in turn, include the five references that MRSI specifically asserted as grounds before the PTAB.
On August 27, 2018, Palomar filed a motion for partial summary judgment. Palomar contends that MRSI is barred from challenging the validity of the patent's claims under
II. Analysis
The America Invents Act, Pub. L. No. 112-29,
Notwithstanding the straightforward language of the statute, its application has been considerably complicated by the PTAB's former practice of instituting IPRs as to only some of the challenged grounds of a patent.
In 2016, the Federal Circuit ruled that estoppel did not apply to grounds on which the PTAB declined to institute review. Shaw Indus. Grp. v. Automated Creel Sys., Inc. ,
In 2018, however, the Supreme Court, interpreting
In the wake of the SAS decision, the Patent and Trademark Office issued a "guidance" in April 2018 announcing that any petition instituted would be instituted on all claims and all grounds raised. U.S. Patent & Trademark Office, Guidance on the Impact of SAS on AIA Trial Proceedings (Apr. 26, 2018), https://www.uspto.gov/patents-application-process/patent-trial-and-appeal-board/trials/guidance-impact-sas-aia-trial. The Federal Circuit has also endorsed the view that SAS "interpret[ed] the statute to require a simple yes-or-no institution choice respecting a petition, embracing all challenges included in the petition." PGS Geophysical ,
Palomar contends that MRSI should be barred from relying on any of the 17 prior art references as grounds for invalidity. The 17 references are best understood as containing three groups: (1) those that the PTAB actually discussed in its decision (five); (2) those that were raised in the petition, but not discussed in the decision (five); and (3) those that were not raised in the PTAB proceeding (the remaining seven).
A. Grounds Actually Addressed in the PTAB's Final Written Decision
The first set of prior art references may be readily addressed. MRSI is clearly estopped from asserting any grounds in this lawsuit as to which the PTAB actually instituted review and issued a final written decision. See
MRSI's contentions on this point are unclear. On the one hand, it has asked the Court to deny Palomar's motion "on all grounds." (ECF 139 at 2). But in its memorandum opposing summary judgment, it makes no argument as to why the grounds already considered by the PTAB should not be subject to estoppel under § 315(e)(2). Nor are any such grounds apparent, in light of the clear command of the statute.
Accordingly, and based on the statutory estoppel bar of
B. Grounds Raised But Not Addressed in the PTAB's Final Written Decision
The next question is whether MRSI should be estopped from arguing invalidity based on the five prior art references that it advanced in its IPR petition but that did not specifically form the basis of any of the six requested grounds.
As noted, before SAS , the PTAB had a practice of sometimes instituting review on only some of the challenged grounds. According to the Federal Circuit, when that happened, the non-instituted grounds were not subject to the estoppel bar. HP Inc. v. MPHJ Tech. Invs., LLC ,
On multiple occasions since the SAS decision, the Federal Circuit has remanded cases to the PTAB for it to consider noninstituted grounds. See BioDelivery ,
This case, however, is in a considerably different posture. This is not an instance where the PTAB, on its own, elected to institute a partial review. Rather, MRSI itself both (1) brought certain prior art references to the attention of the PTAB and (2) affirmatively elected not to assert those prior art references as specific grounds for invalidity.
MRSI's petition for review was filed with the PTAB on October 13, 2015. The petition sought review of all claims, asserting *330six grounds based on five prior art references. (ECF 113-1).
On April 7, 2016, the PTAB issued its decision to institute inter partes review. In its decision, the PTAB noted that MRSI "advances the following references as prior art," and listed the ten at issue here. (ECF 113-2 at 4). It then observed: "The petition asserts the following grounds of unpatentability," and set forth five references (Isaacs, Mori, Bauks, Ginsberg, and Taguchi) and the six asserted grounds for invalidity (one for anticipation and five for obviousness). (Id. at 5).
In a footnote, the PTAB observed: "Petitioner relies on Derby, Janisiewicz, Fukui, and Lee to show background of the technology and common knowledge in the art." (Id. at 5, n.1). It cited to two places in the petition where MRSI had done exactly that. And it noted that MRSI also relied on the declaration of Stephen Derby, Ph.D., to whom the Derby patent had been issued. It did not, however, mention the Gamel reference.
On March 29, 2017, the PTAB issued its Final Written Decision. As noted, it determined that Claims 1-47 were "not unpatentable" and that Claim 48 was unpatentable. MRSI did not appeal that decision.
In short, MRSI was aware of the five "background" prior art references at issue, and indeed actually provided those references to the PTAB.
Under the circumstances, the Court can see no unfairness in applying the estoppel bar to those five references. Otherwise, the statutory phrase "any ground ... that the petitioner ... reasonably could have raised" has no meaning at all. See
It is true that SAS was decided after MRSI's opportunity to appeal the PTAB's decision had expired.
Accordingly, and based on the statutory estoppel bar of
C. Grounds Not Raised Before the IPR
The remaining question is whether MRSI should be estopped from arguing invalidity based on grounds that it "reasonably could have raised" during the IPR, but did not.
Prior to SAS , a minority of district courts had held that only those grounds actually raised in the petition could count as grounds that "reasonably could have been raised." Under that view, a petitioner could hold back certain grounds from its petition and be free to raise them later before a district court. E.g., Koninklijke Philips N.V. v. Wangs Alliance Corp. ,
After SAS , that cannot be correct. Because the PTAB must now institute review (if at all) on all grounds, there will be no such thing as a ground raised in the petition as to which review was not instituted.
The question then becomes what is the standard for determining whether a ground not included in a petition reasonably could have been raised. In congressional debates, one of the key architects of the America Invents Act explained that "reasonably could have raised" is meant to include any patent or printed publication that a petitioner actually knew about or that "a skilled searcher conducting a diligent search reasonably could have been expected to discover." 157 Cong. Rec. S1375 (daily ed. Mar. 8, 2011) (statement of Sen. Kyl). Several district courts have adopted this as the standard. See, e.g., Parallel Networks Licensing ,
It appears that the issue of whether a skilled, diligent search reasonably should have uncovered a reference is a question of fact. Palomar has presented attorney arguments as to the relative ease with which a skilled searcher would have found at least some of the prior art references MRSI raises now for the first time.
MRSI, by contrast, has submitted evidence that suggests it hired at least two patent search firms-KramerIP Search and TechMark Global LLC-to conduct searches for relevant prior art. There thus appears to at least be a genuine question of material fact as to whether a diligent, skilled searcher would have found the relevant references at the time the IPR was filed.
Therefore, to the extent Palomar is contending that MRSI is estopped from relying on the seven previously unfound references as grounds for invalidity, the motion for summary judgment will be denied.
D. Whether MRSI Manuals Can Be Asserted as Prior Art References
A final issue remains: the parties appear to disagree as to whether MRSI intends to assert documents related to the MRSI 505 and MRSI 5005 systems-that is, those references listed in Table 1D-as invalidating prior art.
Palomar contends that "MRSI intends to rely on its product manuals listed in ... its Disclosures" and that because MRSI was obviously aware of its own manuals, it reasonably could have raised them as grounds for invalidity in the IPR. (ECF 112 at 15).
MRSI contends that it should be allowed to rely on the products themselves-that is, the MRSI 505 and MRSI 5005 systems-as invalidating prior art. As to the product manuals, however, MRSI seems to suggest that the manuals serve as "evidence of the relevant features and functionality of the system[s]" listed in Table 1C, as opposed to prior art themselves. (ECF 104 at 7). Given that description, and in light of the fact that MRSI clearly labels all of its other "references" as "prior art," it appears that the issue is moot.
As to the products themselves, Palomar does not seek to bar MRSI from relying on them as prior art. Indeed, in concluding its memorandum, Palomar writes: "based upon an application of the plain meaning of § 315(e)(2) to the undisputed facts in this case, MRSI is statutorily barred from challenging the validity of any asserted claim of the '327 Patent based upon the alleged prior art listed in Tables 1A, 1B, 1D, 2A, and 2B of MRSI's Disclosures." In addition, Palomar provides no argument as to why MRSI would be precluded from relying on the systems as invalidating prior art. Accordingly, it appears that there is no dispute that MRSI may rely upon the MRSI 505 and 5005 products to show invalidity.
III. Conclusion
For the foregoing reasons, Palomar's motion for partial summary judgment *333based on defendant's invalidity disclosures is GRANTED in part and DENIED in part. Pursuant to the statutory estoppel bar of
1.U.S. Patent No. 5,446,960 to Isaacs et al.;
2.U.S. Patent No. 4,878,610 to Mori et al.;
3.U.S. Patent No. 6,148,511 to Taguchi;
4.U.S. Patent No. 4,919,586 to Derby;
5.U.S. Patent No. 5,040,291 to Janisiewicz et al.;
6.U.S. Patent No. 6,085,407 to Gamel et al.;
7.U.S. Patent No. 5,657,533 to Fukui et al.;
8.U.S. Patent No. 5,639,203 to Lee;
9. Daniel Z. Bauks, Automated Hybrid-Circuit Assembly , 6 MICROELECTRONIC MFG. & TESTING 31, 31-32 (1983); and
10. Gerald L. Gisnberg, Chip and Wire Technology: The Ultimate in Surface Mounting , 25 ELEC. PACKAGING & PROD. 78, 82-83 (1985).
The motion is otherwise DENIED.
So Ordered.
The complaint also asserts a claim for induced patent infringement and a claim for contributory infringement under § 271.
Daniel Z. Bauks, Automated Hybrid-Circuit Assembly , 6 Microelectronic Mfg. & Testing 31, 31-32 (1983).
Gerald L. Gisnberg, Chip and Wire Technology: The Ultimate in Surface Mounting , 25 Elec. Packaging & Prod. 78, 82-83 (1985).
The five additional prior art references were: (1)
As noted, those five prior-art references were Isaacs, Mori, Bauks, Ginsberg, and Taguchi.
While it is true that the PTAB did not refer specifically to the Gamel reference, the Court sees no reason why it should be treated any differently, under the circumstances, from the other four "background" references.
The PTAB issued its final decision on March 29, 2017. Either party then had 60 days to file a notice of appeal.
The PTAB has the option of wholly declining to institute any IPR. See
MRSI has filed a motion to strike portions of the declaration of Palomar's attorney, Jan P. Weir. Because the Court will deny summary judgment as to the prior art references discussed in Weir's declaration-that is, the prior art references not raised by MRSI during the IPR-the motion to strike will be denied as moot.
Palomar refers to the manuals as "listed in Table 2B" of MRSI's disclosure filing. Table 2B of MRSI's disclosure filing does not list product manuals; rather, the manuals are listed in Table 1D. The Court will assume, therefore, at least for the purposes of summary judgment, that Palomar is referring the manuals listed in Table 1D.
Reference
- Full Case Name
- PALOMAR TECHNOLOGIES, INC. v. MRSI SYSTEMS, LLC
- Cited By
- 6 cases
- Status
- Published