Knowles Electronics LLC v. Cirrus Logic, Inc.
Opinion of the Court
Wallach, Circuit Judge.
Appellant Knowles Electronics, LLC ("Knowles") appeals the inter partes reexamination decision on appeal of the U.S. Patent and Trademark Office's ("USPTO") Patent Trial and Appeal Board ("PTAB") affirming an examiner's rejection of claims 1-4 of
Knowles appeals. We have subject matter jurisdiction pursuant to
BACKGROUND
The '231 patent, entitled "Microelectromechanical System Package with Environmental *1361and Interference Shield," discloses microelectromechanical system ("MEMS") packages comprising a substrate, a microphone, and a cover accommodating the microphone. '231 patent, Abstract. The MEMS packages shield the microphone from an interference signal or an environmental condition,
The instant appeal concerns claims 1-4 and proposed claims 23-27 of the '231 patent. Independent claim 1 is illustrative of the invention and recites:
A microelectromechanical system package comprising:
a microelectromechanical system microphone;
a substrate comprising a surface for supporting the microelectromechanical microphone;
a cover comprising a conductive layer having a center portion bounded by a peripheral edge portion; and
a housing formed by connecting the peripheral edge portion of the cover to the substrate, the center portion of the cover spaced from the surface of the substrate to accommodate the microelectromechanical system microphone, the housing including an acoustic port for allowing an acoustic signal to reach the microelectromechanical system microphone wherein the housing provides protection from an interference signal.
DISCUSSION
Knowles raises three primary arguments on appeal. First, Knowles argues that "the [PTAB]'s rejection of the potentially most commonly accepted definition of 'package,' and corresponding invalidity finding, requires reversal" as to claims 1-4. Appellant's Br. 45 (capitalization and alterations omitted); see
I. Claim Construction in Claims 1-4
A. Standard of Review and Legal Standard
"We review the [PTAB]'s ultimate claim construction in a reexamination de novo." In re CSB-Sys. Int'l, Inc. ,
"During reexamination proceedings of unexpired patents ... the [PTAB] uses the broadest reasonable interpretation [ ('BRI') ] consistent with the specification standard ...." In re CSB-Sys. ,
B. The PTAB Properly Construed the Term "Package" in Claims 1-4
Knowles makes several arguments for why the PTAB's construction of "package" in the preamble of claim 1 of the '231 patent is incorrect.
Claims 1-4 do not specify the type of connection required to form the MEMS package. See '231 patent col. 5 ll. 12-67. The '231 patent's specification similarly does not limit the type of connection to one that is mountable or any specific form of mount. See, e.g. ,
Because intrinsic evidence is not definitive, we turn to extrinsic evidence. See Phillips , 415 F.3d at 1319 (allowing courts to look to extrinsic evidence after reviewing intrinsic evidence to better understand the field of the invention and the meaning of a term to a PHOSITA). Knowles asks the court to look only at certain dictionary and treatise references describing common categories for mounting in MEMS to form second-level connections. See Appellant's Br. 50-52. However, as the PTAB correctly noted, many references suggested by Knowles use qualifying language, thereby implying second-level connections in circuit boards may not be properly limited to the two types of mounts proffered by Knowles. See Cirrus I ,
Knowles does not contest that the references cited by the PTAB allow for means of connectivity beyond surface and through-hole mounts. Instead, Knowles argues that the PTAB impermissibly "simply select[ed] the broadest definition" cited by the parties to arrive at its claim construction. Appellant's Br. 55 (quoting PPC Broadband, Inc. v. Corning Optical Commc'ns RF, LLC ,
Knowles additionally argues that "[t]he [PTAB] should have read MEMS Technology and concluded that a 'package' requires a 'self-contained unit['] ... and that this unit must be 'mountable.' " Appellant's Br. 53 (citing MEMS Tech. Berhad v. Int'l Trade Comm'n ,
Further, Knowles argues that this court's construction in MEMS Technology differed from the PTAB's below because in MEMS Technology we stated "[t]he requirement that the components listed in the claim body come together to form a mountable package is ... an important characteristic of the claimed invention."
II. Written Description in Proposed Claims 23-27
A. Standard of Review and Legal Standard
"The [PTAB]'s determination that a patent claim is unpatentable for insufficient written description support is a question of fact that we review for substantial evidence." Blue Calypso, LLC v. Groupon, Inc. ,
B. Substantial Evidence Supports the PTAB's Lack of Adequate Written Description Determination as to Proposed Claims 23-27
Proposed claims 23-27 of the '231 patent recite a MEMS package wherein the solder pads are "configured to mechanically attach and electrically connect the package to a surface of an external printed circuit board using a solder reflow process." J.A. 3886; see J.A. 3886-87. The PTAB determined that proposed claims 23-27 failed to meet the written description requirement, because "the present [s]pecification merely discloses a genus-solder pads that are capable of being connected to a board. But the [s]pecification fails completely to disclose the newly claimed species of such pads-pads that are connectable to a board specifically by using a reflow process." Cirrus I ,
Substantial evidence supports the PTAB's determination that the specification does not provide adequate written description to allow a PHOSITA to recognize that the inventor invented what is claimed. As an initial matter, Knowles does not contend that the specification identifies the "solder reflow process" as a means of connecting solder pads to the circuit board. The '231 patent's specification states that the "substrate ... further comprises solder pads 31 for electrical connection to an end user's board." '231 patent col. 4 ll. 2-4. The specification's only other reference to solder pads states that "the leads are formed by plating a through-hole in a circuit board of which one half will eventually form the pathway to the solder pad." Id. col. 3 ll. 12-14. The specification thus does not require solder pads to connect to the circuit board by any particular process, including the solder reflow process. Moreover, Knowles does not contest that other processes for attaching solder pads were known in the art at the time of the invention and submitted as evidence before the PTAB, and those processes could have been used to form the complete circuit board according to the details in the specification. See Appellant's Br. 71-73 (recognizing other methods of soldering); J.A. 656-86, 2534-42 (same); see also Cirrus I ,
Knowles's counterarguments are unpersuasive. First, Knowles contends that the PTAB disregarded "the state of the art at the time of filing" and "prior art knowledge" that would have demonstrated that a PHOSITA knew solder pads were "intended to be capable of reflow attachment to a user's board." Appellant's Br. 65, 66 (quoting Ariad Pharm. ,
Second, Knowles states that the specification's description of the solder pads "on the bottom of the inventor's package" would make clear to a PHOSITA that the pads would necessarily attach to a user's board via solder reflow. Appellant's Br. 69; see id. at 68-70. The PTAB reviewed Knowles's arguments and found them unpersuasive because Knowles did not contend that the specification necessarily disclosed a solder reflow process. Cirrus I ,
Knowles on appeal similarly fails to present evidence on the location of the pads sufficient to render the PTAB's findings unsupported. Knowles cites the single line of the specification disclosing solder pads generally, Appellant's Br. 69 (citing '231 patent col. 4 ll. 2-4), Figure 3 of the '231 patent showing the location of solder pads,
Finally, Knowles alleges that the PTAB incorrectly required that the specification disclose a "process" of solder reflow for "apparatus claims." Appellant's Br. 73, 74. Knowles cites Microprocessor Enhancement Corp. v. Texas Instruments , to argue that the correct legal standard for finding an adequate written description of an apparatus claim asks only whether the apparatus is "capable of performing the recited functions."
Because the PTAB correctly identified and applied the applicable legal standard for lack of written description as recited by this court in Enzo Biochem, Inc. v. Gen-Probe Inc. , and its progeny, see Cirrus II ,
III. Third-Party Requesters
The original petitions for inter partes reexamination in this case were filed by three third-party requesters. See Cirrus I ,
In contesting the Cirrus entities' tardy request to participate in the oral hearing, Knowles, among other things, questioned whether the Cirrus entities were a proper party to the proceeding. J.A. 14409-14 (Opposition to Cirrus['s] Petition to Waive or Suspend Rules); see J.A. 14411 ("[The Cirrus entities'] filing does not explain how the Cirrus [e]ntities are entitled to take over for the Requester, Wolfson ...."). Although the PTAB did not allow the Cirrus entities to participate in the oral hearing based on their untimely filing, see J.A. 14439, the PTAB allowed the overall change in real party-in-interest for the case to proceed without comment.
CONCLUSION
We have considered Knowles's remaining arguments and find them unpersuasive. Accordingly, the Decision on Appeal of the U.S. Patent and Trademark Office's Patent Trial and Appeal Board is
AFFIRMED
COSTS
No costs.
Claims 23-27 were proposed as additions to the '231 patent and repeatedly amended during the inter partes reexamination. See, e.g. , J.A. 614-15, 2800-01, 3886-87.
Knowles also argues that the PTAB erred in finding claims 1-4 anticipated by the prior art. See Appellant's Br. 61-63. However, Knowles's anticipation arguments are primarily premised on its proposed construction of "package," see
A patent's prosecution history "consists of the complete record of the proceedings before the [US]PTO," which provides "evidence of how the [US]PTO and the inventor understood the patent." Phillips v. AWH Corp. ,
The PTAB correctly found the preamble term "package" limiting. See Cirrus I ,
Knowles notes that the PTAB used conflicting language on whether it construed the term "package" to include assemblies without a second-level connection. See Appellant's Br. 45-46. Compare Cirrus I ,
Knowles argued before the PTAB that the term "package" required a second-level connection "by either through-hole mounting or surface mounting." Cirrus I ,
Congress amended § 112 when it enacted the Leahy-Smith America Invents Act ("AIA"), Pub. L. No. 112-29, § 4(c),
"Generally, the [USPTO] will not look beyond the required statement identifying the real party in interest," but if the statement is ambiguous or inaccurate, "[a] persuasive response ... that asserts that the request named the proper real party ... would establish that as filed, there was no facial inaccuracy or ambiguity in such identification." In re Guan , No. 95/001045,
Because we decline to review this argument, we deny Knowles's motion to strike, pursuant to Federal Circuit Rule 27(e), all references to extra-record materials in the Cirrus entities' brief, argument, and appendix. See Reply Br. 34.
Dissenting Opinion
I write in concern for perpetuation of the erroneous position that the PTAB need not apply the prior final judicial decision of the same issue of the same claims of the same patent.
The Supreme Court has recognized, "courts may take it as given that Congress has legislated with the expectation that the principle [of issue preclusion] will apply except when a statutory purpose to the contrary is evident." B & B Hardware, Inc. v. Hargis Indus., Inc. , --- U.S. ----,
However, the PTAB stated that "precedent makes clear that the USPTO is not bound in reexamination proceedings by claim constructions produced by a court." PTAB Op. *12. While precedent has previously addressed the effect of a prior district court claim construction on a subsequent PTO proceeding, never before has a final claim construction by this court been held not to be preclusive.
Here the claim construction was decided by the Federal Circuit, as a matter of law, in MEMS Technology Berhad v. International Trade Commission,
*1370Federal Circuit Decisions on the Same Patent Should Apply in Subsequent PTAB Proceedings
The PTAB states that "precedent makes clear that the USPTO is not bound in reexamination proceedings by claim constructions produced by a court." PTAB Op. *12. The Federal Circuit, through silence, endorses this irregularity. However, judicial resolution of a question of law cannot be ignored. The result, as here illustrated, is duplicate proceedings in the courts and the PTO, inhibiting finality of judicial determinations in areas subject to the America Invents Act.
In this case, the PTAB declined to apply the Federal Circuit's prior decision construing the same term of the same claims of the same patent, citing precedent that had previously been directed to district court decisions. PTAB Op. *12 (citing In re Trans Tex. Holdings Corp. ,
The panel majority declines to consider whether the PTAB is bound by the Federal Circuit's decision on the same patent in MEMS Technology Berhad v. International Trade Commission ,
The purpose of the America Invents Act is to provide a more efficient and less costly post-grant determination of certain validity issues, compared with the time and cost of court litigation. Such purpose is negated by duplicate PTO litigation of the same question after prior final judicial decision. Such duplicate proceeding is appropriately governed by the principles of collateral estoppel, as summarized in Sections 27-29 of the Restatement (Second) of Judgments (Am. Law Inst. 1982). As discussed by the Supreme Court in United States v. Mendoza , the Court stated:
Under the judicially-developed doctrine of collateral estoppel, once a court has decided an issue of fact or law necessary to its judgment, that decision is conclusive in a subsequent suit based on a different cause of action involving a party to the prior litigation. Montana v. United States,440 U.S. 147 , 153 [99 S.Ct. 970 ,59 L.Ed.2d 210 ] (1979). Collateral estoppel, like the related doctrine of res judicata, serves to "relieve parties of the cost and vexation of multiple law-suits, conserve judicial resources, and, by preventing inconsistent decisions, encourage reliance on adjudication." Allen v. McCurry,449 U.S. 90 , 94 [101 S.Ct. 411 ,66 L.Ed.2d 308 ] (1980).
In furtherance of those policies, this Court in recent years has broadened the scope of the doctrine of collateral estoppel beyond its common law limits.Ibid. [ Allen v. McCurry,449 U.S. at 94 [101 S.Ct. 411 ].] It has done so by abandoning the requirement of mutuality of parties, Blonder-Tongue Laboratories, Inc. v. University of Illinois Foundation ,402 U.S. 313 [91 S.Ct. 1434 ,28 L.Ed.2d 788 ] (1971), and by conditionally approving the "offensive" use of collateral estoppel by a non-party to a prior lawsuit. Parklane Hosiery [Co. v. Shore ,439 U.S. 322 [99 S.Ct. 645 ,58 L.Ed.2d 552 ] (1979) ].
Mendoza ,
In Trans Texas , on appeal from an ex parte PTO reexamination decision, this *1371court declined to apply issue preclusion, stating that the PTO was not a party to the district court infringement litigation where the same term was construed.
This conflict between court decision and agency obligation raises issues of litigation and patent policy, as well as invoking the fundamentals of stare decisis and separation of powers. The adjudication of questions of patent law takes on special significance in light of the purposes of the America Invents Act. The purposes of efficiency, economy, and finality of patent review are lost when judicial determination of the same question of patentability has been completed, including appeal to and decision by the Federal Circuit-yet the decision is ignored and the proceeding repeated by the administrative agency and again appealed to the Federal Circuit; and where, as here, the Federal Circuit reaches a contrary decision.
In B & B Hardware, Inc. v. Hargis Industries, Inc. , --- U.S. ----,
Both this Court's cases and the Restatement make clear that issue preclusion is not limited to those situations in which the same issue is before two courts . Rather, where a single issue is before a court and an administrative agency, preclusion also often applies. Indeed, this Court has explained that because the principle of issue preclusion was so "well established" at common law, in those situations in which Congress has authorized agencies to resolve disputes, "courts may take it as given that Congress has legislated with the expectation that the principle [of issue preclusion] will apply except when a statutory purpose to the contrary is evident."
The Court in B & B Hardware further recited that a district court's prior determination is binding in TTAB proceedings involving the same issue:
Neither is issue preclusion a one-way street. When a district court, as part of its judgment, decides an issue that overlaps with part of the TTAB's analysis, the TTAB gives preclusive effect to the court's judgment.
135 S.Ct. at 1305-06 ; see also id. at 1309-10 (procedural differences between TTAB proceedings and courts do not negate issue preclusion).
Nothing in the America Invents Act suggests a legislative intent to depart from this precedent, and to take the unusual step of excusing the PTO from the rules of preclusion and the effect of prior judicial determination. Here the PTAB, citing this *1372court's ruling in Trans Texas, held that no preclusion arose from the Federal Circuit's decisions concerning the same patent in MEMS Technology . PTAB Op. *12. My colleagues on this panel find "no inconsistency with the PTAB's construction of the claim term 'package' here," Maj. Op. 1364, although the constructions are dispositively inconsistent. And while Power Integrations ,
I suggest that the "consisten[cy]" mentioned in Power Integrations is the wrong inquiry. The question is whether the PTAB decision is precluded by the prior judicial decision, and whether any equitable or due process exception to preclusion may apply. See B & B Hardware, 135 S.Ct. at 1298, 1303. Material to this determination is the purpose of the America Invents Act to provide "a quick and cost effective alternative to litigation." H.R. Rep. 112-98, pt. 1 at 48 (2011). See also Patent Reform: The Future of American Innovation: Hearing Before the Senate Comm. on the Judiciary , 110th Cong. 7 (2007), where PTO Director Jon W. Dudas explained the role of this proposed new agency tribunal:
The idea was that this could serve as a meaningful alternative to litigation, probably less costly, certainly before experts at the Patent and Trademark Office. We also thought that it is very important if you are going to have a second window, if you are going to have a post-grant review, that you have very real estoppel, that you have a choice between litigation and post-grant review, that we should not have a situation where we set up forum shopping or giving several bites at the apple, that there should be true estoppel.
To achieve this purpose, the AIA included the proposed estoppel whereby an agency decision would finally resolve, between the parties, certain issues previously subject only to litigation. However, when litigation has already occurred and been appealed to finality, an ensuing PTAB proceeding is not only redundant-it negates the statutory purposes of efficiency, cost savings, and finality.
The issue of claim construction is a question of law. See Teva Pharm. USA, Inc. v. Sandoz, Inc., --- U.S. ----,
Collateral estoppel is naturally subject to equitable principles, including exceptions and policy considerations. See Restatement (Second) of Judgments §§ 28 - 29 (reporting "Exceptions to the General Rule of Issue Preclusion" and discussing non-mutual "Issue Preclusion in Subsequent Litigation with Others"); see also Parklane Hosiery Co. v. Shore ,
A primary purpose of collateral estoppel in the patent context is the final and uniform resolution of validity issues. In Miken Composites, L.L.C. v. Wilson Sporting Goods Co. , the court "note[d] that the claim construction affirmed in this case is fully consistent with the interpretation given to the same limitation" in prior litigation, and that doing otherwise "would run counter to the Supreme Court's guidance *1373on stare decisis in Markman ."
A purpose of the AIA is to save time and cost, not to double it. The judicial obligation is to implement the statutory purpose. Guided by the Court, both mutual and non-mutual collateral estoppel must be considered. Thus I do not join my colleagues' implicit holding that the PTAB is not bound by the final Federal Circuit decision in MEMS Technology , on the same term of the same claims of the same patent. Where no cogent reason to reject the prior construction of a claim term is presented, no deviation should be permitted. See Markman ,
In MEMS Technology the Federal Circuit, on appeal of an ITC determination, construed the term "package" in the claimed microelectromechanical system as "a self-contained unit that has two levels of connection, to the device and to a circuit (or other system),"
The panel majority holds that the PTAB "properly construed the claim term 'package,' " and does not discuss whether the PTAB is required to follow the prior Federal Circuit construction. Maj. Op. 1356. Judicial finality is not so easily cast aside. On the position that collateral estoppel does not arise in patent cases, neither the patentee nor the public can rely on judicial determination of an issue that might later be taken to the PTAB. This court should recognize the significant legal and economic consequences of conflict between judicial ruling and agency decision, in which patent life and investment resources are consumed in duplicate litigation, with no reliable finality.
The America Invents Act created a unique balance of administrative process and judicial determination, in service to the public benefit of technologic advance. Achieving the optimum balance is critical. The issue of preclusion flagged herein warrants resolution.
Cirrus Logic Inc. v. Knowles Elecs. LLC , No. 15-4342,
Reference
- Full Case Name
- KNOWLES ELECTRONICS LLC, Appellant v. CIRRUS LOGIC, INC., Cirrus Logic International (UK) Ltd., Appellees
- Cited By
- 26 cases
- Status
- Published