Knowles Electronics LLC v. Iancu
Dissenting Opinion
On this appeal, there is no appellee. The Petitioner, Analog Devices, Inc., prevailed in the PTO, where the Patent Trial and Appeal Board (PTAB) invalidated all of the challenged claims.
*1379The PTO Director intervened in the appeal "as of right," filed a brief in support of the petitioner's position, and appeared at oral argument as "intervenor."
However, in the rare situation where there is no remaining appellee and the intervenor has asserted no injury to itself, the intervenor of right does not have independent standing to continue the litigation. And even when a party with standing remains on the side in which the intervenor joins, "an intervenor of right must have Article III standing in order to pursue relief that is different from that which is sought by a party with standing." Town of Chester v. Laroe Estates, Inc. , --- U.S. ----,
The Statutory Authorization to Intervene
The America Invents Act authorizes the PTO Director to intervene in appeals to the Federal Circuit from designated classes of inter partes proceedings:
The Director shall have the right to intervene in an appeal from a decision entered by the Patent Trial and Appeal Board in a derivation proceeding under section 135 or in an inter partes or post-grant review under chapter 31 or 32.
If it were indeed intended that the Director would enter the appeal and litigate the merits of the appellee's case although the appellee has quit the contest, surely some mention of this irregular purpose would have appeared in the legislative record. See Whitman v. Am. Trucking Ass'ns, Inc. ,
Following argument of this appeal, we requested additional briefing on this aspect. Knowles' brief accepts the PTO Director's intervention, but objects to the Director's filing of thirty-four pages of additional evidence upon intervening. The Director states that he does not need Article III standing to intervene, and that in all events he has Article III standing. The panel majority bases the Director's Article III standing on the America Invents Act provision that authorizes the Director to intervene. Maj. Op. 1372 n.2. However, as I shall discuss, when no party remains on the side taken by the intervenor, and the intervenor asserts no injury of its own, an intervenor does not meet the requirements of Article III jurisdiction. The AIA, in authorizing intervention, did not and could not create Article III jurisdiction in circumstances where Article III jurisdiction is absent.
*1380"Federal courts are not courts of general jurisdiction; they have only the power that is authorized by Article III of the Constitution and the statutes enacted by Congress pursuant thereto." Bender v. Williamsport Area Sch. Dist. ,
It seems clear that the statutory authorization to the PTO Director to intervene was not intended to change the rules of intervenor standing. In an article following enactment of the AIA, former Director Matal observed that this provision received scant legislative attention. See Joe Matal, A Guide to the Legislative History of the America Invents Act: Part II ,
This silence in the legislative record suggests that the intervenor proposal was not viewed as controversial, or as changing the intervenor's role. I doubt that Congress and the public intended silently to cast aside Constitution-based precedent such as Diamond v. Charles , where the Supreme Court explained that "an intervenor's right to continue a suit in the absence of the party on whose side intervention was permitted is contingent upon a showing by the intervenor that he fulfills the requirements of Article III."
The America Invents Act's grant to the PTO Director of the right of intervention is consistent with the general rule that litigation solely by an intervenor is not permitted unless the intervenor is itself injured by the conduct at issue. "Injury in fact is a constitutional requirement, and '[i]t is settled that Congress cannot erase Article III's standing requirements by statutorily granting the right to sue to a plaintiff who would not otherwise have standing.' " Spokeo, Inc. v. Robins --- U.S. ----,
In elaborating on whether an intervenor may continue the litigation when no party remains on that side of the case, the Court has explained:
The presence of a disagreement, however sharp and acrimonious it may be, is insufficient by itself to meet Art. III's requirements. This Court consistently *1381has required, in addition, that the party seeking judicial resolution of a dispute "show that he personally has suffered some actual or threatened injury as a result of the putatively illegal conduct" of the other party.
Diamond ,
Precedent is clear, that when an intervenor is the only entity remaining on its side of the dispute, the intervenor must have an interest sufficient to satisfy Article III in order to continue the litigation. Where, as here, the PTO Director as intervenor is requesting this court to affirm the PTAB decision, although no party is requesting this action, an independent PTO interest or injury is required, such as a challenge to PTO jurisdiction or procedure.
It is not disputed that Knowles, the losing party in the PTAB inter partes proceeding, has experienced injury and has standing to appeal. The Director states in its supplemental brief that this alone suffices for PTO intervenor standing to continue the appeal when there is no appellee. PTO Suppl. Br. 6 (stating that "Knowles [ ] has a concrete, personalized stake in the outcome" and as such, "[n]othing more is required under Article III"). It is correct that Knowles has a stake in the outcome, and the right to appeal. However, the PTO errs in stating that Knowles' stake provides Article III standing to the PTO as intervenor. In Diamond v. Charles the Court was explicit in stating "an intervenor's right to continue a suit in the absence of the party on whose side intervention was permitted is contingent upon a showing by the intervenor that he fulfills the requirements of Article III."
*1382and continue the action. Arizonans ,
The Director states that "[t]he courts do not inquire into the standing of a party that is not seeking separate affirmative relief." PTO Suppl. Br 1. However, the Director is not a "party." "A 'party' to litigation is '[o]ne by or against whom a lawsuit is brought.' " U.S. ex rel. Eisenstein v. City of N.Y. ,
The question is not whether the PTO Director is authorized to intervene in appeals under the America Invents Act. The question is whether, with that authorization, the PTO intervenor can continue to litigate the appellee's position when the appellee has dropped out and the intervenor has no independent interest or injury. Precedent answers in a clear negative: when no party remains on that side of the case, the intervenor must have independent standing in order to "continue a suit in the[ir] absence." Diamond ,
The Director argues that "[t]he presence of one party with standing is sufficient to satisfy Article III's case-or-controversy requirement" and states that although an appellant must have Article III standing, "[o]ther parties, such as defendants, appellees, or intervenors who are not seeking affirmative relief, need not have constitutional standing for a case to proceed." PTO Suppl. Br. 4. That is not the situation before us. Here there is no party on the petitioner's side of the litigation, no appellee to defend the PTAB decision in its favor. Thus, constitutional standing is required of the intervenor. The Director's citation of Rumsfeld v. Forum for Academic and Institutional Rights, Inc. ,
The PTO also cites ASARCO Inc. v Kadish ,
The PTO states that "even if the USPTO had to show Article III standing, for example if it were to seek relief from a decision of this court, it has Article III standing to participate in this case as the agency that made the decision...." PTO Suppl. Reply Br. 2-3. But the agency that adjudicated a dispute between private parties does not automatically have standing to continue to litigate the appeal as intervenor, after the appellee has quit the contest. For the agency to continue to litigate a terminated dispute, it must have standing as a disputant.
The PTO cites Ingalls Shipbuilding, Inc. v. Director, Office of Workers' Compensation Programs, Department of Labor ,
The Director also argues that the public interest provides the PTO with "Article III standing to appear in this Court to advocate for the correct application of the federal patent laws." PTO Suppl. Br. 9-11. The Director quotes from In re Debs ,
Applying the established rules, unless the Director as intervenor has a concrete and particularized interest such as responding to a challenge to agency jurisdiction or regulations or procedures, the PTO does not have authority as intervenor to litigate when there is no appellee or respondent. If a purpose of the America Invents Act were to enlarge the government's authority to challenge patent validity, such a dramatic change cannot be inferred from legislative silence.
New Evidence Submitted by the PTO as Intervenor
Knowles challenges the PTO's position that as intervenor it can submit "significant *1384new evidence discussing extra-record technology." Knowles Suppl. Br. 1; 5-10. The Director, on intervening, filed a Supplemental Appendix containing thirty-four pages of documents not previously in evidence, from various textbooks and reference works that had been cited by Knowles at the PTAB hearing.
Knowles cites Michigan v. EPA for the "foundational principle of administrative law that a court may uphold agency action only on the grounds that the agency invoked when it took the action." --- U.S. ----,
The PTO states that since these textbooks and reference works were referred to by Knowles, who placed some pages in evidence, the Director "should be able to respond to those assertions based on the entire books and not be forced to rely on that party's characterization of thousands of pages of text." Intervenor's Opp'n to Appellant's Mot. to Strike Portions of Suppl. App. 7. Knowles states that these books indeed contain thousands of pages, and that the filing of thirty-four newly selected pages by the Director intervening on appeal leaves Knowles with "no opportunity to introduce rebuttal factual and expert evidence and with this Court having to act as a court of first instance in the Board's stead." Knowles Suppl. Br. 1.
No reading of the America Invents Act signals a legislative intent to depart from the principle of administrative review set forth in Chenery I . See S.E.C. v. Chenery Corp. ,
If new evidence is deemed important for consideration on appeal, the proper course is to request remand to the agency tribunal, to assure that there is an appropriate opportunity to respond.
CONCLUSION
I respectfully dissent from my colleagues' position. Intervention is designed to permit participation by entities with interests in the matter before the court. When the intervenor does not have an independent interest or injury, and no party remains as appellee on the side favored by the intervenor, the requirements of intervenor status are not met.
Analog Devices, Inc. v. Knowles Elecs. LLC , No. 2015-004989,
Inter partes reexaminations requested before the effective date of the America Invents Act are grandfathered therein. Leahy-Smith America Invents Act, Pub. L. No. 112-29 § 7(e)(4),
An example of appropriate intervention is seen in In re Cuozzo Speed Techs., LLC ,
The majority here notes that it is "follow[ing] the Supreme Court guidance in Cuozzo " on PTO intervention. Maj. Op. 1372, n.2. I note, however, that the Supreme Court did not address intervenor standing in Cuozzo ; the Court mentioned PTO intervention solely in the context of comparing inter partes review to district court litigation, in discussing the PTO's adoption of the "broadest reasonable interpretation." See Cuozzo , 136 S.Ct. at 2144. Nor did Personal Audio, LLC v. Electronic Frontier Foundation concern intervenor standing, for Electronic Frontier Foundation was a party in the PTAB and the appellee on appeal, not an intervenor.
Opinion of the Court
Wallach, Circuit Judge.
Appellant Knowles Electronics LLC ("Knowles") appeals the inter partes reexamination decision of the U.S. Patent and Trademark Office's ("USPTO") Patent Trial and Appeal Board ("PTAB") that affirmed an examiner's findings that (1)
*1372claims 1-2, 5-6, 9, 11-12, 15-16, and 19 of
BACKGROUND
I. The '049 Patent
The '049 patent, entitled "Silicon Condenser Microphone and Manufacturing Method," generally discloses a silicon condenser microphone apparatus, including a housing for shielding a transducer, used in certain types of hearing aids to protect the transducer from outside interferences. See '049 patent, Abstract;
Independent claim 1 is representative of the apparatus claims and discloses:
A silicon condenser microphone package comprising:
a package housing formed by connecting a multi-layer substrate comprising at least one layer of conductive material and at least one layer of non-conductive material, to a cover comprising at least one layer of conductive material;
*1373a cavity formed within the interior of the package housing;
an acoustic port formed in the package housing; and
a silicon condenser microphone die disposed within the cavity in communication with the acoustic port;
where the at least one layer of conductive material in the substrate is electrically connected to the at least one layer of conductive material in the cover to form a shield to protect the silicon condenser microphone die against electromagnetic interference.
A method of manufacturing a silicon condenser microphone package comprising:
providing a panel comprising a plurality of interconnected package substrates, where each of the plurality of package substrates comprises at least one layer of conductive material and at least one layer of non-conductive material;
attaching a plurality of silicon condenser microphone dice to the plurality of package substrates, one die to each package substrate;
attaching a plurality of package covers, each comprising at least one layer of conductive material, to the panel, one package cover to each of the package substrates, where attaching the plurality of package covers to the panel comprises electrically connecting the at least one layer of conductive material in the package cover to the at least one layer of conductive material in the corresponding package substrate to form a shield to protect the silicon condenser microphone die against electromagnetic interference; and
separating the panel into a plurality of individual silicon condenser microphone packages.
DISCUSSION
Knowles argues that the PTAB erred in two respects. First, Knowles argues that the PTAB improperly construed "package," including by failing to consider this court's construction of package for a related patent. See Appellant's Br. 58-73. Second, Knowles argues that the PTAB improperly relied on a new ground of rejection to sustain the Examiner's obviousness findings. See
I. Claim Construction
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 consistent with the specification' standard, or BRI." In re CSB-Sys. ,
B. The PTAB Did Not Err in Its Claim Construction
On appeal, Knowles maintains that the PTAB has "failed to resolve critical claim construction disputes regarding the meaning of the term 'package.' "
The PTAB construed "package" as "a structure consisting of a semiconductor device, a first-level interconnect system, a wiring structure, a second-level interconnection platform, and an enclosure that protects the system and provides the mechanical platform for the sublevel." Analog Devices II ,
We begin with the words of the claims themselves. See Phillips , 415 F.3d at 1314-15. The claims of the '049 patent do not disclose any particular type of required second-level interconnection. See '049 patent col. 12 ll. 16-31 (claim 1), col. 13 l. 21-col. 14 l. 18 (claim 21). While dependent claim 15 contains additional limitations that "include an element" that could be used for mounting, such as "circuitry, ground planes, solder pads, ... capacitors[,] and through hole pads," id. col. 13 ll. 9-13, these limitations, by the doctrine of claim differentiation, cannot apply to limit independent claims 1 or 21, see Phillips , 415 F.3d at 1315 ("[T]he presence of a dependent claim that adds a particular limitation gives rise to a presumption that the limitation in question is not present in the independent claim.").
The '049 patent's specification similarly does not limit the invention to any particular type of second-level connection. See '049 patent col. 1 l. 1-col. 12 l. 13. The specification describes one embodiment in which microphone packages are not mounted via through-hole or surface mount but instead are "coupled" together without mention of a mounting mechanism. See id. col. 11 l. 62-col. 12 l. 7 (describing a package in which "conductive traces may be formed in the various layers of either the top or bottom portion thus allowing multiple microphones to be electrically coupled"); see also J.A. 2903 (explaining by Analog Devices' expert that through-hole and surface mounting "are merely two of many other ways for making [an] interconnection"). Knowles's proffered construction would improperly read this embodiment out of the patent. See Medrad, Inc. v. MRI Devices Corp. ,
We have held that, in some circumstances, previous judicial interpretations of a disputed claim term may be relevant to the PTAB's later construction of that same disputed term. See Power Integrations, Inc. v. Lee ,
Finally, we turn to the extrinsic evidence. See Phillips , 415 F.3d at 1317-19. Knowles asks us to look to one particular piece of evidence that states that "[i ]n general , [integrated circuit] packages can be classified into two categories: 1) through-hole , and 2) surface mount ." Appellant's Br. 70 (first emphasis added) (quoting J.A. 750). The PTAB found the use of the phrase "in general" "permits for possible exceptions" because it describes integrated packages in a non-limiting fashion. Analog Devices I ,
II. New Ground of Rejection
A. Standard of Review and Legal Standard
"Whether the [PTAB] relied on a new ground of rejection is a legal question that we review de novo." In re Stepan Co. ,
B. The PTAB Did Not Rely on a New Ground of Rejection
Knowles argues that the PTAB erred in affirming the Examiner's determination that claims 21-23 and 25-26 would have been obvious over
Having reviewed the record below, we hold that the PTAB did not rely upon a new ground of rejection in its motivation to combine analysis. When rejecting the claims, the Examiner stated, in relevant part, that: "Une does not disclose that the condenser microphone is a silicon condenser microphone. However, Halteren ... shows a package including a silicon condenser microphone...." J.A. 69-70 (citing Halteren col. 5 ll. 10-13). The Examiner went on to state that "[i]t would have been obvious to [a PHOSITA] at the time ... the invention was made to use the silicon condenser microphone of Halteren in Une's invention because the substitution of one known element for another would have yield[ed] predictable results." J.A. 70 (citing KSR Int'l Co. v. Teleflex Inc .,
In reaching its decision, the PTAB also relied on the similarities between Une's capacitor microphone and Halteren's silicon condenser microphone. The PTAB found that both types of microphones operate using the movement of a diaphragm with respect to a fixed electrode. See Analog Devices I ,
The PTAB's rejection relied on the same reasons provided by the Examiner, albeit using slightly different verbiage. Compare
Moreover, Knowles had a fair opportunity to respond to this rejection, which is the "ultimate criterion" for finding no new ground of rejection.
CONCLUSION
We have considered Knowles's remaining arguments and find them unpersuasive. Accordingly, the Final Written Decision of the U.S. Patent and Trademark Office's Patent Trial and Appeal Board is
AFFIRMED
Third-party requester Analog Devices, Inc. declined to defend the judgment in its favor. See Letter from Appellee Analog Devices, Inc. 1, ECF No. 2. Pursuant to
We have an independent obligation to satisfy ourselves that we have jurisdiction. Bender v. WilliamsportArea Sch. Dist .,
Knowles also avers that the PTAB erred in finding certain claims of the '049 patent anticipated by a prior art reference. See Appellant's Br. 74. Because Knowles's anticipation argument is conditioned upon its claim construction argument, see
A patent's prosecution history "consists of the complete record of the proceedings before the [US]PTO," and "provides evidence of how the [US]PTO and the inventor understood the patent." Phillips v. AWH Corp. ,
The term "package" appears in the preamble of the claims. See '049 patent col. 12 l. 16 (claim 1), col. 13 l. 35 (claim 21). A preamble is limiting when it "recit[es] additional structure or steps underscored as important by the specification." Catalina Mktg. Int'l, Inc. v. Coolsavings.com, Inc. ,
Although Knowles uses the term "mounting mechanism" on appeal, it argued for only connections using through-hole or surface mounts below to connect to an external printed circuit board. See Analog Devices I ,
Knowles's argument that the PTAB did not address MEMS Technology until its rehearing decision, see Appellant's Br. 64, does not change this result. Power Integrations did not require the PTAB to evaluate prior constructions at any particular stage of review. See
Knowles does not dispute the findings made by the PTAB that Une and Halteren together teach all of the claimed steps. See Appellant's Br. 56-74.
Knowles argues that the PTAB erred in denying its request for rehearing because the PTAB improperly deemed Knowles to have waived its arguments related to differences between electret microphones and MEMS microphones due to Knowles's failure to raise them before the PTAB. See Appellant's Br. 79-80; see also Analog Devices II ,
Reference
- Full Case Name
- KNOWLES ELECTRONICS LLC, Appellant v. Andrei IANCU, Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office, Intervenor
- Cited By
- 14 cases
- Status
- Published