Arctic Cat Inc. v. Gep Power Products, Inc.
Opinion
Arctic Cat Inc. owns U.S. Patent Nos. 7,072,188 and 7,420,822, which are both titled "Power Distribution Module for Personal Recreational Vehicle." The patents describe an assertedly inventive electrical-connection box having an array of receptacle openings that allow wires to be arranged and secured in various positions for distributing power to various electrical components, including components of a personal recreational vehicle. GEP Power Products, Inc. petitioned the Patent Trial and Appeal Board for inter partes reviews of all claims of both patents. The Board determined that all claims of the '188 and '822 patents are unpatentable.
Arctic Cat appeals. It argues principally that the Board erred by (1) rejecting Arctic Cat's submission of the full transcript of its inventor's deposition, (2) construing various claim preambles as not stating limitations on the claimed inventions, and (3) finding
I
A
The '822 patent issued from an application that was a continuation of the application from which the '188 patent issued. The patents claim the same priority date of October 29, 2002, when the application for the '188 patent was filed, and they have essentially the same specification. The specification describes a power distribution module, which includes a housing and a cover. '188 patent, col. 1, lines 61-64;
*1323 '822 patent, col. 2, lines 5-7. The interior of the housing includes a "component attachment portion," which is a wall with an array of electric-receptacle openings meant for "receiving and securing electrical components." '188 patent, col. 1, line 61 through col. 2, line 1; '822 patent, col. 2, lines 8-11. The module also includes a distribution harness with electrical conductors that connect electrical components to the receptacles and facilitate power distribution. '188 patent, col. 2, lines 1-6; '822 patent, col. 2, lines 12-16. The specification states that "[a]nother aspect of the present invention is directed to a personal recreational vehicle having an electrical distribution system" that includes the same power distribution module. '188 patent, col. 2, lines 7-9; '822 patent, col. 2, lines 17-19. The invention is purportedly useful because standardization of components across different vehicle models reduces manufacturing time and costs. See '188 patent, col. 1, lines 38-55; '822 patent, col. 1, lines 50-67.
In the '188 patent, claims 1, 11, and 19 are independent. Claim 1 reads:
1. A power distribution module for a personal recreational vehicle comprising:
a housing defining an interior, including a component attachment portion and a cover, the cover comprising a first surface substantially surrounding the perimeter thereof, the first surface conforming to a first edge surrounding the perimeter of the component attachment portion, the component attachment portion comprising a fastener secured thereto proximate the first edge thereof, the fastener selectively securing the component attachment portion to the cover having the first surface of the cover in engagement with the first edge of the component attachment portion, the housing further including a plurality of receptacle openings in a wall in the component attachment portion, wherein the receptacle openings are spaced-apart in rows and columns of openings, the spacing between the rows and the spacing between the columns being substantially the same for receiving and securing at least one electrical component within the housing across multiple rows or across multiple columns of openings; and
a distribution harness having a plurality of electrical conductors, wherein the electrical conductors electrically cooperate with the receptacle openings to connect to the at least one electrical component, wherein the conductors are adapted to distribute power.
'188 patent, col. 7, lines 5-30. The preamble of claim 11 is the same as the preamble of claim 1: "[a] power distribution module for a personal recreational vehicle."
Compare
In the '822 patent, claims 1, 5, and 10 are independent. Claim 1 reads:
1. A personal recreational vehicle comprising:
an electrical distribution system for distributing electrical signals and power, the electrical distribution system including a power distribution module, wherein at least a portion of the electrical signals and power passes through the power distribution module, the power distribution module including:
a housing having a plurality of receptacle openings in a substantially flat wall, the wall having a front side and a back side, wherein the receptacle openings are positioned in an array of at least three equally spaced-apart rows and at least three equally spaced-apart columns, the receptacle openings positioned to receive electrical components on the front side of the wall across any *1324 adjacent openings in at least one row of the array; and
a distribution harness on the backside of the wall opposite the receptacle openings, the distribution harness having a plurality of electrical conductor cables, wherein the electrical conductor cables electrically cooperate with the receptacle openings for receiving electrical components.
'822 patent, col. 7, lines 7-27. Claim 5's preamble recites an "electrical distribution module for a vehicle,"
B
In July 2016, GEP filed petitions for inter partes reviews of the '188 and '822 patents under
After the Board instituted its reviews, Arctic Cat filed its Patent Owner Responses on April 3, 2017. In its responses, Arctic Cat relied on statements in a declaration by Mr. Darrel Janisch, an Arctic Cat employee and the sole inventor listed on the '188 and '822 patents. GEP cross-examined Mr. Janisch in a deposition on May 25, 2017. GEP filed its replies in the two proceedings on June 30, 2017, citing statements that Mr. Janisch made during his deposition. Rather than filing the full deposition transcript with its replies, GEP submitted only the portions it cited. Nearly three months later, on September 20, 2017, Arctic Cat submitted the full deposition transcript to the Board, without any request for permission. In orders dated the same day, the Board expunged that submission from the record. Citing
The Board issued its final written decisions on December 5, 2017. GEP Power Prods., Inc. v. Arctic Cat Inc. , No. IPR2016-01385 (P.T.A.B. Dec. 5, 2017), Paper No. 27 ( '188 Board Decision ); GEP Power Prods., Inc. v. Arctic Cat Inc. , No. IPR2016-01388 (P.T.A.B. Dec. 5, 2017), Paper No. 31 ( '822 Board Decision ).
As an initial matter, the Board rejected part of Arctic Cat's argument that certain language in the claim preambles is limiting, i.e. , defines the inventions to be assessed for patentability. Specifically, the Board concluded that the asserted claims in the '188 patent are not limited by preamble language referring to a personal *1325 recreational vehicle and that the same is true of claims 1-4 of the '822 patent. '188 Board Decision at 9-12; '822 Board Decision at 9-12. With respect to those claims, the Board reasoned that "the claim bodies ... describe structurally complete inventions" that do not include personal recreational vehicles and that the preambles "recite[ ] only an intended use for the otherwise complete claimed apparatus." '188 Board Decision at 11; see '822 Board Decision at 9-12. The Board did not decide the limiting effect of preamble language in claims 5-10 of the '822 patent, deeming such a decision unnecessary because, for those claims, Arctic Cat did not rely on the preambles in opposing GEP's unpatentability challenge, at least with respect to the ground relying on Svette and Matsuoka. '822 Board Decision at 10. 2
Next, the Board addressed the prior-art status of Boyd, whose filing date of April 1, 2002, is about seven months before the October 2002 filing date of the '188 patent (to which the '822 patent claims priority). The Board concluded that Boyd is prior art to those patents under
First, the Board rejected Arctic Cat's arguments that the '188 and '822 patents were entitled to a priority date before April 1, 2002, because Mr. Janisch conceived the inventions at issue before that date and diligently worked to reduce them to practice. '188 Board Decision at 15-22; '822 Board Decision at 14-22. The Board relied entirely on the diligence requirement in rejecting Arctic Cat's argument for antedating Boyd; it did not question Mr. Janisch's conception before April 2002. 3 Arctic Cat offered a declaration from Mr. Janisch, including a timeline of important emails during the relevant months. But the Board determined that Mr. Janisch's timeline lacked a "sufficiently detailed explanation of events occurring between the bookend communications." '188 Board Decision at 18; '822 Board Decision at 17-18.
Second, the Board rejected Arctic Cat's additional arguments against use of Boyd as prior art-namely, that the relevant, allegedly anticipatory portions of Boyd are not actually "by another," as required by
*1326
Ultimately, the Board held all claims of the '188 and '822 patents unpatentable on all instituted grounds, relying on Boyd at least in part with respect to most, though not all, of the claims and grounds.
'188 Board Decision
at 39;
'822 Board Decision
at 38. Arctic Cat timely appealed the Board's decisions. We have jurisdiction under
II
Arctic Cat first challenges the Board's decision to expunge from the record the full transcript of Mr. Janisch's deposition that Arctic Cat submitted. We review such an evidentiary decision for an abuse of discretion.
See
Belden Inc. v. Berk-Tek LLC
,
Arctic Cat's main point relies on a regulation that addresses numerous aspects of the taking and use of deposition testimony, namely,
Except where the parties agree otherwise, the proponent of the testimony must arrange for providing a copy of the transcript to all other parties. The testimony must be filed as an exhibit .
§ 42.53(f)(7) (emphasis added).
Arctic Cat contends that the best reading of the quoted regulatory language is that, when a party submits some testimony from a deposition, that party (the proponent) must submit the transcript of the entire deposition, or that, in any event, the adversary party may submit the entire transcript if the proponent of the testimony does not. At least one Board panel in another inter partes review concluded that the proponent of any deposition testimony is indeed obliged to file the full transcript.
See
Zhongshan Broad Ocean Motor Co. v. Nidec Motor Corp.
, No. IPR2014-01121 (P.T.A.B. Sept. 10, 2015), Paper No. 42, at 2.
4
If Arctic Cat's reading of the regulation is right, the regulation may well provide the authorization that the Board found missing when it invoked its discretion under
But we need not decide whether Arctic Cat's reading is correct. Even if the regulation provides for submission of a full transcript in the way Arctic Cat argues, the regulation does not say that the submission at issue here-made by Arctic Cat after GEP submitted excerpts as a proponent of deposition testimony given by Mr. Janisch-may be made at any time. Arctic Cat sensibly agrees that the Board has discretion to decide when a filing is too late. Oral Arg. at 10:21-38, http://oralarguments.cafc.uscourts.gov/default.aspx?fl=2016-1374.mp3. The Board concluded that Arctic Cat did not "explain[ ] why ... the transcript could not have been filed earlier (for example, by the due date *1327 in the Scheduling Order for Motions for Observation)." J.A. 81. Given the strong statute-based interest in expedition in inter partes reviews, we see no basis for deeming the Board's expungement decision in this case to be an abuse of discretion.
III
Arctic Cat next challenges the Board's determination that certain preamble language in certain claims of the '188 and '822 patents is not limiting. Before the Board, the only aspect of the preamble language that Arctic Cat meaningfully argued to be limiting is language referring to a "personal recreational vehicle"; Arctic Cat did not argue that the label "power distribution module" in the preambles is limiting. The Board therefore confined its preamble analysis to the contention about the "personal recreational vehicle" language. So do we.
We look to case law from our court and its predecessor. The effect of preamble language is not addressed in the statute, which does not mention preambles. Only one regulation promulgated by the Patent and Trademark Office addresses preambles,
As an overarching idea, we have said that "[i]n general, a preamble limits the invention if it recites essential structure or steps, or if it is 'necessary to give life, meaning, and vitality' to the claim."
Catalina Mktg. Int'l, Inc. v. Coolsavings.com, Inc.
,
Those general formulations have for decades been implemented through a number of more concrete and objective rules.
Catalina
,
We have treated the effect of preamble language as a claim-construction issue.
See
Deere
,
*1328
Hamilton Beach Brands, Inc. v. f'real Foods, LLC
,
A
The preambles in claims 1 and 11 of the '188 patent recite "[a] power distribution module for a personal recreational vehicle." The Board determined that those preambles are not limiting because the bodies of claims 1 and 11 "describe structurally complete inventions" and the preambles refer to a personal recreational vehicle only as an intended use. '188 Board Decision at 11. We agree.
We have long ruled that "a preamble is not limiting 'where a patentee defines a structurally complete invention in the claim body and uses the preamble only to state a purpose or intended use for the invention.' "
Catalina
,
In its discussion of claims 1 and 11, the Board correctly noted the following:
[T]hose claims recite limitations including ... a housing with a component attachment portion and a cover, a plurality of receptacles in the component attachment portion, and a distribution harness having a plurality of electrical conductors that electrically cooperate with the receptacles to connect to at least one electrical component. The bodies of those claims do not recite a personal recreational vehicle.
'188 Board Decision
at 11. Moreover, in the preambles, the reference to a "personal recreational vehicle" merely identifies an intended use for the claimed power distribution module. This preamble language does not claim the vehicle; it claims only the module (the name for what is defined in the bodies of the claims) and identifies a use for that module-in a personal recreational vehicle. Arctic Cat has not demonstrated that the identified use itself imposes any structural requirement on the claimed module beyond what is required by the bodies of the claims. Nor has it shown any "reliance on the preamble during prosecution to distinguish the claimed invention from the prior art."
Catalina
,
*1329
For these preambles, therefore, the result is controlled by the principle that "a preamble is not limiting 'where a patentee defines a structurally complete invention in the claim body and uses the preamble only to state a purpose or intended use for the invention.' "
B
For the '822 patent, as we have noted, a preamble issue is presented only by claim 1 (and dependent claims 2-4). The preamble of claim 1 recites "[a] personal recreational vehicle." The Board determined that this preamble is non-limiting, essentially for the same reasons as for claims 1 and 11 of the '188 patent. Compare '822 Board Decision at 9-12, with '188 Board Decision at 9-12. We agree.
This claim language does recite "additional structure" (the personal recreational vehicle) over and above the structure recited in the body of the claims (the power distribution module). But not every preamble reference to additional structure is limiting, even when the structure is noted in the specification-even, indeed, when the structure is "underscored as important by the specification."
See
Catalina
,
The rules we have articulated about what preamble language reciting structure
is
limiting are telling about what is missing here. The vehicle language here does not supply "antecedent basis" for terms in the body defining a module; nor does it supply structure needed to make the body itself a "structurally complete invention."
Moreover, the structure recited in the preamble is identified only as a "personal recreational vehicle," and what the specification says about it is distinctly limited. The Summary of the Invention in the specification, after stating that "[o]ne aspect of the present invention" is the module, '188 patent, col. 1, lines 60-61; '822 patent, col. 2, lines 3-5, does go on to state that "[a]nother aspect of the present invention is directed to a personal recreational vehicle" having claimed features regarding electrical distribution, '188 patent, col. 2, lines 7-8; '822 patent, col. 2, lines 17-18. And Figure 1 shows a vehicle, not just the module. But the "aspect" statement is conclusory, and the figure is skeletal. What is missing in the specification is any identification of a feature of the vehicle that is asserted to be an improvement other than the "power distribution module" as described in the various claims. The vehicle in the preamble is entirely conventional apart from the improvement in the body of
*1330
the claims. In this respect, the preamble here differs crucially from those in cases such as
Proveris Scientific Corp. v. Innovasystems, Inc.
,
The relation between the preamble and body here makes the claim language here almost fit-but not actually fit-a pattern addressed in longstanding case law about claims in
Jepson
form. We have long held that preamble language is limiting when the claim recites a combination in the way specified in the one PTO regulation on preambles,
i.e.
, by describing the "conventional or known" elements in a "preamble," followed by a transition phrase "such as 'wherein the improvement comprises,' " and then an identification of elements that "the applicant considers as the new or improved portion."
For those reasons, we hold that the preamble of claim 1 of the '822 patent does not limit claims 1-4 of that patent.
IV
Arctic Cat argues that the Board incorrectly ruled that Boyd, having a filing date (and hence relevant priority date) of April 1, 2002, is prior art for purposes of the two patents at issue here, which on their faces claim priority only to October 29, 2002. We agree with Arctic Cat.
It is undisputed that, for Boyd to be prior art, it must come within
Arctic Cat challenges the Board's conclusions on both the antedating and "by another" issues. We agree with Arctic Cat that the Board erred in its rejection of Arctic Cat's proof that Mr. Janisch's inventions antedate April 1, 2002. We therefore do not reach the "by another" issue.
*1331
Antedating of Boyd in this case required that Mr. Janisch have (1) conceived of the inventions at issue before April 1, 2002, and (2) diligently reduced the conceptions to practice.
See
Perfect Surgical Techniques, Inc. v. Olympus America, Inc.
,
"Reasonable diligence must be shown throughout the entire critical period, which begins just prior to the competing reference's effective date and ends on the date of the invention's reduction to practice."
Crucially for this case, diligence need not be perfectly continuous-only
reasonably
continuous.
We conclude that the records in the two proceedings before us (which are materially identical) establish that Mr. Janisch was reasonably diligent during the critical period so as not to have abandoned his invention or unreasonably delayed its reduction to practice. The Board concluded that the evidence did not establish diligence throughout the period from April 1, 2002, to October 29, 2002. '188 Board Decision at 22. 6 But the Board's analysis rested on too rigid a standard, and the record establishes diligence under the correct standard.
Mr. Janisch submitted a declaration that included a 2002 timeline with citations to exhibits to demonstrate his efforts to reduce his invention to practice. J.A. 1584-86. The Board took issue with some of the date ranges in that timeline, particularly from April 1 to April 29 and from August 16 to October 18. '188 Board Decision at 18-19. Although the Board said that it was not "scour[ing] the record for gaps in activity," it criticized Mr. Janisch for not "account[ing] for" approximately half of the days during the critical period. Id. at 19-20. It also faulted Mr. Janisch for providing "conclusory explanations, which lack specifics as to facts and dates." Id. at 21.
*1332
But in the context of this case, the details the Board found missing from Mr. Janisch's explanation do not suggest lack of reasonable diligence. During the identified gaps in Mr. Janisch's personal activity, the invention was being tested at Mr. Boyd's employer, Tyco, hired by Arctic Cat for that purpose.
See
id.
at 20. Lack of diligence cannot be inferred from putting the invention into someone else's hands for needed testing and awaiting test results for a short period commensurate with the testing need, at least where oversight was diligent. That course of action, as a way of reducing an invention to practice, does not give rise to an inference of unreasonable delay or abandonment of the invention.
See
Perfect Surgical
,
Here, the evidence confirms Mr. Janisch's diligent oversight-indeed, his persistence in moving the project of reduction to practice through multiple stages in a timely manner. The product specifications and test protocols went through five revisions in only five months. Compare J.A. 1621 (revision 3 on March 15, 2002), with J.A. 1632 (revision 8 on August 16, 2002). Mr. Janisch pressed for progress. In an internal email dated May 17, 2002, Mr. Janisch asked with apparent urgency about getting supplies needed for testing: " How soon can we expect to receive the ... decals?" J.A. 1625 (emphasis added). In another email, dated August 16, 2002, Mr. Janisch directed Tyco: "Please keep us appraised of Tyco test results, as they are completed ." J.A. 1632 (emphasis added). There is no substantial evidence of any meaningful inattention to the task of reducing the invention to practice. Reviewing all the evidence under a rule of reason, we conclude that the only possible result on this record is that Mr. Janisch was reasonably diligent in reducing his invention to practice.
There being no dispute about conception before April 2002, we hold that Mr. Janisch's invention antedated Boyd. It follows that Boyd is not available as prior art against the '188 and '822 patents. In light of that holding, we do not reach the issue of whether Boyd is "by another" under § 102(e).
V
Our resolution of the above issues has the following consequences for the Board's unpatentability rulings.
For the '188 patent, the Board determined that claims 1-6, 11, 19, 22, and 23 are unpatentable as anticipated by Boyd. The Board also determined that claims 12-18 are unpatentable for obviousness over Boyd, Svette, and Caveney. Those two instituted grounds, as presented by GEP to the Board, depend on Boyd being prior art. Because we hold that Boyd is not prior art, we reverse the Board's unpatentability rulings on the first and second instituted grounds.
The Board addressed a third instituted ground, ruling that claims 1-12 and 19-23 are unpatentable for obviousness over Svette alone. In so ruling, however, the Board relied on Boyd as evidence of background knowledge that a relevant artisan would have used to properly read Svette.
'188 Board Decision
at 35 (citing
Randall Mfg. v. Rea
,
*1333 For the '822 patent, the Board determined, among other things, that all the claims, namely, claims 1-10, are unpatentable for obviousness over Svette and Matsuoka. That ruling is not undermined by our holding that Boyd is not prior art. Nor are we persuaded that the Board committed any other error undermining its unpatentability determination as to those claims based on Svette and Matsuoka. Contrary to Arctic Cat's contentions, we do not think that the Board shifted the burden of proving unpatentability to Arctic Cat or that the Board erred in finding what Matsuoka teaches. As to the '822 patent, we therefore affirm the Board's decision.
VI
We have considered the remaining arguments presented to us, but we find them unpersuasive. Accordingly, the Board's decision on the '188 patent is reversed in part and vacated in part, and the matter is remanded for further proceedings consistent with this opinion. The Board's decision on the '822 patent is affirmed.
No costs.
REVERSED IN PART, VACATED IN PART, AND REMANDED IN APPEAL NO. 2018-1520
AFFIRMED IN APPEAL NO. 2018-1521
As the parties agree, this case is governed by the Title 35 provisions in effect before the changes made by the Leahy-Smith America Invents Act (AIA), Pub. L. No. 112-29,
In this court, Arctic Cat does not contend that the Board erred in not deciding the preamble issue for claims 5-10 of the '822 patent. Moreover, when challenging the Board's determination of unpatentability of all the '822 patent 's claims based on Svette and Matsuoka, Arctic Cat relies on the preambles only for claims 1-4, not for the other challenged claims of the '822 patent. Br. for Appellant at 41, 51. For the '822 patent, therefore, we decide the limiting effect of the preambles only for claims 1-4.
GEP has not sought a remand on the conception issue if we disagree with the Board on diligence. We therefore take conception before April 2002 as settled.
Until May 2015, the second sentence of § 42.53(f)(7) stated that the testimony "must be filed by the proponent" of the testimony. The Director deleted "by the proponent" in order "[t]o clarify that either party is permitted to file testimony as an exhibit."
Claim 5 of the '822 patent refers in the body to "the conductor cables extending from the housing to route power signals throughout the vehicle." We do not address that reference to "the vehicle," because we do not have a preamble issue as to claim 5 before us.
We cite only the '188 Board Decision . The '822 Board Decision is materially identical on the issue.
Reference
- Full Case Name
- ARCTIC CAT INC., Appellant v. GEP POWER PRODUCTS, INC., Appellee
- Cited By
- 27 cases
- Status
- Published