Akamai Technologies, Inc. v. Limelight Networks, Inc.

786 F.3d 899, 114 U.S.P.Q. 2d (BNA) 1749, 2015 U.S. App. LEXIS 7856, 2015 WL 2216261
CourtCourt of Appeals for the Federal Circuit
DecidedMay 13, 2015
Docket2009-1372, 2009-1417, 2009-1380, 2009-1416
StatusPublished
Cited by18 cases

This text of 786 F.3d 899 (Akamai Technologies, Inc. v. Limelight Networks, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Akamai Technologies, Inc. v. Limelight Networks, Inc., 786 F.3d 899, 114 U.S.P.Q. 2d (BNA) 1749, 2015 U.S. App. LEXIS 7856, 2015 WL 2216261 (Fed. Cir. 2015).

Opinions

Opinion for the court filed by Circuit Judge LINN.

Dissenting opinion filed by Circuit Judge MOORE.

LINN, Circuit Judge.

This appeal returns to us following remand from the United States Supreme Court. See Limelight Networks, Inc. v. Akamai Techs., Inc., — U.S. -, 134 S.Ct. 2111, 189 L.Ed.2d 52 (2014). Because our prior decisions in BMC Resources, Inc. v. Paymentech, L.P., 498 F.3d 1373 (Fed.Cir.2007), and Muniauction, Inc. v. Thomson Corp., 532 F.3d 1318 (Fed.Cir.2008), directly apply to the facts of this case and because the statutory framework of 35 U.S.C. § 271 does not admit to the sweeping notions of common-law tort liability argued in this case, we again conclude that because Limelight Networks, Inc. (“Limelight”) did not perform all of the steps of the asserted method claims of U.S. Patent No. 6,108,703 (the “'703 patent”) and because the record contains no basis on which to impose liability on Limelight for the actions of its customers who carried out the other steps, Limelight has not directly infringed the '703 patent under § 271(a). Accordingly, we affirm the district court’s finding of nonin-fringement and do not reach Limelight’s cross-appeal regarding damages. We also confirm our previously reinstated affir-mance of the district court’s judgment of noninfringement of U.S. Patents No. 6,553,413 (the “'413 patent”) and No. 7,103,645 (the “'645 patent”). See Akamai Technologies, Inc. v. Limelight Networks, Inc., 629 F.3d 1311 (Fed.Cir.2010), which was vacated, 419 Fed.Appx. 989 (Fed.Cir. [904]*9042011) (en banc), and then partially reinstated. Order No. 2009-1372 (Fed.Cir. Sept. 27, 2012) (en banc).

I. Background

A detailed description of the history of proceedings, the technology and the claims at issue in this case is set forth in the prior reported opinions of this court and the Supreme Court and will not be repeated except to the extent germane hereto. See Limelight, 134 S.Ct. 2111; Akamai Technologies, Inc. v. Limelight Networks, Inc., 692 F.3d 1301 (Fed.Cir.2012) (en banc); Akamai, 629 F.3d 1311.

II. Divided .InfRingement Under § 271(a)

In the court’s view, and for the reasons set forth in more detail, infra, direct infringement liability of a method claim under 35 U.S.C. § 271(a) exists when all of the steps of the claim are performed by or attributed to a single entity — as would be the case, for example, in a principal-agent relationship, in a contractual arrangement, or in a joint enterprise.1 Because this case involves neither agency nor contract nor joint enterprise,' we find that Limelight is not liable for direct infringement.

Direct infringement under § 271(a) requires a party to perform or use each and every step or element of a claimed method. Warner-Jenkinson Co. v. Hilton Davis Chem. Co., 520 U.S. 17, 29, 117 S.Ct. 1040, 137 L.Ed.2d 146 (1997). For method patent claims, direct infringement only occurs when a single party or a joint enterprise performs all of the steps of the process. See Joy Techs., Inc. v. Flakt, Inc., 6 F.3d 770, 775 (Fed.Cir.1993) (“A method claim is directly infringed only by one practicing the patented method.” (emphasis omitted)); Fromson v. Advance Offset Plate, Inc., 720 F.2d 1565, 1567-68 (Fed.Cir.1983) (“Because the [method] claims include the application of a diazo coating’or other light sensitive layer and because Advance’s customers, not Advance, applied the diazo coating, Advance cannot be liable for direct infringement with respect to those plates.”). This holding derives from the statute itself, which states “whoever without authority makes, uses, offers to sell, or sells any patented invention, within the United States or imports into the United States any patented invention during the term of the patent therefor, infringes the patent.” § 271(a). Encouraging or instructing others to perform an act is not the same as performing the act oneself and does not result in direct infringement. BMC, 498 F.3d at 1378-79. This is evidenced by the fact that § 271 has separate subsections addressing induced and contributory infringement. When a party participates in or encourages infringement but does not directly infringe a patent, the normal recourse under the law is for the court to apply the standards for liability under indirect infringement. Id. However, indirect infringement requires, as a predicate, a finding that some party is directly liable for the entire act of direct infringement. Limelight, 134 S.Ct. at 2115. In circumstances in which one party, acting as “mastermind” exercises sufficient “direction or control” over the actions of another, such that those actions may be attributed to the mastermind, the combined performance of the steps of a method claim will directly infringe under § 271(a). BMC, 498 F.3d at 1382. “Under BMC Resources, the control or direction standard is satisfied in situations where the law would traditional[905]*905ly hold the accused direct infringer vicariously liable for the acts committed by another party that are required to complete performance of a claimed method.” Muniauction, 582 F.3d at 1330. This may occur in a principal-agent relationship, a contractual relationship or in circumstances in which parties work together in a joint enterprise functioning as a form of mutual agency.

Akamai asserts that the Supreme Court’s Limelight decision “strongly implies that a change in direction on § 271(a) is warranted.” Br. for Akamai at 3, Akamai, No. 2009-1372 (Fed.Cir. Aug. 18, 2014) (“Akamai’s Letter Br.”). It claims that in lieu of overruling Muniauction, this panel can decline to extend it to the facts of this case. Id. According to Akamai, an accused infringer “directs or controls” a third party if the accused infringer goes beyond loosely providing instructions and specifically tells a third party the step or steps to perform. Id. at 9. In its en banc briefing, Akamai cites joint tortfeasor principles as support. See, e.g., Principal Br. for Pls. Appellants at 21, Akamai, 692 F.3d 1301 (available at 2011 WL 2822716) (citing Restatement (Second) of Agency § 212, cmt. a (discussing the tort principle that “one causing and intending an act or result is as responsible as if he had personally performed the act or produced the result”)); id. at 22 (quoting Restatement (Second) of Torts § 877(a) (subjecting a party to liability for “ordering]” conduct)). Limelight responds that Akamai’s expansive attribution theory “would render both Section 271(b) and Section 271(c) meaningless.” Br. of Def.-Cross-Appellant Limelight Networks, Inc. on Rehearing En Banc at 41, Akamai 692 F.3d 1301 (available at 2011 WL 3796785) (quoting Mark A. Lemley et al., Divided Infringement Claims, 6 Sedona Conf. J. 117, 119-20 (2005) (“Lemley”)).

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786 F.3d 899, 114 U.S.P.Q. 2d (BNA) 1749, 2015 U.S. App. LEXIS 7856, 2015 WL 2216261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/akamai-technologies-inc-v-limelight-networks-inc-cafc-2015.