Akeva L.L.C. v. Nike, Inc.

Court of Appeals for the Federal Circuit·Decided July 16, 2020·No. 19-2249·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

AKEVA L.L.C.,

Counterclaimant-Appellant

v.

NIKE, INC., ADIDAS AMERICA, INC.

Counter-Defendants-Appellees

2019-2249

Appeal from the United States District Court for the Middle District of North Carolina in No. 1:09-cv-00135- LCB-JEP, Judge Loretta C. Biggs.

Decided: July 16, 2020

MATIAS FERRARIO, Kilpatrick Townsend & Stockton LLP, Winston-Salem, NC, for counter-defendant-appellee Adidas America, Inc. Also represented by MITCHELL G. STOCKWELL, Atlanta, GA.

CHRISTOPHER J. RENK, Banner & Witcoff, Ltd., Chicago , IL, for counter-defendant-appellee Nike, Inc. Also represented by MICHAEL JOSEPH HARRIS, JANICE V. MITRIUS, VICTORIA R. M. WEBB, KEVIN DAM.

2 AKEVA L.L.C. v. NIKE, INC.

DANIEL A. KENT, Kent & Risley, LLC, Alpharetta, GA, for counterclaimant-appellant. Also represented by STEPHEN ROBERT RISLEY, CORTNEY ALEXANDER, OLIVIA MARBUTT, SAMUEL NAJIM.

Before NEWMAN, O’MALLEY, and CHEN, Circuit Judges.

CHEN, Circuit Judge.

Akeva L.L.C. (Akeva) owns a portfolio of footwear patents including U.S. Patent Nos. 5,560,126 (’126 patent); 6,966,130 (’130 patent); 7,114,269 (’269 patent); 5380,350 (’350 patent); and 7,540,099 (’099 patent); (collectively, the Asserted Patents). The ’130, ’269, ’350, and ’099 patents all claim priority to the ’126 patent and are referred to as the Continuation Patents. Asics filed for declaratory judgment that it does not infringe the Asserted Patents and, in response, Akeva countersued for patent infringement. Akeva also added Nike, Inc., adidas America, Inc., New Balance Athletic Shoe, Inc., and Puma North America, Inc. to the suit alleging infringement of certain claims of the Asserted Patents. The district court granted the Defendants summary judgment of no infringement as to the ’126 patent , and invalidity as to the asserted claims of the Continuation Patents. Akeva now appeals. Because the district court correctly construed the claim term “rear sole secured” to exclude conventional fixed rear soles and also properly concluded that the Continuation Patents are not entitled to claim priority to the ’126 patent, we affirm the district court’s grant of summary judgment.

BACKGROUND

The Asserted Patents describe improvements to athletic shoe rear soles and midsoles. The specification of the ’126 patent describes the problem of rear sole wear in which “the heel typically wears out much faster than the rest of the athletic shoe, thus requiring replacement of the entire shoe even though the bulk of the shoe is still in

AKEVA L.L.C. v. NIKE, INC. 3

satisfactory condition.” ’126 patent col. 1 ll. 30–33. “Another problem associated with outsole wear is midsole compression .” Id. at col. 1 ll. 34–35. The ’126 patent specification explains that “after repeated use, the midsole is compressed, . . . thereby causing it to lose its cushioning effect.” Id. at col. 1 ll. 37–39. “[I]n accordance with the purpose of the invention,” the Summary of the Invention describes a shoe having “a rear sole detachably secured or rotatably mounted to the heel support.” Id. at col. 3 ll. 25– 42. The specification describes that midsole compression can be alleviated by placing a graphite insert into the midsole . Id. at col. 3 ll. 34–42. The Abstract likewise describes the invention as “[a] shoe includ[ing] a heel support for receiving a rotatable and replaceable rear sole to provide longer wear. The shoe may also include a graphite insert supported by the heel support between the heel and the rear sole to reduce midsole compression and provide additional spring.” ’126 patent Abstract. The ’126 patent thus discloses a solution to the problem with a conventional fixed rear sole by replacing it with either a detachable rear sole that can be replaced or a rear sole that is rotatable.

The Continuation Patents claim priority to the ’126 patent through a chain of intervening continuations, including the previously litigated U.S. Patent No. 6,604,300 (’300 patent). The ’300 patent is a continuation-in-part of the ’126 patent. In a previous appeal, we found that the ’300 patent specification disclaimed conventional fixed rear soles, thus preventing the claims of the ’300 patent from encompassing shoes with a conventional fixed rear sole. Akeva L.L.C. v. Adidas-Salomon AG, 208 F. App’x 861, 864–65 (Fed. Cir. 2006) (Akeva I). In keeping with the disclosure of the ’300 patent, we construed the claim term “rear sole secured”—the same disputed claim term we confront here for the ’126 patent—to mean “selectively or permanently fastened, but not permanently-fixed into position.” Id. at 864. More specifically, this means that the “rear soles that can be rotated or replaced,” but they are 4 AKEVA L.L.C. v. NIKE, INC.

not permanently fixed in position. Id. at 865. As filed, the ’296 continuation patent had the same specification as the ’300 patent, including the disclaimer, but Akeva amended the specification during prosecution to circumvent the disclaimer language relied on in Akeva I and filed an Information Disclosure Statement (IDS) disclosing our decision in Akeva I and a statement explaining that it intended to rescind that disclaimer from the ’296 patent. Asics Am. Corp. v. Akeva L.L.C., 1:09–cv–00135, at 29–30 (M.D.N.C. Mar. 29, 2019) (Asics). The remaining Continuation Patents are continuations of the ’296 patent and either included these amendments at filing or similarly amended the specification during prosecution. Id.

In the present case, all of the accused shoes have a conventional fixed rear sole, and, in a motion for summary judgment, Defendants argued that the term “rear sole secured ” in claim 25 of the ’126 patent, just as with the claims of the ’300 patent asserted in Akeva I, could not include a shoe with a conventional fixed rear sole. Claim 25 states:

25. A shoe comprising:

an upper having a heel region; a rear sole secured below the heel region of the upper; and a flexible plate having upper and lower surfaces and supported between at least a portion of the rear sole and at least a portion of the heel region of the upper, peripheral edges of the plate being restrained from movement relative to an interior portion of the plate in a direction substantially perpendicular to a major axis of the shoe so that the interior portion of the plate is deflectable relative to the peripheral edges in a direction substantially perpendicular to the major axis of the shoe.

AKEVA L.L.C. v. NIKE, INC. 5

’126 patent claim 25 (emphasis added).

As an initial matter, the district court in the present case declined to apply collateral estoppel against Akeva’s proposed construction, in light of the final decision in Akeva I as to the meaning of “rear sole secured,” because the ’300 patent is a continuation-in-part of the ’126 patent and the patents, although very similar in content, do not share an identical written description. Asics at 4. Nevertheless, after thoroughly reviewing the ’126 patent specification, the district court found that the ’126 patent disclaimed conventional fixed rear soles from its invention, concluding that “rear sole secured,” in the context of the ’126 patent, means “rear sole selectively or permanently fastened, but not permanently fixed into position.” See id. at 18–19. In other words, the rear sole could be (1) detachable or (2) attached and rotatable, but a conventional fixed rear sole is not within the scope of the claim term. The district court thus entered summary judgment that Defendants did not infringe the ’126 patent.

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