Al-Site Corporation and Magnivision, Inc. v. Vsi International, Inc. And Myron Orlinsky, Defendants-Cross

174 F.3d 1308
CourtCourt of Appeals for the Federal Circuit
DecidedMay 25, 1999
Docket97-1593, 98-1008
StatusPublished
Cited by202 cases

This text of 174 F.3d 1308 (Al-Site Corporation and Magnivision, Inc. v. Vsi International, Inc. And Myron Orlinsky, Defendants-Cross) 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
Al-Site Corporation and Magnivision, Inc. v. Vsi International, Inc. And Myron Orlinsky, Defendants-Cross, 174 F.3d 1308 (Fed. Cir. 1999).

Opinion

RADER, Circuit Judge.

This case involves patent, trademark, and trade dress infringement. After the United States District Court for the Southern District of Florida interpreted the claims, a jury found that VSI International, Inc. (VSI) had infringed several patents claiming specific hangers for displaying non-prescription eyeglasses. The jury also found trademark and trade dress infringement, and unfair competition. In addition, the jury found VSI’s chairman and CEO, Myron Orlinsky, personally liable for these violations. Although Al-Site Corporation, now Magnivision, Inc. (Magnivision) 1 , prevailed on infringement, it appeals the district court’s claim construction. On review, this court discerns errors in claim construction. Under a correct claim construction, the record contains substantial evidence that VSI infringed Magnivision’s patents. Therefore, this court affirms the patent infringement finding. The record, however, does not contain substantial evidence to support the jury’s findings of trademark and trade dress infringement, unfair competition, or personal liability for Myron Orlinsky. Therefore, this court reverses those judgments.

I.

Magnivision and VSI both sell non-prescription eyeglasses. Magnivision is the assignee of U.S. Patent Nos. 4,976,532 (the ’532 patent), 5,144,345 (the ’345 patent), 5,260,726 (the ’726 patent), and 5,521,-911 (the ’911 patent). These patents claim technology for displaying eyeglasses on racks. The claimed inventions allow consumers to try on eyeglasses and return them to the rack without removing them from their display hangers.

Magnivision sued VSI, as well as its chairman and CEO, Myron Orlinsky, in his individual capacity, for infringement of the Magnivision patents, for infringement of Magnivision’s MAGNIVISION trademark and the trade dress of various products, and for unfair competition under Florida law. Six years after filing, the district court conducted a jury trial. After interpreting the claims, the district court instructed the jury to apply its construction of the claims to determine infringement.

The jury determined that one of VSI’s products (the Version 1 hanger tag) literally infringed the ’532 patent. The jury also determined that a second VSI product (the Version 2 hanger tag) did not literally infringe the ’345, ’726, and ’911 patents, but did infringe those patents under the doctrine of equivalents. The jury further concluded that the Magnivision patents were not invalid under 35 U.S.C. § 103. Additionally, the jury found that VSI had infringed Magnivision’s trademark and trade dress and had engaged in unfair competition. Finally, the jury imposed personal liability on Myron Orlinsky, making him jointly and severally liable for the damage award.

Following the jury verdict, Magnivision moved for judgment as a matter of law that the Version 2 hanger tag literally infringed the ’345, ’726, and ’911 patents. VSI’s post-trial motion sought to reverse all of the jury’s determinations. The dis- *1315 triet court denied both motions and both parties appeal. Specifically, Magnivision challenges the district court’s claim construction of the ’345, ’726, and ’911 patents, arguing that the claims, if properly construed, would have been literally infringed by VSI’s Version 2 hanger tag. VSI, on the other hand, contends that the district court’s claim construction was correct but challenges the jury’s determinations for lack of substantial evidence to support a verdict.

II.

This court reviews the district court’s denials of the motions for judgment as a matter of law using the same standards applied by the district court. See Markman v. Westview Instruments, Inc., 52 F.3d 967, 975, 34 USPQ2d 1321, 1326 (Fed.Cir.1995), aff'd, 517 U.S. 370, 116 S.Ct. 1384, 134 L.Ed.2d 577, 38 USPQ2d 1461 (1996). This court will only upset a jury verdict if the record lacks substantial evidence to support the verdict. See Motorola, Inc. v. Interdigital Tech. Corp., 121 F.3d 1461, 1466, 43 USPQ2d 1481, 1484 (Fed.Cir.1997); Markman, 52 F.3d at 975.

Literal Infringement of the ’532 patent

The jury determined that the Version 1 hanger tag literally infringes claims 8, 9, 14, 15, and 17 of the ’532 patent. Claim 8, the independent claim from which the other infringed claims depend, claims the combination of a pair of eyeglasses and a hanger means for removably mounting the eyeglasses on a cantilevered support. The claim itself gives some structural definition of the hanger means as “including a body having aperture means adapted” for suspending the hanger and'eyeglasses on the cantilevered support. Additionally, the hanger means includes an extension projecting from the bottom edge portion of the hanger body. This extension encircles the nose bridge of the eyeglasses. The claim specifies that “fastening means in engagement with said extension” hold the extension in a closed loop. Figure 1 from the ’532 patent illustrates these claimed features:

[[Image here]]

The district court determined that the “fastening means” was a means-plus-function element subject to the interpretation requirements of 35 U.S.C. § 112, ¶ 6 (1994). Consistent with that determination, the trial court instructed the jury that “the fastening means ... is either a rivet or a button and hole arrangement as shown in the ’532 patent or the structural equivalents thereof.” Neither party challenges this part of the district court’s claim construction.

*1316 On appeal, VSI contends that its Version 1 hanger tag does not infringe because it does not include the “fastening means” required by claim 8. VSI’s Version 1 hanger tag is a one-piece paper sticker having two large portions connected by a narrow extension. The entire back of the tag, including the extension, is coated with an adhesive. Backing paper covers the adhesive to prevent undesired adhesion. In use, a merchant removes the backing paper from the large portions of the tag. The extension (still covered with backing paper) then wraps around the nose bridge of the glasses. This wrapping glues the large portions together. In use, therefore, glue secures the two large portions of the tag to each other, leaving the narrow extension of the tag wrapped around the bridge of the eyeglasses.

The adhesive used by VSI is not identical to the fastening structure (namely, a rivet or button) described in the ’532 patent. The jury, however, applying the rules of § 112, ¶ 6, determined that the VSI adhesive was equivalent to the structure disclosed in the specification. Accordingly, the jury returned a verdict of literal infringement of the ’532 patent. VSI argues that substantial evidence does not support the jury’s finding of literal infringement.

VSI first challenges the jury determination that adhesive is structurally equivalent to the mechanical fasteners disclosed in the specification of the ’532 patent. Magnivision’s technical expert, Mr.

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Bluebook (online)
174 F.3d 1308, Counsel Stack Legal Research, https://law.counselstack.com/opinion/al-site-corporation-and-magnivision-inc-v-vsi-international-inc-and-cafc-1999.