Alterwan, Inc. v. amazon.com, Inc.

Court of Appeals for the Federal Circuit·Decided September 11, 2026·No. 25-1285·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

ALTERWAN, INC., Plaintiff-Appellant

v.

AMAZON.COM, INC., AMAZON WEB SERVICES, INC.,

Defendants-Appellees

2025-1285

Appeal from the United States District Court for the District of Delaware in No. 1:19-cv-01544-MN, Judge Maryellen Noreika.

Decided: September 11, 2026

C. GRAHAM GERST, Global IP Law Group, Chicago, IL, argued for plaintiff-appellant. Also represented by DAVID P. BERTEN, ALISON AUBREY RICHARDS.

SAINA S. SHAMILOV, Fenwick & West LLP, Mountain View, CA, argued for defendants-appellees. Also represented by J. DAVID HADDEN; DARGAYE CHURNET, Santa Monica, CA; TODD RICHARD GREGORIAN, San Francisco, CA; JONATHAN THOMAS MCMICHAEL, Seattle, WA.

2 ALTERWAN, INC. v. AMAZON.COM, INC.

Before LOURIE and PROST, Circuit Judges, and SUBRAMANIAN, District Judge. 1 Opinion for the court filed by Circuit Judge PROST. Dissenting opinion filed by District Judge SUBRAMANIAN. PROST, Circuit Judge.

AlterWAN, Inc. (“AlterWAN”) appeals from the stipulated final judgment of noninfringement of the U.S. District Court for the District of Delaware favoring Amazon.com, Inc. and Amazon Web Services, Inc. (together , “Amazon”). AlterWAN challenges the district court’s claim-construction rulings, upon which the stipulated judgment rests, and the district court’s exclusion of AlterWAN’s damages expert. We affirm the district court’s claim constructions and thus do not reach the exclusion of AlterWAN’s expert.

BACKGROUND

U.S. Patent No. 8,595,478 (“the ’478 patent”) relates to implementing wide area networks with improved quality of service. ’478 patent col. 3 l. 61–col. 4 l. 9. We assume general familiarity with the patent’s subject matter, as we discussed it in our prior opinion. AlterWAN, Inc. v. Amazon .com, Inc., 63 F.4th 18, 19–21 (Fed. Cir. 2023) (“Alter- WAN I”).

At issue in this appeal are claims 18 and 51, both of which recite a “cooperating service provider.” The district court construed that term as “service provider that agrees to provide non-blocking bandwidth.” Id. at 21. Our prior

1 Honorable Arun Subramanian, District Judge, United States District Court for the Southern District of New York, sitting by designation.

ALTERWAN, INC. v. AMAZON.COM, INC. 3

opinion mainly concerned the district court’s derivative construction of the term “non-blocking bandwidth,” which the district court had construed as “bandwidth that will always be available and will always be sufficient.” Id. at 20. In that appeal, we vacated the parties’ initial stipulation of noninfringement that was based on the district court’s constructions . We also remanded the entire case with specific instructions for the district court to make appropriate revision to its construction of “non-blocking bandwidth” in light of the term effectively requiring the impossible. Id. at 23–24. We did not express a view on the correctness of the term “cooperating service provider” at that time. Id. at 22.

On remand, the district court applied this court’s guidance and, upon receiving the parties’ briefing and hearing testimony from their experts, reconstrued “non-blocking bandwidth” as “bandwidth that will always be available and will always be sufficient while the network is able to transmit data.” AlterWAN, Inc. v. Amazon.com, Inc., No. 1:19-cv-1544-MN, 2024 WL 4635380, at *1 (D. Del. Oct. 31, 2024) (“Claim Construction Order”). No party requested the district court to reconstrue “cooperating service provider,” the term whose construction invokes “non- blocking bandwidth.”

During the remand proceedings, the district court also ruled on the parties’ motions to exclude certain expert testimony . As challenged here, the district court excluded aspects of the testimony of AlterWAN’s damages expert.

Ultimately, the parties again stipulated to noninfringement , but for reasons different from before. Whereas the parties’ first stipulation was ostensibly based only on Amazon ’s failure to provide service when the Internet goes down because of a catastrophic event, the parties’ second stipulation is based on Amazon’s failure to provide service even during mundane network failures. J.A. 9–10. The district court entered final judgment in favor of Amazon.

4 ALTERWAN, INC. v. AMAZON.COM, INC.

AlterWAN appeals. We have jurisdiction under 28 U.S.C. § 1295(a)(1).

DISCUSSION

AlterWAN makes two arguments on appeal. First, it challenges the district court’s construction of the terms “cooperating service provider” and “non-blocking bandwidth.” Second, it challenges the district court’s exclusion of its damages expert. Because we affirm on the former, we do not reach the latter.

I

Claim terms are generally construed based on their ordinary meaning to a person of skill in the art who has read the entire specification and all the claims. Phillips v. AWH Corp., 415 F.3d 1303, 1313 (Fed. Cir. 2005) (en banc). The specification may show that the patentee has provided a definition for a claim term, explicitly or implicitly. Trs. of Columbia Univ. v. Symantec Corp., 811 F.3d 1359, 1363 (Fed. Cir. 2016). Additionally, the specification’s emphasis on a particular feature may inform a claim term’s meaning. See VirnetX, Inc. v. Cisco Sys., Inc., 767 F.3d 1308, 1318 (Fed. Cir. 2014). The prosecution history may shed further light on a claim term’s meaning because it can “provide[] evidence of how the [Patent Office] and the inventor understood the patent.” Phillips, 415 F.3d at 1317. We review the district court’s claim construction based on intrinsic evidence de novo, and we review any underlying factual findings based on extrinsic evidence for clear error. Teva Pharms. USA, Inc. v. Sandoz, Inc., 574 U.S. 318, 333 (2015).

A

AlterWAN argues that the term “cooperating service provider” should be accorded its plain meaning as the amalgam of the commonly understood words “cooperating” and “service provider.” AlterWAN’s view is that a provider

ALTERWAN, INC. v. AMAZON.COM, INC. 5

need not provide “non-blocking bandwidth,” but can “cooperate ” in other ways. The district court rejected Alter- WAN’s approach and construed the term as “service provider that agrees to provide non-blocking bandwidth.” We see no error in the district court’s construction. The intrinsic record supports this construction for a few related reasons.

First, the term “cooperating service provider” does not appear in the specification and was only introduced in prosecution over a decade after the ’478 patent’s effective filing date. J.A. 746, 866–68. With the specification offering “no guidance” (or very little), we turn to the prosecution history . Sunovion Pharms., Inc. v. Teva Pharms. USA, Inc., 731 F.3d 1271, 1276 (Fed. Cir. 2013); see also Personalized Media Commc’ns, LLC v. Apple Inc., 952 F.3d 1336, 1340 (Fed. Cir. 2020) (explaining that the prosecution history informs claim construction, even absent a clear and unmistakable disavowal). What the patentee considered unique, as revealed through its conduct in prosecution, was that prioritized traffic be routed to “cooperating service providers ” that make a special provision of bandwidth. J.A. 747. For example, the patentee argued that the use of its claimed “cooperating service providers” was different from the prior art because its providers “prearranged for blocked bandwidth,” whereas the prior art routed traffic through any acceptable network path (without regard to provider). 2

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