Amado v. Microsoft Corp.

517 F.3d 1353, 86 U.S.P.Q. 2d (BNA) 1090, 2008 U.S. App. LEXIS 4065, 2008 WL 495760
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 26, 2008
Docket2007-1236, 2007-1255
StatusPublished
Cited by143 cases

This text of 517 F.3d 1353 (Amado v. Microsoft Corp.) 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
Amado v. Microsoft Corp., 517 F.3d 1353, 86 U.S.P.Q. 2d (BNA) 1090, 2008 U.S. App. LEXIS 4065, 2008 WL 495760 (Fed. Cir. 2008).

Opinion

LINN, Circuit Judge.

Carlos Armando Amado (“Amado”) appeals from the March 13, 2007 final decision of the U.S. District Court for the Central District of California, Amado v. Microsoft Corp., No. 8:03-CV-242 (C.D.Cal. Mar. 13, 2007) (“Escrow!Injunction Order”), which dissolved a previously-issued permanent injunction and awarded *1356 Amado $0.12 per infringing unit sold by-Microsoft Corporation (“Microsoft”) during a period of the stay of the permanent injunction. Amado also appeals from two non-final orders of the district court, which extended the stay of the permanent injunction past the date set forth in the original order. See Amado v. Microsoft Corp., No. 8:03-CV-242 (C.D.Cal. Dec. 1, 2006) (ruling clarified in Amado v. Microsoft Corp., No. 8:03-CV-242 (C.D.Cal. Dec. 5, 2006)); Amado v. Microsoft Corp., No. 8:03-CV-242 (C.D.Cal. Sept. 15, 2006). Microsoft cross-appeals from the Escrow/Injunction Order, challenging the district court’s award of $0.12 per infringing unit and the district court’s denial of its motion for relief from judgment.

Because the district court did not abuse its discretion by extending the stay of the permanent injunction, by dissolving the permanent injunction, or by denying Microsoft’s motion for relief from judgment, we affirm in part. Because the district court failed to adequately explain the basis for its award of $0.12 per infringing unit sold during the stay of the permanent injunction, however, and because recent Supreme Court action may affect post-verdict damages, we vacate in part and remand.

I. BACKGROUND

Amado is the inventor and owner of U.S. Patent 5,293,615 (“the '615 patent”), which is directed to a “point and shoot interface for linking database records to spreadsheets whereby data of a record is automatically reformatted and loaded upon issuance of a recalculation command.” In general terms, the invention of the '615 patent relates to a software program that combines the functionalities of spreadsheet and database software. Claim 21, for example, recites “[a]n apparatus for carrying out spreadsheet calculations using data imported from a database via a point and shoot user interface to select a database record for loading into a specified range of the spreadsheet....”

Amado filed suit against Microsoft on March 7, 2003, alleging that several versions of Microsoft’s Office Suite infringed the '615 patent. In June 2005, a jury found the '615 patent valid and infringed and awarded Amado damages for infringing sales equivalent to a $0.04 reasonably royalty. The district court granted Amado’s request for a permanent injunction, but then stayed the injunction until seven days after the resolution or abandonment of any appeal. As a condition of the stay, the district court required that Microsoft make escrow deposits of $2.00 per copy of the infringing software sold during the stay.

Microsoft and Amado appealed from the district court’s final judgment. We “affirm[ed] in all respects” and remanded for disposition of the funds deposited in the escrow account. See Amado v. Microsoft, 185 Fed.Appx. 953 (Fed.Cir.2006) (“Amado I ”). As relevant to this appeal, on remand the district court: (1) extended the stay of the permanent injunction in order to consider various motions, including Microsoft’s motion to dissolve the injunction in light of eBay, Inc. v. MercExchange, LLC, 547 U.S. 388, 126 S.Ct. 1837, 164 L.Ed.2d 641 (2006); (2) subsequently dissolved the injunction; (3) denied Microsoft’s motion for relief from judgment based on alleged disclaimers made during post-trial reexamination; and (4) awarded Amado $0.12 per infringing unit from the escrow account for sales made during the period of the stay.

Amado and Microsoft timely appealed these rulings. Both parties contend that the district court erred in assessing a $0.12 royalty for the infringing units sold during the stay. Amado contends the proper award is $2.00 per unit, the amount es-crowed, while Microsoft contends the proper amount is $0.04, the amount found by *1357 the jury to be a reasonable royalty. Amado also argues that the district court’s original injunction order, which granted but stayed the injunction, was incorporated into the mandate in Amado I, thus depriving the district court of authority either to extend the stay or dissolve the injunction. Microsoft contends that the district court erred in denying its motion for relief from judgment. It also asks us to adjust the damages award in light of the recently decided case of Microsoft Corp. v. AT & T Corp., — U.S. -, 127 S.Ct. 1746, 167 L.Ed.2d 737 (2007).

We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).

II. DISCUSSION

A. Standard of Review

A district court’s decision granting, denying, or modifying an injunction in a patent case is reviewed for abuse of discretion. Lab. Corp. of Am. Holdings v. Chiron Corp., 384 F.3d 1326, 1331 (Fed.Cir. 2004).

“In order to prevail on appeal on an issue of damages, an appellant must convince us that the determination was based on an erroneous conclusion of law, clearly erroneous factual findings, or a clear error of judgment amounting to an abuse of discretion.” Rite-Hite Corp. v. Kelley Co., 56 F.3d 1538, 1543 (Fed.Cir. 1995).

The denial of a motion under Rule 60(b) is a procedural question not unique to patent law and thus is reviewed under the law of the regional circuit. Univ. of W. Va. Bd. of Trustees v. VanVoorhies, 342 F.3d 1290, 1294 (Fed.Cir.2003). In the Ninth Circuit, denials of Rule 60(b) motions are reviewed for abuse of discretion. Bateman v. U.S. Postal Serv., 231 F.3d 1220, 1223 (9th Cir.2000).

B. Analysis

1. Extensions of the Stay of the Permanent Injunction

The district court’s original order staying the permanent injunction stated that the injunction would go into effect “[sjeven days after the resolution or abandonment of any appeal.” Amado v. Microsoft Corp., 8:03-CV-242, slip op. at 28 (C.D.Cal. Aug. 2, 2005). Following remand from this court in Amado I, Amado moved to enforce the injunction as having become effective on August 30, 2006—sev-en days after the mandate issued. The district court denied Amado’s motion, interpreting its order staying the injunction through any pending appeal to include a petition for certiorari to the Supreme Court. Amado v. Microsoft Corp., No. 8:03-CV-242, slip op. at 2 (C.D.Cal. Sept. 15, 2006).

The Supreme Court denied certiorari on November 27, 2006.

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517 F.3d 1353, 86 U.S.P.Q. 2d (BNA) 1090, 2008 U.S. App. LEXIS 4065, 2008 WL 495760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amado-v-microsoft-corp-cafc-2008.