Apple Inc. v. Samsung Electronics Co., Ltd.

816 F.3d 788, 118 U.S.P.Q. 2d (BNA) 1168, 2016 U.S. App. LEXIS 3432
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 26, 2016
Docket2015-1171, 2015-1195, 2015-1994
StatusPublished
Cited by13 cases

This text of 816 F.3d 788 (Apple Inc. v. Samsung Electronics Co., Ltd.) 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
Apple Inc. v. Samsung Electronics Co., Ltd., 816 F.3d 788, 118 U.S.P.Q. 2d (BNA) 1168, 2016 U.S. App. LEXIS 3432 (Fed. Cir. 2016).

Opinion

DYK, Circuit Judge.

The current appeal results from a patent infringement suit and countersuit between Apple Inc.- (“Apple”) and Samsung Electronics Co., Ltd., Samsung Electronics America, Inc., and Samsung Telecommunications America, LLC (collectively, “Samsung”). Apple alleged infringement of five U.S. patents that it owns: U.S. Patent Nos. 5,946,647 (the '647 patent), 6,847,959 (the '959 patent), 7,761,414 (the '414 patent), 8,046,721 (the '721 patent), and 8,074,172 (the '172 patent). After a jury trial, the district court entered a judgment awarding Apple $119,625,000 in damages and ongoing royalties 1 for infringement of the '647 patent, the '721 patent, and the '172 patent. The jury found that Samsung had not infringed the '959 patent and the '414 patent. The district court entered judgment accordingly.

Samsung’s countersuit alleged infringement of two patents that it owns: U.S. Patent Nos. 5,579,239 (the '239 patent) and 6,226,449 (the '449 patent). The jury *793 found Apple had infringed the '449 patent and awarded $158,400 in damages but found that Apple had not infringed the '239 patent. The district court entered judgment in accordance with the jury verdict.

Both Apple and Samsung appeal. With regard to Apple’s '647 patent, we reverse the district court’s denial of Samsung’s motion for judgment as a matter of law (JMOL) of non-infringement and find that Apple failed to prove, as a matter of law, that the accused Samsung products use an “analyzer server” as we have previously construed that term. We also reverse the district court’s denial of JMOL of invalidity of Apple’s '721 and '172 patents, finding that the asserted claims of both patents would.have been obvious based on the prior art. We affirm the judgment of non-infringement of Apple’s '959 and '414 patents, affirm the judgment of infringement of Samsung’s '449 patent, and affirm the judgment of non-infringement of Samsung’s '239 patent. In light of these holdings, we need not address the other issues on this appeal. Accordingly, we affirm-in-part arid reverse-in-part.

Background

This is our third appeal in this case. In the first appeal, we reversed the district court’s order granting a preliminary injunction enjoining Samsung from selling one of its smartphones in the United States based on a patent no longer at issue in this case. Apple Inc. v. Samsung Elecs. Co., 695 F.3d 1370 (Fed.Cir.2012) (“Apple IU”). In the second appeal, we vacated a district court remedial order denying Apple’s request for a permanent injunction that would have enjoined. Samsung from “making, using, selling, developing, advertising, or importing into the United States software or code.capable of implementing the infringing features [of the '647, the '721, and the '172 patents] in its products.” Apple Inc. v. Samsung Elecs. Co., 809 F.3d 633, 638 (Fed.Cir.2015). 2 The district court decision and our reversal addressed the appropriateness of injunctive relief, for assumed infringement. That decision did not address or resolve the merits of the underlying case that is now before us.- In this third appeal, we .confront the core infringement and invalidity issues with respect to the asserted patents.

I

Apple filed suit against Samsung on February 8, 2012, asserting infringement of eight patents, including the five that are relevant for this appeal. Samsung answered, contesting infringement and alleging invalidity of the asserted patents. In addition, Samsung countersued Apple for infringement of eight patents that it owns, including the two relevant for the current appeal. Before trial, the parties reduced the number of asserted claims, with Apple maintaining infringement as to five patents and Samsung maintaining allegations of infringement of two patents.

The five Apple patents involved at trial and on appeal cover various aspects of the operation of smartphones. The '647 patent covers software to detect “structures,” such as a phone number, in text and to turn those structures into links, thus allowing a user to “click” on the structure to take an action (such, as making a phone call) rather than having to copy and paste the structure into another application. The '721 patent is directed to the iPhone’s “slide to unlock” feature, where a User can *794 slide a moving image across the screen of the phone with his finger to unlock the phone. The '172 patent covers “autocor-rect” software on the phone that automatically corrects typing errors. The '959 patent claims “Universal Search,” where a user can, from a single search term, find results both from applications on the phone and from the Internet. Lastly, Apple’s '414 patent covers “Background Sync” software that synchronizes information on the phone with other devices while the user is using the phone.

As to Samsung’s patents, the '449 patent covers camera systems for compressing, decompressing, and organizing digital photos and videos. The '239 patent covers systems for compressing and transmitting videos.

After a 13-day trial, the jury found all asserted claims of the Apple patents not invalid and awarded Apple $119.6 million for infringement of the asserted claims of the '647, '721, and '172 patents. 3 The jury, however, found that Samsung had not infringed Apple’s '414 patent or Apple’s '959 patent. Additionally, the jury found that Apple had infringed the asserted claim of the '449 patent, awarding Samsung $158,400 in damages, but found Samsung’s '239 patent not infringed. The district court entered judgment.

We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1). We review a district court’s order granting or denying JMOL under the standard applied by the regional circuit. In the Ninth 'Circuit, the review is de novo, and the court views the evidence in the light most favorable to the jury verdict. See Amarel v. Connell, 102 F.3d 1494, 1521 (9th Cir.1996).

Discussion

I. The Apple '647 Patent

Apple asserted infringement of claim 9 of the '647 patent. The jury found that Samsung infringed and awarded Apple $98,690,625. The district court denied JMOL of non-infringement.

’Samsung argues that the district court erred in not granting its motion for JMOL of non-infringement. The '647 patent “discloses a system for recognizing certain structures (such as a telephone number) on a touchscreen and then linking certain actions (such as calling the telephoné'num-ber) to the structure. For example, a user may be able to call or save a phone number it has received via text message dr email simply by touching the number on the screen of its device.” Apple Inc. v. Motorola, Inc., 757 F.3d 1286, 1304 (Fed. Cir.2014) (“Motorola ”). Asserted claim 9 depends on claim 1. Claim 1 reads:

A computer-based .system for detecting structures in data and performing actions on detected structures, comprising:
an input device for receiving data;
an output device for presenting the data;

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816 F.3d 788, 118 U.S.P.Q. 2d (BNA) 1168, 2016 U.S. App. LEXIS 3432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apple-inc-v-samsung-electronics-co-ltd-cafc-2016.