Bose Corporation v. Sdi Technologies, Inc.

558 F. App'x 1012
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 14, 2014
Docket2013-1347
StatusUnpublished

This text of 558 F. App'x 1012 (Bose Corporation v. Sdi Technologies, Inc.) 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
Bose Corporation v. Sdi Technologies, Inc., 558 F. App'x 1012 (Fed. Cir. 2014).

Opinion

CLEVENGER, Circuit Judge.

This is a patent infringement case. Appellant Bose Corporation (“Bose”) asserted U.S. Patent No. 7,277,765 (the “'765 Patent”) against Appellees SDI Technologies (“SDI”), Inc., Imation Corporation, Memo-rex Products, Inc., and DPI, Inc. (collectively “Appellees”) in the United States District Court for the District of Massachusetts, accusing 144 speaker systems on theories of induced and contributory infringement. Summary judgment of nonin-fringement was granted for all 144 speakers, and Bose now appeals. Bose Corp. v. SDI Tech., Inc., No. 1:09-cv11439, 2012 WL 2862057 (D.Mass. July 10, 2012) [hereinafter Summ. J. Op.].

As to all but one of the accused speakers (collectively “the Common Products”), the question of noninfringement was resolved on the constructions of “interface,” “interface unit,” “interface device,” and “interface module.” Because the District Court correctly construed the terms, we affirm its summary judgment of noninfringement.

As to the last accused speaker, SDI’s iWl, the District Court in granting summary judgment of noninfringement improperly drew inferences about SDI’s lack of intent to infringe. We reverse its summary judgment of noninfringement for the iWl and remand for further proceedings.

Background

To play a digital sound file on a speaker, the file must first be converted into analog signals usable by the speaker. This infringement suit concerns 144 accused *1015 speakers which play digital files stored on “docked” iPods, iPhones, or iPads (collectively “¡Devices”) made by Apple Inc.

All ¡Devices have internal circuitry that converts the digital files stored within into analog signals. The Common Products, constituting 143 of the 144 accused speakers, connect to the ¡Devices through pin connectors and make use of these analog signals generated by the ¡Devices. The remaining accused speaker, SDI’s iWl, connects to the ¡Devices wirelessly. It receives the signals in digital file form and performs the conversion to analog itself.

Bose charges the Appellees with indirect infringement of the asserted patent for the manufacture, use, offer for sale, sale, and importation of the accused speakers.

All asserted claims include the term “interface.” One group, including claim 1, recites that the “interface” must be built into an enclosure along with a “powered speaker” (collectively “the common enclosure claims”). Another group, including claims 35 and 37, has no such restriction. Instead, these claims recite “an interface unit operably coupled to the sound reproduction device,” “an interface device oper-ably coupled to the sound reproduction device,” or “an interface module at least partially integrated within the enclosure.”

In claim construction, Bose urged that “interface” meant no more than a connection, and argued that the connection between the ¡Devices and the accused speakers, pin connection or wireless, satisfied the claim term. The District Court instead adopted Appellees’ construction of “interface” to mean “circuitry that converts a digital audio signal from an audio source to an analog audio signal and transmits digital control commands.” Bose Corp. v. SDI Tech., Inc., 828 F.Supp.2d 415, 418 (D.Mass.2011) [hereinafter Mark-man Mem.]. As for “interface unit,” “interface device,” and “interface module,” the District Court adopted the construction agreed to by the parties prior to the Markman hearing that all three terms be construed as “a structure that includes an interface.” Id. at 421.

In light of the District Court’s construction of “interface,” Bose’s common enclosure infringement theories against all speakers but the iWl collapsed because the Common Products lack circuitry to convert digital files to analog signals. Id. at 20.

Bose also relied on the claims reciting “an interface device” or “an interface module” against the Common Products. Id. at 18. It urged that “the claimed ‘interface device’ or ‘interface module’ is present in the combination of any one of the accused systems together with an iDevice,” making use of the digital to analog conversion circuitry within the ¡Devices to match the construction of “interface.” Id.

When Appellees moved for summary judgment of noninfringement, the District Court clarified that “a structure,” within the constructions of “interface unit,” “interface device,” and “interface module” as “a structure that includes an interface,” must be understood to be “discrete” or “singularly physical, not defined on paper as different pieces of separate devices.” Id. at 8-10. This understanding of “a structure” precludes an “interface device” or “interface module” split across an accused speaker and an iDevice. Bose’s remaining case against the Common Products collapsed.

The case against SDI’s iWl does not suffer from such infirmities, because the speaker does have built-in digital to analog conversion capabilities. Id. at 21. The District Court therefore acknowledged that it “may not grant summary judgment based on its construction alone.” Id.

*1016 Nonetheless, the District Court concluded that, “as to the [iWl], no reasonable jury could find SDI had the intent necessary to support a finding of inducement or contributory infringement.” Id. at 30. It looked to the fact that “SDI had an invalidity opinion, and a Bose expert agreed that SDI believed the invalidity opinion.” Id. at 29. Consequently, it granted summary judgment of noninfringement for SDI’s iWl. Id. at 29-30.

Bose timely appeals, assigning the following errors to the District Court’s claim constructions and findings of no intent to indirectly infringe:

1) improper inclusion of digital to analog conversion within the meaning of “interface;”
2) improper construction of “a structure,” within the meaning of “interface unit,” “interface device,” and “interface module,” to be “discrete” or “singularly physical;” and
3) improper weighing of evidence to conclude that no reasonable jury could have found intent to indirectly infringe concerning SDI’s iWl.

Appellees support the District Court’s conclusions. They further urge, as an alternative basis, that the summary judgment of noninfringement for all Common Products be affirmed on the grounds that all Appellees lack the requisite intent for indirect infringement.

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

Claim Construction

Standard of Review

We review the claim constructions of the District Court according to the following standard:

Claim construction is an issue of law that we review de novo. In construing a claim term, we look at the term’s plain meaning.

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Cite This Page — Counsel Stack

Bluebook (online)
558 F. App'x 1012, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bose-corporation-v-sdi-technologies-inc-cafc-2014.