Caterpillar Prodotti Stradali v. Itc

Court of Appeals for the Federal Circuit·Decided March 15, 2021·No. 19-2445·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

CATERPILLAR PRODOTTI STRADALI S.R.L., CATERPILLAR AMERICAS C.V., CATERPILLAR PAVING PRODUCTS, INC., CATERPILLAR INC., Appellants

v.

INTERNATIONAL TRADE COMMISSION, Appellee

WIRTGEN AMERICA, INC.,

Intervenor

-------------------------------------------------

WIRTGEN AMERICA, INC.,

Appellant

v.

INTERNATIONAL TRADE COMMISSION, Appellee

CATERPILLAR PRODOTTI STRADALI S.R.L., CATERPILLAR AMERICAS C.V., CATERPILLAR PAVING PRODUCTS, INC., CATERPILLAR INC., Intervenors

2019-2445, 2019-1911

2 CATERPILLAR PRODOTTI STRADALI v. ITC

Appeals from the United States International Trade Commission in Investigation No. 337-TA-1067.

Decided: March 15, 2021

JAMES R. BARNEY, Finnegan, Henderson, Farabow, Garrett & Dunner, LLP, Washington, DC, argued for Caterpillar Prodotti Stradali S.R.L., Caterpillar Americas C.V., Caterpillar Paving Products, Inc., Caterpillar Inc. Also represented by DAVID MROZ.

MICHAEL LIBERMAN, Office of the General Counsel, United States International Trade Commission, Washington , DC, argued for appellee. Also represented by DOMINIC L. BIANCHI, WAYNE W. HERRINGTON.

MICHAEL E. JOFFRE, Sterne Kessler Goldstein & Fox, PLLC, Washington, DC, argued for Wirtgen America, Inc. Also represented by PAUL ASHLEY AINSWORTH, DONALD BANOWIT, WILLIAM MILLIKEN, RALPH WILSON POWERS, III, DANIEL YONAN; MARK ANDREW KILGORE, RYAN D. LEVY, SETH R. OGDEN, WILLIAM E. SEKYI, JOHN FRANCIS TRIGGS, Patterson Intellectual Property Law, PC, Nashville, TN.

Before O’MALLEY, MAYER, and TARANTO, Circuit Judges.

Opinion for the court filed by Circuit Judge TARANTO.

Opinion concurring in the judgment filed by Circuit Judge O’MALLEY.

CATERPILLAR PRODOTTI STRADALI v. ITC 3

TARANTO, Circuit Judge.

Wirtgen America, Inc. filed a complaint against Caterpillar Products Stradali S.R.L., Caterpillar Americas C.V., Caterpillar Paving Products, Inc., and Caterpillar, Inc. (collectively, Caterpillar) with the International Trade Commission, alleging that Caterpillar’s importation and sale of certain road-milling machines violated 19 U.S.C. § 1337 (section 337 of the Tariff Act of 1930). Specifically, invoking section 337’s bar on importation and sale “of articles that . . . (i) infringe a valid and enforceable United States patent,” 19 U.S.C. § 1337(a)(1)(B), Wirtgen alleged that Caterpillar infringed several of its patents, including U.S. Patent Nos. 9,656,530, 7,828,309, and 7,530,641. The Administrative Law Judge (ALJ) determined that Caterpillar violated section 337 with respect to the ’530 and ’309 patents. But the ALJ found no violation with respect to the ’641 patent, concluding that Wirtgen had not shown the infringement alleged, i.e., inducement by Caterpillar of direct infringement of method claims 11 and 17. Both determinations became those of the Commission when it declined to review them.

Caterpillar appeals as to the ’530 and ’309 patents, and Wirtgen cross-appeals as to the ’641 patent. We affirm the Commission’s decision as to the ’530 and ’309 patents. We reverse in part, vacate in part, and remand as to the ’641 patent.

I

Based on Wirtgen’s July 2017 complaint, the Commission instituted an investigation to decide whether Caterpillar was violating section 337 through infringement of five Wirtgen-owned patents: the ’530 patent, the ’309 patent, and the ’641 patent, as well as U.S. Patent Nos. 9,624,628 and 9,644,340. Certain Road Milling Machines and Components Thereof; Institution of Investigation, 82 Fed. Reg. 40,595, 40,596 (Aug. 25, 2017) (notice). Only the ’530, ’309, 4 CATERPILLAR PRODOTTI STRADALI v. ITC

and ’641 patents are now at issue. 1 All three of those patents relate to road-milling machines, which are construction machines used to remove an existing road surface before installing a new one. J.A. 20006–08. They typically consist of a frame, four wheels or crawler tracks, and a milling drum, which scrapes off old pavement and clears the scraped material by means of a conveyor. Id.

The ’530 patent describes a “road construction machine ” with wheels (or tracks) connected to the machine’s frame “via lifting column[s],” each column being “vertically adjustable relative to the engine frame.” ’530 patent, Abstract . Wirtgen asserted that Caterpillar was infringing claims 2, 5, 16, and 23 of the ’530 patent. Caterpillar challenged all four claims as invalid for obviousness, see 35 U.S.C. § 103, and claims 2, 5, and 16 as invalid for indefiniteness , see 35 U.S.C. § 112.

The ’309 patent describes a road-milling machine that allows for all four wheels (or tracks) to be “adjustable in height by means of an actuating member.” ’309 patent, col. 1, lines 10–15. Wirtgen asserted that Caterpillar was infringing claim 29. Caterpillar alleged that claim 29 is invalid for obviousness.

The ’641 patent describes an “automotive construction machine” with a milling drum, as well as a method for using the machine to mill ground surfaces. ’641 patent, col. 1, lines 7–8. As relevant here, Wirtgen alleged that Caterpillar was inducing users of certain of its machines to use them in a way that constituted direct infringement of method claims 11 and 17 of the ’641 patent. See J.A. 3399– 400. Caterpillar responded that no act of direct

1 Wirtgen voluntarily dismissed its allegations as to the ’628 patent, and the ALJ found no violation with respect to the ’340 patent, a finding adopted by the Commission and not challenged on appeal.

CATERPILLAR PRODOTTI STRADALI v. ITC 5

infringement of those claims had occurred, so there could be no inducement liability. See J.A. 2572, 2884.

The ’641 patent states that, in prior-art milling machines , it was “necessary that the milling drum [be] idle” when the machine was “traveling backwards.” ’641 patent, col. 1, lines 31–32. The drum spun in the opposite direction from the machine’s forward-motion direction and rotated faster than the machine’s wheels (or rotational devices for tracks); as a result, when the machine was moving in reverse (with the drum’s rotation aligned with rather than opposing the direction of the machine’s movement), “the construction machine may be accelerated suddenly and uncontrollably in case of an inadvertent engagement of the milling drum with the ground surface.” Id., col. 1, lines 33– 36. The ’641 patent asserts that the necessary process of turning off the combustion engine while traveling in reverse and then waiting for it to return to speed before resuming milling was “very time-consuming and very annoying for the machine operator.” Id., col. 1, lines 55– 59. The ’641 patent claims to improve on previous milling machines by providing that, when the drum’s rotation and machine’s motion are in the same direction, the drum is raised above the ground and continues to spin, but if sensors detect that it is too close to the ground, the drive engine is decoupled from the drum, or the wheels (or tracks) or the frame is raised, or an alarm goes off. Id. col. 1, line 64 through col. 2, line 11; see also id., col. 3, lines 20–44; id., col. 5, lines 32–46.

Claims 11 and 17 of the ’641 patent, the only claims now at issue, are method claims. Claim 11 recites:

11. Method for working ground surfaces (2) with a construction machine (1) that is automotive by means of traveling devices (8) and in which a milling drum (12) supported in a machine frame (4) is driven by a drive engine (6), 6 CATERPILLAR PRODOTTI STRADALI v. ITC

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