Causam Enterprises, Inc. v. Itc

Court of Appeals for the Federal Circuit·Decided October 15, 2025·No. 23-1769·Published

Opinion

United States Court of Appeals for the Federal Circuit

CAUSAM ENTERPRISES, INC., Appellant

v.

INTERNATIONAL TRADE COMMISSION, Appellee

ECOBEE TECHNOLOGIES ULC, DBA ECOBEE, ITRON, INC., RESIDEO SMART HOMES TECHNOLOGY (TIANJIN), ADEMCO, INC., ALARM.COM HOLDINGS, INC., ALARM.COM INCORPORATED, ENERGYHUB, INC., Intervenors

2023-1769

Appeal from the United States International Trade Commission in Investigation No. 337-TA-1277.

Decided: October 15, 2025

JONATHAN WEINBERG, King & Spalding LLP, Washington , DC, argued for appellant. Also represented by JEFFREY MARK TELEP; CHRISTOPHER CHARLES CAMPBELL, Cahill Gordon & Reindel LLP, Washington, DC.

PANYIN HUGHES, Office of the General Counsel, United 2 CAUSAM ENTERPRISES, INC. v. ITC

States International Trade Commission, Washington, DC, argued for appellee. Also represented by CATHY CHEN, MICHELLE W. KLANCNIK.

KIRK T. BRADLEY, Alston & Bird LLP, Charlotte, NC, argued for intervenors Itron, Inc., Resideo Smart Homes Technology (Tianjin), Ademco, Inc. Also represented by LAUREN NICOLE GRIFFIN, SCOTT BENJAMIN PLEUNE, MATTHEW S. STEVENS.

MANNY CAIXEIRO, Venable LLP, Los Angeles, CA, for intervenor ecobee Technologies ULC. Also represented by MEGAN S. WOODWORTH, Washington, DC; STEVEN M. LUBEZNY, Law Office of Edward H Rice, LLC, Northbrook, IL.

KEITH HUMMEL, Cravath, Swaine & Moore LLP, New York, NY, for intervenors Alarm.com Holdings, Inc., Alarm.com Incorporated, EnergyHub, Inc. Also represented by SHARONMOYEE GOSWAMI.

Before TARANTO, CHEN, and STOLL, Circuit Judges.

TARANTO, Circuit Judge.

Causam Enterprises, Inc. (Causam), previously named Causam Energy, Inc., owns several patents related to electrical utilities’ ability to reduce demand for power in response to conditions calling for a reduction, such as high systemic demand in relation to available supply—so-called “demand response” functionality. Causam filed a complaint before the International Trade Commission (ITC or Commission) alleging, as relevant now, that Resideo Smart Homes Technology (Tianjin) and its domestic affiliate Ademco, Inc. (collectively, Resideo) were violating section 337 of the Tariff Act of 1930, 19 U.S.C. § 1337, by importing and selling certain internet-connected “smart” thermostats whose operation infringes method claim 1 of

CAUSAM ENTERPRISES, INC. v. ITC 3

U.S. Patent No. 10,394,268 (issued August 27, 2019, on Application No. 15/618,981, filed June 9, 2017)—which Causam asserts it owns. Causam also named other respondents , including ecobee, Inc., now known as ecobee Technologies, ULC (ecobee), and their imported products (which are not at issue in this appeal). Causam sought exclusion of the accused products.

The Commission instituted an investigation in response to Causam’s complaint. See Certain Smart Thermostats , Load Control Switches, and Components Thereof, Inv. No. 337-TA-1277, 2022 WL 17730771, at *2 (Nov. 16, 2022) (Initial Determination); J.A. 23. During the investigation , as relevant here, respondents contended that Causam did not own the ’268 patent, and Resideo contended that its smart thermostats did not infringe the asserted claims of the patent. Initial Determination, at *14– 20, *33–38; J.A. 39–48, 72–80. The assigned administrative law judge, after trial, agreed with both those contentions and denied relief under section 337. Initial Determination, at *14–20, *33–38; J.A. 39–48, 72–80. The full Commission, on review, adopted the noninfringement finding, while taking no position on the issue of ownership. Certain Smart Thermostats, Load Control Switches, And Components Thereof, Inv. No. 337-TA-1277, 2023 WL 2136484, at *1–3 (Feb. 16, 2023) (Commission Determination ); J.A. 258–60. Causam has appealed the noninfringement determination only as to claim 1 and only as to Resideo’s products.

Even before the Initial Determination was rendered, the ’268 patent was challenged in the Patent and Trademark Office (PTO) through a petition for an inter partes review (IPR) under 35 U.S.C. §§ 311–19, and after the ITC’s decision, the PTO’s Patent Trial and Appeal Board (the Board) instituted the requested review and then held that all challenged claims (all but claim 12) were unpatentable . See ecobee Technologies ULC v. Causam Enterprises, Inc., No. IPR2022-01339 (P.T.A.B. Mar. 19, 2024). Causam 4 CAUSAM ENTERPRISES, INC. v. ITC

appealed the Board’s final written decision, and today we affirm that decision. See Causam Enterprises, Inc. v. ecobee Technologies ULC, No. 24-1958, slip op. at 2, ––– F.4th –––, ––– (Fed. Cir. Oct. 15, 2025) (Causam v. ecobee).

In the present matter, Causam asks us to hold that it owns the ’268 patent, arguing that ownership is a threshold question because, if Causam is not the patent owner, it lacks the injury in fact necessary for it to have Article III standing in this court. We agree with Causam and hold that it owns the ’268 patent. Although Causam also challenges the Commission’s noninfringement determination, we do not reach that issue. In the Causam v. ecobee case, we today affirm the Board’s holding that claim 1 is unpatentable . That holding moots the noninfringement issue in the present appeal, which we therefore dismiss.

I

The ancestry of the ’268 patent is relevant to the ownership issue before us. The ’268 patent issued from Application No. 15/618,981, which is a continuation of a continuation of Application No. 13/463,761. ’268 patent, col. 1, lines 8–14; see 35 U.S.C. § 120; Manual of Patent Examining Procedure (MPEP) § 201.07 (“Continuation Application ”). In turn, the ’761 application was a continuation- in-part of a continuation of a division of Application No. 11/895,909 (filed August 28, 2007). ’268 patent, col. 1, lines 14–22; see 35 U.S.C. § 121 (“Divisional applications”); MPEP § 201.06 (“Divisional Application”); MPEP § 201.08 (“Continuation-in-Part Application”). The key point is that a continuation-in-part is in the line of descent from the ’909 application to the ’268 patent.

A

Causam is listed—under its previous name, Causam Energy, Inc.—as the owner of the ’268 patent, by assignment from inventor Joseph Forbes, on the front page of the patent and in the PTO records. J.A. 40001; see Initial

CAUSAM ENTERPRISES, INC. v. ITC 5

Determination, at *16 (“On January 18, 2018, Causam Energy , Inc., was renamed Causam Enterprises, Inc., the complainant in this investigation.”). The July 2017 assignment document filed for the June 2017 Application No. 15/618,981 (which issued as the ’268 patent) says that the assignment was executed on September 16, 2014. J.A. 40000–01 (ITC Joint Exhibit JX-0009.1–0009.2). That is the date of the assignment to Causam of the ’981 application ’s immediate parent, Application No. 14/456,306, an assignment that covers “continuations in whole or part.” Certain Smart Thermostats, Load Control Switches, and Components Thereof, Inv. No. 337-TA-1277, EDIS No. 786215, at JX-0009.3–0009.4.

Earlier, on August 24, 2007, Mr. Forbes had assigned the ’909 application (filed August 28, 2007), an ancestor of the ’268 patent, to another entity, America Connect, Inc. J.A. 21594–96. The 2007 assignment transferred ownership of the “[i]nvention” of the ’909 application and “all patents which may be granted therefor” and “all divisions, reissues, continuations and extensions thereof.” J.A. 21595 (emphasis added); see Intervenors’ Response Br. at 53 (quoting provision). Importantly, the 2007 assignment does not list “continuations-in-part.”

Around 2009, Consert, Inc., of which Mr. Forbes was both a co-founder and an employee, succeeded to America Connect’s interest in the ’909 application. J.A. 22319. In 2010, Mr. Forbes executed an agreement with Consert, assigning to Consert rights in inventions he had developed or would develop as its employee. J.A. 21762–73.

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