CCD Holdings, LLC v. Wal Mart Stores Inc

CourtDistrict Court, E.D. Arkansas
DecidedSeptember 27, 2021
Docket4:19-cv-00102
StatusUnknown

This text of CCD Holdings, LLC v. Wal Mart Stores Inc (CCD Holdings, LLC v. Wal Mart Stores Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CCD Holdings, LLC v. Wal Mart Stores Inc, (E.D. Ark. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION

CCD HOLDINGS, LLC PLAINTIFF

V. Case No. 4:19cv102 JM

CENERGY USA, INC.; WAL-MART STORES, INC.; WAL-MART.COM USA, LLC; MAGIC DIRT LLC; and MAGIC DIRT HORTICULTURAL PRODUCTS LLC. DEFENDANTS

ORDER The Court has several issues to address in this order. First, some disputed terms in the three patents at issue need to be construed, after deciding whether to grant Plaintiff CCD Holdings, Inc.’s motion to exclude evidence presented by Defendants at the Markman hearing. (Doc. 92). Second, CCD has filed a motion for sanctions against all Defendants and their lead counsel. (Doc. 106). Third, Defendants have filed a motion for severance and to stay the action against Defendants Walmart Stores, Inc. and Walmart.com USA LLC (collectively “Walmart”) pending determination of the patent issues. (Doc. 108-1). Claim Construction This dispute involves three patents in a family of patents described by CCD as being “generally [] directed to novel preparation of lignocellulosic fibrous composites via methods of ruminant and anaerobic digestion” in order “to convert waste to resources” and solving “issues associated with durability, absorbency, waste, compostability, biodegradability.” (Doc. 78, p. 4). The patents are: U.S. Patent No. 8,893,652 (the “652 Patent”); U.S. Patent No. 8,894,879 (the “879 Patent”), and (3) U.S. Patent No. 10,244,730 (the “730 Patent”). Each of these patents is based on a provisional application filed on March 22, 2011. The ‘652 and the ‘879 Patents were filed on June 3, 2014 and issued on November 25, 2014. The ‘730 Patent was filed on May 4, 2018 and issued on April 2, 2019, which was during the course of this action, leading CCD to file a second amended complaint to include claims related to this patent. (Doc. 62). Following the Markman hearing on January 8, 2020, the parties submitted a revised joint

chart of disputed terms, (Doc. No. 102-2). The parties agree that “animal bedding” as found in these claims is “a material on which or in which an animal can rest.” They also agree that “lignocellulosic fiber” means “natural fiber.” At issue are terms that remain in dispute—solvent, density fiber of the animal bedding, dried, density of the lignocellulosic fibrous composite, and density fiber of the digestate composition. (Revised Joint Chart of Disputed Terms and Proposed Interpretations, Doc. 102-2, “the Revised Chart.”). CCD maintains that these terms do not need construction and should be given their ordinary and customary meaning or, in the case of “density fiber” was a term created and defined by the inventor. “The words of a claim ‘are generally given their ordinary and customary meaning.’ Phillips v. AWH Corp., 415 F.3d 1303, 1312–13 (Fed. Cir. 2005) (quoting Vitronics Corp. v.

Conceptronic, Inc., 90 F.3d 1576, 1582 (Fed. Cir. 1996)). “Absent a special and particular definition created by the patent applicant, terms in a claim are to be given their ordinary and accustomed meaning.” See York Prods., Inc. v. Central Tractor Farm & Family Ctr., 99 F.3d 1568, 1572, 40 USPQ2d 1619, 1622 (Fed.Cir.1996) “[T]he ordinary and customary meaning of a claim term is the meaning that the term would have to a person of ordinary skill in the art in question at the time of the invention, i.e., as of the effective filing date of the patent application.” Id. (citations omitted). It is the claims themselves “that measure the invention.” SRI Int'l v. Matsushita Elec. Corp. of Am., 775 F.2d 1107, 1121 (Fed. Cir. 1985) (citation omitted). “When claim construction is required, claims are construable … in light of the specification.” SRI Int'l v. Matsushita Elec. Corp. of Am., 775 F.2d 1107, 1121 (Fed. Cir. 1985). The specification is “the single best guide to the meaning of a disputed term.” Vitronics, 90 F3d. at 1582 “It is well-settled that, in interpreting an asserted claim, the court should look first to the

intrinsic evidence of record, i.e., the patent itself, including the claims, the specification and, if in evidence, the prosecution history. Such intrinsic evidence is the most significant source of the legally operative meaning of disputed claim language. Vitronics, 90 F.3d at 1582 (citing Markman v. Westview Instruments, Inc., 52 F.3d 967, 979 (Fed. Cir. 1995), aff'd, 517 U.S. 370, 116 S. Ct. 1384, 134 L. Ed. 2d 577 (1996)). “Extrinsic evidence, which includes all evidence external to the patent and prosecution history, including expert and inventor testimony, dictionaries, and learned treatises, is less significant than the intrinsic record in the construction process. It should be considered by the court only when intrinsic evidence cannot be used to resolve ambiguities in the claim language.” 3rd Eye Surveillance, LLC v. United States, 140 Fed. Cl. 39, 53–54 (2018) (internal quotations and citations omitted).

At the Markman hearing, Defendants offered evidence in the form of (a) statements made during the prosecution of Plaintiff’s then-pending patent application, No. 16/2782521 and (b) the expert testimony of John F. Hunt as a person of ordinary skill in the art. CCD’s motion to exclude this evidence from consideration (Doc. 92), is granted. Defendants are correct that statements made by the inventor during continued prosecution of a related patent application or made during the continued prosecution of a sibling application “can, in some circumstances, be

1 According to the USPTO website, the patent was issued on September 7, 2021 as Patent No. 11,109,564. relevant to claim construction”2 and may “inform the meaning of the claim language by demonstrating how the inventor understood the invention.”3 However, the Court is not persuaded that statements made by the Examiner to which CCD did not object are entitled to the same probative value.4 As to the testimony of Mr. Hunt, the Court did not find his testimony

helpful as a POSITA; it is unnecessary to rely on his expert testimony because the intrinsic evidence is sufficient to properly construe the disputed terms. Turning to the five terms remaining in dispute—solvent, density fiber of the animal bedding, dried, density of the lignocellulosic fibrous composite, and density fiber of the digestate composition—here they are in context: 652 Patent, Claim 1: Animal bedding comprising: at least one solvent, wherein the at least one solvent comprises water and is present in a concentration of less than approximately 25% weight; a lignocellulosic fiber, wherein the lignocellulosic fiber comprises processed lignin, hemicellulose, and cellulose, and wherein the lignocellulosic fiber has been processed by ruminant digestion and anaerobic digestion; and wherein the density fiber of the animal bedding ranges from approximately 0.950 grams per cubic centimeter to approximately 1.40 grams per cubic centimeter.

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CCD Holdings, LLC v. Wal Mart Stores Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ccd-holdings-llc-v-wal-mart-stores-inc-ared-2021.