Ceramtec Gmbh v. Coorstek Bioceramics LLC

124 F.4th 1358
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 3, 2025
Docket23-1502
StatusPublished

This text of 124 F.4th 1358 (Ceramtec Gmbh v. Coorstek Bioceramics LLC) 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
Ceramtec Gmbh v. Coorstek Bioceramics LLC, 124 F.4th 1358 (Fed. Cir. 2025).

Opinion

Case: 23-1502 Document: 43 Page: 1 Filed: 01/03/2025

United States Court of Appeals for the Federal Circuit ______________________

CERAMTEC GMBH, Appellant

v.

COORSTEK BIOCERAMICS LLC, FKA C5 MEDICAL WERKS, LLC, Appellee ______________________

2023-1502 ______________________

Appeal from the United States Patent and Trademark Office, Trademark Trial and Appeal Board in Nos. 92058781, 92058796. ______________________

Decided: January 3, 2024 ______________________

JESSICA LYNN ELLSWORTH, Hogan Lovells US LLP, Washington, DC, argued for appellant. Also represented by ANNA KURIAN SHAW, REEDY SWANSON; KATHERINE BOOTH WELLINGTON, Boston, MA; JOHANNAH CASSEL- WALKER, San Francisco, CA.

STEVEN J. HOROWITZ, Sidley Austin LLP, Chicago, IL, argued for appellee. Also represented by CAROLINE A. WONG; DIANA RUTOWSKI, Orrick, Herrington & Sutcliffe LLP, Menlo Park, CA. ______________________ Case: 23-1502 Document: 43 Page: 2 Filed: 01/03/2025

Before LOURIE, TARANTO, and STARK, Circuit Judges. LOURIE, Circuit Judge. CeramTec GmbH (“CeramTec”) appeals from a decision of the United States Trademark Trial and Appeal Board (“the Board”) cancelling its trademarks which claim protection for the pink color of ceramic hip components. Coorstek Bioceramics LLC f/k/a C5 Medical Werks, LLC v. CeramTec GmbH, Nos. 92058781 & 92058796, 2022 WL 17547263 (T.T.A.B. Dec. 6, 2022) (“Decision”). For the reasons discussed below, we affirm. BACKGROUND CeramTec manufactures artificial hip components used to replace damaged bone and cartilage in hip replacement procedures. The hip components are made from a zirconia- toughened alumina (“ZTA”) ceramic originally developed for use in cutting tools. The ZTA ceramic contains, among other things, chromium oxide (chromia). CeramTec markets the hip components under the name, “Biolox Delta.” Decision at *15. Biolox Delta’s chemical composition, including the addition of chromia, was the subject of CeramTec’s U.S. Patent 5,830,816 (“the ’816 patent”) until January 2013, when the patent expired. J.A. 1230. Claim element 3(e) of the ’816 patent is illustrative, claiming “the molar ratio between the [zirconia] . . . and the [chromia] amounting to 1,000:1 to 20:1.” ’816 patent col. 10, ll. 31–33. The ’816 patent’s specification and prosecution history discuss how adding chromia enables the claimed composition to obtain unprecedented levels of hardness. ’816 patent col. 3, ll. 62– 63 (the addition of chromia “makes it possible for the first time to achieve hardness values such as have not previously been achieved”); J.A. 1628 (’816 patent prosecution history: similar)). Increased hardness levels Case: 23-1502 Document: 43 Page: 3 Filed: 01/03/2025

CERAMTEC GMBH v. COORSTEK BIOCERAMICS LLC 3

enable the ZTA hip component to maintain its shape and resist deformation. Decision at *13. The amount of chromia in the ZTA ceramic affects its coloring. In fact, the range of chromia claimed in the ’816 patent can produce ZTA ceramics in a variety of colors, such as pink, red, purple, yellow, black, gray, and white. Biolox Delta contains chromia at a 0.33 weight percentage (0.33%), which makes it pink. Decision at *16, *56. CeramTec has also applied for and received other patents that spoke to chromia’s impact on ZTA ceramic hardness. In January 2012, CeramTec applied for two trademarks claiming protection for the color pink used in ceramic hip components. In April 2013, the marks were registered on the Supplemental Register.

Registration No. 4319095 e Registration No. 4319096

hip joint ball acetabular shell or fossa

Decision at *14; see also J.A. 107–10 (Supplemental Registration Nos. 4319095 and 4319096). CoorsTek Bioceramics LLC, formerly known as C5 Medical Werks, LLC (“CoorsTek”), is a competitor to CeramTec in the medical-implant market. CoorsTek manufactures two ZTA ceramic materials for hip implants: (1) CeraSurf-p, which contains chromia, rendering it pink, and (2) CeraSurf-w, which does not contain chromia, rendering it white. On March 3, 2014, CoorsTek filed a lawsuit in the District of Colorado and a cancellation petition with the Board, both seeking to cancel CeramTec’s trademarks on the ground that the color pink claimed was functional. J.A. Case: 23-1502 Document: 43 Page: 4 Filed: 01/03/2025

491–500.1 In response, at the Board, CeramTec argued that although it had once believed that adding chromia provided material benefits to ZTA ceramics, that belief was mistaken and has since been disproven. The Board found in favor of CoorsTek and concluded that the color pink was functional as it relates to ceramic hip components. Decision at *57. The Board analyzed the functionality of the marks under the four factors discussed in In re Morton–Norwich Products, Inc., 671 F.2d 1332, 1340–41 (C.C.P.A. 1982), and also considered experimental testing conducted in a related German litigation, suggesting that chromia has no effect on the material properties of ZTA ceramic hip components. Id. at *48–57. Applying the Morton–Norwich factors, the Board found that CeramTec’s patents and public communications disclosed that the addition of chromia provides material benefits to ZTA ceramics, and therefore weighed in favor of functionality. Id. at *49–54. Because there was no probative evidence as to whether Biolox Delta would work as well if made in colors apart from pink, the Board found this factor to be neutral with respect to functionality. Id. at *54. And because there was conflicting evidence as to whether chromia decreases the cost of manufacturing ceramic hip components, the Board also found this factor neutral. Id. at *55. As for the testing suggesting that chromia had no effect on the material properties of ZTA ceramics, the Board found the experiments to be methodologically flawed, and

1 The district court proceeding was ultimately resolved on procedural grounds. C5 MedicalWerks, LLC vs. CeramTec GmbH, 937 F.3d 1319, 1323 (10th Cir. 2019) (vacating the district court decision based on a lack of personal jurisdiction). Case: 23-1502 Document: 43 Page: 5 Filed: 01/03/2025

CERAMTEC GMBH v. COORSTEK BIOCERAMICS LLC 5

therefore chose not to factor the results into its functionality determination. Id. at *55–56. Lastly, the Board rejected CeramTec’s unclean hands defense, in which CeramTec argued that CoorsTek should be precluded from petitioning to cancel its trademarks on functionality grounds because CoorsTek had previously contended that chromia provided no material benefits to ZTA ceramics. Id. at *57–58. In sum, the Board cancelled the marks based on its conclusion that the marks are in fact functional. CeramTec appeals the Board’s decision. We have jurisdiction under 28 U.S.C. § 1295(a)(4)(B) and 15 U.S.C. § 1071(a)(1). DISCUSSION A trademark is not registrable or is cancellable if the design described is functional. See Valu Eng’g, Inc. v. Rexnord Corp., 278 F.3d 1268, 1273 (Fed. Cir. 2002). As the Supreme Court explained in Qualitex Co. v. Jacobson Prods. Co.: The functionality doctrine prevents trademark law, which seeks to promote competition by protecting a firm’s reputation, from instead inhibiting legitimate competition by allowing a producer to control a useful product feature. It is the province of patent law, not trademark law, to encourage invention by granting inventors a monopoly over new product designs or functions for a limited time, 35 U.S.C.

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124 F.4th 1358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ceramtec-gmbh-v-coorstek-bioceramics-llc-cafc-2025.