Coda Development S.R.O. v. Goodyear Tire & Rubber Company

Court of Appeals for the Federal Circuit·Decided December 8, 2025·No. 23-1880·Published

Opinion

United States Court of Appeals for the Federal Circuit

CODA DEVELOPMENT S.R.O., CODA INNOVATIONS S.R.O., FRANTISEK HRABAL, Plaintiffs-Appellants

v.

GOODYEAR TIRE & RUBBER COMPANY, ROBERT BENEDICT,

Defendants-Appellees

2023-1880

Appeal from the United States District Court for the Northern District of Ohio in No. 5:15-cv-01572-SL, Judge Sara Lioi.

Decided: December 8, 2025

BOYD CLOERN, Steptoe LLP, Washington, DC, argued for plaintiffs-appellants. Also represented by JOSEPH F. ECKER, LEAH MARGARET QUADRINO, SCOTT RICHEY, CHRISTOPHER ALAN SUAREZ.

GREGORY A. CASTANIAS, Jones Day, Washington, DC, argued for defendants-appellees. Also represented by TRACY A. STITT; JOHN CHARLES EVANS, CALVIN GRIFFITH, 2 CODA DEVELOPMENT S.R.O. v.

GOODYEAR TIRE & RUBBER COMPANY

THOMAS KOGLMAN, DAVID MICHAEL MAIORANA, Cleveland, OH.

Before LOURIE, DYK, and CUNNINGHAM, Circuit Judges.

CUNNINGHAM, Circuit Judge.

Coda Development s.r.o., Coda Innovations s.r.o., and Frantisek Hrabal (collectively, “Coda”) appeal a decision of the United States District Court for the Northern District of Ohio holding that Goodyear Tire & Rubber Company and Robert Benedict (collectively, “Goodyear”) were entitled to judgment as a matter of law of no trade secret misappropriation and denying correction of inventorship of Goodyear ’s U.S. Patent No. 8,042,586 (the “’586 patent”). See Coda Dev. s.r.o. v. Goodyear Tire & Rubber Co., 667 F. Supp. 3d 590, 611 (N.D. Ohio 2023) (“JMOL Decision ”); Coda Dev. s.r.o. v. Goodyear Tire & Rubber Co., 667 F. Supp. 3d 567, 589 (N.D. Ohio 2023) (“Bench Decision ”). For the reasons below, we affirm.

I. BACKGROUND

Coda sued Goodyear in the United States District Court for the Northern District of Ohio, raising, among other things, claims for trade secret misappropriation under Ohio state law and correction of inventorship of the ’586 patent. 1 JMOL Decision at 593; J.A. 158–96. Both the asserted trade secrets and the ’586 patent relate to self-

1 This appeal marks the second time that this case is before this court. Previously, we vacated the district court’s dismissal and remanded the case to the district court to allow Coda to amend its complaint. CODA Dev. s.r.o. v. Goodyear Tire & Rubber Co., 916 F.3d 1350, 1362 (Fed. Cir. 2019). The amended complaint similarly raised trade secret and correction of inventorship claims. See JMOL Decision at 594 & n.3; J.A. 1120; J.A. 1943–2131.

CODA DEVELOPMENT S.R.O. v. 3 GOODYEAR TIRE & RUBBER COMPANY

inflating tire (“SIT”) technology. See, e.g., JMOL Decision at 595–97; ’586 patent col. 1 ll. 5–7; id. at col. 10 ll. 29–54.

The district court held a jury trial on Coda’s trade secret claims in September 2022. JMOL Decision at 598. The jury found that Goodyear had misappropriated five of Coda’s alleged trade secrets and awarded Coda $2.8 million in compensatory damages and $61.2 million in punitive damages. Id. at 598–99; J.A. 17997–8001. These five alleged trade secrets, the only ones at issue on appeal, were defined by Coda as described below:

TS 7: Coda’s design and development of a multi- purpose interface for transporting air in a self-inflating tire that can connect to the air source, connect to the tire interior, connect to the peristaltic pump, serve as an end to the peristaltic pump, connect to the regulator, carry the regulator, go around or through the bead, go around or through the tire layers, click to the bead and hold the filter; TS 11: Coda’s knowledge of how to design and develop self-inflating tire pump and groove solutions, consisting of round pump tubing in an outward-facing groove with straight, angled interior geometry; pump tubing with geometry that interlocks with its seat; pump tubing with elliptical interior cross-section ; variant pump tube, groove and chamber dimensions , size and materials; pump tube and groove design to minimize internal friction; a “tubeless ” pump solution (i.e., a pump that may compose an integral part of tire); cross-section designs that minimize stress on compression in order to improve durability; and tubing with reinforced wall; TS 20: Coda’s knowledge of how to design and develop self-inflating tire systems with circulating and non-circulating pump variations, comprised of the disclosure of technical information through observations and descriptions of the three-way valve 4 CODA DEVELOPMENT S.R.O. v.

GOODYEAR TIRE & RUBBER COMPANY

regulator, and explanations of the function and airpaths for the states of recirculation and inflation; closure elements related to recirculation systems and a pressurized air reservoir that would permit the storage of air within the system without the need to engage the pump tube with each tire revolution ; recirculation at different pressures, such as ambient pressure; recirculation through various paths, such as through the tire, the atmosphere and the pump tube; the safety benefit of recirculating around the pump tube isolated from the tire cavity; a check valve on intake (between the pump tube and the atmosphere) to only permit air in when pressure in the pump tube falls below atmospheric pressure; and a check valve on output (between the pump tube and tire interior) to only allow air into the tire when pressure in the pump tube exceeds the tire pressure; TS 23: Coda’s development of a functional self-inflating tire as demonstrated by the test results confirming that the tire pump can generate pressure higher than the pressure in the tire cavity, through the test results showing that the pump placed on the tread could generate 6.5 absolute atmospheres of pressure (5.5 relative atmospheres); the test results showing that the tube-in-groove pump of the prototype could generate 3.3 absolute atmospheres of pressure; and test results that demonstrated that the Flap Tubes could generate 1 relative atmosphere of pressure; TS 24: Coda’s knowledge regarding the optimal location for placement of a pump in a tire for tire manufacturers, namely, in the sidewall close to, and above, the rim where the tire cyclically deforms in response to deformation.

CODA DEVELOPMENT S.R.O. v. 5 GOODYEAR TIRE & RUBBER COMPANY

JMOL Decision at 596–98, 611 (cleaned up); Appellants’ Br. 16–40.

Following trial, the district court granted Goodyear’s motion for judgment as a matter of law under Federal Rule of Civil Procedure 50(b), concluding that (1) TS 7, TS 11, TS 20, and TS 24 are not sufficiently definite; (2) TS 11, TS 20, TS 23, and TS 24 are not “secret;” (3) TS 7, TS 11, TS 20, and TS 23 had never been used or disclosed by Goodyear ; and (4) TS 11 and TS 20 were never conveyed by Coda to Goodyear. JMOL Decision at 602–11. After considering the parties’ briefs in lieu of a bench trial, see Bench Decision at 572–73; see also id. at 571 (citing Fed. R. Civ. P. 52(a)(1)), the trial court denied Coda’s correction of inventorship claim and denied its other pertinent requests for relief. Id. at 589.

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

II. STANDARD OF REVIEW

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Coda Development S.R.O. v. Goodyear Tire & Rubber Company, (Fed. Cir. 2025).

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