Creative Internet Advertising Corp. v. Yahoo!, Inc.

476 F. App'x 724
CourtCourt of Appeals for the Federal Circuit
DecidedApril 22, 2011
Docket2010-1215
StatusUnpublished
Cited by4 cases

This text of 476 F. App'x 724 (Creative Internet Advertising Corp. v. Yahoo!, Inc.) 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
Creative Internet Advertising Corp. v. Yahoo!, Inc., 476 F. App'x 724 (Fed. Cir. 2011).

Opinions

BRYSON, Circuit Judge.

This patent infringement case involves instant messaging technology that is adapted to display background advertisements and that provides each user the ability to opt out of displaying advertisements. Yahoo!, Inc., appeals the final judgment of the United States District Court for the Eastern District of Texas denying Yahool’s motions for judgment as a matter of law (“JMOL”) that U.S. Patent No. 6,205,432 (“the '432 patent”) was invalid and not infringed by Yahoo! Messenger. We affirm the judgment with respect to validity but reverse with respect to infringement.

I

Creative Internet Advertising Corporation asserted claim 45 of the '432 patent against Yahoo!. The '432 patent primarily describes a system in which references to advertisements are inserted at a server between end users of the instant messaging software.1 However, Yahool’s instant messaging product, Yahoo! Messenger, inserts references to advertisements on end users’ computers instead of on a server. The central dispute in this appeal is whether claim 45 reads on Yahool’s server-less system. Claim 45 recites the following (emphasis added):

45. A computer program embodied on a computer-readable medium for inserting a background reference to a stored advertisement into an end user communication message, said computer program comprising:
logic configured to receive an end user communication message from a first site;
logic configured to insert a background reference to a stored advertisement into said end user communication message, [726]*726wherein said logic configured to insert the background reference is further configured to insert said background reference responsive to an overwrite authorization; and
logic configured to transmit said end user communication message with the background reference to a second site.

Yahoo! sought a construction requiring the three elements of claim 45 to occur in the same sequence as written, i.e., first receive, then insert, then transmit. Creative contended that the claim did not require sequential action because it was an apparatus claim. Under Creative’s construction, claim 45 would read on a program that inserted a background reference into a message, transmitted the message, and then received the message at another site. After a Markman hearing, the district court rejected Yahool’s proposed construction and construed claim 45 as a purely structural claim without any spatial or sequential limitations. The district court also construed “end user communication message” as “[a] set of data transmitted over a communication network,” and “overwrite authorization” as “[a]pproval to replace an existing background reference in an end user communication message.”

The case proceeded to trial, but the parties still disputed whether claim 45 required all three elements to act on the same message. Yahoo! contended that an infringing program had to be configured to perform all three actions (receipt, insertion, and transmittal) on the same message. Accordingly, Yahoo! moved for supplementary claim construction of the term “said.” In an effort to convey that all three actions had to be performed on the same message, Yahoo! proposed the following jury instruction:

The use of the word “said” in a claim refers to an earlier use of the term in the claim, and more specifically, refers to the first or initial use of the term found in the claim. In grammatical terms, “[generally, a term refers to an antecedent by repeating the antecedent identically except for preceding it with the word ‘said’ instead of ‘a’ or ‘the.’”

Creative disagreed with Yahool’s interpretation of the claim as requiring that all three actions be performed on the same message. It contended that the claim would be infringed by a program that performed all three actions, even if all three actions were not performed on the same message.

The district court did not resolve that dispute; instead, it linked the dispute to the construction of the term “an” preceding the first instance of “end user communication message” in the body of the claim. The district court decided to provide the jury with an additional paragraph at the end of the claim construction chart, which included standard constructions of the terms “an” and “said” along with its earlier ruling that claim 45 did not require sequential ordering. That paragraph stated:

The use of the article “a” or “an” in a patent claim means “one or more” in claims containing the transitional phrase “comprising.” Use of the word “said” in the beginning of a phrase indicates that it is referring to a previous use of the same or similar phrase. Further, claim 45 is an apparatus claim, which means that the claim recites structure — logic or source code — comprising a computer program. The claim does not recite steps or processes that must take place in a particular order.

That paragraph was featured extensively in the parties’ closing arguments. In its initial summation, Creative asked the jury to refer to the court’s additional instructions regarding “an” to address whether claim 45 requires a single message. Crea[727]*727tive’s attorney told the jury, ‘You heard a lot about one message, this message, different message. ‘A’ or ‘an.’ So if you look in the Claim 45, as defined by the Court, and it uses that phrase, it’s one or more.” Creative’s attorney later applied that multiple message theory to a discussion of the three elements of claim 45, telling the jury that “if the logic, the code in the computer program was capable of doing these three things, it infringes.” He also proposed, as an alternative theory, that Yahoo! Messenger infringed even if the three claim elements “all have to be performed on the same message.”

In Yahooi’s summation, its attorney described two fundamental disagreements between the parties on infringement. First, must the “message or messages of all three limitations be the same?” Second, “are the individual messages separate messages or are they all just one message?” After discussing the three elements of claim 45, he concluded his infringement discussion by asking and answering a claim construction question: “Must the messages of all three be the same? Absolutely. That’s what said means. There’s the linkage.”

Creative’s attorney responded to that contention at the very outset of his rebuttal closing argument. His first words in rebuttal were:

Ladies and Gentlemen, everything you just heard, every noninfringement argument you just heard is contradicted by the instructions in the back of your book attached to the chart [referring to the supplemental paragraph].
What did he say, it’s got to be one message. His Honor gave you an instruction, put it in the back of your book yesterday, one or more messages.

Following deliberations, the jury found that claim 45 was not invalid, that it was infringed both literally and under the doctrine of equivalents, and that the infringement was willful. Yahoo! moved for JMOL on invalidity and noninfringement. Both motions were denied. The district court enhanced the jury’s damages award and ordered an ongoing royalty despite Yahoo!’s efforts to design around the patent.

II

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476 F. App'x 724, Counsel Stack Legal Research, https://law.counselstack.com/opinion/creative-internet-advertising-corp-v-yahoo-inc-cafc-2011.