Cytologix Corp. v. Ventana Medical Systems, Inc.

424 F.3d 1168, 76 U.S.P.Q. 2d (BNA) 1592, 2005 U.S. App. LEXIS 20203, 2005 WL 2293079
Court of Appeals for the Federal Circuit·Decided September 21, 2005·No. 2004-1446·Published·Cited by 79 cases

Opinion

DYK, Circuit Judge.

Ventana Medical Systems, Inc. (“Venta-na”) appeals from the order of the United States District Court for the District of Massachusetts enjoining Ventana from various infringing acts. CytoLogix Corp. v. Ventana Med. Sys., Inc., No. 01-CV-10178 (D.Mass. Apr. 26, 2004). The injunction was based on a jury verdict of infringement. The jury found that Venta-na infringed claims 1-3 and 5-15 of United States Patent No. 6,180,061 (the “ ’061 patent”) and claims 1-3 and 5-13 of United States Patent No. 6,183,693 (the “ ’693 patent”). Ventana was enjoined from further infringement of the asserted claims. We uphold the injunction as to claims 8-14 of the ’061 patent because we sustain the jury verdict of infringement. As to claims 1-3, 5-7, and 15 we also find that infringement *1170 has been established. However, we remand to the district court to consider whether a new trial should be granted on the issue of obviousness with respect to claims 1-3, 5-7 and 15. We uphold the injunction with respect to claims 1-3 and 5-12 of the ’693 patent because we sustain the jury verdict of infringement. With respect to claim 13, we reverse because the jury verdict of infringement is not supported by substantial evidence.

BACKGROUND

CytoLogix Corp. (“CytoLogix”) is the assignee of the ’061 and ’693 patents. The patents claim an automated slide stainer used to stain tissue samples mounted on microscope slides. The staining facilitates microscope examination of the tissue samples. Ventana and CytoLogix are competitors in the automated slide stainer market.

CytoLogix filed suit against Ventana for infringement of the claims of the ’061 patent, and later amended its complaint to assert infringement under the ’693 patent. The district court construed disputed claim terms at the close of trial and provided them to the jury before closing arguments in the form of a glossary. The district court did not explain its reasons for reaching these constructions. With respect to the ’061 patent the district court construed the term “heating station” and the phrase “separate electrical power connections being provided to said first and second heating elements.” 1 The district court construed “heating station” to mean “a slide support and heating element capable of directly heating at least one microscope slide, but designed to hold and heat a number of slides by conductive heating, e.g., direct contact of a heated surface to a portion of the microscope slide to be heated.” (J.A. at 30.) It construed “separate electrical power connections being provided to said first and second heating elements” to mean that “each heating element has a separate connection to power and ground.” (Id.)

The district court also construed various claim terms of the ’693 patent. It construed “temperature controller” to mean “the switch, power amplifier or like device that directly adjusts the flow of electric power to one or more heating elements. *1171 The temperature controller includes a means for converting temperature data.” 2 (J.A. at 31.) It construed “temperature controller electronic circuit” to mean “electronic components, wiring, and printed circuit board which comprise the power amplifying device and decoder.” 3 (Id.)

*1172 The jury found claims 1-3 and 5-15 of the ’061 patent and claims 1-3 and 5-13 of the ’693 patent infringed by Ventana and not invalid. The district court denied Ven-tana’s motion for judgment as a matter of law or, in the alternative, a new trial. The district court thereafter entered a permanent injunction enjoining Ventana from infringing the asserted claims but did not reach the issue of damages. Ventana appeals.

DISCUSSION

We first consider our jurisdiction. Ven-tana states that we have jurisdiction pursuant to 28 U.S.C. § 1292(c)(2) because the district court entered a judgment that is final except for an accounting. CytoLogix disagrees, pointing out that the district court has not entered judgment. We agree that we do not have jurisdiction under § 1292(c)(2) because the district court has not entered a judgment with respect to liability. (J.A. at 1-6.) However, CytoLogix argues that we have jurisdiction pursuant to 28 U.S.C. § 1292(c)(1) because Ventana is appealing an order of the district court granting an injunction. We agree.

We review a district court’s denial of a motion for judgment as a matter of law without deference, and the district court’s denial of a motion for new trial for abuse of discretion. Acevedo-Delgado v. Rivera, 292 F.3d 37, 40 (1st Cir.2002).

I

This case primarily involves issues of claim construction. In construing patent claims we follow the methodology set forth in our recent en banc decision in Phillips. Phillips v. AWH Corp., 415 F.3d 1303 (Fed.Cir.2005) (en banc). We note that in this case the parties agreed, contrary to the district court’s wishes, not to have a Markman hearing, and that the claims were not construed until the close of evidence. This was not erroneous since we have held that the district court has considerable latitude in determining when to resolve issues of claim construction. See Jack Guttman, Inc. v. Kopykake Enters., Inc., 302 F.3d 1352, 1361 (Fed.Cir.2002) (“District courts may engage in a rolling claim construction, in which the court revisits and alters its interpretation of the claim terms as its understanding of the technology evolves.”). However, by agreement the parties also presented expert witnesses who testified before the jury regarding claim construction, and counsel argued conflicting claim constructions to the jury. This was improper, and the district court should have refused to allow such testimony despite the agreement of the parties. The risk of confusing the jury is high when experts opine on claim construction before the jury even when, as here, the district court makes it clear to the jury that the district court’s claim constructions control. 4

*1173 Although in this case there is no ground for reversal since there was no objection to the expert testimony as to claim construction, it appears that the conflicting expert views as to claim construction created confusion and may have led to a verdict of infringement with respect to the asserted claims of the ’061 patent that was not supported by substantial evidence under the district court’s claim construction.

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Cytologix Corp. v. Ventana Medical Systems, Inc., 424 F.3d 1168, 76 U.S.P.Q. 2d (BNA) 1592, 2005 U.S. App. LEXIS 20203, 2005 WL 2293079 (Fed. Cir. 2005).

424 F.3d 1168 (Cytologix Corp. v. Ventana Medical Systems, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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