Definitive Holdings v. Powerteq

Court of Appeals for the Federal Circuit·Decided April 14, 2026·No. 24-1761·Published

Opinion

United States Court of Appeals for the Federal Circuit

DEFINITIVE HOLDINGS,

Plaintiff-Appellant

v.

POWERTEQ, Defendant-Appellee

2024-1761

Appeal from the United States District Court for the District of Utah in No. 2:18-cv-00844-DBB, Judge David Barlow.

Decided: April 14, 2026

CHARLES L. ROBERTS, Wasatch-IP, Salt Lake City, UT, argued for plaintiff-appellant.

JULIE S. GOLDEMBERG, Morgan, Lewis & Bockius LLP, Philadelphia, PA, argued for defendant-appellee. Also represented by NOLAN M. GOLDBERG, SHILOH RAINWATER, BALDASSARE VINTI, Proskauer Rose, New York, NY; TODD JOSEPH OHLMS, Chicago, IL; JOHN E. ROBERTS, Boston, MA.

2 DEFINITIVE HOLDINGS v. POWERTEQ

Before MOORE, Chief Judge, DYK and CUNNINGHAM, Circuit Judges.

CUNNINGHAM, Circuit Judge.

Definitive Holdings, LLC (“Definitive”) sued Powerteq LLC (“Powerteq”) for infringement of patent claims relating to reprogramming engine controllers. The United States District Court for the District of Utah granted Powerteq’s motion for summary judgment of invalidity under the pre-America Invents Act (“AIA”) version of 35 U.S.C. § 102(b). Definitive Holdings, LLC v. Powerteq LLC, 731 F. Supp. 3d 1243, 1251–62 (D. Utah 2024) (“Decision ”). Definitive appeals, contending that the district court erroneously relied on inadmissible hearsay and that the 35 U.S.C. § 102(b) on-sale bar should be limited to sales expressly disclosing the prior art device’s functionality. We affirm.

I. BACKGROUND

Definitive sued Powerteq in the District of Utah, alleging infringement of claims 1, 12, 21, 23, 27, 28, 31, and 32 of U.S. Patent No. 8,458,689 (the “’689 patent”). Decision at 1249–50. The ’689 patent has a priority date of March 30, 2001.1 It claims methods and apparatuses for “upgrading software in an engine controller,” by connecting a device to an engine controller, where the device can replace portions of the stock engine control software with new data blocks while retaining an image of the stock engine control software. See, e.g., ’689 patent claims 1, 27.

1 “Sales made more than one year before the patent’s priority date implicate the on-sale bar of 35 U.S.C. § 102(b).” Dippin’ Dots, Inc. v. Mosey, 476 F.3d 1337, 1340 (Fed. Cir. 2007). For the ’689 patent, this “critical date,” id., is March 30, 2000.

DEFINITIVE HOLDINGS v. POWERTEQ 3

Powerteq moved for summary judgment of invalidity under pre-AIA 35 U.S.C. §§ 101, 102(b), and 112, as well as for summary judgment of non-infringement. Decision at 1250–51 & n.22. With respect to 35 U.S.C. § 102(b), Powerteq argued that, by at least 1996, non-party Hypertech Inc. (“Hypertech”) sold a device named the “Hypertech Power Programmer III” (the “PP3”) that embodied all limitations of the asserted claims of the ’689 patent. See Decision at 1252, 1257–58; J.A. 7038–39 (Ramsey Dep. 18:16 to 19:21). Definitive “d[id] not dispute any of Powerteq’s alleged undisputed facts,” but instead contended that “the facts upon which the motion [was] based” relied on “inadmissible evidence.” J.A. 6657–58. Definitive specifically objected to the admissibility of: (1) the deposition testimony of Hypertech’s 30(b)(6) witness, CEO and owner Mr. Ramsey, that “Hypertech was based in the United States and that it sold PP3 units in the United States beginning in 1994,” Decision at 1253–54; and (2) the source code of the PP3, as well as an expert declaration from Dr. Brogioli relying on that source code, Decision at 1254–55.

Definitive argued that Mr. Ramsey’s deposition testimony would be inadmissible at trial because it violated Federal Rule of Evidence 602’s requirement that a “witness may testify to a matter only if evidence is introduced sufficient to support a finding that the witness has personal knowledge of the matter.” Decision at 1253 (quoting Fed. R. Evid. 602). The district court determined that Mr. Ramsey’s deposition testimony was admissible at summary judgment notwithstanding any lack of personal knowledge, holding that Federal Rule of Civil Procedure 30(b)(6) permits corporate representatives to testify outside of their personal knowledge. Decision at 1253–54. Accordingly , the district court ruled that “it is immaterial that Mr. Ramsey joined Hypertech years after the company stopped selling the [PP3] or that no engineers who worked on the device still work for Hypertech today” and 4 DEFINITIVE HOLDINGS v. POWERTEQ

considered Mr. Ramsey’s deposition testimony in its summary judgment analysis. Decision at 1254; see, e.g., Decision at 1257 (“Mr. Ramsey testified as to sales of the PP3 made in the United States between 1994 and 2001 . . . .”).

Definitive further contended that the source code of the PP3 was inadmissible hearsay and that no exception applied . Decision at 1254. The district court determined that “code that merely describes computer commands” is not hearsay because “the code is not a statement,” even though “descriptions within the code . . . would fall within the definition of hearsay.” Decision at 1255. The district court further concluded that both “the code and the descriptions within the code” could be presented in an admissible form at trial because they were business records under Federal Rule of Evidence 803(6) and because “another employee at Hypertech who was charged with maintaining records” would be able to authenticate the source code. Decision at 1255. In deciding summary judgment, the district court thus considered the PP3’s source code as well as Powerteq’s expert’s declaration analyzing the source code. See, e.g., Decision at 1259 (“[D]r. Brogioli declared that the PP3 contained code that enabled it to save and restore the original software.”).

Definitive also contended that the PP3 was not anticipatory prior art. Decision at 1255–62. Definitive argued that Hypertech abandoned its use of the PP3 and that the sale of the PP3 did not render the asserted claims of the ’689 patent invalid because Powerteq offered no evidence that the PP3 disclosed all limitations of the asserted claims by disclosing the inner workings of the device to the public. Decision at 1255–57. The district court rejected these arguments , holding: (1) that “[n]otwithstanding abandonment of the prior use—which may preclude a challenge under section 102(g)— . . . third party prior use accessible

DEFINITIVE HOLDINGS v. POWERTEQ 5

to the public is a section 102(b) bar,”2 Decision at 1256 (first alteration in original) (quoting Eolas Techs. Inc. v. Microsoft Corp., 399 F.3d 1325, 1333 (Fed. Cir. 2005)); and (2) that “disclosure is not required under the prior sale doctrine,” Decision at 1257. Accordingly, the district court held that there was “no genuine dispute of material fact that the [PP3] was the subject of a commercial offer for sale more than one year before the critical date,” Decision at 1257, and that there was no genuine dispute of material fact that the PP3 fully embodied each of the asserted claims, see Decision at 1258–62.

The district court granted Powerteq’s motion for summary judgment of invalidity under 35 U.S.C. § 102(b) and did not reach Powerteq’s other arguments. Decision at 1262. Definitive timely appealed. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).

II. STANDARD OF REVIEW

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