Durel Corporation, Plaintiff-Cross v. Osram Sylvania Inc.

256 F.3d 1298, 2001 WL 735785
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 1, 2001
Docket00-1261, 00-1391
StatusPublished
Cited by30 cases

This text of 256 F.3d 1298 (Durel Corporation, Plaintiff-Cross v. Osram Sylvania 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
Durel Corporation, Plaintiff-Cross v. Osram Sylvania Inc., 256 F.3d 1298, 2001 WL 735785 (Fed. Cir. 2001).

Opinion

LOURIE, Circuit Judge.

Osram Sylvania Inc. (“Sylvania”) appeals from the judgment of the United States District Court for the District of Arizona holding that Sylvania infringed Durel Corporation’s U.S. Patents 5,418,-062, 5,439,705, and 5,156,885. Durel Corp. v. Osram Sylvania Inc., 52 USPQ2d 1418, 1435 (D.Ariz.1998). Sylvania also appeals from the district court’s grant of partial summary judgment dismissing Sylvania’s counterclaim for declaratory judgment of invalidity for failure to meet the enablement requirement of 35 U.S.C. § 112. Id. Finally, Sylvania appeals from the district court’s denial of its motion for a new trial on damages. Durel Corp. v. Osram Sylvania Inc., No. 95-1750 (D.Ariz. Apr. 13, 2000). Durel cross-appeals from the district court’s denial of its motion for judgment as a matter of law that Sylvania willfully infringed the ’885 patent. Durel Corp. v. Osram Sylvania Inc., No. 95-1750 (D.Ariz. Apr. 21, 2000). Durel also cross-appeals from the denial of its motion to award damages for the period between the close of discovery and entry of the injunction. Durel Corp. v. Osram Sylvania Inc., No. 95-1750 (DAriz. May 4, 2000). Because the district court erred in its construction of the term “oxide coating” and Sylvania’s coatings do not infringe Durel’s patents as a matter of law, we reverse.

BACKGROUND

Durel is the exclusive licensee 1 of the ’062, ’705, and ’885 patents, which relate to encapsulated electroluminescent (“EL”) phosphor particles used in applications such as illuminating watch faces and *1301 instrument panels in motor vehicles. Encapsulating phosphor particles within the claimed oxide coatings increases the particles’ resistance to deterioration attributable to atmospheric humidity. Durel, 52 USPQ2d at 1420. All of the independent claims of the patents recite that the phosphor is encapsulated by an “oxide coating.” Claim 1 of the ’062 patent claims a product (in relevant part) as follows:

1. Encapsulated electroluminescent phosphor particles, each comprising a particle of zinc sulfide-based electroluminescent phosphor which is essentially completely encapsulated within a substantially transparent, continuous metal oxide coating ....

’062 patent, col. 14, II. 24-28 (emphasis added). The specification of each patent defines “oxide coating” as follows:

As used herein, “oxide coating” means a material made up primarily of metal cations and oxygen, but which may contain minor amounts of other elements and compounds originating in the precursor materials or phosphor particles, which can be generated in coating form on phosphor particles under the conditions described herein. Advantageous results have been obtained with coatings of titania (Ti02) and titania/silica Ti(V(Si02). It is believed that useful results may also be obtained with other oxides formed from precursors in low temperature reactions such as silica (Si02), alumina (A1203), tin oxide (Sn02), zirconia (Zr02), etc., and similarly formed compound oxides such as mul-lite (3A1203« 2Si[0]2).

’062 patent, col. 5, II. 36^19; ’885 patent, col. 5, II. 33-45; ’705 patent, col. 5, II. 36-49 (emphasis added).

The patents each disclose the same twenty-eight examples, three of which coat phosphor with Ti02/Si02; the remaining twenty-five examples coat phosphor with Ti02. ’062 patent, col. 11, II. 55 to col. 14, II. 22. The oxide coating can be formed by the hydrolysis reaction of precursor molecules such as titanium tetrachloride (TiCl4) and water, which react in the vapor phase to produce Ti02 and hydrochloric acid. Id. at col. 6, II. 41-52. Moreover, a high ratio of titanium tetrachloride molecules to water molecules is maintained “to promote the formation of more anhydrous titania films which are believed to provide optimum protection against humidity-accelerated decay.” Id. at col. 7, II. 20-22. If encapsulation is performed at low temperatures, the coatings may be insufficiently moisture impermeable, “a result it is believed of having a more open or more hydrated structure.” Id. at col. 8, II. 12-13.

Sylvania manufactures two types of phosphors relevant to this appeal: EL-type phosphors coated by a fluidized-bed reaction of water vapor and trimethyl aluminum; and newly encapsulated (“NE”)type phosphors coated by a water-free pyrolysis reaction of trimethyl aluminum, oxygen, and ozone. It is undisputed on appeal that the coatings on both the EL- and NE-type phosphors are a mixture of aluminum oxide hydroxide, AIO(OH), and aluminum trihydroxide, Al(OH)3. Durel, 52 USPQ2d at 1429.

Durel sued Sylvania for infringement of its ’062, ’705, and ’885 patents by the EL-type phosphors. Id. at 1427. The district court * construed the term “oxide coating” *1302 as being primarily composed of metal cations and oxygen, but also possibly containing other elements or compounds found in the original precursor ingredients or phosphor particles. Id. at 1428. The court then concluded that “a synthetic chemist would interpret the [patents] by using atomic mass to determine whether a coating is primarily metal cations and oxygen atoms with minor amounts of other elements and compounds found in the precursors.” Id. at 1428. The court calculated that AIO(OH) is composed of approximately 43.3% aluminum, 53.3% oxygen, and 3.4% hydrogen, and that Al(OH)3 2 is composed of 49.1% aluminum, 45.3% oxygen, and 5.6% hydrogen. 3 Id. at 1429. Finally, the court concluded that AIO(OH), containing 96.6% metal cations and oxygen and 3.4% other elements, and Al2(OH)3, containing 94.4% metal cations and oxygen and 5.6% other elements, fell squarely within its construction of the term “oxide coating.” Id. Sylvania’s coatings contained at least 94.4% aluminum and oxygen, satisfying the “primarily” requirement of the court’s definition of “oxide coating.” Id. The court concluded that the amount of hydrogen, at most 5.6%, was minor in light of the amount of metal cations and oxygen in the coating. Id. Moreover, because the court found that hydrogen originated from water, which is defined in the specification as a precursor compound, it fell within the definition of the minor (non-metal or oxygen) ingredients of the coating. Id. The court therefore concluded that Sylvania’s coating satisfied the oxide coating claim requirement and granted partial summary judgment to Durel. Id.

Finally, the court dismissed Sylvania’s counterclaim for declaratory judgment of invalidity for lack of enablement under 35 U.S.C. 112, ¶ 1, concluding that Sylvania had not proven by clear and convincing evidence that Durel’s patents were none-nabling. Id. at 1435.

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256 F.3d 1298, 2001 WL 735785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/durel-corporation-plaintiff-cross-v-osram-sylvania-inc-cafc-2001.