Emerson Electric Co. v. Sipco, LLC

Court of Appeals for the Federal Circuit·Decided September 30, 2020·No. 19-1301·Unpublished

Opinion

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit

EMERSON ELECTRIC CO.,

Appellant

v.

SIPCO, LLC, Cross-Appellant

2019-1301, 2019-1490

Appeals from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2017- 00359.

Decided: September 30, 2020

DOUGLAS HALLWARD-DRIEMEIER, Ropes & Gray LLP, Washington, DC, for appellant. Also represented by JAMES RICHARD BATCHELDER, JAMES LAWRENCE DAVIS, JR., DANIEL W. RICHARDS, East Palo Alto, CA; STEVEN PEPE, New York, NY.

GREGORY J. GONSALVES, Gonsalves Law Firm, Falls Church, VA, for cross-appellant.

2 EMERSON ELECTRIC CO. v. SIPCO, LLC

Before LOURIE, MOORE, and O’MALLEY, Circuit Judges.

O’MALLEY, Circuit Judge.

This is an appeal from an inter partes review proceeding requested by Emerson Electric Co. (“Emerson”). The U.S. Patent Trial and Appeal Board (the “Board”) concluded that claims 32, 34, 37–38, 55–57 and 59 (the “Ground 3 claims”) of U.S. Patent No. 6,437,692 (“the ’692 patent”) are unpatentable because they are anticipated, or would have been obvious over the Cunningham reference. J.A. 33–51. The Board concluded, however, that Emerson failed to establish, by a preponderance of the evidence, that claims 1, 3–8, and 11–14 (the “Ground 1 claims”) and claims 24–31, 42, 43, 46–49, 51–54 and 60–64 (the “Ground 2 claims”) are unpatentable. J.A. 51. Emerson appeals the Board’s findings of patentability with respect to the Ground 2 claims. Patent Owner SIPCO, LLC (“SIPCO”) cross-appeals the Board’s invalidity findings with respect to the Ground 3 claims. Because we agree with the Board’s claim construction of the “low-power radio frequency signal ” limitations and conclude that substantial evidence supports the Boards underlying factual findings, we affirm.

I. BACKGROUND A. The ’692 Patent

The ’692 patent, entitled “System and Method for Monitoring and Controlling Remote Devices,” relates to a computerized remotely operated system for monitoring, reporting on, and controlling remote systems. ’692 patent, col. 1, ll. 26–28. At the time of the invention, existing monitoring and controlling systems typically implemented a local network of hard-wired sensors and actuators, and a local controller. Id., col. 2, ll. 18–21. According to the patent , however, these prior art systems were costly to operate . Id. They involved expenses associated with developing and installing local components, as well as operational expenses associated with connecting functional

EMERSON ELECTRIC CO. v. SIPCO, LLC 3

sensors and controllers with the local controller. Id., col. 2, ll. 22–24. These systems were also susceptible to a single point of failure because of their reliance on local controllers . Id., col. 5, ll. 39–40. The claimed invention of the ’692 patent does not require a local controller, and transfers system information from the remote system to a wide area network (“WAN”) gateway interface with integrated software applications to process that information. Id., col. 2, ll. 47– 51.

As relevant to Emerson’s appeal of Ground 2, independent claims 24, 42, 49, and 60 recite a method and system for controlling remote devices and control systems implementing the above-recited system information transfer . Claims 24, 42, 49 and 60 all contain limitations directed to a computer on a WAN issuing a control signal in response to data originating from a sensor on the side of a gateway (the “control signal” limitation). J.A. 23. Independent claim 24 is illustrative and recites:

24. A method for controlling a system comprising : remotely collecting data from at least one sensor; processing the data into a radio-frequency (RF) signal; transmitting the RF signal, via a relatively low- power RF transceiver, to a gateway; translating the data in the RF signal into a network transfer protocol; sending the translated data to a computer, wherein the computer is configured to appropriately respond to the data generated by the at least one sensor by generating an appropriate control signal; sending the control signal via the network to the gateway;

4 EMERSON ELECTRIC CO. v. SIPCO, LLC

translating the control signal from a network transfer protocol into an RF control signal; transmitting the RF control signal; receiving the RF control signal; translating the received RF control signal into an analog signal; and applying the analog signal to an actuator to effect the desired system response.

’692 patent, col. 20, ll. 43–63 (emphasis added). All of the Ground 2 claims include the control signal limitation.

As relevant to SIPCO’s cross-appeal of Ground 3, independent claims 32 and 55 recite a system for monitoring remote devices and a method for collecting information and providing data services, respectively. Independent claim 32 recites:

32. A system for monitoring remote devices comprising : at least one sensor adapted to generate an electrical signal in response to a physical condition; at least one wireless transmitter configured to encode the electrical signal, the wireless transmitter further configured to transmit the encoded electrical signal and transmitter identification information in a low-power radio- frequency (RF) signal; at least one gateway connected a wide area network (WAN) configured to receive and translate the RF signal, the gateway further configured to deliver the encoded electrical signal and transmitter identification information to a computer on the WAN; and

EMERSON ELECTRIC CO. v. SIPCO, LLC 5

a computer configured to execute at least one computer program that formats and stores select information responsive to the electrical signal for retrieval upon demand from a remotely located device.

’692 patent, col. 21, ll. 19–36 (emphasis added). Claims 34, 36, 37, and 38 depend from claim 32. Independent claim 55 recites:

55. A method for collecting information and providing data services comprising: adaptively configuring a data translator at the output of a local controller, wherein the data translator converts the output data stream into an information signal consisting of a transmitter code and an information field; adaptively configuring at least one transmitter with the data translator, wherein the transmitter converts the information signal into a low-power RF signal; placing a plurality of relatively low-power radio frequency (RF) transceivers dispersed geographically wherein the low-power RF signal is received and repeated as required to communicate the information signal to a gateway, the gateway providing access to a WAN; translating the low-power RF signal within the gateway into a WAN compatible data transfer protocol; transferring the translated low-power RF signal via the WAN to a computer wherein the computer is configured to manipulate and store data provided in said signal; and granting client access to the computer.

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’692 patent, col. 23 l. 43–col. 24 l. 5 (emphasis added). Claims 56–57, and 59 depend from claim 55.

B. Cunningham

U.S. Patent No. 6,124,806 (“Cunningham”), entitled “Wide Area Remote Telemetry,” issued on September 26, 2000. Cunningham relates to “the fields of automatic meter reading of electric, gas, water meters and other systems ,” including systems that can communicate with data collection modules via wireless transmission. J.A. 1045, col. 1 ll. 15–18; J.A. 1047, col. 6 ll. 11–50. The reference discloses a remote-device monitoring system that uses a sensor interface module, a data collection module, commercially available information transmission systems, and a host module. J.A. 1046, col. 4 ll. 51–53.

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