Exmark Manufacturing Co. v. Briggs & Stratton Power Products Group, LLC

879 F.3d 1332
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 12, 2018
Docket2016-2197
StatusPublished
Cited by115 cases

This text of 879 F.3d 1332 (Exmark Manufacturing Co. v. Briggs & Stratton Power Products Group, LLC) 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
Exmark Manufacturing Co. v. Briggs & Stratton Power Products Group, LLC, 879 F.3d 1332 (Fed. Cir. 2018).

Opinion

Stoll, Circuit Judge.

Exmark Manufacturing Company filed suit against Briggs & Stratton Power Products Group, LLC in the United States District Court for the District of Nebraska, alleging infringement of, inter alia, claim 1 of U.S. Patent No. 5,987,863. The district court entered summary judgment that claim 1 was not invalid because the claim survived multiple reexaminations involving the same prior art. The district court also denied summary judgment of indefiniteness with respect to claim l. 1 The case proceeded to a jury trial, where the jury found that Briggs willfully infringed Exmark’s patent. The jury awarded $24,280,330 in compensatory damages, which the district court doubled as enhanced damages for Briggs’ willful infringement.

Briggs appeals several of the district court’s orders, including the district court’s: (1) summary judgment that claim 1 is not anticipated or obvious, (2) denial of summary judgment that claim 1 is indefinite, (3) denial of a new trial on damages, (4) evidentiary rulings related to damages, (5) denial of a new trial on willfulness, and (6) denial of Briggs’ laches defense.

We conclude the district court erred by basing its summary judgment of no invalidity solely on the fact that claim 1 survived multiple reexaminations. Accordingly, we vacate the district court’s summary judgment of no invalidity. We remand to the district court for it to make an independent determination of whether genuine issues of material fact preclude summary judgment that claim 1 is not anticipated or obvious in view of the prior art. We also hold that the district court erred in denying a new trial on damages because Ex-mark’s damages expert failed to provide an adequate explanation as to how she arrived at a 5% royalty rate for the patented feature relative to other conventional features of the accused products. We also conclude that the district court abused its discretion by limiting the evidence relevant to damages to prior art that had been commercialized. Likewise, we conclude that the district court abused its discretion by excluding from the willfulness trial evidence relating to patent validity based on its determination that Briggs’ invalidity defenses were objectively unreasonable. The district court’s evidentiary ruling does not comport with the Supreme Court’s recent decision in Halo Electronics, Inc. v. Pulse Electronics, Inc., — U.S. -, 136 S.O. 1923, 195 L.Ed.2d 278 (2016), mandating that willfulness is to be determined by the jury regardless of whether Briggs’ defenses were objectively reasonable. Accordingly, we vacate the jury’s finding of willfulness, ’ vacate the jury’s' damages award, vacate the district court’s enhanced damages award, and remand for proceedings consistent with this precedent. We also affirm the district court’s denial of summary judgment that claim 1 is indefinite, and affirm its denial of Briggs’ laches defense.

Background,

Briggs and Exmark are competitors in the high-end commercial lawn mower industry. Exmark filed suit- against Briggs and Schiller Grounds Care, Inc., 2 alleging/ inter alia, infringement of claim 1 of the ’863 patent. The ’863 patent is directed to a lawn mower having improved flow control baffles. A baffle is a metal structure under the mower deck that directs air flow and grass clippings during operation.

Claim 1 requires a side wall discharge opening and a “first flow control baffle” having a certain shape. Specifically, the claim recites that the first baffle comprises “a first arcuate baffle portion,” “a first elongated and substantially straight baffle portion,” and “a second arcuate baffle portion,’’-with the elongated and substantially straight baffle portion “angularly disposed ... in a chord-like fashion” with -respect to the second cutting blade. Id. at col. 6 ll. 21-39. The parties refer, to this as a “curved-straight-curved” baffle.

On appeal, Briggs provides an annotated version of Figure 4 of the ’863 patent depicting the claimed curved-straight-curved baffle.

[[Image here]]

Appellant Br. 13.

Claim 1 recites in relevant part:

1. A mnltiblade lawn mower, comprising:
said first side wall having, a discharge opening formed therein;
a first flow control baffle positioned in said mower deck which extends downwardly from the interior surface of said top wall between said cutting blades and said front wall;
said first flow control baffle extending substantially continuously from a first location adjacent the interior surface of said second side wall to a second location adjacent the interior surface of said first side wall and adjacent the forward end of said discharge opening;
said first flow control baffle comprising a first arcuate baffle portion, having first and second ends, which extends from the interior surface of said second side wall partially around said first cutting blade, a first elongated and substantially straight baffle portion, having first and second ends, extending from said second end of said first arcuate baffle portion, a second arcuate baffle portion, having first and second ends, which extends from said second end of said first elongated and substantially straight baffle portion partially around said second cutting blade;
said first elongated and substantially straight baffle portion being angularly disposed with respect to the said circle defined by the blade tip path of said second cutting blade in a chord-like fashion so that the cuttings from said first cutting blade will be deflected inwardly within the said circle defined by the blade tip path of said second cutting blade;.

’863 patent col. 51. 60-col. 61. 60.

Claim 1 of the ’863 patent was reexamined by the United States Patent and Trademark Office on three occasions. Ex-mark requested the first reexamination, which was completed prior to the present suit, and the PTO confirmed the patenta-bility of claim 1. The second and third reexaminations were requested by Defendants Schiller and Briggs during the pen-dency of this case before the district court. The district court stayed proceedings pending completion of the reexaminations. The patentability of claim 1 over the same prior art asserted in the district court was confirmed in both reexaminations.

Following the reexaminations, the district court lifted the stay, and Exmark moved for summary judgment that claim 1 was not invalid as anticipated or obvious. Relying' solely on the fact that claim 1 survived multiple reexaminations, the district court concluded that “no reasonable juroi* could find that the defendants have met their burden of proving by clear and convincing evidence that the claims of the patent are invalid.” Earmark Mfg. Co. v. Briggs & Stratton Power Prods. Grp., LLC, No. 8:10CV187, 2016 WL 12697086, at *11 (D. Neb. July 28, 2016) (“Summary Judgment Order"),

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Bluebook (online)
879 F.3d 1332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/exmark-manufacturing-co-v-briggs-stratton-power-products-group-llc-cafc-2018.