Fonar Corp. v. General Electric Co.

107 F.3d 1543, 41 U.S.P.Q. 2d (BNA) 1801, 1997 U.S. App. LEXIS 3402
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 25, 1997
DocketNos. 96-1075, 96-1106 and 96-1091
StatusPublished
Cited by23 cases

This text of 107 F.3d 1543 (Fonar Corp. v. General Electric Co.) 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
Fonar Corp. v. General Electric Co., 107 F.3d 1543, 41 U.S.P.Q. 2d (BNA) 1801, 1997 U.S. App. LEXIS 3402 (Fed. Cir. 1997).

Opinion

LOURIE, Circuit Judge.

General Electric Company, and Drucker & Genuth, MDS, P.C., d/b/a South Shore Imaging Associates (collectively “GE”) appeal from the judgment of the United States District Court for the Eastern District of New York denying their motion for judgment as a matter of law (“JMOL”) and sustaining a jury’s verdict that (1) U.S. Patent 4,871,966 was not invalid and (2) GE infringed the ’966 patent and was hable for lost profits and reasonable royalty damages. Fonar Corp. v. General Elec. Co., 902 F.Supp. 330 (E.D.N.Y.1995). Fonar Corporation and Dr. Raymond Y. Damadian (collectively “Fonar”) cross-appeal from the district court’s judgment granting a motion for JMOL that GE did not induce infringement of the ’966 patent and did not infringe U.S. Patent 3,789,832. Id. Because the district court erred in its JMOL that GE did not infringe the ’832 patent, but did not otherwise err, we affirm-in-part and reverse-in-part.

BACKGROUND

The ’966 patent concerns a technique for using a magnetic resonance imaging (“MRI”) machine in order to obtain multiple image slices of a patient’s body at different angles in a single scan, referred to as multi-angle oblique (“MAO”) imaging. Prior art machines were able to obtain multiple parallel images along the same axis in a single scan, but they required multiple scans in order to obtain multiple images at varying angles. MAO resulted in shortened imaging times and hence allowed for the imaging of more patients per day. Claim 1 of the ’966 patent recites this feature and reads in part:

1. A method for obtaining in the course of a single scan NMR [nuclear magnetic resonance] image data for a plurality of differently oriented selected planes in an object using nuclear magnetic resonance techniques, said method comprising the steps of:
(a) positioning an object in a static homogeneous magnetic field;
(b) determining first and second selected planes in said object for which NMR image data is to be obtained ...
(c) subjecting said object' to' a plurality of repetitions of a first repetition sequence composed of NMR excitation and magnetic gradient field pulses, each of said repetitions of said first repetition sequence including the steps of applying an excitation pulse and reading out of an NMR signal produced by said excitation pulse ... said plurality of repetitions of said first repetition sequence being carried out in a manner to encode spatial information into a first collection of said NMR signals, said first collection of NMR signals being representative of NMR image data for said first selected plane; and
(d) subjecting said object to a plurality of repetitions of a second repetition sequence composed of NMR excitation and magnetic field gradient pulses, each of said repetitions of said second repetition sequence including the steps of applying an excitation pulse and reading out of an NMR signal produced, by said excitation pulse ... said plurality of repetitions of said second repetition sequence being carried out in a manner to encode spatial information into a second collection of NMR signals, said second collection of NMR signals being representative of NMR image data for said second selected plane;
[-37]*-37said plurality of repetitions of said first and second repetition sequences each being carried out during the course of a single scan of said object and each being continued substantially throughout said single scan, the repetition time interval for repeating each of said first and second repetition sequences being substantially the same and said steps of applying an excitation pulse and reading out of an NMR signal for each repetition of said second repetition sequence being performed at a different time during said repetition time interval than each of said steps of applying an excitation pulse and reading out of an NMR signal for said first repetition sequence.

The ’832 patent concerns a technique for using NMR imaging to detect cancer. MRI machines rely upon the principles of NMR to produce cross-sectional images of body tissue. The inventor, Dr. Damadian, recognized that two common NMR measurements, TI and T2, were often different in cancerous tissue compared with normal tissue. Thus, the ’832 patent claims a method for detecting cancer by measuring values of TI and T2 in suspect tissue and comparing them to standard TI and T2 values for normal and cancerous tissue of the same type. Claim 1 of the ’832 patent recites this feature and reads:

1. A method for detecting cancer comprising:
a. measuring and establishing standard NMR spin-lattice relaxation times and spin-spin relaxation times for both normal and cancerous tissue of the type under analysis using as an indictor nuclei at least one nuclei which exhibits deviant behavior in cancerous tissue;
b. measuring the NMR spin-lattice relaxation times and spin-spin relaxation times for the suspected tissue to determine the extent of deviant behavior of the indicator nuclei; and
c. comparing the values obtained in (b) against the standards obtained in (a).

Fonar sued GE for infringement of the two patents, asserting infringement of claims 1,2, 4, 5, and 12 of the ’966 patent and claims 1 and 2 of the ’832 patent. A jury returned a verdict finding that the asserted claims were not invalid and were infringed. As compensation for infringement of the ’966 patent, the jury awarded Fonar $27,825,000 as lost profits on 75 of the 600 MRI machines sold by GE and $34,125,000 as a reasonable royalty on sales of the remaining 525 machines. The jury awarded Fonar $13,625,000 as damages for GE’s inducement to infringe the patent. It also awarded $35,000,000 in reasonable royalty damages for GE’s infringement of the ’832 patent.

The court granted two of GE’s renewed motions for JMOL, ruling that GE did not induce infringement of the ’966 patent and that it did not infringe the ’832 patent. Specifically, the court concluded that GE could not have induced infringement because it had no notice of the patent. With respect to infringement of the ’832 patent, the court found that Fonar failed to establish the existence of standard TI and T2 values, which are limitations of the asserted claims, and it thus concluded that GE did not infringe that patent.

The court denied GE’s motions for JMOL relating to its assertion of a violation of the best mode requirement and to damages for direct infringement of the ’966 patent. The court concluded that the testimony of Fo-nar’s witnesses provided substantial evidence to support the jury’s finding that the patent satisfied the best mode requirement, and the court found that substantial evidence supported the jury’s damages findings. The court summarily denied GE’s motions for JMOL relating to the other issues now on appeal. The court awarded Fonar prejudgment interest and entered a final award against GE in the amount of $68,421,726.

GE now appeals to this court, arguing that the district court erred in its judgment concerning validity and infringement of the ’966 patent and in determining damages for infringement of that patent. Fonar cross-appeals, challenging the district court’s judgment concerning inducement to infringe [-36]*-36the ’966 patent and infringement of the ’832 patent.

DISCUSSION

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107 F.3d 1543, 41 U.S.P.Q. 2d (BNA) 1801, 1997 U.S. App. LEXIS 3402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fonar-corp-v-general-electric-co-cafc-1997.