Hilgraeve Corporation v. Symantec Corporation, Defendant-Cross

265 F.3d 1336, 2001 WL 1079045
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 20, 2001
Docket00-1373, 00-1374
StatusPublished
Cited by68 cases

This text of 265 F.3d 1336 (Hilgraeve Corporation v. Symantec Corporation, Defendant-Cross) 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
Hilgraeve Corporation v. Symantec Corporation, Defendant-Cross, 265 F.3d 1336, 2001 WL 1079045 (Fed. Cir. 2001).

Opinion

DYK, Circuit Judge.

Hilgraeve Corp. (“Hilgraeve”) appeals from the decision of the United States District Court for the Eastern District of Michigan granting the motion of Symantec Corp. (“Symantec”) for summary judgment of non-infringement for U.S. Patent No. 5,319,776 (“'776 patent”). Hilgraeve Corp. v. Symantec Corp., 90 F.Supp.2d 850 (E.D.Mich.2000). Symantec cross-appeals the district court’s grant of summary judgment for Hilgraeve that Symantec is not licensed to use the invention claimed in the '776 patent. Hilgraeve Corp. v. Symantec Corp., Civ. Action No. 97-40370 (E.D.Mich. Jun. 28, 1999) (“License Defense Order”).

We vacate the district court’s grant of summary judgment of non-infringement of the '776 patent and generally affirm the district court’s grant of summary judgment that Symantec did not license the '776 patent. We find that questions of material fact exist as to whether the limitations of the '776 patent claims are found in the methods performed by the accused products, and that Hilgraeve did not transfer any rights to practice the '776 patent.

BACKGROUND

Hilgraeve filed suit against Symantec in the Eastern District of Michigan for infringement of the '776 patent on September 15, 1997. On the same day, Hilgraeve filed a separate suit against McAfee Asso *1339 ciates, Inc. for infringement of the '776 patent, also in the Eastern District of Michigan. The cases were not consolidated. In the McAfee case, the district court’s grant of summary judgment of non-infringement, Hilgraeve Corp. v. McAfee Associates, Inc., 70 F.Supp.2d 738 (E.D.Mich.1999) (“McAfee I”), was vacated and remanded by this court because, under the agreed claim construction, questions of material fact existed about the operation of the accused device, 224 F.3d 1349, 55 USPQ2d 1656 (Fed. Cir.2000) (“McAfee II”).

The '776 patent relates to computer virus detection software. The software scans a digital data file for viruses as the file is transferred to a storage medium. If the software detects a virus prior to storing the file, it automatically blocks storage of the file. The software may be used, for example, to scan a file for viruses as the file is transferred from a floppy disk to a hard disk of a computer system, or as the file is transferred over the Internet from one computer system to a storage medium of another computer system.

The '776 patent contains 20 claims. Independent claims 1 and 18, which are at issue on this appeal, read as follows:

1. In a system for transferring digital data for storage in a computer storage medium, a method of screening the data as it is being transferred and automatically inhibiting the storage of screened data containing at least one predefined sequence, comprising the steps of:
causing a quantity of digital data resident on a source storage medium to be transferred to a computer system having a destination storage medium; receiving and screening the transferred digital data prior to storage on the destination storage medium to determine if at least one of a plurality of predefined sequences are present in the digital data received; and
in response to said screening step:
(a) automatically causing the screened digital data to be stored on said destination storage medium if none of the plurality of predefined sequences are present, and
(b) automatically inhibiting the screened digital data from being stored on said destination storage medium if at least one predefined sequence is present.
18. A method of preventing the spread of computer viruses to a computer having a storage medium, comprising the steps of:
simultaneously searching for a plurality of virus signatures, each of which comprising an identifiable digital sequence, while said computer is receiving a stream of digital data for storage on said storage medium; providing an indication of the detection of a virus from said searching step; and
automatically inhibiting the storage of said digital stream on said storage medium if any of said virus signatures have been detected.

’776 patent, col. 17, 11. 9-29 and col. 18, 11. 45-57 (emphases added to pertinent terms).

Because these claims require the inhibition of “storage,” the district court was required to construe the meaning of the word “storage” in the patent. The district court construed “storage” as occurring “when the incoming digital data is sufficiently present on the destination storage medium so that any viruses contained in the data can spread and infect the computer system.” Hilgraeve, 90 F.Supp.2d at 857.

Hilgraeve contended that several Sym-antec products, including pcANYWHERE and Norton Antivirus (“NAV”), infringe *1340 the '776 patent under this claim construction. In other words, Hilgraeve alleged that the accused products screen incoming digital data for viruses during transfer and before “storage” on the destination storage medium. In contrast, Symantec contended that its products do not infringe because they screen for viruses only after the data have been “stored” on the destination storage medium. Thus, the critical issue was whether the accused products screen for viruses before or after the data become sufficiently present on the storage medium so that viruses contained in the data could spread and infect the computer system.

To resolve this issue on summary judgment the district court relied on testimony of Symantec’s expert witness about how the accused products operate and on statements made by Hilgraeve and its expert that it agreed with the overview offered by Symantec’s expert about how the accused products operate. Hilgraeve, 90 F.Supp.2d at 858-59. Upon accepting Symantec’s view of how the products operate, the district court found that the accused products “first allow the incoming digital data to be stored as a whole on the destination storage medium before it is scanned. Virus screening is performed only after the incoming digital data has been fully transferred and stored.” Id. at 859. The district court held that “[b]e-cause there is no dispute about how the accused products operate, there is no genuine issue as to any material fact concerning whether Defendant’s accused products literally infringe the '776 Patent” and granted summary judgment for Symantec. Id.

Before the district court, Symantec also asserted the affirmative defense to Hil-graeve’s infringement claim that it had acquired a license to use the patent under a complex series of transactions involving Delrina Corp. and its subsidiaries. On June 30, 1993, Delrina Corp., Delrina (Delaware) (a subsidiary of Delrina Corp.), and Hilgraeve executed a Technology Transfer Agreement under which Delrina Corp.

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Bluebook (online)
265 F.3d 1336, 2001 WL 1079045, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hilgraeve-corporation-v-symantec-corporation-defendant-cross-cafc-2001.