Igt v. Zynga Inc.

Court of Appeals for the Federal Circuit·Decided July 22, 2025·No. 23-2262·Published

Opinion

Case: 23-2262 Document: 50 Page: 1 Filed: 07/22/2025

United States Court of Appeals for the Federal Circuit ______________________

IGT, Appellant

v.

ZYNGA INC., Appellee ______________________

2023-2262 ______________________

Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2022- 00199. ______________________

Decided: July 22, 2025 ______________________

JENNIFER KURCZ, Baker & Hostetler LLP, Chicago, IL, argued for appellant. Also represented by MICHAEL DAVID GANNON, LEIF R. SIGMOND, JR.; CHARLES C. CARSON, ROBERT LOUIS HAILS, JR., Washington, DC; DANIEL J. GOETTLE, JEFFREY LESOVITZ, Philadelphia, PA.

ELIZABETH MOULTON, Orrick, Herrington & Sutcliffe LLP, San Francisco, CA, argued for appellee. Also repre- sented by CLEMENT ROBERTS; ELIZABETH BIXBY, ALYSSA MARGARET CARIDIS, Los Angeles, CA; JOSEPH RAYMOND KOLKER, New York, NY. ______________________ Case: 23-2262 Document: 50 Page: 2 Filed: 07/22/2025

Before PROST, REYNA, and TARANTO, Circuit Judges. TARANTO, Circuit Judge. IGT owns expired U.S. Patent No. 7,168,089, titled “Se- cured Virtual Network in a Gaming Environment,” which issued in January 2007 from an application filed in 2002. In 2003, after the IGT application was published, a prede- cessor of Zynga Inc. included claims copied from that appli- cation in its own patent application, and in 2010 the Board of Patent Appeals and Interferences of the Patent and Trademark Office (PTO)—the predecessor of the Patent Trial and Appeal Board (created by Congress in 2011)—de- clared an interference between Zynga’s application and IGT’s ’089 patent. (We use “Board” to refer to both boards and “Zynga” to refer to Zynga Inc. and its predecessor.) In the interference, Zynga moved for judgment that the in- volved claims of the ’089 patent were unpatentable for ob- viousness under 35 U.S.C. § 103. But the Board dismissed that motion as moot when it terminated the interference for a threshold reason—namely, that the claims Zynga had included in its application to trigger the interference were not supported by the written description of its application. A decade later, in 2021, Zynga petitioned the PTO to institute an inter partes review (IPR) of claims 28–29, 31– 33, 47–50, 84–86, 90–92, and 99–100 of IGT’s ’089 patent, alleging obviousness based on a combination of prior-art references that it had not relied on in its unpatentability motion in the interference. IGT, opposing institution, ar- gued that interference estoppel under 37 C.F.R. § 41.127(a)(1) barred Zynga from raising its obviousness challenge. The Board, acting as the delegatee of the PTO’s Director, declined to apply interference estoppel and insti- tuted the requested review; and the Director, reviewing that determination, likewise rejected application of inter- ference estoppel. The Board then proceeded with the re- view and ultimately concluded that all the challenged claims were unpatentable under § 103. Case: 23-2262 Document: 50 Page: 3 Filed: 07/22/2025

IGT v. ZYNGA INC. 3

IGT appeals, challenging the PTO’s decision not to ap- ply interference estoppel, see § 41.127(a)(1), and the Board’s conclusion of obviousness. Zynga responds that the decision not to apply interference estoppel was an unre- viewable decision to institute review, see 35 U.S.C. § 314(d), and in any event was correct; and Zynga also de- fends the Board’s obviousness ruling on the merits. Re- garding the decision not to apply interference estoppel, we conclude that the decision is within the general rule of un- reviewability, and, to the extent the Supreme Court’s deci- sion in Cuozzo Speed Technologies, LLC v. Lee might allow inquiry into whether the Board engaged in “shenanigans” not in accordance with law, 579 U.S. 261, 275 (2016), there were no shenanigans here—indeed, the PTO had sound reasons for declining to apply interference estoppel. Re- garding the final written decision of unpatentability, we re- ject IGT’s procedural and substantive challenges on appeal. Accordingly, we affirm. I A The ’089 patent addresses the need in “game playing services for gaming machines such as slot machines and video poker machines” to “securely communicate with de- vices over a public network such as the Internet.” ’089 pa- tent, col. 1, lines 16–18; id., col. 4, lines 28–30. The patent describes methods for authorizing the “transfer [of] gaming software and gaming information” between gaming de- vices, which may be gaming machines, game servers, and combinations thereof. Id., col. 4, lines 34–37; id., col. 5, lines 5–6. Specifically, it describes a software authoriza- tion agent—which “may be a conventional data server in- cluding . . . a database, a router, a network interface, a CPU, a memory and a firewall”—for authorizing and mon- itoring the transfer of gaming software. Id., col. 24, lines 32–42 (reference numbers from figure omitted); id., col. 4, lines 38–40; see also, e.g., id., col. 25, lines 1–5. Case: 23-2262 Document: 50 Page: 4 Filed: 07/22/2025

Figure 9 shows such a method:

In that example, a gaming software distribution network includes several types of gaming devices, including gaming machines 54 and 55, a gaming software content provider 51 (e.g., a game server that may be “maintained by a gam- ing software developer” and store gaming software and gaming software components), and a gaming software dis- tributor 53 (e.g., a game server that may be “maintained by a gaming entity such as a casino” and store “gaming soft- ware that has been licensed to the gaming entity” from the gaming software content providers). Id., col. 28, lines 27– 36; id., col. 25, lines 23–34; id., col. 26, lines 27–39. The gaming software distributor 53 “may contact the software authorization agent 50 to request a transfer of gaming soft- ware from the gaming software [content] provider 51 to the gaming [software] distributor 53. . . . [or] to another gam- ing device such as a gaming machine [54 or 55].” Id., col. 28, lines 40–47. “The software authorization agent 50 may approve or deny the request” for the “transfer of gam- ing software.” Id., col. 28, lines 45–49. If the request is approved, then “[a]fter receiving authorization from the software [authorization] agent [50], the gaming software distributor 53 may contact the gaming software content Case: 23-2262 Document: 50 Page: 5 Filed: 07/22/2025

IGT v. ZYNGA INC. 5

provider 51,” which will send the gaming software over the network. Id., col. 28, lines 61–67; see also id., col. 29, lines 10–11 (“[G]aming software transfers [between two gaming devices] may be routed through the software authorization agent 50.”); id., col. 29, lines 63–66 (“[G]aming software dis- tributor 5[3] may forward the gaming software to the gam- ing machine 55 after receiving it from the gaming software content provider 51.”). Claim 28, on which claims 29, 31–33, 47–50 depend, is representative for present purposes and recites (after a cer- tificate of correction): 28.

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