In Re: Affinity Labs of Texas, LLC

856 F.3d 883, 122 U.S.P.Q. 2d (BNA) 1497, 2017 WL 1749679, 2017 U.S. App. LEXIS 7983
Court of Appeals for the Federal Circuit·Decided May 5, 2017·No. 2016-1092, 2016-1172·Published·Cited by 13 cases

Opinion

CHEN, Circuit Judge.

This appeal arises from two inter partes reexaminations and an ex parte reexamination of U.S. Patent No. 7,324,833 (the ’833 patent), owned by Affinity Labs of Texas, LLC (Affinity). Richard King requested ex parte reexamination of all original claims of the ’833 patent, based on multiple asserted grounds of unpatentability. Volkswagen Group of America, Inc. (Volkswagen) requested inter partes reexamination of all claims based on additional, different asserted grounds of unpatentability. And Apple Inc. (Apple) requested inter partes reexamination of all claims based on still different asserted grounds of unpatentability. The United States Patent and Trademark Office (PTO) granted all three requests and sua sponte merged these three reexaminations into a single proceeding.

Volkswagen subsequently received an adverse final judgment in a parallel district court proceeding, upholding the validity of claims 28 and 35 of Affinity’s ’833 patent. In response, Affinity petitioned the PTO to vacate the entire merged reexamination proceeding, arguing that the estop-pel provision in pre-America Invents Act (AIA) 35 U.S.C. § 317(b) 1 extends to all parties, not just Volkswagen, and all claims challenged in the three reexaminations, not just litigated claims 28 and 35. The PTO denied Affinity’s termination request, but it severed the Volkswagen reexamination from the merged proceeding and held that no rejection could be maintained in that reexamination as to the claims at issue in the district court action. The Examiner then evaluated the Volkswagen reexamination separately from the merged King/Apple reexamination and ultimately issued a Right of Appeal Notice in each proceeding, rejecting numerous claims of the ’833 patent as unpatentable. The Patent Trial and Appeal Board (Board) affirmed the Examiner’s rejections. See Apple Inc. v. Affinity Labs of Tex., LLC, No. 2015-004281, Reexamination Nos. 95/001,264 and 90/010333, 2015 WL 4038964, at *1 (P.T.A.B. June 30, 2015) (-4281 Board Decision); Apple Inc. v. Affinity Labs of Tex., LLC, No. 2015-006122, Reexamination No. 95/001223, 2015 WL 5092841, at *1 (P.T.A.B. Aug. 26, 2015) (-6122 Board Decision). Affinity appealed to this court and the Director of the United States Patent and Trademark Office (Director) intervened. We have jurisdiction under 28 U.S.C. § 1295(a)(4)(A).

Affinity first argues that the PTO erred in maintaining the reexaminations in light of the final decision that Volkswagen failed to prove invalidity of two of the patent’s claims, which were asserted in the co-pending litigation and, therefore, the Board’s decisions in the reexaminations *887 should be reversed pursuant to the section 317(b) estoppel provision. Affinity also asserts that, assuming the reexaminations were properly maintained, the Board’s decisions are based on misreadings of the asserted prior art and a misevaluation of Affinity’s objective indicia evidence of non-obviousness. Because the plain language of pre-AIA section 317(b) precludes Affinity’s estoppel argument and because we see no error in the -4281 Board Decision upholding the Examiner’s findings of unpatenta-bility as to all claims at issue, we affirm. We, therefore, dismiss as moot Affinity’s appeal of the -6122 Board Decision upholding the unpatentability of a subset of claims affirmed as unpatentable in the - 4281 Board Decision.

Background

I. The ’833 Patent

The ’833 patent relates to a system and method for connecting a portable media player, such as an MP3 player, to a different electronic device, such as a car audio system. ’833 patent col. 3,1. 35-col. 4,1. 34. When the portable media player is connected to the different electronic device, the system provides the user with a graphical user interface on the display of that different electronic device. Id. col. 11, 11. 28-44. The user can then select and play music stored on the portable media player by pressing soft buttons displayed in the graphical user interface of the different electronic device. The ’833 patent’s claims are directed to systems and methods of displaying on the different electronic device a menu of titles associated with media files stored on the portable media player. Claim 1 is representative:

1. An audio system, comprising:
a portable electronic device having a display, a memory, and an audio file player;
a first portion of software saved at the portable electronic device and configured to initiate a displaying of a graphical interface item on the display, the graphical interface item comprising a name associated with an audio file saved in the memory;
a mounting location on the portable electronic device that includes a physical interface configured to communica-tively couple the portable electronic device to a different electronic device having an associated display; and
an other portion of software saved at the portable electronic device and configured to communicate a representation of the graphical interface item to the different electronic device via the physical interface to facilitate a displaying of the representation on the associated display, wherein the portable electronic device is configured to communicate interface information to the different electronic device in order to allow a user to view at least a partial representation of a graphical user interface that includes the graphical interface item on the associated display, wherein the graphical user interface comprises a plurality of pre-programmed soft buttons that are linked to respective audio information sources.

Id. col. 18,11. 36-61.

II. Merger and Severance of the Reexaminations

Richard King filed a request for ex parte reexamination of all claims of the ’833 patent on November 7, 2008. Volkswagen filed a request for inter partes reexamination of all claims of the ’833 patent on September 22, 2009, soon after Affinity sued Volkswagen for infringement of the ’833 patent, among other patents, in district court. Apple also filed a request for inter partes *888 reexamination of all claims of the ’833 patent on November 13, 2009, after Affinity brought suit against Apple on a series of patents, including the ’833 patent. The PTO granted all three reexamination requests, and on June 14, 2010, the PTO sua sponte merged the three reexaminations into one proceeding. In addition to traversing the asserted grounds of rejection, Affinity also sought to add new claims 36-49.

During the merged reexamination proceeding, Apple and Affinity reached a settlement, Apple took a license to the ’833 patent, and the parties filed a joint stipulation of dismissal in the co-pending district court case.

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In Re: Affinity Labs of Texas, LLC, 856 F.3d 883, 122 U.S.P.Q. 2d (BNA) 1497, 2017 WL 1749679, 2017 U.S. App. LEXIS 7983 (Fed. Cir. 2017).

856 F.3d 883 (In Re: Affinity Labs of Texas, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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