Iqasr LLC v. Wendt Corp.

CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 15, 2020
Docket19-2227
StatusUnpublished

This text of Iqasr LLC v. Wendt Corp. (Iqasr LLC v. Wendt Corp.) 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
Iqasr LLC v. Wendt Corp., (Fed. Cir. 2020).

Opinion

Case: 19-2227 Document: 40 Page: 1 Filed: 09/15/2020

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

IQASR LLC, Plaintiff-Appellant

v.

WENDT CORP., Defendant-Appellee ______________________

2019-2227 ______________________

Appeal from the United States District Court for the District of Colorado in No. 1:16-cv-01782-MSK-KMT, Sen- ior Judge Marcia S. Krieger. ______________________

Decided: September 15, 2020 ______________________

RUDOLPH A. TELSCHER, JR., Husch Blackwell LLP, St. Louis, MO, for plaintiff-appellant. Also represented by KARA RENEE FUSSNER.

ROBERT R. BRUNELLI, Sheridan Ross P.C., Denver, CO, for defendant-appellee. Also represented by KENDRIA ELIZABETH PEARSON. ______________________

Before DYK, CLEVENGER, and HUGHES, Circuit Judges. Case: 19-2227 Document: 40 Page: 2 Filed: 09/15/2020

HUGHES, Circuit Judge. This case concerns the validity of a patent for an auto- mobile scrap recycling process. IQASR LLC appeals the district court’s decision holding U.S. Patent No. 9,132,432 invalid for indefiniteness. IQASR argues that the district court erred in its application of the legal standard for in- definiteness and in its findings on both the intrinsic and extrinsic evidence. Because the district court did not err in its legal analysis or its factfinding, we affirm. I The ’432 patent teaches various methods to sort recy- clable materials from non-recyclable materials in “automo- bile shredder residue.” This term refers to the residue produced by shredding “end-of-life” vehicles, i.e., “scrapped” or “junked” automobiles, for disposal and recy- cling. The ’432 patent’s claimed methods aim to enhance the separation of non-recyclable materials like “trash and magnetic fuzz” from recyclable materials like “plastics and metals,” allowing recovery of more recyclable materials. See, e.g., ’432 patent at 1:48–50, 2:1–15. The claim terms whose definiteness is disputed in this appeal, “magnetic fuzz,” and “low susceptance microparti- cles” are found in independent claim 1 and dependent claim 13, reproduced below with the relevant terms itali- cized. 1. A method of separation of automobile shred- der residue comprising the steps of: providing automobile shredder residue as a result from a ferrous sorting recovery system; introducing said automobile shredder residue into an auto mobile shredder residue sorting, non-ferrous recovery system; non-magnetically sorting magnetic fuzz from said automobile shredder residue with said Case: 19-2227 Document: 40 Page: 3 Filed: 09/15/2020

IQASR LLC v. WENDT CORP. 3

automobile shredder residue sorting, non- ferrous recovery system; wherein said sorted magnetic fuzz is substantially free of recyclable materials. 13. A method of separation of automobile shredder residue according to claim 1 wherein said step of non-magnetically sorting magnetic fuzz from said automobile shredder residue with said automobile shredder residue sorting, non-ferrous recovery system comprises the step of non-mag- netically sorting separating [sic] low susceptance microparticles from said automobile shredder resi- due with said automobile shredder residue sorting, non-ferrous recovery system. ’432 patent at 23:7–18, 24:16–23. II IQASR sued Wendt Corp. for infringement of the ’432 patent. See IQASR LLC v. Wendt Corp., No. 16-CV-01782- MSK-KMT, 2019 WL 1075477 (D. Colo. Mar. 7, 2019) (De- cision). After a Markman hearing, the district court held the ’432 patent invalid under 35 U.S.C. § 112. See id. The parties disputed six claim terms. Id. at *2–3. In constru- ing these terms, the court found “magnetic fuzz” indefinite, rendering independent claim 1 (and thus the remaining claims, all dependent from claim 1) indefinite. Id. at *6–8. It also found “low susceptance microparticles” in dependent claim 13 indefinite. Id. at *9. IQASR appeals the district court’s final judgment in- validating all claims of the ’432 patent based on these two terms’ indefiniteness. IQASR having timely appealed, we have jurisdiction under 28 U.S.C. § 1295(a)(1). “[W]e review a district court’s determination that a claim is invalid as indefinite . . . de novo, although, as with claim construction, any factual findings by the district Case: 19-2227 Document: 40 Page: 4 Filed: 09/15/2020

court based on extrinsic evidence are reviewed for clear er- ror.” Sonix Tech. Co. v. Publications Int’l, Ltd., 844 F.3d 1370, 1376 (Fed. Cir. 2017). “To trigger clear er- ror review, ‘it is not enough that the district court may have heard extrinsic evidence during a claim construction pro- ceeding—rather, the district court must have actually made a factual finding.’” Id. (quoting CardSoft, LLC v. Ver- iFone, Inc., 807 F.3d 1346, 1350 (Fed. Cir. 2015)). “Moreo- ver, ‘[a] party cannot transform into a factual matter the internal coherence and context assessment of the patent simply by having an expert offer an opinion on it. The in- ternal coherence and context assessment of the patent, and whether it conveys claim meaning with reasonable cer- tainty, are questions of law.’” Id. (quoting Teva Pharm. USA, Inc. v. Sandoz, Inc., 789 F.3d 1335, 1342 (Fed. Cir. 2015)). III IQASR asserts that the district court erred on three fronts. First, IQASR argues that the district court commit- ted multiple legal errors in applying the law of indefinite- ness. These assertions of legal error leak into IQASR’s second and third arguments: that the district court erred in its findings of fact from both the extrinsic evidence prof- fered and the intrinsic record. We reject each of these ar- guments because the district court appropriately analyzed the definiteness of the ’432 patent and did not reversibly err in its factfinding. As a result, we affirm the district court’s conclusion that, as used in the ’432 patent, “mag- netic fuzz” is indefinite. 1

1 Since we affirm the indefiniteness of “magnetic fuzz,” used in independent claim 1, we need not decide the definiteness of “low susceptance microparticles.” The lat- ter term appears only in claim 13, which depends from Case: 19-2227 Document: 40 Page: 5 Filed: 09/15/2020

IQASR LLC v. WENDT CORP. 5

We address IQASR’s assertions of error regarding the extrinsic evidence and then its assertions regarding the in- trinsic evidence, interspersing its assertions of legal error where relevant to the district court’s analysis of its findings of fact. A “In the face of an allegation of indefiniteness, general principles of claim construction apply.” Biosig Instru- ments, Inc. v. Nautilus, Inc., 783 F.3d 1374, 1377–78 (Fed. Cir. 2015) (quoting Enzo Biochem, Inc. v. Applera Corp., 599 F.3d 1325, 1332 (Fed. Cir. 2010)). “The inquiry into how a person of ordinary skill in the art understands a claim term provides an objective baseline from which to begin claim interpretation.” Phillips v. AWH Corp., 415 F.3d 1303, 1313 (Fed. Cir. 2005). “[T]he ordinary and cus- tomary meaning of a claim term is the meaning that the term would have to a person of ordinary skill in the art in question at the time of the invention, i.e., as of the effective filing date of the patent application.” Id.

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