Ironburg Inventions Ltd. v. Valve Corporation

CourtCourt of Appeals for the Federal Circuit
DecidedJune 18, 2026
Docket24-2088
StatusPublished

This text of Ironburg Inventions Ltd. v. Valve Corporation (Ironburg Inventions Ltd. v. Valve Corporation) 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
Ironburg Inventions Ltd. v. Valve Corporation, (Fed. Cir. 2026).

Opinion

Case: 24-2088 Document: 53 Page: 1 Filed: 06/18/2026

United States Court of Appeals for the Federal Circuit ______________________

IRONBURG INVENTIONS LTD., Plaintiff-Appellee

v.

VALVE CORPORATION, Defendant-Appellant ______________________

2024-2088 ______________________

Appeal from the United States District Court for the Western District of Washington in No. 2:17-cv-01182-TSZ, Senior Judge Thomas S. Zilly. ______________________

Decided: June 18, 2026 ______________________

GREGORY S. TAMKIN, Dorsey & Whitney LLP, Denver, CO, argued for plaintiff-appellee. Also represented by ERIN KOLTER, Seattle, WA.

PATRICK A. LUJIN, Shook, Hardy & Bacon, LLP, Kansas City, MO, argued for defendant-appellant. Also repre- sented by MARY PEAL, BASIL TRENT WEBB; TANYA L. CHANEY, Houston, TX. ______________________

Before CHEN, HUGHES, and STARK, Circuit Judges. Case: 24-2088 Document: 53 Page: 2 Filed: 06/18/2026

Opinion for the Court filed by Circuit Judge HUGHES. Concurring opinion filed by Circuit Judge STARK. HUGHES, Circuit Judge. Valve Corporation appeals from a supplemental partial judgment of the United States District Court for the West- ern District of Washington. The district court ruled that Valve was estopped under 35 U.S.C. § 315(e)(2) from as- serting two invalidity grounds, which had not been in- cluded in a 2016 petition for inter partes review, against several claims of U.S. Patent No. 8,641,525. Because we conclude that the district court relied on insufficient evi- dence to estop one ground, and because the district court failed to adequately account for hindsight bias in estopping the other ground, we reverse and remand for further pro- ceedings not inconsistent with this opinion. I A Ironburg Inventions, Ltd. (Ironburg) owns U.S. Patent No. 8,641,525, which is directed to a video game controller with “one or more additional controls located on the back of the controller in a position to be operated by the user’s other fingers” while the thumb and forefinger rest on the top and front of the controller. ’525 Patent, 1:49–58. In one embodiment, these back controls are described as “inher- ently resilient” and “elongate in shape.” Id. 3:33, 3:51. An embodiment of the claimed controller is shown below:

Id. figs. 1, 2. Case: 24-2088 Document: 53 Page: 3 Filed: 06/18/2026

IRONBURG INVENTIONS LTD. v. VALVE CORPORATION 3

Claim 2 is illustrative for the purposes of this appeal. Claim 2, along with cancelled claim 1 from which it de- pends, is reproduced below: 1. (cancelled) A hand held controller for a game console comprising: an outer case comprising a front, a back, a top edge, and a bottom edge, wherein the back of the controller is opposite the front of the controller and the top edge is opposite the bottom edge; and a front control located on the front of the controller; wherein the controller is shaped to be held in the hand of a user such that the user’s thumb is positioned to operate the front control; and a first back control and a second back con- trol, each back control being located on the back of the controller and each back control including an elongate member that extends substantially the full dis- tance between the top edge and the bot- tom edge and is inherently resilient and flexible. 2. The controller of claim 1, further having a top edge control located on the top edge of the control- ler and wherein the controller is shaped such that the user’s index finger is positioned to operate the top edge control. Id. 4:41–59. Ironburg sued Valve Corporation (Valve) in 2015, al- leging that Valve’s Steam® Controller infringed claims 2, 4, 7, 9–11, and 18 of the ’525 patent. Prior to trial, in April 2016, Valve filed an IPR petition challenging the Case: 24-2088 Document: 53 Page: 4 Filed: 06/18/2026

’525 patent, which the Patent Trial and Appeal Board par- tially instituted prior to the Supreme Court’s decision in SAS Institute Inc. v. Iancu, 584 U.S. 357 (2018). This IPR, Number IPR2016-00948 (’948 IPR), culminated in a final written decision in September 2017. During the pendency of the ’948 IPR, Valve filed a sec- ond IPR petition challenging the ’525 patent based on a prior art reference that Valve contended was newly discov- ered, Wörn. 1 After the Board issued its final written deci- sion in the ’948 IPR, Ironburg moved to terminate this second IPR, Number IPR2017-00136 (’136 IPR), based on estoppel under 35 U.S.C. § 315(e)(1). In January 2018, the Board granted Ironburg’s motion to terminate, finding that Ironburg had proven that “a skilled searcher conducting a diligent search reasonably could have been expected to dis- cover Wörn.” J.A. 3845. Reviewing the evidence, the Board specifically found that manual searches of the prior art us- ing patent classifications and subclassifications, 2 as well as using keywords to further narrow the search results to a

1 U.S. Patent No. 6,362,813. 2 The United States Patent and Trademark Office classifies patents into categories based on the subject mat- ter claimed. “There are multiple classification systems used throughout the international patent system,” includ- ing “the Cooperative Patent Classification System (CPC), U.S. Patent Classification System (USPC), [and] the Inter- national Patent Classification System (IPC).” MPEP § 902 (9th ed. Rev. 01.2024). Within each classification system, categories—known as classes and subclasses—group closely related inventions together under alphanumeric headings and have descriptive titles that are suggestive of their common subject matter. See MPEP § 902.01. These classes and subclasses thus serve as an indexing tool often used early in a patent search. Case: 24-2088 Document: 53 Page: 5 Filed: 06/18/2026

IRONBURG INVENTIONS LTD. v. VALVE CORPORATION 5

prior art set small enough to manually review, would have located Wörn. A third party, Collective Minds Gaming Co. Ltd. (CMG), also filed an IPR petition challenging the ’525 pa- tent in January 2018. CMG’s petition raised two new grounds of obviousness, based on four references (the CMG Grounds). One invalidity ground was based on U.S. Pub- lished Patent Application No. 2010/0298053 (Kotkin). The other invalidity ground consisted of the combination of U.S. Patent No. 6,760,013 (Willner); Japanese Patent Applica- tion No. JP-A H10-020951 (Koji); and U.S. Patent No. 5,773,769 (Raymond) (collectively, Willner-Koji-Ray- mond). The Board instituted CMG’s IPR on all grounds, but the IPR was eventually terminated due to a settlement be- tween CMG and Ironburg. After the filing of CMG’s IPR, Valve amended its inva- lidity contentions in the pending district court litigation to raise the CMG Grounds. In September 2018, Ironburg filed a motion for IPR estoppel under § 315(e)(2), arguing that Valve should be estopped from asserting the CMG Grounds. In November 2019, the district court granted Ironburg’s motion, estopping Valve from asserting either Kotkin or Willner-Koji-Raymond at trial. The district court found that, since Willner was cited on the face of the ’525 patent and because CMG was able to locate Kotkin, Koji, and Raymond for its own IPR petition, “a skilled searcher could have been reasonably expected to find all of these references.” J.A. 4461–63. The district court action then proceeded to trial on infringement, and in Febru- ary 2021, the jury returned a complete verdict for Ironburg, finding willful infringement of claims 2, 4, 7, 9–11, and 18, and awarding $4,029,533.93 in damages. An initial appeal to this court followed. See Ironburg Inventions Ltd. v.

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