Junker v. Eddings

396 F.3d 1359, 73 U.S.P.Q. 2d (BNA) 1850, 2005 U.S. App. LEXIS 1956, 2005 WL 287478
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 8, 2005
Docket2004-1208
StatusPublished
Cited by11 cases

This text of 396 F.3d 1359 (Junker v. Eddings) 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
Junker v. Eddings, 396 F.3d 1359, 73 U.S.P.Q. 2d (BNA) 1850, 2005 U.S. App. LEXIS 1956, 2005 WL 287478 (Fed. Cir. 2005).

Opinion

FRIEDMAN, Senior Circuit Judge.

In this design patent infringement case, the jury, answering interrogatories, found that the patent was valid and willfully infringed, and awarded damages of $813,550 for the. infringement, but denied damages for breach of a non-disclosure agreement. The district. court denied judgment as- a matter of law for the defendants, refused to . establish a constructive trust for the patentee’s benefit, and awarded the paten-tee, attorney fees. Junker v. Eddings, No. 3:02-CV-0172-M (N.D.Tex. Jan. 16, 2004) (“Amended Judgment”). We affirm all of those actions, except the attorney fee award, which we vacate and remand for further proceedings.

I

The basic facts are largely undisputed. Larry G. Junker was an inventor and a salesman of medical devices. Beginning in 1998, the appellant Galt Medical Corporation’s president, James R. Eddings, met and communicated with Junker to develop and market an introducer sheath for medical insertion of catheters. At their first meeting in August 1998, Junker and Ed-dings each signed a non-disclosure agreement. Junker then showed Eddings a prototype design for an introducer sheath that Junker had developed, which included larger handles so that doctors could mox-e easily grip the sheath.

Junker suggested to Eddings by fax in December 1998 that the handle of the *1361 sheath be made “larger (wider)” and attached a hand-drawn sketch showing . a propeller-shaped design. The appellants (collectively, “Galt”) subsequently revised the handle design of the Galt introducer sheath in development so that it appeared similar to Junker’s sketch. During 1999, Galt gave Junker copies of its prototypes and final production drawings to aid in his sales and marketing efforts.

On January 13, 2000, Galt filed a patent application for the introducer sheath, naming Richard Gillespie, a developer it had hired, as the inventor. Galt’s utility patent, U.S. Patent No. 6,336,914 (issued Jan, 8, 2002) (the “ ’914 patent”) eventually issued from this application.

Shortly after learning about Galt’s application, Junker filed his own design patent application on February 7, 2000, using the same production drawings that Galt had filed as part of its ’914 patent application. The patent in suit, U.S. Patent ■ No. D 450,839 (issued Nov. 20, 2001) (the “D’839 patent”), issued to Junker from this application. The sole claim of the D’839 patent reads as follows: “The ornamental design for a handle for introducer sheath, as shown and deseribed[,]” followed by figures taken from Galt’s drawings. D’839 patent, 1-4.

Following a business disagreement, Junker sued Galt in the United States District Court for the Northern District of Texas. Junker alleged infringement of the D’839 patent, as well' as state law claims including breach of contract based on Galt’s violation of the 1998 non-disclosure agreement. In response, Galt asserted that the D’839 patent was invalid under several provisions of 35 U.S.C. § 102 because' Junker was not the first to invent the claimed design. Junker v. Eddings, No. 3:02-CV-0172-M (N.D.Tex. Dec. 5, 2003) (joint pretrial order).

From the start of the litigation, Junker contended that the scope ’of his D’839 patent claim was limited to a single ornamental feature of the introducer sheath, namely, the enlarged, rounded, “Mickey Mouse ear” shaped handle. In keeping with this argument, at trial Junker only presented evidence relating to this single feature, which he contended that he had invented prior to the ’914 patent application, based on evidence including his December 1998 fax to Eddings. Galt argued that the D’839 patent claimed numerous additional features that Junker did not invent. Galt also moved unsuccessfully for partial summary judgment under 35 U.S.C. § 171 on the ground that the D’839 design was functional rather than ornamental. The claim of the D’839 patent was never judicially construed, and Galt never requested that such a construction be done.

Before the case was submitted to the jury, Galt moved for judgment as a matter of law (JMOL) pursuant to Rule 50(a) of the Federal Rules of Civil Procedure. Galt contended that the claim of the D’839 patent was invalid under 35 Ü.S.C. § 102(e) based on the earlier filing date of the ’914 patent, or alternatively under 35 U.S.C. § 102(f) and/or § 102(g)(2). The trial court denied Galt’s motion without prejudice to its renewal.

Without objection, the court gave the jury a single question covering all of Galt’s section 102 defenses:

7. Do you find from clear and convincing evidence that plaintiff was not the first inventor of the design described in the ’839 patent?

The court also gave the following jury instruction without objection:

... [Y]ou are instructed that plaintiff was not the first inventor if you find from clear and convincing evidence that the ornamental features claimed in the ’839 patent were known and used, or *1362 made and not abandoned or suppressed, by persons other than Plaintiff before the date of Plaintiffs invention. Answer “Yes” or “No”.

(J.A. at 21, 1011.) The jury answered question 7 “No.” (J.A. at 21,1022.)

The jury found that Junker had sustained $813,550 in damages due to Galt’s infringement of his D’839 patent, and the court awarded Junker this amount at final judgment. Am. J. at ¶ 5. The jury also found that Galt had breached the August 1998 non-disclosure agreement, but that the breach had not caused Junker any damages. Post-verdict, Galt renewed its motion for JMOL that the D’839 patent was invalid in accordance with Rule 50(b), and the court again denied it.

The district court also awarded Junker attorney fees of $275,000 under 35 U.S.C. § 285. Am. J. at ¶ 9. According to Junker’s attorney, the actual fees Junker had incurred were $126,712.50. (J.A. at 1054.) The court gave no justification for or explanation of the basis for the increased amount. Galt’s appeal challenges the validity rulings and the amount of the attorney fee award.

Based on the jury’s findings that Galt had breached the 1998 non-disclosure agreement, but that the breach had not caused Junker any damages, Junker asked the district court to impose a constructive trust on Galt’s ’914 patent as a remedy for Galt’s breach. The court denied the request, stating that “because the jury awarded no damages, Plaintiff is not entitled to any relief for Defendant’s breach.” Id. at ¶ 10. Junker has cross-appealed the denial of a constructive trust and the failure to award breach-of-contract damages.

II

Galt first arg-ues that the D’839 patent is invalid under 35 U.S.C. §§ 102

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396 F.3d 1359, 73 U.S.P.Q. 2d (BNA) 1850, 2005 U.S. App. LEXIS 1956, 2005 WL 287478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/junker-v-eddings-cafc-2005.