L'Oreal USA, Inc. v. Olaplex, Inc.

CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 28, 2021
Docket19-2410
StatusUnpublished

This text of L'Oreal USA, Inc. v. Olaplex, Inc. (L'Oreal USA, Inc. v. Olaplex, Inc.) 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
L'Oreal USA, Inc. v. Olaplex, Inc., (Fed. Cir. 2021).

Opinion

Case: 19-2410 Document: 62 Page: 1 Filed: 01/28/2021

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

L’ORÉAL USA, INC., Appellant

v.

OLAPLEX, INC., Cross-Appellant ______________________

2019-2410, 2020-1014 ______________________

Appeals from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. PGR2018- 00025. ______________________

Decided: January 28, 2021 ______________________

MICHELLE E. O'BRIEN, The Marbury Law Group, PLLC, Reston, VA, argued for appellant. Also represented by TIMOTHY JAMES MURPHY.

SANFORD IAN WEISBURST, Quinn Emanuel Urquhart & Sullivan, LLP, New York, NY, argued for cross-appellant. Also represented by JOSEPH M. PAUNOVICH, Los Angeles, CA; MATTHEW BLACKBURN, Diamond McCarthy LLP, San Francisco, CA. ______________________ Case: 19-2410 Document: 62 Page: 2 Filed: 01/28/2021

2 L’ORÉAL USA, INC. v. OLAPLEX, INC.

Before DYK, REYNA, and TARANTO, Circuit Judges. TARANTO, Circuit Judge. L’Oréal USA, Inc. filed a petition for post-grant review under 35 U.S.C. §§ 321–29 of all claims of U.S. Patent No. 9,668,954, a patent then owned by Liqwd, Inc. that claims methods of treating hair using a product that includes ma- leic acid. As relevant here, L’Oréal urged unpatentability for obviousness under 35 U.S.C. § 103 based on the combi- nation of U.S. Patent Publication No. 2012/0024309 (Pratt) and U.S. Patent No. 6,358,502 (Tanabe). After institution of the requested review, and Liqwd’s disclaimer of claim 17, the Patent Trial and Appeal Board determined that claims 14–16, 18, and 24–28 (the breakage claims) were not proved unpatentable but that claims 1–13, 19–23, and 29– 30 were proved unpatentable. L’Oréal appeals the Board’s determination regarding the breakage claims. Liqwd cross-appeals the Board’s determination regarding claims 1–13, 19–23, and 29–30. We affirm. As an initial matter, we grant Liqwd’s motion to sub- stitute Olaplex, Inc. for Liqwd under Federal Rule of Ap- pellate Procedure 43, based on Liqwd’s transfer of its interest in the ’954 patent to Olaplex after the parties filed notices of appeal and cross-appeal. The caption, originally listing Liqwd, now lists Olaplex instead. Except when dis- cussing the substitution issue, we will generally use “Olaplex” to refer to both Liqwd and Olaplex. We affirm the Board’s determination that claims 1–13, 19–23, and 29–30 are unpatentable for obviousness based on the combined teachings of Pratt and Tanabe. Olaplex challenges only the Board’s findings on motivation to com- bine, reasonable expectation of success, and the objective indicium of copying. We conclude that substantial evidence supports the Board’s findings that a relevant artisan would have a motivation to combine Pratt and Tanabe with a rea- sonable expectation of success. As to copying, we assume Case: 19-2410 Document: 62 Page: 3 Filed: 01/28/2021

L’ORÉAL USA, INC. v. OLAPLEX, INC. 3

that, by virtue of issue preclusion based on our decision in- volving a related Olaplex patent several months after the Board decision in this matter, we must accept that “L’Oréal would not have developed products using maleic acid with- out having access to Liqwd’s confidential information.” Liqwd, Inc. v. L’Oréal USA, Inc., 941 F.3d 1133, 1136 (Fed. Cir. 2019) (’419 Decision); id. at 1138–39 (affirming Board finding that “L’Oréal used maleic acid because of L’Oréal’s access to Liqwd’s non-public information, rather than be- cause of L’Oréal’s independent development” (cleaned up)). We conclude, however, that substantial evidence supports the additional nexus-related facts that the Board in this matter found regarding copying, and given those facts, we further conclude, in conducting the ultimate legal analysis of obviousness based on all supported facts, that claims 1– 13, 19–23, and 29–30 are unpatentable for obviousness. We also affirm the Board’s determination that the breakage claims were not proved unpatentable. We hold that the breakage-decrease requirements added by the breakage claims limit the invention claimed for purposes of patentability analysis. And we hold that substantial evi- dence supports the Board’s finding that L’Oréal failed to establish, as it asserted, that meeting the breakage claims’ requirements is inherent in the combined teachings of Pratt and Tanabe. I The ’954 patent “generally relates to formulations and methods for treating keratin in hair, skin, or nails, and in particular for strengthening and/or repairing hair during or after” a coloring, a bleaching, or a permanent-wave treatment. ’954 patent, col. 1, lines 19–22; see also id., col. 7, lines 7–14. The patent describes a method of using a formulation with an “active agent” (a polyfunctional com- pound) that “rebuild[s] the disulfide bonds in keratin found in hair” during bleaching (also called lightening). Id., Ab- stract; id., col. 7, lines 16–17; id., col. 7, lines 42–46. The Case: 19-2410 Document: 62 Page: 4 Filed: 01/28/2021

4 L’ORÉAL USA, INC. v. OLAPLEX, INC.

formulation with the active agent may be applied “at the same time as” or after the coloring, bleaching, or perma- nent-wave treatment, id., col. 3, lines 28–31, and the “ac- tive agents are washed from the individual’s hair on the same day that they are applied to the hair,” id., col. 3, lines 14–17. The patent describes several examples with the ac- tive agent being “maleic acid.” See, e.g., id., col. 21, lines 26–67 (“Example 1”); col. 22, lines 1–36 (“Example 2”). The ’954 patent’s claims all require maleic acid as the active agent. For this appeal, claim 1, which is the only independent claim in the patent, is representative of claims 2–13, 19–23, and 29–30. Claim 1 recites: 1. A method for bleaching hair comprising: (a) mixing a bleach powder and a developer to form a bleaching formulation; (b) mixing an active agent formulation com- prising an active agent with the bleaching formu- lation to form a mixture, wherein the active agent is maleic acid; and (c) applying the mixture to the hair; wherein the active agent in the mixture is at a concentration ranging from about 0.1% by weight to about 50% by weight. Id., col. 25, lines 58–67. Claims 14–16, 18, and 24–28, each of which simply adds a specific requirement of a level of decrease in hair breakage, have been labeled the “breakage claims” in this matter. Claim 24, which is illustrative, recites: 24. The method of claim 1, wherein following step (c) breakage of the hair is decreased by at least 5% compared to hair bleached with the bleaching for- mulation in the absence of the active agent. Case: 19-2410 Document: 62 Page: 5 Filed: 01/28/2021

L’ORÉAL USA, INC. v. OLAPLEX, INC. 5

Id., col. 27, lines 7–10. The language of claims 25–28 mir- rors claim 24 but covers different percentages of decreased breakage: “at least 10%” (claim 25); “at least 20%” (claim 26); “at least 40%” (claim 27); “at least 50%” (claim 28). Id., col. 27, lines 11–26. Claims 14–16 and 18 are relevantly similar, but they depend on claim 13, which depends on claim 12—which depends on claim 1 and adds a require- ment for a second maleic-acid-based active agent—and adds that “the second active agent formulation further comprises a conditioning agent.” Id., col. 26, lines 34–47, 52–55. II A The Board relied on several alternative combinations of prior-art references for its unpatentability determina- tions, but the only combination we must address on appeal is the combination of Pratt and Tanabe. Pratt: “Bleaching/Highlighting Composition.” Pratt states that its “objective . . .

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