McM Portfolio LLC v. Hewlett-Packard Company

812 F.3d 1284, 117 U.S.P.Q. 2d (BNA) 1284, 2015 U.S. App. LEXIS 20848, 2015 WL 7755665
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 2, 2015
Docket2015-1091
StatusPublished
Cited by25 cases

This text of 812 F.3d 1284 (McM Portfolio LLC v. Hewlett-Packard Company) 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
McM Portfolio LLC v. Hewlett-Packard Company, 812 F.3d 1284, 117 U.S.P.Q. 2d (BNA) 1284, 2015 U.S. App. LEXIS 20848, 2015 WL 7755665 (Fed. Cir. 2015).

Opinion

DYK, Circuit Judge.

MCM Portfolio LLC (“MCM”) owns U.S. Patent No. 7,162,549 (“the '549 patent”), which claims methods and systems for coupling a computer system with a flash memory storage system. Hewlett-Packard Co. (“HP”) filed a petition with the Patent and Trademark Office (“PTO”) requesting inter partes review of claims 7, 11, 19, and 21 of the '549 patent. The Patent Trial and Appeal Board (“Board”) determined that HP’s petition demonstrated a reasonable likelihood that the challenged claims of the '549 patent were invalid as obvious and instituted an inter partes review. Thereafter, the Board issued a final decision holding that the challenged claims would have been obvious. MCM appeals.

We hold that we lack jurisdiction to review the Board’s decision that the institution of inter partes review was not barred by 35 U.S.C. § 315(b), but we conclude that we can review the question of whether the final decision violates Article III and the Seventh Amendment. On the merits, we reject MCM’s argument that inter partes review violates Article III and the Seventh Amendment, and we affirm the Board’s decision that claims 7, 11, 19, and 21 of the '549 patent would have been obvious over the prior art.

Background

The '549 patent, entitled “Multimode Controller for Intelligent and ‘Dumb’ Flash Cards,” issued on January 9, 2007, *1286 and claims a priority date of July 6, 2000. The patent claims methods and systems for coupling flash memory cards to a computer utilizing a “controller chip.” '549 patent at Abstract. In general, a controller is a device that performs the physical transfer of data between a computer and a peripheral device, such as a monitor, keyboard, or, as here, a flash memory card. See Allan Freedman, The Computer Glossary 75-76 (9th ed. 2001).

The primary purpose of the controller here is to achieve error correction. See '549 patent col. 28, 11. 37-54. Error correction tests for accurate data transmission in order to “present a flawless medium to the system, in a specific format, so the computer [ ] sees an error-free storage medium [ ], rather than a flash [memory] that may have certain defects.” Id. at col. 28,11. 37-41; see also Freedman, supra, at 135. As described in the patent, removable flash memory- cards are commonly used in digital cameras to store image or video files and enable the convenient transfer of those files to a computer using a card reader. '549 patent at col. 1, 11. 50-•56. At the time the '549 patent was filed, flash memory cards were made by various companies and came in many shapes and formats, such as CompactFlash, Secure Digital, and Memory Stick. Id. at col. 2, 11. 28-55. The specification describes a need for a flash memory card reader that can be used with flash memory cards of several different formats, and, relevant here, a controller on the card reader “that can work with multiple types of flash memory cards that have controllers, and also with flash memory cards that do not have controllers.” Id. at col. 3, 1.53 to col. 4, 1.22.

The patent claims improvements to flash memory card readers, including a controller chip that can determine whether the flash memory card has an onboard controller for error correction, and if it does not, using firmware to manage error correction for the flash memory card.

Claims 7 and 11 are illustrative:

7. A method comprising:
using a controller chip to interface a flash storage system with or without a controller to a computing device, the controller chip comprising a flash adapter, wherein the flash storage system comprises a flash section and at least a medium ID;
determining whether the flash storage system includes a controller for error correction; and
in an event where the flash storage system does not have a controller for error correction, using firmware in the flash adapter to perform operations to manage error correction of the flash section, including bad block mapping of the flash section in the flash storage system that is coupled to the flash adapter section.
11. A system comprising:
a computing device;
a flash storage system comprising a flash section and at least a portion of a medium ID; and
a controller chip coupled between the computing device and the flash storage system to interface the flash storage system to the computing device, the controller chip comprising an interface mechanism capable of receiving flash storage systems with controller and controllerless flash storage systems, a detector to determine whether the flash storage system includes a controller for error correction and a flash adapter which comprises firmware to perform, in an event where the flash storage system does not have a controller for error correction, operations to manage error correction of the flash section, including *1287 bad block mapping of the flash section in the flash storage system that is coupled to the flash adapter section.

Id. at col. 30, 11. 23-37, 48-65. Claims 19 and 21, which depend from claims 7 and 11, respectively, further require that the flash adapter comprise a plurality of interfaces capable of receiving a plurality of flash storage systems. Id. at col. 32,11. 1-3, 7-9.

On March 27, 2013, HP petitioned for inter partes review of claims 7, 11, 19, and 21 of the '549 patent under 35 U.S.C. § 311, asserting that those claims were anticipated by, or obvious over, five prior art references. MCM filed a preliminary response on June 27, 2013. MCM argued, inter alia, that institution of inter partes review was barred under 35 U.S.C. § 315(b). MCM argued that HP was a privy of Pandigital, Inc. (“Pandigital”), because HP was reselling allegedly infringing digital picture frames manufactured by Pandigital. Because MCM had filed suit for infringement of the '549 patent against Pandigital more than one year before HP filed the petition for inter partes review, MCM argued that § 315(b) barred inter partes review.

On September 10, 2013, the Board instituted inter partes review with respect to claims 7, 11, 19, and 21 of the '549 patent. The Board found that there was a reasonable likelihood that HP would prevail with respect to at least one of the challenged claims based on obviousness over two prior art references: U.S. Patent No. 6,199,122 (“Kobayashi”) and WO 98/03915 (“Kiku-chi”). The Board rejected MCM’s argument that it could not institute inter partes review under 35 U.S.C. § 315(b), holding that the fact that Pandigital and HP were successive owners of the same allegedly infringing property was not sufficient to confer privity for the purposes of § 315(b).

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812 F.3d 1284, 117 U.S.P.Q. 2d (BNA) 1284, 2015 U.S. App. LEXIS 20848, 2015 WL 7755665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcm-portfolio-llc-v-hewlett-packard-company-cafc-2015.