Mentor Graphics Corporation v. Eve-Usa, Inc.

851 F.3d 1275, 122 U.S.P.Q. 2d (BNA) 1120, 2017 WL 1024502, 2017 U.S. App. LEXIS 4595
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 16, 2017
Docket2015-1470, 2015-1554, 2015-1556
StatusPublished
Cited by108 cases

This text of 851 F.3d 1275 (Mentor Graphics Corporation v. Eve-Usa, 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.

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Mentor Graphics Corporation v. Eve-Usa, Inc., 851 F.3d 1275, 122 U.S.P.Q. 2d (BNA) 1120, 2017 WL 1024502, 2017 U.S. App. LEXIS 4595 (Fed. Cir. 2017).

Opinion

MOORE, Circuit Judge.

The present appeal arises from litigation in the District of Oregon between Mentor Graphics Corp. (“Mentor”) and Synopsys, Inc., Synopsys Emulation and Verification S.A;S., and EVE-USA, Inc. (“EVE”) (collectively, “Synopsys”). 1 Mentor asserted several patents against Synopsys, including U.S. Patent Nos. 6,240,376 (“the ’376 patent”), 6,947,882 (“the ’882 patent”), 6,009,531 (“the ’531 patent”), and 5,649,176 (“the ’176 patent”). Synopsys asserted two patents against Mentor — U.S. Patent Nos. 6,132,109 (“the ’109 patent”) and 7,069,526 (“the ’526 patent”).

The ’376 patent was the only patent tried to the jury. Prior to trial, the district court granted summary judgment barring Synopsys from challenging the ’376 patent’s validity because of assignor estoppel. It also granted Synopsys’ motion in limine precluding Mentor from introducing evidence of willful infringement. The jury found in favor of Mentor and found damages of approximately $36,000,000. Synop-sys appeals the infringement verdict, the damages award, and the summary judgment of assignor estoppel. Mentor cross-appeals the motion in limine regarding willfulness.

The district court granted summary judgment on the remaining patents prior to trial. It held that Synopsys’ ’109 patent was indefinite and Synopsys’ ’526 patent lacked patent-eligible subject matter. Sy-nopsys appeals both decisions. The district court also held that the claims of Mentor’s ’882 patent lacked written description support and its infringement allegations relating to the ’531 and ’176 patents were barred by claim preclusion. Mentor cross-appeals both decisions.

We hold there was substantial evidence to support the jury’s infringement verdict regarding the ’376 patent and affirm the district court’s denial of judgment as a matter of law.' We affirm the damages award. We affirm the summary judgment that assignor estoppel bars Synopsys from challenging the validity of the ’376 patent. We reverse the summary judgment that Synopsys’ ’109 patent is indefinite. We affirm the summary judgment that Synopsys’ ’526 patent lacks patent-eligible subject matter. We vacate the motion in limine precluding Mentor from presenting evidence of willful infringement. We reverse the summary judgment that Mentor’s ’882 patent lacks written description support. Finally, we reverse the summary judgment that Mentor’s infringement allegations regarding the ’531 and ’176 patents are barred by claim preclusion.

I. Background

Every patent in this case involves simulation/emulation technology. The parties have a complicated litigation history, and only the relevant portions thereof are addressed here. In 1998, Mentor filed the application that would become the ’376 patent. The two inventors, Dr. Alain Raynaud and Dr. Luc Burgun, were Mentor employees and assigned the invention to Mentor. Dr. Raynaud and Dr. Burgun subsequently left Mentor and founded EVE, with Dr. Burgun serving as president and CEO and Dr. Raynaud serving as a Technology Center Director. In 2006, Mentor sued EVE for infringement of the ’376, ’531, and T76 patents, alleging EVE’s “ZeBu” emulation *1281 and verification system infringed the patents. Mentor and EVE settled prior to trial, and EVE obtained a license to the three patents. The license contained a provision terminating the license if EVE were acquired by another company in the emulation industry.

In 2012, Mentor learned Synopsys was in discussions to acquire EVE. Mentor’s CEO contacted his counterpart at Synop-sys and offered to waive the confidentiality provision of the Mentor-EVE license to inform Synopsys that the license would terminate if Synopsys acquired EVE. Synopsys and EVE subsequently filed a declaratory judgment action, seeking a declaration that the ’531, ’176, and ’376 patents were invalid and not infringed. One week later, Synopsys acquired EVE. Mentor answered the declaratory judgment complaint, adding counterclaims of willful infringement of the ’531, ’176, and ’376 patents. Synopsys then amended its complaint to assert claims of infringement of the ’526 and ’109 patents against Mentor. The district court consolidated the suit with another involving Mentor’s ’882 patent.

The parties appeal the various summary judgment and post-trial rulings. We have jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).

II. Analysis

A. Synopsys’ Appeal

1. Infringement of Mentor’s ’376 Patent

The jury found Synopsys infringed claims 1, 24, and 26-28 of the ’376 patent and awarded damages. Synopsys moved for JMOL that its products did not infringe. The district court denied the motion, and Synopsys appeals. We affirm the denial of JMOL.

We apply the law of the regional circuit when reviewing a- denial of JMOL after a jury verdict. In the Ninth Circuit, JMOL is appropriate only “if the evidence, construed in the light most favorable to the nonmoving party, permits only one reasonable conclusion, and that conclusion is contrary to the jury’s verdict.” Pavao v. Pagay, 307 F.3d 915, 918 (9th Cir. 2002).

The ’376 patent relates to debugging source code after synthesis. Synthesis is the process of transforming Hardware Description Language (“HDL”) into gate-level “netlists.” ’376 patent at 1:26-27. Much of the patent’s disclosure addresses Register Transfer Level (“RTL”) source code, which is a subset of HDL. See id. at 1:27-31. The patent teaches that prior art HDL simulators were limited because a developer could only view the input and ultimate output of a netlist; there was no way to “step through” the intermediate gates. Id. at 2:1-17. Without the ability to measure intermediate values, “the ability to debug the design at the gate level [was] severely limited.” Id. at 2:20-23. Additionally, to the extent intermediate signals could be measured, there was no way to map a value within a netlist to its corresponding RTL logic within the source code. Id. at 2:13-17.

The ’376 patent seeks to solve these problems by allowing developers to insert test probes at various stages of a netlist to monitor intermediate values. Id. at 2:30-39; Figs. 1, 2. The probe results are referred to as “instrumentation signals.” Id. at 6:32-34. The system correlates instrumentation signals with corresponding portions of the RTL code and displays the results to a user. Id. at 2:30-34. Asserted claim 1 is representative:

1. A method comprising the steps of:
a) identifying at least one statement within a register transfer level (RTL) synthesizable source code; and
*1282 b) synthesizing the source code into a gate-level netlist including at least one instrumentation signal, wherein the instrumentation signal is indicative of an execution status of the at least one statement.

Id. at 15:1-8 (emphasis added).

Mentor accused Synopsys’ ZeBu emulators of infringing.

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851 F.3d 1275, 122 U.S.P.Q. 2d (BNA) 1120, 2017 WL 1024502, 2017 U.S. App. LEXIS 4595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mentor-graphics-corporation-v-eve-usa-inc-cafc-2017.