Monolithic Power Systems, Inc. v. O2 Micro International Ltd.

558 F.3d 1341, 90 U.S.P.Q. 2d (BNA) 1001, 2009 U.S. App. LEXIS 4528, 2009 WL 539910
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 5, 2009
Docket2008-1128, 2008-1136
StatusPublished
Cited by15 cases

This text of 558 F.3d 1341 (Monolithic Power Systems, Inc. v. O2 Micro International Ltd.) 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
Monolithic Power Systems, Inc. v. O2 Micro International Ltd., 558 F.3d 1341, 90 U.S.P.Q. 2d (BNA) 1001, 2009 U.S. App. LEXIS 4528, 2009 WL 539910 (Fed. Cir. 2009).

Opinion

RADER, Circuit Judge.

In a jury trial, the United States District Court for the Northern District of California appointed an expert witness under Fed.R.Evid. 706(a) to testify on contested issues. Based on that testimony and considerable other evidence, the jury found all asserted claims of 02 Micro International Limited’s (“O2 Micro’s”) U.S. Patent No. 6,396,722 (“'722 patent”) obvious under 35 U.S.C. § 103. Because the district court did not abuse its discretion in appointing an expert under the Federal Rules, and because this court finds no error in the district court’s denial of 02 Micro’s motion for judgment as a matter of law on obviousness, this court affirms the judgment of the district court.

I

02 Micro’s '722 patent, entitled “High-Efficiency Adaptive DC/AC converter,” re *1344 lates to power inverter circuitry for laptop computers. Laptops must be capable of operating on direct current (“DC”) power sources such as batteries. However, the cold cathode fluorescent lamps (“CCFLs”) for backlit laptop screens require high voltage, alternating current (“AC”) power. The disclosed circuitry converts low voltage DC battery power into higher voltage AC power with the help of feedback circuitry that precisely controls the amount of power delivered from the battery to the CCFL. Figure 2 of the '722 patent illustrates the converter circuit in question.

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Switches A-D define a “full-bridge” switch configuration. Diagonally opposing pairs of switches (A and D, B and C) define alternating conduction paths for current to reach the CCFL load (20) from the battery source Vl(12). The full bridge ‘chops up’ direct current into alternating current by requiring current to alternately flow through the A-D and B-C paths. By selectively turning on the pairs of switches, the circuitry controls the amount of power delivered to the load.

A feedback signal (“FB”) indicates the current being supplied to the CCFL at any given time. In turn, a reference signal (“REF”) indicates desired load conditions. A comparator (32) compares the feedback signal with the reference signal to produce a comparison signal (“CMP”). This CMP signal triggers adjustments to the load power by adjusting the amount of overlap between the switches. Thus, the circuit regulates outputted power much as a home thermostat maintains a steady-state temperature.

Additionally, the converter circuit includes over-voltage protection mechanisms that reduce the power supplied to the CCFL in short-circuit or open-circuit situations. As shown in Figure 2, a current sensing comparator (42) compares the presently supplied current (FB) with a reference value reflecting the minimum or maximum current permitted by the system. If FB is within a permissible range, the comparator allows the current to flow unhindered through the output switch (38). However, when FB is in an undesirable range, the comparator substitutes a minimum voltage (“Vmin”) at the output switch *1345 (38), reducing the CCFL’s power to a safe level.

II

In May 2004, Monolithic Power Systems, Inc. (“MPS”) filed suit in the Northern District of California seeking a declaratory judgment finding 02 Micro’s '722 patent invalid, not infringed, and unenforceable. 02 Micro counterclaimed for infringement and added Advanced Semiconductor Manufacturing Corp. (“ASMC”), MPS’s foundry, as a counter-defendant. 02 Micro’s counterclaim alleged that several models of MPS inverter controllers infringe claims 1, 2, 9, 12, 14 and 18 of the '722 patent.

Five months later, 02 Micro sued MPS in the Eastern District of Texas, accusing MPS of infringing U.S. Patent No. 6,804,-129 (“the '129 patent”). 02 Micro later amended its complaint to also accuse ASMC of infringing the '129 patent and to accuse ASUSTeK Computer Inc. (“ASUS”) of infringing U.S. Patent No. 6,259,615 (“the '615 patent”), as well as the '722 and '129 patents. In March 2006, the Texas court transferred 02 Micro’s case to the Northern District of California, which in turn consolidated the two cases. The district court in California then dismissed 02 Micro’s claims regarding the '129 patent with prejudice, and granted summary judgment of non-infringement of the '615 patent in favor of ASUS.

On Oct. 27, 2006, the district court convened a case management conference and set a trial date for Apr. 30, 2007. At the conference, the court expressed its frustration with the technical complexities of the '722 patent.

On the technical issues here ... I find this extremely difficult to understand. And the notion that a jury is going to understand it, to me, is foolishness. You can talk for months and the jury isn’t really going to understand this in the sense of being able to make a reasoned, rational decision about it.
They will make a decision, we hope. Maybe they will hang because they’ll say that we can’t possibly understand this, but in my experience, they make a decision. But what is it based on? ... It is kind of trial by ordeal or by sort of a champion, like a jousting contest rather than on the actual scientific merits of who is right and who is wrong.

Hr’g Tr. 35:3-8, Oct. 27, 2006. The court entertained the idea of appointing an independent expert under Fed.R.Evid. 706 to testify “on the electrical engineering aspects” of the case. Id. at 35:22. This expert, in the court’s estimation, “would essentially, I can’t say decide the case, but would testify and [the jury] would be told ‘This is the court’s expert on these points.’ ” Id. at 36:2-4. 02 Micro objected, while MPS expressed its approval of the idea.

On Jan. 17, 2007, the district court ordered the parties to confer about candidates to serve as the Rule 706 expert. The parties ultimately agreed, after a series of disagreements, upon an expert, Dr. Enrico Santi. The district court outlined a protocol detailing what information to provide Dr. Santi and when to complete discovery regarding his opinions.

Trial commenced as scheduled in April 2007. MPS and the other appellees presented evidence that the asserted claims of the '722 patent were obvious under 35 U.S.C. § 103. Further, MPS presented evidence that the '722 patent was invalid under the on-sale bar of 35 U.S.C. § 102(b). The court-appointed expert, Dr. *1346 Santi, offered testimony largely consistent with MPS’s theory of the case, including MPS’s position that it did not infringe 02 Micro’s asserted claims. The district court instructed the jury that Dr. Santi was “an independent witness retained by the parties jointly at the court’s direction to assist in explaining the technology at issue in this case.” Trial Tr. 96:21-24, Apr. 30, 2007.

On May 15, 2007, the jury rendered a verdict favorable to MPS and the appel-lees.

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558 F.3d 1341, 90 U.S.P.Q. 2d (BNA) 1001, 2009 U.S. App. LEXIS 4528, 2009 WL 539910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monolithic-power-systems-inc-v-o2-micro-international-ltd-cafc-2009.