Netflix, Inc. v. Divx, LLC

80 F.4th 1352
Court of Appeals for the Federal Circuit·Decided September 11, 2023·No. 22-1138·Published·Cited by 4 cases

Opinion

United States Court of Appeals for the Federal Circuit

NETFLIX, INC.,

Appellant

v.

DIVX, LLC,

Appellee

2022-1138

Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2020- 00646.

Decided: September 11, 2023

THOMAS SAUNDERS, Wilmer Cutler Pickering Hale and Dorr LLP, Washington, DC, argued for appellant. Also represented by DAVID P. YIN; MARK CHRISTOPHER FLEMING, JAMIE N. HADDAD, Boston, MA.

NATHAN NOBU LOWENSTEIN, Lowenstein & Weatherwax LLP, Santa Monica, CA, argued for appellee. Also represented by PARHAM HENDIFAR, KENNETH J. WEATHERWAX.

Before HUGHES, STOLL, and STARK, Circuit Judges.

2 NETFLIX, INC. v. DIVX, LLC

STOLL, Circuit Judge.

Netflix, Inc. appeals the Patent Trial and Appeal Board’s final written decision in an inter partes review of U.S. Patent No. 8,472,792. Netflix challenges the Board’s finding that an asserted prior art reference fails to qualify as analogous art. We hold that the Board abused its discretion in determining that Netflix failed to identify the field of endeavor for either the ’792 patent or the prior art and thus failed to establish analogous art under the field of endeavor test. The Board’s directive that Netflix more precisely articulate the relevant field of endeavor to meet its burden was unduly strict. We therefore vacate the Board’s field of endeavor finding and remand for the Board to reconsider that factual question consistent with this opinion.

BACKGROUND

I

The ’792 patent explains, in a section titled “Background of the Invention,” that “[t]he present invention relates generally to encoding, transmission and decoding of multimedia files.” ’792 patent col. 1 ll. 20–21; see also id. at col. 1 ll. 38–40. The abstract of the patent similarly begins : “A multimedia file and methods of generating, distributing and using the multimedia file are described.” Continuing, the abstract states: “One embodiment of a multimedia file in accordance with the present invention includes a series of encoded video frames, a first index that includes information indicative of the location within the file and characteristics of each encoded video frame and a separate second index that includes information indicative of the location within the file of a subset of the encoded video frames.” The detailed description of the invention describes a file structure compliant with Microsoft’s Resource Interchange File Format (RIFF), which is used for storing multimedia information. Id. at col. 5 ll. 33–39. Relevant here is a special version of the RIFF format—the Audio Video Interleave (AVI) file—which contains additional

NETFLIX, INC. v. DIVX, LLC 3

storage structures called chunks. Id. at col. 5 l. 51–col. 6 l. 17. As characterized by the ’792 patent, a standard AVI file contains an “idx1” chunk that contains information about every single frame. See id. at col. 15 ll. 15–18, col. 22 ll. 20–22. The invention implements a multimedia file based on the AVI file structure and requires an additional chunk—the “index” chunk—that contains information for a subset of frames. See id. at col. 15 ll. 15–18.

DivX, the patent owner, emphasizes that the ’792 patent describes and claims a feature called trick play functionality , which is the ability to “fast forward, rewind and scene skip[]” frames. Id. at col. 16 ll. 26–29; see Appellee’s Br. 5. The specification describes a process for implementing this functionality by locating a specific frame within a multimedia file using an “index” chunk. See ’792 patent Fig. 4.0.1, col. 4 ll. 29–32. After identifying the frame to be sought, the invention searches through the “index” chunk to find “tag” chunks that reference the frames closest to the desired frame (i.e., the desired frame is located between the frames referenced by the “tag” chunks) and returns the position of the video frame and any audio referenced by the “tag” chunk within the multimedia file. Id. at col. 48 ll. 40– 46, col. 49 ll. 7–23. As claimed, the “index” chunk is “located prior to the series of encoded video frames and the first index,” id. at col. 51 ll. 40–45, which allows for trick play functionality “prior to the downloading of the ‘idx1’ chunk,” id. at col. 16 ll. 26–29.

Claim 1 is illustrative of the claimed invention: 1. A decoder for decoding a multimedia file comprising at least one video track and at least one audio track, the decoder comprising: a processor; and memory having a multimedia file including:

a series of encoded video frames;

4 NETFLIX, INC. v. DIVX, LLC

a first index that includes information indicative of the location within the file and characteristics of each encoded video frame; and a separate second index that includes information indicative of the location within the file of a subset of the encoded video frames, the separate second index located prior to the series of encoded video frames and the first index, the first and second indexes enabling trick play functionality.

Id. at col. 51 ll. 31–45.

II

In its petition for inter partes review, Netflix asserted that claims 1, 5, 8, 9, 13–15, 18, and 21–23 of the ’792 patent would have been obvious in view of Zetts 1 as modified by Kaku. 2 The issue on appeal is whether the secondary reference, Kaku, is analogous art to the ’792 patent. In a section titled “Field of the Invention,” Kaku’s specification states that the invention “relates to motion image apparatuses and, more particularly, to a motion image reproducing apparatus which is applicable to a digital camera for reproducing motion image data recorded on a recording medium .” Kaku col. 1 ll. 6–10. Kaku’s abstract discloses that, in a reproduce mode, “image data accommodated in a desired AVI file of a memory card is read out frame by frame in an intermittent fashion.” Kaku’s summary of the invention refers to handling and manipulating data files containing frames of image data and sound. Id. at col. 1 ll. 35–39, col. 2 ll. 28–31. In the detailed description of the preferred embodiments, Kaku discloses using an index chunk in the AVI file header to show image data and/or play sound data.

1 U.S. Patent No. 7,212,726. 2 U.S. Patent No. 6,671,408.

NETFLIX, INC. v. DIVX, LLC 5

Id. at col. 5 ll. 22–30; see also id. Fig. 2. It also discloses compressing and decompressing image data to display images to reproduce motion images. Id. at col. 2 ll. 19–24. Although Kaku describes the “primary object” of its invention as focusing on reproducing a motion image as it relates to memory size of the apparatus (i.e., a problem prevalent with digital cameras), id. at col. 1 ll. 30–34, Kaku also clarifies that “the invention is applicable to every electronic appliance to reproduce motion images.” Id. at col. 11 ll. 58– 61.

In its petition, Netflix argued that Zetts disclosed a system and method of inserting an abridged index (“GOP offset table”) at the beginning of a multimedia file to facilitate trick play, J.A. 6058–61, and that Kaku disclosed “using the AVI file format to store video/audio data, with an ‘index chunk,’ written to the end of the AVI file having the beginning addresses of each frame,” J.A. 6026. Netflix contended that a person of ordinary skill in the art would have been motivated to apply Zetts’s teachings of inserting a GOP offset table at the beginning of a multimedia file to facilitate trick play functionality in an AVI file as taught by Kaku because “the GOP offset table is compact” and allows users to jump to desired locations without being forced to view the entire video. J.A. 6032. DivX argued in its preliminary response that Kaku was cumulative art already considered by the examiner. J.A. 6122–24. The Board instituted the inter partes review.

In its patent owner response, DivX raised the argument that Kaku is non-analogous art. J.A. 6291–315. DivX relied on testimony from its expert, Dr. Chandrajit Bajaj, that:

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Netflix, Inc. v. Divx, LLC, 80 F.4th 1352 (Fed. Cir. 2023).

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