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

Case: 22-1138 Document: 41 Page: 1 Filed: 09/11/2023

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 rep- resented by DAVID P. YIN; MARK CHRISTOPHER FLEMING, JAMIE N. HADDAD, Boston, MA.

NATHAN NOBU LOWENSTEIN, Lowenstein & Weather- wax LLP, Santa Monica, CA, argued for appellee. Also rep- resented by PARHAM HENDIFAR, KENNETH J. WEATHERWAX. ______________________

Before HUGHES, STOLL, and STARK, Circuit Judges. Case: 22-1138 Document: 41 Page: 2 Filed: 09/11/2023

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 dis- cretion 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 pre- cisely 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 re- consider that factual question consistent with this opinion. BACKGROUND I The ’792 patent explains, in a section titled “Back- ground of the Invention,” that “[t]he present invention re- lates 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 be- gins: “A multimedia file and methods of generating, dis- tributing 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 Re- source Interchange File Format (RIFF), which is used for storing multimedia information. Id. at col. 5 ll. 33–39. Rel- evant here is a special version of the RIFF format—the Au- dio Video Interleave (AVI) file—which contains additional Case: 22-1138 Document: 41 Page: 3 Filed: 09/11/2023

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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 pa- tent describes and claims a feature called trick play func- tionality, 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 implement- ing 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 po- sition 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 “lo- cated 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 com- prising at least one video track and at least one au- dio track, the decoder comprising: a processor; and memory having a multimedia file including: a series of encoded video frames; Case: 22-1138 Document: 41 Page: 4 Filed: 09/11/2023

a first index that includes information in- dicative of the location within the file and characteristics of each encoded video frame; and a separate second index that includes infor- mation 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 en- abling 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 pa- tent 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 apparat- uses and, more particularly, to a motion image reproducing apparatus which is applicable to a digital camera for repro- ducing motion image data recorded on a recording me- dium.” Kaku col. 1 ll. 6–10. Kaku’s abstract discloses that, in a reproduce mode, “image data accommodated in a de- sired AVI file of a memory card is read out frame by frame in an intermittent fashion.” Kaku’s summary of the inven- tion refers to handling and manipulating data files contain- ing 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. Case: 22-1138 Document: 41 Page: 5 Filed: 09/11/2023

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 im- ages to reproduce motion images. Id. at col. 2 ll. 19–24. Although Kaku describes the “primary object” of its inven- tion 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 clar- ifies that “the invention is applicable to every electronic ap- pliance to reproduce motion images.” Id. at col. 11 ll. 58– 61. In its petition, Netflix argued that Zetts disclosed a sys- tem and method of inserting an abridged index (“GOP off- set 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 begin- ning addresses of each frame,” J.A. 6026.

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

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