Old Town Canoe Company v. Confluence Holdings Corp.

448 F.3d 1309, 78 U.S.P.Q. 2d (BNA) 1705, 2006 U.S. App. LEXIS 11435
CourtCourt of Appeals for the Federal Circuit
DecidedMay 9, 2006
Docket2005-1123
StatusPublished
Cited by36 cases

This text of 448 F.3d 1309 (Old Town Canoe Company v. Confluence Holdings Corp.) 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
Old Town Canoe Company v. Confluence Holdings Corp., 448 F.3d 1309, 78 U.S.P.Q. 2d (BNA) 1705, 2006 U.S. App. LEXIS 11435 (Fed. Cir. 2006).

Opinions

Opinion for the court filed by Circuit Judge LINN.

Dissenting opinion filed by Circuit Judge MAYER.

LINN, Circuit Judge.

Old Town Canoe Company (“Old Town”) appeals from the grant of Confluence Holdings Corp.’s (“Confluence”) motion for judgment as a matter of law (“JMOL”) of noninfringement of U.S. Patent No. 4,836,-963 (filed May 26,1987) (“the ’963 patent”). See Old Town Canoe Co. v. Confluence Holdings Corp., No. 02-CV-0093 (D.Or. Nov. 10, 2004). Confluence cross-appeals from the grant of Old Town’s motion for JMOL of no invalidity based on obviousness, lack of enablement, or failure to disclose best mode, and of no unenforceability based on inequitable conduct. See id. Because the district court did not err in its construction of the claims and correctly concluded that no reasonable juror could find infringement, we affirm the judgment of noninfringement. Because we cannot conclude that no reasonable juror could find in favor of Confluence on the invalidity issues, we vacate the District Court’s [1312]*1312grant of JMOL on those issues and remand for further proceedings consistent with this opinion. Because the district court did not abuse its discretion in granting Old Town’s motion for JMOL of no inequitable conduct, we affirm on that issue.

I. BACKGROUND

The parties manufacture layered polyethylene canoes. Old Town is the assignee of the ’963 patent, which relates to a method of making multilayered plastic laminate boat hulls by rotational molding. The ’963 patent describes a method of releasing successive charges of plastic particulate into a heated mold, which is rotated on two axes in a large oven. Each charge melts and flows together to form a cross-linked plastic layer. A successive charge is not released into the mold until the layer formed by the prior charge has reached an appropriate state. The boat hull will not be usable if a successive charge is released too soon or too late, making it critical to recognize when the preceding layer has reached the appropriate state of completion. The invention recognizes that coalescence of the particulate material will continue to completion even after the mold is removed from the oven if the mold doors are kept closed to retain the residual heat of the mold, thereby reducing oven time and cost.

In January 2002, Old Town filed suit against Confluence, alleging infringement of .the ’963 patent. Confluence filed a counterclaim, seeking a declaratory judgment that the patent was invalid and unenforceable. The parties asked the district court to construe certain claim terms, including the limitation of opening the mold assembly “after coalescence of the third charge is completed,” the only limitation at issue in this appeal. See Old Town Canoe Co. v. Confluence Holdings Corp., No. 02-0093-AS (D.Or. Mar.2, 2004) (“Claim Construction Order”). This limitation speaks to a step that takes place after the mold assembly has been removed from the oven and has been air cooled. The parties agreed that “coalescence” is a process, referring to a 7-stage diagram by Confluence’s expert, Paul Nugent (the “Nugent diagram,” depicted below), but disputed the nature of the process and the point at which “coalescence” is “completed.” Id., slip op. at 3. Both parties agreed that the completion of coalescence did not refer to the first two early stages, nor did it refer to the last two stages. Confluence argued coalescence was complete at stage 3 (i.e., when an uneven layer with bubbles is first formed), whereas Old Town argued coalescence was complete at stage 5 (i.e., optimum cure). Id.

Material Cross Section:

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On June 2, 2003, the district court conducted a Markman hearing and, having evaluated the intrinsic record, contemporaneous dictionaries, cited prior art, and expert testimony, concluded that “it would be understood that ‘coalescence’ is not corn-píete merely because a layer has been formed,” rather, “coalescence” was “ ‘com-[1313]*1313píete’ when it has all necessary parts, elements or steps, or is fully carried out.” Id., slip op. at 8. Thus, the district court construed the claims as meaning “coalescence” is “completed” at optimum stage 5 of the Nugent diagram.

A jury trial began on October 20, 2004. After 5 days of trial, the parties filed cross-motions for JMOL, Confluence moving for noninfringement and Old Town moving that its patent was not invalid and not unenforceable. After hearing argument on the infringement question, the district court granted Confluence’s motion, concluding from the bench that Confluence’s canoes do not infringe Old Town’s ’963 patent. The following day, the district court entertained argument on validity and enforceability and summarily concluded, without explanation, that, because there was not sufficient evidence to meet the clear and convincing evidence standard required to overcome the presumption of validity, the invalidity issues would not be sent to the jury. The district court also held that there was not sufficient evidence for it to find inequitable conduct. On November 10, 2004, the district court entered judgment, granting both motions for JMOL and dismissing without prejudice all remaining claims.

Old Town appeals the district court’s grant of JMOL of noninfringement, arguing that the district court strayed from its Markman claim construction when finding noninfringement as a matter of law.1 Old Town argues that stage 5 of the Nugent diagram may have bubbles and that the court wrongly imposed a requirement that optimum cure have no bubbles and thus incorrectly concluded that, because Confluence’s canoes have bubbles, they do not inflinge, either literally or under the doctrine of equivalents. Old Town argues, in the alternative, that the district court’s claim construction was erroneous in that “completion” does not necessitate that coalescence reach optimum stage 5 of the Nugent Diagram; rather, completion includes other stages during coalescence that can be attained by bringing the process to a halt to produce a commercially viable (i.e., usable) product.

Confluence counters that Old Town should be bound by its admission to the district court that coalescence is a process that ends at stage 5 of the Nugent diagram, and that Old Town’s new construction on appeal, which attempts to define “complete” as “not complete,” is inconsistent with the claim language and intrinsic record. Confluence argues that the district court’s judgment of noninfringement was not based on the presence or absence of bubbles. Rather, the district court correctly held that the limitation requires the plastic laminate to reach the end of coalescence, that is, optimum stage 5, and that the weight of the evidence supports that its products do not infringe because they never reach optimum stage 5. Confluence also cross-appeals the grant of Old Town’s motion for JMOL of no invalidity and un-enforceability, arguing that, on the evidence presented, when viewed in a light most favorable to Confluence, the district court clearly erred in concluding that no reasonable juror could find in Confluence’s favor.

We have jurisdiction under 35 U.S.C. § 1295(a)(1).

II. DISCUSSION

A. Noninfringement

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Bluebook (online)
448 F.3d 1309, 78 U.S.P.Q. 2d (BNA) 1705, 2006 U.S. App. LEXIS 11435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/old-town-canoe-company-v-confluence-holdings-corp-cafc-2006.