Oren Technologies, LLC v. Proppant Express Investments

CourtCourt of Appeals for the Federal Circuit
DecidedJuly 23, 2021
Docket19-1778
StatusUnpublished

This text of Oren Technologies, LLC v. Proppant Express Investments (Oren Technologies, LLC v. Proppant Express Investments) 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
Oren Technologies, LLC v. Proppant Express Investments, (Fed. Cir. 2021).

Opinion

Case: 19-1778 Document: 64 Page: 1 Filed: 07/23/2021

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

OREN TECHNOLOGIES, LLC, Appellant

v.

PROPPANT EXPRESS INVESTMENTS LLC, PROPPANT EXPRESS SOLUTIONS LLC, Appellees ______________________

2019-1778 ______________________

Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2017- 01918. ______________________

Decided: July 23, 2021 ______________________

JOHN C. O'QUINN, Kirkland & Ellis LLP, Washington, DC, for appellant. Also represented by CALVIN ALEXANDER SHANK, JASON M. WILCOX; GIANNI CUTRI, MEREDITH ZINANNI, Chicago, IL.

MARK T. GARRETT, Norton Rose Fulbright US LLP, Austin, TX, for appellees. Also represented by STEPHANIE N. DEBROW; JONATHAN S. FRANKLIN, PETER B. SIEGAL, Washington, DC. Case: 19-1778 Document: 64 Page: 2 Filed: 07/23/2021

______________________

Before NEWMAN, O’MALLEY, and CHEN, Circuit Judges. PER CURIAM. Oren Technologies, LLC (“Oren”) appeals the decision of the Patent Trial and Appeal Board (“PTAB” or “Board”), ruling on inter partes review (“IPR”) that claims 1–7, 9, 10, and 12–20 (all the challenged claims) of U.S. Patent No. 9,403,626 (“the ’626 patent”) are unpatentable on the ground of obviousness. 1 Oren had charged Proppant Ex- press Investments LLC (“PropX”) with infringement of the ’626 patent, together with continuation U.S. Patent No. 9,511,929 (“the ’929 patent”) and a third related patent, U.S. Patent No. 9,296,518 (“the ’518 patent”) in the United States District Court for the Southern District of Texas. While the district court case was pending, PropX filed this petition for IPR of the ’626 patent, and corollary petitions for the ’929 and ’518 patents. The PTAB found the ’626 patent invalid for obviousness. Oren appealed. We con- clude that the PTAB erred in basing its obviousness finding on a ground of unpatentability not presented by petitioner and in its evidentiary analysis on the objective evidence of nonobviousness. We reverse-in-part, vacate-in-part, and remand. BACKGROUND The ’626 patent is for a “Proppant Storage Vessel and Assembly Thereof.” Proppant is particulate material, such as silica sand, used in the process of hydraulic fracturing that is commonly called “fracking.” Fracking is “the injec- tion of fluid into shale beds at high pressure in order to free up petroleum resources (such as oil or natural gas).”

1 Proppant Express Inv., LLC v. Oren Techs., LLC, No. IPR2017-01918, Paper 83 (P.T.A.B. Feb. 14, 2019) (“Board Op.”). Case: 19-1778 Document: 64 Page: 3 Filed: 07/23/2021

OREN TECHNOLOGIES, LLC v. 3 PROPPANT EXPRESS INVESTMENTS

Fracking, MERRIAM-WEBSTER DICTIONARY. Proppant is in- serted into the well and shale rock to preserve the pres- sure-induced fractures in the rock and thus to facilitate flow of oil and gas into the well. The record states that a fracking well may require several tons of proppant. The sources of proppant tend to be remote from well sites, and the proppant must be contained, transported, stored, and delivered to the well site. Oren states that methods previously used, such as proppant storage in rail- road cars and delivery by pneumatic trailers, were incon- venient, noisy, wasteful, dusty, and unsafe. The ’626 patent describes and claims a container struc- ture that Oren states enables containment, transportation, storage, and efficient release of large volumes of proppant. Figure 1 of the ’626 patent shows the containers stacked for transport, storage, and use:

. Case: 19-1778 Document: 64 Page: 4 Filed: 07/23/2021

’626 patent, Fig. 1. The containers are structured so that the proppant in each container can flow through hinged hatches, and is dis- charged at the well site through the outlet on the bottom container. The specification states that “the hatches 24 and 28 will form a unique and guided flowpath whereby the proppant in the interior volume 18 of the second container 16 can flow directly into the opening 24 and into the inte- rior volume 14 of the first container 12.” ’626 patent, col. 5, ll. 38–42. Patent Figure 6 shows the structure of the individual container, with support members 102 and 104 and ramps Case: 19-1778 Document: 64 Page: 5 Filed: 07/23/2021

OREN TECHNOLOGIES, LLC v. 5 PROPPANT EXPRESS INVESTMENTS

82 and 84, described as providing support and strength for the heavy loads for which these containers are intended:

’626 patent, Fig. 6. Figure 6 also shows hatches 22 and 32 through which the proppant flows from stacked container to container. Claim 18 is representative: 18. A container structurally strengthened to transport and store large volumes of proppant ef- fectively therein, the container comprising: a top; a bottom, having an outlet formed therein; sidewalls coupled to the top and bottom, so as to define an interior volume of the container thereby to store the proppant therein; a plurality of sidewall supports positioned to pro- vide structural support to the sidewalls when large volumes of proppant are positioned within the in- terior volume, the proppant having a substantially spherical shape and a tightly graded particle dis- tribution, the plurality of sidewall supports includ- ing a plurality of support braces extending in a substantially horizontal position, the container in- cluding a container frame structurally arranged to support another container when filled with large volumes of proppant and when positioned in a

. Case: 19-1778 Document: 64 Page: 6 Filed: 07/23/2021

vertically stacked arrangement thereabove, and the large volumes are at least 30,000 pounds; ramps downwardly inclined and extending in- wardly from the sidewalls to direct the proppant to- ward the outlet when the proppant is stored therein, a plurality of support members attached to a bottom surface of the ramps and extending down- wardly toward the bottom, and at least one support brace of the plurality of support braces being posi- tioned vertically higher than the ramps; a plurality of support members attached to a bot- tom surface of the ramps and extending down- wardly toward the bottom; and a hatch positioned proximate the outlet, the hatch being moveable between open and closed positions. ’626 patent, col. 11, l. 52–col. 12, l. 16. Other independent claims are directed to the system of multiple containers, an additional conveyor, and the method of delivering large quantities of proppant to the fracking site. Dependent claims add additional limita- tions. I Procedural Issues -- Issue Preclusion PropX filed IPR petitions against the ’626 patent and its continuation, the ’929 patent, and the same panel of the PTAB conducted separate trials. The Board first consid- ered the ’626 patent, and in a Final Written Decision dated February 14, 2019, the Board held all the challenged claims of the ’626 patent unpatentable on the ground of ob- viousness. Board Op. at 52. Then, 27 days later, the PTAB issued a Final Written Decision on the continuation ’929 patent and held that claims 4, 7, 10, 12, 15, 18, and 19, directed to the same claim limitations at issue in the ’626 patent, were patentable. Proppant Express Invs., LLC v. Case: 19-1778 Document: 64 Page: 7 Filed: 07/23/2021

OREN TECHNOLOGIES, LLC v. 7 PROPPANT EXPRESS INVESTMENTS

Oren Techs., LLC, No. IPR2017-02103, Paper 100 (P.T.A.B. Mar. 13, 2019) (“’929 Board Op.”). Both sides, in their briefs filed on this appeal, recognized that the ’626 and ’929 patent decisions were in direct conflict and could not be rec- onciled. PropX advised the court that it had requested PTAB reconsideration of the ’929 decision. While the present appeal was awaiting decision, the PTAB reconsidered its ’929 holding.

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