Power Integrations, Inc. v. Fairchild Semiconductor International, Inc.

843 F.3d 1315, 121 U.S.P.Q. 2d (BNA) 1087, 2016 U.S. App. LEXIS 21975, 2016 WL 7187430
CourtCourt of Appeals for the Federal Circuit
DecidedDecember 12, 2016
Docket2015-1329; 2015-1388
StatusPublished
Cited by57 cases

This text of 843 F.3d 1315 (Power Integrations, Inc. v. Fairchild Semiconductor International, Inc.) 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.

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Power Integrations, Inc. v. Fairchild Semiconductor International, Inc., 843 F.3d 1315, 121 U.S.P.Q. 2d (BNA) 1087, 2016 U.S. App. LEXIS 21975, 2016 WL 7187430 (Fed. Cir. 2016).

Opinion

CHEN, Circuit Judge.

This appeal follows a ten-day jury trial in the District of Delaware that resulted in *1319 verdicts that (1) Power Integrations Inc.’s U.S. Patent Nos. 7,110,270 and 7,834,605 were neither anticipated nor obvious and were not directly or indirectly infringed by Fairchild Semiconductor International, Inc., Fairchild Semiconductor Corporation, and Fairchild (Taiwan) Corporation (collectively, Fairchild); (2) Power Integrations’ U.S. Patent Nos. 6,107,851 and 6,249,876 were not anticipated and were directly and indirectly infringed by Fairchild; (3) Fair-child’s U.S. Patent No. 7,259,972 was not obvious, was infringed by Power Integrations under the doctrine of equivalents, but was not literally infringed or indirectly infringed by Power Integrations; and (4) Fairchild’s U.S. Patent No. 7,352,595 was not anticipated and was not infringed by Power Integrations. Following trial, the district court granted Power Integrations’ motion for judgment as a matter of law (JMOL) that Fairchild directly infringed the ’605 patent, but denied the parties’ other JMOL motions and motions for a new trial. Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., 935 F.Supp.2d 747 (D. Del. 2013) (JMOL Decision). The court subsequently granted Power Integrations’ motion for a permanent injunction and denied Fairchild’s motion for a permanent injunction. Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., No. 1:08-cv-00309-LPS, 2014 WL 2960035 (D. Del. June 30, 2014) (Permanent Injunction Order); Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., No. 1:08-cv-00309-LPS (D. Del. June 16, 2014) (Dkt. No. 790). The district court entered final judgment as to liability on January 13, 2015. Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., No. 1:08-cv-00309-LPS, 2015 WL 167375 (D. Del. Jan. 13, 2015) (Dkt. No. 819). All damages claims were bifurcated by the district court and remain pending.

Fairchild appeals and Power Integrations cross-appeals various decisions from the district court. 1 We hold as follows:

• The jury’s verdict that the asserted claims of the ’876 patent were not anticipated by Martin 2 or Wang 3 is affirmed.
• Because the district court’s jury instruction incorrectly stated the law on inducement, the jury’s verdict that Fairchild induced infringement of the asserted claims of the ’876 and ’851 patents is vacated.
• The jury’s verdict that the asserted claims of the ’605 patent were not anticipated by Maige 4 is reversed.
• The district court’s construction that the asserted claims of the ’972 patent require “sampling a voltage from the auxiliary winding of the transformer when the transformer is discharging” is affirmed.
• The jury’s verdict that the asserted claims of the ’972 patent would not have been obvious in view of Majid 5 is affirmed.
• The jury’s verdict that Power Integrations infringed the asserted claims *1320 of the ’972 patent under the doctrine of equivalents is reversed.
• The district court’s grant of Power . Integrations’ motion for a permanent injunction is vacated in view of the above holdings.
• The district court’s denial of Fair-child’s motion for a permanent injunction is moot in view of the above holdings.

In sum, we affirm-in-part, reverse-in-part, and vacate-in-part the final judgment entered by the district court and remand for further proceedings.

Background

Power Integrations and Fairchild are direct competitors in the power supply controller chip market. They have engaged in a long-running and multi-fronted patent dispute involving actions in at least the United States District Courts for the District of Delaware 6 and the Northern District of California, 7 as well as the United States Patent and Trademark Office Patent Tidal and Appeal Board. 8 We are not unfamiliar with the parties or their disputes. In fact, we have heard appeals of at least two decisions that involved two of the very patents at issue here. See Power Integrations, Inc. v. Lee, 797 F.3d 1318 (Fed. Cir. 2015) (vacating Patent Board’s decision that claims of the ’876 patent were unpatentable as anticipated); Power Integrations, Inc. v. Fairchild Semiconductor Int’l, Inc., 711 F.3d 1348 (Fed. Cir. 2013) (reviewing jury verdict on ’851 and ’876 patents, among others).

Power supplies are ubiquitous in modern society. Anyone who has purchased an electronic device in recent times — whether a cellular phone, computer, television, or the like — is familiar with the different cords and plugs provided to power and/or charge those devices. Somewhere in the cord/plug combination resides a power supply. The power supply is often integrated into the plug itself, as' is the case with many cellular phones. In other configurations, the power supply resides in a standalone module, as with many laptop computers.

*1321 [[Image here]]

Figure 1: Power supply integrated into plug

[[Image here]]

Figure 2: Power supply as a standalone module

The power supply does more than simply allow power to flow from a wall outlet to the connected electronic device. Power supplies serve the integral role of converting the power supplied by the wall outlet into a form the electronic device can use. The power a wall outlet provides is of a relatively high voltage and uses alternating current (AC). In contrast, electronic devices generally require a relatively low voltage and direct current (DC). These devices would likely be damaged if exposed to high-voltage AC power. Power supplies convert the high-voltage AC power supplied by the wall outlet into the low-voltage DC power required by the electronic device. 9

The controller chip is the “brains” of the power supply. It ensures that the power supply functions properly. Over time, controller chips have evolved to incorporate new features that make power supplies smaller, cheaper, and more efficient. The patents at issue in this appeal relate to some of the features that have been incorporated into modern controller chips.

I. The ’851 and ’876 Patents

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843 F.3d 1315, 121 U.S.P.Q. 2d (BNA) 1087, 2016 U.S. App. LEXIS 21975, 2016 WL 7187430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/power-integrations-inc-v-fairchild-semiconductor-international-inc-cafc-2016.