Semitool, Inc. v. Dynamic Micro Systems Semiconductory Equipment Gmbh

444 F.3d 1337, 78 U.S.P.Q. 2d (BNA) 1438, 2006 U.S. App. LEXIS 8296
CourtCourt of Appeals for the Federal Circuit
DecidedApril 6, 2006
Docket2005-1299
StatusPublished
Cited by7 cases

This text of 444 F.3d 1337 (Semitool, Inc. v. Dynamic Micro Systems Semiconductory Equipment Gmbh) 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
Semitool, Inc. v. Dynamic Micro Systems Semiconductory Equipment Gmbh, 444 F.3d 1337, 78 U.S.P.Q. 2d (BNA) 1438, 2006 U.S. App. LEXIS 8296 (Fed. Cir. 2006).

Opinion

PROST, Circuit Judge.

Semitool, Inc. and Dynamic Micro Systems Semiconductor Equipment GmbH (“DMS”) both manufacture and sell competing semiconductor wafer carrier cleaning systems. In 2001, Semitool sued DMS alleging that DMS’s Model 300 and 310 cleaning devices infringed Semitool’s patents. The parties entered into a settlement-agreement that provided for a stipulated injunction with regard to DMS’s Model 300 and 310 and to any colorable variants. Both the agreement and the injunction explicitly retained the district court’s jurisdiction over the future enforcement of the agreement and the injunction. Subsequently, DMS produced a new device called the Tornado, which Semitool claims violates their settlement agreement and the injunction by literally infringing the patent claims. The district court denied the motion to enforce the permanent injunction and the settlement agreement and instead granted DMS’s cross-motion for summary judgment of non-infringement. As the district court properly granted the cross-motion for summary judgment of non-infringement, we affirm.

I.

On October 8, 1996, Semitool, Inc. was issued United States Patent No. 5,562,113 (“the ’113 patent”). The ’113 patent is entitled, “Centrifugal Wafer Carrier Cleaning Apparatus” and as the title suggests, the ’113 patent describes a “cleaning apparatus for rinsing and drying carriers used to hold and process semiconductor wafers, substrates, flat panel displays and similar articles.” ’113 patent, col. 1, 11. 10-13. Semitool also filed continuation patent applications based on the T13 patent application. From these continuation applications, Semitool received two more patents: United States Patent No. 5,738,128 (“the ’128 patent”) which, like the ’113 patent, claimed a centrifugal wafer carrier apparatus and United States Patent No. 5,972,127 (“the ’127 patent”), which claimed a method of cleaning and drying wafer carriers.

As described in the 127 patent, the processing of semiconductor wafers and substrates is very sensitive to problems of contamination.... [I]t is necessary to maintain a high level of cleanliness during all or nearly all stages of production.
Semiconductor wafers, substrates, photomasks, flat panel displays and other similar low-contamination wafer products are also typically processed in batches.... Batch processing of this type almost always utilizes some type of carrier or carriers to hold the thin wafer-like materials being processed.

127 patent, col. 1, 11. 25-42. As a result, specialized cleaning machines are needed to maintain the cleanliness of the carriers. *1340 These machines both wash and dry the carriers. Centrifugal drying machines as described in the ’113, ’128 and T27 patents are one type of these specialized cleaning machines. They operate by spinning the carriers at high speeds whereby cleaning solvents are readily spun off the carriers and, furthermore, the induced airflow dries the carriers by removing any residual solvent.

DMS manufactured and sold carrier-cleaning machines. In prior litigation, Semitool sued DMS for patent infringement alleging that two DMS products, the Model 300 and the Model 310 wafer carrier cleaners, infringed the claims of the ’113,-’128, and ’127 patents. During that proceeding, the district court construed the claims of the patents in a claim construction order. The district court granted Semitool’s motion for summary judgment of infringement as to the Model 300 but denied the motion as to the Model 310. See Semitool, Inc. v. Dynamic Micro Sys. Semiconductor Equip. GmBH, No. C 01-01391, 2002 U.S. Dist. LEXIS 23050 (N.D.Cal. Sept. 5, 2002). Thereafter, the parties entered a settlement agreement.

In the settlement agreement, DMS agreed not to make, use, offer to sell, or import any infringing device. As part of the agreement, the parties stipulated to enter into a permanent injunction barring DMS from infringing any claims of Semi-tool’s patents. Both the agreement and the injunction explicitly retained the district court’s jurisdiction to enforce the agreement or the injunction. The agreement further specified that DMS’s Model 300 and Model 310, as configured, admittedly infringed the patents and so would any device that is no more than a colorable variant of the Model 300 and Model 310. The settlement agreement also stated how to construe Semitool’s patent claims in the event of any future infringement determinations:

The Court’s construction of phrases and terms used in the claims of the Semitool Patents, as specified in the Court’s Final Claim Construction Order dated June 17, 2002, shall be used in determining whether DMS is infringing any claims of the Semitool Patents in violation of this Agreement or the Stipulated Permanent Injunction.

See Semitool, Inc. v. Dynamic Micro Sys. Semiconductor Equip. GmBH, No. C01-01391, 2005 WL 350954, *3 (N.D.Cal. Feb. 14, 2005) (“Semitool Order”).

DMS has developed a new carrier cleaning system called the Tornado. On July 16, 2004, DMS filed an action seeking a declaratory judgment that its Tornado system did not infringe any of Semitool’s patent claims. On September 21, 2004, the parties stipulated to dismiss the declaratory judgment complaint and instead the district court reopened the original patent infringement litigation. Semitool sought to enforce the injunction and to enforce the settlement agreement arguing that the Tornado system literally infringed its patents. DMS argued that the Tornado is colorably different from its previous models and does not infringe the patent claims, and therefore it does not violate the settlement agreement or the terms of the injunction.

The district court considered the differences between the Tornado system, the patent claims, and the previous infringing models sold by DMS and concluded that the Tornado was colorably different from the infringing models and did not infringe Semitool’s patents. It granted DMS’s cross-motion for summary judgment of non-infringement and therefore denied Semitool’s motion to enforce the permanent injunction and settlement agreement. Id. 2005 WL 350954, *-, slip op. at 9.

On March 15, 2005, Semitool appealed the district court’s decision to this court. *1341 We have jurisdiction under 28 U.S.C. § 1295(a)(1).

II.

“Summary judgment is appropriate when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.” Baxter Int’l, Inc. v. COBE Labs., Inc., 88 F.3d 1054, 1057 (Fed.Cir.1996) (citing Fed.R.Civ.P. 56(c); Johnston v. IVAC Corp., 885 F.2d 1574, 1576-77 (Fed.Cir.1989)).

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444 F.3d 1337, 78 U.S.P.Q. 2d (BNA) 1438, 2006 U.S. App. LEXIS 8296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/semitool-inc-v-dynamic-micro-systems-semiconductory-equipment-gmbh-cafc-2006.