Sonix Technology Co., Ltd. v. Publications International

844 F.3d 1370, 121 U.S.P.Q. 2d (BNA) 1247, 2017 WL 56321, 2017 U.S. App. LEXIS 158
CourtCourt of Appeals for the Federal Circuit
DecidedJanuary 5, 2017
Docket2016-1449
StatusPublished
Cited by212 cases

This text of 844 F.3d 1370 (Sonix Technology Co., Ltd. v. Publications International) 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
Sonix Technology Co., Ltd. v. Publications International, 844 F.3d 1370, 121 U.S.P.Q. 2d (BNA) 1247, 2017 WL 56321, 2017 U.S. App. LEXIS 158 (Fed. Cir. 2017).

Opinion

LOURIE, Circuit Judge.

Sonix Technology Co., Ltd. (“Sonix”) appeals from the district court’s grant of summary judgment following its determination that claims 9, 25, 35-36, 52-55, 57-60, 62-64, 66, 68, 71-77, 79-82, and 85-90 (“the asserted claims”) of Sonix’s U.S. Patent 7,328,845 (“the ’845 patent”) are invalid as indefinite. See Sonix Tech. Co. v. Publ’ns. Int’l, Ltd., No. 13-cv-2082, 2015 WL 8153600, at *9-17 (N.D. Ill. Dec. 8. 2015) (“Opinion”). Specifically, the district court concluded that the term “visually negligible” rendered the asserted claims indefinite under 35 U.S.C. § 112 ¶ 2. 1 For the reasons that follow, we reverse the determination of indefiniteness and hence the summary judgment of invalidity.

Background

Sonix owns the ’845 patent, which describes a system and method for using a “graphical indicator” (e.g., a matrix of small dots) to encode information on the surface of an object. See ’845 patent, col. 3 11. 6-43. The surface may feature additional information as well; for example, illustrations or icons in a children’s book. Id. col. 7 11. 1-6. The invention also includes an “optical device” that can read the graphical indicator and output further information. Id. col. 7 11. 18-32. Figure 5 illustrates an example:

*1372 [[Image here]]

Id. fig.5. In this example, an icon showing a person riding a horse (511) is printed on the page of a book (51). Id. col. 7 11. 1-10. The graphical indicator (512) is printed in the same area as the icon. Id. col. 7 11. 18-21, The optical device (311) captures an image that includes the graphical indica-toi\ Id. col. 7 11. 21-24. The processing device (312) retrieves the indicator from the image and outputs additional information. Id. In this particular example, holding the optical device over the horse icon could cause the device to output “audio information, such as pronunciations of horse in English.” Id. col. 7 11. 27-32.

Of course, encoding information on the surface of an object is not new. The ’845 patent admits that information has been recorded on the surface of objects “[d]at-ing back to ancient time[s],” id. col. 1 11. 15-16, and lists a bar code as a “conventional” example of a graphical indicator, id. col. 9 11. 46-57. The ’845 patent purports to improve on conventional methods by rendering the graphical indicator “visually negligible.” Id. col. 3 11. 5-11. The patent uses a book cover to illustrate, the difference between a conventional bar code and the claimed indicator:

*1373 [[Image here]]

Id. fígs.l2(A) & 12(B). The graphical indicator (10002) in figure 12(B) stores the same information as the bar code (10001) in figure 12(A), but in a manner that does not “interfere with the other main informar tion on the surface.” Id. col. 9 11. 47-57.

The “[e]xemplary [d]esign,” id. col. 3 1. 5, of the claimed indicator “includes multiple graphical micro-units arranged in a layout.” Id. col, 3 11. 14-15. In one embodiment the micro-units are dots, arranged in a matrix. Id. col. 3 11. 15-25. Each cell in the matrix either contains or does not contain a dot, resulting in a unique pattern that can store information. Id. col. 3 11. 38-30, col. 411.13-41.

The written description also discloses differentiability, brightness, and homogeneity “requirements for the graphical indicators being negligible to human eyes.” Id. col. 4 11. 60-61. First, the indicator must be so small that “human eyes cannot differentiate one graphical indicator from others.” Id. col. 4 11. 61-63. The patent indicates that “[f]or best result, the graphical micro-unit must be so tiny that only a microscope apparatus can detect it.” Id. col. 3 11. 24-25. Second, the patent advises that the number of micro-units should be reduced based on “the size of the graphical micro-unit, the pitch between micro-unit, and the desired visual effect,” so that they “have little influence on the brightness of the surface of the object.” Id. col. 4 1. 67-col. 5 1. 1. Finally, the “number of graphical micro-units of each graphical indicator” should be “substantially equal to each other,” so that “the graphical indicators look more homogenous to human eyes and become invisible to human eyes.” Id. col. 5 11. 1-5.

The written description also gives two examples of visually-negligible indicators. In the first, each square centimeter contains 3,000 matrix cells, of which less than 70% contain graphical micro-units, and where each micro-unit occupies less than 80% of the cell. Id. col. 5 11. 6-10. The second is similar, but requires each square centimeter to include 6,000 cells. Id. col. 5 11.11-15.

In 2010, Sonix alleged that children’s books using dot pattern technology produced by GeneralPlus, a Taiwanese company, infringed the ’845 patent. In response, *1374 SunPlus Technology Co. Ltd. (“SunPlus”), GeneralPlus’s parent company, requested ex parte reexamination of the ’845 patent (“the first reexamination”) by the U.S. Patent and Trademark Office (“USPTO”). On December 27, 2011, the USPTO confirmed the patentability of, inter alia, asserted claims 9, 25, and 35-86, and allowed new, and now asserted, claims 52-55, 57-60, 62-64, 66, 68, 71-77, 79-82, and 85-90, among others. J.A. 94-96.

Less than one month later, GeneralPlus requested another ex parte reexamination (“the second reexamination”). J.A. 1937. One of the central disputed issues during this second reexamination was whether the combination of U.S. Patent 5,416,312 (“La-moure”) and U.S. Patent 5,329,107 (“Prid-dy”) would have led to a visually-negligible indicator, as the examiner initially rejected all pending claims over that combination. See, e.g., J.A. 2328-31. Sonix responded to that rejection with a declaration from Ser-jer Serjersen (“Serjersen”), an expert with more than thirty years of experience. J.A, 2337, Serjersen declared that he created graphical indicators using the processes described by the ’845 patent and by the cited references, and determined that only the indicator produced using the process of the ’845 patent was visually negligible. J.A. 2338-44, 5313-25. The examiner confirmed the patentability of the asserted claims on the basis of Serjersen’s declaration, specifically indicating that the combination of cited references did not disclose a visually-negligible graphical indicator. J.A. 2362-65.

In 2013, Sonix alleged that Publications International, Ltd., SD-X Interactive, Inc., Encyclopedia Brittannica, Inc., and Herff Jones, Inc. (collectively, “Appellees”) infringed the asserted claims.

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844 F.3d 1370, 121 U.S.P.Q. 2d (BNA) 1247, 2017 WL 56321, 2017 U.S. App. LEXIS 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sonix-technology-co-ltd-v-publications-international-cafc-2017.