Stewart-Warner Corporation v. City of Pontiac, Michigan and American Sign & Indicator Corp.

767 F.2d 1563, 226 U.S.P.Q. (BNA) 676, 1985 U.S. App. LEXIS 15037
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 18, 1985
DocketAppeal 84-1026
StatusPublished
Cited by31 cases

This text of 767 F.2d 1563 (Stewart-Warner Corporation v. City of Pontiac, Michigan and American Sign & Indicator 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
Stewart-Warner Corporation v. City of Pontiac, Michigan and American Sign & Indicator Corp., 767 F.2d 1563, 226 U.S.P.Q. (BNA) 676, 1985 U.S. App. LEXIS 15037 (Fed. Cir. 1985).

Opinions

PAULINE NEWMAN, Circuit Judge.

Appeal from final judgment of the United States District Court for the Eastern District of Michigan, holding that claims 1-4 of U.S. Patent No. 3,941,926 (the ’926 patent), invented by Gregory Slobodzian, Stanley Zielinski, and Robert Payne, and assigned to Stewart-Warner Corporation, are invalid under 35 U.S.C. § 103 and are not infringed. We affirm the holding of noninfringement and reverse the holding of invalidity.

The Invention

The claimed invention is a display system such as is used for large scoreboards in sports arenas. The display is a moving video image, of visual quality described as comparable to that of a black and white television screen. In brief, the system receives a television video signal and converts it from analog form to an encoded digital form, stores the encoded signals for a complete video frame in a memory under [1565]*1565computer control, and uses these digital signals to control the light intensity of a large number of incandescent lamps, ten thousand and more, arranged in a display matrix such as on a stadium scoreboard.

In accordance with the teachings of, the ’926 patent, this system is capable of displaying at least eight levels of light intensity (shades of gray) on the scoreboard; any individual lamp can be on, off, or have six or more intermediate levels of light intensity. The result is a picture of higher quality, according to the record, than was theretofore available. The system is claimed, in the broadest claim, as follows:

1. A system for displaying images on a plurality of visual display devices operated by application of a periodic power waveform, including means for applying said periodic power waveform to said system, said display devices arranged in modules to form a full display matrix capable of at least eight levels of light intensity comprising:
a. a source of video signals;
b. a video to digital converter producing digitally coded signals representing said video signals;
c. (means) for receiving and storing a full matrix of said digital signals;
d. means for extracting the stored digital signals;
e. means .(for decoding the transmitted signals only during selected intervals on said power waveform to produce intensity level information for initiating operation of selected ones of said display devices at each interval, each of said selected intervals corresponding to a display device turn on point for a different level of light intensity;.-. .
f. (means jor transmitting the extracted signals to said decoding means;
g. means for applying the decoded intensity level information to said display devices; and
h. clock means' for operating said extracting means, transmitting means, decoding means and applying means on a real time-.basis at a data transmission rate sufficiently greater than the frequency of the periodic power waveform that said applying means completely applies the decoded intensity level information to the selected display devices during the occurrence of each power waveform interval whereby each display device is energized at the proper interval on the power waveform to accurately reproduce the applied intensity level information.

Claims 2 through 4 are dependent claims, adding various limitations to clauses cord of claim 1.

Stewart-Warner’s research into and design of scoreboard displays apparently covers many years. An earlier system for the display of moving video images on stadium scoreboards is described in Stewart-Warner’s U.S. Patent No. 4,009,335, inventors Payne, Slobodzian, Zielinski, and Ravanesi (the ’335 patent), which the record describes as a forerunner of the ’926 invention. As an improvement over still earlier display systems, most of which required the use of direct current to obtain variations in illumination, the ’335 patent teaches a way to use digital signals and alternating current to turn specific light bulbs on and off in a way that produces up to four shades of gray on the display. The ’335 system employs a video-to-digital converter to scan video signals received and to analyze the light intensities which they represent at a given time frame. Each video time frame is assigned one of four light intensity values, and this information is converted into digital form. Each light bulb has a separate address on the scoreboard; a computer receives corresponding addressing information with each encoded digital signal, so that the desired intensity is transmitted to the proper location on the display matrix. The system uses a semiconductor switch called a triac to turn the light bulbs on and off rapidly for a portion of the alternating current power cycle. The ’335 patent teaches the circuitry to turn the light bulbs on and off at intervals of a full cycle, a half cycle, a quarter cycle, [1566]*1566or not at all, and uses a threephase alternating current power supply. The number of data signals that are transmitted during each half cycle of the power waveform determines which one of the four shades of gray of which the system is capable will be displayed on the scoreboard.

The invention . of the ’335 patent was embodied in a scoreboard installed by Stewart-Warner at the Kansas City Chiefs’ Arrowhead Stadium in 1972. This scoreboard was held in prior litigation to have been “on sale” more than one year before the filing dates of both the ’335 and ’926 patents, and served on this basis to invalidate the ’335 patent and, until reversed on appeal, the ’926 patent. The scoreboard’s continuing effect on the validity and interpretation of the claims of the ’926 patent is the core of the case at bar.

In 1973 Stewart-Warner’s engineers began to investigate the development of a system that could display eight or more shades of gray in order to achieve a more realistic and higher quality image than was produced at Kansas City. If it were attempted to use the system of the ’335 patent, as in the Kansas City scoreboard, to transmit eight levels of illumination, the phase data would overlap and some data intended for the light bulbs of one phase would instead go to the light bulbs of another phase, thus blurring the image. The invention disclosed and claimed in the ’926 patent solved this problem, and enabled a display system that produces a moving video image in eight and more shades of gray.

History of the Litigation

The first phase of this litigation began on September 13, 1979, when Stewart-Warner sued the City of Pontiac, Michigan and the American Sign and Indicator Corporation (AS & I) in the District Court for the Eastern District of Michigan, asserting infringement of four patents. Pursuant to stipulation the complaint was dismissed with respect to two patents, and in July 1981 trial was held involving the ’335 and ’926 patents. At the conclusion of that trial the district court granted appellees’ motion for a directed verdict that both the ’335 patent and the ’926 patent were invalid for violation of the “on sale” prohibition of 35 U.S.C. § 102(b), because of their embodiment in the Kansas City scoreboard. Stewart-Warner Corp. v. City of Pontiac, 213 USPQ 453, 461 (E.D.Mich.

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767 F.2d 1563, 226 U.S.P.Q. (BNA) 676, 1985 U.S. App. LEXIS 15037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stewart-warner-corporation-v-city-of-pontiac-michigan-and-american-sign-cafc-1985.