Sunrace Roots Enterprise Co., Ltd. And Sun Victory Trading Co., Inc. v. Sram Corporation

336 F.3d 1298, 67 U.S.P.Q. 2d (BNA) 1438, 2003 U.S. App. LEXIS 14338, 2003 WL 21665253
CourtCourt of Appeals for the Federal Circuit
DecidedJuly 17, 2003
Docket02-1524
StatusPublished
Cited by120 cases

This text of 336 F.3d 1298 (Sunrace Roots Enterprise Co., Ltd. And Sun Victory Trading Co., Inc. v. Sram Corporation) 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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Sunrace Roots Enterprise Co., Ltd. And Sun Victory Trading Co., Inc. v. Sram Corporation, 336 F.3d 1298, 67 U.S.P.Q. 2d (BNA) 1438, 2003 U.S. App. LEXIS 14338, 2003 WL 21665253 (Fed. Cir. 2003).

Opinion

BRYSON, Circuit Judge.

SRAM Corporation appeals from an order of the United States District Court for the Northern District of California granting SunRace Roots Enterprise Co., Ltd., and Sun Victory Trading Co., Inc., (collectively “SunRace”) a declaratory judgment of noninfringement of SRAM’s patent relating to bicycle gear-shifting devices. Because we conclude that the district court erred in construing the term “shift actuator,” as used in SRAM’s patent, we reverse and remand.

I ,

SRAM owns U.S. Patent No. 4,900,291 (“the '291 patent”) and produces shift actuators known as “twist-shifters” that allow a bicycle rider to change gears by twisting a portion of the handlebar. A bicycle gear-shifting system typically includes a shifter (or “shift actuator”) at or near the handlebars, a derailleur to control the chain, and a control cable that connects the shifter and the derailleur.

The '291 patent contains both method and apparatus claims related to gear-shifting on multi-speed bicycles through the use of a shift actuator that is designed to effect precise control over the movement of the derailleur. In a system that uses indexed shifting, the shift actuator moves a discrete amount to cause the derailleur to move the bicycle chain the precise distance necessary to effect a gear shift. One way that indexed shifting can be implemented in a twist-shifter is through the use of a cam mechanism. In such a system, the cylindrical cam member fits over the handlebar and the cam operating face (consisting of peaks and valleys) interacts with a cam pin as the shift actuator is rotated. The apparatus claims of the '291 patent include the limitation of a “handgrip shift actuator cam means” or a “handgrip shift actuator indexing cam means,” while the method claims, including claim 16, employ the term “shift actuator” without reference to a cam.

The written description of the '291 patent recites the objects of the invention. They include providing a derailleur shifting system with a shift actuator that is rotatably mounted on the handlebar so that the bicycle rider need not remove his hands from the handlebar to shift gears; *1300 providing a derailleur shifting system having a handgrip shift actuator embodying a generally helical cam that defines the derailleur mechanism movements; providing a derailleur shifting system that compensates for “cumulative lost motion” (the amount the shifter must move in order to take up any slack in the system before the derailleur begins to move) in the derailleur mechanism and its cable to enable precise index shifting; and providing a derailleur shifting system that produces an optimum amount of overshift when down-shifting, without requiring manual input to define that overshift. Overshifting is “movement of the chain beyond the destination sprocket, and then back into alignment with the destination sprocket,” '291 patent, col. 1,11. 52-55; in essence, the cable is moved farther than necessary so that the derailleur is more easily aligned with the appropriate sprocket during down-shifting.

The written description states that “Applicant has found that for accurate index shifting, substantially all of th[e] cumulative lost motion must first be taken up at the shift actuator before the actual shift increment of travel between adjacent sprockets is applied during a down-shifting event. Applicant is not aware of any specific consideration of this problem in the prior art.” '291 patent, col. 2, 11. 61-67. Original claim 16 recited a method for down-shifting from a smaller sprocket to a larger sprocket, in which the movement of the shift actuator first takes up the cumulative lost motion and then transfers the chain to the larger sprocket.

A ■

Upon petitions from SRAM and a competitor, Shimano, Inc., the Patent and Trademark Office (“PTO”) reexamined the '291 patent. SRAM requested reexamination after prior art not considered during the initial prosecution of the '291 patent was raised in litigation with Shimano. In a June 10,1997, office action, the examiner initially deemed claims 5 through 26 patentable, but rejected claims 1 through 4. SRAM then submitted an amendment in which it sought to add claims 27 and 28, which were dependent on claim 16. Claim 27 added the limitation “said shift actuator being rotatably mounted on the bicycle handlebar generally coaxially of the handlebar and engaged over the outside of the handlebar” and specified that the actuator was rotated (as opposed to moved) to take up the cumulative lost motion. Claim 28, dependent on claim 27, added the limitation “said shift actuator being mounted inboard of a fixed handgrip on an end of the handlebar.” In October 1997, the PTO issued a Notice of Intent to Issue Reexamination Certificate in which it stated that it had found claims 16, 24, 27, and 28 to be patentable.

Meanwhile, Shimano filed its own request for reexamination. The PTO then consolidated the proceedings for the two reexamination requests. Shimano’s request alleged that original claim 16

is extremely broad and can cover even conventional lever style shifters. All claim 16 requires is any kind of bicycle shifting mechanism which takes up slack in the device and then moves the derailleur from one sprocket to another. It is not even necessary to have a handlebar mounted or twist-grip shifter. That requirement does not arise until claim 24 below. 1

In response, SRAM agreed that original claim 16 “does not require a handlebar mounted or twist-grip shifter.” SRAM did not argue that the use of a cam distin *1301 guished claim 16 from the prior art. Rather, SRAM distinguished the prior art references based on the fact that they disclosed taking up slack in or during the first climb or downshift. When discussing the apparatus claims that included a “handgrip shift actuator cam means,” SRAM took a different approach, arguing that the prior art references did not disclose the “special cam configuration spelled out in the claim[s].”

In January 1999, the examiner issued an office action rejecting claims 4-10, 14-20, and 24-28. The examiner found claim 16 to be obvious in light of the French Huret Patent 1,499,803. SRAM then amended claim 16, adding the limitation that the shift actuator is “rotatably mounted on a bicycle handlebar generally coaxially of the handlebar, said shift actuator being mounted on and engaged over an outside of the handlebar inboard of a fixed handgrip on an end of the handlebar.” SRAM requested that claims 27 and 28 be withdrawn, noting that “claim 16 is amended to include the subject matter of claims 27 and 28.” SRAM maintained its request that the PTO confirm the remaining claims, including claim 24. With respect to claim 16, SRAM argued, inter alia, that Huret was a defective reference and did not disclose a shift actuator mounted inboard of a fixed handgrip on the handlebar. In the context of claim 5, SRAM argued that Huret did not mention compensating for lost motion at all.

The patent emerged from reexamination in 2000. Claims 1-3 were cancelled; claims 4, 5, 9-14, 16, 17, 19, and 21-23 were ruled patentable as amended; and dependent claims 6-8, 15, 18, 20, and 24 were determined to be patentable without amendment.

Claim 16, as found in the reexamination certificate, provides:

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336 F.3d 1298, 67 U.S.P.Q. 2d (BNA) 1438, 2003 U.S. App. LEXIS 14338, 2003 WL 21665253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunrace-roots-enterprise-co-ltd-and-sun-victory-trading-co-inc-v-cafc-2003.