Transtex Inc. v. Vidal

CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 3, 2023
Docket20-1140
StatusUnpublished

This text of Transtex Inc. v. Vidal (Transtex Inc. v. Vidal) 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
Transtex Inc. v. Vidal, (Fed. Cir. 2023).

Opinion

Case: 20-1140 Document: 101 Page: 1 Filed: 02/03/2023

NOTE: This disposition is nonprecedential.

United States Court of Appeals for the Federal Circuit ______________________

TRANSTEX INC., FKA TRANSTEX COMPOSITE INC., Appellant

v.

KATHERINE K. VIDAL, UNDER SECRETARY OF COMMERCE FOR INTELLECTUAL PROPERTY AND DIRECTOR OF THE UNITED STATES PATENT AND TRADEMARK OFFICE, Intervenor ______________________

2020-1140 ______________________

Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2018- 00737. ______________________

Decided: February 3, 2023 ______________________

JOHN CARACAPPA, Steptoe & Johnson, LLP, Washing- ton, DC, for appellant. Also represented by SCOTT RICHEY, JOHN WILLIAM TOTH; ROBERT KAPPERS, Chicago, IL.

MAI-TRANG DUC DANG, Office of the Solicitor, United States Patent and Trademark Office, Alexandria, VA, for Case: 20-1140 Document: 101 Page: 2 Filed: 02/03/2023

intervenor. Also represented by PETER J. AYERS, THOMAS W. KRAUSE, AMY J. NELSON, FARHEENA YASMEEN RASHEED, MARY BETH WALKER. ______________________

Before PROST 1, SCHALL, and REYNA, Circuit Judges. Opinion for the court filed by Circuit Judge PROST. Dissenting opinion filed by Circuit Judge SCHALL. PROST, Circuit Judge. The Patent Trial and Appeal Board (“Board”) found claims 1–9, 19, and 20 of U.S. Patent No. 7,942,471 (“the ’471 patent”) unpatentable as obvious. WABCO Hold- ings Inc. v. Transtex Composites Inc., No. IPR2018-00737, Paper 30, 2019 WL 4677106 (P.T.A.B. Sept. 24, 2019) (“’471 Final Written Decision”). Patent owner, Transtex, Inc. (“Transtex”), appeals. 2 We affirm for the reasons set forth below. BACKGROUND WABCO Holdings, Inc. and Laydon Composites Ltd. (collectively, “WABCO”) petitioned for inter partes review of claims 1–9, 19, and 20 of the ’471 patent and claims 1–20 of U.S. Patent No. 8,449,017 (“the ’017 patent”). The Board found all challenged claims of the ’471 patent and claims 1, 5–11, and 15–19 of the ’017 patent unpatentable as obvious in light of Layfield and Rinard. 3 ’471 Final Written Deci- sion, 2019 WL 4677106, at *14; WABCO Holdings Inc. v.

1 Circuit Judge Sharon Prost vacated the position of Chief Judge on May 21, 2021. 2 Transtex was formerly known as Transtex Compo- site Inc., so the Board’s final written decision caption re- flects that name. 3 U.S. Patent No. 7,578,541 (“Layfield”); U.S. Patent No. 5,280,990 (“Rinard”). Case: 20-1140 Document: 101 Page: 3 Filed: 02/03/2023

TRANSTEX INC. v. VIDAL 3

Transtex Composites Inc., No. IPR2018-01319, Paper 25, at 65 (Jan. 10, 2020) (“’017 Final Written Decision”). Transtex appealed both Board decisions. Only the ’471 Final Written Decision is at issue here, but a brief discussion of the com- panion case is warranted given the similarities between the challenged claims and the issues raised. 4 I As Transtex notes, the ’017 and ’471 patents are re- lated and have substantially similar specifications. Appel- lant’s Br. 1 n.1. Both patents generally relate to aerodynamic trailer skirts. And their specifications ex- plain that trailer skirts are used to “reduce the aerody- namic air drag and improve fuel efficiency” but are typically prone to damage (breaking and bending such that they no longer maintain an aerodynamic shape) when they encounter foreign objects in the road. ’471 patent col. 1 ll. 20–45; ’017 patent col. 1 ll. 30–55. Both patents state that “[t]here is a need in the art for . . . a resilient skirt assem- bly.” ’471 patent col. 1 ll. 47–49; ’017 patent col. 1 ll. 57–59. And they describe “a resilient skirt assembly” and “a resil- ient strut adapted to secure a skirt panel to a road trailer.” ’471 patent col. 2 ll. 3–4, col. 2 ll. 19–20; ’017 patent col. 2 ll. 5–6, col. 2 ll. 20–21. The representative claim at issue in the ’017 patent ap- peal was: 1. A resilient strut adapted to secure an aerody- namic skirt to a trailer, the aerodynamic skirt

4 In the ’017 Final Written Decision, the Board also found that WABCO had not shown that claims 2–4, 12–14, and 20 of the ’017 patent, which claimed resilient struts of a particular shape, were unpatentable as obvious. WABCO cross-appealed, and we affirmed the Board’s determination on those claims. No shape-specific limitations are at issue here, so we don’t discuss that aspect of the related case. Case: 20-1140 Document: 101 Page: 4 Filed: 02/03/2023

being adapted to be substantially longitudinally mounted to the trailer, the aerodynamic skirt comprising a skirt panel in- cluding a front portion and a rear portion, the front portion being adapted to be mounted toward a for- ward portion of the trailer and the rear portion be- ing adapted to be mounted toward a rear portion of the trailer in a configuration reducing air drag about the trailer, the skirt panel being adapted to move away from the configuration reducing air drag about the trailer when contacting a foreign ob- ject and to recover the configuration reducing air drag about the trailer thereafter, the resilient strut being adapted to sustain an elas- tic deformation when a load is applied to the resili- ent strut when the skirt panel moves away from the configuration reducing air drag about the trailer and to self-recover the resilient strut original shape when the load is removed, the resilient strut includ- ing a longitudinal shape variation adapted to change a mechanical strength of the resilient strut and influence a stiffness of the resilient strut. Transtex Inc. v. Laydon Composites Ltd., 848 F. App’x 901, 903 (Fed. Cir. 2021) (“Transtex I”) (emphasis in original) (quoting ’017 patent claim 1). In Transtex I, Transtex challenged the Board’s conclu- sions related to the resilient strut limitation. Specifically, it argued that the Board’s motivation-to-combine and rea- sonable-expectation-of-success findings were erroneous. We rejected both arguments and affirmed the Board’s ob- viousness determination. 5 We concluded that the Board’s

5 The discordant timing of our decisions here and in Transtex I is a product of the two Final Written Decisions’ differing temporal relationships with Arthrex. We rejected Case: 20-1140 Document: 101 Page: 5 Filed: 02/03/2023

TRANSTEX INC. v. VIDAL 5

motivation-to-combine finding “was more than an imper- missible conclusory assertion” and that it was supported by substantial evidence in the form of Mr. Tres’s expert testi- mony. Transtex I, 848 F. App’x at 907. As for reasonable expectation of success, we found that “Mr. Tres’s declara- tions confirm that the expectation of success here is rea- sonable in view of the teachings of Layfield and Rinard” and that the Board’s decision had adequately set out the reasons for its conclusion. Id. at 908. This appeal is also centered on the Board’s conclusions about a resilient strut limitation. The representative claim of the ’471 patent at issue here is:

Transtex’s Appointments Clause challenge in the ’017 pa- tent appeal because the Board’s decision issued after our then-binding decision in Arthrex, Inc. v. Smith & Nephew, Inc., 941 F.3d 1320 (Fed. Cir. 2019). Transtex I, 848 F. App’x at 905 n.3. The ’471 Final Written Decision issued before our Arthrex decision, so this case was initially re- manded for proceedings consistent with that decision. Or- der (Feb. 5, 2021), ECF No. 64. After the Supreme Court’s decision in United States v. Arthrex, Inc., 141 S. Ct. 1970 (2021), the mandate was recalled, and the case was re- manded for the limited purpose of seeking Director review. Order (Dec. 30, 2021), ECF No. 82. WABCO withdrew from the appeal before Director review was denied. Order (Feb. 18, 2022) ECF No. 85.

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