Vulcan Engineering Co., Inc., Plaintiff-Cross v. Fata Aluminium, Inc., and Fata Group, S.P.A.

278 F.3d 1366, 61 U.S.P.Q. 2d (BNA) 1545, 2002 U.S. App. LEXIS 1776, 2002 WL 181084
CourtCourt of Appeals for the Federal Circuit
DecidedFebruary 5, 2002
Docket00-1533, 00-1553
StatusPublished
Cited by66 cases

This text of 278 F.3d 1366 (Vulcan Engineering Co., Inc., Plaintiff-Cross v. Fata Aluminium, Inc., and Fata Group, S.P.A.) 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
Vulcan Engineering Co., Inc., Plaintiff-Cross v. Fata Aluminium, Inc., and Fata Group, S.P.A., 278 F.3d 1366, 61 U.S.P.Q. 2d (BNA) 1545, 2002 U.S. App. LEXIS 1776, 2002 WL 181084 (Fed. Cir. 2002).

Opinions

Opinion for the court filed by Circuit Judge PAULINE NEWMAN. Opinion dissenting in part filed by Circuit Judge MICHEL.

PAULINE NEWMAN, Circuit Judge.

Vulcan Engineering Company brought suit for infringement of United States Patent No. 4,736,787 (“the '787 patent”) against FATA Aluminum, Inc., and FATA Group, S.p.A. (collectively “Fata”). Fata raised various defenses, and filed a counterclaim charging that the '787 patent is invalid. The United States District Court for the Eastern District of Michigan held, after a bench trial, that the '787 patent was valid, enforceable, and infringed, and awarded damages of $2,187,199.1 Both sides appeal aspects of the judgment. The judgment is affirmed, with modification of the damages award. We remand for accounting of modified damages.

BACKGROUND

The '787 patent, issued on April 12, 1988, relates to an on-line continuous system for the production of cast metal shapes using the “lost foam” process. The traditional method of casting of metal articles involves four general steps: (1) forming a mold by compacting the mold material around a model in the shape of the desired article; (2) cutting the mold open to remove the model and then resealing the mold; (3) pouring molten metal into the mold and allowing it to cool; and (4) breaking or cutting the mold to recover the cast metal article. Lost foam casting, first described in 1958, was a significant advance in that step (2) is entirely eliminated. Instead, a polystyrene foam model of the desired article is used to form the mold, and is not removed from the mold; then when molten metal is poured into the mold, the polystyrene foam is burnt out as the metal replaces the foam model.

Lost foam casting was practiced before the '787 invention, but the process was not automated and the steps were labor-intensive and entailed high production costs. It was believed that continuous automated procedures were not suitable, and none was available until Vulcan’s development of [1371]*1371the process that is the subject of the '787 patent. It is illustrated in patent Figure 1, which shows, inter alia, interconnected gondolas 19 moving through stations that perform the steps of loading and compaction 12, pouring of the molten metal 13, and mold unloading 14.

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Claim 1 is the broadest claim:

1. In a lost foam casting system, a closed curvilinear track means having a loading and compaction station, a metal pouring station and a mold unloading system;
a plurality of flask carrying gondolas supported for movement along the track means with each gondola including means for registering said flask thereon for alignment in said compaction station, and with each of said gondolas being pivotally connected to each adjacent gondola;
drive means for effecting intermittent movement of the mold carriers between indexed positions along said track means;
and a plurality of mold forming flasks adapted for registry in said gondolas and detachably supported thereon.

The Vulcan system was reported with acclaim in trade publications.

In February 1997 Vulcan and Fata submitted competing bids in response to a solicitation by General Motors Corporation for nine metal casting lines by the lost foam method, meeting certain detailed specifications. Fata’s bid was lower, and General Motors awarded the contract to Fata. Vulcan then wrote to General Motors on August 6, 1997, stating that Vulcan believed that a system meeting the specifications of the bid would necessarily infringe the '787 patent. On August 12, 1997, General Motors sent Fata a copy of Vulcan’s letter, reminding Fata of its contractual indemnification obligation with respect to patent infringement. Fata continued to work on producing the lines for General Motors, and Vulcan filed suit against Fata on September 15, 1998. Line 1 was delivered by Fata to General Motors in November 1998, and lines 2 through 5 were still being produced when in May 1999 the district court announced its decision that the '787 patent was valid and infringed. Following certain license arrangements between Vulcan and General Motors, damages were assessed. Both sides appeal.

[1372]*1372I

VALIDITY

Fata challenged the validity of the '787 patent on several grounds.

Obviousness

Invalidity on the ground of obviousness is a question of law based on underlying factual findings. See Graham v. John Deere Co., 383 U.S. 1, 17, 86 S.Ct. 684, 15 L.Ed.2d 545, 148 USPQ 459, 467 (1966). The district court’s findings of fact are reviewed for clear error, and its statements of law and application of the law to the found facts are reviewed for correctness. See Glaverbel Societe Anonyme v. Northlake Mktg. & Supply, Inc., 45 F.3d 1550, 1555, 33 USPQ2d 1496, 1499 (Fed. Cir.1995). A factual finding is deemed clearly erroneous when “although there is evidence to support it, the reviewing court on the entire evidence is left with the definite and firm conviction that a mistake has been committed.” United States v. United States Gypsum Co., 333 U.S. 364, 395, 68 S.Ct. 525, 92 L.Ed. 746, 76 USPQ 430, 443 (1948).

The district court, reviewing the evidence, found that the engineering consensus before appearance of the '787 invention was that lost foam processes having all stations on-line can not be operated as a continuously linked system. The metal casting systems cited by Fata to support its contention of obviousness were “accumulating” systems that did not operate continuously, or on-line green sand metal casting systems; no reference showed or suggested how to modify these systems for continuous lost foam casting.

The district court found that there was no teaching, suggestion, or reason in the prior art to select aspects of the prior art and combine them in the manner of the '787 system. See Karsten Mfg. Corp. v. Cleveland Golf Co., 242 F.3d 1376, 1385, 58 USPQ2d 1286, 1293 (Fed.Cir.2001) (“In holding an invention obvious in view of a combination of references, there must be some suggestion, motivation, or teaching in the prior art that would have led a person of ordinary skill in the art to select the references and combine them in the way that would produce the claimed invention.”); C.R. Bard, Inc. v. M3 Sys., Inc., 157 F.3d 1340, 1352, 48 USPQ2d 1225, 1232 (Fed.Cir.1998) (a showing of a suggestion, teaching, or motivation to combine the prior art references is an “essential evidentiary component of an obviousness holding”).

Fata states that the district court erroneously ruled that the turntable system at General Motors’ Rochester Products facility was not prior art to the Vulcan system. The Rochester Products system was intended to be a continuous on-line lost foam casting system, wherein a large turntable carried flasks to three operating stations by indexed movement.

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278 F.3d 1366, 61 U.S.P.Q. 2d (BNA) 1545, 2002 U.S. App. LEXIS 1776, 2002 WL 181084, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vulcan-engineering-co-inc-plaintiff-cross-v-fata-aluminium-inc-and-cafc-2002.