Zygo Corporation v. Wyko Corporation

79 F.3d 1563, 1996 WL 138530
CourtCourt of Appeals for the Federal Circuit
DecidedMay 15, 1996
Docket94-1445
StatusPublished
Cited by69 cases

This text of 79 F.3d 1563 (Zygo Corporation v. Wyko 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.

Bluebook
Zygo Corporation v. Wyko Corporation, 79 F.3d 1563, 1996 WL 138530 (Fed. Cir. 1996).

Opinion

NIES, Senior Circuit Judge.

Wyko Corporation appeals the final judgment of the United States District Court for the District of Arizona (Civil Action No. CIV 88-454-T-JLQ), which held Zygo Corporation’s United States Patent No. 4,201,473 (“the ’473 patent”) for an interferometer system not invalid and infringed by three models of Wyko interferometers, resulting in an award of $2,668,710.43 in damages calculated in part as lost profits and in part as a reasonable royalty. We hold that the district court clearly erred in finding that one model, the Wyko 6000 Redesign, infringed under the doctrine of equivalents. We affirm the finding of infringement on the Original Wyko 6000 designs.

In sum, for reasons discussed more fully below, we affirm-in-part, reverse-in-part, and remand for recalculation of damages.

I.

Background

Dissatisfied with existing interferometers, Zygo set out to design and patent its own devices. In 1977, Zygo designed the Zygo Mark II, the commercial embodiment of the invention claimed in the ’473 patent. The patented interferometer has two modes of operation, alignment and viewing. In the alignment mode, the internal TV camera is focused down the “alignment leg.” The reference and test wavefronts are collected by a series of optic elements and projected as two dots of light onto a stationary diffuse screen. Embedded into the stationary diffuse screen is a visible cross-hair reticle with a marked center indicating the optical axis. The image on the screen of the dots and reticle is picked up by a TV camera and displayed on a CCTV monitor. An operator moves the dots to the center of the alignment reticle at which point alignment is achieved.

To view the fringe pattern, the interferometer must be switched into the “view mode.” When the view mode is entered, a flip mirror is moved and a TV camera is focused down the “view leg,” which permits the combined wavefronts to be imaged as a fringe pattern onto a second diffuse screen. This diffuse screen is movable with respect to the path of the wavefronts so as to destroy the coherence length of the beam 1 and to eliminate spurious fringe patterns. The view leg includes a continuous zoom lens positioned between the camera and the movable diffuse screen. The diffuse screen, together with the fringe pattern caused by the interference of the reference and test wavefronts in the recombined beam, is imaged onto the camera.

The inventors constructed a “breadboard” of the patented interferometer during the course of their development work. The breadboard, which was bufit on a 2’ by 2’ plate, consisted of the various optical components disclosed in the ’473 patent. In transforming the breadboard interferometer into a functioning commercial unit, Zygo made several necessary additions. For example, the entire device was encased in a metal box for protective purposes, and a spherical field lens, which functioned to make the alignment spots appear brighter on the television monitor, was built into the back of the stationary view screen. As a result of encasing the device, a mirror had to be added to illumi *1566 nate the view screen and improve visibility. The ’473 patent does not disclose the enclosure, the spherical field lens, or the illumination mirror.

On April 21, 1978, Zygo filed the patent application which matured into the ’473 patent. The claims were initially rejected under 35 U.S.C. § 103 as being obvious in view of a brochure describing a prior art interferometer, the Tropel reference. Zygo responded with argument that the claims as filed were patentably distinct over that prior art. In particular, Zygo noted that the Tropel reference failed to teach the use of zoom magnification, an alignment reticle, or means for destroying coherence length (i.e. the movable diffuse screen). The Examiner then allowed the claims, and the ’473 patent issued on May 6, 1980.

The Accused Device

Defendant Wyko Corporation was founded in 1982 by Dr. Wyant, a professor at the University of Arizona, and Mr. Chris Koliap-olis, a former doctoral candidate student of Dr. Wyant’s. This litigation centers around two Wyko optical interferometer systems: the original Wyko 6000 and the Wyko 6000 Redesign. The original Wyko 6000 interferometer was first introduced in January 1988. The Wyko 6000 Redesign made its debut about one year after initiation of this lawsuit.

The original Wyko 6000 included a stationary diffuse screen onto which the reference and test wavefronts were focused as dots of light which were imaged onto a television camera, converted into electronic data, and appeared on a computer monitor along with a reticle for alignment that was generated by computer software. The two dots were tilted and tipped until they overlapped at the center of the cross-hair which meant they were aligned along the optical axis of the interferometer.

In the Wyko 6000 Redesign, no reticle is displayed for alignment. Instead, a prism is used which is factory-positioned so that its axis is parallel to the optical axis of the interferometer. When so positioned, the prism deflects light that is not parallel to its axis. If the wavefronts are not in alignment, the prism creates a split-image of the test and reference wavefronts such that four dots (two for each wavefront) are projected onto the diffuse screen. This image is transferred to a TV monitor. Both pairs of dots are moved together. When properly aligned, the four dots coalesce into a single spot, which means they are aligned along the optical axis of the interferometer.

In the view mode, both the original and redesigned Wyko 6000 systems included a rotating ground glass screen positioned in front of a continuous zoom lens. Similar in purpose to the moveable screen in the Zygo interferometer, the rotating ground glass screen functioned to eliminate spurious fringe patterns. There is no dispute that the Wyko devices meet the limitations respecting the view mode.

Procedural History

The court entered its Findings of Fact and Conclusions of Law on March 3, 1993, holding the ’473 patent was neither invalid (1) for lack of an enabling disclosure or (2) for failing to disclose the best mode, nor was the patent unenforceable for inequitable conduct before the Patent Office. While none of the accused Wyko devices were found to literally infringe the ’473 patent, the court concluded that all versions of the accused Wyko devices infringed under the doctrine of equivalents.

The damages phase of the trial was similarly tried to the bench, after which the court entered its Findings of Fact and Conclusions of Law and awarded Zygo over $2.1 million in total lost profits and a reasonable royalty. The court also awarded prejudgment interest in the amount of $532,755.04.

On appeal, Wyko alleges the district court erred in the finding that the accused devices infringed the ’473 patent under the doctrine of equivalents, and in concluding that the ’473 patent was not invalid for failure to disclose the best mode. Wyko also challenges the award of damages calculated as lost profits.

II.

Best Mode

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Bluebook (online)
79 F.3d 1563, 1996 WL 138530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zygo-corporation-v-wyko-corporation-cafc-1996.