holding that a party’s due process rights had not been violated where there was a “continuous focus on . . . [the claim term] . . . before and during oral arguments”
How later courts described this case
- holding that a party’s due process rights had not been violated where there was a “continuous focus on . . . [the claim term] . . . before and during oral arguments”
- holding that patent law applied to drilling technology on United States-flagged ships on the high seas
- “It is the general rule under United States patent law that no infringement occurs when a patented product is made and sold in another country.”
- explaining that a party was on notice, because the Patent Board had revealed its understanding of term before its decision
Written by the judges who cited it.
The opinion
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
)
SIEMENS GAMESA )
RENEWABLE ENERGY A/S, )
)
Plaintiff, )
)
v. ) CIVIL ACTION
) NO. 21-10216-WGY
GENERAL ELECTRIC CO., )
)
Defendant. )
YOUNG, D.J. May 23, 2022
MEMORANDUM & ORDER
I. INTRODUCTION
This matter is before the Court pursuant to the Defendant
General Electric’s (“GE”) Motion for Reconsideration (the
“Motion for Reconsideration”), Def. GE’s Mot. Recons. Ct.’s Am.
Claim Construction Order (“Mot. Reconsideration”), ECF No. 307,
and its Motion for Clarification (the “Motion for
Clarification”), Def. GE’s Mot. Clarification Ct.’s April 4,
2022 Order (“Mot. Clarification”), ECF No. 310. Both motions
were filed in response to the Court’s April 4, 2022 Order. See
April 4, 2022 Order, ECF No. 306.
GE’s Motion for Reconsideration is hereby DENIED, and its
Motion for Clarification is ALLOWED.
II. PROCEDURAL HISTORY
Siemens Gamesa Renewable Energy A/S (“Siemens”) owns United
States Patent No. 9,279,413 (the “‘413 Patent”) and United
States Patent No. 8,575,776 (the “‘776 Patent”). First Am.
Compl. Patent Infringement & Jury Demand ¶¶ 1, 23, 32, ECF No.
95; see generally id. Ex. A, U.S. Patent No. 8,575,776 (“‘776
Patent”), ECF No. 95-1; id. Ex. B, U.S. Patent No. 9,279,413,
ECF No. 95-2.
Siemens sued GE for infringement of the ‘413 Patent and
‘776 Patent in the United States District Court for the Middle
District of Florida. Compl. Patent Infringement & Jury Demand,
ECF No. 1. The case was later transferred to this Court by
consent. February 4, 2021 Order, ECF No. 43.
This Court held a Markman hearing on September 16, 2021.
See generally Tr. Markman Hr’g, ECF No. 113. After oral
argument, this Court construed six terms and took one under
advisement. Id. 42:19-44:1. On October 28, 2021, this Court
issued a Markman Order construing the remaining term and
explaining its other constructions. See Siemens Gamesa
Renewable Energy A/S v. Gen. Elec. Co., No. CV 21-10216-WGY,
2021 WL 5040409 (D. Mass. Oct. 28, 2021).
Subsequently, the parties filed six separate motions for
summary judgment. GE filed three motions for summary judgment
against Siemens’s infringement claims: (1) one based on the lack
of an infringing act within the United States; and two based on
non-infringement of the claim terms of the (2) ‘413 Patent, and
the (3) ‘776 Patent. Def. GE’s Mot. Summ. J. Non-Infringement
Lack U.S. Act, ECF No. 148; Def. GE’s Mot. Summ. J. Non-
Infringement ‘776 Patent, ECF No. 157; Def. GE’s Mot. Summ. J.
Non-Infringement ‘413 Patent, ECF No. 169. Siemens filed two
motions: (1) to preclude GE from utilizing certain prior art
references; and (2) for summary judgment on counts V and VI of
GE’s counterclaims alleging inequitable conduct by Siemens. See
Pl.’s Mot. Summ. J. Certain References Do Not Constitute Prior
Art, ECF No. 146; Pl.’s Mot. Summ. J. No Inequitable Conduct,
ECF No. 141.
This Court held a hearing on March 24, 2022, and
tentatively denied all of the motions, but took the matter under
advisement. See Electronic Clerk’s Notes, ECF No. 303. On
March 30, 2022, at the final pre-trial conference for this
matter, this Court denied the six summary judgment motions and
announced clarifications for two claim terms; the Court also
confirmed it would issue a formal order on the record
memorializing each of these actions. See Electronic Clerk’s
Notes, ECF No. 305. On April 4, 2022, the Court issued an order
(the “April 4, 2022 Order”) recording the denial of the motions
and its Markman clarifications for two of the claim terms of the
‘776 Patent: “a circular inner base structure” and “hollow
chamber.” See April 4, 2022 Order 2-3.
On April 13, 2022, GE filed a Motion for Reconsideration,
asking this Court to retract its explanations for each
construction provided in its April 4, 2022 Order. See generally
Mot. Reconsideration. GE also filed a Motion for Clarification
on the basis for the denial of its summary judgment motion for
lack of an infringing act within the United States. See Mot.
Clarification 2. The parties fully briefed each of these
motions. See Mem. Supp. Def. GE’s Mot. Recons. Ct.’s Am. Claim
Construction Order (“Mem. Supp. Mot. Reconsideration”), ECF No.
308; Pl. SGRE’s Opp’n Def. GE’s Mot. Recons. Ct.’s April 4, 2022
Order Clarifying Claim Construction (“Mem. Opp’n Mot.
Reconsideration”), ECF No. 315; Pl. SGRE’s Opp’n Def.’s Mot.
Clarification Ct.’s April 4, 2022 Order (“Siemens’s Opp’n Mot.
Clarification”), ECF No. 316.
After consideration of the parties’ submissions, GE’s
Motion for Reconsideration is DENIED and its Motion for
Clarification is ALLOWED as set forth below.
III. MOTION FOR RECONSIDERATION
GE requests relief from the order pursuant to Federal Rule
of Civil Procedure 60(b) (“Rule 60(b)”), citing specifically
sub-sections (1) and (6). Mem. Supp. Mot. Reconsideration 3.
Rule 60(b) allows courts to correct orders sua sponte or on
motion to remedy “mistake, inadvertence, surprise or excusable
neglect,” Fed. R. Civ. P. Rule 60(b)(1), and for “any other
reason that justifies relief,” id. 60(b)(6). Rule 60(b) is a
“vehicle for extraordinary relief,” which should be utilized
only under “extraordinary circumstances.” Davila-Alvarez v.
Escuela de Medicina Universidad Central del Caribe, 257 F.3d 58,
64 (1st Cir. 2001).
GE alleges that it is entitled to relief for two reasons:
(A) it was denied notice and opportunity to respond to the
Court’s newly adopted claim constructions; and (B) the Court’s
clarifications of the constructions are incorrect as matter of
law. Mem. Supp. Mot. Reconsideration 2-3. This memorandum
addresses each in turn and concludes that no extraordinary
circumstances warranting 60(b) reconsideration exists and,
accordingly, that GE’s motion is denied.
A. Notice and Opportunity to be Heard
GE contends that it had no notice that Siemens “was seeking
-- much less that the Court was considering adopting -- modified
constructions” until Siemens raised the issue at hearing, making
the Court’s April 4, 2022 Order a surprise. Mem. Supp. Mot.
Reconsideration 3-4. Furthermore, GE takes issue with the
characterization that “the parties suggested” that the two terms
in question “required further construction.” See id. (quoting
April 4, 2022 Order 2). This Court’s clarification of its
constructions is not a “surprise” meriting Rule 60(b) reversal
for the following reasons.
First, determining or clarifying claim scope is necessary
for resolving summary judgment motions and it is GE -- not
Siemens -- that moved for summary judgment on non-infringement
of the ‘776 Patent. Analysis of a motion for summary judgment
on infringement requires two steps: (1) if there is any dispute
as to the scope or meaning of a claim, it is resolved via a
Markman style analysis; and (2) after the scope of the claims is
set, “it is determined whether the accused product or system is
within the scope of the claim.” Vulcan Eng’g Co. v. Fata
Aluminium, Inc., 278 F.3d 1366, 1373 (Fed. Cir. 2002); see also
Markman v. Westview Instruments, Inc., 52 F.3d 967, 977–80 (Fed.
Cir. 1995) (en banc), aff’d, 517 U.S. 370 (1996). Claim
construction, at step one, is matter of law for the Court to
determine. Bai v. L & L Wings, Inc., 160 F.3d 1350, 1353 (Fed.
Cir. 1998). It is not just the Court’s power, but its duty to
engage in such an interpretation “[w]hen the parties raise an
actual dispute regarding the proper scope of these claims.” O2
Micro Int’l Ltd. v. Beyond Innovation Tech. Co., 521 F.3d 1351,
1360 (Fed. Cir. 2008). In fact, “[a] motion for summary
judgment, at any stage in the proceedings, is an appropriate
vehicle [] for amending the claims construction.” Bateman v.
Por-Ta Target, Inc., No. C 01-5599 JL, 2004 U.S. Dist. LEXIS
28487, at *7 (N.D. Cal. July 28, 2004) (citing Markman, 52 F.3d
at 976). Furthermore, at the summary judgment stage, “[i]n the
event that claim construction is required, it will be done
without conducting a Markman hearing.” Meritor Transmission
Corp. v. Eaton Corp., No. 1:04CV178, 2006 U.S. Dist. LEXIS
108037, at *3-4 (W.D.N.C. Feb. 1, 2006).
Second, as discussed below, courts are at liberty to
clarify, amend, or update claim interpretation -- regardless
whether a party has moved for such revision -- if the Court
identifies such a need. A Markman Order “determining claim
construction . . . [is] provisional in the sense that it is
interlocutory.” Vivid Techs., Inc. v. Am. Sci. & Eng’g, Inc.,
997 F. Supp. 93, 95 (D. Mass. 1997) (Keeton, J.). Accordingly,
this Court “has discretion to review the claims construction at
any time before final adjudication” and “may review the claims
construction sua sponte.” Bateman, 2004 U.S. Dist. LEXIS 28487,
at *12-13. Indeed, “it is not necessary for the parties to file
a motion for reconsideration of a claim construction order,
[because] if the Court ‘is convinced it did err, it will amend
its claim construction.’” Id. at *13 (quoting ASM Am., Inc. v.
Genus, Inc., No. C-01-2190 EDL, 2003 U.S. Dist. LEXIS 7786, at
*6 (N.D. Cal. Jan. 10, 2003)). “District courts may [also]
engage in a rolling claim construction, in which the court
revisits and alters its interpretation of the claim terms as its
understanding of the technology evolves.” Jack Guttman, Inc. v.
Kopykake Enters., Inc., 302 F.3d 1352, 1361 (Fed. Cir. 2002);
see also Serono Inc. v. Ferring Pharms., Inc., No. C.A. 02-
11832-MLW, 2004 WL 5645756, at *1 (D. Mass. May 26, 2004) (Wolf,
J.) (highlighting that its claim constructions were subject to
change, in part, because the Markman hearing had been conducted
prior to any motion for summary judgment: “it is particularly
appropriate to note that the court’s interpretation of these
claims may evolve as the case progresses and the court is
educated further about or provided expert testimony on the
technology in question”); Open Text S.A. v. Box, Inc., No. 13-
cv-04910-JD, 2014 U.S. Dist. LEXIS 167021, at *9 (N.D. Cal. Dec.
1, 2014) (“To the extent that disputes later develop over the
scope of the claims -- or the constructions set forth in this
order -- it may become necessary for the Court to revise its
constructions, or to construe additional terms.”).
Therefore, it should come as no surprise to GE that this
Court clarified claim terms, as it is wont to do. See Guttman,
302 F.3d at 1361; see also Cytologix Corp. v. Ventana Med. Sys.,
424 F.3d 1168, 1172 (Fed. Cir. 2005) (explaining that “district
court[s] ha[ve] considerable latitude in determining when to
resolve issues of claim construction”). GE moved for summary
judgment on non-infringement, which placed the onus on this
Court further to clarify any terms relevant to the motion.
Furthermore, courts are free to further construe or clarify
claim terms when needed. The necessity of further clarification
here was highlighted by the motion for summary judgment
briefing; in particular, the discrepancies between (1) GE’s
description of the claim terms as compared to the Court’s
Markman constructions; and (2) GE’s interpretation of the
Court’s Markman constructions, as compared to Siemens’s.
As to the term “a circular inner base structure,” GE added
requirements to the Markman constructions, claiming that this
Court “rejected” the possibility that “disparate components . .
. arranged circumferentially” could constitute “a circular inner
base structure” in its Markman Order. Mem. Supp. Def. GE’s Mot.
Summ. J. Non-Infringement ‘776 Patent (“GE’s Mem. Non-
Infringement ‘776 Patent”) 4, ECF No. 158. At the Markman
hearing, however, this Court explicitly reserved this question
for a later date -- perhaps the summary judgment stage. Tr.
Markman Hr’g 33:22-34:3 (refusing to decide whether a single
continuous component was required at the Markman stage and
stating “[w]hether I can be crowded into a ruling on summary
judgment [on this issue] is unclear”). Furthermore, this
interpretation stands in stark contrast to Siemens’s reading,
which asserts the term did not require a “single continuous
piece.” SGRE’s Opp’n GE’s Mot. Summ. J. Non-Infringement ‘776
Patent (“Siemens’s Opp’n Non-Infringement ‘776 Patent”) 5, ECF
No. 186.
As to the term “hollow chamber,” GE argues that under the
Court’s construction a chamber cannot be considered “hollow” if
it contains structural supports. GE’s Mem. Non-Infringement
‘776 Patent 7. This Court, however, never outlined such a
requirement and rather accepted the construction agreed upon by
both parties -- “empty space.” See Siemens, 2021 WL 5040409, at
*11. This also stands in contrast to Siemens’s interpretation,
which outlined that an “empty space” or “hollow chamber” need
not be “a completely empty space” to meet the claim
construction. Siemens’s Opp’n Non-Infringement ‘776 Patent 12.
Both GE’s misinterpretation of this Court’s constructions
at the Markman stage, and the parties’ continuing disagreement
about the meaning of the terms during their summary judgment
briefing, highlighted conflicts in construction in need of
resolution. The Court’s April 4, 2022 Order has not altered its
original constructions; it has simply clarified them. See
generally April 4, 2022 Order. While it is true that the
Federal Circuit has discouraged “hypertechnical refinements of
the meaning of claims following claim construction to support a
grant of summary judgment,” Apple, Inc. v. Samsung Elecs. Co.,
No. 12-CV-00630-LHK, 2014 U.S. Dist. LEXIS 8157, at *68-69 (N.D.
Cal. Jan. 21, 2014) (emphasis added) (citing AFG Industries,
Inc. v. Cardinal IG Co., 375 F.3d 1367 (Fed. Cir. 2004)), this
Court has denied summary judgment, and only refined the terms to
the extent necessary.
GE argues it is entitled to notice and opportunity to
respond to these clarified claim constructions, particularly
because they were not proposed by either party. Mem. Supp. Mot.
Reconsideration 3-5.
Contrary to GE’s suggestion that further briefing or
hearing is required before this Court makes revisions, see Mem.
Supp. Mot. Reconsideration 4, “Markman does not require a
district court to follow any particular procedure in conducting
claim construction” or to hold a hearing, Ballard Med. Prods. v.
Allegiance Healthcare Corp., 268 F.3d 1352, 1358 (Fed. Cir.
2001). Furthermore, the central case to which GE cites for this
proposition, Qualcomm Inc. v. Intel Corp., not only involved a
change in construction by the United States Patent Office rather
than a court, but also concerned a change in construction that
was “difficult to imagine either party [would] anticipate.” 6
F.4th 1256, 1263 (Fed. Cir. 2021). In contrast, the terms at
issue here have been disputed and briefed extensively at both
the Markman and summary judgment stages of this case.1 Where an
1 See Siemens, 2021 WL 5040409, at *8-9, *11-12; Def. GE’s
Claim Construction Br. 6-8, 10-12, ECF No. 90; SGRE’s Opening
Claim Construction Br. 16-17, 19-20, ECF No. 91; SGRE’s
Responsive Claim Construction Br. 4-7, 9-11, ECF No. 99; Def.
issue relevant to a term’s construction has been a constant
point of contention during proceedings, the parties are on
notice that the court may decide the issue in its constructions
or clarifications. See Intellectual Ventures II LLC v. Ericsson
Inc., 686 F. App’x 900, 906 (Fed. Cir. 2017) (holding that a
party’s due process rights had not been violated where there was
a “continuous focus on . . . [the claim term] . . . before and
during oral arguments”). This Court even mentioned at least one
of these clarifications was possible at the Markman hearing.
Tr. Markman Hr’g 35:13-19; see also TQ Delta, LLC v. DISH
Network LLC, 929 F.3d 1350, 1355-56 (Fed. Cir. 2019) (explaining
that a party was on notice, because the Patent Board had
revealed its understanding of term before its decision).
Finally, the fact that the Court’s clarifications were not
proposed by either party is of no consequence; a court “may
adopt a definition not proposed by either party that best fits
with the claim language and specification.” Homeland
Housewares, LLC v. Whirlpool Corp., 865 F.3d 1372, 1376 (Fed.
Cir. 2017); Praxair Distr., Inc. v. Mallinckrodt Hosp. Prod. IP
Ltd., 890 F.3d 1024, 1034 (Fed. Cir. 2018) (concluding the
United States Patent Office could adopt a construction that
GE’s Resp. SGRE’s Opening Claim Construction Br. 15-16, 19-20,
ECF No. 100; GE’s Mem. Non-Infringement ‘776 Patent 3-12;
Siemens’s Opp’n Non-Infringement ‘776 Patent 5-13.
neither party proposed); Shire LLC v. Amneal Pharm., LLC, Civil
Action No. 11-3781 (SRC), 2013 U.S. Dist. LEXIS 111773, at *30
(D.N.J. Aug. 8, 2013) (rejecting both parties’ constructions).
B. GE’s Argument that the Clarifications are Incorrect as
Matter of Law
This Court’s order clarified the definition of “a circular
inner base structure” as:
“a circular inner base structure” need not be, but may be,
constituted by one continuous piece.
See April 4, 2022 Order 2-3. It also further clarified the
meaning of “hollow chamber” or “empty space” as:
a “hollow chamber” or “empty space,” is “hollow” or “empty”
as long as at least some part of it is continuously empty
or hollow (it need not be entirely empty or hollow).
Id. GE challenges each as incorrect as a matter of law. The
Court rejects GE’s contentions.
1.
“a circular inner base structure”
GE claims that the Court’s construction of “a circular
inner base structure” is incorrect for four reasons: (a) it is
inconsistent with the plain language of the claim and definition
of the word “structure”; (b) it goes against the intrinsic
evidence of the ‘776 Patent; (c) the definition introduces a
negative limitation absent any express disclaimer or
lexicography; and (d) the modified construction would render the
patent invalid. Mem. Supp. Mot. Reconsideration 5-7. GE’s
arguments fail on all accounts.
a. The Plain Language & Definition
As to the first argument, GE claims that “[t]he claim term
‘inner base structure,’ by its use of the singular ‘structure’
describes one continuous piece, rather than multiple separate
pieces (‘structures,’ plural).” Id. 5. In other words, GE
argues that because the term “structure” is used in its singular
form in the claims, an “inner base structure” must be formed of
one continuous piece. This reading mistakes the plain language
of the claims. The singular use of structure suggests that: “A
wind turbine with a generator” is comprised of “a circular inner
base structure” among other components. ‘776 Patent col. 3, ll.
25-31. The singularity refers to the number of structures one
could define as “a circular inner base structure” in the “wind
turbine” of the ‘776 Patent. The use of the singular term
“structure,” however, does not describe what “a circular inner
base structure” must be comprised of. See id. col. 3, ll. 25-
35.
To the extent GE makes an argument regarding the dictionary
definition of “structure,” the evidence also weighs against it
in that regard. In deciphering the plain meaning of claim
terms, the Federal Circuit sometimes starts from a term’s
dictionary definition. See In re Stoller, 598 F. App’x 772, 774
(Fed. Cir. 2015). Courts can consider extrinsic evidence, such
as the dictionary definition of terms, Markman, 52 F.3d at 980,
“if needed to assist in determining the meaning or scope of
technical terms in the claims,” Pall Corp. v. Micron
Separations, Inc., 66 F.3d 1211, 1216 (Fed. Cir. 1995)
(citations omitted); see also Vitronics Corp. v. Conceptronic,
Inc., 90 F.3d 1576, 1584 n. 6 (Fed. Cir. 1996).
The dictionary definition of “structure” (in its singular
form) is “something made up of more or less interdependent
elements or parts: something having a definite or fixed pattern
of organization.” Webster’s Third New Int’l Dictionary 2267
(Philip Babcock Gove ed., 3d ed. 2002). Other dictionaries are
in accord defining structure as: “Something made up of a number
of parts that are held or put together in a particular way”;
“Something constructed, such as a building.” Structure,
American Heritage Dictionary,
https://ahdictionary.com/word/search.html?q=structure (last
visited May 22, 2022). The term “structure” does not then
suggest that the inner base structure need be made up of one
continuous piece; rather, it describes a component comprised of
multiple discernable pieces.
Therefore, the Court’s clarification is consistent with the
plain language of the claim.
b. The Intrinsic Evidence
With regard to its second argument, GE cites to the
following portions of the specification in order to claim that
“a circular inner base structure” must be one continuous piece:
“an object of the present invention to provide a wind turbine
with a generator with a rigid stator support structure”; “[t]he
stator support structure of the inventive wind turbine with a
generator comprises a base structure which renders the base
structure particularly stable.” Mem. Supp. Mot. Reconsideration
5 (quoting ’776 Patent col. 1, ll. 37-39; id. col. 1, ll. 50-52)
(emphasis in added). GE argues these sections indicate that “a
discontinuous base structure is inconsistent with the invention
as described.” Id. 6.
This Court agrees that “the specification is always highly
relevant to the claim construction analysis.” Vitronics, 90
F.3d at 1582. Claim terms are indubitably intended to be read
according to “the meaning and scope with which they are used in
the specification.” Kinik Co. v. ITC, 362 F.3d 1359, 1365 (Fed.
Cir. 2004). The specification at issue here, however, if
anything, counsels against GE’s conclusion.
GE cited to one of the same portions of the specification
at the Markman stage in arguing that “a circular inner base
structure” must be “rigid.” See Siemens, 2021 WL 5040409, at *8
(quoting ‘776 Patent col. 1, ll. 36-38) (addressing GE’s
argument as to “rigid stator support structure”). As this Court
identified then, and reiterates now, “[t]here is no intrinsic or
extrinsic basis to conclude that” the terms “circular inner base
structure” and “stator support structure” are used
“synonymous[ly]” in the specification. Id. Furthermore, “[t] o
the extent that GE suggests that the circular inner base
structure is rigid” or particularly stable “because it is a
component of the stator support structure, the record is at best
ambiguous on that point, and ‘[a]mbiguous language cannot
support’” such a requirement. Id. (quoting Poly-Am., L.P. v.
API Indus., Inc., 839 F.3d 1131, 1136 (Fed. Cir. 2016)).
Even were this Court to assume arguendo that the terms
“rigid” or “particularly stable” could be attributed to “a
circular inner base structure,” neither adjective is synonymous
with, or even implies, the existence of one continuous ring.
Being composed of multiple pieces and being stable or rigid are
not mutually exclusive concepts. Furthermore, GE fails to point
to any evidence in the specification to indicate that these
terms are synonymous or indicative of one another.
GE also claims the inner base structure is presented as a
single continuous piece in the embodiments, which entails it
must be continuous. Mem. Supp. Mot. Reconsideration 6. GE
cites to a portion of the specification, see Mem. Supp. Mot.
Reconsideration 5 (quoting ‘776 Patent col. 2, ll. 49-50), which
describes one of the ‘776 Patent’s embodiments as a “[s]tator
[which] comprises a base structure [] which is formed as a
circular ring,” ‘776 Patent col. 2, ll. 49-50. Not only has
this Court already rejected this position at the Markman stage,
Siemens, 2021 WL 5040409, at *10 (concluding that “formed as a
circular ring” does “not necessarily refer to the ‘inner base
structure’” (quoting ‘776 Patent col. 2, l. 50)), but GE also
misstates the standard as to embodiments. The Federal Circuit
has instructed that while courts “should not normally interpret
a claim term to exclude a preferred embodiment,” Primos, Inc. v.
Hunter’s Specialties, Inc., 451 F.3d 841, 848 (Fed. Cir. 2006),
embodiments should not be read to limit the scope of claim
terms, see SuperGuide Corp. v. DirecTV Enters., Inc., 358 F.3d
870, 875 (Fed. Cir. 2004). In fact, the Federal Circuit has
held that trying to “import a preferred embodiment into the
claims” is “flawed.” Acumed LLC v. Stryker Corp., 483 F.3d 800,
805 (Fed. Cir. 2007). Reading “a circular inner base structure”
to be one continuous piece based on the embodiment would
improperly import an embodiment into a claim limitation.
Finally, the Federal Circuit has suggested that claims are
to be given “their broadest reasonable construction in light of
the specification.” Phillips v. AWH Corp., 415 F.3d 1303, 1316
(Fed. Cir. 2005) (internal quotation marks omitted). Importing
the claim limitation of “continuous” onto “a circular inner base
structure” would improperly narrow the term in a way that is
unsupported by any evidence.
c. Importing a Negative Claim Limitation
Next, GE argues “[t]he Court’s modified construction is
incorrect because it introduces a negative limitation into the
claim absent any express disclaimer or lexicography within the
‘776 [P]atent specification.”2 Mem. Supp. Mot. Reconsideration
6. GE suggests that the Court’s construction outlines what the
‘776 Patent’s “structure is not,” not what it is. Id. GE is
correct that a negative claim limitation speaks to what an
invention is not or what it excludes. Novartis Pharm. Corp. v.
Accord Healthcare, Inc., No. 2021-1070, 2022 U.S. App. LEXIS 58,
at *18 (Fed. Cir. Jan. 3, 2022). Where it fails is in its
reading of this Court’s clarifications -- which do not describe
what the ‘776 Patent excludes, but rather what it may include.
The Court stated in its clarifying order that “‘a circular
inner base structure’ need not be, but may be” continuous.
April 4, 2022 Order (emphasis added). A negative construction
would have been that the circular inner base structure “is not
2 Siemens argues that GE has waived this argument, because
it has consistently asserted that a “circular inner base
structure” needed to be one continuous piece, yet it never
stated that answering its question could introduce an improper
negative limitation in the claim. Mem. Opp’n Mot.
Reconsideration 5. The Court need not reach this question as it
resolves GE’s motion for reconsideration on other grounds.
continuous” or “is not constituted by separate components
arranged circumferentially.” The cases cited by GE indicate
that negative claim constructions describe what an invention
“cannot be,” “must not be,” or “excludes”; significantly,
negative constructions do not describe what an invention “need
not be,” “is not required to be,” or “may be.” See Mem. Supp.
Mot. Reconsideration 6 (citing Omega Eng’g, Inc., v. Raytek
Corp., 334 F.3d 1314, 1322 (Fed. Cir. 2003) (identifying a
construction that stated the invention could “not strike the
center or interior portion of the energy zone” as a negative
claim limitation); Eko Brands, LLC v. Adrian Rivera Maynez
Enters., Inc., 946 F.3d 1367, 1380–81 (Fed. Cir. 2020) (Reyna,
J., concurring) (“The district court also erred by interpreting
‘passageway’ to exclude a receptacle ‘that utilized a broad,
thin mesh.’” (emphasis added) (citations omitted)); Medicines
Co. v. Mylan, Inc., 853 F.3d 1296, 1308 (Fed. Cir. 2017) (“On
appeal, Medicines repeatedly criticizes the court’s negative
construction as failing to define what ‘efficient mixing’ is, as
opposed to what it is not.” (emphasis added)); Lenovo Holding
Co., Inc. v. DoDots Licensing Sols. LLC, No. 2021-1247, 2021 WL
5822248, at *2 (Fed. Cir. Dec. 8, 2021) (considering whether the
Board’s claim construction erred by stating what an invention
excluded).
Having ascertained that its clarification does not
constitute a negative claim construction, this Court need not
assess whether the appropriate conditions exist for a negative
claim construction of “a circular inner base structure” in the
‘776 Patent.
d. Invalidity
“Finally,” GE argues, “if the Court’s modified construction
were correct, all claims of the ‘776 [P]atent would be invalid
under the written description requirement of 35 U.S.C. §
112(a).” Mem. Supp. Mot. Reconsideration 6.3 “Patents are
presumed to be valid and overcoming this presumption requires
clear and convincing evidence.” Centocor Ortho Biotech, Inc. v.
Abbott Lab’ys, 636 F.3d 1341, 1347 (Fed. Cir. 2011). “Written
description is a statutory requirement set forth in 35 U.S.C. §
112. The written description requirement requires the inventor
to disclose the claimed invention so as to allow persons of
ordinary skill in the art to recognize that the inventor
invented what is claimed.” Billups-Rothenberg, Inc. v.
Associated Reg’l & Univ. Pathologists, Inc., 642 F.3d 1031, 1036
(Fed. Cir. 2011) (internal quotation marks omitted). “The test
. . . is whether the disclosure of the application as originally
3 Siemens also argues that GE waived this invalidity
argument. Mem. Opp’n Mot. Reconsideration 7. The Court need
not assess this, however, as it resolves this issue on other
grounds.
filed reasonably conveys to the artisan that the inventor had
possession at that time of the later claimed subject matter,
rather than the presence or absence of literal support in the
specification for the claim language.” In re Kaslow, 707 F.2d
1366, 1375 (Fed. Cir. 1983). “To satisfy the written
description requirement,” however, “the descriptions contained
in both applications need not be identical.” Pfizer Inc. v.
Perrigo Co., 933 F. Supp. 377, 381 (S.D.N.Y. 1996).
It simply “requires that the written description actually
or inherently disclose the claim element.” PowerOasis, Inc. v.
T-Mobile USA, Inc., 522 F.3d 1299, 1306 (Fed. Cir. 2008). For
example, the Federal Circuit in Tronzo v. Biomet, Inc., held
that a claim was invalid, based on failure to disclose all of
the possible shapes of the invention literally or inherently.
156 F.3d 1154, 1159 (Fed. Cir. 1998). “The sufficiency of a
patent’s written description is ordinarily a question of fact,
but ‘[a] patent also can be held invalid [as matter of law] for
failure to meet the written-description requirement based solely
on the face of the patent specification.’” Abbott GmbH & Co.,
KG v. Centocor Ortho Biotech, Inc., 870 F. Supp. 2d 206, 232 (D.
Mass. 2012) (Saylor, J.) (quoting Centocor, 636 F.3d at 1347).
Nothing in the specification, embodiments, or claim
limitations indicates that there are violations of the written
description requirement. Furthermore, that a “‘circular inner
base structure,’ need not be, but may be, constituted by one
continuous piece,” April 4, 2022 Order 3, is “actually or
inherently disclose[d],” PowerOasis, 522 F.3d at 1306,
throughout the specification, which mentions “a circular inner
base structure” but nowhere requires continuity, see generally
‘776 Patent. Therefore, the Court’s ruling does not render the
patent invalid as matter of law solely based on the face of the
specification. Furthermore, GE has not adduced any evidence of
invalidity and only makes conclusory legal argument.
2.
“hollow chamber”
GE also alleges that the Court’s construction of “hollow
chamber” is inconsistent with the plain language of the claim
and the specification of the ‘776 Patent. Mem. Supp. Mot.
Reconsideration 7. Specifically, GE claims that “[t]he ‘hollow
chamber’ of the ’776 [P]atent is specifically identified by the
claim language as being formed between four specific claimed
structures: the ‘circular inner base structure,’ the ‘circular
outer base structure,’ and the ‘plurality of connection
structures.’” Id. (quoting ‘776 patent col. 3, l. 35; id. col.
4, l. 3). Essentially, GE argues that because the section
between these two structures is delineated as hollow or empty
that chamber or space must be completely hollow or empty. This
is an overly narrow reading of what the parties already agreed
to at the Markman stage -- “empty space.” See Siemens, 2021 WL
5040409, at *11.
GE misinterprets both the claim language and the Court’s
construction. In its April 4, 2022 Order, this Court simply
clarified what can be characterized as “hollow” or “empty” -- a
component of which at least some “part” is “continuously empty
or hollow.” See April 4, 2022 Order 3. This construction does
not alter or add any additional requirements. Rather, GE would
have had the Court add a requirement that the entire space be
“completely empty” in order to be considered hollow or empty.
IV. MOTION FOR CLARIFICATION
One of GE’s motions for summary judgment, was based on the
claim that no infringing activity has taken place within the
United States. See Mot. Summ. J. Non-infringement within U.S.
The Court denied this motion. See April 4, 2022 Order 2.
Subsequently, GE moved for clarification of the ruling, asking
whether the Court denied the motion for summary judgment: (1)
because there was dispute of material fact as to “whether an
infringing act ha[d] taken place within [twelve] nautical miles
of the coastline of the United States”; or (2) “because the
Court ha[d] concluded as [] matter of law that the reach of the
Patent Act extend[ed] beyond [twelve] nautical miles.” Mot.
Clarification 2. GE asserts that “[t]he basis for the Court’s
decision will affect how GE prepares its case for trial [and] .
. . whether the parties will need to propose jury instructions
on the issue of territoriality.” Id. Siemens opposes the
motion for clarification arguing that “[a]t this stage it does
not matter why” the Court denied GE’s motion for summary
judgment, because there is a genuine dispute of material fact
regarding whether the turbines will be located within twelve
nautical miles and that “at trial, [Siemens] intends to adduce
evidence demonstrating that the turbines may be installed within
the territorial sea.” Siemens’s Opp’n Mot. Clarification 1.
In the interest of providing clarity and facilitating
refinement of each party’s arguments for trial, this Court
grants the Motion for Clarification. While a genuine dispute of
material fact exists as to whether the wind turbines will be
located within twelve nautical miles of the United States
coastline, this Court holds that an act can be considered
“within the United States” for purposes of patent infringement,
see 35 U.S.C. § 271(a), if it involves the sale or offer to sell
something that will be “permanently or temporarily attached to
the seabed . . . for the purposes of exploring for, developing,
or producing energy resources, including non-mineral energy
resources” within 200 miles of the Unites States coast. 43
U.S.C. § 1333(a)(1)(iii).
Section 271(a) of Title 35 of the United States Code
provides that “whoever without any authority makes, uses, offers
to sell, or sells any patented invention, within the United
States . . . during the term of the patent therefor, infringes
the patent.” 35 U.S.C. § 271(a) (emphasis added); Microsoft
Corp. v. AT&T Corp., 550 U.S. 437, 441 (2007) (“It is the
general rule under United States patent law that no infringement
occurs when a patented product is made and sold in another
country.”). In denying the GE’s motion for summary judgment
this Court considered three main issues: (A) what constitutes a
sale or offer to sell; (B) what can be considered “within the
United States” for purposes of the statute; and (C) finally,
what disputes of material fact exist, regardless of this
definition.
A. Sales and Offers to Sell
“[A] contract between two [United States] companies for the
sale of the patented invention with delivery and performance in
the [United States] constitutes a sale under § 271(a) as . . .
matter of law.” Transocean Offshore Deepwater Drilling, Inc. v.
Maersk Contractors USA, Inc., 617 F.3d 1296, 1310 (Fed. Cir.
2010) (emphasis added). More specifically,
[T]he “selling” of an infringing article has both a
physical and a conceptual dimension to it. That is to
say, it is possible to define the situs of the tort of
infringement-by-sale either in real terms as including
the location of the seller and the buyer and perhaps
the points along the shipment route in between, or in
formal terms as the single point at which some legally
operative act took place, such as the place where the
sales transaction would be deemed to have occurred as
a matter of commercial law.
North Am. Philips Corp. v. Am. Vending Sales, Inc., 35 F.3d
1576, 1579 (Fed. Cir. 1994) (emphasis added). Generally, the
Federal Circuit has considered the location of the transaction
of sale to be the place where performance takes place rather
than the place where legal title passes. See id.; see also
Litecubes, LLC v. N. Light Prod., Inc., 523 F.3d 1353, 1369
(Fed. Cir. 2008) (holding products shipped f.o.b., where legal
title transferred in Canada, were still sold “within the United
States” because that is where buyers were located).
“An offer to sell is a distinct act of infringement
separate from an actual sale. An offer to sell differs from a
sale in that an offer to sell need not be accepted to constitute
an act of infringement.” Transocean, 617 F.3d at 1308 (emphasis
added). Determining whether an offer to sell within the United
States has taken place requires looking to “the location of the
future sale” not the location of the offer. Id. at 1309
(emphasis added). For example, even if two United States-based
companies negotiate abroad for a contract that is to be
performed within the United States, the offer of sale can still
be considered to exist within the United States. Id. at 1310.
The converse is also true: if the negotiation of the sale takes
place in the United States but the sale happens outside of it,
no offer of sale has taken place within the United States. Halo
Elecs., Inc. v. Pulse Elecs., Inc., 831 F.3d 1369, 1380 (Fed.
Cir. 2016) (“Pulse did not directly infringe the Halo patents
under the ‘offer to sell’ provision by offering to sell in the
United States the products at issue, because the locations of
the contemplated sales were outside the United States.”).
Siemens’s asserts GE’s Haliade-X series offshore wind
turbines infringe several claims of the ‘776 and ‘413 Patents.
GE’s Statement Undisputed Fact Supp. Mot. Summ. J. Non-
Infringement ‘413 & ‘776 Lack U.S. Infringing Act (“GE’s Facts
U.S. Act”) ¶¶ 2-3, ECF No. 150; Pl.’s Resp. Def. GE’s Statement
Undisputed Fact Supp. Mot. Summ. J. Non-Infringement ‘413 & ‘776
Lack U.S. Infringing Act & Pl.’s Suppl. Facts (“Siemens’s Facts
U.S. Act”) ¶¶ 2-3, ECF No. 195. GE has been awarded contracts
to provide Haliade-X turbines off the coast of the United States
(the projects are called Vineyard Wind and Ocean Wind I), but
they have yet to perform the contracts. GE’s Facts U.S. Act ¶
8; Siemens’s Facts U.S. Act ¶ 8. Siemens alleges, and GE does
not rebut, that even if the projects are located outside the
United States territorial sea -- which spans twelve nautical
miles from the coastline -- the Haliade-X wind turbines will be
attached to the seabed within 200 nautical miles off the United
States coast. Siemens’s Facts U.S. Act ¶ 9.
Given this information, depending on what is considered
“within the United States,” both a sale and an offer to sell
could have taken place within the United States under the
meaning of the statute.
GE appears to argue that because installations of the wind
turbines have yet to occur, sales have not taken place. Reply
Mem. Supp. Def.’s Mot. Summ. J. Non-Infringement Lack U.S.
Infringing Act 3-4, ECF No. 209. This argument is meritless.
All that is needed is a contract for sale with performance in
the United States, see Transocean, 617 F.3d at 1310, which
exists here, see GE’s Facts U.S. Act ¶ 8; Siemens’s Facts U.S.
Act ¶ 8. Furthermore, even if the sales had not materialized
into contracts -- which they have -- offers for sale would have
existed regardless, given the negotiations that took place,
constituting a second basis for an infringing act.4
4 Siemens makes some vague and partially redacted references
to negotiations taking place in the United States. See
generally Siemens’s Facts U.S. Act. Even taking for granted
that such negotiations took place, they are not relevant to
whether an offer for sale occurred in the United States.
Transocean, 617 F.3d 1309.
Siemens also argues that GE “generated interest for sale in
the [United States].” Pl.’s Resp. Def. GE.’s Mot. Summ. J.
Non-Infringement Lack U.S. Infringing Act 14, ECF No. 191.
“[T]he meaning of ‘offer to sell’ is to be interpreted according
to its ordinary meaning in contract law, as revealed by
traditional sources of authority.” Rotec Indus., Inc. v.
Mitsubishi Corp., 215 F.3d 1246, 1255 (Fed. Cir. 2000).
Generating interest in the United States market therefore could
B. Within the United States
Section 100(c) of Title 35 of the United States Code
defines the term “United States” to include the “United States
of America, its territories and possessions.” 35 U.S.C. §
100(c). “[A] patent is a sovereign grant and has no force
beyond the territorial limits of sovereignty.” Hanover Star
Milling Co. v. Allen & Wheeler Co., 208 Fed. 513, 521 (7th Cir.
1913); see also Dowagiac Mfg. Co. v. Minn. Moline Plow Co., 235
U.S. 641, 650 (1915) (“The right conferred by a patent under our
law is confined to the United States and its territories.”
(citation omitted)); Voda v. Cordis Corp., 476 F.3d 887, 901
(Fed. Cir. 2007) (“A patent right is limited by the metes and
bounds of the jurisdictional territory that granted the right to
exclude.”).
Few cases have assessed what is territorially within the
United States for purposes of patent law, and those that have
deal primarily with the applicability of patent law to various
types of vessels. See, e.g., Brown v. Duchesne, 60 U.S. 183,
198 (1856) (holding that a foreign vessel legally in a United
be sufficient to constitute an offer of sale. See id. The
summary judgment record is underdeveloped on this point.
Nevertheless, the Court need not resolve this question, because
a basis for an offer to sell already exists elsewhere -- in GE’s
undisputed contract negotiations to install the Haliade-X off
the United States coastline.
States port was not subject to patent laws); Gardiner v. Howe, 9
F. Cas. 1157, 1158 (C.C.D. Mass. 1865) (“The patent laws of the
United States afford no protection to inventions beyond or
outside of the jurisdiction of the United States; but this
jurisdiction extends to the decks of American vessels on the
high seas, as much as it does to all the territory of the
country, and for many purposes is even more exclusive.”); M-I
Drilling Fluids UK Ltd. v. Dynamic Air Inc., 99 F. Supp. 3d 969,
978 (D. Minn. 2015) (holding that patent law applied to drilling
technology on United States-flagged ships on the high seas).
The United States exercises different sovereign rights and
territorial jurisdiction at different distances from its
coastline. “[T]he United States possesses complete sovereignty
over the territorial sea -- a belt of sea that extends no more
than [twelve] miles seaward of the baseline.” WesternGeco
L.L.C. v. Ion Geophysical Corp., 776 F. Supp. 2d 342, 365–67
(S.D. Tex. 2011) (emphasis added). “[T]he United States
possesses sovereign rights over the natural resources located in
the [C]ontinental [S]helf -- the seabed and subsoil of the
submarine areas that extend beyond its territorial seas.” Id.
The Outer Continental Shelf “is defined as including all
submerged land that is beyond the outer limits of state
jurisdiction (ordinarily three nautical miles from shore) and
within the limits of national jurisdiction (ordinarily 200 miles
from shore).” Amber Res. Co. v. United States, 538 F.3d 1358,
1362 (Fed. Cir. 2008) (citing 43 U.S.C. §§ 1331(a), 1332, 1301).
This begs the question of whether patent law extends to the
Outer Continental Shelf.
The Outer Continental Shelf, is governed by the Outer
Continental Shelf Lands Act (the “OCSLA”) which mandates that:
In general. -- The Constitution and laws and civil
and political jurisdiction of the United States are
extended, to the same extent as if the outer
Continental Shelf were an area of exclusive Federal
jurisdiction located within a State, to -- (i) the
subsoil and seabed of the outer Continental Shelf;
(ii) all artificial islands on the outer Continental
Shelf; (iii) installations and other devices
permanently or temporarily attached to the seabed,
which may be erected thereon for the purpose of
exploring for, developing, or producing resources,
including non-mineral energy resources; or (iv) any
such installation or other device (other than a ship
or vessel) for the purpose of transporting or
transmitting such resources.
43 U.S.C. § 1333(a)(1)(A). Several sources of evidence --
including the plain language and legislative history of the
OCSLA, the ambit of federal jurisdiction, and the sparse caselaw
that exists on this topic -- indicate that the OCSLA affects the
scope of what can be considered “within the United States,” for
patent law purposes under 35 U.S.C. § 271(a).
1.
Plain Language & Legislative History
“It is a well-established principle of statutory
construction that absent clear evidence of a contrary
legislative intention, a statute should be interpreted according
to its plain language.” United States v. Apfelbaum, 445 U.S.
115, 121 (1980). The language of the statute indicates that the
“laws . . . of the United States” apply to items affixed to the
Outer Continental Shelf for energy generation. 43 U.S.C. §
1333(a)(1)(A). Given that the laws of the United States
encompass federal patent laws, there is no reason why patent law
would not apply to the items covered by the OCSLA.
Furthermore, the legislative history of the act supports
this reading. The act was passed in 1978, “responding to
increasingly serious domestic energy problems.” False Pass v.
Watt, 565 F. Supp. 1123, 1131 (D. Alaska 1983). The OCSLA is
the successor to the Submerged Lands Act, which created United
States jurisdiction and control over the seabed and subsoil of
the Outer Continental Shelf. H.R. Rep. No. 83-413, at 1-2
(1953). Through the OCSLA, Congress sought to extend federal
power over the area to promote “leasing,” “discovery[,] and
development.” Id. at 2,3.
The discovery of extremely valuable deposits of oil
and gas and probably sulfur in the seabed of the
Continental Shelf off the shores of the United States,
as well as its vast potential as a source for other
raw materials, gave rise to the necessity for
protection and control of the area and administration
of the development of its economic wealth, so
essential to our economy in peace or war.
S. Rep. No. 83-411, at 7 (1953). In short, “[t]here can be no
question that the primary purpose for this legislation was to
assert United States jurisdiction over the shelf, and to set up
a system for the full development of its natural resources.”
Olsen v. Shell Oil Co., 561 F.2d 1178, 1188 (5th Cir. 1977).
Its key purpose “was to expedite the exploration and development
of the [O]uter [C]ontinental [S]helf while retaining adequate
assurances that the marine and coastal environments would be
protected.” Watt, 565 F. Supp. at 1131.
“Clearly [] patent law was” somewhat similarly “enacted to
benefit society by encouraging discoveries and inventions.”
Dennis v. Pitner, 106 F.2d 142, 144 (7th Cir. 1939). The
OCSLA’s legislative intent to encourage discovery and invention
in the scope of coastal resource exploration is necessarily
compatible with patent law’s legislative intent. Patent law’s
protections are useful to encourage the desired discovery and
invention in the areas and devices governed by the OCSLA.
This is not to say that this legislative intent indicates
an unbounded desire by Congress to extend the reach of patent
law. “Congress has not,” for example, “enacted legislation that
extends [United States] patent law to cover infringement
occurring in the EEZ [United States Exclusive Economic Zone].”
WesternGeco, 776 F. Supp. 2d at 369. Nevertheless, through the
OCSLA, Congress exhibited the intent to extend federal law,
which necessarily includes patent law, at the very least to
devices or installations for energy generation attached to the
seabed within 200 miles of the coast. See 43 U.S.C. §
1333(a)(1)(A).
2.
The Ambit of Federal Jurisdiction Under the OCSLA
“[T]he federal government has jurisdiction and control
over the [O]uter [C]ontinental [S]helf.” Amber Res. Co., 538
F.3d at 1362; People of Vill. of Gambell v. Hodel, 869 F.2d
1273, 1277 (9th Cir. 1989) (“[T]he United States has extended
its dominion 200 miles beyond the three-mile marginal sea.”);
Mote v. Oryx Energy Co., 642 F. Supp. 639, 642 (E.D. Tex. 1995)
(“Artificial islands may be considered within the boundaries of
the adjacent state for purposes of determining where an accident
‘occurred’ for long-arm jurisdiction purposes.”). Several
courts have applied this maxim and confirmed that the reach of
this jurisdiction applies to patent infringement cases. See
Elbit Sys. Land v. Hughes Network Sys., LLC, No. 2:15-CV-37-RWS-
RSP, 2016 WL 3675590, at *2 (E.D. Tex. Mar. 30, 2016) (holding
venue was proper in the Eastern District of Texas “[b]ecause the
acts of alleged infringement occurred on platforms permanently
or temporarily attached to the seabed, which may be erected
thereon for the purpose of exploring for, developing, or
producing resources therefrom and because at least four of those
platforms are within 200 miles of Port Arthur, Texas” (internal
quotations omitted)); Weatherford Tech. Holdings, LLC v. Tesco
Corp., No. 2:17-CV-00456-JRG, 2018 U.S. Dist. LEXIS 183553, at
*14 (E.D. Tex. Oct. 26, 2018) (holding the same in a nearly
factually identical case). In fact, “OCSLA was intended to
apply to the full range of disputes that might occur on the
[Outer Continental Shelf] . . . . OCSLA not only defines the law
applicable to the [Outer Continental Shelf], but also grants
federal courts jurisdiction over disputes occurring there.”
Tennessee Gas Pipeline v. Hous. Cas. Ins. Co., 87 F.3d 150, 154
(5th Cir. 1996).
3.
Caselaw on this Issue
Very few cases have considered the key question in this
case: whether United States patent law applies to certain
inventions attached to the Outer Continental Shelf. The few
that have “make clear that the OCSLA, when its requirements are
satisfied, encompasses patent law claims.” Elbit Sys. Land &
C4I Ltd., 2016 WL 3675590, at *3.
The Southern District of Texas in WesternGeco L.L.C. v. Ion
Geophysical Corp. held that “[United States] substantive law,
including patent law” did not extend to “exploration activities”
of vessels traversing the seas above the Outer Continental
Shelf; it also suggested in dicta, however, that it could extend
to “devices permanently or temporarily attached to the seabed.”
776 F. Supp. 2d at 371.
More explicitly, the Eastern District of Texas has held
that, under the OCSLA, patent law applied to rigs operating on
the Outer Continental Shelf in the Gulf of Mexico. L.C.
Eldridge Sales Co. v. Azen Mfg. Pte., Case No. 6:11-cv-599, 2013
U.S. Dist. LEXIS 186151 at *4 (E.D. Tex. Nov. 13, 2013) (“The
Patent Act is a law of the United States extended through the
OCSLA.”); L.C. Eldridge Sales Co. v. Jurong Shipyards, Pte.,
Ltd., No. 6:11CV599, 2014 WL 12597719, at *2-3 (E.D. Tex. Sept.
23, 2014) (refusing to grant “judgment as a matter of law or a
new trial on the issue of whether infringing activities took
place in or were directed to the [United States]” where it was
undisputed that the rigs operated on the Outer Continental Shelf
and where the only issue of dispute was whether the rigs were
“connected to the [O]uter Continental Shelf”), aff'd in part,
610 F. App’x 1015 (Fed. Cir. 2015). Furthermore, at least one
court has explicitly rejected the argument made by GE in this
case, see Mem. Supp. Def. GE’s Mot. Summ J. Non-Infringement
U.S. Act. (“GE’s Mem. Non-Infringement U.S. Act”) 2, ECF No.
149, that WesternGeco supports the notion that waters more than
twelve nautical miles off the coast are not within the United
States for patent law purposes, see Elbit Sys., 2016 WL 3675590,
at *3 (“[D]efendants misunderstand WesternGeco, which held that
the OCSLA was inapplicable specifically because the accused
infringing activities in that case involved a marine vessel
traversing the seas and conducting seismic surveys, not devices
permanently or temporarily attached to the seabed, or to devices
or vessels meant to transport resources obtained from the
seabed.” (internal quotation marks omitted)).
Therefore, GE’s motion for summary judgment based on the
absence of a United States infringing act fails as a matter of
law, because it is undisputed that the Haliade-X wind turbines
for energy generation will be affixed to the seabed within 200
miles from the United States coastline, and a wind turbine
affixed within 200 nautical miles of the coast is “within the
United States” under patent law, 35 U.S.C. 271(a).
C. Disputes of Material Fact
This Court could have arrived at the same conclusion,
notwithstanding its holding, in light of the genuine disputes of
material fact that existed at the summary judgment stage as to
whether the Haliade-X turbines will be installed within twelve
miles of the United States coast. Even were this Court to take
GE’s allegation that the wind turbines will be more than fifteen
miles off the coast of New Jersey and more than twelve miles of
the coast of Nantucket and Martha’s Vineyard as true, GE’s Mem.
Non-Infringement U.S. Act 4, as Siemens argues, an item being
more than twelve miles off the nautical coast from one
geographic point does not necessarily guarantee that it is
located more than twelve miles from any United States coast, see
Pl.’s Resp. Def. GE’s Mot. Summ J. Non-Infringement Lack of U.S.
Act. 7-9, ECF No. 191.
Siemens disputes, and GE fails to provide any affirmative
evidence to rebut, that the wind turbines will be more than
twelve miles away from every point of the nearest United States
coastline.
V. CONCLUSION
This Court therefore DENIES GE’s Motion for
Reconsideration. The Court’s April 4, 2022 Order clarifying its
Markman interpretations was not an unfair surprise and the
clarifications were proper.
This Court ALLOWS GE’s Motion for Clarification and holds
that patent law applies to “installations and other devices
permanently or temporarily attached to the seabed, which may be
erected thereon for the purpose of exploring for, developing, or
producing resources, including non-mineral energy resources,”
within 200 miles of the coastline. See 43 U.S.C. §
1333(a)(1)(A) (emphasis supplied). Accordingly, this Court
denied GE’s motion for summary judgment for lack of a United
States infringing act because among other reasons, the Haliade-X
turbines will undisputedly be installed at least within 200
miles of the United States coast. See Def. GE’s Mot. Summ. J.
Non-Infringement Lack U.S. Act; April 4, 2022 Order 2.
SO ORDERED.
/s/ William G. Young
WILLIAM G. YOUNG
JUDGE
of the
UNITED STATES5
5 This is how my predecessor, Peleg Sprague (D. Mass. 1841-
1865), would sign official documents. Now that I’m a Senior
District Judge I adopt this format in honor of all the judicial
colleagues, state and federal, with whom I have had the
privilege to serve over the past 44 years.