Petition for Writ of Certiorari — Turn-Key-Tech, LLC v. National Film Laboratory, Inc.

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Supreme Cowt.! .

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~~ No, 931138 FEB 3 - 2008

OFFICE OF Tht Ci sik

IN THE

Supreme Court of the United States |

TuRN-Key-TEcu, LLC,

- Petitioner,

v.

NaTIONAL FILM LaBoratory, INC. (D/B/A Crest NATIONAL OPTICAL

Mep1A), Music City Optica Mepia, inc., HoLLywoop REcorDs,

INc., ConcorD Disc MANUFACTURING Corp., KRAUSS MAFFEI

CORPORATION, AND KRAUS MaFFEI KUNSTSTOFFTECHNIK GMBH,

Respondents.

On PETITION FOR A WRIT OF CERTIORARI

TO THE COURT OF APPEALS FOR THE FEDERAL CIRCUIT

PETITION FOR A WRIT OF CERTIORARI

Of Counsel: Boris ZELKIND

Counsel of Record

Patricia A. SHACKELFORD

ZELKIND & SHACKELFORD LLP

Davip C. FREDERICK

RICHARD H. STERN

KELLOGG, HuBER, HANSEN,

Toop & Evans, P.L.L.C. Sorrento Towers North

1615 M Street, N.W. 5355 Mira Sorrento Place

Suite 290

Suite 400

Washington, D.C. 20036

(202) 326-7900

San Diego, CA 92121

(858) 558-6745

Counsel for Petitioner

— g RECEIVED

COUNSEL PRESS

(800) 274-3321 + (800) 359-6859 FERS - 2004

OFFICE OF THE CLERK

SUPREME COURT, US.

QUESTION PRESENTED

The Federal Circuit affirmed the District Court’s

summary judgment of noninfringement on new grounds based

on the Federal Circuit’s own interpretation of a non-disputed

patent claim element, which was first raised sua sponte at

oral argument and never addressed by the parties or the

District Court below. The question presented is:

Whether this Court should limit the Federal Circuit’s

practice, which is in conflict with other appellate court

holdings that sua sponte rulings on mixed questions of fact

and law without notice and hearing violate a litigant’s

substantial rights, of entering judgments based on its

sua sponte interpretations of patent claims.

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RULE 29,6 CORPORATE

DISCLOSURE STATEMENT

Petitioner Turn-Key-Tech, LLC has no parent corporation

and no publicly held company owns 10 percent or more of

Turn-Key-Tech, LLC’s stock.

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TABLE OF CONTENTS

EE vias b seks ter sacons sd neens

Rule 29.6 Corporate Disclosure Statement .......

eee evens ees

Table of Cited Authorities .....................

cans brad cess dn ni sine es

Ne vin wee du oo

SE ee

SOs Co

Constitutional Provision Involved ..............

Ce nak hehe we ees

Reasons for Granting the Petition ..............

I.

The Federal Circuit’s Practice Of Issuing

Sua Sponte Constructions Of Patents Without

Giving Affected Parties Notice And An

Opportunity To Be Heard Is Inconsistent With

This Court’s Decisions And Those Of Other

Courts As To When Sua Sponte Rulings May

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Conclusion

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Contents

The Federal Circuit Has Developed A

Weli-Entrenched Practice Of Deciding

Patent Claim Construction Cases On A

Sua Sponte Basis ..................

The Federal Circuit’s Practice As

Applied In This Case Deprives

Petitioners Of Substantial Rights In

Conflict With This Court’s Decisions

re ee ee eR OER OS IETS eee i a ee teas oe

The Federal Circuit’s Judgment

Conflicts With Numerous Court

Decisions Hotding That Mixed

Questions Of Fact And Law Such As

Patent Claim Construction May Not Be

Decided By Courts Through Sua Sponte

We eeger eens se

This Case Is An Ideal And Important

Vehicle For Deciding Whether The

Federal Circuit’s Practice Is Permissible

In Patent Cases....................

Be ee eee ee 8 MO, ROPER Re eee ie an eile el gir a aes Oe

Page

1]

19

24

26

AD Ni kG ERLE tH

TABLE OF CITEDAUTHORITIES

Page

FEDERAL CASES

Arcadia, Ohio v. Ohio Power Co., 498 U.S. 73 (1990)

Pe ee re ee et ne ee ee 15

Bendet v. Sandoz Pharm. Corp., 308 F.3d 907

gl ee ores ee rere yee oy en 20

Boddie v. Connecticut, 401 U.S. 371 (1971) ...... 14

Canaan Prods., Inc. v. Edward Don & Co., 388 F.2d

a | eer Serre eka 6

Carducci v. Regan, 714 F.2d 171 (D.C. Cir. 1983)... 22

Clorox Co. Puerto Rico v. Proctor & Gamble

Commercial Co., 228 F.3d 24 (1* Cir. 2000) ... 20

Cybor Corp. v. FAS Technologies, Inc., 138 F.3d 1448

qs te. Pepweeererrerrrrr ss) te) 17, 18

Dickinson v. Zurko, 527 U.S. 150 (1999) ........ 9

Exxon Chem. Patents, Inc. v. Lubrizol Corp., 64 F.3d

eke, Es i.) meer he rucs 8

Exxon Chem. Patents, Inc. v. Lubrizol Corp.,

137 F.30 1475 (Ped. Cor. VOR) wont accc cade 14

Franklin v. Oregon State Welfare Div., 662 F.2d 1337

‘cg Ae: ) ne eer err ere ry 21

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Cited Authorities

Page

Glaxo Group Ltd. v. TorPharm, Inc., 153 F.3d 1366

BPN Oe WPI ls 84x he ee ee 18

Graham v. John Deere Co., 383 U.S. | (1966) .... 17

Hartmann v. Prudential Ins. Co. of America, 9 F.3d

EOE GA BID ois bewkewcanecex, 23-24

Hoechst Celanese Corp. v. BP Chems. Ltd., 78 F. -

cit a |) err annie ae 6

In re Arthur Treacher’s Franchisee Litigation,

689 F.2d 1137 (3" Cir. 1982) ................ 23

In re Cortright, 165 F.3d 1353 (Fed. Cir. 1999) ... 9

Juidice v. Vail, 430 U.S. 327 (1977) ............ _15

Kamen v. Kemper Financial Servs., Inc., 500 U.S.

via Sh | Ee EN ne, Al ok 15

Kolstad v. American Dental Ass’n, 527 U.S. 526

PRE GS sic sso a as ee ee 16

Landon v. Plasencia, 459 U.S. 21 tee 19

Lankford v. Idaho, 500 U.S. 110(1991) ......... 19

Liberty Mut. Ins. Co. v. Wetzel, 424 U.S. 737 (1976)

Vil

Cited Authorities

Page

Lufkins v. Leapley, 965 F.2d 1477 (8" Cir. 1992) .. 13

Mannesman Demag Corp. v. M/V Concert Express,

rei MB ee a | eae 20

Markman vy. Westview Instruments, Inc., 52 F.3d 967

(Fed. Cir. 1995), aff’d, 517 U.S. 370 (1996) ... = 25

Markman vy. Westview Instruments, Inc., 517 U.S. 370

PN Ut ceca akan eae erate ere 4,16, 17, 18

Massey v. Congress Life Ins. Co., 116 F.3d 1414

‘Rig ef 2 Eee ear ere ey erreur 21

Modine Mfg. Co. v. U.S. Int'l Trade Comm'n, 75 F.3d

1545 (Fed. Cir. 1996), abrogated on other

grounds, Festo Corp. v. Shoketsu Kinzoku Kogyo

Kabushiki Co., 234 F.3d 558 (Fed. Cir. 2000)

Fe AT POL OPEN Te eae STE 6

Mullane v. Central Hanover Bank & Trust Co.,

(gtk Me fk) | rrr ee ewer are te 14

Nelson v. Adams USA, Inc., 529 U.S. 460 (2000) .. 13, 14, 20

Nolen v. Gober, 222 F.3d 1356 (Fed. Cir. 2000) ... 23

Otis Elevator Co. v. George Washington Hotel Corp.,

gee’ Fi i | Breer 20-21

Vil

Cited Authorities

Page

Principal Mutual Life Ins. Co. y. Charter Barclay

Hosp., Inc., 81 F.3d 53 (7" Cir. 1996) ......... 13

Rochin v. California, 342 U.S. 165 (1952) ....... 14

Rodime PLC v. Seagate Tech., Inc., 174 F.3d 1294

(Fed. Cir. 1999) ..... Sete ere ee ro 8

Seal-Flex, Inc. v. Athletic Track & Court Constr.,

172 F.3d 836 (Fed. Cir. 1999) ............... 9,10

Shockley v. Jones, 823 F.2d 1068 (7" Cir. 1987)... aa

Snider v. Melindez, 199 F.3d 108 (2d Cir. 1999)... 20

Steel Co. v. Citizens for a Better Env t, 523 U.S. 83

SFE caesar ee awe Ca eee ee 15

Stewart Title Guar. Co. v. Cadle Co., 74 F.3d 835

(Fo Ge WE is eeepc eos 13, 23

Stoyanov v. Immigration & Naturalization Serv.,

172 F.3d 731 (9" Cir. 1999) ................. 22-23

Thomas R.W. v. Massachusetts Dept of Educ.,

130 F.3d 477 (1" Cir. 1997) ................. 13

U.S. Indus. Chems., Inc. v. Carbide & Carbon Chems.

Corp., 315 U.S. 668 (1942) ................. 17

ix

- Cited Authorities

Page

United States v. Burke, 504 U.S. 229 (1992) ... 15-16, 19

United States v. Feola, 420 U.S. 671 (1975) ......

United States v. James Daniel Good Real Property,

pie Ee St |) Sn near eerie

Williams v. Chrans, 894 F.2d 928 (7" Cir. 1990) ..

STATE CASES

Brown y. Triple “D” Drilling Co., 585 P.2d 987

OE 2 rrr errr ees eee eer coe

Cortina v. Cortina, 98 So.2d 334 (Fla. 1957) .....

Gall v. Scroggy, 725 S.W.2d 867 (Ky. Ct. App. 1987)

PEE. 2p ek een ch ens cea ekees Coreeees

Holzer v. Jochim, 557 N.W.2d 57 (N.D. 1996) ....

Kerrigan, Estess, Rankin & McLeod v. State,

711 So.2d 1246 (Fla. Dist. Ct. App. 1998) .....

Storer Communications of Jefferson County, Inc. v.

Oldham County Bd. Of Educ., 850 S.W.2d 340

Cy, CL Bg. TOE) ona cen cate cdecssins

19

14

23

21

Cited Authorities

Page

UNITED STATES CONSTITUTION

Be 2,14

STATUTE

Oe a BEE his kde see eek whole 2

OTHER AUTHORITIES

Gregory D. Leibold, Jn Juries We Do Not Trust:

Appellate Review of Patent Infringement

Litigation, 67 U. Colo. L. Rev. 623 (1996) ..... 1]

William C. Rooklidge & Mathew F. Weil, Judicial

Hyperactivity: The Federal Circuit's Discomfort

with Its Appellate Role, 15 Berkeley Tech. L.J. 725

SE eek ey ea eek ura 9,11

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TABLE OF APPENDICES

Appendix A — Opinion Of The United States Court

Of Appeals For The Federal Circuit Dated

September 8, 2003 .. 2... cece ese e ere enene

Appendix B — Judgment Of The United States

District Court For The District Of California Filed

OC ee eee ee ee

Appendix C — Order Of The United States District

Court For The Central District Of California Filed

June 6, 2002 And Entered June 10, 2002 ......

Appendix D — Order Construing Claims Of U.S.

Patent 4,422,998 Or The United States District

Court For The Central District Of California Dated

January 8, 2002 And Filed January 18, 2002 ...

Appendix E — Order Of The United States Court

Of Appeals For The Federal Circuit Denying

Petition For Rehearing Dated And Filed October

Rp. ee Pee Oe re rere Poe re ree Tee

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Turn-Key-Tech, LLC, respectfully petitions for a writ of

certiorari to review the judgment of the United States Court of

Appeals for the Federal Circuit in this case.

INTRODUCTION

This case involves an egregious exercise of a court’s power

to definitively resolve a case by issuing a sua sponte ruling on

an issue not raised in the District Court or argued by either party

on appeal. Without giving petitioner any notice that it intended

to foreclose petitioner’s suit for patent infringement against

respondents and an opportunity to present arguments against

the court’s newfound theory, the Federal Circuit sua sponte

affirmed summary judgment against petitioner on an alternate

ground that had not been briefed by the parties or passed on by

the District Court. That decision runs counter to numerous

decisions of this Court holding that a party’s substantial rights

may not be adjudicated by a court in a sua sponte ruling without

notice and an opportunity to be heard. It also directly conflicts

with the decisions of seven other circuits which hold that a court

may not sua sponte grant summary judgment against a party

without affording that party notice of the grounds for judgment

and an opportunity to present evidence and argument.

The Federal Circuit’s decision here was not an isolated error,

but rather the latest manifestation of an accepted practice of

issuing sua sponte claim constructions that has drawn dissent

from a distinct minority on the court. Because the question

presented goes fundamentally to the manner of how patents are

adjudicated and there is no expectation that the Federal Circuit

will reverse itself on its own, this Court’s review is necessary.

OPINIONS BELOW

The court of appeals’ opinion (App. 1a-8a) is not officially

reported. It is reported unofficially at 74 Fed. Appx. 58, 2003

WL 22097823. The court of appeals’ order denying rehearing

2

(App. 72a-73a) is unreported. The final judgment of the district

court and its underlying claim construction and summary

judgment orders (App. 9a-10a, 39a-71a, 11a-38a) are not

reported.

JURISDICTION

The court of appeals entered its judgment on September 8,

2003. Petitioner, Turn-Key-Tech, LLC (“Turn-Key”), timely

filed a petition for rehearing, which was denied on October 14,

2003. The Chief Justice subsequently extended the time within

which to file a petition for a writ of certiorari to and including

February 3, 2004. App. No. 03A526. This Court has jurisdiction

under 28 U.S.C. § 1254(1).

CONSTITUTIONAL PROVISION INVOLVED

The Fifth Amendment to the Constitution provides, in

pertinent part: “No person shall be. . . deprived of life, liberty,

or property, without due process of law. . . .”

STATEMENT

Although the question presented does not require the Court

to grasp the technology underlying this patent infringement

dispute, the consequences of the Federal Circuit’s erroneous

sua sponte ruling is best understood against the backdrop of

Turn-Key’s underlying claim of infringement. The invention of

the Sorensen patent (U.S. Pat. No. 4,422,998, App. 74a-92a) is

an improved method or process for making injection molded

plastic articles, such as the compact discs (“CD”) and digital

versatile discs (“DVD”’) that are the subject of the infringement

claim in this case. Sorensen’s invention introduced to the field

of injection molding the new concept of using a substantially

enclosed mold that permits a finished plastic article to be

removed from the mold without fully opening the mold.

3

Sorensen accomplished this by providing an enclosed

passageway or “guide conduit” formed in the mold as the two

halves of the mold separate slightly. The finished CD or other

plastic article then exits the mold via the guide conduit. Without

use of the invention, manufacturers of CDs have to open molds

fully and use expensive and complicated robotic arms to reach

into the opened molds to extract the discs. Sorensen’s invention

makes such equipment unnecessary and permits much faster,

and thus more efficient and economical, production of molded

articles.

In May 2001, Sorensen’s exclusive licensee, Turn-Key, filed

three complaints in the Central District of California against

the respondent manufacturers of CDs and DVDs, accusing them

of infringing the patent. The fourth and fifth respondents, the

disc manufacturing equipment! suppliers for the three firms that

Turn-Key sued, brought an action for a declaratory judgment of

non-infringement and invalidity. All four cases were

consolidated.

The guide conduit of the claimed molding process is

claimed in paragraph (d) of claim 1:

(d) Separating the two mold parts . . . to create

a substantially enclosed guide conduit . . . ;

The removal of the plastic article via the guide conduit is

claimed in paragraphs (e) and (f) of claim 1:

(e) Ejecting the plastic product into said guide

conduit; and

1. The disc manufacturing equipment that the respondents

respectively sell or use include the CD-94 mold. The infringement issue

is whether the CD-94 mold, when used in its normal manner, carries out

the patented process. That in turn depends, in this case, on whether the

CD-94 mold uses a guide conduit as described in the patent.

4

(f) Guiding and transporting the ejected product

from between the mold parts through the guide

conduit.

In January 2002, after a “Markman hearing,” the district

court issued an order construing the claims. (App. 39a-7 1a).

Based entirely on the claim construction order’s interpretation

of the term “guide conduit” of paragraph (d), respondents moved

for summary judgment of noninfringement. They asserted that

the machines that they respectively sold or used did not contain

a “substantially enclosed guide conduit,” as that term was

construed by the District Court. In June 2002, the court granted

the motion and subsequently entered judgment holding that

respondents do not infringe the patent. (App. 11a-38a, 9a-10a).

The court made no findings regarding any aspect of the case or

the patent other than paragraph (d) of claim 1. Among

other things, the court did not address whether the molded

product was ejected into the guide conduit, as described in

paragraph (e) of the claim.’ (App. lla-38a).

Turn-Key timely appealed the judgment to the Federal

Circuit. In its briefs, Turn-Key argued that the judgment was

based on an erroneous interpretation of the term “guide conduit”

in paragraph (d) of claim 1. Turn-Key argued that under a proper

claim construction, the respondents’ process included the guide

conduit of the claimed invention and, thus, infringed the patent.

2. The name refers to this Court’s decision in Markman v. Westview

Instruments, Inc., 517 U.S. 370, 388-89 (1996) (holding that issues of

claim construction are matters more suitable for determination by judge

than by jury).

3. The only discussion of the ejection step below was in the

Markman phase of the District Court proceedings and concerned whether

ejection included pulling the article from the mold as contrasted with

forcefully pushing or discharging it out. (App. at 62a-64a, 63a n.8).

ere

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Respondents in turn argued in their brief only that the district

court properly interpreted paragraph (d) and that, under that

claim construction, they did not infringe. None of the parties

briefed other issues, such as how ejection of the article is

accomplished under paragraph (e) and whether the respondents’

process ejects CDs and DVDs in that same way.

At the end of oral argument of the appeal, Turn-Key was

asked for the first time whether infringement would occur if a

new interpretation were given to the language of paragraph (e)

of the claim. The new interpretation, never asserted before the

District Court by any party, never addressed by the District Court,

and never before suggested by any party, became the basis of

the Federal Circuit’s opinion. (App. 5a).

On September 8, 2003, the Federal Circuit affirmed the

District Court’s decision of noninfringement in favor of

respondents. (App. 1a-8a). The Federal Circuit agreed with

Turn-Key that the District Court had misinterpreted the patent

by inserting into paragraph (d) an extraneous limitation about

the guide conduit. (App. 4a). But the Federal Circuit found the

error to be “harmless” because of the court’s new, sua sponte

interpretation of paragraph (e). (App. 5a, 8a). Paragraph (e)

requires that the molded articles be ejected into the guide

conduit. According to the Federal Circuit, that paragraph requires

the two mold halves to first finish separating before the molded

article can be ejected into the guide conduit. (App. 5a).

But without input or briefing from the parties, the Federal Circuit

misunderstood the patented method, which actually ejects the

article into the guide conduit before the two mold parts finish

separating. The respondents practice their molding method in

the same way, by ejecting CDs and DVDs before the mold parts

finish separating, but under the Federal Circuit’s sua sponte

construction such ejection was not covered by the patented

method.

6

Turn-Key petitioned for rehearing, pointing out that the

district court had never considered the new claim interpretation

and that Turn-Key had never had an opportunity to brief the

new issue. Turn-Key also pointed out that the court’s novel,

sua sponte claim construction excluded from the scope of the

claim the very process described in the patent specification,

contrary to established canons of patent claim construction.‘

The Federal Circuit denied rehearing on October 6, 2003.

(App. 72a-73a).

REASONS FOR GRANTING THE PETITION

I. THE FEDERAL CIRCUIT’S PRACTICE OF

ISSUING SUA SPONTE CONSTRUCTIONS

OF PATENTS WITHOUT GIVING AFFECTED

PARTIES NOTICE AND AN OPPORTUNITY TO

BE HEARD IS INCONSISTENT WITH THIS

COURT’S DECISIONS AND THOSE OF OTHER

COURTS AS TO WHEN SUA SPONTE RULINGS .

MAY PROPERLY BE ISSUED

The Federal Circuit held that Turn-Key’s patent had not

been-infringed based upon a sua sponte claim construction ruling

4. See, e.g., Modine Mfg. Co. v. U.S. Int’l Trade Comm’n, 75 ¥.3d

1545, 1550 (Fed. Cir. 1996) (“a claim interpretation that would exclude

the inventor’s device is rarely the correct interpretation; such an

interpretation requires highly persuasive evidentiary support”), abrogated )

on other grounds, Festo Corp v. Shoketsu Kinzoku Kogyo Kabushiki i

Co., 234 F.3d 558 (Fed. Cir. 2000); Canaan Prods., Inc. v. Edward Don i

& Co., 388 F.2d 540, 544 (7th Cir. 1968) (“The terms [patentee] uses

should be interpreted to read upon the structure he describes in the

patent.”); see also Hoechst Celanese Corp. v. BP Chems. Ltd., 78 F.3d

1575, 1581 (Fed. Cir. 1996) (““We share the district court’s view that it

is unlikely that an inventor would define the invention in a way that

excluded the preferred embodiment, or that persons of skill in this field

would read the specification in such a way.”).

7

regarding claim terms not disputed by the parties on appeal.

The court failed to afford Turn-Key adequate notice of the newly

identified claim construction issue and a meaningful opportunity

to be heard on that issue. That ruling is thus fundamentally

flawed and must be vacated. The decision below is merely the

latest in a long series of decisions in which the Federal Circuit

has arrogated to itself the authority to decide how to construe a

patent, without regard to what the Patent Office originally

concluded in patenting the invention or what the parties

themselves might argue in support of or opposition to a claim

of infringement. Because patents represent valuable property

interests recognized explicitly in the Constitution, and because

the Federal Circuit’s practice of deciding patent cases with

sua sponte rulings impinges on a patent holder’s substantial

rights, the petition should be granted and the decision below

vacated. The issue presented in this case goes to the heart of the

patent dispute resolution process designed by Congress.

A. The Federal Circuit Has Developed A Well-

Entrenched Practice Of Deciding Patent Claim

Construction Cases On A Sua Sponte Basis

The decision below represents simply the latest in a line of

cases in which the Federal Circuit has reached out to determine

issues of claim construction not raised or briefed by any of the

parties on appeal. Although the prevalence of that approach is

difficult to quantify, a number of published decisions in recent

years reveals a substantial gap between a clear majority of the

judges on the court and a vocal, if unheeded, minority. On a

recurring basis, the Federal Circuit routinely feels itself

unconstrained by any authority from engaging in sua sponte

claim construction without permitting input from the parties or

consideration in the first instance by the district court charged

with developing a factual record to inform the construction of

the patent. A distinct minority of judges on the Federal Circuit

8

has complained in published dissenting or concurting opinions

about that practice, but has been unable to garner enough votes

to force an en banc reassessment of the court’s rule and thus

has been functionally muzzled by a clear majority that sees no

difficulty in deciding fundamental issues of patent claim

construction without briefing or argument from the parties. In

adopting its practice, however, a majority on the Federal Circuit

has never articulated a justification for it or a source of judicial

authority for deciding such important property interests without

giving the affected parties an opportunity to be heard on the

precise point of law or fact at issue.

In Exxon Chem. Patents, Inc. y; Lubrizol Corp., 64 F.3d

1553, 1557-61 (Fed. Cir. 1 995), for example, the Federal Circuit

adopted a claim construction that was advanced by neither party

on appeal. See 64 F.3d at 1569 (Nies, J -, dissenting). As Judge

Nies observed in dissent in that case, “[b]y advocating a different

interpretation of the claim sua sponte, the majority required

Exxon to litigate during trial not only its opponent’s position

but also the unknowable position of the [Federal Circuit].” Jd.

But the Federal Circuit has demonstrated that it does expect

litigants to anticipate such unknowable positions. A few years

later, the court showed that its sua sponte approach to claim

construction in the Exxon case was not an isolated instance.

In Rodime PLC v. Seagate Tech., Inc., 174 F.3d 1294 (Fed. Cir.

1999), the Federal Circuit took precisely the same approach.

The court there reversed the district court on an issue of claim

construction that neither party had raised or briefed on appeal.

See id. at 1302.

The Federal Circuit’s sua sponte claim construction practice

is not limited to appeals from district courts in patent

infringement cases. It extends as well to the court’s appellate

review of Patent Office refusals to issue patents to applicants.

In a setting comparable to that of this case, the Federal Circuit

9

reversed the agency’s rejection of aclaim to a method to “restore

hair growth” on the basis of a sua sponte claim construction.

In re Cortright, 165 F.3d 1353, 1359 (Fed. Cir. 1999).

The agency rejected the claim based on its interpretation of

“restore hair growth” as a total, rather than partial, cure of

baldness as understood by a person of ordinary skill in the art.

The Federal Circuit conducted its own prior art search and found

a number of patents, not considered by the Office or the applicant

~ in the proceedings below, which supported the court’s conclusion

that a person of ordinary skill would interpret the phrase to mean

a partial cure of baldness. Jd. at 1356-59; see William C.

Rooklidge & Mathew F. Weil, Judicial Hyperactivity:

The Federal Circuits Discomfort with Its Appellate Role,

15 Berkeley Tech. L.J. 725, 730-31 (2000) (“Judicial

Hyperactivity”). The court therefore reversed the agency

determination of unpatentability. The Office sought rehearing,

on the ground that proper appellate review of agency action

must be on the basis of the record before the agency,

cf. Dickinson v. Zurko, 527 U.S. 150 (1999) (requiring APA-

based appellate review of Patent Office determinations), but

the Federal Circuit denied rehearing. Judicial Hyperactivity,

supra at 731-34.

The discomfort with the Federal Circuit’s prevailing practice

among a distinct minority of the judges came into full view in

Seal-Flex, Inc. v. Athletic Track & Court Constr., 172 F.3d 836

(Fed. Cir. 1999) (per curiam), which addressed a sua sponte

construction of a patent offered by Judge Rader. The Federal

Circuit had decided the case in a per curiam decision, noting

that “where, as here, the parties agree to a particular construction

of the claims which is adopted by the district court, and neither

party disputes that construction on appeal, this court declines

to raise an issue sua sponte which the parties have not presented

on appeal.” Jd. at 842. In a separate opinion, however, Judge

10

Rader concurred in the result based upon his sua sponte claim

construction analysis. /d. at 847-51. Ina separate concurrence,

Judges Bryson and Newman strenuously disagreed with Judge

Rader’s approach and stressed their Joint opinion that the Federal

Circuit should not engage in sua sponte claim construction

(id. at 851-52):

The requirement that appellate courts normally limit

themselves to issues that the parties have preserved

below and raised on appeal serves important interests

of both trial and appellate processes. The trial process

benefits from a preservation-of-error requirement

because it frees trial courts to focus on the factual

and legal issues the parties identify as being in

dispute, without having to worry that a misstep on

an issue not disputed or objected to by the parties

will result in a reversal. The requirement benefits

the appellate process by letting appellate courts focus

on issues that the trial courts have expressly ruled

on and that the parties have briefed on appeal, rather

than having to venture opinions regarding issues that

have never been briefed, argued, or even adverted

to in the course of the proceedings.

Thus, on those occasions when the Federal Circuit panel is

composed of judges from the minority on that court which

disapproves of the practice of sua sponte appellate claim

construction, the litigants may be protected from the unfairness

that the practice creates. On most other occasions, however,

as in the present case, litigants are vulnerable to being deprived

of notice and an opportunity to be heard on claim construction.

A party’s property rights to have a patent adjudicated in

accordance with due process standards should not rest on the

fortuity of drawing a panel that consists of at least two members

of the minority of Federal Circuit judges who believe that

1]

sua sponte rulings of patent claim construction issues are

improper.

The Federal Circuit’s internal debate and split over

sua sponte claim constructions has not gone unnoticed by

commentators. They have sharply criticized the Federal Circuit’s

predominant view that such sua sponte rulings are a proper

exercise of judicial power. As one commentator observes,

“Now the bar is left to wonder why and when the court will

consider arguments raised for the first time on appeal and

arguments not made by either party but concocted by the court

itself.” Judicial Hyperactivity, supra at 736-39, 745-47. Another

commentator criticizes the Federal Circuit’s sua sponte ruling

practice because it alters fundamentally the role of judge and

jury in patent infringement cases. “[I]f the Federal Circuit

persists in applying its own interpretation of the claims to the

facts without a new trial, there truly is no remaining purpose

for a jury in this process.” Gregory D. Leibold, /n Juries We Do

Not Trust: Appellate Review of Patent Infringement Litigation,

67 U. Colo. L. Rev. 623, 670 (1996).

B. The Federal Circuit’s Practice As Applied In This

Case Deprives Petitioners Of Substantial Rights In

Conflict With This Court’s Decisions

1. In this case, the Federal Circuit applied its sua sponte

claim construction practice by devising a wholly new

construction of the patent and deciding based on that

construction that the patent had not been infringed.

That conclusion occurred after the Federal Circuit was persuaded

by Turn-Key that the District Court had erroneously rejected

Turn-Key’s infringement claim based on paragraph (d) of claim

1. Thus, Turn-Key’s substantial property rights in its claim of

infringement against respondents were adversely affected by

the Federal Circuit’s sua sponte ruling concerning the claim

12

~

construction of the “ejection” step of paragraph (e) of claim |

of the patent. Turn-Key was denied both reasonable notice and

any meaningful opportunity to respond to the Federal Circuit’s

newly raised issue of claim construction, one that was not raised

or briefed by the parties on appeal, nor ever argued to or

addressed by the District Court. Turn-Key had appealed the

District Court’s summary judgment ruling based on the District

Court’s erroneous construction of the term “guide conduit” in

paragraph (d) of claim 1 of Turn-Key’s patent. The parties’

briefing addressed only that specific claim element and the

propriety of the District Court’s interpretation of that claim

element. The Federal Circuit agreed with Turn-Key that the

District Court erred in construing the term “guide conduit” by

importing an extraneous limitation. But then the Federal Circuit

also determined that a different claim element, “ejection”

(and its timing in relation to mold opening), which was not in

dispute on appeal and which was not raised or briefed by the

parties, was determinative of the case.

The Federal Circuit did not provide any indication to

Turn-Key prior to oral argument that this new issue was under

judicial consideration. The Federal Circuit did not request

supplemental briefing about the claim element that it, and not

the parties, felt was dispositive of the matter. The Federal

Circuit’s only indication that it was considering an entirely

different claim construction issue from the one raised by the

parties occurred in the final two minutes of rebuttal in the oral

argument. Not realizing that the court’s decision would turn on

an undisputed issue on appeal, Turn-Key spent the entirety of

its written submissions and Opening argument, and the majority

of its rebuttal argument, addressing issues relating to the

interpretation of the term “guide conduit” of paragraph (d) of

claim 1, upon which the underlying summary judgment motion

and the resulting District Court decision was based.

ok WW wena 4A

13

The mere asking of three questions at the end of oral

argument did not provide Turn-Key with reasonable notice that

paragraph (e) of claim 1 would be subjected to interpretation

by the Federal Circuit on this appeal and furthermore would

provide the basis for the court’s affirmance of the

noninfringement judgment. Those questions amounted to

nothing more than a glimpse into the panel’s thinking and

certainly did not afford Turn-Key a proper and fair opportunity

to respond to or put forth its best evidence regarding the newly

raised issues of claim construction and infringement.’

In that respect, the Federal Circuit’s error was closely

analogous to the one corrected by this Court in Nelson v. Adams

USA, Inc., 529 U.S. 460 (2000). There, this Court reversed a

Federal Circuit judgment that an officer was immediately liable,

upon the filing of an amended pleading, for an attorney fee award

against the officer’s company in a patent infringement case.

As this Court made clear, “due process does not countenance

such swift passage from pleading to judgment in the pleader’s

favor.” Id. at 465. Because the officer there “was never afforded

a proper opportunity to respond to the claim against him,” this

Court held that “due process affords him” the “right to contest

on the merits” the substance of his argument. Jd. at 468, 472.

2. The Federal Circuit’s decision to rule sua sponte on the

patent construction and infringement claims was inconsistent

5. Asa general rule, federal appellate courts do not consider points

raised for the first time at oral argument, in order to avoid the injustice

and surprise that such a situation presents. See, e.g., Thomas R.W. v.

Massachusetts Dep't of Educ., 130 F.3d 477, 480 (1st Cir. 1997);

Principal Mutual Life Ins. Co. v. Charter Barclay Hosp., Inc., 81 F.3d

$3, 56 (7th Cir. 1996); Stewart Title Guar. Co. v. Cadle Co., 74 F.3d

835, 836-38 (7th Cir. 1996); see also Lufkins v. Leapley, 965 F.2d 1477,

1485 (8th Cir. 1992) (Heaney, J., dissenting); Williams v. Chrans, 894

F.2d 928, 932 n.1 (7th Cir. 1990). The same reasoning applies here.

14

with this Court’s decisions in analogous areas of law. As a matter

of elemental due process, this Court has long held that the

Constitution, at a minimum, requires prior notice and an

opportunity to be heard. Mullane v. Central Hanover Bank &

Trust Co., 339 U.S. 306, 314 (1950); Boddie v. Connecticut,

401 U.S. 371, 377 (1971); United States v. James Daniel Good

Real Property, 510 US. 43, 53 (1993). These procedural due

process safeguards are deeply rooted in our judicial system.

Rochin v. California, 342 U.S. 165, 170-171 (1952). The Federal

Circuit denied Turn-Key those procedural safeguards when it

affirmed the finding of non-infringement based entirely upon

its sua sponte claim construction without input from the parties.

See Nelson, 529 U.S. at 468 (party must be “afforded a proper

opportunity to respond to a claim” before it is adjudicated against

that party); Mullane, 339 U.S. at 314 (“{t]he notice must be of

such nature as reasonably to convey the required information”);

Boddie, 401 U.S. at 377 (“persons forced to settle their claims

of right and duty through the judicial process must be given a

meaningful opportunity to be heard.”).°

6. Turn-Key’s opportunity under appellate rules of procedure to

request a rehearing (which it, in fact, did) cannot substitute for the type

of process necessary to present its arguments on the issue of claim

construction to counter the sua sponte decision of the court. As is the

case with the vast majority of all such petitions, the rehearing petition

here was summarily denied. (App. 72a-73a). Because there is such a

heavy presumption against the likelihood that a rehearing petition will

have merit, arguments that might have carried more substantial weight,

if not carried the day, simply are not given the same credence as if they

had been presented when the case was still being briefed, argued, and

considered for decision by the panel. As the federal courts of appeals

have recognized, a summary denial of a rehearing petition does not

constitute a decision on the merits of the arguments raised in the petition.

Exxon Chem. Patents, Inc. v. Lubrizol Corp., 137 F.3d 1475, 1479-80

(Fed. Cir. 1998) (collecting cases). Thus, a summary denial of a rehearing

petition does not provide the opportunity to be heard required by the

Fifth Amendment.

15

To safeguard inadvertent intrusions by courts on litigants’

substantial rights, this Court has been careful to employ and

sanction sua sponte rulings only in situations where due process

rights were not implicated — indeed, only where the very power

of the court is at issue. See, e.g., Liberty Mut. Ins. Co. v. Wetzel,

424 U.S. 737, 740 (1976) (determination that court lacks

jurisdiction over case); Juidice v. Vail, 430 U.S. 327, 331 (1977)

(issue of party’s standing to litigate also an appropriate subject

for sua sponte rulings because it goes to constitutional power

of court to exercise judicial power). That limitation is

appropriate, for where the court itself lacks power to determine

the rights of parties, the court must acknowledge that fact even

on its own motion. See Steel Co. v. Citizens for a Better Envt,

523 U.S. 83, 94 (1998) (“Without jurisdiction the court cannot

proceed at all in any cause. Jurisdiction is power to declare the

law, and when it ceases to exist, the only function remaining to

the court is that of announcing the fact and dismissing the

cause.”’).

The second area in which this Court has upheld the practice

of issuing sua sponte rulings is when a court considers purely

legal issues underlying or governing the dispute that the parties

have brought directly to that court. As this Court explained in

Kamen v. Kemper Financial Servs., Inc., “[w]hen an issue or

claim is properly before the court, the court is not limited to the

particular legal theories advanced by the parties, but rather

retains the independent power to identify and apply the proper

construction of governing law.” 500 U.S. 90, 99 (1991).

Thus, issues about the validity or even applicability of the law

that has been assumed by the parties to apply to the issue at

hand can properly be ruled on by a court sua sponte. Arcadia,

Qhio v. Ohio Power Co., 498 U.S. 73, 77 (1990) (Court

sua sponte found statute not applicable to dispute where parties

did not question applicability of statute); United States v. Burke,

16

504 U.S. 229, 246 (1992) (Scalia, J., concurring) (arguing for

sua sponte consideration of validity of statute allegedly

governing dispute); see also Kolstad v. American Dental Ass n,

527 U.S. 526, 540 (1999) (issue of proper legal standards for

imputing liability to employer in punitive damages context was

“so integral to decision of the case that they could be considered

‘fairly subsumed’ by the actual questions presented” and thus

appropriate for sua sponte consideration). But that does not mean

that a court is free, as the Federal Circuit erroneously thought

here, to issue a ruling on a wholly different claim term from

that which the parties appealed to the court.

3. The Federal Circuit’s error is particularly plain in view

of this Court’s recognition that an issue of patent claim

construction is a mixed question of fact and law. Moreover, an

issue of claim construction does not go to the court’s power to

hear the case. Accordingly, claim construction falls into neither

of the two categories judicially recognized as appropriate for

sua sponte consideration.

That claim construction is a mixed fact/law issue was made

clear in this Court’s decision in Markman vy. Westview

Instruments, Inc., 517 U.S. 370 (1996). Even as the Court was

holding that patent claims should be decided by judges, not

juries, it explained that claim construction is ceded to a judge

“notwithstanding its evidentiary underpinnings,” id. at 390, only

because judges are more suited than juries to interpret complex

legal instruments (id. at 388):

We said in Miller v. Fenton, 474 US. 104, 114

(1985), that when an issue “falls somewhere between

a pristine legal standard and a simple historical fact,

the fact/law distinction at times has turned on a

determination that, as a matter of the sound

administration of justice, one judicial actor is better

on

17

positioned than another to decide the issue in

question.” So it turns out here, for judges, not juries,

are the better suited to find the acquired meaning of —

patent terms.

Id. at 388 (citation omitted).

Before so concluding, the Court repeatedly referred to the

evidentiary proof and expert testimony often needed to aid claim

construction. E.g., id. at 378 (“receipt of evidence”),

385 (“evidentiary proof’), 387 (“aided by expert testimony”);

see also id. at 386 (“ultimate issue of mixed fact and law’’).

In recognizing that claim construction involves determination

of a mixed fact/law question having factual and evidentiary

underpinnings, the Court adopted a similar standard to the one

set out for “obviousness” in Graham y. John Deere Co.,

383 U.S. 1, 17 (1966) (holding obviousness an issue of law

subject to factual inquiries into scope and content of prior art,

differences between prior art and claims at issue, and level of

ordinary skill in pertinent art). See also U.S. Indus. Chems.,

Inc. v. Carbide & Carbon Chems. Corp., 315 U.S. 668, 678

(1942) (court often must receive expert testimony to ascertain

meaning of technical or scientific terminology so that court is

aided in its understanding of patent).

4. Notwithstanding this Court’s clear statements in its

Markman opinion that a patent claim presents a mixed question

of fact and law, the Federal Circuit has construed Markman to

mean that judges may decide a patent claim as an issue of pure

law — and that misreading has become accepted dogma for the

Federal Circuit. Thus, in Cybor Corp. v. FAS Technologies, Inc.,

138 F.3d 1448 (Fed. Cir. 1998) (en banc), the court chose to

read the foregoing passage from this Court’s Markman decision

as “addressing under which category, fact or law, claim

construction should fall and not whether it should be classified

Nt

18

as having two components, fact and law.” /d. at 1455.’

Based on that misreading of Markman, the Federal Circuit

erroneously perceived this Court ‘as reaffirm[ing] that, as a

purely legal question, we review claim construction de novo on

appeal including any allegedly fact-based questions relating to

claim construction.” /d. at 1456.8 The Federal Circuit’s

misunderstanding of Markman has thus led it to the erroneous

view that it has the authority to make sua sponte claim

construction determinations — as though the words of a patent

claim exist in a vacuum untethered to the practical context of

the device being described and the art surrounding the invention.

See Glaxo Group Ltd. v. TorPharm, Inc., 153 F.3d 1366, 1373-

74 (Fed. Cir. 1998) (reaffirming Federal Circuit’s reading of

Markman to hold that court can consider alternate grounds for

summary judgment because claim construction raises “question

of law’”’).

7. Compare Markman, 517 U.S. at 384 n.10 (stating that Court is

not deciding case on basis of “law/fact distinction” because it has “more

specific reason for decision” — which is that judges are better suited

than juries to interpret complex legal instruments).

8. That reading of this Court’s decision in Markman sparked

disagreement among some of the Federal Circuit judges. Judge Bryson,

for example, perceived that this Court left room for the Federal Circuit

to take into account a district court’s “superior access to one of the

pertinent tools of construction,” facts that might be developed to show

the meaning of the patent language. Cybor Corp., 138 F.3d at 1463

(Bryson, J., concurring). Chief Judge Mayer (joined by Judge Newman)

read Markman as “stopp[ing] short of authorizing us to find facts de

novo when evidentiary ¢@isputes exist as part of the construction of a

patent claim and the district court has made these findings without

committing clear error.” /d. at 1464 (Mayer, C.J., concurring); see also

id. at 1473-78 (Rader, J., concurring in part and dissenting in part).

19

C. The Federal Circuit’s Judgment Conflicts With

Numerous Court Decisions Holding That Mixed

Questions Of Fact And Law Such As Patent Claim

Construction May Not Be Decided By Courts

Through Sua Sponte Rulings

1. Numerous Supreme Court Justices — including Justices

Stevens, O’Connor, Scalia, and Ginsburg — have deplored the

type of practice applied by the Federal Circuit in this case.

They have stressed that sua sponte rulings, when made without

the necessary procedural safeguards, are contrary to the

adversarial nature of our judicial system. For example, Justice

Stevens has noted that sua sponte rulings issued without notice

and a hearing deprive a court of the benefits of the adversary

process, which plays a critical role in our system of justice.

Lankford v. Idaho, 500 U.S. 110, 127 (1991). Justice Scalia has

stated that “[t]he rule that points not argued will not be

considered is more than just a prudential rule of convenience;

its observance, at least in the vast majority of cases, distinguishes

our adversary system of justice from the inquisitorial one.”

Burke, 504 U.S. at 246 (Scalia, J., concurring). Those views are

in accord with the position taken by Justice Stewart, who

described the refusal to consider issues neither briefed nor argued

by counsel as “the most basic principle of our adversary system

of justice.” United States v. Feola, 420 U.S. 671, 697 (1975)

(Stewart, J., dissenting). The importance of giving counsel a

reasonable opportunity to comment on an issue that has been

raised sua sponte by the court stems from “[o]Jur belief that

debate between adversaries is often essential to the truth-seeking

function of trials.” Lankford, 500 U.S. at 127; see also Landon

v. Plasencia, 459 U.S. 21, 36-37 & n.9 (1982) (O’Connor, J.)

(opinion for the Court noting that if “hearing is to ensure fairness,

it must provide [affected party] an opportunity to present her

case effectively” before issues are resolved without proper

20

briefing and argument). And Justice Ginsburg’s opinion for the

Court in Ne/son stressed the due process error of “adding ...a

party and simultaneously amending the judgment to obiigate

him individually” without affording him an opportunity to be

heard. 529 U.S. at 465.

2. The Federal Circuit’s decision also conflicts with the

consistently applied procedural rule that a party’s claim — here,

Turn-Key’s infringement claim — shall not be dismissed on the

merits sua sponte “without at least giving plaintiffs notice of

the proposed action and affording them an Opportunity to address

the issue.” Clorox Co. Puerto Rico v. Proctor & Gamble

Commercial Co., 228 F.3d 24, 30 (1st Cir. 2000). Yet that is

exactly what the Federal Circuit did. The court affirmed a ruling

of summary judgment against Turn-Key on an alternative round

created sua sponte by the appeals court without affording

Turn-Key notice and “an opportunity to address the issue.” Jd.

When considering the type of mixed questions of law and fact

that arise in summary judgment motions, numerous federal

circuits have rejected that type of approach as violating a basic

right of due process reflected in the Federal Rules of Civil

Procedure. See, e.g., id. at 30; Bendet v. Sandoz Pharm. Corp.,

308 F.3d 907, 912 (8th Cir. 2002) (“A district court may grant

summary judgment sua sponte only if the ‘party against whom

judgment will be entered was given sufficient advance notice

and an adequate opportunity to demonstrate why summary

judgment should not be granted.’”) (citation omitted);

Mannesman Demag Corp. v. M/V Concert Express, 225 F.3d

587, 595 (Sth Cir. 2000) (“A court may grant summary judgment

sua sponte but must provide adequate notice and an opportunity

to respond akin to that required by Fed. R. Civ. P. 56(c).”);

Snider v. Melindez, 199 F.3d 108, 114-15 (2d Cir. 1999)

(reversing sua sponte direction of entry of a “strike” in judgment

dismissing prisoner’s complaint); Otis Elevator Co. v. George

21

Washington Hotel Corp., 27 F.3d 903, 910 (3d Cir. 1994)

(holding that court “may not grant summary judgment sua sponte

unless the court gives notice and an opportunity to oppose

summary judgment”).

The Federal Circuit’s sua sponte judgment directing entry

of summary judgment against Turn-Key without affording Turn-

Key notice and an opportunity to oppose such a ruling on the

wholly new ground concocted by the court unquestionably runs

afoul of a rule followed in at least seven other circuits. As the

Ninth Circuit has explained, a court “may dismiss an action on

its own motion for failure to state a claim, but only after the

court takes the proper procedural steps.” Franklin v. Oregon

State Welfare Div., 662 F.2d 1337, 1340-41 (9th Cir. 1981)

(explaining that process includes “notify[ing] the plaintiff of

the proposed action and afford[ing] him an opportunity to submit

written argument in opposition”); see also Massey v. Congress

Life Ins. Co., 116 F.3d 1414, 1417 (11th Cir. 1997) (“courts

have strictly enforced the requirement that a party threatened

by summary judgment must receive notice and an opportunity

to respond”) (collecting cases).

—

3. The Federal Circuit’s judgment conflicts more generally

with numerous lower courts at both the federal and state levels

that have addressed the proper scope of sua sponte rulings in a

variety of substantive contexts. Where a sua sponte ruling affects

substantial property interests without affording the affected party

both reasonable notice and an opportunity to be heard, courts

have held that such rulings violate a litigant’s due process rights.

See, e.g., Brown v. Triple “‘D” Drilling Co., 585 P.2d 987, 990

(Kan. 1978) (finding that a sua sponte trial court order reinstating

an action on a promissory note against one of the defendants

did not afford the defendant due process of law); Kerrigan,

Estess, Rankin & McLeod vy. State, 711 So.2d 1246, 1248-49

(Fla. Dist. Ct. App. 1998) (per curiam) (holding that trial court

i iis

fe

sua sponte ruling that law firm’s contingency fee contract was

unenforceable violated firm’s rights to adequate notice and an

opportunity to be heard); Grissom v. Grissom, 886 S.W.2d 47,

57-58 (Mo. Ct. App. 1994) (reversing trial court sanctions

imposed sua sponte on two attorneys for failing to meet certain

pleading requirements on the ground that sua sponte sanctions

order in this context failed to afford the attorneys due process

rights of notice and a hearing). In Grissom, one of the attorneys

was not present and therefore had no notice of a possibility of

sanctions; the other attorney was present at the hearing, but only

became aware of the proposed sanctions minutes before the

hearing and had only fifteen minutes to prepare his arguments.

The Missouri Court of Appeals held that such notice was

inadequate and, further, that any argument that occurred at the

hearing on the issue of sanctions was not meaningful given the

short notice afforded counsel. Grissom, 886 S.W.2d at 57-58.

The positions of those state courts — that a litigant’s

substantial rights on mixed questions of fact and law may not

be adjudicated through sua sponte rulings — mirrors the position

taken by federal courts of appeals that have addressed analogous

claims in a variety of circumstances. The D.C. Circuit, for

example, has declined to address sua sponte a putative

constitutional violation of an employee’s complaint about a

reassignment. As then-Judge Scalia wrote for the court,

“[t]he premise of our adversarial system is that appellate courts

do not sit as self-directed boards of legal inquiry and research,

but essentially as arbiters of legal questions presented and argued

by the parties before them.” Carducci v. Regan, 714 F.2d 171,

177 (D.C. Cir. 1983). In similar fashion, the Ninth Circuit has

held that the Board of Immigration Appeals (“BIA”) overstepped

constitutional boundaries when it raised and decided sua sponte

the issue of an asylum seeker’s credibility. Stoyanov v.

Immigration & Naturalization Serv., 172 F.3d 731, 734-35

2

wy)

(9th Cir. 1999). The court found that the BIA’s sua sponte

credibility ruling violated Stoyanov’s right to due process. /d.

Even the Federal Circuit itself has reprimanded a lower

court for exceeding constitutional limitations with a sua sponte

ruling. In Nolen v. Gober, the Court of Appeals for Veteran

Claims sua sponte had reconsidered the issue of whether the

veteran’s claim was well grounded, rather than directly

addressing the veteran’s contentions regarding the merits of his

disability claim. 222 F.3d 1356, 1360 (Fed. Cir. 2000).

The Federal Circuit noted that the decision of the Court of

Appeals for Veteran Claims that the claim was not well grounded

— an issue which neither party raised nor briefed — implicated

‘fundamental principles of fairness.” Jd. at 1360-61.°

As Judge Posner has observed for the Seventh Circuit,

“[o]ur system unlike that of the Continent is not geared to having

judges take over the function of lawyers.” Hartmann y.

Prudential Ins. Co. of America, 9 F.3d 1207, 1214 (7th Cir.

9. Numerous other state courts, both of last resort and appellate,

as well as federal appellate courts, have ruled that sua sponte orders

violate due process. See, e.g., Stewart Title, 74 F.3d at 836-37; Holzer v.

Jochim, 557 N.W.2d 57, 58-59 (N.D. 1996); Storer Communications of

Jefferson County, Inc. v. Oldham County Bd. of Educ., 850 S.W.2d 340,

341-42 (Ky. Ct. App. 1993); Gall v. Scroggy, 725 S.W.2d 867, 869 (Ky.

Ct. App. 1987); see also In re Arthur Treacher s Franchisee Litigation,

689 F.2d 1137, 1148-49 (3rd Cir. 1982) (Third Circuit found that district

court did not properly exercise its discretion when it sua sponte without

notice ordered different relief which franchisor had not requested and

to which franchisee had no opportunity to defend, argue, or present

evidence); Shockley v. Jones, 823 F.2d 1068, 1072-73 (7th Cir. 1987)

(dismissal under Rule 12(b)(6) without notice or hearing is improper

because it is a decision on the merits with full res judicata effect); Cortina

v. Cortina, 98 So.2d 334, 336-37 (Fla. 1957) (Chancellor’s sua sponte

modification of child support decree without notice and hearing was

voidable on appeal).

24

1993). In his view, permitting appellate courts to decide cases

on issues not raised or briefed by the parties would effectively

eliminate the adversary system of justice in the federal courts.

Id. at 1215.

D. This Case Is An Ideal And Important Vehicle For

Deciding Whether The Federal Circuit’s Practice

Is Permissible In Patent Cases

The court below issued an unpublished, memorandum

decision definitively acknowledging that the district court had

erred in rejecting petitioner’s claims on the one issue presented

by the parties for review to the Federal Circuit. On its own,

without notice to the parties, the court reached out to affirm the

District Court’s judgment of noninfringement based on its

sua sponte consideration of a different element of the patent

claim. As a legal issue, therefore, the case presents the question

of the propriety of sua sponte rulings in a neat, clean vehicle

uncluttered by other collateral issues. This Court can decide

whether the Federal Circuit appropriately exercised its authority

and then vacate and remand the case for a proper consideration

of petitioner’s case (including briefing and argument).

In reaching a decision on the question presented, the Court need

not understand the science or engineering underlying the patent

itself but rather must determine simply whether claim

construction is suitable for a sua sponte ruling.

This case also presents an ideal vehicle because the issue is

one of claim construction, which this Court has stressed is a

mixed question of law and fact. To properly interpret claim

language, a court must have a full understanding of the technical

teaching of the patent. However, the Federal Circuit does not

and cannot be expected to have a working knowledge of every

possible field of invention. It is the role of the parties and their

witnesses to supply the court with the information necessary

Pe

for it to understand the invention and make an educated

interpretation of the patent claims. But the Federal Circuit should

not be empowered to disregard those critical advocacy functions

in determining the existence of a patent or an infringement of

it. Without a proper recognition that the parties’ advocacy efforts

illuminate the court’s decision-making, there is a substantial

risk (as exemplified in this case) that the court will not recognize

the true scope or meaning of the claim terms in light of the

written specifications viewed from the perspective of one of

ordinary skill in the art. See Markman v. Westview Instruments,

Inc., 52 F.3d 967, 979-80, 986 (Fed. Cir. 1995), aff'd, 517 U.S.

370 (1996). Thus, this case also presents this Court with an

opportunity to clarify that the Federal Circuit’s reading of

Markman is erroneous and the likely cause of its misapplication

of judicial authority to issue sua sponte rulings.

Whether the Court also chooses to issue any broader

pronouncement about the general propriety of a court’s issuing

sua sponte rulings is a question the Court need not confront at

the certiorari stage. What is evident from the reported cases and

commentaries is that the Federal Circuit’s practice of issuing

sua sponte claim construction rulings in patent cases appears to

be by far the most consistent and prevalent use of sua sponte

authority among all the courts in the Nation in an area of

litigation involving the substantial constitutional rights of a party.

Thus, it is especially appropriate for this Court to rein in the

Federal Circuit as an excessive abuser of judicial authority to

decide matters without further hearing or argument from the

parties.

For that reason as well, this case also raises important

questions about the administration of justice for the patent

system, devised to protect one of the most significant

constitutional rights enjoyed under the Constitution — the right

to protect the fruits of one’s creative genius with a patent.

26

But that right is substantially devalued when a patent holder

claiming infringement has no assurance of being able to present

arguments to the court of last resort in the vast bulk of all patent

cases because of the Federal Circuit’s assumption of authority

to issue sua sponte claim construction rulings. Given the Federal

Circuit’s exclusive jurisdiction over appeals in patent cases, this

Court should therefore grant review to correct the court of

appeals’ errant approach, which encroaches impermissibly on

the rights of litigants in patent cases.

CONCLUSION

The petition for a writ of certiorari should be granted.

In the alternative, the Court may wish to reverse summarily or

to grant, vacate, and remand with instructions to remand the

case for further proceedings in the District Court.

Respectfully submitted,

Of Counsel: Boris ZELKIND

Counsel of Record

Patricia A. SHACKELFORD

ZELKIND & SHACKELFORD LLP

Sorrento Towers North

5355 Mira Sorrento Place

Suite 290

San Diego, CA 92121

(858) 558-6745

Davip C. FREDERICK

RICHARD H. STERN

KELLOGG, HuBER, HANSEN,

Topp & Evans, P.L.L.C.

1615 M Street, N.W.

Suite 400

Washington, D.C. 20036

(202) 326-7900

Counsel for Petitioner

February 3, 2004

APPENDIX

la

APPENDIX A — OPINION OF THE UNITED STATES

COURT OF APPEALS FOR THE FEDERAL CIRCUIT

DATED SEPTEMBER 8, 2003

UNITED STATES COURT OF APPEALS

FOR THE FEDERAL CIRCUIT

02-1613, -1614, -1615, -1616

TURN-KEY-TECH, LLC,

Plaintiff-Appellant,

v.

NATIONAL FILM LABORATORY, INC.

(doing business as Crest National Optical Media),

MUSIC CITY OPTICAL MEDIA, INC.,

HOLLYWOOD RECORDS, INC., CONCORD DISC

MANUFACTURING CORP., KRAUSS MAFFEI

CORPORATION, and KRAUSS MAFFEI

KUNSTSTOFFTECHNIK GMBH,

Defendants-Appellees.

DECIDED: September 8, 2003

Before MAYER, Chief Judge, BRYSON, and LINN, Circuit

Judges.

LINN, Circuit Judge.

Turn-Key-Tech, LLC (“Turn-Key”) appeals from

decisions of the United States District Court for the Central

2a

Appendix A

District of California, which granted summary judgment in

favor of all named defendant manufacturers and sellers of

injection mold systems, holding that the accused systems do

not utilize the process claimed in U.S. Patent No. 4,422,998

(“the ‘998 patent”). We affirm.

sane

Se en ee ee

The °998 patent is directed to a controlled ejection

method for injection molding. Claims 1 and 2 provide:

Pairs WE ahaha CNN

1. A method of cyclic injection molding of plastic

where the mold comprises two parts which are

separated by a parting surface and at least one

cavity situated internally to the boundaries of the

parting surface, and wherein each production cycle

comprises the steps of:

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ee noe aa tks Me Me einen eked wo

(a) Combining the two mold parts by

moving, in a predetermined direction, the

mold parts in relation to each other:

(b) Injecting plastic in a fluid state into a

cavity situated within the parting surface:

AOA SER we (6s Rs De wilh

(c) Solidifying the injected plastic in the

cavity, thereby creating a plastic product;

(d) Separating the two mold parts by

moving, in a direction opposite to the

predetermined direction, said mold parts

in relation to each other to create a

Sitde R Le MASINI BAT on ON RK dake 200 alse

3a

Appendix A

substantially enclosed guide conduit having

contours defined by the regions of the parting

surface and the internally positional cavity/

ies that are exposed subsequent to separation

and leading in a direction substantially

perpendicular to said predetermined

direction;

(e) Ejecting the plastic product into said

guide conduit; and

(f) Guiding and transporting the ejected

product from between the mold parts through

the guide conduit.

2. A method according to claim 1, wherein step (f)

comprises the step of:

(g) Transporting the ejected product through

the guide conduit at an orientation directed

by the contours of the guide conduit.

°998 patent, col. 5, |. 27-col. 6, |. 21.

Defendant Kraus Maffei Corp. manufactures and sells an

injection molding machine with a mold set (“CD-94 mold’)

designed to manufacture an optical disc. The other defendants

use that machine to manufacture CDs and DVDs. The district

court described in its opinion the composition and operation of

the CD-94 mold, and none of the parties raises any disputed

issues of material fact regarding the district court’s description

of the device used to perform the accused process.

a ee

4a

Appendix A

The primary dispute in this case focuses on the construction

of the term “guide conduit” found in limitation (d) of claim 1,

in such cases, “[w]here the parties do not dispute any relevant

facts regarding the accused product ... but disagree over

possible claim interpretations, the question of literal

infringement collapses into claim construction and is amenable

to summary judgment.” General Mills, Inc. v. Hunt- Wesson, Inc.,

103 F.3d 978, 983 (Fed. Cir. 1997) (citing Athletic Alternatives,

Inc. v. Prince Mfg., Inc., 73 F.3d 1573, 1578 (Fed. Cir. 1996)).

In its claim construction ruling, the district held that the

“substantially enclosed guide conduit” is “a tube or channel

that is almost entirely closed in from the outside environment,

and that carries materials from one place to another and that

helps to direct the materials’ progressive motion.” The district

court later clarified its claim construction, holding that “the guide

conduit itself nevertheless must help to Carry and direct the

molded product’s progressive motion.” Based on that modified

construction, the district court granted defendants’ motions for

summary judgment of non-infringement, concluding that the

guide rails, kicker plate, and discharge chute of the CD-94 mold

do not comprise a guide conduit as construed by the court.

We hold that the district court erred in its interpretation of

guide conduit. A review of the claim language, written

description, and prosecution history show that a guide conduit

is simply a passageway through which a plastic product is

moved. The plain language of the claims describes the guide

conduit as an area within the mold. The district court’s definition

attributes a function to the guide conduit, namely that it direct

the material’s motion. That is an added limitation not found in

the claim language or properly imposed by the intrinsic record.

SR

Sa

Appendix A

Even though the district court unduly narrowed the guide

conduit limitation, summary judgment of non-infringement

is nonetheless appropriate in this case because under the

correct claim construction, the CD-94 mold still does not

have a guide conduit as defined by the claims. See Zelinski

v. Brunswick Corp., 185 F.3d 1311, 1316 (Fed. Cir. 1999)

(affirming grant of summary judgment of non-infringement

despite district court’s unduly narrow claim construction).

Because the CD-94 mold lacks a guide conduit, the defendant

manufacturers and users of the CD-94 mold do not practice

the claimed method of injection molding. To the extent that

there is a passageway through which a plastic product is

moved, that passageway is not formed by “[s]eparating the

two mold parts” as required by the claims. The cavity created

by the separation of the mold parts is not a guide conduit.

Part (e) of claim 1 requires that the plastic product be ejected

“into said guide conduit.” The plastic product is already in

the cavity upon separation. Moreover, the guide conduit must

“lead[ ] in a direction substantially perpendicular to said

predetermined direction.” The cavity created by separating

the two mold parts in the device used in the accused process

only leads in a direction parallel to the predetermined

direction. It is not until the product begins moving in a

perpendicular direction that it enters the guide conduit.

In the CD-94 mold, the plastic product moves perpendicularly

into a discharge chute with the assistance of the guide rails.

Neither the guide rails nor the discharge chute are created by

the separation of the mold parts. Thus, use of the CD-94

mold does not involve a guide conduit as described in the

method claim, and no reasonable juror could conclude

otherwise.

6a

Appendix A

With respect to infringement under the doctrine of

equivalents, the parties dispute whether the amendment to

claim 1 constituted a narrowing amendment and triggered

prosecution history estoppel. The original claims did not

require that the guide conduit be “substantially enclosed.”

Specifically, the relevant June 10, 1983 amendment to claim

1 provided:

(d) Separating the two mold parts by moving, in

a direction opposite to the predetermined

direction, said mold parts in relation to each other

to create a substantially enclosed guide conduit

having contours defined by the regions of the

parting surface and the internally positional

cavity/ies that are exposed subsequent to

separation and leading in a direction substantially

perpendicular to said predetermined direction;

(e) Ejecting the plastic product into [a] said guide

conduit [which leads in a direction substantially

perpendicular to said predetermined direction];

and

(f) Transporting the ejected product through the

guide conduit[, the contours of said conduit,

substantially being defined by regions of the

parting surface and the internally positioned

cavity/ies, which are exposed subsequent to

separation].

We agree with the district court that this is a narrowing

amendment. The original claim did not require that the guide

7a

Appendix A

conduit be substantially enclosed. Turn-Key admits that the

amendment narrowed the claim in that respect, but argues

that the claim was broadened because the amended claim

removed a limitation that substantially all of the contours of

the guide conduit be defined by regions of the parting and

cavity surfaces. We disagree. There is little meaningful

difference between the language “the contours of said guide

conduit substantially being defined by the regions of the

parting surface ...” and “a substantially enclosed guide

conduit having contours defined by the regions of the parting

surface. .. .”” Regardless whether the claim was broadened

in any way, the claim was narrowed with respect to the new

requirement that the guide conduit be substantially enclosed.

Prosecution history estoppel was triggered with respect to

that limitation. See generally Festo Corp. v. Shoketsu Kinzoku

Kogyo Kabushiki Co., 535 U.S. 722, 737-40 (2002) (noting

that narrowing amendments may give rise to a rebuttable

presumption of prosecution history estoppel) (citing Warner-

Jenkinson Co. v. Hilton Davis Chem. Co., 520 U.S. 17, 33

(1997)). Other than arguing that the claim was not in fact

narrowed, Turn-Key did not present any argument to this

court that it overcame any presumption of surrender.

Even if Turn-Key could rebut any presumption of

surrender, no reasonable juror could conclude that the accused

CD-94 mold operates in the same way as the claimed

invention. The claims require that the mold parts separate to

create a substantially enclosed guide conduit. While the use

of guide rails and a discharge chute may perform the same

function and achieve the same result as the claimed process,

they do so in a different way. Because the way in which the

accused device operates is different from the method claimed,

8a

Appendix A

the differences are not insubstantial, the claims cannot be

infringed under the doctrine of equivalents, and no reasonable

juror could conclude otherwise.

II

The district court misconstrued the term “guide conduit.”

That error, however, was harmless because under the correct

claim construction, the CD-94 mold lacks a guide conduit.

Without a guide conduit, the defendant users and

manufacturers of the CD-94 mold do not practice the claimed

method. Therefore, summary judgment of non-infringement,

both literally and under the doctrine of equivalents was

appropriate.

9a

APPENDIX B— JUDGMENT OF THE UNITED STATES

DISTRICT COURT FOR THE DISTRICT OF

CALIFORNIA FILED AUGUST 9, 2002

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CV 01-4158 LGB (MCx)

CV 01-4165 LGB (MCx)

CV 01-4536 LGB (MCx)

CV 01-5314 LGB (MCx)

IN RE: TURN-KEY-TECH MATTERS AND ALL

CONSOLIDATED ACTIONS

This Document Relates to: All Actions

JUDGMENT

Pursuant to this Court’s June 10, 2002 summary judgment

order regarding non-infringement of U.S. Patent 4,422,998 and

August 9, 2002 order granting Defendants Hollywood Records

and Krauss Maffei Kunststofftechnik’s motion for summary

judgment, Defendant National Film Laboratory Inc., dba Crest

National Optical Media’s motion to voluntarily dismiss its

remaining counterclaims without prejudice pursuant to Fed. R.

Civ. P. 41(a) (2), and Defendants Krauss-Maffei, Krauss Maffei

Kunststofftechnik, Concord Disc Manufacturing Corp., Music

City Optical Media, Inc., and Hollywood Records, Inc.’s motion

to dismiss all remaining counterclaims and claims without

10a

Appendix B

prejudice pursuant to Fed. R. Civ. P. 41(a) (2), ITIS HEREBY

ORDERED, ADJUDGED, AND DECREED AS FOLLOWS:

1) Defendants have not infringed and do not infringe the

4,422,998 patent;

2) Plaintiff Turn-Key-Tech shall take nothing by its

complaint; and

3) This judgment hereby terminates Case Nos. CV 01-

4158, CV 01-4165, CV 01-4536, and CV 01-5314.

IT ISSO ORDERED.

Dated: August 9, 2002

s/ Lourdes G. Baird

LOURDES G BAIRD

United States District Judge

lla

APPENDIX C — ORDER OF THE UNITED STATES

DISTRICT COURT FOR THE CENTRAL DISTRICT

OF CALIFORNIA FILED JUNE 6, 2002 AND

ENTERED JUNE 10, 2002

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CV 01-4158 LGB (MCx)

CV 01-4165 LGB (MCx)

CV 01-4536 LGB (MCx)

CV 01-5314 LGB (MCx)

IN RE: TURN-KEY-TECH MATTERS AND ALL

CONSOLIDATED ACTIONS,

This Document Relates to: All Actions

ORDER GRANTING DEFENDANTS CREST, KM,

CONCORD, AND MC’S MOTIONS FOR

SUMMARY JUDGMENT

I. INTRODUCTION

In these consolidated cases, Turn-Key-Tech

(“Turn-Key’’) accuses National Film Laboratories, Inc. d.b.a.

Crest National Optical Media (“Crest”), Krauss-Maffei

Corporation (“KM”), Concord Disc Manufacturing

Corporation (“Concord”), Music City Optical Media Inc.,

(“MC”), and Hollywood Records of patent infringement.

Specifically, it alleges that these Defendants have been

practicing a process claimed in U.S. Patent 4,422,998 patent

(“the 998 patent”) which was issued to Jens Ole Sorensen

on December 27, 1983. Turn-Key brings the instant actions

as the exclusive licensee of the 998 patent which expired

12a

Appendix C

on April 22, 2002. The Court held a Markman hearing on

January 14, 2001 and issued its order (“Markman Order’)

construing the contested patent claims on January 18, 2001.

Defendants KM, Crest, Concord, and MC now bring two

motions for summary judgment regarding literal

non-infringement and non-infringement under the doctrine

of equivalents. Because both motions for summary judgment

make essentially similar arguments, the Court collectively

deals with them here.

For reasons set forth below, the Court GRANTS

Defendants’ motions for summary judgment.

Il. FACTUAL AND PROCEDURAL BACKGROUND

Turn-Key accuses Defendants of infringing the ’998

patent. Specifically, at issue in the ’998 patent are Claims 1,

2,5, and 16. The following facts are taken from the Markman

Order. Moreover, undisputed facts regarding Defendants’

allegedly infringing product, the CD-94 mold, are delineated

here as well.

A. Background on the Patent

The °998 patent entitled “Controlled Ejection Method

for Injection Molding” was issued to Sorensen on December

27, 1983 and relates to the field of injection molding plastics.

Injection molding is a manufacturing process used to make

plastic products by injecting fluid plastic into a mold cavity

and allowing the plastic to solidify into the general shape of

the mold cavity to produce the plastic part. Once the product

is removed from the mold, the process continuously repeats.

13

3a

Appendix C

Sorensen stated that the method protected by the ’998 patent

constituted an improvement from prior art in terms of the

orientation, speed of injection, and the sterility involved. ’998

patent at Col. 1. 11. 27-30. The method, moreover, could be

performed basically without the need of auxiliary moving

parts or vulnerable stationary elements such as pins and

blades. /d. at 11.

B. Claim 1 of the ’998 Patent

Though Claims 1, 2, 5, and 6 of the ’998 patent are

specificaly at issue in the present litigation, Claim 1 is the

only independent claim in the 998 patent. Moreover, because

the Court finds an analysis of Claim 1(d) to be dispositive

for purposes of the instant motions, only Claim 1 is directly

addressed here. Claim | reads:

[] a method of cyclic injection molding of plastic

where the mold comprises two parts which are

separated by a parting surface and at least one

cavity situated internally to the boundaries of the

parting surface, and wherein each production cycle

comprises the steps of:

(a) Combining the two mold parts by

moving, in a predetermined direction,

the mold parts in relation to each other;

(b) Injecting plastic in a fluid state into

a cavity situated within the parting

surface;

14a

Appendix C

(c) Solidifying the injected plastic in

the cavity, thereby creating a plastic

product;

(d) Separating the two mold parts by

moving, in a direction opposite to the

predetermined direction, said mold parts

in relation to each other to create a

substantially enclosed guide conduit

having contours defined by the regions

of the parting surface and the internally

position[ed] cavity/ies that are exposed

subsequent to separation and leading in

a direction substantially perpendicular

to said predetermined direction;

(e) Ejecting the plastic product into said

guide conduit; and

(f) Guiding and transporting the ejected

product from between the mold parts

through the guide conduit.

Exhibit 2 to Decl. of Robinson in Support of KM’s Motion,

998 patent at Col. 5 11. 27-38, Col. 6 11. 1-16.

C. Claim Interpretation Law

In Markman vy. Westview Instruments, Inc., 517 U.S. 370

(1996), the Supreme Court held that the interpretation of a

patent claim is a matter of law exclusively within the

scope of the court and is not a factual question for the jury.

lSa

Appendix C

Id. at 372. The Markman decision suggested that trial courts

could consider various types of evidence when interpreting

a patent, including expert testimony. See id. at 388-90. Shortly

after the Supreme Court handed down Markman, the Federal

Circuit expanded on the Court’s dicta concerning evidence

available to trial courts in interpreting patent claims.

See Vitrionics Corp. v. Conceptronic, Inc., 90 F.3d 1576,

1581-83 (Fed. Cir. 1996). The Federal Circuit held that if

intrinsic evidence can, by itself, resolve ambiguity in a patent

term, then a court may not rely on extrinsic evidence, such

as expert testimony, to construe the term. /d. at 1583. Trial

courts may use extrinsic evidence only when intrinsic

evidence fails to illuminate the meaning of the disputed claim.

Id. Moreover, extrinsic evidence cannot broaden the reach

of a claim or contradict explicit language. /d. Thus, courts

can only examine extrinsic evidence if the evidence does

not contradict the claim language, the specification, or the

prosecution history but instead supplements it. /d. at 1584-85.

The Federal Circuit detailed a hierarchy of specific types

of evidence that courts may consider. Thus, when interpreting

a patent, trial courts must <irst look at the language of the

claim itself. Jd. at 1582. « «arts should typically construe

terms by their common, customary meaning, but a patentee

is allowed to define his own terms in the specification section

of the patent. Jd. Therefore, courts must always review the

specification which, when setting forth an embodiment of

the invention, frequently provides explicit definitions of the

claim terms. /d. The language in the specification is

dispositive, and “it is the single best guide to the meaning of

the disputed term.” /d. However, a patent’s claims are not

limited to the specification’s best mode, preferred

loa

Appendix C

embodiment, specific objects, or illustrative examples, and

it is erroneous to read limitations from the specifications into

the claims. See Laitram Corp. v. Cambridge Wire Cloth Co.,

863 F.2d 855, 865 (Fed. Cir. 1988) (“References to a preferred

embodiment, such as those often present in a specification,

are not claim limitations.”); Rolls-Royce Ltd. v. GTE Valeron

Corp., 800 F.2d 1101, 1108 (Fed. Cir. 1987) (“Reference to

an object does not constitute in itself a limitation in the

claims.”). In addition, a court may consider the prosecution

history of the patent as evidence of meaning. /d. This history

contains the complete record of all the filings and

examinations before the Patent and Trademark Office,

including representations made by the applicant regarding

the significance of claims and terms. /d. The history also

limits the interpretation of terms by recording the exclusion

of any term definition disclaimed during the prosecution. Jd.

D. Markman Order Regarding Claim 1 of the °998

patent

In applying the aforementioned standards, the Court

concluded that:

1. “Two mold parts” refers to the mating halves

of the mold as a whole and not to individual

components that the halves may possess.

2. “Parting surface” refers to the faces of the two

mold parts that either touch or lie adjacent when

the mold parts are brought together. The faces of

the two mold parts must touch each other at some

point.

17a

Appendix C

3. “Cavity” refers to the hollow space that is

surrounded by a parting surface.

4. “Combining” refers to the act of bringing the

two mole halves into or joining the two mold

halves in a close union or whole by moving one

or both of them towards each other.

5. “Injecting plastic in a fluid state into a cavity

situated within the parting surface” refers to the

act of forcefully introducing plastic that is capable

of flowing into a hollow space surrounded by a

parting surface.

6. “Solidifying the injected plastic in the cavity,

thereby creating a plastic product” refers to the

act of changing the fluid plastic to a state where

the plastic has relative firmness, coherence of

particles, or persistence of form.

7. “Separating” in Element (d) refers to the act

of keeping apart or dividing the two mold halves

by moving one or both of them away from each

other.

8. “[T]o create a substantially enclosed guide

conduit” in Element (d) refers to the process

whereby the result is a substantially enclosed

guide conduit.

18a

Appendix C

9. The “substantially enclosed guide conduit”

refers to a tube or channel that is almost entirely

closed in from the outside environment, and that

carries materials from one place to another and

that helps to direct the materials’ progressive

motion.

10. The portion of the Element (d) language

stating that the “substantially enclosed guide

conduit having contours defined by the regions

of the parting surface and the internally

position[ed] cavity/ies that are exposed

subsequent to separation” refers to the

requirement that the outlines of the body or figure

cf the conduit be formed only from the regions of

the parting surfaces and cavity surfaces that are

revealed or uncovered after the “separating”

process so that they can be viewed by the eye.

11. The portion of the Element (d) language stating

that the “substantially enclosed guide conduit”

lead “in a direction substantially perpendicular to

[the] said predetermined direction” refers to the

requirement that the conduit lead in a direction

almost entirely perpendicular to the predetermined

direction that one or both of the mold parts were

moving toward the other during the process when

they were being brought together.

12. “Ejecting the plastic product into said guide

conduit” refers to the process of expelling or

otherwise driving the molded plastic product into

the conduit.

19a

Appendix C

13. “Guiding and transporting the ejected product

from between the mold parts through the guide

conduit” refers to the process of carrying or

directing of the product from the space between

the mold parts to the end or to an exit of the

conduit.

Markman Order at 29-30.

E. Defendants’ CD-94 Mold

KM manufactures and sells optical disc manufacturing

systems to companies which manufacture and distribute

optical discs such as CDs, DVDs, CD-R, CD Single, DVD

Mini, and a full range of optical business cards. KM’s

Statement of Uncontroverted Facts and Conclusions of Law

(“KM’s Statement of Facts”) §] 5. KM customers MC, Crest,

and Concord use the KM optical disc manufacturing system.

Id. § 8. The KM equipment includes an injection molding

machine equipped with a mold set (“CD-94 mold”) designed

to manufacture an optical disc. Jd. § 9; Crest’s Statement of

Uncontroverted Facts and Conclusions of Law (“Crest’s

Statement of Facts”) § 2. The CD-94 mold has a movable

mold half and a stationary mold half. Crest’s Statement of

Facts § 4; Turn-Key’s Statement of Genuine Issues of Material

Fact (“Turn-Key’s Statement of Genuine Issues)

4 5-6. The female mold part has a female cavity surface.

KM’s Statement of Facts § 13. Radially outside of the female

cavity surface is the mold ring. Jd. § 15. The female mold

part also contains a conical side which connects the face of a

female centering ring with the mold ring. /d. §j 16. In the

center of the female cavity surface is a sprue bushing

20a

Appendix C

including a sprue channel through which molten resin is

forced during the molding process. Jd. 4 17. The female

centering ring has four radial channels. The first radial

channel contains a mobile guide rail located near the top of

the female mold part. /d. § 18. The rail is actuated by an

external pneumatic cylinder and is attached to the cylinder’s

rod. /d. The second radial channel contains a second mobile

guide rail located near the bottom of the female mold part.

Id. 4 19. This rail is also actuated by an external pneumatic

cylinder and is attached to the cylinder’s rod. Jd. The third

radial channel contains a movable kicker plate which pushes

the molded disc along the movable guide rails into a discharge

chute. This kicker is actuated by an external pneumatic

cylinder and is attached to the cylinder’s rod. Jd. § 20.

The fourth radial channel is the discharge chute which

allows the disc to exit from the mold after the disc is formed.

Id. | 21. It is a permanent opening in the female mold

part and its shape does not change during the mold cycle.

Id.,; see Crest’s Statement of Facts § 26. At the exit of the

chute is an external rail upon which the disc travels after

discharge for further processing. KM’s Statement of Facts

q 22.

The male mold part contains a male cavity surface.

KM’s Statement of Facts § 23. Radially outside of the male

cavity surface is the stamper ring zone. The stamper is

supported by a stamper mirror. /d. § 24. In the center of the

male cavity surface is the face of the ejector sleeve assembly

and radially outside of the ejector sleeve is the guide bushing

and the stamper support bushing. Jd. §§ 25-26. During the

injection molding process, the male and female mold parts

are brought together and clamping force is applied. Resin is

2la

Appendix C

subsequently injected into the mold cavity and eventually

cools to form the disc. /d. § 28; Turn-Key’s Statement of

Genuine Issues 4] 16-18; Crest’s Statement of Facts 4 5. Once

the disc is hardened, the mold parts are separated with the

result that the disc is positioned approximately in the middle

of the separated mold parts. KM’s Statement of Facts {| 28.

The space created by the separation of the mold parts is

generally cylindrical in shape. Crest’s Statement of Facts

432. The mobile guide rails are subsequently advanced from

behind the conical side wall of the female mold part into the

space between the separated mold parts to hold the disc at

two points. KM’s Statement of Facts | 29. With the disc being

held by the mobile guide rails, operation of the sprue removal

device separates the sprue from the disc so as to form the

center hole of the disc. /d. Once the sprue is removed, the

disc is then pushed inio the discharge chute in the female

mold part by the movable kicker plate which is actuated from

behind the parting surface of the female mold part into the

space between the separated mold parts. /d.

Ill. LEGAL STANDARDS AND ANALYSIS

A. Legal Standards

Rule 56 of the Federal Rules of Civil Procedure provides

that a court shall grant a motion for summary judgment if

“the pleadings, depositions, answers to interrogatories, and

admissions on file, together with the affidavits, if any, show

that there is no genuine issue as to any material fact and that

the moving party is entitled to judgment as a matter of law.”

Fed. R. Civ. P. 56 (c) . Material facts are those that may affect

the outcome of the case. See Anderson vy. Liberty Lobby, Inc.,

22a

Appendix C

477 U.S. 242, 248 (1986). A dispute as to a material fact is

genuine if there is sufficient evidence for a reasonable jury

to return a verdict for the nonmoving party. /d.

The party moving for summary judgment bears the initial

burden of informing the district court the basis of the

summary judgment motion, and of demonstrating the absence

of a genuine issue of material fact for trial. See Celotex Corp.

v. Catrett, 477 U.S. 317, 323 (1986); Katz v. Children's Hosp.

of Orange County, 28 F.3d 1520, 1534 (9th Cir. 1994).

On an issue for which the nonmoving party has the burden

of proof at trial, the moving party need only point out

“that there is an absence of evidence to support the

nonmoving party’s case.” Celotex, 477 U.S. at 325. Once

this initial burden is satisfied, the non-moving party is

required to “go beyond the pleadings and by her own

affidavits, or by the depositions, answers to interrogatories,

and admissions on file, designate ‘specific facts’ showing

that there is a genuine issue for trial.” Celotex, 477 U.S. at

324 (internal quotations omitted); see Nilsson, Robbins,

Dalgarn, Berliner, Carson & Wurst v. Louisiana Hydrolec,

854 F.2d 1538, 1544 (9th Cir. 1988). Where the standard

of proof at trial is preponderance of the evidence, the

non-moving party’s evidence must be such that a

“fair-minded jury could return a verdict for the [non-moving

party] on the evidence presented.” Anderson, 477 U.S. at 252.

The determination of infringement is a two-step process.

First, the court must construe the asserted claims as a matter

of law to ascertain their meaning and scope. Dawn Equip.

Co. v. Kentucky Farms Inc., 140 F.3d 1009, 1014 (Fed. Cir.

1998). Second, the claims as construed are compared to the

23a

Appendix C

allegedly infringing device. /d. To infringe a claim, each claim

limitation must be present in the accused product, either

literally or equivalently. Sofamor Danek Group, Inc. v.

DePuy-Motech, Inc., 74 F.3d 1216, 1220 (Fed. Cir. 1996).

Where the parties do not dispute any relevant facts regarding

the accused product, but disagree over possible claim

interpretation, the question of literal infringement collapses

into claim construction and is amenable to summary

judgment. Rheox, Inc. v. Entact, Inc., 276 F.3d 1319, 1324

(Fed. Cir. 2002).

The doctrine of equivalents prevents an accused infringer

from avoiding liability for infringement by changing only

minor or insubstantial details of a claimed invention while

retaining the invention’s essential identity. Festo Carp. v.

Shoketsu Kinzoku Kogyo Kabushiki Co., Ltd., 2002 WL

1050479 * 8 (May 28, 2002). But actions by the patentee,

including claim amendments and arguments made before the

Patent Office, may give rise to prosecution history estoppel.

Id. Prosecution history estoppel precludes a patentee from

obtaining under the doctrine of equivalents coverage of

subject matter that has been relinquished during the

prosecution of its patent application. /d. Pursuant to the

Supreme Court’s recent Festo decision, prosecution history

estoppel does not necessarily completely bar the inventor

from asserting infringement against any equivalent to the

narrowed element. /d. * 11. Rather, though estoppel can bar

challenges to a wide range of equivalents, its reach requires

an examination of the subject matter surrendered by the

narrowing amendment. /d.

24a

Appendix C

B. Analysis

Because Claims 2, 5, and 6 depend from Claim 1 and

incorporate all of its limitations, Defendants focus upon Claim

1(d) in the instant motions for summary judgment. Specifically,

they contend that Crest’s CD-94 molds do not infringe the ’998

patent because they do not have a “guide conduit” meeting the

following criteria identified by this Court’s Markman order:

1) that the conduit be a “tube” or “channel” leading almost

entirely perpendicular to the direction that the mold parts move

apart, 2) that the “tube” or “channel” be brought into existence

by the moving apart of the two halves of the mold, 3) that the

contours of the conduit be entirely defined by parting surfaces

and cavity surfaces of the mold, and 4) that the conduit “guide”

the molded plastic parts out of the mold. “There is no structure

in Crest’s CD-94 molds that even comes close to fulfilling the

Court’s criteria for a ‘guide conduit.’” Crest’s Motion at 1.

Defendants argue that Turn-Key cannot invoke the doctrine of

equivalents to remedy this lack of the required guide conduit.

In opposition, Turn-Key argues that Defendants’ usage of

the CD-94 mold indeed includes every step and limitation of at

least Claim 1 of the ’998 patent and thus literally infringes the

’998 patent. In doing so, they contest each and every one of

Defendants’ above-mentioned arguments. However, Turn-Key

alternatively posits that fact questions exist as to whether

Defendants use an “equivalent” process, thereby precluding

summary judgment. Turn-Key’s Opposition to Ds’ Motions for

SJ at 25.

- 25a

Appendix C

1. Literal Infringement

It is unnecessary for the Court to address each and every

one of the parties’ arguments for purposes of the instant

motions for summary judgment. This is because Turn-Key’s

argument that the cylindrical space created by the separation

of the movable mold part and the stationary female mold

part constitutes the required “guide conduit” suffers from a

number of fatal flaws, even assuming that the space is a

“tube” or “channel” leading almost entirely perpendicular to

the direction that the mold parts move apart. Turn-Key’s

Opposition at 17; Crest’s Reply Brief at 5-8; KM’s Reply

Brief at 6-8.

Turn-Key argues that the “guide conduit” is a narrow, 8

millimeter channel whose contours include a crescent-shaped

exit port defined by the conical wall parting surface.

Turn-Key’s Opposition at 17. This exit port, in turn,

“communicates with the discharge chute” and “is the only

place where the channel of the [ ] mold is open to the outside

environment.” Jd. The evidence submitted including the

animations proffered by both Turn-Key and Defendants,

however, convinces the Court that the space identified by

Turn-Key as the “guide conduit” simply does not perform

any guiding function. That is, it does not “carry materials

from one place to another and [does not] help[ ] to direct the

materials’ progressive motion.” Markman Order at 15, 30.

It appears that three specific structures function to carry the

molded disc product from between the separated mold

parts and to direct the product’s progressive motion out of

the mold: 1) the mobile guide rails, 2) the kicker plate, and

3) the discharge chute. The guide rails hold the molded

26a

Appendix C

product by its edges in v-shaped grooves and the kicker plate

subsequently pushes the product into the discharge slot.

Exhibit 5 to Decl. of Robinson in Support of KM’s Motion

for SJ, Decl. of Hillenbrand §| 27. None of these structures,

however, can make up the required “guide conduit” for two

basic reasons.

First, they cannot satisfy this Court’s requirement that

the outlines of the body of the “guide conduit” be formed

only by the regions of the parting surfaces and cavity surfaces.

Markman Order at 18. The guide rails and kicker plate are

attached to rods protruding from the bottom of pneumatic

cylinders which are themselves attached to the exterior of

the female mold part. Exhibit 5 to Decl. of Robinson in

Support of KM’s Motion for SJ, Decl. of Hillenbrand § 10.

Both the guide rails and the kicker plate are retractable pieces

which remain behind the conical side wall of the female mold

part until after the “separating” process is finished and the

molded product is already situated in the middle of the

separated mold parts. /d. 27. Only then are the guide rails

“advanced” from behind the conical wall to hold the molded

product at two points. /d. In a similar vein, the kicker plate

is “actuated” from behind the conical wall into the space

between the separated mold parts in order to push the disc

into the discharge slot only after the sprue has already been

removed from the molded disc. /d. Clearly, the guide rails

and the kicker plate cannot constitute “parting surface”

because they remain behind the wall of the female moid part

during the “combining process” and as such, do not qualify

as “the faces of the two mold parts that either touch or lie

adjacent when the mold parts are brought together in the

27a

Appendix C

‘combining process.’”! Markman Order at 7. Nor can they

constitute “cavity surface” since this Court has defined that

phrase as “the hollow space that is surrounded by a parting

surface.” /d. at 9.? Under this definition, the cavity surfaces are

those surfaces of the cavity that ultimately touch the molten

plastic upon injection. However, both the guide rails and the

kicker plate clearly never actually touch the molten plastic upon

injection since they are in their retracted position during that

Stage of the process. Similarly, the discharge chute constitutes

neither “parting surface” nor “cavity surface” since it passes

1. Moreover, the guide rails and kicker plate cannot constitute

“parting surface” for an even more basic reason. In the Markman

Order, the Court noted that “though the mold halves can possess

component parts, ‘the mold comprises two parts’ language should

be interpreted as ‘referring to the mold halves of the mold as wholes,

and not to their individual components.” Markman Order at 6.

The guide rails and the kicker plate fall under the rubric of these

“individual components” and as such cannot be considered “mold

parts.” In addition, they therefore cannot be considered to be the

“faces” of the two mold parts that touch or lie adjacent during the

“combining process.” See Crest’s Reply Brief at 17; KM’s Reply

Brief at 15-17.

2. Because the Markman Order may have been unclear as to

the specific parameters of “cavity surface,” the Court here clarifies

that the phrase refers to the portion of the “parting surface” that forms

the contours of the “hollow space” in which the disc is actually

molded. The Court agrees with KM that this is the only meaning of

“cavity” that is consistent with other uses of this term elsewhere in

Claim 1 of the 998 patent including Claim 1(c) which requires

“(solidifying the injected plastic in the cavity.” KM Brief at 14;

KM’s Reply Brief at 6; see Phonometrics, Inc. v. Northern Telecom,

Inc., 133 F.3d 1459, 1465 (Fed. Cir. 1998) (“[a] word or phrase used

consistently throughout a claim should be interpretéd consistently”).

28a

Appendix C

through the side of the female mold part and is situated on a

plane different from that of the parting or cavity surfaces.

Turn-Key’s attempts to characterize the chute as an “internally

positioned cavity” fails, given this Court’s clarification of the

term “cavity” because the chute clearly has nothing to do with

and is not part of the molding cavity. KM’s Reply Brief at 6;

see Turn-Key’s Opposition at 19 n. 6.

Second, the guide rails, kicker plate, and discharge chute

cannot make up the required “‘guide conduit” for an independent

reason—they are not the “result of the process of bringing apart

the molds.” Markman Order at 14. This Court construed Claim

1(d) to require that “[t]he separation of the mold parts thus results

in something—the conduit—that was not there when the mold

parts were in the process of being brought together.” /d.

However, each one of these three structures clearly exists even

during the “combining process” when the mold parts are being

brought together. Both the guide rails and the kicker plate are

separate plastic parts that remain constant in shape throughout

each mold cycle but extend into the space between the mold

halves after the “separating” process has been completed.

Turn-Key argues that the movement of the rails into the space

is a “direct result” of the separation because “[w]ithout the

separation, [they] sit up against the adjacent parting surface of

the movable mold half not able to move any further into the

interior of the mold.” Turn-Key’s Opposition at 18. This

argument, however, shows that the separation of the mold parts

is, at best, a “precondition required to clear the way

for movement of the guide rails.” Crest’s Reply Brief at 15.

The Court agrees with Defendants that providing a precondition

for other actions to “create” a guide structure is not equivalent

to “creating” the guide conduit by the “[s]eparating [of] the two

29a

Appendix C

mold parts” as required by the ’998 patent. /d. This point is

accentuated by the fact that in the invention covered by the ’998

patent, the “result” of the two mold halves moving apart is a

tube that did not exist in any form prior to the “separation”

process. For similarly obvious reasons, the chute is not the

“result” of the separation of the mold parts because its form is

fixed in shape and is not altered by the “separating” process.

The fact that access to the chute is blocked until separation of

the mold parts does not qualify as “creating” the conduit, for it

merely entails the removal of an obstacle in front of the

preexisting chute.

Turn-Key makes additional arguments in an effort to avoid

summary judgment regarding literal non-infringement of the

"998 patent. Turn-Key argues that “the evidence that the guide

conduit of the [CD-94 mold] helps to direct the progressive

motion of the disc is overwhelming.” Turn-Key’s Opposition at

20. Turn-Key posits that

[t]he narrow channel restricts the disc’s progressive

motion [because] the disc cannot travel outside of

the narrow channel boundaries, and will remain

within those boundaries until it exits the conduit.

There is no room for the disc to flip or turn over

within the channel.... The guide conduit is so

narrow that the guide rails can only be brought into

the conduit in exact alignment with the direction in

which the channel leads... . The guide rails work

in concert with and within the constraints of the

conduit to direct the disc from between the mold

parts.

Id. at 20-21. This argument amounts to nothing more than

the proposition that the channel constitutes the required

30a

Appendix C

“guide conduit” because it provides the space in which other

structures, namely the guide rails, perform the guiding function.

Such a proposition, however, fails because the Court agrees with

Defendants that “if this were enough, then any substantially

enclosed mold from which parts are removed would have a

‘guide conduit’.” Crest’s Reply Brief at 11. To adopt such a

reading would effectively render Claim 1(d) meaningless.

In addition, such a proposition fails to comport with this Court’s

Markman Order. During the Markman hearing, Defendants

requested that the Court require the “guide conduit” be the sole

mechanism helping to direct the molded products’ progressive

motion but the Court rejected such a position. Markman Order

at 16n.5. Incontrast, Turn-Key requested that the Court construe

the “guide conduit” to be merely a “passageway through which

the molded product is guided and transported” and argued that

the construction of the “guide conduit” as helping to direct the

travel of the molded plastic product in Claim 1 rendered Claim

2 which specifically requires the orientation of the molded plastic

product to be directed by the contours of the “guide conduit”

superfluous. /d. at 14-15. The Court rejected both of Turn-Key’s

contentions and in doing so, noted that

Claim 1 is an independent claim which merely

introduces the guide conduit and Claim 2, a

dependent claim, describes the guide conduit’s role

in one of the steps of the patented process.

It is inconsistent for Turn-Key to concede that the

guide conduit plays a role in directing the molded

plastic product’s orientation on the one hand and

then to reject a definition of the conduit taking that

role into consideration on the other hand.

Id. at 15-16. Consequently, if the Markman Order is not a model

of clarity, the Court clarifies that though auxiliary parts such as

3la

Appendix C

guide rails can certainly be used with the “998 patent as a

supplement, the guide conduit itself nevertheless must help

to carry and direct the molded product’s progressive motion.

Turn-Key is essentially resurrecting its argument that the

“guide conduit” need only be a passageway; that argument

was buried by the Court in its Markman Order and remains

so here on Defendants’ instant motions for summary

judgment.

Turn-Key also argues that the crescent-shaped exit port

“determines the required direction of travel and orientation

of the disc within the guide conduit” because it “only allow(s]

the disc to pass if [the disc] is precisely aligned with the exit

opening.” Turn-Key’s Opposition at 21. There is, however,

no evidence to suggest that this opening acts as anything more

than the place to which the guide rzils and kicker plate

together push the disc through. To hold thet the opening

“guides” the disc would once again render Claim 1(d)

meaningless since any substantially enclosed mold with an

opening through which parts are removed would constitute

the required “guide conduit.”

Turn-Key notes that the contours of the space between

the mold parts “include rectangular openings that control the

position and configuration of the guide rails.” /d. Turn-Key

stresses that these rectangular openings “play a role in holding

the guide rails or stabilizing the guide rails when the guide

rails are moved into the guide conduit.” /d. Thus, “the

contours of the guide conduit cooperate with the guide rails

and control their orientation and geometry-helping to direct

the disc’s progressive motion.” /d. This argument too fails,

for the Court agrees with Crest that “[m]erely providing a

32a

Appendix C

location through which a guiding device can move is not the

same as performing the actual guiding function.” Crest’s

Reply Brief at 13.

In sum, Turn-Key’s efforts to muster up evidence that

the contours of the cylindrical space resulting from the

separating of the mold parts carries or helps to direct the

movement of the molded disc product fall far short.

Consequently, Defendants are entitled to summary judgment

regarding the literal non-infringement of the CD-94 mold.

2. The Doctrine of Equivalents

In their opening briefs, Defendants argued that Turn-Key

was barred from claiming infringement under the doctrine

of equivalents for a number of reasons. Crest’s Motion at

8-14; KM’s Motion at 18-22. First, they cited to the Federal

Circuit’s Festo decision for the proposition that an

amendment that narrows the scope of a claim for any reason

related to the statutory requirements for a patent will give

rise to prosecution history estoppel with respect to the

amended claim element. “When a claim amendment creates

prosecution history estoppel, no range of equivalents is

available for the amended claim element.” Crest’s Motion at

8-9: see KM’s Motion at 18. In an interrelated argument,

Defendants contended that even under pre-Festo case law,

prosecution history estoppel prevents Turn-Key from relying

upon the doctrine of equivalents. In Warner-Jenkinson Co,

Inc. v Hilton Davis Chemical Co., 520 U.S. 17, 30 n. 5

(1997), the Supreme Court noted that in a number of cases,

it had applied the principle of prosecution history estoppel

to amended claims where the original claim was rejected

iii | Ba SR a ae

33a

Appendix C

based on the lack of invention over prior patents. Here,

Defendants point out that Sorensen amended Claim 1(d)

because the Patent Office had determined that, without the

amendment, the “guide conduit” described in the ’998 patent

application would have been redundant with what was already —

in the prior art. Crest’s Motion at 10; see Decl. of Taillieu,

Exhibit A-3 at 2 (“Claims 1, 2, 3, 5/1, 5/2, 5/3, 6 are rejected

under 35 U.S.C. § 103 as being unpatentable over Smolenski

alone or in view of Tait”); id., Exhibit A-7 at 2 (stating

that “[a]pplicant has not pointed out how his invention

differs from the prior art ... in an unobvious manner... .

The conduit of the prior art is . . . ‘substantially defined’ by

the opened mold parting surfaces”). Therefore, Defendants

argue that “classic prosecution history estoppel as defined

by the Supreme Court bars the °998 patent from

encompassing injection molds having ‘guide conduits’ that

are not completely defined by the mold’s parting surfaces

and cavity surfaces.” Crest’s Motion at 10.

Though the merits of Defendants’ Festo and Warner-

Jenkinson argument is somewhat dampened by the Supreme

Court’s recent decision in Festo, the Court agrees that

Turn-Key is prevented from claiming infringement against a

“ouide conduit” that is not completely defined by parting

and cavity surfaces. After granting certiorari in Festo, the

Supreme Court disagreed with the Federal Circuit’s holding

that estoppel necessarily completely bars an inventor from

asserting infringement against any equivalents to the

narrowed element. Rather, a determination of the reach of

the doctrine of estoppel requires an examination of the subject

matter surrendered by the narrowing amendment. Festo,

2002 WL 1050479 * 11. In the Markman Order, the Court

34a

Appendix C

noted that the prosecution history in the instant case shows

that Claim 1(d) was amended from “contours of said conduit,

substantially being defined by regions of the parting surface

and the internally positioned cavity/ies, which are exposed

subsequent to separation” to “a substantially enclosed guide

conduit having contours defined by the regions of the parting

surface and the internally positioned cavity/ies that are

exposed subsequent to separation and leading in a direction

substantially perpendicular to said predetermined direction.”

Markman Order at 18. The Court rejected Turn-Key’s

argument that the amendment broadened, rather than

narrowed, the claim language with respect to the contours of

the guide conduit and instead found that though the claim

language had previously required that the contours of the

conduit be mostly determined by the regions of the parting

and cavity surfaces, the final language requires that the

contours be determined by those regions. /d. at 19. Because

the purpose of applying estoppel is to hold the inventor to

representations made during the application process and to

the inferences that may reasonably be drawn from the

amendment, the Court finds that Sorensen is deemed to have

conceded that the patent does not extend as far as the original

claim—in other words, he cannot now claim infringement

against an invention that includes contours not defined by

parting and cavity surfaces. This is especially so, given that

a patentee bears the burden of showing that an amendment

does not surrender the particular equivalent in question.

Festo, 2002 WL 1050479 * 12.

In their briefs, Defendants also pointed out that the scope

of equivalency here is limited by statements in the

specification of the °998 patent where Sorenson noted the

35a

Appendix C

deficiencies and disadvantages of the prior art. In Dawn

Equipment, 140 F.3d at 1009, the Federal Circuit emphasized

that the Background of the Invention section of the '282

patent at issue described the problems with prior art

“multi-holed pinned height adjustment” mechanisms.

Id. at 1016-17. In so doing, the court stated that

The patent teaches that such mechanisms are

time-consuming to adjust and are prone to

misadjustment by inserting the pin in the

wrong holes, and furthermore the loose pins in

such mechanisms are easily lost. [citation

omitted]. Kentucky Farms’ multiple-hole, pinned

height-adjustment mechanism is such a mechanism

and shares these same problems. In contrast, the ’282

patent teaches that the mechanism provided by the

patented invention is directed at solving these

problems. [citation omitted]. These statements in the

patent alone strongly suggest, if not mandate,

judgment in Kentucky Farms’ favor. [citation

omitted].

Id. Defendants argue that the ’998 patent includes similar, if

not stronger, criticisms of prior art features—including the

use of mobile guide rails such as those used in the CD-94

mold. In particular, they point to the following passages:

Heretofore controlled ejection of injection molded

plastic products have employed complicated

mobile guide rails or guide pins, which wear

down and reduce production stability. Other

methods have employed stationary elements such

36a

Appendix C

as pins or blades which may be received in

recesses of the confronting mold part in the

closure position. But such pins or blades are quite

vulnerable, particularly in case a molded product

gets caught between the mold part during the

closing action. Also the recesses are quite difficult

to clean in case the injected plastic material by

accident flashes and finds its way into the recesses.

* * *

Among the objects of the invention are to facilitate

controlled ejection of the injection molded

product in relation to its orientation, speed of

injection, and/or sterility basically without the

need of auxiliary moving parts or vulnerable

elements such as pins or blades.

Crest’s Motion at 12 (emphases in brief); see ’998 patent at

Col. 1 11. 12-23; id. at Co. 1 11. 27-30. Defendants conclude

that the aforementioned statements disclaim exactly what the

CD-94 mold does:

[I]t uses guide rails that are recessed in the

stationary mold part when the mold is in the

closure position. Moreover, not only does the

CD-94 mold use these criticized devices, it

requires them to guide molded discs out of the

mold.

Crest’s Motion at 12-13. Thus, “[l]ike the patentees in Dawn

Equipment . . . Turn-Key cannot reclaim through the doctrine

of equivalents what it has so clearly criticized.” /d

37a

Appendix C

In its opposition brief, Turn-Key concedes that Fesfo and

the principle of prosecution history estoppel would apply if it

were arguing that Defendants’ CD-94 mold included other

contours not defined by parting surface and cavity surface.

Turn-Key’s Opposition at 25 (“Prosecution history estoppel and

the Festo decision would only apply if Turn-Key was arguing

that Defendants’ conduit included other contours not defined

by parting surface and cavity surface.’’). In light of the clear

precedents of Festo, Warner- Jenkinson, and Dawn Equipment,

the Court finds that Turn-Key really cannot do anything but

make such a concession. Turn-Key nevertheless argues that it

is not barred, as a matter of law, from showing equivalents

because “it would not be arguing that other contours not defined

by parting surface and cavity surface constitute the required

‘guide conduit.’”’ Tumn-Key’s opposition at 25. Instead Turn-Key

states that it “would show that by using additional structures or

auxiliary parts within the conduit having contours defined only

by parting surfaces and cavity surfaces, Defendants perform the

equivalent step of creating a guide conduit, and the °998

prosecution history does not preclude such an analysis as a matter

of law.” Jd. However, the Court agrees with Defendants that

“{ajt this stage ... Tur-Key needs to do better than simply

allege that it ‘would’ show. In order to avoid summary judgment,

Turn-Key cannot merely rely on allegations, it must produce

evidence.” Crest’s Reply at 20. Turn-Key merely reiterates its

argument that the usage of additional structures to “guide” and

“direct” the movement of the molded product within the conduit

satisfies Claim 1(d) of the ’998 patent even if the contours of

the conduit themselves never actually perform these functions.

The Court once again rejects this position on the grounds that it

is too broad of a reading of the ’998 patent and this Court’s

Markman order. y

38a

Appendix C

In short, Turn-Key’s mere conclusory statements of what

it would show cannot defeat Defendants’ motion for summary

judgment regarding the doctrine of equivalents.’

IV. CONCLUSION

Based on the foregoing, the Court GRANTS Defendants’

motions for summary judgment.

IT IS SO ORDERED.

Dated: June 4, 2002

s/ Lourdes G. Baird

LOURDES G. BAIRD

United States District Judge

3. Because the Court finds Festo, Warner-Jenkinson, and Dawn

Equipment to be sufficient for purposes of barring Turn-Key from

using the doctrine of equivalents, the Court need not address

Defendants’ argument that the recent Federal Circuit case of Johnson

& Johnson Assocs. Inc. v. R.E. Service, Co., No. 99-1076, 2002 WL

466547 (Fed. Cir. March 28, 2002) (en banc) (per curiam) also

precludes Turn-Key from “recapturing” auxiliary parts such as the

guide rails and the kicker plate through the doctrine of equivalents.

Crest’s Reply Brief at 18-19; KM’s Reply Brief at 19-20. In addition,

the Court also declines to address Crest’s argument that the CD-94

mold does not meet the “insubstantial differences” standard for

infringement under the doctrine of equivalents even in the absence

of estoppels and disclaimers, Crest’s Motion at 13-14, and KM’s

additional argument that Turn-Key is also barred from using the

doctrine of equivalents under the “‘all elements rule.” KM’s Motion

at 20.

39a

APPENDIX D — ORDER CONSTRUING CLAIMS OF

U.S. PATENT 4,422,998 OF THE UNITED STATES

DISTRICT COURT FOR THE CENTRAL DISTRICT

OF CALIFORNIA DATED JANUARY 8, 2002

AND FILED JANUARY 18, 2002

UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA

CV 01-4158 LGB (MCx)

IN RE: TURN-KEY-TECH MATTERS AND

ALL CONSOLIDATED ACTIONS,

This Document Relates to: All Actions

ORDER CONSTRUING CLAIMS OF

U.S. PATENT 4,422,998

(“ ‘THE 998 PATENT”)

I. INTRODUCTION

In these consolidated cases, Turn-Key-Tech (“Turn-Key’”)

accuses National Film Laboratories, Inc. d.b.a. Crest National

Optical Media (“Crest”), Concord Disc Manufacturing

Corporation (“Concord”), Music City Optical Media Inc.,

(“MC”), and Hollywood Records of patent infringement.

Specifically, it alleges that these Defendants have been practicing

a process claimed in U.S. Patent 4,422,998 (“‘the 998 patent”’)

which was issued to Jens Ole Sorensen on December 27, 1983.’

Turn-Key brings the instant actions as the exclusive licensee of

1. Turn-Key also accuses Defendants of contributory

infringement and have also named certain Doe Defendants in their

(Cont’d)

40a

Appendix D

actions as the exclusive licensee of the *998 patent which

expires on April 22, 2002. This matter is before the Court

for purposes of the interpretation of disputed claims of the

998 patent.

Il. THE 7998 PATENT

For purposes of the Court’s claim instruction endeavor

here, it suffices to note that Turn-Key accuses Defendants of

violating the ‘998 patent. The 998 patent entitled “Controlled

Ejection Method for Injection Molding” was issued to

Sorensen on December 27, 1983 and relates to the field

of injection molding plastics. Injection molding is a

manufacturing process used to make plastic products by

injecting fluid plastic into a mold cavity and allowing the

plastic to solidify into the general shape of the mold cavity

to produce the plastic part. Once the product is removed from

the mold, the process continuously repeats.

(Cont’d)

complaints. Defendants, in turn, have filed counter-claims for

- declaratory judgment of non-infringement and invalidity and

unenforceability of the °998 patent. Krauss-Maffei Corporation

(“KM”) has also brought an action against Turn-Key for declaratory

judgment of non-infringement, invalidity and unenforceability of the

’998 patent, common law tortious interference with existing business

relationships, common law trade disparagement and injurious

falsehood, and unfair competition. These claims stem from KM’s

licensing of certain patents relating to an optical disc manufacturing

process and its sale of manufacturing systems utilizing the licensed

technology because Turn-Key has alleged that the manufacture of

optical discs using KM’s equipment infringes the °998 patent.

Turn-Key answered KM’s complaint and a brought counterclaims

for contributory infringement and active inducement of infringement

vis-a-vis KM.

4la

Appendix D

Sorensen stated that the method protected by the °998

patent constituted an improvement from prior art in terms of

the orientation, speed of injection, and the sterility involved.

’998 patent at Col. 1. 1]. 27-30. The method, moreover, could

be performed basically without the need of auxiliary moving

parts or vulnerable stationary elements such as pins and

blades. Jd. at ll. 30-34. Claims 1, 2, 5, and 6 of the °998

patent are specifically at issue. Claim | is the only

independent claim in the ’998 patent.

Ill. CLAIM INTERPRETATION LAW

In Markman vy. Westview Instruments Inc., 517 U.S. 370

(1996), the Supreme Court held that the interpretation of a

patent claim—the portion of the patent document that defines

the scope of the patentee’s rights—is a matter of law

exclusively within the scope of the court and is not a factual

question for the jury. Jd. at 372. The Markman decision

suggested that a trial court could consider various types of

evidence when interpreting a patent, including expert

testimony. See id. at 388-90. Shortly after the Supreme Court

handed down Markman, the Federal Circuit, in Vitronics

Corp. v. Conceptronic, Inc., 90 F.3d 1576 (Fed. Cir. 1996),

expanded on the Court’s dicta concerning evidence available

to a trial court in interpreting patent claims. See id. at 1581-

83. The Federal Circuit held that if intrinsic evidence can,

by itself, resolve ambiguity in a patent term, then a court

may not rely on extrinsic evidence, such as expert testimony,

to construe the term. See id. at 1583. A trial court may only

use extrinsic evidence when intrinsic evidence fails to

illuminate the meaning of the disputed claim. /d. Moreover,

42a

Appendix D

extrinsic evidence cannot broaden the reach of a claim or

contradict explicit language. /d. The policy rationale

supporting this evidentiary limitation is that prospective

patentees must have access to public records concerning the

patent to “design around” a prior art. /d. If expert testimony

or other extrinsic evidence were permitted to alter the record,

then this public benefit would be frustrated. Jd. Thus, a court

can only examine extrinsic evidence if the evidence does

not contradict the claim language, the specification, or the

prosecution history but instead supplements it. /d. at 1584-85.

The Federal Circuit detailed a hierarchy of specific types

of evidence that a court may consider. Thus, when interpreting

a patent, a trial court must first look at the language of the

claim itself. See id. at 1582. Courts should typically construe

terms by their common, customary meaning, but a patentee

is allowed to define her own terms in the specification section

of the patent. See id. Therefore, courts must always review

the specification, which, when setting forth an embodiment

of the invention, frequently provides explicit definitions of

the claim terms. See id. The language in the specification is

dispositive, and “it is the single best guide to the meaning of

the disputed term.” Jd. However, a patent’s claims are not

limited to the specification’s best mode, preferred

embodiment, specific objects, or illustrative examples, and

it is erroneous to read limitations from the specification into

the claims. See Laitram Corp. v. Cambridge Wire Cloth Co.,

863 F.2d 855, 865 (Fed. Cir. 1988) (“References to a preferred

embodiment, such as those often present in a specification,

are not claim limitations.”’); Rolls-Royce Ltd. v. GTE Valeron

Corp., 800 F.2d 1101, 1108 (Fed. Cir. 1987) (“Reference to

an object does not constitute in itself a limitation in the

claims.”’). In addition, a court may consider the prosecution

43a

Appendix D

history of the patent as evidence of meaning. /d. This history

contains the complete record of all the filings and

examinations before the Patent and Trademark Office,

including representations made by the applicant regarding

the significance of claims and terms. /d. The history also

limits the interpretation of terms by recording the exclusion

of any term definition disclaimed during the prosecution. /d.

IV. CLAIM INTERPRETATION AND ANALYSIS

The parties have agreed to construe the language

contained in the preamble of Claim 1, “[a] method of cyclic

injection molding of plastic,” as requiring “a repeating cycle

involving the introduction of plastic under pressure into a

mold to form plastic objects.” Corrected Joint Claim

Construction Statement (“Joint Statement”) at 2. In addition,

they also have agreed to construe language contained in

Claim 3, “[a] method according to claim 1, wherein step (a)

comprises the step of: (g) Combining the two mold parts in

a horizontal direction,” as requiring that “one or both of the

two mold parts moves towards the other in a direction parallel

to the plane of the earth’s surface pursuant to the parties’

respective constructions of step (a) of Claim 1.” /d. at 2-3.

The remaining language of Claims 1, 2, 5, and 6 in the °998

patent is disputed.

44a

Appendix D

A. Claim 1 of ’998 Patent

1. The Preamble

The preamble of Claim | of the ‘998 patent states that

the invention comprises “[a] method of cyclic injection

molding of plastic where the mold comprises two parts which

are separated by a parting surface and at least one cavity

situated internally to the boundaries of the parting surface,

and wherein each production cycle comprises the steps

of....” The parties disagree on the interpretation of the

following three terms/phrases contained in the preamble:

a. “Two mold parts”

Turn-Key argues that this limitation must be construed

to require that the two mold parts are a first mold part and a

second mold part including all of their respective

components. It asserts that these components can include

mold plates, cavity inserts, alignment components, screws,

heating and cooling assemblies, ejector assemblies, pins,

blades, guide assemblies, etc. Pl’s Opening Brief at 5.

Conversely, Defendants argue that the two mold parts referred

to are “not just any parts, but the two mating halves of an

injection mold” and that though the mold “may have other

components .. . these should not be confused with the two

mold halves to which this claim term is intended to refer.”

Crest’s Responsive Brief at 11. The parties thus appear to

agree that the phrase “mold comprises two parts” signifies

the mating halves of a mold and that the mold parts

themselves may contain individual components. Crest’s

Responsive Brief at 11; Pl’s Opening Brief at 5. The dispute

45a

Appendix D

is whether the phrase refers to the mold halves as wholes or

whether it includes specific auxiliary parts.

The Court agrees with Defendants that though the mold

halves can possess component parts, the “mold comprises

two parts” language should be interpreted as “referring to

the two mating halves of the mold as wholes, and not to their

individual components.” Crest’s Responsive Brief at 11. This

interpretation comports with the ordinary and customary

meaning of the phrase which solely refers to “two parts” and

the specification does not show that Sorenson, as patentee,

intended to define the phrase in his own terms rather than by

the terms’ common, customary meaning. See Vitronics, 90

F.3d at 1584-85.

b. “Parting surface”

Turn-Key argues that this limitation must be construed

as referring to the surfaces of the two mold parts between

the two mold parts that either touch or lie adjacent to the

other mold part before the mold parts separate, excluding

the product molding cavity(ies) that is situated internally to

the parting surfaces. In so arguing, Turn-Key specifically

objects to the “additional limitations” of Defendants’

interpretation. Pl’s Opening Brief at 7-8. Defendants argue

that a parting surface consists of those faces of each of the

two mold parts that touch each other when the mold is closed

and that oppose each other when the mold is open. They,

however, note that portions of these faces may be slightly

relieved so that they do not touch each other when the mold

is closed but face each other in close proximity and with no

intervening structure. Crest’s Responsive Brief at 11-13;

KM, MC & Concord’s Brief at 5. The dispute over the

interpretation of “parting surface” thus centers around (1)

46a

Appendix D

whether the faces of the mold parts must touch each other,

(2) whether the faces must oppose each other when the mold

is “open,” and whether (3) there can be no intervening

structure.”

The Court construes “parting surface” to signify the faces

of the two mold parts that either touch or lie adjacent when

the mold parts are brought together in the “combining”

process described in Element (a). See supra at Section IV.A.2.

In applying the ordinary and customary meaning of

“combining” as the act of bringing into or joining in a close

union or whole, the Court finds that not all of the faces of

the two mold parts are required to actually touch each other;

they need to be only in some proximity to each other. Random

House Webster’s College Dictionary at 261. Having said that,

however, the Court notes that there must be at least some

point at which the faces of the two mold parts touch other,

thus preventing the fluid from leaking out of the cavity before

it is molded into the plastic product. The Court declines to

construe the mold parts as “opposing” each other when they

are being kept apart in the “separating” process described in

the first portion of Element (d) on the grounds that it adds an

extra limitation not present in the claim language. See supra

Section IV.A.5.a.* In addition, the Court further declines to

construe this claim as requiring an absence of an intervening

structure on the grounds that it adds an extra limitation not

present in the claim language.

2. Here, Defendants utilize the term “open” to refer to the position

of the mold parts during the “separating” process described in Element

(b). See 1V.A.3.

3. The Court agrees with Turn-Key that with a “clam” model mold,

the parting surfaces would not “oppose” each other like paired opposites

upon opening their book-like hinges. Pl’s Reply Brief at 19.

47a

Appendix D

ec. “Cavity”

Turn-Key argues that the limitation “cavity situated

internally to the boundaries of the parting surface” must be

construed as referring to “‘at least one product molding cavity

that is surrounded by the parting surface.” Pl’s Opening Brief

at 8. Defendants, conversely, assert that the “cavity” is a space

that is surrounded by a parting surface in all directions

(i.e., all directions in the plane of that parting surface). In so

arguing, they specifically object to Turn-Key’s inclusion of

the cavity walls of the mold which form the cavity into the

definition of “cavity.” KM, MC & Concord’s Brief at 5;

Pl’s Opening Brief at 8. Turn-Key, by contrast, objects to

Defendants’ description of the cavity as being surrounded in

the “plane of that parting surface on the grounds that this

wording leads to the “erroneous conclusion that the parting

surface is only in one plane.” Pl’s Opening Brief at 8.

The Court finds that Defendants’ briefs do not make any

argument about the cavity being surrounded in the “plane of

that parting surface” and as such, considers this interpretation

to be waived. Consequently, the only dispute concerns

whether the cavity walls should be included in the definition

of the term “cavity.”

The Court construes “cavity” according to its ordinary

and customary meaning, thus signifying a hollow space,

Random House Webster’s College Dictionary at 209,

and specifically construes “cavity” within the context of the

’998 patent as a hollow space that is surrounded by a parting

surface. In keeping with this interpretation, the Court declines

to construe the “cavity” to include the cavity walls which

actually form the hollow space. Nothing in the specification

48a

Appendix D

suggests that Sorenson, as patentee, intended to define

“cavity” in his own terms rather than by its ordinary,

customary meaning.

2. Element (a)

Element (a) states that the invention requires

“{cJombining the two mold parts by moving, in a

predetermined direction, the mold parts in relation to each

other.” Turn-Key argues that this limitation must be construed

to require “combining the two mold parts by moving one or

both of the mold parts in a direction toward the other.”

Pl’s Opening Brief at 8-9. In so arguing, Turn-Key states that

“combining” has no special or uncommon meaning and

should not be substituted with language that may change the

meaning and scope of Claim 1. /d. Defendants argue that the

limitation should be construed as “[cjlosing the mold by

moving the two mold parts” and that “[i]n closing the mold,

one or more of the two mold parts is moved towards the

other mold part along a straight path running between the

two parts.” Joint Statement at 25. The dispute over this

portion of the claim language thus centers around whether

“{c]losing” should be substituted for “[c]ombining” and

whether the movement of the mold parts must be along a

straight path.

The Court finds “combining,” as previously mentioned,

to be utilized in its ordinary and customary sense here, thus

signifying the act of bringing into or joining 1n a close union

or whole, and that it would therefore be inappropriate to

substitute other terms to further define it. In particular, the

Court declines to substitute “closing” because it represents

49a

Appendix D

an extra limitation that is not present in the claim’s language."

The Court also declines to adopt the construction that the

mold parts must move along a straight path on the grounds

that it adds an extra limitation not present in the patent’s

language. For instance, in a “clam” model mold, the two mold

parts would not move ina straight path but rather in an almost

half-circular motion. Thus, the Court finds that Element (a)

only requires that the moveménm ofthe mold parts towards

each other occur in a predetermined direction, as stated by

the claim language.

3. Element (b)

Element (b) states that the invention requires “Injecting

plastic in a fluid state into a cavity situated within the parting

surface.” Turn-Key’s construction follows the plain language

of the claim on the grounds that no rewording is necessary

to interpret the language since the inventor’s choice of words

is clear. Pl’s Opening Brief at 9. Defendants argue that this

limitation should be construed as requiring that “[p]lastic

that is sufficiently liquid to flow is forcefully introduced into

the mold cavity.” Joint Statement at 26.

The dictionary defines “fluid” to be a “substance, as a

liquid or gas, that is capable of flowing and that changes its

shape at a steady rate when acted upon by a force.” Random

House Webster’s College Dictionary 500. Applying this

4. The Court has already noted that not all of the faces of the

mold parts (i.e. parting surfaces) have to touch each other during the

“combining” process but only that they touch at some point to ensure

that no liquid plastic leaks out before the plastic is converted into a

molded product. “Closing,” on the other hand, signifies the act of

stopping or obstructing a// gaps. Random House Webster’s College

Dictionary at 247.

S0a

Appendix D

definition to the limitation “plastic in a fluid state,” the Court

reads the limitation to mean plastic “that is capable of

flowing.” In addition, the Court finds that the parties’

agreement to construe the limitation, “ [a] method of cyclic

injection molding of plastic,” contained in the preamble of

Claim | as “ta repeating cycle involving the introduction of

plastic under pressure into a mold to form plastic objects,”

Joint Statement at 2, binds them to a construction of

“injecting” in the Element (b) limitation as the process of

“forcefully introducing.” Defendants and Turn-Key have

agreed to define “injection” as “the introduction of plastic

under pressure” and the Court finds that the essence of “under

pressure” is equally expressed by the ordinary and customary

meaning of the term “forcefully.”

4. Element (c)

Element (c) states that the invention requires “Solidifying

the injected plastic in the cavity, thereby creating a plastic

product.” Turn-Key’s construction follows the plain language

of the claim on the grounds that there are no additional words

of special or uncommon meaning that need to be additionally

defined. Joint Statement at 7; Pl’s Opening Brief at 9.

Defendants argue that the limitation should be construed as

requiring that “The liquid plastic hardens in the mold cavity

to create a hardened plastic product. The cavity imparts a

predetermined shape to the liquid plastic and thus to the

molded plastic product.” Joint Statement at 27. Turn-Key

objects to Defendants’ usage of the term “harden” on the

grounds that it “unnecessarily limits the claim because the

hardness of the product 1s a function of the polymer used

and certain materials (e.g. rubbery plastic) remain quite soft

after they solidify.” Pl’s Opening Brief at 9.

Sla

Appendix D

The dictionary defines “solidify” as: 1. To make solid;

make into a hard or compact mass; change from a liquid or

gaseous to a solid form. 2. To unite firmly or consolidate.

3. To form into crystals; to make crystallized. 4. To become

solid. 5. To form into crystals; become crystallized. Random

House Webster’s College Dictionary at 1229. In light of the

previous limitation that the plastic, as first injected, is in a

state where it is capable of flowing, the Court finds that the

ordinary and customary meaning of “solidify” within the

context of the ’998 patent is to “change from a liquid or

gaseous to a solid form.” The Court construes the ordinary

and customary meaning of “solid,” in turn, as having relative

firmness, coherence of particles, or persistence of form.

Random House Webster’s College Dictionary at 1229.

In doing so the Court agrees that “harden” adds a limitation

not present in the claim language.

5. Element (d)

a. The first portion

The first portion of Element (d) requires “[s]eparating

the two mold parts by moving, in a direction opposite to the

predetermined direction, said mold parts in relation to each

other to create a substantially enclosed guide conduit.” Joint

Statement at 7.

52a

Appendix D

i. “Separating the two mold parts by

moving, in a direction opposite to the

predetermined direction, said mold

parts in relation to each other’

Turn-Key argues that this portion must be construed as

“Separating the two mold parts by moving one or both of the

mold parts away from the other, in the opposite direction to

the combining direction.” Joint Statement at 8. Defendants

argue that this limitation must be construed as “[o]pening

the mold by moving one or both of the two mold parts away

from the other along the same path along which one or both

of the mold parts were moved in closing the mold.” Joint

Statement at 28.

The Court finds “separating” to be utilized in its ordinary

and customary sense here, thus signifying the act of keeping

apart or dividing, Random House Webster’s College

Dictionary at 1179, and that it would be inappropriate to

substitute other terms to further define it. In particular, the

Court declines to substitute “opening” because it represents

an added limitation not present in the claim language.

The Court further declines to adopt the construction of “along

the same path along which one or both of the mold parts

were moved in closing the mold” on the grounds that, it does

not convey the ordinary and customary meaning of “in a

direction opposite to the predetermined direction” and that

it adds an extra limitation which does not appear in the claim

language itself. See supra Section IV.A.2.

53a

Appendix D

ii. “[T]o create a substantially enclosed

guide conduit”

Turn-Key argues that this part of Element (d) must be

construed to require that the process described above “form{s]

a substantially enclosed guide conduit by the configuration

or shaping of the mold parts.” Joint Statement at 8.

Defendants argue that this portion of Element (d) requires

that “the motion of the two mold parts brings into existence

a substantially enclosed guide conduit, which does not exist

when the mold is closed.” Joint Statement at 29; Crest’s

Responsive Brief at 11; KM, MC, & Concord’s Brief at 6.

The Court construes this portion of the claim language to

signify that the result of the process of bringing apart

the molds in the fashion described in the previously

discussed claim language is a substantially enclosed conduit.

The separation of the mold parts thus results in something—

the conduit-that was not there when the mold parts were in

the process of being brought together.

Turn-Key argues that the phrase “substantially enclosed

guide conduit” must be construed as “a passageway through

which the molded product is guided and transported that is

formed within and substantially enclosed by the surfaces of

the two mold parts.” Joint Statement at 9. Defendants argue

that this phrase must be construed as “a duct or channel for

conveying material” and that the insertion of the term “guide”

means that the conduit “directs the motion of material that

passes through it, including molded plastic products as set

forth below, thus determining, at least in part, the path of

such material.” Joint Statement at 29.

S4a

Appendix D

The Court construes “conduit” in its ordinary and

customary sense, thus signifying a tube or channel for

carrying or taking materials from one place to another.

Random House Webster’s College Dictionary at 275.

In addition, the Court construes “guide” in its ordinary

meaning, thus signifying something that helps to direct an

object’s travel or its progressive motion. /d. at 577. The Court

consequently construes the “guide conduit” to be a tube or

channel that carries materials from one place to another

and that helps to direct the materials’ progressive motion.

The Court rejects Turn-Key’s argument that the construction

of the “guide conduit” as helping to direct the travel of the

molded plastic product here in Claim 1 rendérs Claim 2 which

specifically requires the orientation of the molded plastic

product to be directed by the contours of the “guide conduit”

superfluous. Claim | is an independent claim which merely

introduces the guide conduit and Claim 2, a dependent claim,

describes the guide conduit’s role in one of the steps of the

patented process. It is inconsistent for Turn-Key to concede

that the guide conduit plays a role in directing the molded

plastic product’s orientation on the one hand and then to reject

a definition of the conduit taking that role into consideration

on the other hand.°

5. During oral argument, counsel for Crest requested that the

Court construe “guide conduit” to be a tube or channel that carries

materials from one place to another and that solely helps to direct

the materials’ progressive motion. The Court, however, rejects this

position because it is ultimately based upon Defendants’ mistaken

belief that the ’998 patent cannot be used with the auxiliary parts

that Sorensen criticized in the abstract and Objects of the Invention

sections of his patent. This position misreads Sorensen’s criticism of

(Cont'd)

55a

Appendix D

Turn-Key argues that “substantially enclosed” must be

construed to mean that the conduit is “almost entirely

enclosed or non-open from the outside environment along

its length.” Joint Statement at 10; P1’s Opening Brief at

11-12. Defendants argue that “‘substantial!y enclosed” must

be construed to mean that the conduit has “no significant

openings except for an inlet and outlet.” Joint Statement at

29: Crest’s Responsive Brief at 10; KM, MC, & Concord’s

Brief at 6-7. The Court construes the phrase “substantially

enclosed” according to its ordinary and customary meaning,

thus signifying a conduit that is almost entirely closed in

from the outside environment. The Court declines to construe

the phrase as requiring an inlet and an outlet on the grounds

that it adds an extra limitation present in neither the

claim language nor in the essence of the term “conduit.”

See Random House Webster’s College Dictionary at 275.

(Cont’d)

the parts and has already been rejected by the Court. See supra Section

IV.A.1.a; see also Rolls-Royce, 800 F.2d at 1108 (“Reference to an

object does not constitute in itself a limitation in the claims.”).

The case cited by Crest’s counsel during oral argument, O./. Corp. v.

Tekmar Co. Inc., 115 F.3d 1576 (Fed. Cir. 1997), does not sway the

Court to the contrary because there, the Federal Circuit found that

the written description in the patent “expressly distinguishes over

prior art passages by stating that those passages are generally smooth-

walled.” /d. at 1581. Here in contrast, the abstract and objects section

of the 998 patent does not expressly distinguish Sorensen’s invention

over prior art by stating that auxiliary moving parts cannot be used

but only that they need not be used. Though Crest’s counsel argues

that all three preferred embodiments in the specification show the

guide conduit as being the sole mechanism that directs the movement

of the molded product, the Court once again notes that it is the claim

which measures the invention, not the specification.

See SRI, 775 F.2d at 1121.

56a

Appendix D

Though it is true that the drawings of the preferred

embodiments depict two openings, it is the claim which

measures the invention, not the specification. See SR/

International vy. Matsushita Electric Corp., 775 F.2d 1107,

1121 (Fed. Cir. 1985). Thus, the Court focuses on the claim’s

language. The Court agrees with Turn-Key that a conduit, in

its ordinary sense, need not possess two major openings.°

Taking into account the specification, the Court notes that

Defendants’ contention that the inlet is necessary to allow

for the introduction of air to transport the product, KM, MC,

& Concord’s Brief at 6, is belied by the first and second

preferred embodiments which do not use a stream of air.

b. The second portion of Element (d)

The second portion of Element (d) of the invention

requires a substantially enclosed guide conduit “having

contours defined by the regions of the parting surface and

the internally positional cavity/ies that are exposed

subsequent to separation.” Turn-Key argues that this portion

of Element (d) requires that the conduit, “at minimum, has

contours substantially defined by regions of the parting

surface and internally positioned cavity/ies that are exposed

to the void within the mold after the mold parts separate.”

Joint Statement at 11; Pl’s opening Brief at 12-14. Defendants

argue that this portion of Element (d) must be construed as

requiring all internal surfaces of the guide conduit to be

6. For example, a thermometer is described as a sealed glass

tube which contains a column of liquid, as mercury, that expands

and contracts with temperature changes. See Random House

Webster’s College Dictionary at 1336. Ona basic level, a thermometer

is thus a “conduit” which carries liquid from one place to another.

S7a

Appendix D

formed only by areas of the parting surfaces and of the mold

cavity. Crest’s Responsive Brief at 13-14; KM, MC &

Concord’s Brief at 7-9.

The Court construes “contours” according to its ordinary

and customary meaning, thus signifying the outline of a figure

or body, Random House Webster’s College Dictionary at 287,

and “define” according to its ordinary and customary

meaning, thus signifying to determine or fix the boundaries

or extent of. Random House Webster’s College Dictionary

at 346. In applying these meanings, the Court thus construes

this portion of Element (d) to require that the outlines of the

body of the conduit be determined or fixed by the regions of

the parting surface and cavity surfaces; in other words, the

contours are formed only by these regions. The prosecution

history supports this plain language reading of the claim as

it records the exclusion of the term “substantially” which

was disclaimed by Turn-Key during the prosecution.

See Rolls-Royce, 800 F.2d at 1108; Exhibit B to Decl. of

Gaffin at 29, 55, 63 (showing that the claim language of the

“contours of said conduit, substantially being defined by

regions of the parting surface and the internally positioned

cavity/ies, which are exposed subsequent to separation” was

amended to “a substantially enclosed guide conduit having

contours defined by the regions of the parting surface and

the internally positioned cavity/ies that are exposed

subsequent to separation and leading in a direction

substantially perpendicular to said predetermined direction”).

Specifically, the history shows that the Examiner rejected

Sorensen’s patent application, in part, because “(t]he

invention, as does the prior art utilized an air ejection of

58a

Appendix D

molded plastic articies from mold cavities upon opening of

the mold parts. The conduit of the prior art is thus

‘substantially defined’ by the opened mold parting surfaces.”

Exhibit B7 to Decl. of O’Brien at 110. In a June 2, 1983

Examiner Interview Summary Record, the Examiner writes

that Sorensen’s counsel, Edward Callan

pointed out that separate mold part define the

guide conduit in which artic[le] [is] transported.

Examiner suggested that amendment of claim to

positively recite formation of such guide conduit

by configuration (shaping) of such mold parts

defines and is allowable over art of record.

Exhibit B8 to Decl. of O’Brien at 112. The final language of

Element (d) reflects this suggested change. The Court finds

that this history defeats Turn-Key’s position that the

amendment broadened, rather than narrowed, the claim

language with respect to the description of the contours of

the guide conduit. P1’s Reply at 10-11.’ For though the claim

7. Turn-Key’s position is based upon its argument that “having”

‘is an “open” claim term designating “that the named elements are

essential, but [that] other elements maybe added and still form a

construct within the scope of the claim.” Pl’s Reply at 11. “The term

‘having’ does not mean ‘including only”’ but means “including at

least.” Jd. Turn-Key thus argues that the sentence, “a car having

front doors,” does not mean that a car can only have front doors. Pl’s

Opening Brief at 12 (emphasis in original). Rather, “(t]he car can

have other doors and still be covered by the claim. The car with

front doors would not avoid infringement if it also had wheels, back

doors, and a hatchback, for example. The front doors would be an

essential element of the claim, but would not exclude any other

(Cont’d)

59a

Appendix D

language had previously required that the contours of the

conduit be mostly determined by the regions of the parting

and cavity surfaces (“substantially being defined by”), the

final language requires that the contours be determined by

those regions (“having contours defined by’).

The parties also dispute the interpretation of “exposed

subsequent to separation’—Turn-Key, on the one hand,

argues that this language should be interpreted to refer to the

regions of the parting surface and internally positioned cavity/

ies that are exposed to the void within the mold after the

mold parts separate. Pl’s Opening Brief at 14; P1’s Reply

Brief at 12-13. Defendants, on the other hand, argue that

“exposed subsequent to separation” refers to the areas of the

parting surface and of the surfaces of the mold cavity that

are exposed to the molded plastic part after the mold is

opened. Crest’s Responsive Brief at 14; KM, MC, &

Concord’s Brief at 7 n.7. Turn-Key and Defendants both point

to the specification to support their respective interpretations

Turn-Key argues that Figures 3, 5, 7, 9, and 11 show that

“only surfaces that are exposed to the void within the mold

are designated as contours of the guide conduit,”

Pl’s Opening Brief at 14, and Defendants argue that Figures

3 and 5 “show that all of the indicated contours are exposed

(Cont'd)

elements.” /d. Though Turn-Key’s observations about the car example

may be valid, the Court finds that the analogy is inapplicable to the

case at hand because the phrase at issue here is “having contours -

defined by.” Turn-Key’s car example, in contrast, only involves the

term “having” and as such, analogizing the car example to the present

case necessarily reads the term “defined” out of existence of Element

(d) of Claim 1.

60a

Appendix D

to the molded product part (petri dish 6), i.e. not separated

from the dish by any intervening structure. The same can be

seen in [Figure] 9.” Crest’s Responsive Brief at 14.

The Court, however, is persuaded by neither of these

proposed interpretations because both Plaintiff and

Defendants, at bottom, are attempting to read what they

perceive to be limitations contained in the preferred

embodiments into the claim language. See SRI International,

775 F.2d at 1121; see also Laitram Corp., 863 F.2d at 865

(“References to a preferred embodiment, such as those often

present in a specification, are not claim limitations.”).

In addition, the Court agrees with Defendants that Turn-Key’s

interpretation is circular because the “void within the mold”

is none other than the guide conduit itself, aud the “exposed”

contours are themselves the defining features of the guide

conduit. Thus, Turn-Key’s construction ‘“define[s] the

contours of the guide conduit in terms of the conduit itself.”

Crest’s Responsive Brief at 14. The Court, however, also

rejects Defendants’ construction because it is premised on

the proposition that there can be no intervening structures

between the contours of the guide conduit and the product.

Id. This position has already been rejected by the Court.

See supra Ill.A.1.b.

The Court looks at the language of the claim itself, as it

must, to interpret the phrase “exposed subsequent to

separation.” Vitronics, 90 F.3d at 1578. The dictionary defines

“expose,” in part, as “to uncover, bare,” “to present to view,

exhibit,” or to “make known [or] reveal.”” Random House

6la

Appendix D

Webster’s College Dictionary at 460. The Court, in applying

the ordinary and customary meanings of the word “expose,”

construes the phrase to refer to the regions of the parting

surfaces and the cavity surfaces that are revealed or uncovered

after the “separating” process described above, see supra

Section IV.A.5.a.i, so that they can be viewed by the eye.

- Nothing in the specification suggests that Sorenson, as

patentee, intended to define the phrase in his own terms rather

than by the phrase’s common, customary meaning. Vitronics,

90 F.3d at 1584-85.

c. The third portion of Element (d)

The third portion of Element (d) of the invention requires

that the substantially enclosed guide conduit be “leading in

a direction substantially perpendicular to said predetermined

direction.” Turn-Key argues that this language must be

construed to require that the conduit lead in a direction

substantially perpendicular to the direction that one or both

of the mold parts move toward the other. Joint Statement at

12; Pl’s Opening Brief 14. Turn-Key argues that its

construction follows the plain language and that no rewording

is necessery to interpret the claim. Defendants, on the other

hand, argue that “leading in a direction” means “determining

a single path that is used for movement of molded plastic

products” and that “said predetermined direction” means “the

straight path running between the two mold parts, along

which they were moved in closing the mold and in opening

the mold.” Joint Statement at 16. Thus, Defendants conclude

thai “the guide conduit determines a single path for movement

of molded plastic products, which is in a plane substantially

perpendicular to the path of mold opening and closing.” Id.

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Appendix D

In line with the Court’s construction of Element (a) and

the first portion of Element (d), the Court rejects Defendants’

attempts to construe “direction” and “predetermined

direction” in such a restrictive manner as to signify a “straight

path.” See supra at Section IV.A.2 and IV. A.5 (a)(i). Rather,

the Court construes the third portion of Element (d) to require

that the substantially enclosed guide conduit lead in a

direction almost entirely perpendicular to the predetermined

direction that one or both of the mold parts were moving

toward the other during the process when they were being

brought together. In so construing, the Court finds

“perpendicular” to be utilized in its everyday, ordinary sense

and concludes that as such, it need not be further defined.

6. Element (e)

Element (e) of Claim 1 requires “Ejecting the plastic

product into said guide conduit.” Joint Statement at 12.

Turn-Key argues that this element must be construed to

require “Removing the plastic product from one of the mold

parts” into the substantially enclosed conduit. /d.; P1l’s

Opening Brief at 14-15. Defendants conversely argue that

the phrase means “forcefully discharging each molded plastic

product from a surface of the mold cavity so that it enters

the guide conduit and so that it is free to move within the

guide conduit and is not held away from the walls of the

guide conduit by any intervening structure.” Joint Statement

at 38; Crest’s Responsive Brief at 15-16; KM, MC, &

Concord’s Brief at 10.

The dictionary defines “eject” as: 1. To drive or force

out; expel. 2. To dismiss, as from office. 3. To evict. 4. To

63a

Appendix D

throw out or throw off. 5. To propel oneself from a disabled

airplane, especially by an ejection seat. Random House

Webster’s College Dictionary at 419. In applying this

definition to the ’998 patent, the Court construes Element

(e) to require that the plastic product be expelled or otherwise

driven into the substantially enclosed conduit.’ The Court,

however, declines to construe Element (e) as requiring either

that the plastic product be free to move within the guide

conduit after its ejection or that it is not held away from the

walls of the guide conduit by any intervening structure on

the grounds that they represent extra limitations not present

in the claim language. The patent’s language does not disclose

a specific ejection method to be utilized and the

specification’s references to particular methods (i.e. stripper

plate) should not be read into the actual claim itself. See

Laitram, 863 F.2d at 865 (“References to a preferred

embodiment, such as those often present in a specification,

are not claim limitations.”); see also ’998 patent at Col. 5 11

6-11; 11.15-17; 23-25 (“While the above description contains

many specificities, these should not be construed as

limitations on the scope of the invention, but rather as an

exemplification of one preferred embodiment thereof... .

8. Dur

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Petition for Writ of Certiorari — Turn-Key-Tech, LLC v. National Film Laboratory, Inc. · 541 U.S. 1063 | Frix