# Opposition Brief — Pirkle v. Ogontz Controls Co.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1995
- **Citation:** 516 U.S. 863

## Text

No. 95-45 |
CLERK

In The

Supreme Court of the United States
October Term, 1995
4

FRED L. PIRKLE and THEKM-OMEGA-TECH, INC.,
Petitioners,

Vv.

OGONTZ CONTROLS COMPANY and
THOMAS M. KENNY,

Respondents.

+

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Federal Circuit

,
-

BRIEF IN OPPOSITION
¢

Douctas L. Overtoom
Counsel of Record

Larry L. TurRNeR

Howarp J. BASHMAN

MontTGomEry, McCRACKEN,
Waxxer & RHOADS

Three Parkway — 20th Floor

Philadelphia, PA 19102

(215) 7200

Counsel for Respondents

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QUESTIONS PRESENTED FOR REVIEW

I. Whether this is an appropriate case for this Court
to decide if patent claim interpretation is a question of
fact for a jury or a question of law for the court given
that: (a) a jury, a district court judge and the Federal
Circuit have interpreted the patent claims at issue in this
case and found infringement, and (b) petitioners waived
the argument that claim interpretation is a question of
fact for the jury by arguing in both the trial court and on
appeal to the Federal Circuit that claim interpretation is
an issue of law to be decided by the court?

II. Whether the Seventh Amendment is satisfied by
two jury trials regarding the issues of validity and
infringement or whether that provision of the Constitu-
tion requires additional jury trials to be held until a
verdict in petitioners’ favor is obtained?

Il]. Whether this Court should grant certiorari to
entertain petitioners’ claim - which was rejected by the
Federal Circuit in banc — that a panel of Federal Circuit
judges used summary affirmance to avoid application of
binding Federal Circuit precedent?

ii
PARTIES TO THE PROCEEDINGS

The petitioners in this proceeding are Fred L. Pirkle
and Therm-Omega-Tech, Inc.

Respondents are Ogontz Corporation (formerly
Ogontz Controls Company) and Thomas M. Kenny. Pur-
suant to Rule 29.1, Ogontz Corporation states that it has
no parent or subsidiary companies.

iii

TABLE OF CONTENTS

Page
QUESTIONS PRESENTED FOR REVIEW........... i
PARTIES TO THE PROCEEDINGS................. ii
Sime GO PAST IMATION . 0.5... 550. ocnee ee. iv
STATEMENT OF THE CASR....................... 2
SUMMARY OF THE ARGUMENT ................. 8
OPI Bio hae a oy gc, ek 10

I. THIS IS NOT AN APPROPRIATE CASE FOR THIS
COURT TO DECIDE IF THE SEVENTH AMEND-
MENT REQUIRES QUESTIONS RELATING TO
THE MEANING OF PATENT CLAIM TERMS TO
E> SURE OED BOD A POUR, coo coo oc ee cca 10

A. This Is Not An Appropriate Case To Exam-
ine Whether The Judge Or The Jury Should
Interpret The Claims Of A Patent Because
Both Did So In This Case and Found

WENN. os Set oe cee cos kc kcs...... 11
B. T-O-T Waived The Present Argument By
Failing To Raise It Below.................. 12

II. T-O-T’S REQUEST TO SET ASIDE THE JURY
VERDICTS ON PATENT INFRINGEMENT AND
ON THE AFFIRMATIVE DEFENSE OF PATENT
INVALIDITY DO NOT WARRANT ADDI-
TIONAL APPELLATE REVIEW BY THIS
CIS eI 3h wks cE ss Cebit eas boa 14

Ill. A COURT OF APPEALS IS NOT REQUIRED TO
ISSUE A WRITTEN DECISION WHEN AFFIRM-
ING A JUDGMENT OF A DISTRICT COURT... 19

A. The Merits Panel Did Not Conspire To Use
Federal Circuit Rule 36 To Avoid Applica-
tion Of The Markman Decision............ 19

GI Oe oh dies ives 5 T-O-T admitted in its petition for rehearing to the Federal
Circuit that “the Markham [sic] decision attenuates the constitu-
tional magnitude of the error” that allegedly resulted from hav-
ing different juries return verdicts on validity and infringement.
Petition for Rehearing at 8. Indeed, under Markman claim inter-
pretation is not even a function of the jury. Therefore, T-O-T’s
second question will never arise again, and there is conse-
quently no need for this Court to spend its limited judicial
resources reviewing the issue.

16

Chemical Corp. v. Peachtree Doors, Inc., 787 F.2d 1545 (Fed.
Cir.), cert. dismissed, 479 U.S. 877 (1986), supports its
position was considered and rejected by the Federal Cir-
cuit.®

Moreover, to the extent that the Federal Circuit in
Witco expressed any views as to the interconnectedness of
the issues of an invalidity defense and claim construction,
its reasoning was clearly and carefully restricted to the
record in that case. The Federal Circuit simply refused to
construe Witco as a sweeping edict that these issues may
never properly be decided by separate juries.”

6 The actual holding of Witco was that the trial court abused
its discretion when it coerced a deadlocked jury into reaching a
verdict on infringement. See 787 F.2d at 1548-49. This clearly did
not occur in the present case. Here the district court was exceed-
ingly sensitive to the jury’s important role, and excused the first
jury — without objection by either party — after only one day of
deliberations. Before concluding its deliberations the first jury
reached a verdict, by special interrogatories, on the affirmative
defenses of validity and unenforceability. (Rec. 5546-47; 5551;
2053-54.) As explained above, the Seventh Amendment does not
permit this verdict to be set aside absent compelling evidence
that it was erroneous. Such evidence is lacking here.

7 The actual language of the Witco opinion reads:
Furthermore, it is inappropriate, in light of the evidence
presented and arguments made at this trial, to have one
jury return a verdict on the validity, enforceability
and contract questions while leaving the infringe-
ment questions to a second jury. We reached this con-
clusion only after considering the totality of the
circumstances and by answering, “How may the ends
of justice be served?” [Citations omitted] . . . Here the
arguments against infringement are indistinguisha-
bly woven with the factual underpinnings of the

i siaeaeeianeinaiainiaieiiiaaiaiaaiieiiaiiil

17

It is well-settled within the Federal Circuit that the
issues of validity and infringement may be decided by
separate juries. For example, in Fraige v. American-
National Watermattress Corp., 996 F.2d 295 (Fed. Cir. 1993),
a jury returned special verdicts finding infringement and
invalidity due to anticipation and obviousness. The
appeals court left the special verdict on infringement
intact, but remanded for a new trial limited to the issue of
validity, thus requiring two different juries to consider
the issues of infringement and validity. Fraige, 996 F.2d at
300.

In Structural Rubber Products Co. v. Park Rubber Co.,
749 F.2d 707, 720 (Fed. Cir. 1984), the Federal Circuit,
discussing the Seventh Amendment, noted that “[t]o aid
comprehension, complex cases have been tried a step at a
time, receiving the jury’s answer to one phase of a case,
and only then continuing to the next.” The court reiter-
ated its holding that a trial court “may ask for a general
answer on one or more specific legal issues.” Structural
Rubber, 749 F.2d at 720. In the initial Structural Rubber
trial, a jury found that devices made by Park Rubber Co.
infringed Structural’s patents but that the patents them-
selves were invalid. On appeal the Federal Circuit
reversed the judgment as to invalidity only and

validity and enforceability determinations and the
subject matter of the contract.
787 F.2d at 1549 (emphasis added).

Certainly in this case, where the district court and the Fed-
eral Circuit agree completely with the jury’s findings that the
‘007 patent is both infringed and not invalid, the “ends of jus-
tice” are best served by denying review of T-O-T’s second
ground for certiorari. (Rec.11; 5546-47.)

18

remanded for further proceedings. Structural Rubber, 749
F.2d at 724. A second jury trial was held limited to the
issue of invalidity. Structural Rubber Products Co. v. Park
Rubber Co., 1986 WL 12326 (N.D. Ill. Oct. 24, 1986). At the
second trial the new jury found the patent claims valid
and the trial court granted Structural’s request for a
permanent injunction against Park. The Federal Circuit
affirmed the judgment following the second trial without
published opinion. Structural Rubber Products Co. v. Park
Rubber Co., 854 F.2d 1328 (Fed. Cir. 1988). Thus, it is clear
that validity and infringement may be considered by two
different juries.

Because the only authorities identified by T-O-T are
limited to determinations made upon the specific argu-
ments and evidence presented at the trial of other cases;
because T-O-T has identified no evidence or argument
presented at the trial of this case that would justify setting
aside the jury verdict at issue here; because the verdict on
validity was reached on special interrogatories pursuant
to Federal Rule of Civil Procedure 49; because the ver-
dicts are in no way inconsistent with each other; because
the trial judge, who heard the evidence at both trials,
reviewed the verdicts on post trial motions; because the
merits panel of the Federal Circuit made a de novo
review of the patent claims and affirmed the judgment of
the trial court; because the Federal Circuit considered and
rejected the present argument in its refusal to grant
rehearing in banc; and because the Seventh Amendment
requires that the verdicts be retained unless it is virtually
impossible to make sense of the verdicts as returned, the
rational answer in this case to the question “how may the

19

ends of justice be served” is to deny T-O-T’s second
ground for certiorari.

Ill. A COURT OF APPEALS IS NOT REQUIRED TO
ISSUE A WRITTEN DECISION WHEN AFFIRM-
ING A JUDGMENT OF A DISTRICT COURT

A. The Merits Panel Did Not Conspire To Use
Federal Circuit Rule 36 To Avoid Application
Of The Markman Decision

In the third question presented for review, T-O-T asks
this Court to hold that the entry of a summary affirmance
of the trial court’s judgment “denies the appellants their
statutorily granted right of appeal.” Petition at i. T-O-T
further argues, in essence, that the use of Federal Circuit
Rule 36 by the judges implies that the judges of the
United States Federal Circuit Court are involved in a
conspiracy against T-O-T.

T-O-T’s argument mistakes the absence of a written
decision for a lack of appellate review. The use of a
judgment order does not indicate that an appeal is receiv-
ing less than close appellate scrutiny. See Taylor v.
McKeithen, 407 U.S. 191, 194 n. 4 (1972) (per curiam);
United States v. Baynes, 548 F.2d 481, 482-84 (3d Cir. 1977)
(per curiam) (rejecting due process challenge to the affir-
mance of a criminal conviction by judgment order).

The Honorable Judges Pauline Newman and Randall
Rader and Senior Judge Byron Skelton read and consid-
ered briefs totaling over 125 pages. They gave each party
a full opportunity to argue the issues raised on appeal.

20

Indeed, each party was given extra time for oral argu-
ment. Based on the briefs and arguments, the Panel deter-
mined that T-O-T’s appeal was without merit.

The appellate review T-O-T received from the Federal
Circuit did not end with the three-judge panel assigned
to their appeal. T-O-T filed a petition for rehearing and
suggestion for rehearing in banc. The Federal Circuit
ordered Ogontz to file an answer for distribution to the
entire in banc court. After reviewing T-O-T’s petition and
Ogontz’ answer thereto, none of the fourteen active
judges on the Federal Circuit noted his or her dissent
from the denial of rehearing in banc. See App. 49-50.
Indeed, if any of the other judges of the Federal Circuit
had believed the merits panel had used Federal Circuit
Rule 36 to avoid application of the Markman decision,
they certainly would have voted to rehear the appeal in
banc. Their refusal to do so clearly illustrates that they
believed the panel properly applied the precedents of the
Federal Circuit.8 While T-O-T is no doubt disappointed
with the outcome of its appeal, the appeal received suffi-
cient appellate review.

The rule of law that T-O-T seeks this Court to
announce is contrary to this Court’s decisions and has no
basis in reason. For example, in Taylor, 407 U.S. at 194 n.4,
this Court stated that:

We, of course, agree that the courts of appeals
should have wide latitude in their decisions of

8 For additional explanation of this point, see Answer of
Appellees to Appellants’ Petition for Rehearing In Banc. Resp.
App. at 1-15.

21

whether or how to write opinions. That is espe-
cially true with respect to summary affirmances.

The consequences of the rule T-O-T would have the
Court adopt would be far-ranging. The courts of appeal
would be required to issue written decisions on every
appeal, wasting limited and precious judicial resources
on cases the panel finds unworthy of special note.

For these reasons, this Court should reject T-O-T’s
third ground for certiorari.

¢

CONCLUSION

For the foregoing reasons, Ogontz respectfully
requests that this Court deny the petition for a writ of
certiorari.

Respectfully submitted,

Douctas L. OvERTOOM
Counsel of Record

Larry L. TURNER

Howarp J. BASHMAN

MontTGOMERY, MCCRACKEN,
WALKER & RHOADS

Three Parkway —- 20th Floor

Philadelphia, PA 19102

(215) 665-7200

Counsel for Respondents

Resp. App. 1

ANSWER OF APPELLEES TO APPELLANTS’
PETITION FOR REHEARING WITH
SUGGESTION FOR REHEARING IN BANC

UNITED STATES COURT OF APPEALS
FOR THE FEDERAL CIRCUIT

Appeal No. 94-1454

FRED L. PIRKLE and
THERM-OMEGA-TECH, INC.,

Plaintiffs-Appellants,
v.

OGONTZ CONTROLS COMPANY
and THOMAS M. KENNY,

Defendants-Appellees.

Appeal from decisions of the United States District Court
for the Eastern District of Pennsylvania, in Civil Action
Nos. 86-3374 and 90-2430, entered May 19, 1994, July 8,
1994 and July 28, 1994, Hon. Clifford Scott Green, Senior
District Judge

Douglas L. Overtoom

Montgomery, McCracken,
Walker & Rhoads

Three Parkway, 20th Floor

Philadelphia, PA 19102

Attorney for Appellees

Larry L. Turner
Howard J. Bashman
OF COUNSEL

Resp. App. 2

UNITED STATES COURT OF APPEALS FOR THE
FEDERAL COURT

Pirkle v. Ogontz Controls

No. 94-1454
CERTIFICATE OF INTEREST

Counsel for the appellee, Ogontz Corporation (for-
merly Ogontz Controls) and Thomas M. Kenny, certifies
the following:

1. The full name of every party or amicus repre-
sented by me is:

(a) Ogontz Corporation
(b) Thomas M. Kenny

2. The name of the real party in interest (if the party
named in the caption is not the real party in interest)
represented by me is:

N/A

3. The parent companies, subsidiaries (except
wholly-owned subsidiaries), and affiliates that have
issued shares to the public, of the party or amicus curiae
represented by me are:

None (see also attached disclosure statement).
4. The names of all law firms and partners or associ-
ates that appeared for the party or amicus now repre-

sented by me in the trial court or agency or are expected
to appear in this court are:

(a) Montgomery, McCracken, Walker & Rhoads:

(i) David H. Marion, Esquire
(ii) Robert E. Welsh, Jr., Esquire

ee at mn ET narra ere eer rn ne ihe wore ennnmontarmianec snr N=

Resp. App. 3

(iii) Larry L. Turner, Esquire
(iv) Stephen D. Ellis, Esquire
(v) Douglas L. Overtoom, Esquire

(b) Woodcock, Washburn, Kurtz, Mackiewicz
& Norris:

(i) Norman L. Norris, Esquire
(ii) Dale Heist, Esquire

(c) Reed, Smith, Shaw & McClay:
(i) Robert C. Podwil, Esquire

8-23-94 /s/ Douglas L. Overtoom
Date Douglas L. Overtoom
MONTGOMERY,
McCRACKEN, WALKER
& RHOADS

Three Parkway, 20th Floor
Philadelphia, PA 19102
(215) 665-7200

Counsel for Appellee

Resp. App. 4

TABLE OF CONTENTS

PAGE
CERTIFICATE OF TIGTEIRBGS 650 cece kc isescesus i
TABLE CF COMMU eee eka’ dpe ccens 60000 cet vas bce ii
TABLE OF AUF ERGiree Mee 66.06 vis CuCe Geile ce cd iii
I. EGER. Been sdeces 8 vaseaes shad ci 1
H. ARGUMBIE Ss cos. cwiss cuswnsd eas tocsnie Jaan 3

A. A Rehearing On The Affirmance Of The
Judgment Of Patent Infringement is not
ADOCODTIONS, « oc kc icc chee seek lb cue eine eae 3

B. Appellants’ Antitrust and State Law Argu-
ments have been Argued and Reargued and
are not the Proper Subject for Rehearing.. 7

C. An In Banc Rehearing Of Appellants’ State
Law Claims Would Be Wasteful Of Valuable
Joncas SID in ca cos Seda cee a cannes 10

FE. COIN EA Si ove cp watngmeeduteeres the cee 11

Resp. App. 5

TABLE OF AUTHORITIES

PAGE
CASES
Atari Games Corp. v. Nintendo of America, Inc.,

re mee Rae CN Sih s BOD 6s on hc vc in o's dade oo wane 9
Genentech, Inc. v. Eli Lilly and Co.,

998 F.2d 931, 944 (Fed. Cir.),

cert. mented, 144° S. Ct. 2426 (1993)... 6... oe ace ees 7
Markham v. Westview Instruments, Inc.,

No. 92-1049, 1995 WL 146983 (Fed.

Caer Os 29eo) fim OR) oF ois oc ieee es 3-7
Professional Real Estate

Investors v. Colombia Pictures,

Be he a OIE ie kc sev ccccudsvccscsncus 9-10
OTHER AUTHORITIES
es sn oie cos vchekwe ccawes 8
Internal Operating Procedures
Information Sheet (Fed. Cir.).................. y a Tee
Internal Operating Procedures 9.3.3 (3d Cir.)......... 11

Resp. App. 6

I. INTRODUCTION

This Court should deny Appellants’ Petition For
Rehearing And Suggestion For Rehearing in Banc
because: 1) appellants have produced absolutely no evi-
dence that the panel overlooked or misapprehended any
point of law or fact on appeal; 2) appellants are merely
rearguing points made and lost before the Federal Circuit
and the District Court for the Eastern District of Pennsy]l-
vania; and 3) the Federal Circuit has no interest in mak-
ing in banc decisions concerning Pennsylvania law.

During the course of this litigation appellants Term-
Omega-Tech and Fred L. Pirkle (hereinafter collectively
“T-O-T”) have accused both judges and officers of the
courts involved in this matter with fraud,! collusion,? and
incompetence.

True to form, T-O-T now impugns the integrity of
Circuit Judges Newman and Rader and Senior Circuit
Judge Skelton by suggesting that they entered the judg-
ment order in this matter in derogation of their duty as

1 T-O-T argued that counsel for Ogontz defrauded the
Pennsylvania courts. That contention was completely and cor-
rectly rejected by the district court. See, e.g., Joint Appendix at
A.27-28.

2 Counsel for T-O-T stated to the district court on the record
that Ogontz only won in the state court proceedings because
Ogontz’ attorney “had it in with the Judge.” See Joint Appendix
at A.959-60.

3 T-O-T’s suggestion that the judgment order issued by the
Federal Circuit in this appeal was entered due to a clerical
mistake is insulting, incredible and not worthy of further com-
ment. See Appellants’ Petition for Rehearing With Suggestion
For Rehearing In Banc at 3.

Resp. App. 7

appellate judges to make “difficult or troublesome deci-
sions,” or, worse, to deliberately conceal divisive or dis-
turbing issues. See Appellants’ Petition for Rehearing
With Suggestion For Rehearing In Banc at 6-7 n.1. While
any litigant with ink and paper has the ability to suggest
that three distinguished Circuit Judges of this Court
improperly used a judgment order to “conceal divisive or
disturbing issues,” id., the petition for rehearing falls far
short of substantiating such a grave assertion.

A three judge merits panel of the Federal Circuit will
enter a judgment of affirmance without opinion only
when they unanimously agree that “the appellants have
utterly failed to raise any issues in the appeal that require
an opinion to be written in support of the court’s judg-
ment of affirmance.” Internal Operating Procedures Infor-
mation Sheet provided by the Court to the parties upon
mailing of the judgment order (hereinafter “1.0.P. Infor-
mation Sheet”). In spite of the fact that T-O-T unques-
tionably failed to persuade any member of the panel that
any of the eight separate issues raised on appeal had
merit, T-O-T ignores the Federal Circuit’s admonition that
“petitions for rehearing are rarely considered mer-
itorious,” id., and disregards the Court’s instructions not
fo reargue matters already considered by the panel. Id.
Instead, T-O-T demands yet another bite of an apple it
has already gnawed to the core.

Resp. App. 8

Il. ARGUMENT

A. A Rehearing On The Affirmance Of The Judg-
ment Of Patent Infringement is not Appropri-
ate.

A rehearing on the affirmance of the judgment of
patent infringement is not appropriate. All of appellants’
present arguments were addressed in the briefs and/or
discussed at oral argument. Nor is the distinguished
panel guilty of “hiding the ball” by its use of a judgment
order.

On the same day that this appeal was argued before
the panel, this Court released an in banc decision holding
that claim construction was a matter of law subject to de
novo review on appeal. Markham v. Westview Instruments,
Inc., No. 92-1049, 1995 WL 146983 (Fed. Cir. Apr. 5, 1995)
(in banc). It was thus clear at the time the panel heard
oral argument and issued its affirmance of the judgment
in this matter that claim construction is a matter of law
subject to de novo review. Id.

Appellants’ argument seems to be based upon the
assumption that the panel was unaware of the Markham
opinion, or in a conspiracy not to apply the holding of
that decision, or misunderstood Markham’s holding. Such
a position is insupportable. Appellants fully briefed the
line of cases supporting the Markham decision, and the
panel inquired about the issue of de novo review during
oral argument. See Brief of Appellants at 32-45. In fact,
appellants’ counsel admits that he expressly reminded
the panel of the in banc consideration of Markham and
instructed the panel that “the Markham in banc decision

Resp. App. 9

would control.” Appellants’ Petition For Rehearing With
Suggestion For Rehearing In Banc at 2. It is disingenuous
of appellants to complain that the panel overlooked or
misapprehended the holding of Markham or its power to
conduct de novo review of a patent’s claim language. If
anything, the judges were more keenly aware and more
sharply focused on the requirements established by Mark-
ham.

Under Markham, the panel in the present appeal had
the “power and the obligation to construe as a matter of
law the meaning of the language used in the patent
claims,” Markham, WL 146983 at *11. There is no evidence
to indicate that the panel failed to carry out its duty. The
panel apparently did reexamine and re-construe the
claims and agreed with the previous findings of the jury
and the district court that T-O-T’s devices infringe claims
4, 9 and 10 of Ogontz’ ‘007 patent. Thus, three separate
evaluations, by a jury, a district court judge and a merits
panel of the Federal Circuit, have now concluded that the
patent claims at issue are infringed by T-O-T’s products.
At some point appellants must accept defeat..

The panel reached its conclusions after examining the
materials submitted for review by the parties, and ques-
tioning counsel for both parties about those materials at
oral argument. In the briefs and appendices submitted,
the panel was presented with the patent claims of the ‘007
patent, the patent specification, the prosecution history
(including the entire file wrapper for the ‘007 patent)4

* Interestingly, appellants objected to the inclusion of the
prosecution history of the ‘007 patent as irrelevant material and

Resp. App. 10

and, to the extent provided by the parties, extrinsic evi-
dence received by the district court. The panel, therefore,
had available to it all the necessary information required
by Markham to review and construe de novo the claim
language as a matter of law. Markham WL 146983 at *11.
To suggest — without any shred of evidence to support
such an argument -— that the panel failed to conduct this
review, or deliberately refused to do so, demonstrates the
desperation of T-O-T’s position.5

Contrary to appellants’ argument, review of the audi-

_ otape of the oral argument will indicate that the panel did
review the claims de novo and did construe the meaning
of the claims as a matter of law. During oral argument
Judge Rader specifically indicated to appellees’ counsel
that the panel could make a de novo review and construe
the claims at issue as a matter of law. In addition, Judge
Rader raised questions concerning the specific meanings
of various terms contained in the claims. Judge Rader’s
questioning indicates that the panel, well aware of the in

refused to include this highly relevant information in the Joint
Appendix unless Ogontz advanced the copying costs. Ogontz
agreed to advance the costs to avoid troubling this Court with
additional motion practice. Even now, T-O-T still complains that
the prosecution history was irrelevant, a position which is
clearly frivolous in light of the holding in Markham, and refuses
to reimburse Ogontz for inclusion of this material in the appen-
dix as requested in Ogontz’ Bill of Costs. See Appellant’s Objec-
tions To The Bill Of Costs Of Ogontz Corporation at 3-4.

5 Each of the judges on the panel took an oath to uphold the
Constitution and the laws of the United States. It is axiomatic
that a presumption exists that a merits panel of a United States
court of appeals will follow the law. T-O-T has utterly failed to
rebut that presumption here.

eT een eee N

Resp. App. 11

banc decision in Markham, followed the holding of that
case and made a de novo review of the claim language
and construed the claim language as a matter of law by
examining the claim language itself, the specification, the
prosecution history and, where helpful, the available
extrinsic evidence. Moreover, the panel’s unanimous
decision, and the entry of a judgment of affirmance with-
out opinion, makes clear that upon review the panel
agreed that the judgement of infringement was proper
and that appellants’ argument was utterly without merit.

There is absolutely no evidence to support appel-
lants’ assertion that the panel overlooked or misap-
prehended the holding of Markham. Indeed such a
suggestion under the circumstances is outrageous.

6 Appellant’s counsel certifies that this appeal presents the
“precedent-setting question” of whether panels of the court are
obliged to apply in banc holdings of the court to pending
appeals. This truly is not an issue in this appeal. As explained
above, the evidence indicates the panel did apply Markham in
the present appeal. In any case, the Federal Circuit is in agree-
ment with the general rule that a court should apply the law in
effect at the time it renders its decision, unless doing so would
result in manifest injustice. Genentech, Inc. v. Eli Lilly and Co., 998
F.2d 931, 944 (Fed. Cir.), cert. denied, 114 S. Ct. 1126 (1993).
Appellant is merely attempting to manufacture an issue where
none exists.

Resp. App. 12

B. Appellants’ Antitrust and State Law Arguments
have been Argued and Reargued and are not the
Proper Subject for Rehearing.

The antitrust and state law arguments in appellants’
petition, similar to appellants’ patent infringement argu-
ment, also present this Court with the same arguments
that appellants made in the district court and before the
panel on appeal. Again, in their request for yet another
hearing on their state law and antitrust claims, appellants
ignore the standards, provided to the parties along with
the judgment order, governing petitions for rehearings of
this Court’s rulings, which clearly are not satisfied in the
present case.

Petitions for rehearing are not to be used, as appel-
lants attempt here, merely to “reargue matters already
briefed and orally argued.” I.O.P. Information Sheet. The
purpose of a petition for rehearing is to point out particu-
lar points of law or fact that the court has overlooked or
misapprehended in its opinion. Fed. R. App. P. 40(a). To
seek a rehearing by the panel a party “must be able to
identify in the court’s opinion a material error of fact or
law the correction of which would require a different
judgment on appeal.” I.0.P. Information Sheet. Therefore,
the Federal Circuit usually requires that “the court must
have filed an opinion in support of its judgment for a
petition for rehearing to be appropriate.” Id.

The granting of a suggestion for rehearing in banc is
even more restricted. The Federal Circuit generally
requires that “the merits panel entered a precedential opin-
ion” before a rehearing in banc is considered appropriate.
Id. Moreover, to justify reconsideration in banc T-O-T

Resp. App. 13

must show that the merits panel failed to follow identifia-
ble decisions of the Supreme Court of the United States or
precedential opinions of the Federal Circuit. Id.

T-O-T has not established any of the foregoing
requirements for rehearing or rehearing in banc. First, no
opinion, precedential or otherwise, was filed in support
of the judgment because in the panel’s opinion the appel-
lants had utterly failed to raise any issue on appeal
concerning the state law and antitrust claims that
required an opinion to be written. Second, T-O-T fails to
identify a single controlling decision that the merits panel
failed to follow. Third, appellants have identified no mis-
apprehended points of law or overlooked facts warrant-
ing a rehearing of the state law or antitrust claims; rather,
all of the legal arguments made by appellants are argu-
ments which have already been made, repeatedly, by
appellants and rejected by the District Court and this
Court as meritless.

The only case cited by appellants in support of
rehearing their state law claims, Atari Games Corp. v.
Nintendo of America, Inc., 897 F.2d 1572 (Fed. Cir. 1990), is
not controlling either factually or as a matter of law,
especially in light of Professional Real Estate Investors v.
Colombia Pictures, 113 S. Ct. 1920 (1993). The issue is not
whether Ogontz as a patent owner was wholly insulted
from the antitrust laws, but rather whether Ogontz as a
patent owner, a trade secrets holder and a party to a legal
employment contract was immune from antitrust liability
when exercising its rights under the Constitution to peti-
tion the courts for redress.

Resp. App. 14

Contrary to appellants’ position, the merits panel
properly followed the controlling precedent of the
Supreme Court, which held in Professional Real Estate
Investors v. Columbia Pictures, 113 S.Ct. 1920 (1993), that
those who petition the government for redress are gener-
ally immune from antitrust liability unless the petition is
a “mere sham” to cover the attempt to interfere with
competition. Id. at 1926. Sham litigation under the Noerr
doctrine cannot be found where an objective view of the
matter shows that a reasonable litigant could realistically
expect success on the merits. Id. at 1928. An objectively
reasonable effort to litigate cannot be a “sham” within the
meaning of the exception to the Noerr doctrine of immu-
nity from antitrust liability regardless of plaintiff’s sub-
jective intent. Id. at 1926. A winning lawsuit, such as
Ogontz’, is by definition a reasonable effort at petitioning
for redress and, therefore, immune from antitrust liability.
Id. at 1928 n.5.

C. AnIn Banc Rehearing Of Appellants’ State Law
Claims Would Be Wasteful Of valuable Judicial
Resources.

The request of appellants that this Court grant in
banc reconsideration on issues of state law represents a
curious request for the allocation of judicial resources.
The Third Circuit, which is presumably faced with similar
requests on a regular basis, has an internal operating
procedure providing that “rehearing in banc is ordinarily
not granted when the only issue presented is one of state
law.” 1.0.P. — 9.3.3 (3d Cir. 1994). This rule of the Third
Circuit provides a valuable example in the present case.
There is simply no reason for this court to expend its

Resp. App. 15

judicial resources on an in banc rehearing of appellants’
self styled “panoply of claims” to the extent they involve
Pennsylvania law. Appellants’ Petition for Rehearing And
Suggestion For Rehearing In Banc at 13. Therefore, the
petition for rehearing of the state law claims should also
be denied.

Il. CONCLUSION

Evidently, appellants do not believe that it is possible
the panel would have ruled against them had the panel
really understood the law and appellants’ arguments, and
believe that if they repeat their arguments enough times,
eventually the panel or the court in banc will agree with
them. Appellants have identified no legal basis for their
entitlement to repeated bites at the same apple. Quite
simply, appellants were wrong when they first made
these arguments and they are still wrong.

For all the foregoing reasons, this Court should deny
the petition for rehearing and suggestion for rehearing in
banc.

Date: May 11, 1995

/s/ DL Overtoom
Douglas L. Overtoom
MONTGOMERY, McCRACKEN,

WALKER & RHOADS

Three Parkway, 20th Floor
Philadelphia, PA 19102
(215) 665-7200
Attorney for Appellees

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386012_2044%3A3. Public record. Not legal advice.
