# Appendix — 800 Adept, Inc. v. Murex Securities, Ltd., Murex Licensing Corporation, Targus Information Corporation, and West Corporation, 505 F. Supp.2d 1327 (2008) (No. 08-859)

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Appendix
- **Published:** January 1, 2008

## Text

Supreme Court U.S.

\ es 2 08-859 wn 5- 2009

OFFICE OF THE CLERK
In The
Supreme Court of the Anited States

800 ADEPT, INC.,

Petitioner.
V.

MUREX SECURITIES, LTD., MUREX LICENSING
CORPORATION, TARGUS INFORMATION
CORPORATION, and WEST CORPORATION,

Respondents.

*

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

APPENDIX 'TO
PETITION FOR WRIT OF CERTIORARI
VOLUME I

— «

STEPHEN D. MILBRATH

Counsel of Record

DAVID W. MAGANA

ALLEN, DYER, DOPPELT, MILBRATH
& GILCHRIST, PA.

255 S. Orange Avenue, Suite 1401

P.O. Pex 3791

Orlando, FL 32801-3791

Telephone: 407-841-2330

Counsel for Petittoner

App. l

United States Court of Appeals
for the Federal Circuit

2007-1272, -1356
800 ADEPT, INC..,
Plaintiff-Appellee,

Ve

MUREX SECURITIES, LTD., MUREX LICENSING
CORPORATION, TARGUS INFORMATION
CORPORATION, and WEST CORPORATION,

Defendants-Appellants.

Stephen D. Miulbrath, Allen, Dyer, Doppelt,
Milbrath & Gilchrist, PA., of Orlando, Florida, ar-
gued for plaintiff-appellee. With him on the brief were
Brian R. Gilchrist and Stephen H. Luther.

William F. Lee, Wilmer Cutler Pickering Hale
and Dorr, LLP, of Boston, Massachusetts, argued for
defendants-appellants. With him on the brief were
Lisa J. Pirozzolo and Benjamin M. Stern, and Paul

R.Q. Wolfson, of Washington, DC.

Appealed from: United States District Court for the
Middle District of Florida

Chief Judge Patricia C. Fawsett

App. 2

DECIDED: August 29, 2008

Before GAJARSA, Circuit Judge, PLAGER, Senior
Circuit Judge, and DYK, Circuit Judge.

Opinion for the court filed by Senior Circuit Judge
Plager. Circuit Judge Dyk concurs in the result.

PLAGER, Senior Circuit Judge.

This patent case involves technology for routing
“1-800” telephone calls to an appropriate service
location, e.g., the service provider closest to the
customer who placed the call. Plaintiff 800 Adept, Inc.
(“Adept”) and Defendant Targus Information Corpo-
ration (“Targus”) sell competing services that are
used to route calls made to 800 numbers, and both
companies own patents covering systems and meth-
ods for call routing. Their customers include owners
of 800 numbers, such as Enterprise Rent-A-Car and
Pizza Hut, as well as providers of telecommunications
‘platforms” that route 800 calls for such businesses.

In 2002, Adept sued Targus, its affiliated compa-
nies Murex Securities, Ltd. and Murex Licensing

' A platform is one or more computers linked to a long
distance or local telecommunications network and is used to
handle telephone calls requiring special services.

App. 3

Corporation, and its customer West Corporation’ in
the United States District Court for the Middle
District of Florida, alleging that services sold by
Targus infringed two patents owned by Adept.° Adept
further alleged that Targus had tortiously interfered
with Adept’s business relationships by asserting
Targus’s patents against Adept’s customers. Targus
filed counterclaims alleging that Adept’s call routing
services infringed various claims in several Targus
patents.”

After a 24-day jury trial, the jury’s verdict essen-
tially found for plaintiff Adept on all issues. The jury
found that Targus willfully infringed the asserted
claims of Adept’s patents and that Adept did not
infringe the asserted claims of Targus’s patents. The
jury found that all the asserted claims of Targus’s
patents were inves .4d4 and further found that the

* The Defendants will be collectively referred to as “Targus”
throughout the remainder of this opinion unless otherwise
indicated.

* The Adept patents at issue in this case are U.S. Patent
No. Re. 36,111 (“the ’111 patent”), which is a reissue of U.S.
Patent No. 5,588,048, and U.S. Patent No. 5,805,689 (“the ‘689
patent”), collectively referred to as the “Neville patents.”

* The Targus patents at issue are U.S. Patent No. 4,757,267
(“the ‘267 patent” or “Riskin patent”) and U.S. Patent Nos.
5,506,897 (“the ’897 patent”), 5,848,131 (“the °131 patent”),
5,901,214 (“the °214 patent”), 5,907,608 (“the ‘608 patent”),
35,910,982 (“the °982 patent”), 5,956,397 (“the “397 patent”),
5,982,868 (“the °868 patent”), 6,058,179 (“the ’179 patent”), and
6,091,810 (“the ‘810 patent”), collectively referred to as the
“Moore-Shaffer patents.”

App. 4

unasserted claims of Targus’s ’897 patent and °131
patent were invalid as well. The jury also found
Targus liable under state law for tortious interference
with Adept’s business’ relationships. The jury
awarded Adept $18 million for patent infringement
and $7 million on the tortious interference claim.

The trial court entered judgment on the jury
verdict, issued a permanent injunction, and awarded
enhanced damages of $24 million on the patent
infringement claim, bringing the total damages
award to $49 million. The trial court also determined
that the case was exceptional and therefore Adept
was entitled to attorney fees under 35 U.S.C. § 285.

After thorough consideration of all the issues in
the case, we conclude that the trial! court erred
regarding a critical claim construction issue in the
Adept patents, one that permitted the jury to make
incorrect findings. Under the correct claim construc-
tion, no reasonable jury could find that Targus in-
fringes the asserted claims of Adept’s patents;
accordingly, we reverse the trial court’s judgment of
infringement. For the reasons we shall explain, we
also reverse the trial court’s judgment for Adept on its
tortious interference claim. In light of these determi-
nations, we vacate the trial court’s damages award,
the permanent injunction, and the judgment with
respect to willfulness, enhanced damages, and attor-
ney fees.

Regarding the Targus patents, with two excep-
tions we affirm the trial court’s judgment upholding

App. 5

the jury’s verdict that the asserted claims of Targus’s
patents are invalid; for the reasons we explain, we
vacate the invalidity judgment on two of the asserted
claims of Targus’s patents and remand for a new trial
on these claims. Because the validity of the unas-
serted claims of Targus’s patents was not at issue
during the trial, we vacate the trial court’s invalidity
judgment with respect to all of those claims.

BACKGROUND

The patents at issue in this case relate to tech-
nology for routing telephone calls made to 800 num-
bers. Typically when a caller dials an 800 number, the
long distance carrier (“LDC”) handling the call must
identify the 10-digit telephone number, known as a
“Plain Old Telephone System” (“POTS”) number, to
which to route the call. (A POTS number has the form
NPA-NXX-XXXX, where NPA is the area code and
NXX is the exchange.) If all calls to a particular 800
number are to be routed to a single location, the
process is relatively simple. Some businesses, how-
ever, advertise a single 800 number but have multiple
service locations. When a caller dials the 800 number
of one of these businesses, the LDC must have some
way to determine the POTS number of an appropriate
service location. For example, if the 800 number is for
a chain of pizza restaurants, the correct service
location could be the closest restaurant or one that
delivers within the geographic area in which the

caller is located.

App. 6

Plaintiff Adept owns the ‘111 patent and its
divisional, the 689 patent, both of which claim prior-
ity to an application filed on July 31, 1992. The two
patents, referred to as the Neville patents, are enti-
tled “Geographically Mapped Telephone Routing
Method and System,” and have virtually identical
written descriptions.” The Neville patents disclose a
method for directly routing an 800 call to the appro-
priate service location based on the caller’s 10-digit
telephone number (NPA-NXX-XXXX), sometimes
referred to as the Automatic Number Identification
(“ANI”). The invention involves the construction of a
database that assigns a service location POTS num-
ber to every potential caller according to geographic
criteria provided by the owner of the 800 number.
This database can be provided to the LDC, which
then routes calls made to the 800 number according
to the routing instructions in the database. The
process is summarized in the patent’s abstract:

A method and system for direct routing of
telephone calls made by a caller originating
from within specific calling areas to one of a
plurality of locations of a second party ac-
cording to certain criteria established by the
second party. This routing is accomplished
based on the assignment of latitude and lon-
gitude coordinates to a potential caller’s loca-
tion. Once these coordinates are assigned to

’ For convenience, this opinion cites only to the written
description of the ‘111 patent

App. 7

each of the potential callers, the second
party’s criteria is applied to assign the poten-
tial caller to a second party. Such criteria
could be existence within a _previously-
defined geographic area, a custom defined
geographic area, or through calculations
such as the shortest distance between coor-
dinate points. Once all such assignments
have been made, a database is assembled to
be used by a long distance carrier for direct
routing of telephone calls from callers to an
assigned second party.

"111 patent, abstract (emphasis added).

The 111 patent has five independent claims, and
the 689 patent has one independent claim, all of
which were asserted by Adept against Targus. Claim
1 and claim 17 of the ’111 patent are system claims;
claim 9 and claim 29 of the °111 patent are method
claims; and claim 41 of the °111 patent and claim 1 of
the 689 patent are directed to a method of construct-
ing a datahase. Claim 29, a method claim, is illustra-
tive of the Adept patent claims:

29. A method for direct rouling a telephone
call from a first party who has an originating
telephone number at a physical location and
who dials a telephone number including dig-
its uniquely characteristic to a second party
having a plurality of service locations, said
method comprising the steps of:

la} allocating latitude and longitude coor-
dinates to the physical location of all poten-
tial first parties;

App. 8

[b] defining the boundaries of one or more
geographical areas which can be of any size
and shape according to predetermined crite-
ria, each point along said boundaries being
defined by latitude and longitude coordi-
nates;

[c] assigning to the physical location of said
potential first parties a telephone number of a
service location of a second party that will re-
ceive calls originating from within the
boundary of a geographic area in which the
latitude and longitude coordinates of the
physical location of each of said potential
first parties lie;

ld| determining the originating telephone
number of the first party from which said
telephone call is to be routed; and

le] directly routing said telephone call to a
service location of the second party assigned
to said originating telephone number of the
first party by said step of assigning.

‘111 patent, col. 15 11.19-45 (emphases and paragraph
lettering added).

Defendant Targus owns two families of patents
referred to as the Moore-Shaffer patents, which, like
the Neville patents, disclose various systems and
methods for routing 800 calls to an appropriate
service location based on the caller’s 10-digit tele-
phone number. The first family includes seven pat-
ents: the ’897 patent; its continuation-in-part, the

‘131 patent; its continuation-in-part, the 868 patent;

App. 9

and its four continuations, the 608 patent, the ’982
patent, the °397 patent, and the °810 patent. The
second family includes the '214 patent and its con-
tinuation, the 7179 patent.

The earliest Moore-Shaffer patent is the °897
patent, which claims priority to an application filed
on February 22, 1993. The ’897 patent, which issued
in 1996, was also the subject of a reexamination
request filed by Adept in 1999. The United States
Patent and Trademark Office (“PTO”) granted the
request and in 2001 issued a reexamination certifi-
cate, confirming the patentability of all claims.

The ’897 patent discloses a database containing
two tables — a master table and a client table —
linked by a spatial key. Each record in the master
table contains a caller telephone number and a
corresponding spatial key, such as a nine-digit postal
code (referred to as “zip+4”). 897 patent, col.8 1.55 to
col.9 1.6. Each record in the client table contains a
spatial key and the telephone number of a corre-
sponding client service location. /d. at col. 9 I1.7-26.
The master table is indexed by caller telephone
numbers, and the client table is indexed by the spa-
tial key, so that when a call is placed the system
retrieves from the master table the spatial key corre-
sponding to the caller’s telephone number and then
retrieves from the client table the telephene number
of the client service location corresponding to that
spatial key. Jd. at col.10 |l.1-7. The ’897 patent de-
scribes two methods for constructing the client table,

one involving radius-defined service areas and one

App. 10

involving polygon-defined service areas for each
service location. /d. at col.15 1.52 to col. 28 1.5. The
"131 patent, a continuation of the ’897 patent, is
similar to the ’897 patent but additionally includes a
third table containing specific service location infor-
mation, such as store hours, that may be recited to
the caller by a Voice Response Unit. ’131 patent col.31
11.27-53.

With the ’868 patent, a continuation-in-part of
the °131 patent, Moore and Shaffer introduced several
new embodiments. One of these was a “real-time”
system, in which spatial calculations are performed
during the call to determine the appropriate service
location for a caller. ’868 patent col.45 1.35 to col.55
1.50. As in the ’897 patent, the service area for cach
client service location can be defined as an area with
a radius of any size or a polygon of any size and
shape. Jd. at col.47 J!.14-17. Unlike the two-table
system first described in the '897 patent, however, the
real-time system does not simply retrieve records
from tables to obtain a service location for a caller.
Instead, after a call is placed, the system creates a
window key (e.g., a rectangular area defined by
longitude and latitude coordinates) that is associated
with the caller’s location. Jd. at col.51 11.26-42. Based
on this window key, the system builds a list of poten-
tial service locations and then performs more detailed
spatial calculations to generate a final list of service
locations whose service areas encompass the caller's

location, in ascending order of distance between the

caller’s location and the service location. /d. at col.51

App. 11

1.42 to col.54 1.45. The claims of the ’868 patent are
directed to various aspects of the real-time system
and process.

The four continuations of the ’868 patent — the
608 patent, 982 patent, 397 patent, and ’810 patent
— have the same written description as the ’868
patent. While some claims of these patents are di-
rected to the rcal-time system, many are directed to
other embodiments, including, for example, a single-
table database, referred to as a “telephone number to
telephone number” (“TNTTN”) table, which is essen-
tially a merger of the master and client tables first
disclosed in the 897 patent.

The second family of Moore-Shaffer patents
includes the ’214 patent and °179 patent. They dis-
close spatial key-linked, multi-table databases for
providing informatien to callers or service locations.
The processes described in the '214 and °179 patents
for applications that require connecting a caller to a
service location are similar to the process described in
the 131 patent.

Targus sells services that operate in conjunction
with telecommunications platforms to route 800 calls.
One service, IntelliRouting Express, uses the real-
time process described in Targus’s ‘868 patent to
identify the location of a caller and determine an
appropriate service location after the call is placed
and while the caller remains on the line. The service
provides the telephone number of the correct service

location to the platform, which then processes the

App. 12

call. Another ‘Targus service, Location Express,
merely identifies the latitude/longitude location of the
caller and provides it to the platform, which then
uses that information while the caller is on the line to
perform whatever calculations are necessary to
determine an appropriate service location.

Plaintiff Adept alleged that Targus’s IntelliRout-
ing Express and Location Express services literally
infringe all six independent claims of the Neville
patents and several dependent claims. Two key claim
construction issues before the trial court concerned
the “directly routing” (paragraph [ec] in illustrative
claim 29, above) and “assigning” (paragraph [c])
limitations in the Neville patents. The case was
initially assigned to District Judge Antoon, who
construed the term “directly routing” in the Neville
patents to mean “routing a telephone cal) to another
party without a human or computer re-dialing or
otherwise placing a second call.” 800 Adept, Inc. v.
Murex Secs., Lid., No. 6:02-CV-1354, slip op. at 38
(M.D. Fla. May 27, 2005).

Subsequently, the case was transferred to Chief
Judge Fawsett three months before trial. On Targus’s
motion, she construed the claim language in the
“assigning” limitation, language that is present in all
of the asserted claims of the Neville patents. First,
she construed the term “potential first parties” as

“individuals who can place a telephone call but have
not yet done so.” 800 Adept, Inc. v. Murex Secs., Ltd.,
No. 6:02-CV-1354, slip op. at 16 (M.D. Fla. Aug. 3,

2006). She then construed “assigning” as referring to

App. 13

“a designation made prior to the telephone call of the
first parties” (emphasis added). However, she de-
clined to find that there was a disclaimer of calcula-
tions made after the call is placed. Jd. at 19-22. She
further held that the claims are not limited to a
database containing a single look-up table. Jd. at 18-
19.

During trial, a critical issue in Adept’s infringe-
ment case against Targus was whether Targus’s “real-
time” process, which performs spatial calculations
during the call to determine an appropriate service
location, satisfies the “assigning” limitation in the
claims of the Neville patents. Adept’s counsel argued
that the court’s construction of the term “assigning”
should be modified so the jury would understand it to
cover “a stored procedure and algorithm in the data-
base that constitutes a, quote, assignment, closed
quote, but nevertheless makes that calculation while
the caller is on-line.” (Trial Tr. 254:7-10, Oct. 20,
2006). On the nineteenth day of trial, in response to
Adept’s argument, and over the objection of Targus’s
counsel, Chief Judge Fawsett added a sentence to the
claim construction. The final jury instruction regard-
ing this limitation read:

The term “assigning” as used in the
third element of the claims of the ’111 and
‘689 Patents refers to “a designation made
prior to the telephone call of the first parties.”
However, the °111 and 689 patents do not ex-
clude calculations made during the telephone
call.

App. 14

As we explain more fully below, the addition of the
“However ... ” sentence to the assigning limitation
changed the dynamic of the trial.

The jury ruled in Adept’s favor on all of its patent
infringement allegations against Targus, finding that
Targus infringed all six independent cleims and the
asserted dependent claims of the Neville patents and
that those claims were not invalid or unenforceable.
The jury also found that Targus’s infringement was
willful.” In addition, the jury found that Targus
tortiously interfered with the business relationships
between Adept and its customers and further found
that Targus acted in bad faith. The jury awarded
Adept $18 million in patent infringement damages
and $2 million in compensatory damages and $5
million in punitive damages on the tortious interfer-
ence claim.

Adept also prevailed at trial on all issues related
to Targus’s patents. The jury found that Adept did not
infringe any of the asserted claims of Targus’s pat-
ents. Regarding the validity of Targus’s patents, the
jury determined that all claims of the ’897 patent and
the °131 patent were invalid, even though Targus
asserted only claim 69 of the ’897 patent and claims 1
and 50 of the °131 patent. The jury also found that the

" The jury found that Targus’s customer West infringed the
asserted system and method claims but not the database claims
and further found that West's infringement was not willful.

App. 15

asserted claims of the other Moore-Shaffer patents
were invalid.’

Targus filed a renewed motion for judgment as a
matter of law and an alternative motion for a new
trial, both of which the trial court denied without
discussion. The trial court awarded Adept an addi-
tional $24 million in enhanced patent infringement
damages in accordance with 35 U.S.C. § 284, bringing
the total damages award to $49 million. The court
then entered final judgment and a permanent injunc-
tion. The trial court also determined that the case
was exceptional under 35 U.S.C. § 285 and that Adept
was entitled to attorney fees, but the court denied the
motion for attorney fees without prejudice to reasser-
tion after completion of the appellate process.

Targus appeals the judgment with respect to
infringement of Adept’s patents, the invalidity of
Targus’s patents, tortious interference, and willful-
ness. Targus also appeals the jury’s damages award,
the trial court’s award of enhanced damages, and the
trial court’s determination that Targus was entitled
to attorney fees. Finally, Targus challenges the per-
manent injunction as vague or overbroad. We have
jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).

‘ The asserted claims of the other Moore-Shaffer patents
were claim 19 of the '214 patent, claim 25 of the ’179 patent,
claim 46 of the 868 patent, claims 1 and 20 of the ’608 patent,
claims 4 and 13 of the 982 patent, claim 1 of the °397 patent,
and claim 10 of the ’810 patent.

App. 16

DISCUSSION
I. Adept Patents

Targus contends that the trial court erred in
failing to enter judgment as a matter of law that the
accused Targus services do not infringe the asserted
claims of the Neville patents. Targus focuses on the
two claim limitations previously noted — “assigning”
and “directly routing.” Regarding the assigning
limitation, Targus argues that the trial court erred in
modifying its claim construction in a way that al-
lowed Adept to argue at trial that the assignment
could be done during the call. Under the proper
construction of “assigning,” Targus maintains, its
services do not infringe the claims of the Neville
patents. Because we agree with Targus that under the
correct. claim construction no reasonable jury could
find that Targus’s services perform the “assigning”
step, we need not address Targus’s arguments with
respect to the “directly routing” limitation.

A. Claim Construction — the “Assigning” Limi-
tation

Targus argues that the claims in the Neville
patents require assignment of a _ service location
telephone number to the telephone number of each
potential caller before any call is placed. Adept does
not dispute that the assignment must occur before a
call is placed, but argues that the assigning limitation
can be satisfied by placing “in or with” a datahase

an algorithm or criteria for determining the correct

App. 17

service location, even though the calculations neces-
sary to implement the algorithm or apply the criteria
are performed during the telephone call. Targus
responds that any calculations needed to complete
the assignment of service location numbers to poten-
tial callers must occur before the call. The ultimate
question, then, is not when the assigning step must
occur, which the parties agree must be prior to any
telephone call, but rather what constitutes an as-
signment. To that end, Targus argues that the trial
court erred when it added to its original claim con-
struction the “However ... ” statement that the
patents “do not exclude calculations made during the
telephone call” because that allowed the jury to apply
Adept’s flawed interpretation.

Though in claim construction matters we give
due weight to a trial court’s claim construction,
ultimately claim construction is a matter of law the
final responsibility for which lies with us. Cybor Corp.
v. FAS Techs., Inc., 188 F.3d 1448, 1456 (Fed. Cir.
1998) (en banc). As usual, we start with the language
of the claims themselves. Phillips v. AWH Corp., 415
F.3d 1303, 13812 (Fed. Cir. 2005) (en banc). The rele-
vant language (see, e.g., claim 29 of the ’111 patent,
above) is: “assigning to the physical location of said
potential first parties a telephone number of a service
location of a second party that will receive calls. ...”

* The other independent claims either include identical
language or refer to the “originating telephone number” of said
(Continued on following page)

App. 18

"111 patent col. 15 11.33-35. Use of the word “poten-
tial” to describe the callers and use of the future tense
(“will receive calls”) for the recipient points directly to
the conclusion that the assigning step must occur
before a call is placed. The plain language of the
claims makes clear that the “assigning” step requires
that “a telephone number of a service location” be
assigned to each potential caller. Nothing in the
claims suggests that storing an algorithm that will be
used to determine the telephone number of the cor-
rect service location during a telephone call consti-
tutes an assignment of a service iocation telephone
number to a potential caller before a telephone call ts
placed.

The patents’ written description confirms this.
See Phillips, 415 F.3d at 1315-17. The Neville patents
disclose a method for routing 800 calls using routing
instructions contained in a database. According to the
written description, the database is constructed by
assigning the telephone number of an appropriate
service location to each potential caller. *111 patent
fig. 1, col. 11 11.42-54. The assignments are made by
applying customer-provided criteria, such as “exis-
tence within a previously-defined geographic area, a
custom defined geographic area, or through calcula-
tions such as the shortest distance between coordi-
nate points.” Jd. abstract. As summarized in the

potential first partics G.c., callers) rather than their “physical
location.”

App. 19

abstract, the patents make clear that assignment of
service location telephone numbers to _ potential
callers must be completed before a telephone call is
ever placed: “Once all such assignments have been
made, a datahase is assembled to be used by a long
distance carrier for direct routing of telephone calls.”
Id. (emphasis added).

The assigning step in the Neville patents results
in “direct routing instructions” that are submitted to
an LDC to be used for routing calls. Adept argues
that these routing instructions could include stored
procedures such as the distance calculations men-
tioned in the abstract. The written description, how-
ever, does not support Adept’s position. The “routing
instructions” are always described as a database
containing potential caller telephone numbers and
corresponding service location telephone numbers. Id.
col.4 11.10-12, col.12 11.48-51. To the extent that proce-
dures like distance calculations are implemented or
geographic criteria are applied, it is only to construct
a database containing assignments of service loca-
tions telephone numbers to potential callers, a step
that is completed prior to any call. Nowhere do the
patents characterize the routing instructions given to
an LDC as a stored procedure, algorithm, or criteria
to be used later during a call to determine an appro-
priate service location telephone number.

Statements made by the applicant during prose-
cution reinforce the conclusion that any calculations
necessary for assigning service location telephone

numbers to callers must be performed before any

App. 20

calls are placed. See Phillips, 415 F.3d at 1317 (“{Tlhe
prosecution history can often inform the meaning of
the claim language by demonstrating how the inven-
tor understood the invention.... ”). During prosecu-
tion of the original application that led to the Neville
patents, the examiner rejected most of the claims as
anticipated by a prior art patent to Finucane, et al.
(“Finucane”). In response, the applicant distinguished
Finucane on several grounds, one of which was that
Finucane “requires ... a computer [to] perform ‘point
of origin’ to ‘point of termination’ calculations while a
caller is on the line.” J.A. 8572. The applicant con-
trasted this feature with his system, which “performs
all such calculations prior to the call even being made

and, in fact, prior to delivery of the data base to the
Long Distance Carrier (LDC).” /d.

The examiner maintained his rejection during
prosecution of a continuation application. In remarks
accompanying an amendment in which he canceled
all independent claims and added new claims, the
applicant once again distinguished his invention from
Finucane:

The major difference {between the present
invention and Finucane] is that with the
present invention all point of origin to point
of termination calculations have already been
performed by determining in which response
zone (client-defined polygon) the call origi-
nated, and to which corresponding terminat-
ing number the call should be routed. The
results of these calculations are stored in a
database at the service provider’s location.

App. 21

Thus, the present invention eliminates the
need to perform online-calculations to deter-
mine the appropriate terminating number.

J A. 8626 (emphasis added). Thus Adept and Neville
repeatedly characterized the invention as one in
which all calculations necessary for assigning service
location telephone numbers to callers are performed
before any telephone calls are made.

Adept argues that it is improper to rely on these
statements from the prosecution history vecause they
are too ambiguous to serve as a “clear and unmistak-
able” disavowal of claim scope. See Omega Eng’g, Inc.
v. Raytek Corp., 334 F.3d 1314, 1325-26 (Fed. Cir.
2003). Adept points out that the issued claims are
quite different from those pending at the time the
statements were made. Because there is no link
between the applicant’s arguments and the specific
claim language at issue, Adept asserts, there can be
no disclaimer.

The doctrine of prosecution disclaimer to which
Adept refers is typically invoked to limit the meaning
of a claim term that would otherwise be read broadly.
See id. at 1324 (“|Wlhere the patentee has unequivo-
cally disavowed a certain meaning to obtain his
patent, the doctrine of prosecution disclaimer at-
taches and narrows the ordinary meaning of the claim

congruent with the scope of the surrender.” (emphasis
added)); see also Rheox, Inc. v. Entact, Inc., 276 F.3d
1319, 1325 (Fed. Cir. 2002) (construing the broad term
“calcium orthophosphate” to exclude monocalcium

App. 22

orthophosphate based on_ prosecution disclaimer
although excluded compound was within the ordinary
and accustomed meaning of the claim term); South-
wall Techs., Inc. v. Cardinal IG Co., 54 F.3d 1570,
1576-77 (Fed. Cir. 1995) (holding that “sputter-
deposited dielectric” could not be formed by a two-
step process because patentee argued during prosecu-
tion that it was formed by a one-step process). In this
case, however, we do not consult the prosecution
history for that purpose. We simply use it as support
for the construction already discerned from the claim
language and confirmed by the written description,
i.e., that all calculations necessary to assign a service
location telephone number to a potential caller are
completed before any call is placed. Although the
claims pending at the time of the quoted statements
did not include the “assigning” limitation, the appli-
cant was quite clear throughout prosecution that his
invention performed calculations for assigning service
location telephone numbers to callers prior to any call
being placed. As is true of the written description,
nothing in the prosecution history supports Adept’s
position that a stored algorithm constitutes an as-
signment of a service location to a caller.

Adept asserts that a claim construction requiring
all calculations to be performed prior to any tele-
phone calls cannot be correct because even its pre-
ferred embodiment performs some _ calculations
during the telephone call. Specifically, Adept claims
that when a call arrives, the Neville system must

perform “lookup” calculations to retrieve from the

App. 23

database the service location assigned to the caller.
Adept fails to recognize, however, that these lookup
calculations are not part of the assigning step in the
Neville patents — service location telephone numbers
are assigned to callers when the database is created,
i.e., before any calls take place. Under the correct
claim construction, only calculations that are neces-
sary to complete the assignment must be performed
before any calls are made. As long as that require-
ment is met, the claims do not preclude any addi-
tional calculations during the telephone call.

According to Adept, three dependent claims not
asserted in the case should compel a different claim
construction. In these claims — 28, 40, and 52 of the
"111 patent — the originating telephone number is
that of a “non-stationary telephone, such as a mobile,
cellular or transportable telephone.” Adept contends
that these mobile telephone claims require some sort
of spatial calculation at the time of the call to deter-
mine the correct service location based on the caller’s
physical location and therefore would be impossible to
practice under a claim construction such as the one
we adopt.

We are not persuaded. As discussed, the plain

language of the independent claims requires each

potential caller to be assigned a service location
telephone number hefore any call is placed. Since the
mobile telephone claims depend from the independent
claims, all potential mobile telephone callers must
also be assigned a service location before a call
is placed. Nothing in the language of the claims

App. 24

indicates otherwise. While the claims and the written
description appear to contemplate that the assign-
ment will be based on the caller’s physical location at
the time of the call, the written description does not
teach a method for doing so. Significantly, the patents
do not disclose the use of stored algorithms that could
be used to assign service location telephone numbers
duriny a call from either a mobile telephone or a ‘fixed
landline, and thus the written description does not
support Adept’s proposed construction.

Furthermore, it is not clear that the mobile
telephone claims would be impossible to practice
under the correct claim construction. Prior to any
calls, a service location could be assigned to a mobile
telephone based on, for example, a physical location
associated with its NPA-NXX. Be that as it may, we
need not resolve this question. Even if the mobile
telephone claims are rendered inoperative by a
proper claim construction, preserving the validity of
unasserted claims is an insufficient reason to ignore
the meaning of the claims actually asserted in the
case. See Intamin Ltd. v. Magnetar Techs. Corp., 488
F.3d 1328, 1307 (Fed. Cir. 2007).

In sum, based on consideration of the claims, the
written description, and the remainder of the intrin-
sic evidence, we conclude that the trial court was
correct in the first instance when it construed the
“assigning” language to refer to “a designation made
prior to the telephone call of the first parties.” We
must also recognize, however, what the assignment

entails — the telephone number of a service location is

App. 25

assigned to the physical location or telephone number
of each potential caller. As noted, this assignment
must be made before any calls are placed. Thus, to
the extent any calculations are needed to complete
the assignment of service location telephone numbers
to potential callers, they must be performed prior to
any calls.

The trial judge modified the original claim con-
struction by adding that the Neville patents “do not
exclude calculations made during the telephone call.”
That statement is imprecise in the context in which it
was presented, i.e., as part of the construction of the
term “assigning,” and allowed Adept to argue before
the jury that calculations for completing the assign-
ing step could be performed while a caller is on-line,
an argument that is not consistent with the patented
invention. Under the correct claim construction,
assignment of service location telephone numbers to
potential callers must occur prior to any calis, and
thus any calculations necessary for completing that
assignment must be performed before any telephone
calls are placed.

B. Infringement

With the trial court’s modified claim construction
before them, the ‘.ry found that defendant Targus
infringed the Neville patents, and the trial court
subsequently denied a motion by ‘Targus to grant,

contrary to the jury's verdict, judgment as a matter

of law in ‘largus’s favor. The question before us is

App. 26

whether the trial judge erred in denying the motion.
We review the trial court’s denial of Targus’s motion
for judgment as a matter of law under the law of the
regional circuit. 24 Techs., Inc. v. Microsoft Corp., 507
F.3d 1340, 1346 (Fed. Cir. 2007). Under Eleventh
Circuit law, we review the denial of a motion for
judgment as a matter of law without deference,
reapplying the same standard applied by the trial
court. Christopher v. Florida, 449 F.3d 1360, 1364
(llth Cir. 2006). Judgment as a matter of law is
appropriate when there is no legally sufficient evi-
dentiary basis for a reasonable jury to find in favor of
the nunmoving party. /d. When a patent infringement
verdict is based on an incorrect claim construction,
we reverse the trial court’s denial of a motion for
judgment as a matter of law if no reasonable jury
could have found infringement under the proper
claim construction. Finisar Corp. v. DirecTV Group,
Inc., 523 F.3d 1323, 1333 (Fed. Cir. 2008).

In the Targus system, the telephone numbers
and locations of potential callers are maintained in a
database. The system also includes a database for
each system customer containing the telephone
numbers of the customer's service locations along
with their corresponding service arcas. Those service
areas are configured by the customer before any calls
are placed and may be radius-based (a circle around
the service location) or defined by polygonal regions
around each service location. While the Targus sys

lem contains information relating to both potential

callers and customer service locations, it does not

App. 27

match a customer service location to a particular
caller prior to any calls taking place. Instead, as
described in the IntelliRouting Express User Guide,
callers are assigned to a service location “on the fly”
with each telephone call.

When a call comes into the platform, the Targus
system determines the caller’s approximate latitude
and longitude based on the caller’s ANI. The system
then computes a rectangular area, referred to as a
window key, around that latitude/longitude. Next the
system identifies a list of candidate service locations
whose service areas overlap the window key. For each
candidate, the system performs a detailed spatial
calculation, either a distance computation or “point-
in-polygon” calculation, to determine whether the
caller’s location is within the service area. This
results in a list of one or more service locations to
which the call may be routed.

Thus the accused Targus services do not assign
service location telephone numbers to _ potential
callers before calls are placed. Because all calcula-
tions necessary to complete the assignment are
performed in real-time while the caller is on the line,
the Targus services do not satisfy the “assigning”
limitations in the Neville claims. Under the correct
claim construction, no reasonable jury could find that
Targus infringes the asserted claims of Adept’s pat-
ents. Accordingly, we reverse the trial court’s denial of
Targus’s motion for judgment of non-infringement as
a matter of law. In light of that result, we vacate the
infringement damages award and the permanent

App. 28

injunction; we also vacate the trial court’s judgment
with respect to willfulness and attorney fees.

Il. Targus Patents
A. Unasserted Claims

The jury found that all claims of the ’897 patent
and °131 patent were invalid, and the trial court
entered judgment accordingly. Targus argues that the
trial court erred because only claim 69 of the ’897
patent and claims 1 and 50 of the °131 patent were
asserted and at issue. Adept responds that all claims
of the two patents were placed in issue by the de-
claratory judgment count in its complaint. If the
evidence at trial proved that all the claims were
invalid, Adept maintains, the tria! judge properly
entered judgment on the jury verdict.

We agree with Targus that the unasserted claims
were not at issue, and thus the trial court erred.
First, the scope of Adept’s complaint is less than clear.
Adept requested a declaratory judgment with respect
to the invalidity of Targus’s “asserted claims,” an
apparent reference to Targus’s assertions of infringc-
ment against Adept and its customers prior to the
filing of the lawsuit. (First Am. Compl. {{ 57-58.) The
complaint does not specify which claims fall into that
category. In any event, a reference in the complaint is
not sufficient to support a judgment that particular
claims are invalid; the specific validity of those claims
must have been at issue during the trial and actually

App. 29

litigated by the parties. Datascope Corp. v. SMEC,
Inc., 776 F.2d 320, 327 (Fed. Cir. 1985).

Second, the parties’ Joint Final Pretrial State-
ment demonstrates that ovly claim 69 of the °897
patent and claims 1 and 50 of the ’131 patent were at
issue during the trial. In that document, the parties
stipulated that the asserted claims of the ’897 patent
and 7131 patent were claim 69 and claims 1 and 50,
respectively. (Joint Final Pretrial Statement 31.)
Then, under the heading “Concise Statement of
Issues of Fact and Issues of Law Which Remain for
Determination by the Trial Court,” the parties in-
cluded the following two questions: “Are the asserted
claims of the Shaffer-Moore patents valid?” and “Are
the asserted Shaffer-Moore patents infringed, liter-
ally or under the doctrine of equivalents?” (/d. at 32-
22.) There were no references whatsoever to the
unasserted claims of the ’897 patent and 7131 patent.

Third, at trial, neither party presented evidence
with respect to the unasserted claims. Adept’s expert,
Dr. Brody, expressly limited his validity analysis and
opinions to claim 69 of the ’897 patent and claims 1
and 50 of the 131 patent. (Trial Tr. 148-49, 184-85,
198-200, 208-10, 213, Oct. 16, 2006.) This is true with
respect to both Adept’s anticipation and obviousness
contentions and its argument that the claims of the
"131 patent were invalid duce to an on-sale bar. Adepi’s
argument that 1t was unnecessary for its validity
expert to put forth a claim-by-claim analysis of the
unasserted claims is simply incorrect. Under the
patent statute, the validity of each claim must be

App. 30

considered separately. See 35 U.S.C. § 282 (“Each
claim of a patent (whether in independent, dependent,
or multiple dependent form) shall be presumed valid
independently of the validity of other claims.... ”);
Schumer v. Lab. Computer Sys., Inc., 308 F.3d 1304,
1316 (Fed. Cir. 2002); Sandt Tech., Ltd. v. Resco Metal
& Plastics Corp., 264 F.3d 1344, 1356 (Fed. Cir. 2001).

In this case, it is clear from the parties’ pretrial
statement and from the trial proceedings that the
unasserted claims were neither litigated nor placed in
issue during the trial. We therefore reverse the trial
court’s judgment of invalidity with respect to the
unasserted claims, i.e., all the claims of the °897
patent except claim 69 and all the claims of the °131
patent except claims 1 and 50.”

B. Asserted Claims

The jury also found all twelve of the asserted
claims in the Moore-Shaffer patents invalid. Targus
chose not to appeal the trial court’s denial of its
motion for judgment as a matter of law that the
asserted claims are not invalid, and thus dves not
challenge on appeal the sufficiency of the evidence in
support of the jury’s verdict. Instead, Targus appeals
only the trial court’s denial of its motion for a new

" In light of this conclusion, we need not address Targus’s
additional argument that the tnal court lacked jurisdiction to
adjudicate the validity of the unasserted claims because there
was no case or controversy with respect to those claims

App. 31

trial on the validity of these claims. Applying Elev-
enth Circuit law, we review the trial court’s denial of
a motion for a new trial for abuse of discretion. Hicks
v. Talboit Recovery Sys., Inc., 196 F.3d 1226, 1242
(llth Cir. 1999). When a jury verdict is judged to be
against the great weight of the evidence, the trial
judge has authority to grant a motion for a new trial.
Id.; Charles Alan Wright, Arthur R. Miller & Mary
Kay Kane, Federal Practice and Procedure § 2806 (2d
ed. 1995).

Targus argues on appeal that the jury’s invalidity
findings were “tainted” by the erroneous characteri-
zation of the Neville patents by Adept’s expert,
Dr. Brody. In particular, Targus complains that Dr.
Brody repeatedly asserted that the Neville patents
teach real-time spatial calculations of the sort used
by Targus and claimed in some of the Moore-Shaffer
patents. Because Dr. Brody testified that the asserted
claims were either anticipated by the Neville patents
or rendered obvious by the combination of the Neville
patents and other prior art, Targus believes it is
entitled to a new trial on the validity of the asserted
claims.

We agree with Targus, but only in part. Targus
requests on appeal a new trial on “whether the as-
serted claims of the Moore-Shaffer patents that
concern ‘on line calculations’ are invalid.” (Appellant’s
Reply Br. 22-23.) in its brief, Targus identifies only
two asserted claims that involve on-line or real-time
calculations — claim 46 of the 868 patent and claim
10 of the °810 patent. (Appellant’s Br. 49-50.) Our

App. 32

review of the record confirms that those are the only
asserted claims directed to Targus’s real-time system.
Our review further confirms that Dr. Brody’s testi-
mony with regard to the alleged real-time aspect of
the Neville patents was directed to the validity of
only those two claims and not to the other asserted
claims.

As explained above in the discussion on the
Adept patents, Dr. Brody’s characterization of the
scope of the Neville patent disclosure was mistaken.
Furthermore, the primary if not the entire evidence
on which the jury could have relied in finding claim
46 of the ’868 patent and claim 10 of the 810 patent
invalid was Dr. Brody’s erroneous testimony. Under
these circumstances, the trial judge should have
granted the motion for a new trial with regard to
these two claims because the great weight of the
evidence in the record was against the jury’s verdict.
This does not preclude the possibility that othr
evidence produced at a retrial would be sufficient to
establish invalidity.

The failure to have granted Targus’s motion was
an abuse of discretion; accordingly, we vacate the trial
court’s judgment that claim 46 of the ’868 patent and
claim 10 of the ’810 patent are invalid, and remand
for a new trial on their validity. We affirm the trial
courts judgment that the remaining asserted claims
of the Moore-Shaffer patents are invalid.

App. 33

WI. Tortious Interference

in its suit against Targus, Adept claimed that,
because Targus had asserted certain of its patent
claims against some of Adept’s customers, Targus had
tortiously interfered with Adept’s business relation-
ships with those customers. This, according to Adept,
entitled Adept to the state-law remedy available for
such an unfair trade practic. Targus responded that
the state-law remedy is preempted by the federal
patent laws. The “preemption” issue can be stated
thus: if a patentee attempts to enforce its patents
against a competitor’s customers, under what circum-
stances, if any, is the patentee protected from the
usual standards regarding unfair trade practices,
imposed by various state unfair competition laws, on
the theory that the rights accorded a patentee to
enforce the patent supersede the usual anti-
competition rules? See Zenith Elecs. Corp. v. Exzec,
Inc., 182 F.3d 1340, 1345-46 (Fed. Cir. 1999).

The answer to the question is now well-
established. State tort claims against a patent holder,
including tortious interference claims, based on
enforcing a patent in the marketplace, are “pre-
empted” by federal patent laws, unless the claimant
can show that the patent holder acted in “bad faith”
ir the publication or enforcement of its patent. Jd. at
1355; Hunter Douglas, Inc. v. Harmonic Design, Inc.,
153 F.3d 1318, 1336-37 (Fed. Cir. 1998). As the Su-
preme Court said long ago, “Patents would be of little
value if infringers of them could not be notified of the
consequences of infringement, or proceeded against in

App. 34

the courts. Such action, considered by itself, cannot
be said to be illegal.” Virtue v. Creamery Package Mfg.
Co., 227 U.S. 8, 37-38 (1913).

The issue in this case is whether Adent presented
to the jury sufficient facts, if believed, that a reason-
able jury could find for Adept on the issue of Targus’s
bad faith. This “bad faith” standard has objective and
subjective components. Dominant Semiconductors
Sdn. Bhd. v. Osram GmbH, 52% F.3d 1254, 1260 (Fed.
Cir. 2008). The objective component requires a show-
ing that the infringement allegations are “objectively
baseless.” Globetrotter Software, Inc. v. Elan Com-
puter Group, Inc., 362 F.3d 13867, 1875 (Fed. Cir.
2004). The subjective component relates to a showing
that the patentee in enforcing the patent demon-
strated subjective bad faith. See id. Absent a showing
that the infringement allegations are objectively
baseless, it is unnecessary to reach the question of
the patentee’s intent. See id.

Infringement allegations are objectively baseless
if “no reasonable litigant could realistically expect
success on the merits.” Prof’] Real Estate Investors,
Inc. v. Columbia Pictures Indus., Inc., 508 U.S. 49, 60
(1993); see also GP Indus., Inc. v. Eran Indus., Inc.,
500 F.3d 1369, 1374 (Fed. Cir. 2007); Globetrotter, 362
F.3d at 1375-76. To prove at trial that Targus’s ac-
tions were objectively baseless, Adept was required to
offer clear and convincing evidence that Targus had
no reasonable basis to believe that its patent claims
were valid or that they were infringed by Adept’s
customers. See Golan v. Pingel Enter., Inc., 310 F.3d

App. 35

1360, 1371 (Fed. Cir. 2002). Because of the value
placed on property rights, which issued patents
share, see 35 U.S.C. § 261 (“[Platents shall have the
attributes of personal property.”); Consol. Fruit-Jar
Co. v. Wright, 94 U.S. 92, 96 (1876) (“A patent for an
invention is as much property as a patent for iand.”);
Kearns v. Gen. Motors Corp., 94 F.3d 1553, 1555 (Fed.
Cir. 1996) (“By statutory and common law, each
patent establishes an independent and _ distinct
property right.”), and in Jight of the underlying
jurisprudential basis for the bad faith standard,
rooted as it is in Supreme Court cases and Constitu-
tional principles, see Globetrotter, 362 F.3d at 1375-
77, a party attempting to prove had faith on the part
of a patentee enforcing its patent rights has a heavy
burden to carry.

The jury verdict was that Adept had proved its
case. Targus appeals the trial court’s denial of its
motion for judgment as a matter of law, arguing that
there was no clear and convincing evidence on which
a reasonable jury could conclude its actions were
objectively baseless. On the record before us, for the
reasons we shall exp!/ain, we believe Targus ts correct
that Adept has not successfully carried its burden.

We first address the question of whether Targus
could have had a reasonable belief that its patents
were valid, beginning with the ’897 patent. The main
dispute regarding the validity of the ’897 patent was
whether Neville discloses a two-table embodiment,
which would anticipate the claims of the ’897 patent.
While the preferred embodiment in Neville uses a

App. 36

single-table TNTTN database, one sentence in the
written description states that “the correlational
database may be relational or hierarchical,” which
implies that the database could have more than one
table. ’111 patent col.9 I1.50-51. The issue before us is
not the validity vel non of the ’897 patent, but
whether the evidence was such that Targus could not
have had a reasonable basis for believing that the
patent was valid when it asserted the patent against
Adept’s customers.

Adept alleges that Targus knew the disclosure in
the Neville patents anticipated the claims of the ’897
patent, and that Targus misrepresented the scope of
Neville to the PTO so that the ’897 patent claims
would survive the reexamination requested by Adept
in 1999. Adept’s argument sounds more like an alle-
gation of subjective bad faith on ‘Targus’s part, a
question that is not at issue absent the predicate
showing that the claims asserted by Targus were
objectively baseless. Furthermore, none of the evi-
dence cited in Adept’s brief supports its theory that
Targus acted deceptively. The evidence introduced at
trial shows that many people, including the examiner
who conducted the recxamination and even Adept’s
own patent attorney, understood Neville to disclose
only a one-table system. Notably, Targus did not file
suit against any of Adept’s customers until after
reexamination of the 897 patent had been completed.
On this record, a reasonable jury could not have
found by clear and convincing evidence that Targus

App. 37

lacked a reasonable basis to believe that the claims of
the 897 patent were not anticipated by Neville.

Adept also asserts that Targus knew that Neville
anticipated Targus’s one-table claims — claim 1 of the
608 patent and claim 4 of the '982 patent. Targus
argues that it reasonably believed Neville did not
disclose the automated table-build process required
by the Targus claims. This was a reasonable view, as
evidenced by the opinion of ‘largus’s expert at trial
that Neville does not teach a fully automated system.
The contrasting opinion of Adept’s expert does not
render Targus’s position unreasonable. As with the
’°897 patent, we conclude that no reasonable jury
could have found that Adept met its burden to show
that there was no reasonable basis on which Targus
could believe in the validity of its one-table claims.

Regarding the °131 patent, Adept argues that
Targus knew it was subject to an on-sale bar based on
work that Targus did for Federal Express, and that
Targus actively concealed that information from the
PTO. The record indicates, however, that Targus
reasonably believed that that work was experimental,
even if ultimately the jury in this case may have
found otherwise. Furthermore, during prosecution of
the application that led to the °131 patent, Targus
submitted a declaration to the PTO detailing the
development and testing of the FedEx system. Under
these circumstances, no reasonable jury could find
that Adept proved by clear and convincing evidence
that Targus lacked a reasonable basis for believing

App. 38

that the claims of the ’131 patent were not subject to
the on-sale bar.

With respect to Targus’s other patents, Adept
alleges that the examiner was led astray so that he
failed to consider Neville in combination with Riskin
or other references, even though Neville and Riskin
and multiple other references were before him. Yet
Adept cites no evidence demonstrating that Targus
knew its claims were invalid for obviousness or
showing that Targus somehow caused the examiner
not to combine prior art references. On this record, no
reasonable jury could have found that a belief by
Targus that its patents were valid had no reasonable
basis.

We must also consider whether there was a basis
for Targus to reasonably believe that Adept’s custom-
ers infringed the Targus patents. Adept essentially
argues that Targus could not have had a reasonable
basis for asserting its patents against Adept’s cus-
tomers because ‘Targus did not succeed at trial on its
infringement claims against Adept. Courts, however,
“must ‘resist the temptation to engage in pest hoc
reasoning by concluding’ that an ultimately unsuc-
cessful ‘action must have been unreasonable or with-
out foundation.’” Prof’] Real Estate, 508 U.S. at 60

n.5 (quoting Christiansburg Garment Co. v. EROC,

434 U.S. 412, 421-22 (1978)): see also Dominant, 524
F.3d at 1261 & n.6 (citing Prof’/ Real Estate, 508 U.S.
at 60 n.5). Thus the result of Targus’s infringement
claims in this case is not dispositive of whether

App. 39

Targus’s claims against Adept’s customers were
reasonable.

Targus presented evidence that it reasonably
believed Adept’s customers were infringing the Tar-
gus patents. For instance, Adept admitted that the
database it provided to two of its customers was in
the same format as the database used in the Targus
system. Also, Targus did not assert its claims against
another Adept customer until after Targus’s in-house
counsel had prepared claim charts explaining Tar-
gus’s infringement theories. Adept has not cited any
contradictory evidence that was introduced at trial.
On this record, no reasonable jury could find by
clear and convincing evidence that Targus had no
reasonable basis for believing that Adept’s customers
were infringing its patents.

Adept’s tortious interference claim with respect
to its customer Allstate Motor Club (“AMC”) was
based on Targus’s infringement claim against its own
customer, Vail Systems. In providing routing services
to AMC, Vail used data received from AMC, which
included a database that Allstate had received from
Adept. After learning about this arrangement
through discovery in this case, Targus believed that
Vail infringed its patents and filed claims against
Vail, which subsequently sought indemnification from
AMC. While Adept alleges that Targus and Vail
colluded to pressure AMC, Adept fails to cite evidence
showing that Targus’s belief that Vail infrinyed its
patents was unreasonable. As with Targus’s in

fringement allegations against Adept’s customers, no

App. 40

reasonable jury could find that Adept met its burden
to show that Targus lacked a reasonable basis for
believing that Vail infringed its patents.

In sum, we conclude that there is not clear and
convincing evidence on which a reasonable jury could
find that Targus acted in bad faith by asserting
objectively baseless patent infringement allegations.
Thus Adept’s state-law tortious interference claim is
preempted by federal patent law. The trial judge
erred in denying Targus’s motion for judgment as a
matter of law on this claim, and we therefore reverse
the trial court’s judgment.

CONCLUSION

We reverse the trial court’s judgment of in-
fringement of the Neville patents. Accordingly, we
vacate the infringement damages award and the
permanent injunction; we also vacate the trial court’s
judgment with respect to willfulness and attorney
fees.

We reverse the trial court’s judgment of invalid-
ity with respect to the unasserted claims of the '897
patent and ‘131 patent. We vacate the trial court’s
judgment that claim 46 of the '868 patent and claim
10 of the °810 patent are invalid and remand for a
new trial on the validity of those claims. We affirm
the invalidity judgment with respect to the remaining
patent claims asserted by Targus against Adept.

App. 41

We reverse the trial court’s judgment on Adept’s
tortious interference claim and vacate the accompa-
nying award of compensatory and punitive damages.

AFFIRMED-IN-PART, REVERSED-IN-PART, VA-
CATED-IN-PART; and REMANDED

DYK, Circuit Judge, concurs in the result.

App. 42

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION

800 ADEPT, INC.,
Plaintiff,
-VS-

MUREX SECURITIES, LTD.,
MUREX LICENSING CORPO-
RATION, TARGUS INFORMA-
TION CORPORATION,

and WEST CORPORATION,

Defendants.

MUREX SECURITIES, LTD..,

MUREX LICENSING CORPO-

RATION, TARGUS INFORMA-

TION CORPORATION, Pee

and WEST CORPORATION, ee ees

6:02-cv-1354-

Counter-Plaintiffs Orl-28DAB

-VS-

800 Adept, Inc.,

Counter-Defendant.

MUREX SECURITIES, LTD..,
and MUREX LICENSING
CORPORATION,

Third-Party Plaintiffs,

-VS-
Adeptel, Inc.,

Third-Party Defendant.

App. 43

ORDER
(Filed Aug. 3, 2006)
This case comes before the Court on the following:

1. Markman Motion of Targus Information

Corporation, Murex Securities, Ltd., Murex Licensing

Corporation, and West Corporation (collectively
“Defendants”) (Doc. No. 240, filed May 19, 2006);

2. Opposition To Defendant’s Markman Motion
of Plaintiff 800 Adept, Inc. (Doc. No. 268, filed June
19, 2006);

3. Combined Motion And Memorandum To
Strike 800 Adept’s Markman Opposition As Untimely
Or, Alternatively, For Leave To Reply of Defendants
(Doc. No. 291, filed July 3, 2006); and

4. Opposition To Combined Motion To Strike
Markman Opposition And Motion For Leave To Reply
of Plaintiff 800 Adept, Inc. (Doc. No. 303, filed July
17, 2006).

In this patent infringement lawsuit, Targus
Information Corporation, Murex Securities, Ltd.,
Murex Licensing Corporation, and West Corporation
(collectively “Defendants”) ask the Court to interpret
several terms from the claims of U.S. Patent Num-
bers RE36,111 (“the ’111 Reissue”) and 5,805,689 (“the
689 Patent”) and one term from the claims of the

App. 44

Shaffer-Moore Patents that are identified in the
margin. (Doc. No. 240).

First, Defendants move the Court to Strike the
Opposition of Plaintiff 800 Adept, Inc. (hereinafter,
“800 Adept”) because 800 Adept did not file a Mark-
man Motion seeking to construe the claims of the ’111
Reissue and ’689 Patent and because 800 Adept
raised new arguments in its Opposition regarding the
proper construction of Defendant’s disputed claim
terms. (Doc. No. 291). Defendant’s Motion to Strike
and the issued raised therein are without merit, as an
opposition to a motion is expressly allowed by the
Court’s Amended Case Management and Scheduling
Order. (Doc. No. 182, Part II.E, p. 5). Moreover, a
reply is not necessary for the arguments raised by
800 Adept in its Opposition.

Secondly, Plaintiff’s argument that this motion is
barred by the law of the case doctrine is not well-
founded. (See Doc. No. 268, p. 15). The law of the case
doctrine applies to only those issues discussed and
decided by previous decisions and those issues de-
cided in such decisions by necessary implication. Toro

The Shaffer-Moore Patents, as identified in the Declara-
tion of Michael M. Barry, are U.S. Patent Numbers 5,506,897
(“the ’897 Patent”), 5,848,131 (“the '131 Patent”), 5,901,214 (“the
‘214 Patent”), 5,907,608 (“the 608 Patent”), 5,910,982 (“the 982
Patent”), 5,956,397 (“the °397 Patent”), 5,982,868 (“the °868
Patent”), 6,058,179 (“the "'79 Patent”), and 6,091,810 (“the °810
Patent”). (See Doc. No. 24), Ex. FF; Doc. No. 31, pp. 12-13). The
claims of the ‘868 Patent do not recite the disputed claim term.

App. 45

Co. v. White Consol. Indus., Inc., 383 F.3d 1326, 1335
(Fed. Cir. 2004). Defendants now seek a _ judicial
determination of the meaning of a claim term, “as-
signing,” which is a separate and distinct claim term
from the one that was previously construed, “directly
routing.” The Court must “must give each claim term
the respect that it is due,” Pause Tech., LLC v. TiVo,
Inc., 419 F.3d 1326, 1334 (Fed. Cir. 2005), or, in other
words, the Court should endeavor to give meaning to
al] the terms of a claim. Merck & Co. v. Teva Pharms.

USA, Inc., 395 F.3d 1364, 1872 (Fed. Cir. 2005).

Moreover, the issues raised in Defendants’ mo-
tion were not necessarily decided by implication in
the District Court’s previous Markman Order. In that
Order, the Court addressed whether the claim term

“direct routing” prohibited caller input. (Doc. No. 178,
p. 38). Further, the Court’s determination that the
preambles of claim 41 of the ’111 Reissue and claim 1
of the 689 Patent did not contain a “direct routing”
limitation did not decide, either expressly or impli-

edly, whether those claims assigned callers prior to
the placement of a telephone call.

In addition, the Magistrate Judge and previous
District Court Judge declined to address the litigants’
arguments concerning the “assigning” limitation and
instead considered the merits of the “direct routing”
limitation. (See Doc. No. 252, p. 19; Doc. No. 178, p.
34). Where previous decisions decline to consider an
issue, the law of the case doctrine does not operate to
bar the future consideration of such issue. Laitram
Corp. v. NEC Corp., 115 F.3d 947, 952-53 (Fed. Cir.

App. 46

1997) (applying the precedent of the Court of Appeals
for the Eleventh Circuit).

‘The Court now turns to the task of construing
the claims.

Claim Construction

Patent claims are construed by the Court as a
matter of law. Cybor Corp. v. FAS Techs., Inc., 138
F.3d 1448, 1454-56 (Fed. Cir. 1998) (en banc). “(T]he
words of a claim ‘are generally given their ordinary
and customary meaning.” Phillips v. AWH Corp., 415
F.3d 1303, 1312 (Fed. Cir. 2005) (en banc) (quoting
Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576,
1582 (Fed. Cir. 1996)). Such ordinary meaning “is the
meaning that the term would have to a person of
ordinary skill in the art in question at the time of the
invention.” Jd. at 1313.

To determine the ordinary meaning of a term, the
court should review “the same resources as would”
the person of ordinary skill in the art. Multiform
Dessicants, Inc. v. Medzam, Ltd., 133 F.3d 1473, 1477
(Fed. Cir. 1998). Those resources include “the words
of the claims themselves, the remainder of the speci-
fication, the prosecution history, and extrinsic evi-

dence concerning relevant scientific principles, the
meaning of technical terms, and the state of the art.”
Innova/Pure Water, Inc. v. Safart Water Filtration
Sys., Inc., 381 F.3d 1111, 1116 (Fed. Cir. 2004).

App. 47

“(TJhe claims themselves provide substantial
guidance as to the meaning of particular claim
terms.” Phillips, 415 F.3d at 1314. Both “the context
in which a term is used in the asserted claim” and the
“folther claims of the patent in question” are useful
for understanding the ordinary meaning. /d.

“(T]he specification ‘is always highly relevant to
the claim construction analysis. Usually, it is disposi-
tive; it is the single best guide to the meaning of a
disputed term.” Jd. at 1315 (quoting Vitronics, 90
F.3d at 1582). In short, the claims “must be read in
view of the specification, of which they are a part.”
Markman v. Westview Instruments, Inc., 52 F.3d 967,
979 (Fed. Cir. 1995) (en banc). Thus, “[t]he construc-
tion that stays true to the claim language and most
naturally aligns with the patent’s description of the
invention will be, in the end, the correct construc-
tion.” Renishaw PLC v. Marposs Socteta’ per Aziont,
158 F.3d 1243, 1250 (Fed. Cir. 1998): see also On
Demand Mach. Corp. v. Ingram Indus., Inc., 442 F.3d
1331, 1344 (Fed. Cir. 2006) (“[E]ach term must be
construed to implement the invention described in
the specification”).

Occasionally, “the specification may reveal a
special definition given to a claim term ... that
differs from the meaning it would otherwise possess.
In such cases, the inventor’s lexicography governs.”
Phillips, 415 F.3d at 1316 (citing CCS Fitness, Inc. v.
Brunswick Corp., 288 F.3d 1359, 1366 (Fed. Cir.

2002)). The specification may also “reveal an inten-

tional disclaimer, or disavowal, of claim scope by the

App. 48

inventor ...[{, which] is regarded as dispositive.” /d.
(citing SciMed Life Sys., Inc. v. Advanced Cardiovas-
cular Sys., Inc., 242 F.3d 1337, 1343-44 (Fed. Cir.
2001)).

In addition to consulting the specification, courts
“should also consider the patent’s prosecution history,
if it is in evidence.” /d. at 1317 (internal quotation

marks and citation omitted). Because the prosecution

history represents negotiation between the United
States Patent and Trademark Office (the “Patent
Office”) and the applicant, “it often lacks the clarity of
the specification and thus is less useful for claim
construction purposes.” /d. Nevertheless, the prosecu-
tion history can be helpful “by demonstrating how the
inventor understood the invention and whether the
inventor limited the invention in the course of prose-
cution.” Id.

The court may also rely on extrinsic evidence,
which is “all evidence external to the patent and
prosecution history, including expert and inventor
testimony, dictionaries, and learned treatises.”
Markman, 52 F.3d at 980. Although extrinsic evi-
dence can be useful, it is “less significant than the
intrinsic record in determining ‘the legally operative
meanin s of claim language.”’ Phillips, 415 F.3d at
1317 (quoting C.R. Bard, Inc. v. U.S. Surgical Corp.,
388 F.3d 858, 862 (Fed. Cir. 2004)). Technical diction-
aries and treatises can inform the Court’s under-
standing of the underlying technology and _ the
manner in which one skilled in the art might use
claim terms, but technical dictionaries and treatises

App. 49

may provide definitions that are too broad or may not
be indicative of how the term is used in the patent.
Id. at 1318. Similarly, expert testimony can aid a
court in understanding the underlying technology
and determining the particular meaning of a term in
the pertinent field, but an expert’s conclusory, unsup-
ported assertions as to a term’s definition is not
unhelpful. /d. Generally, extrinsic evidence is “less
reliable than the patent and its prosecution history in
determining how to read claim terms.” /d.

During claim construction, “[t]lhe sequence of
steps used by the judge in consulting various sources
is not important; what matters is for the court to
attach the appropriate weight to be assigned to those
sources in light of the statutes and policies that
inform patent law.” PAillips, 415 F.3d at 1324.

In addition, the ’111 Reissue and the ’689 Patent
contain means-plus-function limitations that require
construction. Such limitations are subject to Title 35
U.S.C. § 112, 7 6. Braun Med., Inc. v. Abbott Labs.,
124 F.3d 1419, 1424 (Fed. Cir. 1997). In relevant part,
Section 112, 4 6 mandates that “such a claim limita-
tion ‘be construed to cover the corresponding struc-
ture ... described in the specification and equivalents
thereof.” Jd. Accordingly, when faced with means-
plus-function limitations, courts “must turn to the
written description of the patent to find the structure
that corresponds to the means recited in the [limita-
tions].” Id.

App. 50

Construing a means-plus-function limitation
involves multiple steps. “The first step in construing
[a means-plus-function] limitation is a determination
of the function of the means-plus-function limitation.”
Medtronic, Inc. v. Advanced Cardiovascular Sys., Inc.,
248 F.3d 1303, 1311 (Fed. Cir. 2001). Once the Court
has determined the limitation’s function, “the next
step is to determine the corresponding structure
disclosed in the specification and _ equivalents
thereof.” Jd. A “structure disclosed in the specification
is ‘corresponding’ structure only if the specification or
prosecution history clearly links or associates that
structure to the function recited in the claim.” /d.
Moreover, the focus of the “corresponding structure”
inquiry is not merely whether a structure is capable
of performing the recited function, but rather
whether the corresponding structure is “clearly linked
or associated with the |recited]| function.” /d.

The ’111 Reissue and ’689 Patent Claims

Defendants contend that each of theses patents
contains claims having the following limitation:

assigning to... said potential first parties a
telephone number of a service location of a
second party.
ioc. No. 240, p. 1). Defendants aver that this limita-
tion of the ’111 Reissue and the ’689 Patent “re-
quire[s}] that all potential first parties be assigned to

a telephone number of a service location of a second

party by defining the boundaries of various service

App. 51

location trade areas.” (Jd. at 4, quotations and modifi-
cations omitted). Consequently, Defendants conclude
that the claims require that each and every potential

caller be assigned to a service location before any call
is made, and therefore any system that uses calcula-
tions to select a service location after a call is made is
excluded from the claimed invention. (Jd. at 5). 800
Adept argues in response that Defendants improperly
construe the claims without reference to the specific
claim language. (Doc. No. 268, p. 2).

The Court first identifies the language of each
claim the parties wish to construe. The ‘111 Reissue
contains five independent claims that contain similar
assigning claim limitations or method steps. Claims
1, 9, 17, 29 and 41, as amended by the reissue patent,
are set forth below.

1. A system for direct routing a telephone
call from a first party who has an originating
telephone number at a specific location de-
fined by latitude and longitude coordinates
who dials a telephone number including dig-
its uniquely characteristic to a second party
having a plurality of service locations, said
system comprising:

means for allocating individual latitude
and longitude coordinates to each
originating telephone number of all
potential first parties;

means for defining the boundaries of one
or more geographical areas which can
be of any size and shape according to

App. 52
predetermined criteria, each point
along said boundaries being defined
by latitude and longitude coordi-
nates;

means for assigning to each originating
telephone number of said potential
first parties a telephone number of a
service location of a second party
that will receive calls originating
from within the boundary of a geo-
graphic area defined by said means
for defining in which the individual
latitude and longttude coordinates of
the specific location of each of said
potential first parties lie;

means for determining the originating
telephone number of the first party
from which said telephone call is to
be routed; and

direct routing means for direct routing
said telephone call to a service loca-
tion of the second party assigned to
said originating telephone number
of the first party by said means for
assigning.

9. A method for direct routing a telephone
call from a first party who has an originating
telephone number at a specific location de-
fined by latitude and longitude coordinates
who dials a telephone number including dig-
its uniquely characteristic to a second party
having a plurality of service locations, said
method comprising the steps of:

App. 53

allocating individual latitude and longi-
tude coordinates to each originating
telephone number of all potential
first parties;

defining the boundaries of one or more
geographical areas which can be of
any size and shape according to pre-
determined criteria, each point
along said boundaries being defined
by latitude and longitude coordi-
nates;

assigning to each originating telephone
number of said potential first parties
[a telephone number] of a service | /
location of a second party that [will’]
receive calls originating from within
the boundary of a geographic area
defined in said step of defining in
which the individual latitude and
longitude coordinates of the specific

Claim 9 of the 7111 Reissue contains three printing errors.
The claim recites the word “parties” in between “service loca-
tion” and omits the terms “a telephone number” and “will.” The
published claim differs from the claim language recited in the
claims allowed by the Patent Office and submitted by the
applicant. (See Doc. No. 240, Ex. C, p. 235). The record does not
contain any evidence that a certificate of correction has issued
for this patent. The Court finds that these are clear clerical
errors due to oversight that are not subject to reasonable debate
and construes the claim as if it were properly published. Noro
Indus., L.P. v. Micro Molds Corp., 350 F.3d 1348, 1354 (Fed. Cir.
2003) (quoting 1.7:S. Rubber Co. v. Essex Rubber Co., 272 U.S.
429 (1926)). The claim language in this Order incorporates the

changes of the Reissue.

ys

App. 54

location of each of said potential first
parties lie;

determining the originating telephone
number of the first party from which
said telephone call is to be routed;
and

directly routing said telephone call to a
service location of the second party
assigned to said originating tele-
phone number of the first party by
said step of assigning.

A system for direct routing a telephone

call from a first party who has an originating
telephone number at a physical location and
who dials a telephone number including dig
its uniquely characteristic to a second party
having a plurality of service locations, said
system comprising:

means for allocating latitude and longi-
tude coordinates to the physical lo-
cation of all potential first parties;

means for defining the boundaries of one
or more geographical areas which
can be of any size and shape accord-
ing to predetermined criteria, each
point along said boundaries heing
defined by latitude and longitude
coordinates;

means for assigning to the physical loca-
tion of said potential first parties a
telephone number of a service loca-

tion of a_ second party that will

App. 55

receive calls originating from within
the boundary of a geographic area in
which the latitude and longitude co-
ordinates of the physical location of
each of said potential first parties
lie;

means for determining the originating
telephone number of the first party
from which said telephone call is to
be routed; and

direct routing means for directly routing
said telephone call to a service loca-
tion of the second party assigned to
said originating telephone number
of the first party by said means for
assigning.

29. Amethod for direct routing a telephone
call from a first party who has an originating
telephone number at a physical location and
who dials a telephone number including dig-
its uniquely characteristic to a second party
having a plurality of service locations, said
method comprising the steps of:

allocating latitude and longitude coordi-
nates to the physical location of all

potential first parties;

defining the boundaries of one or more
geographical areas which can be of
any size and shape according to
predetermined criteria, each point
along said boundaries being defined

App. 56

by latitude and longitude coordi-
nates;

assigning to the physical location of said
potential first parties a_ telephone
number of a service location of a sec-
ond party that will receive calls
originating from within the bound-
ary of a geographic area in which
the latitude and longitude coordti-
nates of the physical location of each
of said potential first parties lie;

determining the originating telephone
number of the first party from which
said telephone call is to be routed;
and

directly routing said telephone call to a
service location of the second party
assigned to said originating tele-
phone number of the first party by
said step of assigning.

41. A method of constructing a database
wherein said database is used by a telephone
service provider for direct routing a tele-
phone call from a first party who has an
originating telephone number at a physical
location and who dials one of an 800-type,
900-type or other special access code tele-
ohone number assigned to a second party,
who has determined specific locations to re-
ceive calls originating from within pre-
determined geographic areas, thereby allow-
ing the first party to reach one of a plurality
of locations of the second party hased on

App. 57

geographic location from which the telephone
call originate from within one of a plurality
of geographic areas, said method comprising
the steps of:

(a) assigning individual latitude and
longitude coordinates to the physical
location of all potential first parties;

defining the boundaries of one or
more geographic areas which can be
of any size and shape according to
predetermined criteria each point
along said boundaries being defined
by latitude and longitude coordi-
nates; and

assigning to the physical location of
said potential first parties a tele-
phone number of a service location of
a second party that will receive calls
originating from within the bound-
ary of a_ geographic territory in
which the latitude and longitude co-
ordinates of the physical location of
each of said potential first parties
lies.

(111 Reissue, col. 13, ll. 2-30; col 13. 1. 51 to col. 14, 1.
11; col. 14., Il. 32-57; col. 15, ll. 19-44; col. 16, Il. 7-34,
emphasis added). The 689 Patent issued with a
single independent claim. Claim 1 recites:

1. In a telephone system, a method of con-
structing a database wherein said database
is used by a telephone service provider ‘or di-
rect routing a telephone call from a first

App. 58

party who dials one of an 800-type, 900-type
or other special access code telephone num-
ber assigned to a second party, who has de-
termined specific locations to receive calls
originating from within pre-determined geo-
graphic areas, thereby allowing the first
party to reach one of a plurality of locations
of the second party based on geographic loca-
tion of the first party from within one of a
plurality of geographic areas, said method
comprising the steps of:

a. assigning individual latitude and
longitude coordinates to each tele-
phone number of all potential! first
parties;

b. defining the boundaries of one or
more geographic areas which can be
of any size and shape according to
pre-determined criteria;

c. assigning to the telephone number of
each potential first party a telephone
number of a specific location of the
second party that will receive calls
originating from within a_e geo-
graphic area of each first party;

d. determining in which geographic
area a potential call might originate
for each potentiai first party in the
area encompassed by all geographic
areas; and

e. assigning the specific location of the
second party to all potential first

App. 59

parties within the boundaries of
each geographic area.

(689 Patent, col. 12, 1. 64 to col. 13, l. 238, emphasis
added). The Court addresses the construction of
claims 1 and 17 of the ’111 Reissue separately below
because each of these claims recites the assigning
limitation in mean-plus-function format.

Both parties treat the underlined assigning steps
in claims 9, 17, 29, and 41 of the ’111 Reissue and
claim 1 of the ’689 Patent as substantially the same;
the Court does not. Further, Defendants’ truncation of
the assigning step improperly omits claim terms. In

each claim, the object of the gerund “assigning” is not
“to ... said first parties” but “to each originating
telephone number of said potential first parties” or

“to the physical location of said potential first parties”

or “to the telephone number of each potential first

party.” Because the Court must “must give each claim
term the respect that it is due,” it would be inappro-
priate to ignore the underlined terms. Pause Tech.,
LLC, 419 F.3d at 1334.

Nevertheless, the claims are substantially simi-
lar in that they each call for an assignment, and each
claim recites “potential first parties” or “potential
first party.” This Order addresses the latter claim
limitations first. Then, the Court will construe the
meaning of the “assigning” limitation.

App. 60

“Potential First Parties”

Defendants argue that the term “first parties”
should be understood as referring to a caller or a
person who is making a telephone call. (Doc. No. 240,
p. 4). Defendants also assert that the term “poten-
tial,” which allegedly modifies the term “first parties”
in every claim, means the “first parties” are not
actual callers, i.e., a person who has made or is
making a call, but rather a person who may make a
telephone call. (/d.). 800 Adept contends that “poten-
tial first parties” should be construed as “those par-
ties who can be assigned latitude and longitude
coordinates and can also be assigned to a destination
according to the second parties’ criteria.” (Doc. No.
268, p. 9).

Each of the independent claims of these two
patents provides the context in which to construe
“first parties.” The preambles of claims 1, 9, 17, 29
and 41 of the ’111 Reissue all recite “a telephone call
from a first party who has an originating telephone
number,” and the preamble of claim 1 of the ’689
Patent recites “a telephone call from a first party who

dials one of an 800-type, 900-type or other special

access code telephone number.” This is not to say that
the preambles act as a limitation of the claims, but
such language places the claim term in a context that
is absent from the rest of the claim. Thus, the claimed
“first parties” are colloquially “callers” or “individuals
who place telephone calls.”

App. 61

It is also clear from the specification that the
term “first parties” must refer to callers. The written
description describes “a system for automatic direct
routing of telephone calls from customers” (111
Reissue, col. 1, ll. 19-20) designed to reduce the
amount of computer interaction by “causing the call
to be direct-routed” (id. at col. 2, |. 7). It also states
that a prior art patent “requires that the caller dial
from a ‘touch-tone’ phone.” Ud. at col 2, ll. 19-20).
Under the heading “Summary of the Invention,” the
patent discloses that the “primary object of the pre-
sent invention is to provide a reliable and cost-
effective manner of directly connecting callers inter-
ested in an advertiser’s product... .” Ud. at col. 3, Il.
10-12). The abstracts and specifications repeatedly
and consistently refer to “calls” and “callers” but fail
even once to use the term “first parties” except in the

claims. (See id. passim). Put simply, the terms call
and caller are used throughout both patent specifica-

tions, and “first parties” is not. (See id. at face page).

Defendants offer two definitions for “potential”
from internet dictionaries which do not differ sub-
stantively from the definition found in the bound
dictionaries available to the Court. (See Doc. No. 240,
p. 4 n.6). Defendants’ definitions are “existing in
possibility” and “capable of development into actual-
ity.” (See id.). Plaintiffs do not offer any dictionary
definition for the term. Webster's II] New Riverside
University Dictionary defines potential as “1. Capable
of being but not yet in existence. 2. Denoting possibil-
ity, capability, or power.” WEBSTER’S Il NEW RIVERSIDE

App. 62

UNIVERSITY DICTIONARY 920 (1994). The Court of
Appeals for the Federal Circuit permits the use of
general purpose dictionarics in cases that involve
commonly understood words having widely accepted
meanings. Phillins, 415 F.3d at 1314. Such is the case
here.

The ordinary meaning of “potential” is also
consistent with the use of the term in the specifica-
tion. The term “potential” is found only within the
abstract and claims of each patent. The abstracts are
identical:

A method and system for direct routing of
telephone calls made by a caller originating
from within specific calling areas to one of a
plurality of locations of a second party ac-
cording to certain criteria established by the
second party. This routing is accomplished
based on the assignment of latitude and lon-
gituide coordinates to a potential caller’s loca-
tion. Once these coordinates are assigned to
each of the potential callers, the second
party's criteria is applied to assign the poten-
tial caller to a second party. Such criteria
could be existence within a _ previously-
defined geographic area, a custom defined
geographic area, or through calculations
such as the shortest distance between coor-
dinate points. Once all such assignments
have been made, a database is assembled to
be used by a long distance carrier for direct
routing of telephone calls from callers to an
assigned second party.

App. 63

(Id. at face page, emphasis added). Such disclosure
does not add much of substance other than indicating
the term is used as one would expect, and that the
written description of the patents does not “reveal a
special definition ... that differs from the meaning
[that the term] would otherwise possess.” Phillips,
415 F.3d at 1316.

Here, the adjective, “potential,” modifies the
meaning of the noun “parties” which has already been
modified by the adjective “first.” That is, the meaning
of “potential first parties” is a specialized meaning of
the broader term “first parties.” As discussed above,
the term “first parties” refers to a universe of callers
or individuals who place telephone calls, and the
adjective “potential” narrows that universe of indi-
viduals to those having the capability of placing a
telephone call but who have not done so. Conse-
quently, the Court construes the term “potential first
parties” to mean “individuals who can place a tele-
phone call but have not yet done so.”

“Assigning”

Defendants contend that the term “assigning”
means to specify, select, or designate or to “fix in
correspondence or relationship.” (Doc. No. 240, p. 4
n.8). Defendants argue that the patent abstracts and

figures demonstrate further that such assignment

must be accomplished before a caller places a tele-

phone call and that such assignment must be stored
in a single look-up table. (/d. at 5-8). Defendants also

App. 64

identify portions of the prosecution history that
allegedly show a disclaimer of spacial calculations
made after a caller has placed a call and a disclaimer
of database structures other than a single look-up
table. Ud. at 8-15). In addition, Defendants contend
that the Examiner’s statements concerning the scope
of the disclosure of the ’111 Reissue in an unrelated
reexamination proceeding supports the conclusion
that the claims of the ’111 Reissue are limited to
single look-up tables. (/d. at 16). The state of the art
at the time of the filing of the patent applications,
argue Defendants, also supports the limitation of
“assigning” to that of a single look-up table. (/d. at 16-
18). Lastly, Defendants assert that because Plaintiff
omitted any reference to spacial calculations made
during a call in an interrogatory response, such
omission is evidence of a disclaimer of such calcula-
tions. (Ud. at 18-19).

800 Adept contends that the abstract, figures and
other parts of the patents’ specifications do not limit
the claimed inventions to a single look-up table. (Doc.
No. 268, pp. 3-5, 6-8). On the contrary, argues Plain-

tiff, the specifications specifically recite multiple
embodiments, including relational or hierarchical
database structures. (/d. at 4). 800 Adept also criti-
cizes Defendants’ reliance on statements made in an
unreiated reexamination proceeding by the Examiner
concerning the scope of the disclosure of the ‘111
Reissue. Ud. at 5-6).

App. 65

Returning to the languages of the claims, Plain-
tiff asserts that the plain meaning of the term “as-
sign” is not limited to any one methodology. (/d. at 8).

800 Adept avers that every database query is the
equivalent of a mathematic calculation, and therefore
the database embodiments disclosed in the specifica-
tions do require “calculations” to be made after a
telephone call is placed by a caller. dd. at 10-11).
Moreover, Plaintiff argues that there is no way in
which to perform the “assign” limitation to a caller

using a mobile telephone prior to the actual telephone
call. Ud. at 11-13). Lastly, Plaintiff argues that the
passages from the prosecution history identified by
Defendants do not address the “assigning” limitation
of the claims and, in any event, do not disclaim
calculations made during a telephone call. (/d. at 14).”

Based on the above, it is apparent that there are
two general disagreements over the construction of
this claim term. First, the parties debate whether the
claims of the ’111 Reissue and ’689 Patent are limited
to a single look-up table, or in other words whether
the applicants disclaimed all embodiments except for
a database containing a single table. Secondly, the

Plaintiff also presents an argument which relies on a
portion of the Magistrate’s Markman Order which was not
adopted by the Court. (See Doc. No. 178, p. 39). Such reliance is
misplaced. In addition, Plaintiff improperly attempts to incorpo-
rate by reference arguments presented in other documents. (See
Doc. No. 268, p. 16). This practice is prohibited by Local Rule
3.01(b) which limits a response to a document to not more than
twenty (20) pages.

App. 66

parties dispute whether the assigning limitation
disclaims calculations made during the telephone

call.

As to the first issue, the Plaintiff plainly has the
better argument. The claims, specification and prose-
cution history of the ‘111 Reissue and ‘689 Patent do
not limit the term “assigning” to a single, static look-
up table. The claims do not recite the term table; they
recite the term database. The specification teaches
that the database contains fields which can be used
as natural keys and that the database structure may
be relational or hierarchal. (111 Reissue, col. 9, ll. 48-
51). Thus, the specification plainly teaches database
structures as alternatives to a single table database.
Moreover, it is well settled that “the scope of the
claims is not limited to particular embodiments
depicted in the figures.” Lighting World, Inc. v. Birch-
wood Lighting, Inc., 382 F.3d 1354, 1365 (Fed. Cir.
2004). Therefore, without more, Defendants’ argu-
ments concerning Figure 1 from the patents is with-
out merit.

Moreover, the passages selected from the patents’
prosecution history do not clearly and unambiguously
disclaim alternative database structures. See Soren-
sen v. Int'l Trade Comm’n, 427 F.3d 1375, 1378-79
(Fed. Cir. 2005) (“Disclaimers based on disavowing
actions or statements during prosecution ... must be
both clear and unmistakable.”). In each passage
quoted from the prosecution history, applicants speak

of a “database,” not a table or a single look-up table.
(See Doc. No. 240, pp. LO-11, 13).

App. 67

Lastly, the Court finds no reason to limit the
claims to a single look-up table from the statements
of the Patent Office Examiner. First, “it is the appli-
cant, not the examiner, who must give up or disclaim
subject matter that would otherwise fall within the
scope of the claims.” Sorensen, 427 F.3d at 1379
(quoting Jnnova/Pure Water, Inc., 381 F.3d at 1124).
Secondly, the Examiner’s statements in the ‘111
Reissue do not refer to a look-up table but rather to
the database of the claimed invention. It is of no
moment that the Examiner refers to the embodiment
depicted in Figure 1. That argument has no more
force in this context than when the Court construes
the claims. See Lighting World, Inc., 382 F.3d at 1365
(“[TJhe scope of the claims is not limited to particular
embodiments depicted in the figures.”). Further,
although the Examiner characterizes the ’111 Reissue
in an unrelated reexamination proceeding as imple-
menting “a telephone number to telephone number
lookup in a single table, or database,” it is clear from
the context of the statement that the Examiner was
discussing the patent’s disclosure, i.e., what the ‘111
Reissue teaches and not the scope of the claimed
invention. (See Doc. No. 240, p. 16 n.33 & 7.34).
“Specifications teach. Claims claim.” SRI/ Intl v.
Matsushita Elec. Corp. of Am., 775 F.2d 1107, 1121
n.14 (Fed. Cir. 1985).

The parties also dispute whether the assigning
limitation disclaims calculations made during the

telephone call, and both parties delve into the prose

cution history and state of the art to support their

App. 68

positions. The Court addresses this dispute in two
parts. First, the Court must determine when the
“assigning” step occurs. Then, the Court determines
whether there is a disclaimer of the scope of the
claims.

The answer to the first question starts with the
language of the claims. The claims of the ’111 Reissue
recite “assigning to leach originating telephone
number‘ or the physical location’) of said potential
first parties a telephone number of a service location
of a second party that will receive calls originating
from within the boundary of a geographic area.”
Similarly, claim 1 of the 689 Patent recites “assigning
to the telephone number of each potential first party
a telephone number of a specific location of the sec-
ond party that will receive calls originating from

within a geographic area of each first party.”

“Assigning” is a commonly used and widely
understood word. See Phillips, 415 F.3d at 1314. It
means “to set aside for a particular purpose” or
“designate.” WEBSTER’S Il NEW RIVERSIDE UNIVERSITY
DICTIONARY 131 (1994). It is clear upon review of the
specification that the patent uses the term in a man:

ner consistent with its ordinary meaning without

' This is the languave used in claim | and claim 9 of the

111 Reissue

This language is used in claim 17, claim 29, and claim 4]

of the ‘111 Reissue

App. 69

providing a more specialized meaning. See Philips,
415 F.3d at 1366.

As discussed above, the term “potential first
parties” refers to individuals who can place a tele-
phone call but have not done so. The use of the term
“potential first parties” strongly suggests that the
assignment occurs prior to the caller placing a tele-

phone call. In addition, each and every one of the

claims uses the future tense, i.e., “the second party
that will receive calls.” The use of the future tense in
the claims also suggests that the event described by
the verb, 1.e., the call, has not happencd yet.

A review of the specification also supports the
conclusion that the assignment occurs prior to the
placement of the telephone call. The °111 Reissue
teaches that once a telephone call has been placed by
an individual, a local exchange carrier contacts a long
distance carrier (“LDC”) for routing instructions. (7111
Reissue, col. 4, 1. 60 to col. 5, 1. 20). The LDC retrieves
the routing instructions from its own network control
point (“NCP”) and passes those instructions back to
the local exchange carrier. (/Jd.). The specification
teaches that the NCP contains “all of the direct
routing instructions for the WATS number.” (/d.; see
also id., col. 5, ll. 24-51: id., col. 5, ll. 45-53; rd., col. 8,
ll. 14-22; id., col. 8, ll. 39-48; id., col. 8, 1. 64 to col. 9, 1.
6; id., col. 9, ll. 23-32).

The specification also teaches the steps required
to prepare the NPC for its role in this system. The
written description discloses that “/a/fter defining the

App. 70

trade areas, assigning the corresponding NPA-NXX
(or NPA-NXX-XXXX) combinations and submitting
the appropriate direct routing information to the
chosen LDC, the system (network) is activated.” (/d.,
col. 12, ll. 38-41, emphasis added). In other words, the
LDC does not receive the routing instructions that
are stored in the NCP until after the assignment step
is complete.

The abstract also supports this claim construc-
tion. It discloses:

Once these coordinates are assigned to each
of the potential callers, the second party’s cri-
teria is applied to assign the potential caller
to a second party.... Once all such assign-
ments have been made, a database is assem-

bled to be used by a long distance carrier for
direct routing of telephone calls from callers
to an assigned second party.

Ud. at face page, emphasis added).

Consequently, the language of the claims when
read in light of the specification refers to “a designa-
tion made prior to the telephone call of the first
parties.”

The Court also considers whether the applicant
disclaimed calculations made after the telephone call.
Nothing in the above analysis indicates that the appli-
cant must have disclaimed further calculations. Indeed,
the specification contemplates further processing

App. 71

where the call is placed from a mobile telephone.” (/d.,
col. 6, 1. 59 to col. 7, 1. 2).

Additionally, the prosecution history does not

expressly and unambiguously disclaim all calcula-
tions made after a telephone call is placed. In distin-
guishing a prior art reference, the applicant stated:

A second major distinction between Finu-
cane, et al. patent and Applicant’s system is
that Finucane, et al. requires that a com-
puter verform “point of origin” to “point of
termination” calculations while the caller is
on the line. ...

On the other hand, Applicant’s Direct Rout-
ing Telephone System performs all such cal-
culations prior to the call even being made
and, in fact, prior to the delivery of the data
base [sic] to the Long Distance Carrier
(LDC).

(Doc. No. 240, Ex. C, pp. 123). Similar statements are
quoted by Defendants on pages 9 to 13 of docket
number 240. These statements are, at best, ambigu-
ous. They might refer to the timing of the “assigning”
step or they might refer to the disclaimer of post
telephone call calculations. The Court finds the
former is the better view in light of the disclosure
of the specification as a whole. In any event, such

' Plaintiff’s argument concerning the “cell phone embodi-
ments” supports only the proposition that further calculations
were contemplated once the technology was available.

ambiguity prevents the applicant’s statements in the

prosecution history from serving as a disclaimer of
claim scope.

Means-Plus-Function Limitations

Neither party offers the Court an argument
concerning the means-plus-function limitations
recited in claim 1 and claim 17 of the ’111 Reissue. In
order to construe these claims, the Court must iden-
tify the function of the limitation and then determine
the corresponding structure disclosed in the specifica-
tion. Medtronic, Inc., 248 F.3d at 1311. In addition,
the Court must identify whether the corresponding
structure is clearly linked or associated with the
recited function. /d.

The Court grants leave to each party to submit
one five (5) page memorandum on this issue. The
memorandum shall (1) identify the function, (2)
identify the corresponding structure disclosed in the
specification, and (3) identify whether the correspond-
ing structure is clearly linked or associated with the
recited function.

The Shaffer-Moore Patents

The parties also dispute the meaning of the term
“spatial key” which appears in the claims of nearly all
of the Shaffer-Moore Patents. Defendants’ proposed
definition is “a single number that identifies a small,
specific geographically defined area, line, or point

App. 73

that is defined by a set or sets of coordinates.” (Doc.
No. 240, pp. 19-20). In support of this definition,
Defendants point to the use of the term in the specifi-

cation of the patents and to the construction given to
this term by the United States District Court for the
Eastern District of Virginia. (/d. ).

800 Adept argues that “spacial key” should be
construed as that term was defined in the Shaffer-
Moore Patents. (Doc. No. 268, pp. 17-20). Plaintiff
contends that it would be inappropriate to insert
“small” in the definition of this term because (1) the
specification does not limit spacial keys to “small”
geographic areas but merely calls these “preferred” or
“unique,” (2) “small” adds nothing to the definition
because it is a relative term, and (3) the ruling of the
District Court of the Eastern District of Virginia is
not binding on this Court. (/d.).

Although the Court recognizes that a uniform
treatment of claim construction is desirable, the claim
construction of another district court in no way binds
this Court under the instant circumstances. The
parties provide only a single Order of the Court,
without its reasoning, discussion of the arguments of
the parties, or reference to the underlying facts. The
claim construction of the Virginia District Court was
not appealed to the Federal Circuit. Defendants do
not provide any authority that would afford that
Order preclusive effect. Defendants do not argue that
issue preclusion, collateral estoppel, or judicial estop-
pel are applicable. Simply put, this Court “will render

its own independent claim construction.” See Maurice

App. 74

Mitchell Innovations, L.P. v. Intel Corp., 2006 WL
1751779, *4 (E.D. Tex. 2006).

The Court construes “spacial key” as that term is
taught in the specification of the ‘897 Patent. It is
defined there as:

The spacial key is a single number that iden-
tifies a specific geographically defined area,
line, or point that is defined by a set of coor-
dinates.

(‘897 Patent, col. 9, ll. 39-42). The specification dis-
closes that the spacial key can be “a coded version of
the coordinate description of” “simple geographies
like points and rectangles.” (/d., col. 9, Il. 43-45).
Further, the specification teaches:

The postal zip+4 code is the preferred spacial
key used to link the master table to the cli-
ent table, but there are other small geo-
eraphic areas capable of having unique
spacial keys, such as zip+6 code areas, cen-
sus blocks, or very small latitude/longitude
grids, tiles, windows, or quad-trees.

(Id., col. 9, \l. 46-50). Except ior this single reference,
the figures, tables, and disclosure of the specification
only disclose the use of a zip+4 code as a spacial key.
(See id., col. 11, 1. 45 to col. 12, 1. 12; id., col. 12, ll. 40-
50; id., col. 13, ll. 8-30; id., col. 17, ll. 29-33; id., col.
21, ll. 38-40; id., col. 24, ll. 13-16; td., col. 24, ll. 30-
34).

The specification also characterizes the operation
of prior routing systems and their problems. Prior art

systems, the applicants note, “are very coarse in their
level of precision and cannot handle small service
areas with legally defined franchise territories like
pizza delivery.” Ud., col. 3, ll. 35-37). Another problem
with prior art routing systems “is that they divide the
United States into many large arbitrarily defined
areas and there is no ability to route a call to the
closest service location if the closest location is not
located in the same artificially created area as the
caller.” Ud., col. 3, ll. 48-52). Moreover, the specifica-
tion teaches that the desired system should “not use
artificially created areas such as telephone wire
centers, teiephone prefixes, or 5-digit zip codes where
calls can only be routed within their area.” (/d., col. 3,
ll. 56-59). The specification also characterizes U.S.
Postal Service zip+4 codes as “small geographic
areas” and the first six digits of the Automatic Num-
ber Identification system as designating a “fairly
large” area. (Ud., col. 4, ll. 53-56; id., col. 4, Il. 64-67).

Accordingly, two strands wind through the disclo-
sure of the Shaffer-Moore Patents. On the one hand,
the Shaffer-Moore Patents teach that a spacial key is
a single number that identifies a specific geographic
area. The size of the geographic area is omitted; it is
the specificity or “uniqueness” of the area that is
important. On the other hand, the specification also
systematically discloses the advantages of choosing
“small” geographic areas to use a spacial keys. In
particular, the use of telephone exchange numbers
and five-digit zip codes is disparaged while the use of

zip+4 and similarly-sized or smaller geographic areas

App. 76

1s touted. Nevertheless, there is no explicit or mani-
fest disclaimer in the specification requiring that
spacial keys must be small, specific geographically-
defined areas.

The Federal Circuit instructs courts that “the
claims of the patent will not be read restrictively
unless the patentee has demonstrated a clear inten-
tion to limit the claim scope using words or expres-
sions of manifest exclusion or restriction.” Liebel-
Flarsheim Co. v. Medrad, Inc., 358 F.3d 898, 907-08
(Fed. Cir. 2004) (quotation omitted). Last year, the
Federal Circuit followed this maxim in Gillette Co. v.
Energizer Holdings, Inc., 405 F.3d 1367, 1374 (Fed.
Cir. 2005).

In that case, the patent-in-suit claimed a wet-
shave safety razor with multiple blades. /d. at 1369.
‘safety razor com-

Specifically, the patent claimed a
prising ...a group of first, second, and third blades,”
but the defendant manufactured a four-blade safety
razor. Jd. After reviewing the patent specification, the
District Court limited the scope of the claim to a razor

having solely three-blades. Jd. On appeal, the Federal

Circuit reversed this claim construction. /d. at 1374.

After discussing the use of open language in,the
claim, the Court focused on the patent’s wzcitten
description. Jd. at 1373. The specification, noted the
Court, first characterized the scope of the invention
broadly when it taught that the invention relates to
safety razors having blade units with a plurality of
blades. Jd. The Court then emphasized that although

App. 77

the specification makes numerous references to a
preferred embodiment with three blades, such “nar-
rower embodiment does not impose a limit on the
broader claim language as elucidated by the reference
to ‘the invention’ as embracing a ‘plurality of blades.’”
Id. at 1374. Additionally, despite the numerous cites
to three-bladed razors plucked from the written
description, the Court noted that “no statement in the

?

patent surrenders or excludes a four-bladed razor.’

Id.

The written description of the Shaffer-Moore
Patents is similar to the written description at issue
in Gillette. In each case, the written description
broadly defines a claim term but nonetheless provides
a disclosure of examples of limited scope. As in Gil-
lette, this Court will construe the term broadly be-
cause there is no explicit or manifest disclaimer of
claim scope in the Shaffer-Moore Patents.

Accordingly, the Court construes “spacial key” to
mean “a single number that identifies a specific
geographically defined area, line, or point that is
defined by a set of coordinates.”

Conclusion

Based on the foregoing, the Court GRANTS
Defendants’ Markman Motion (Doc. No. 240) and
rules as follows:

App. 78

As recited in the ’111 Reissue and the ’689
Patent, the term “potential first parties” re-
fers to “individuals who can place a tele-
phone call but have not yet done so”;

As recited in the ’111 Reissue and the 689
Patent, the term “assigning” refers to “a des-
ignation made prior to the telephone call of
the first parties”;

>

As recited in the Shaffer-Moore Patents, the
term “spacial key” refers to “a single number
that identifies a specific geographically de-
fined area, linc, or point that is defined by a
set of coordinates”; and

The parties shall within five (5) days of the
date of this Order file with the Court a
memorandum addressing the means-plus-
function claims of the “lll Reissue. The
memorandum of each party shall be no more
than five (5) pages in length and _ shall
(1) identify the function, (2) identify the
corresponding structure disclosed in the
specification, and (3) identify whether the
corresponding structure is clearly linked or
associated with the recited function. The op-
posing party may then file a memorandum in
opposition within ten (10) days of the date of
this Order. A memorandum in opposition
shall also be no more than five (5) pages in
length.

App. 719

DONE and ORDERED in Chambers in Orlando,
Florida on August 3, 2006.

/s/ Patricia C, Fawsett
PATRICIA C. FAWSETT,
CHIEF JUDGE
UNITED STATES
DISTRICT COURT

Copies furnished to:

Counsel of Record

App. 80

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
ORLANDO DIVISION

800 ADEPT, INC., and
ADEPTEL, INC.,

Plaintiffs/Counter-
Defendants,

“a Case No.
MUREX SECURITIES, LTD., 6:02-cv-1354-
MUREX LICENSING CORPO. Orl-28DAB
RATION, TARGUS INFORMA-

TION CORPORATION, and

WEST CORPORATION,

Defendants/Counter-
Plaintiffs.

ORDER
(Filed Apr. 12, 2007)

This case comes before the Court for ruling on
the following:

1. Motion (And Memorandum) For Entry of Final
Judgment, An Award Of Prejudgment Interest
And A Permanent Injunction (Doc. No. 430, filed
November 8, 2006);

Motion And Memorandum To Award Plaintiff’s
Attorneys’ Fees (Doc. No. 431, filed November 9,
2006);

Defendants’ Combined Response To Plaintiff's
Motions For Entry Of Final Judgment, An Award

App. 81

Of Prejudgment Interest, A Permanent Injunc-
tion, And Attorneys’ Fees (Doc. No. 442, filed No-
vember 29, 2006);

Plaintiff’s Motion And Memorandum ‘To Strike
Improper Submissions Contained in Docket No.
442 (Doc. No. 448, filed December 12, 2006); and

Defendants’ Opposition To Plaintiff's Motion And
Memorandum To Strike Improper Submissions
Contained In Docket No. 442 (Filed At Docket
448) (Doc. No. 452, filed December 26, 2006).

I. Background of the Case

After a twenty-four day trial, a jury found that
Defendants, Murex Securities, Ltd., Murex Licensing
Corporation, and ‘TARGUS Information Corporation
(“the Murex-Targus Parties”), willfully infringed
claims from twe United States patents owned by
Plaintiff 800 Adept, Inc. (“800 Adept”). More specifi-
cally, the jury found that the Murex-Targus Parties
willfully infringed claims 1-19, 22-27, 29, 31, 34-39,
41, 43, and 46-51 of U.S. Patent No. RE36,111 (“the
111 Reissue”) and claims 1 and 3-5 of U.S. Patent No.
5,805,689 (“the ’689 Patent”). (Doc. No. 425, pp. 1-4).
The jury found that such claims of the °111 Reissue
and the ’689 Patent were not invalid, and the Court

determined later that the subject patents were not
unenforceable. (Jd. at 2-3; Doc. No. 470, filed April 2,
2007). For such infringement, the jury determined

that the Murex-Targus Parties’ should pay
$18,000,000.00 in damages to 800 Adept. (/d. at 3).
The jury also found that Defendant West Corporation

App. 82

(“West”) infringed claims 1-19, 22-27, 29, 31, 34-39,
41. 43, and 46-51 of the ’111 Reissue.’ (/d. at 2). The
jury found that West did not willfully infringe such
claims and that it should pay 800 Adept $48,000.00 in
damages. (See Doc. No. 425, pp. 3-4).

800 Adept now asks this Court to (1) award
prejudgment interest on its claims, (2) enjoin the

Murex-Targus Parties’ from engaging in further acts

of infringement, (3) award enhanced damages against
the Murex-Targus Parties, and (4) an award of attor-
neys’ fees under Title 35 U.S.C. § 285. (Doc. Nos. 430,
431). In addition to the above remedies, 800 Adept
also requests that the Court enter final judgment in
this case.

II. Prejudgment Interest

800 Adept’s request for prejudgment interest
actually concerns two separate issues and two sepa-
rate bodies of law, although neither 800 Adept nor the
Targus-Murex Parties and West bring this to the
Court’s attention. The Court considers first 800
Adept’s request for prejudgment interest on its suc-
cessful state law tort claims and then whether to
award prejudgment interest for 800 Adept’s patent

infringement claims.

The jury was charged with instructions detailing both
direct and indirect infringement

800 Adept docs not seck to cnjoin the actions of West

App. 83

A. Prejudgment Interest For Florida Tort
Claims

Florida courts consider prejudgment interest an
element of pecuniary damages under the “loss the-
ory.” Argonaut Ins. Co. v. May Plumbing Co., 474 So.
2d 212, 215 (Fla. 1985); see also Gilchrist Timber Co.
v. ITT Rayonier, Inc., 472 F.3d 1329, 1331 (11th Cir.
2006). There are two prerequisites to the award of
prejudgment interest as damages: (1) an out-of-pocket
pecuniary loss and (2) a fixed date of loss. Underhill
Fancy Veal, Inc. v. Padot, 677 So. 2d 1378, 1380 (Fla.
Dist. Ct. App. 1996). Prejudgment interest is gener-
ally not awarded, however, for tort damages because
such damages are generally too speculative to liqui-
date before final judgment. Lumbermens Mut. Casu-
alty Co. v. Percefull, 653 So. 2d 389 (Fla. 1995); see

also Nat'l R.R. Passenger Corp. v. Roundtree Trasp. &
Rigging, Inc., 286 F.3d 1233, 1259 (11th Cir. 2002).
This rule is not absolute, however, and prejudgment

interest may be awarded for tort damages where
there has been an ascertainable, out-of-pocket loss
occurring at a specific time prior to the entry of the
judgment. See Underhill Fancy Veal, Inc., 677 So. 2d
at 1380: see also Alvarado v. Rice, 614 So. 2d 498 (Fla.
1993). Prejudgment interest also can be awarded in
tort cases where there is a loss of vested property
right, such as claims involving the negligent destruc
tion of a building, the wrongful withholding of sales
commissions, or a subcontractor’s mechanic’s lien. See
Alvarado, 614 So, 2d at 499.

App. 84

In the instant case, 800 Adept has not shown
that it has suffered an ascertainable, out-of-pocket

loss related to its state tort claims at a time prior to

the entry of judgment or that it suffered the loss of a
vested property right. 800 Adept’s theory of liability
on its state law claims revolved around Defendants’
actions toward five different third parties whom, at
one time, had business relationships with 800 Adept.
Ms. Denise Dauphin, the financial expert for 800
Adept on the subject of damages, opined at trial that
800 Adept had lost over $3.4 million in revenues from
the Murex-Targus Parties’ tortious interference with
these five customers. (October 20, 2006 Testimony of
Denise Dauphin, hereinafter “Dauphin Test.”). Of this
amount, Ms. Dauphin testified that lost profits repre-
sented approximately $2,239,973.00 or, when dis-
counted, $1,863,999.00. (7d. ).

The jury, however, determined that 800 Adept
should be awarded $2,000,000.00 for the Murex-
Targus Parties’ tortious interference, an amount that
is greater than Ms. Dauphin’s discounted lost value
calculations but Jess than her lost revenue and her
non-discounted lost profits calculation. It is unclear
from the verdict whether the jury did not adopt the
rate at which Ms. Dauphin discounted 800 Adept’s
lost profits; whether the jury did not adopt the rate at
which Ms. Dauphin calculated lost profits from 800
Adept’s lost revenue; or whether the jury based its
finding of tortious interference on less than all of the
business relationships asserted by 800 Adept. Criti-
cally, because the Court cannot determine from the

App. 85

general verdict which relationship(s) was the basis
for the jury’s finding of damages, it also cannot ascer-
tain a date upon which 800 Adept’s liability may
spring. See, e.g., Perdue Farms Inc. v. Hook, 777 So.
2d 1047, 1054-55 (Fla. Dist. Ct. App. 2001) (finding
that it was impossible to determine any date upon
which the plaintiff was injured in a claim for unjust
enrichment where the jury could have chosen one of a
number of dates but did not). The Court, therefore,
determines that 800 Adept is not entitled to prejudg-
ment interest on its state law claim of tortious inter-
ference.

B. Prejudgment Interest For Patent In-
fringement Claims

Title 35 U.S.C. § 284 provides that, upon finding

a claim of patent infringement, courts “shall award

the claimant damages adequate to compensate for the
infringement, ... together with interest and costs as
fixed by the court.” This provision, according to the
U.S. Supreme Court, compels courts to ordinarily
award prejudgment interest so that the patent holder
would be in as good a position as it would have been
had the infringer entered into a reasonable royalty
agreement. See Gen. Motors Corp. v. Devex Corp., 461
U.S. 648 (1983). Thus, the Co

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386017_0017%3A2. Public record. Not legal advice.
