Improper NDA Defeats Trade Secrets and Overly Broad Patent Claims are Invalid
| July 29, 2013
Convolve v. Compaq Computer
July 1, 2013
Panel: Rader, Dyk and O’Malley. Opinion by O’Malley
Summary
Convolve, Inc. (“Convolve”) and Massachusetts Institute of Technology (“MIT”) appeal the decision of the U.S. District Court for the Southern District of New York (“District Court”) granting summary judgment in favor of Compaq Computer Corp. (“Compaq”), Seagate Technology LLC. and Seagate Technology, Inc. (“Seagate”).
Convolve and MIT sued Compaq and Seagate in July 2000 for breach of contract; misappropriation of trade secrets listed in Amended Trade Secret Identification (ATSI); direct patent infringement; and inducement of patent infringement along with other complaints such as fraud; violation of California Business and Professions Code §17200 (“CA Unfair Competition”), etc.
In May 2006, the District Court disposed of all other charges from the suit except the breach of contract, misappropriation of trade secrets and patent infringement charges. The District Court later granted summary judgment in favor of Compaq and Seagate and dismissed the remaining charges. With regard to the trade secret charges, the District Court found that:
(1) some of Convolve’s trade secrets (ATSI 1B, 2A, 2C, 2E, and 3B-D) were covered under a Non-Disclosure Agreement (NDA), which Convolve failed to properly preserve according to the NDA procedures;
(2) some of Convolve’s trade secrets (ATSI 2A, 6B, and 7A) were public known or common knowledge in the industry, which were not entitled to protection;
(3) some of Convolve’s trade secrets were never used by the defendants (ATSI 2F and 7E); and
(4) because New York law does not extend trade secret protection to marketing concepts, some of the trade secrets alleged by Convolve are not recognized by the District Court.
With regard to the patent infringement charges, the District Court found that:
(1) out of the four models of products alleged by Convolve as infringing Patent’473, none read on the claims of the patent;
(2) Patent’635 was found invalid for being non-enabling based on the inventor’s testimony; and
(3) since no direct infringement was found, the claim for inducement of patent infringement must fail.
Taking all inference in favor of Convolve, the CAFC affirmed all counts of summary judgment with regard to the trade secret allegations, as well as the invalidity of Patent’635, but reversed the non-infringement decision about Patent’473.
Convolve （原告）与Compaq， Seagate（康柏电脑和希捷数码，被告）就原告开发的一些硬盘技术进行技术合作谈判，双方就谈判涉及内容签订了保密协议。但原告在向被告透露相关技术时没有严格按保密协定约定的程序处理涉密内容。后来改谈判未能达成一致，原告诉被告在谈判涉及的保密内容上侵犯商业机密及在另一些技术问题上专利侵权。一审结果，联邦区域法院裁定原告败诉。
上述法院均认定，尽管侵犯商业机密属于一个侵权法的范畴，然而在已签订合同中原被告双方均已同意以合同条款规定商业机密的范畴，故侵权法默认的商业机密标准不适用。因原告在履行保密协议过程中未遵循商定的处理程序，原告在此案中已丧失对该商业机密的索赔权。
另外， 关于专利侵权案，原告的专利在当年提出申请时对该发明的描述超过了发明人的当时可以实施实际该发明的范畴，故该专利被认定未能适当描述其实施方法因而无效。上述法院部分维持一审法院的判决。
Tags: enablement > NDA > non-disclosure agreement > trade secret
Unexpected result for combination therapy using two known drugs
| July 24, 2013
Novo Nordisk A/S v. Caraco Phamaceutical Laboratories, Ltd.
June 18, 2013
Panel: Newman, Dyk and Prost. Opinion by Prost. Dissent by Newman.
Summary:
A patent claims a combination therapy using two drugs. The patent was issued by overcoming prior art as an examiner recognized an unexpected result proved by an inventor’s declaration. In the district court, defendant presented new evidence challenging the validity of the patent. The evidence showed that one of the claimed drugs was well known to be used in the therapy, and another drug having similar mechanism as the other was also well known to be used in such combination therapy. Relying on the evidence, the district court hold that the patent was obvious because the evidence created a strong prima facie case of obviousness, and it was so strong that the patentee’s evidence showing certain superior effects did not overcome the prima facie obviousness. The majority agreed with the district court holding. Judge Newman dissented.
地裁は、2つの公知の薬物（repaglinideとmetformin）の併用による糖尿病治療方法の特許に関して予期せぬ効果は立証されなかったため無効であると判断した。連邦巡回区控訴裁判所（CAFC）はその特許無効判決を支持した。Metforminは同治療用として周知であり、repaglinideはmetforminとは異なる経路に作用するものとして糖尿病治療に利用されていた。先ず特許庁では、その併用は加算的な効果しかないとして審査官に拒絶されたが、出願人が追加実験データを提出することにより相乗効果が認められ特許になった。その後、侵害被疑者は地裁で新たな証拠を出した。それによるとrepaglinideと同じクラス（sulfonylureas）に属する同様の機能を有する化合物をmetforminと併用する療法が知られていた。他方、特許権者は、repaglinideはその文献に記載のsulfonylurea化合物とは異なること、特にmetforminとrepaglinideの併用はmetforminの単独使用と比較して空腹時血漿グルコースレベルを8倍も改善するという証拠を出した。しかしながら，地裁は侵害被疑者の証拠を採用し、特許無効の判決を出した。CAFCは、repaglinideとsulfonylurea類の併用が周知であり、ある種の相乗効果も報告されている点を強調し、地裁に同意し、特許権者の主張を退けた。特許権者の証拠によるとrepaglinide単独の特性から見て予想外な併用効果があることも示唆されるがCAFCは類似の併用療法が周知であるという全体的な方向性を見て、特許権者の具体的な反論を認めなかった。本件は、公知の薬物の併用はそれと類似の併用例が知られていると強い自明性の仮定が働き、特許権者はそれを克服するために相当に高いレベルの反証が要求されることを示す判決である。本件では、クレーム治療方法の商業的成功の証拠は不十分であるとして認められなかった。
なお、判事の一人（Newman）は、反対意見を述べている。化学的実験というものはある程度の予測、希望を持ってなされるものであり、そのような状況があるということで直ちに「自明な試み」として特許しないのはいかにも不合理であるといった趣旨である。特にrepaglinide自体は先行技術の化合物とは異なるにもかかわらず、repaglinideによる併用効果の発見は特許権者が公知の併用療法をさらに追求した結果にすぎないと示唆したことは、後知恵による判断であると非難した。
Tags: obvious to try > obviousness > unexpected results
CAFC Raises the Bar Higher Against Patentees Asserting Induced Infringement Claims: Enabling Defendants to Introduce “Good Faith” Invalidity Arguments
| July 3, 2013
Commil USA, LLC v. Cisco Systems, Inc.
June 25, 2013
Panel: Prost, Newman and O’Malley. Opinion by Prost. Concurrences-in-part by Newman and O’Malley.
Summary
In this case, Commil USA, LLC (Commil) sued Cisco Systems, Inc. (Cisco) for infringement of U.S. Patent No. 6,430,395 directed to a wireless system. In separate trials, the district court held that Cisco directly infringed the ‘395 patent and that Cisco infringed the patent by virtue of “inducement” of infringement. Commil was awarded damages of $3.7 million for the direct infringement and of about $74.0 million for the induced infringement. On appeal, the CAFC vacated the induced infringement award and ordered a new trial for the inducement claims on the basis that both 1) the trial court erred in instructing the jury as to the specific intent required for finding inducement – i.e., requiring an actual knowledge of infringement or a willful blindness (standards higher than mere negligence or recklessness) – and 2) the trial court erred in not considering evidence pertaining to Cisco’s good faith belief that the ‘395 patent was invalid as evidence that Cisco did not have the specific intent required for finding inducement. While the CAFC had previously held that a good faith belief of non-infringement was evidence weighing against the specific intent for finding inducement, this case is the first instance in which the CAFC has held that a good faith belief of invalidity was similar evidence. In a concurring-in-part opinion, Judge Newman criticizes the majority’s position that a good faith belief of invalidity weighs against the specific intent for finding inducement.
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Tags: good-faith > indirect infringement > induced infringement > intent > invalidity > prejudicial treatment > willful blindness
