DYK, Circuit Judge.
This case returns to this court on vacatur and remand from the Supreme Court, "for further consideration in light of Commil USA, LLC v. Cisco Systems, Inc., ___ U.S. ___, [135 S.Ct. 1920, 191 L.Ed.2d 883 (2015)]." Medtronic Sofamor Danek USA, Inc. v. NuVasive, Inc., ___ U.S. ___, 136 S.Ct. 893, 193 L.Ed.2d 785 (2016) (Mem.). On remand, we reaffirm the district court's judgment with respect to U.S. Patent No. 7,470,236 ("the '236 patent") and reinstate our earlier judgment in other respects.
The vacated decision, Warsaw Orthopedic, Inc. v. NuVasive, Inc., 778 F.3d 1365 (Fed. Cir. 2015), began as a patent infringement suit by Warsaw Orthopedic, Inc. and a related company, Medtronic Sofamor Danek USA, Inc., ("MSD")
Our opinion issued on March 2, 2015. The Supreme Court decided Commil shortly thereafter, on May 26, 2015. 135 S.Ct. at 1920. MSD subsequently petitioned for certiorari in this case, requesting that the Court grant certiorari, vacate, and remand ("GVR") on the basis that our court did not correctly apply the test for induced infringement under 35 U.S.C. § 271(b) articulated in Commil and the
We recalled our mandate and reopened the case on March 3, 2016. We requested supplemental briefing from MSD and NuVasive on "the question of what action this court should take on remand from the Supreme Court `for further consideration in light of Commil....'" March 2, 2016, Order, ECF No. 93. We now consider what action is appropriate in this case in light of the Supreme Court's remand.
The only question here is whether there was substantial evidence for the jury to conclude that MSD induced infringement of NuVasive's '236 patent. The Supreme Court's decision in Commil reaffirmed and clarified the Court's earlier decision in Global-Tech on the standard for inducement under § 271(b) but did not change the law. See Commil, 135 S.Ct. at 1927-28. Commil, like Global-Tech, held that proof of induced infringement requires not "only knowledge of the patent" but also "proof the defendant knew the [induced] acts were infringing." Id. at 1926, 1928. Commil, in reaffirming Global-Tech, also necessarily reaffirmed that willful blindness can satisfy the knowledge requirement for active inducement under § 271(b) (and for contributory infringement under § 271(c)), even in the absence of actual knowledge. Global-Tech, 131 S.Ct. at 2070.
Global-Tech also held that knowledge of infringement can be inferred from circumstantial evidence. Id. at 2071-72. In this respect, Global-Tech affirmed the Supreme Court's and our court's earlier precedents, which held that the "requisite intent to induce infringement may be inferred from all of the circumstances." Broadcom Corp. v. Qualcomm Inc., 543 F.3d 683, 699 (Fed. Cir. 2008) (quoting Water Techs. Corp. v. Calco, Ltd., 850 F.2d 660, 669 (Fed. Cir. 1988)); see also MGM Studios Inc. v. Grokster, Ltd., 545 U.S. 913, 936, 939-940, 125 S.Ct. 2764, 162 L.Ed.2d 781 (2005) (applying the inducement standard of patent law in a copyright context and holding that circumstantial evidence demonstrated an "unmistakable" "unlawful objective" to induce infringement); Lucent Techs., Inc., v. Gateway, Inc., 580 F.3d 1301, 1322 (Fed. Cir. 2009) ("A plaintiff may ... prove the intent element through circumstantial evidence, just as with direct infringement...."); Fuji Photo Film Co., Ltd. v. Jazz Photo Corp., 394 F.3d 1368, 1377 (Fed. Cir. 2005) ("A patentee may prove intent through circumstantial evidence."); Water Techs., 850 F.2d at 660 ("While proof of intent is necessary, direct evidence is not required; rather, circumstantial evidence may suffice.").
The '236 patent is directed to a method for detecting the presence of and measuring distance to a nerve during surgery. Warsaw, 778 F.3d at 1372. The patented method requires sending a series of electrical pulses that gradually increase in strength until a pulse reaches sufficient strength to elicit a nerve response. Id. Proximity to the nearest nerve is proportional
The district court concluded that the "stopping" step — specifically, the claim term, "stopping the emission of said stimulus signal immediately after said predetermined neuro-muscular response is detected" — did not need to be construed and consequently did not provide the jury with any construction (although the court did construe the embedded term "stimulus signal," as discussed below). In determining whether the NIM-Eclipse met the "stopping" step, the jury was required to apply the "plain meaning to a person of ordinary skill in the art at the time of the invention." J.A. 206.
There is no dispute that the jury was correctly instructed as to the standard for induced infringement under Global-Tech (and Commil). The jury was instructed that it was NuVasive's burden to prove that "the alleged infringer knew or was willfully blind to the fact that the induced acts constituted patent infringement of at least one patent claim," in addition to the other elements of induced infringement. J.A. 213. MSD does not dispute that the jury was correctly instructed as to the relevant claim limitations of the '236 patent and as to NuVasive's burden to prove infringement by a preponderance of the evidence.
Thus, the question before us now is a limited one: whether the jury was presented with substantial evidence that MSD knew (or was willfully blind to the fact) that it was instructing doctors to infringe the '236 patent. MSD acknowledges that its "challenge is to the sufficiency of the evidence that it indirectly infringed." Appellants' Supp. Br. at 14. In the earlier appeal we did not address that question explicitly, stating only that "[t]here was evidence that MSD was aware of the patent prior to the litigation and that MSD specifically taught doctors to use the product during the surgical procedures in an infringing manner." Warsaw, 778 F.3d at 1373. We now address the question. We must sustain the jury's verdict if there was substantial evidence before the jury to support an inference that MSD knew (or was willfully blind to the fact) that doctors' use of its device infringed the '236 patent.
MSD argues that no reasonable jury could have inferred from the evidence before it that MSD had knowledge of (or was willfully blind to) its customers' infringement of the '236 patent. However, here we conclude that there was substantial evidence that MSD's infringement position was objectively unreasonable and that the jury, based on this evidence, could reasonably have concluded that MSD had knowledge (or was willfully blind to the fact) that it was infringing.
The central premise of MSD's non-infringement position is that it reasonably construed narrowly the "stopping" limitation
But on its face, claim 1 of the '236 patent says something different. Claim 1 requires "stopping the emission of said stimulus signal immediately after said predetermined neuro-muscular response is detected." '236 patent col. 17 ll. 58-60. That is, claim 1 requires stopping a particular kind of signal, "said stimulus signal," and does not require stopping any and all electrical signals emitted by the device.
At the district court, both parties agreed that "a stimulus signal" is a signal able to elicit a neuromuscular response (i.e., a nerve response). MSD asked the district court to construe "stimulus signal" to mean "a signal that can stimulate." J.A. 1871 (MSD's Responsive Claim Construction Brief). MSD expressly explained that, under its construction, a stimulus signal is one capable of stimulating a nerve. "Per Medtronic's construction, `a signal that can stimulate,'
The language of claim 1 clearly requires stopping the emission not of any or all stimulus signals but of one particular stimulus signal: "
MSD's claim is that the "stopping" limitation requires total cessation of any and all electrical stimulus pulses emitted by the nerve-monitoring device. It insists that "[s]topping the emission of the signal thus means the electrode — i.e., the device — must stop emitting any signal." Appellants' Supp. Br. at 10. This theory is clearly inconsistent with the construction of "
MSD also argues that the prosecution history of the '236 patent, which was before
J.A. 2895 (NuVasive's Amendment and Remarks of October 12, 2007). Contrary to MSD's argument, the prosecution history thus demonstrates that "stopping" refers to stoppage of the stimulus signal capable of eliciting a neuromuscular response, not necessarily stoppage of any and all electrical stimulus.
In short, there is no support in the language of claim 1 of the '236 patent or its prosecution history to support MSD's position that infringement of the "stopping" limitation requires complete termination of any and all electrical stimulus pulses from a nerve-probing device. Claim 1 recites "stopping the emission of said stimulus signal," not stopping the emission of all electrical signals.
In any event, MSD's effort at this late stage amounts to a request for a revised claim construction that it never sought. That is improper, as we previously ruled in our earlier opinion. Warsaw, 778 F.3d at 1373 (citing Hewlett-Packard Co. v. Mustek Sys., Inc., 340 F.3d 1314, 1321 (Fed. Cir. 2003)). Moreover, claim construction is, of course, ultimately a question of law that must be left to the court, not the jury. Teva Pharm. USA, Inc. v. Sandoz, Inc., ___ U.S. ___, 135 S.Ct. 831, 837, ___ L.Ed.2d ___ (2015). We have previously held that it is improper for juries to hear conflicting expert testimony on the correctness of a claim construction, given the risk of confusion. CytoLogix Corp. v. Ventana Med. Sys., Inc., 424 F.3d 1168, 1172 (Fed. Cir. 2005); see also Sundance, Inc. v. DeMonte Fabricating Ltd., 550 F.3d 1356, 1364 n. 6 (Fed. Cir. 2009).
Turning to the issue that is properly before us, undisputed evidence before the jury showed that, immediately after nerve stimulation, the NIM-Eclipse reduced the strength of the electrical stimulus pulses it emitted to a level that was not capable of stimulating the nerve that had provided the neuromuscular response. In other words, the "said stimulus signal" emitted by the NIM-Eclipse was stopped immediately after the neuromuscular response was detected.
Given the strength of the evidence NuVasive presented, a reasonable jury could have concluded that MSD must have known that its NIM-Eclipse device "stopped" emitting "said stimulus signal" immediately after that signal elicited a neuromuscular response. MSD's knowledge of the '236 patent is undisputed. As such, under these circumstances, a reasonable jury could have concluded that MSD's non-infringement position was objectively unreasonable and that MSD must have known that NIM-Eclipse meets the limitations of the claims of the '236 patent. A reasonable jury could therefore have inferred that MSD must have known, or was willfully blind to the fact, that doctors using the device infringe those claims.
We again affirm the district court's judgment of January 26, 2012, with respect to direct and indirect infringement of the '236 patent. In view of that judgment, we also affirm the district court's June 10, 2013, award of an ongoing royalty to be paid by MSD to NuVasive for post-verdict sales of the NIM-Eclipse device. We reinstate our earlier judgment with respect to NuVasive's infringement of MSD's patents, which was unaffected by the Supreme Court's GVR order. Warsaw, 778 F.3d at 1379.
Costs to NuVasive.
REYNA, Circuit Judge, concurring.
While I concur in the result reached by this court, I write to express several concerns regarding how the result was reached and its future implications. First, I am concerned about Section III of the opinion, which addresses the reasonableness of MSD's infringement position. This section concludes that "there is no support in the language of claim 1 of the '236 patent or its prosecution history to support" MSD's reading of the claims. Op. at 1350-51. MSD's petition for certiorari argued that, because this court's prior opinion did not discuss whether MSD's reading of the claims was reasonable, the Supreme Court should grant, vacate, and remand in light of Commil USA, LLC v. Cisco Sys., Inc., ___ U.S. ___, 135 S.Ct. 1920, 191 L.Ed.2d 883 (2015). Petition for Writ of Certiorari, Medtronic Sofamor Danek USA, Inc. v. NuVasive, Inc., 2015 WL 4397393 at *i.
Second, if the question before us is whether the jury had sufficient evidence to find that MSD induced infringement, such as circumstantial evidence showing that MSD was willfully blind, our analysis should discuss that evidence. But, the only evidence the opinion cites as showing MSD's intent to induce infringement is evidence that MSD's device itself directly infringed. Op. at 1350-51. Thus, the opinion's analysis is suspect. Commil indicated that a defendant's reliance on a claim construction under which it did not infringe, while incorrect or wrong, could still suffice to show that the defendant lacked the intent to induce infringement as long as the construction was reasonable. 135 S.Ct. at 1928. Because the jury was not instructed on this, I find it difficult at best to say that the jury necessarily decided that MSD's "claim construction" was unreasonable, as the opinion seems to do. Of note, the jury was not presented with the claim construction briefing that the court here relies on in its analysis criticizing MSD's "claim construction."
Third, the opinion concludes by stating that "[g]iven the strength of the evidence NuVasive presented, a reasonable jury could have concluded that MSD must have known" its device infringed under the claim constructions adopted by the district court and now affirmed by this court. Op. at 1351. It is not clear what evidence leads to this conclusion, let alone that the evidence is so strong that it shows MSD "must have known" it was infringing. In Global-Tech, the Supreme Court cited evidence that the accused infringer had intentionally withheld key information from its patent attorney when seeking a right-to-use opinion. Global-Tech Appliances, Inc. v. SEB S.A., 563 U.S. 754, 131 S.Ct. 2060, 2071, 179 L.Ed.2d 1167 (2011). In Global-Tech, the evidence demonstrated the defendant's willful blindness. The opinion here cites no similar evidence. The opinion's analysis suggests that any time a defendant's products are found to directly infringe, the plaintiff has sufficiently established the defendant's intent to induce infringement. This proposition conflicts with Global-Tech, Commil, and our caselaw.