Filed: Feb. 13, 2020
Latest Update: Mar. 03, 2020
Summary: Case: 19-1061 Document: 56 Page: 1 Filed: 02/13/2020 United States Court of Appeals for the Federal Circuit _ ACOUSTIC TECHNOLOGY, INC., Appellant v. ITRON NETWORKED SOLUTIONS, INC., Appellee _ 2019-1061 _ Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2017- 01024. _ Decided: February 13, 2020 _ MICHELLE ARMOND, Armond Wilson LLP, Newport Beach, CA, argued for appellant. Also represented by DOUGLAS R. WILSON, Austin, TX. ADAM R. BRAUSA, Durie T
Summary: Case: 19-1061 Document: 56 Page: 1 Filed: 02/13/2020 United States Court of Appeals for the Federal Circuit _ ACOUSTIC TECHNOLOGY, INC., Appellant v. ITRON NETWORKED SOLUTIONS, INC., Appellee _ 2019-1061 _ Appeal from the United States Patent and Trademark Office, Patent Trial and Appeal Board in No. IPR2017- 01024. _ Decided: February 13, 2020 _ MICHELLE ARMOND, Armond Wilson LLP, Newport Beach, CA, argued for appellant. Also represented by DOUGLAS R. WILSON, Austin, TX. ADAM R. BRAUSA, Durie Ta..
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Case: 19-1061 Document: 56 Page: 1 Filed: 02/13/2020
United States Court of Appeals
for the Federal Circuit
______________________
ACOUSTIC TECHNOLOGY, INC.,
Appellant
v.
ITRON NETWORKED SOLUTIONS, INC.,
Appellee
______________________
2019-1061
______________________
Appeal from the United States Patent and Trademark
Office, Patent Trial and Appeal Board in No. IPR2017-
01024.
______________________
Decided: February 13, 2020
______________________
MICHELLE ARMOND, Armond Wilson LLP, Newport
Beach, CA, argued for appellant. Also represented by
DOUGLAS R. WILSON, Austin, TX.
ADAM R. BRAUSA, Durie Tangri LLP, San Francisco,
CA, argued for appellee. Also represented by MARK A.
LEMLEY.
______________________
Before MOORE, REYNA, and TARANTO, Circuit Judges.
Case: 19-1061 Document: 56 Page: 2 Filed: 02/13/2020
2 ACOUSTIC TECHNOLOGY, INC. v. ITRON NETWORKED
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REYNA, Circuit Judge.
On September 8, 2017, the Patent Trial and Appeal
Board instituted inter partes review based on a petition
filed by Silver Spring Networks, Inc. Nine days after insti-
tution, Silver Spring agreed to merge with Itron, Inc., an
entity undisputedly time-barred under 35 U.S.C. § 315(b).
Silver Spring and Itron completed the merger during the
IPR proceeding. The Board later issued a final written de-
cision and found the challenged claim unpatentable. On
appeal, Acoustic asks that we vacate the Board’s final writ-
ten decision on grounds that the inter partes review was
time-barred due to Silver Spring’s and Itron’s merger-re-
lated activities. Acoustic also challenges the Board’s un-
patentability findings. Because we find that Acoustic
waived its time-bar argument and that substantial evi-
dence supports the Board’s unpatentability findings, we af-
firm.
BACKGROUND
I. ’841 Patent
Acoustic Technology, Inc. (“Acoustic”) owns U.S. Patent
No. 6,509,841 (“the ’841 patent”), which relates to commu-
nications systems for utility providers to remotely monitor
groups of utility meters, e.g., electricity meters. 1 According
to Acoustic, the claimed invention was “an improvement
upon prior art automated meter reading systems that used
expensive and problematic radio frequency (RF)
1 The ’841 patent is a continuation of U.S. Patent Ap-
plication No. 08/949,440, which issued as U.S. Patent
No. 5,986,574. Acoustic filed a related appeal involving
U.S. Patent No. 5,986,574 on the same day it filed this ap-
peal. Acoustic Tech., Inc. v. Itron Networked Solutions,
Inc., Case No. 2019-1059. We heard oral arguments in this
case and Case No. 2019-1059 on December 4, 2019. We
have issued opinions in both cases simultaneously.
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ACOUSTIC TECHNOLOGY, INC. v. ITRON NETWORKED 3
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transmitters, or systems that relied on human meter-read-
ers using handheld or vehicle-mounted short-range wire-
less devices to obtain meter readings when they were in a
customer’s vicinity.” Appellant Br. 7. Central to this ap-
peal are the “CDMA” and “relay” claim limitations.
In one embodiment, shown in Figure 1 below, a plural-
ity of “servicing means 16” (e.g., on-site utility meters) com-
municate with a “relay means 14,” which in turn
communicates with a “control means 12” (e.g., a remote
computer at a utility facility). J.A. 94, Fig. 1; J.A. 98–99
at 2:43–3:19.
The relay can be “positioned at any desired location
within the communication system,” including on a distri-
bution pole or at a customer’s location. The relay can com-
municate with the control station via a Code-Division
Multiple Access (“CDMA”) link. CDMA is a digital multi-
ple access technique where all users are allowed to trans-
mit simultaneously utilizing the same available frequency
band.
Claim 8 of the ’841 patent, reproduced below, is the
only claim at issue on appeal:
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4 ACOUSTIC TECHNOLOGY, INC. v. ITRON NETWORKED
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8. A system for remote two-way meter reading
comprising:
a metering device comprising means for
measuring usage and for transmitting
data associated with said measured us-
age in response to receiving a read com-
mand;
a control for transmitting said read com-
mand to said metering device and for re-
ceiving said data associated with said
measured usage transmitted from said
metering device; and
a relay for code-division multiple access
(CDMA) communication between said
metering device and said control,
wherein said data associated with said
measured usage and said read command
is relayed between said control and me-
tering device by being passed through
said relay.
J.A. 100 at 8:24–39.
II. IPR Petition
In March 2010, Acoustic sued Itron Inc. (“Itron”) for in-
fringement of the ’841 patent. Acoustic and Itron later
agreed to settle the suit. As part of the settlement agree-
ment, Acoustic licensed the ’841 patent to Itron. As a result
of the lawsuit, Itron was time-barred from seeking inter
partes review (“IPR”) of the ’841 patent as of March 26,
2011. See 35 U.S.C. § 315(b).
Six years after suing Itron, Acoustic sued Silver Spring
Networks, Inc. (“Silver Spring”) for infringement of the ’841
patent. In response, on March 3, 2017, Silver Spring filed
the IPR petition that gave rise to this appeal: IPR2017-
01024 (“the petition”).
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Several weeks before Silver Spring filed the petition,
Silver Spring and Itron began privately discussing “a po-
tential business combination.” J.A. 6556. The first contact
occurred on February 12, 2017, when a representative of
Itron phoned a Silver Spring board member to express
Itron’s interest in a potential merger. The next day, Itron’s
CEO continued the discussion with a director of Silver
Spring. One week later, on February 20, 2017, Itron’s CEO
requested a meeting with Silver Spring to discuss “a poten-
tial acquisition.” J.A. 6556.
Silver Spring and Itron continued to discuss a potential
merger after Silver Spring filed the petition. Representa-
tives from each company met on March 10, 2017, one week
after Silver Spring filed the petition, and again on April 12,
2017.
The Board instituted inter partes review on Septem-
ber 8, 2017. Nine days later, on September 17, 2017, Silver
Spring and Itron agreed to merge. Itron publicly an-
nounced the agreement the next day. Silver Spring asserts
that, up until the day the parties reached an agreement,
Silver Spring was exploring potential business relation-
ships with more than a dozen other companies.
Silver Spring and Itron completed the merger on Jan-
uary 5, 2018, while the inter partes review proceeding re-
mained underway. Acoustic learned of the merger three
days later. On January 17, 2018, Silver Spring filed up-
dated mandatory notices that listed Itron as a real-party-
in-interest.
The Board entered a final written decision on Au-
gust 21, 2018, nearly a year after Silver Spring and Itron
agreed to merge, and seven months after they completed
the merger. The Board’s final written decision found claim
8 unpatentable on all three asserted grounds: anticipated
by NetComm; anticipated by Gastouniotis; and obvious in
view of Nelson and Roach. Acoustic never raised a time-
bar challenge to the Board.
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Acoustic appeals the Board’s final written decision. We
have jurisdiction under 28 U.S.C. § 1295(a)(4)(A).
DISCUSSION
Acoustic raises two issues on appeal. First, Acoustic
asserts that the Board’s final written decision should be va-
cated because the underlying IPR proceeding is time-
barred under 35 U.S.C. § 315(b). Second, Acoustic chal-
lenges the Board’s unpatentability factual findings as not
supported by substantial evidence.
I. Time-Bar
Acoustic argues that we must vacate the Board’s final
written decision because the inter partes review was time-
barred under 35 U.S.C. § 315(b). Section 315(b) provides:
An inter partes review may not be instituted if the
petition requesting the proceeding is filed more
than 1 year after the date on which the petitioner,
real party in interest, or privy of the petitioner is
served with a complaint alleging infringement of
the patent.
35 U.S.C. § 315(b) (emphasis added). Congress included
the “real parties in interest” provision in § 315(b) to “safe-
guard patent owners from having to defend their patents
against belated administrative attacks by related parties.”
Applications in Internet Time, LLC v. RPX Corp.,
897 F.3d
1336, 1350 (Fed. Cir. 2018), cert. denied,
139 S. Ct. 1366
(mem.) (2019).
The Board evaluates § 315(b) at the time it decides
whether to institute the proceeding. Power Integrations,
Inc. v. Semiconductor Components Indus., LLC,
926 F.3d
1306, 1315 (Fed. Cir. 2019). In Power Intergrations, we
held that the real-party-in-interest determination must
consider all relationships that arise before the date of in-
stitution, including relationships that arise after the peti-
tion filing date.
Id. at 1314–1315 (“[Section] 315(b)
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requires consideration of privity and [real-party-in-inter-
est] relationships arising after filing but before institu-
tion.”). We expressly declined to decide whether the Board
is required to reevaluate § 315(b) in view of a new real-
party-in-interest that arises after institution.
Id. at 1314
n.8 (“We do not address the impact of a change in
RPI . . . occurring after institution.”).
Acoustic argues that the underlying IPR is time-barred
because Itron was a real-party-in-interest “both before and
after the IPR was instituted.” Appellant Br. 51. Before
institution, Acoustic asserts, Itron was a real-party-in-in-
terest because “the executives met; Itron conducted due dil-
igence; the details of the merger were discussed; and the
formal ‘merger agreement’ was prepared and negotiated.”
Reply Br. 15–16. After institution, Acoustic contends, Itron
was “unquestionably” a real-party-in-interest because Sil-
ver Spring became a wholly-owned subsidiary of Itron, and
Itron “controlled [Silver Spring] and had a significant in-
terest” in the inter partes review proceeding.
Id. at 19–22.
Acoustic contends that Silver Spring’s post-institution
status as a real-party-in-interest is important because “in-
stitution is not a static decision” and the Board has the au-
thority to reevaluate § 315(b) when a real-party-in-interest
arises after institution. Reply Br. 17–18. The Board’s abil-
ity to assess § 315(b) after institution is necessary, Acoustic
explains, in order to avoid an “end-run around Section
315(b)” where parties delay their corporate deals until
shortly after institution and avoid the consequences of the
time-bar.
Id. 21–22.
Itron advances several arguments in response to
Acoustic’s time-bar arguments. First, Itron argues that
Acoustic waived its time-bar challenge of the IPR because
Acoustic did not raise those arguments before the Board.
Second, Itron argues that the time bar of § 315(b) does not
apply to the underlying IPR proceeding because Itron
merged with Silver Spring after the Board instituted the
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8 ACOUSTIC TECHNOLOGY, INC. v. ITRON NETWORKED
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proceeding. Third, Itron asserts that the Board is not au-
thorized to reevaluate § 315(b) after institution and that
Acoustic’s proposed reading of the statute “offers no logical
stopping point” for the Board to assess the time bar. Ap-
pellee Br. 39.
We hold that Acoustic has waived its time-bar chal-
lenge to the IPR because it failed to present those argu-
ments before the Board. We retain case-by-case discretion
over whether to apply waiver. Monsanto Tech. LLC v. E.I.
DuPont de Nemours & Co.,
878 F.3d 1336, 1342 n.8 (Fed.
Cir. 2018). We have “frequently declined to hear argu-
ments that the applicant failed to present to the Board.” In
re Watts,
354 F.3d 1362, 1367 (Fed. 2004). When a party
raises arguments on appeal that it did not raise to the
Board, they “deprive[] the court of the benefit of the
[Board’s] informed judgment.” In re NuVasive, Inc.,
842
F.3d 1376, 1380 (Fed. Cir. 2016) (explaining the im-
portance of “a comprehensive record that contains the ar-
guments and evidence presented by the parties”).
There is no dispute that Acoustic failed to raise § 315(b)
time-bar arguments before the Board. Acoustic became
aware of the merger as of January 8, 2018, more than seven
months before the Board issued its final written decision.
J.A. 7026. Yet, Acoustic does not provide any reason for its
failure to challenge the proceeding as time-barred. Be-
cause Acoustic failed to present its time-bar arguments to
the Board and “deprive[d] the court of the benefit of the
[Board’s] informed judgment,” we exercise our discretion to
apply waiver. In re
NuVasive, 842 F.3d at 1380.
Acoustic attempts to excuse its waiver by asserting,
without legal authority, that the time-bar is “jurisdic-
tional” and thus “may be raised at any time.” Appellant
Br. 29. We disagree.
Acoustic is correct that we have previously described
the time-bar restrictions on the Board’s institution powers
as “jurisdictional.” Appellant Br. 32–35 (citing Click-to-
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Call Techs., LP v. Ingenio, Inc.,
899 F.3d 1321, 1325
(Fed. Cir. 2018); Wi-Fi One, LLC v. Broadcom Corp.,
878
F.3d 1364, 1373 (Fed. Cir. 2018)). But our application of
waiver differs between challenges to an agency’s “jurisdic-
tion” and challenges to a federal court’s jurisdiction. PGS
Geophysical AS v. Iancu,
891 F.3d 1354, 1362 (Fed. Cir.
2018). As we explained in PGS:
Even if the Board could be said to have acted “ultra
vires” in refusing to institute reviews of some
claims and grounds . . . the Board’s error is wai-
vable, not one we are required to notice and act on
in the absence of an appropriate request for relief
on that basis. Several courts of appeals have rec-
ognized the same for a challenge to an agency’s “ju-
risdiction,” after the Supreme Court, in City of
Arlington v. FCC, rejected a distinction between
agency “jurisdiction” errors and other errors for
certain deference purposes . . . .”
Id. (compiling cases) (citations omitted). We hold that
time-bar challenges under § 315(b) are not immune from
waiver.
To permit litigants to raise § 315(b) time-bar chal-
lenges for the first time on appeal would encourage what
the Supreme Court has referred to as “sandbagging,” i.e.,
“suggesting or permitting, for strategic reasons, that the
[tribunal below] pursue a certain course, and later—if the
outcome is unfavorable—claiming that the course followed
was reversible error.” Freytag v. Comm’r of Internal Reve-
nue,
501 U.S. 868, 895 (1991). But allowing Acoustic to
raise a time-bar challenge for the first time on appeal
would afford it a significant and unfair advantage: Acous-
tic could wait for the Board’s decision on the merits, which
if favorable would have estoppel effect, and then challenge
the Board’s jurisdiction on appeal only if the Board finds
the claims obvious.
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Although we do not address the merits of Acoustic’s
time-bar argument, we note Acoustic’s concerns about the
concealed involvement of interested, time-barred parties.
But because Acoustic never raised this issue to the Board,
we decline to resolve whether Itron’s pre-merger activities
render it a real-party-in-interest, or whether the Board has
any authority or obligation to reevaluate § 315(b) post in-
stitution.
II. Unpatentability
Acoustic argues that we should reverse the Board’s un-
patentability findings. Acoustic contends that the Board
erred with respect to each of the three grounds on which it
found claim 8 unpatentable: (A) anticipation by NetComm;
(B) anticipation by Gastouniotis; and (C) obviousness in
view Nelson and Roach. We address each ground in turn.
We review the Board’s factual determinations for sub-
stantial evidence and its legal determinations de novo. Li-
qwd, Inc. v. L’Oreal USA, Inc.,
941 F.3d 1133, 1136
(Fed. Cir. 2019). Anticipation is a question of fact that we
review for substantial evidence. In re Hodges,
882
F.3d 1107, 1111 (Fed. Cir. 2018). Whether an invention
would have been obvious is a legal conclusion based on un-
derlying factual findings. Graham v. John Deere Co.,
383
U.S. 1, 17–18 (1966). Determinations about the scope and
content of prior art, and whether an artisan would be mo-
tivated to modify it with a reasonable expectation of suc-
cess, are questions of fact.
Id.
A. Anticipation by NetComm
Acoustic challenges the Board’s determination that
NetComm anticipates claim 8 of the ’841 patent. Specifi-
cally, Acoustic claims the Board erred by finding that Net-
Comm discloses the claimed CDMA communication
limitation.
Acoustic contends that the Board’s CDMA finding is
not supported by substantial evidence because the Board
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relied entirely on the testimony of Silver Spring’s expert,
Dr. Soliman. Appellant Br. 56. Acoustic explains that Dr.
Soliman’s testimony is not evidence of anticipation because
Dr. Soliman’s testimony reflects an “incorrect obviousness
standard” instead of the standard for anticipation.
Id.
Acoustic points to Dr. Soliman’s statement that a skilled
artisan would “recognize” NetComm as disclosing CDMA.
Id. Dr. Soliman’s use of the word “recognize,” Acoustic as-
serts, is akin to testimony about what a prior art reference
“suggests”—which goes to obviousness, not anticipation.
Id. We disagree.
In an anticipation analysis, the dispositive question is
whether a skilled artisan would “reasonably understand or
infer” from a prior art reference that every claim limitation
is disclosed in that single reference. Akamai Techs., Inc. v.
Cable & Wireless Internet Servs., Inc.,
344 F.3d 1186, 1192
(Fed. Cir. 2003). Expert testimony may shed light on what
a skilled artisan would reasonably understand or infer
from a prior art reference. Monsanto Tech. LLC v. E.I.
DuPont de Nemours & Co.,
878 F.3d 1336, 1345 (Fed. Cir.
2018). Moreover, expert testimony can constitute substan-
tial evidence of anticipation when the expert explains in
detail how each claim element is disclosed in the prior art
reference. Koito Mfg. Co. v. Turn-Key-Tech, LLC,
381 F.3d
1142, 1152 (Fed. Cir. 2004).
Here, Dr. Soliman conducted a detailed analysis and
explained how a skilled artisan would reasonably under-
stand that NetComm’s disclosure of radio wave communi-
cation was the same as CDMA. J.A. 893–896 at ¶¶ 165–
175. For example, Dr. Soliman identified specific passages
in NetComm that a skilled artisan would recognize as dis-
closing “spread-spectrum radio communication.” J.A. 894
at ¶ 169. Dr. Soliman identified other passages that a
skilled artisan would recognize as disclosing that “multiple
users share a band and hop between channels in that band
using a pseudo-random pattern assigned to each device.”
J.A. 895 at ¶ 171. As a result, Dr. Soliman concluded, a
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12 ACOUSTIC TECHNOLOGY, INC. v. ITRON NETWORKED
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skilled artisan would recognize that NetComm discloses
the CDMA limitation of claim 8. J.A. 896 at ¶ 176. Acous-
tic provided no evidence to rebut Dr. Soliman’s testimony.
J.A. 26.
We conclude that the Board’s finding that NetComm
discloses CDMA and anticipates claim 8 is supported by
substantial evidence. See Koito
Mfg., 381 F.3d at 1152.
B. Anticipation by Gastouniotis
Acoustic challenges the Board’s determination that
Gastouniotis anticipates claim 8 of the ’841 patent. Acous-
tic asserts that the Board’s finding is erroneous because the
Board relied on “the same structures to satisfy separate
claim limitations.” Appellant Br. 60. Specifically, Acoustic
asserts that the Board relied on the same “remote station
6” in Gastouniotis to satisfy the “control” and “relay” limi-
tations of claim 8.
Id. at 57. We disagree.
Gastouniotis discloses a two-way utility meter reading
system that includes a plurality of “remote stations” that
communicate with a plurality of “instrument links.”
J.A. 968 at 4:9–46. Gastouniotis discloses that individual
“remote stations” may have different functions in a given
embodiment.
Id. In finding that Gastouniotis anticipated
claim 8, the Board relied on separate “remote station”
structures to meet the “control” and “relay” limitations.
J.A. 30.
As to the “control” limitation of claim 8, the Board re-
lied on Gastouniotis’ disclosure of at least one remote sta-
tion that engages in two-way communication with the
metering device: transmitting commands to the metering
device and receiving usage data from the metering device.
Id. at 4:15–17. Dr. Soliman provided unrebutted testimony
that a skilled artisan would understand that these remote
stations disclosed in Gastouniotis meet the “control” limi-
tation of claim 8.
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As to the “relay” limitation of claim 8, the Board relied
on Gastouniotis’ disclosure of separate remote stations that
function as a “relay”:
[T]he remote stations can be configured to com-
municate with each other as well as with the in-
strument links. In this way, data obtained by one
remote station can be communicated to a central
location using the other remote stations as a relay.
J.A. 968 at 4:37–42 (emphasis added). Dr. Soliman pro-
vided unrebutted testimony that a skilled artisan would
understand that these remote stations disclosed in
Gastouniotis meet the “relay” limitation of claim 8.
As a result, we conclude that the Board did not improp-
erly rely on the same structure in Gastouniotis to meet the
“control” and “relay” limitations of claim 8. We affirm the
Board’s factual finding that Gastouniotis anticipates
claim 8.
C. Obviousness in View of Nelson and Roach
Acoustic challenges the Board’s determination that
claim 8 of the ’841 patent is rendered obvious in view of
Nelson and Roach. Acoustic asserts two errors in the
Board’s obviousness analysis: (i) that the Board errone-
ously mapped Nelson onto the elements of claim 8; and (ii)
that the Board’s motivation-to-combine finding is not sup-
ported by substantial evidence. We reject both arguments.
1.
First, Acoustic asserts that the Board erroneously
mapped “the same structure in Nelson onto multiple claim
limitations.” Appellant Br. 64. Specifically, Acoustic as-
serts that the Board relied on the same “electronic meter
reader (EMR)” in Nelson to satisfy both the “metering de-
vice” and “relay” limitations of claim 8. Appellant Br. 64–
65. We disagree.
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Nelson discloses a two-way meter reading system that
includes a plurality of “electronic meter readers (EMRs).”
J.A. 997 at 8:23–27; J.A. 1005 at 22:25; J.A. 1013 at 13:19.
Nelson discloses that individual EMRs may have different
functions in a given embodiment.
Id. In finding that Nel-
son anticipated claim 8, the Board relied on separate EMR
structures to meet the “metering device” and “relay” limi-
tations.
To satisfy the “metering device” limitation of claim 8,
the Board relied on Nelson’s disclosure that the “meter ap-
paratus 10,” which houses an EMR, “is substantially the
same as a conventional meter apparatus designed to indi-
cate the amount of electricity consumed by a consumer’s
electrical system.” J.A. 997 at 8:23–27; J.A. 1005 at 22:25.
Dr. Soliman provided unrebutted testimony that a skilled
artisan would recognize the metering apparatus of Nelson
as meeting the “metering device” limitation of claim 8.
To satisfy the “relay” limitation of claim 8, the Board
relied on Nelson’s disclosure of separate, “intermediate
EMR devices” that operate as “communication relays” in a
technique known as “meterstringing.” J.A. 1013 at 24:13–
19 (emphasis added). Nelson discloses that these “[i]nter-
mediate EMR devices serve [the] sole purpose of communi-
cations link between the EMI device and the target EMR
at the end of the communication link.”
Id. Dr. Soliman
provided unrebutted testimony that a skilled artisan would
recognize that the intermediate EMR devices of Nelson
meet the “relay” limitation of claim 8.
As a result, we conclude that the Board did not improp-
erly rely on the same electronic meter reader in Nelson to
satisfy both the “metering device” and “relay” limitations
of claim 8.
2.
Second, we reject Acoustic’s argument that the Board
erred in finding that a skilled artisan would be motivated
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to combine Nelson and Roach. Acoustic argues that the
Board “erred by not making any factual findings that one
of ordinary skill would have been motivated to combine the
prior art.” Appellant Br. 61. Acoustic requests that we re-
verse the Board’s finding because the Board relied on “at-
torney argument,” and “generically cited to [Dr. Soliman’s]
expert testimony.”
Id. at 61–62.
The motivation to combine prior art references can
come from the knowledge of those skilled in the art, from
the prior art reference itself, or from the nature of the prob-
lem to be solved. PGS Geophysical AS v. Iancu,
891
F.3d 1354, 1365 (Fed. Cir. 2018). Acoustic is correct that
conclusory expert testimony and attorney argument cannot
constitute substantial evidence of a motivation to combine.
E.g., Icon Health & Fitness, Inc. v. Strava, Inc.,
849
F.3d 1034, 1043 (Fed. Cir. 2017). We have found expert
testimony insufficient where, for example, the testimony
consisted of conclusory statements that a skilled artisan
could combine the references, not that they would have
been motivated to do so. TQ Delta, LLC v. CISCO Sys.,
Inc.,
942 F.3d 1352, 1359–60 (Fed. Cir. 2019).
The Board’s final written decision provides a detailed
discussion of Silver Spring’s arguments that a skilled arti-
san would have been motivated to combine Nelson and
Roach. J.A. 35–36. The Board expressly found those argu-
ments “supported by a sufficient rational underpinning”
and “supported by the testimony of Dr. Soliman.” J.A. 35–
36, 38. The Board cited specific pages of Dr. Soliman’s tes-
timony, including his opinion that “one of the goals of Nel-
son’s system is to increase communication reliability and
information access integrity,” and that the CDMA commu-
nication described in Roach was “well known” among
skilled artisans as a way to achieve those goals. J.A. 34–
36 (citing J.A. 914–915).
Dr. Soliman’s testimony was not conclusory or other-
wise defective, and the Board was within its discretion to
Case: 19-1061 Document: 56 Page: 16 Filed: 02/13/2020
16 ACOUSTIC TECHNOLOGY, INC. v. ITRON NETWORKED
SOLUTIONS
give that testimony dispositive weight. In re Am. Acad. of
Sci. Tech Ctr.,
367 F.3d 1359, 1368 (Fed. Cir. 2004). We
have previously determined that expert testimony consti-
tuted substantial evidence of a motivation to combine prior
art references, e.g., Unwired Planet, LLC v. Google Inc.,
841 F.3d 995, 1003 (Fed. Cir. 2016), and we reach the same
conclusion here. We affirm the Board’s conclusion that
claim 8 is rendered obvious by Nelson and Roach.
CONCLUSION
We have considered Acoustic’s other arguments and
find them unpersuasive. We affirm.
AFFIRMED
COSTS
No costs.