LEONARD DAVIS, District Judge.
Having considered the parties' written submissions and oral arguments, the Court
Mirror Worlds' Complaint, filed March 14, 2008, alleges that Apple infringes U.S. Patent Nos. 6,006,227 ("the '227 patent"), 6,638,313 ("the '313 patent"), 6,725,427 ("the '427 patent") (collectively "the patents-in-suit" or "the patents"), and 6,768,999.
The '227 patent issued on December 21, 1999, the '313 patent on October 28, 2003, and the '427 patent on April 20, 2004, all to Eric Freeman and David Gelernter. The '227, '313, and '427 patents stem from the same application and are of the same family.
At the time of the invention, the inventors recognized that operating systems had increasing abilities to store data. The inventors noticed the potential problems associated with efficiently retrieving a growing amount of stored information and sought a way to uniquely display, organize, and access the data. The patented invention uses a "stream" to organize the data. A stream is a diary that organizes documents into a time ordered sequence with a past, present, and future.
'227, '313, & '427 patents at Fig. 1. The documents represented in the stream are automatically archived, and a time stamp is used to identify the data. See '227 patent at [57], 16:9-25. As a user scrolls through the documents in the stack, an
Mirror Worlds accused Apple's operating system, Mac OS X, of infringement. The "Tiger," "Leopard," and "Snow Leopard" operating systems are the various accused versions of Mac OS X. Mirror Worlds accused Apple's computers and servers that use Leopard and Snow Leopard of infringing the '227, '427 and '313 patents and computers and servers that use Tiger of infringing the '227 patent.
Mirror Worlds identified three Mac OS X features — Spotlight, Cover Flow, and Time Machine — as practicing the patented invention. Transcript of Trial Proceedings 9/28/10 p.m. at 87:12-22 (hereinafter "TT"). Specifically, Mirror Worlds alleges that Spotlight implements the stream using Spotlight Store, Cover Flow practices displaying items in a stack, and Time Machine automatically archives as claimed by the patents. The Spotlight feature allows a user to search across the various contents (e.g. documents, picture, videos, music, calendar events) on the operating system. Spotlight is implemented through Spotlight Store, which has a Content Index, a Metadata Store, and an interface. 9/28/10 TT at 89:13-93:9; 9/30/10 p.m. (pt. 1) TT at 89:17-91:11. The Content Index maintains an index of the contents of the data. Using a document as an example, the Content Index keeps track of the words in the document. Likewise, the Metadata Store maintains the metadata information. Again using a document as an example, the stored content could include the time and date of creation, author, or where the document is stored. Finally, the interface in Spotlight allows a user to submit search queries. The Tiger, Leopard, and Snow Leopard operating systems include Spotlight Store, and the Leopard and Snow Leopard operating systems also enter metadata in the Content Index. 9/28/10 TT at 104:8-15; 9/30/10 a.m. 39:13-15. Cover Flow is a graphical user interface that allows a user to flip through a stack of documents while representative versions of the document are displayed. 9/28/10 TT at 108:5-11. Time Machine is a backup utility that archives a user's data. 9/28/10 TT at 108:16-109:5.
Before proceeding to trial, Mirror Worlds narrowed its asserted claims and accused products.
After the close of Mirror Worlds' case-in-chief, the Court granted Judgment as a Matter of Law that: 1) Apple did not infringe under 35 U.S.C. § 271(f); 2) Apple did not induce or contributorily infringe any claims;
The Court requested briefing regarding infringement under the doctrine of equivalents for claims 16 and 18 of the '427 patent. Upon consideration of the parties' written submissions and oral argument, the Court granted judgment as a matter of law that Apple's mobile devices did not infringe claims 16 and 18 of the '427 patent under the doctrine of equivalents, thereby removing the mobile devices from the case. Docket No. 400. Following these rulings, Mirror Worlds' case went to the jury on Apple's direct infringement of method claims 13 and 22 of the '227 patent; method claims 1-3, 9, and 11 of the '313 patent; and claims 1, 8, 16, 18, and 25 of the '427 patent by Apple making, using, offering to sell, selling, or importing Mac OS X 10.4-6. The jury found the patents-in-suit valid and infringed and listed damages of $208.5 million for each patent. Docket No. 409.
Judgment as a matter of law is only appropriate when "a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue." FED. R. CIV. P. 50(a). "The grant or denial of a motion for judgment as a matter of law is a procedural issue not unique to patent law, reviewed under the law of the regional circuit in which the appeal from the district court would usually lie." Finisar Corp. v. DirecTV Group, Inc., 523 F.3d 1323, 1332 (Fed.Cir.2008). The Fifth Circuit "uses the same standard to review the verdict that the district court used in first passing on the motion." Hiltgen v. Sumrall, 47 F.3d 695, 699 (5th Cir.1995). Thus, a jury verdict must be upheld, and judgment as a matter of law may not be granted, unless "there is no
As a threshold matter, the Court rejects Mirror Worlds' argument that Apple waived its right to judgment as a matter of law for non-infringement of the Mac OS X products. Mirror Worlds argues that Apple's motions at trial were limited to the mobile devices. Apple moved for judgment as a matter of law multiple times throughout the case. At the close of Mirror Worlds' case-in-chief, among other grounds, Apple moved for judgment as a matter of law of non-infringement under the doctrine of equivalents. 9/29/10 p.m. TT at 89:13-90:1 ("Mirror Worlds has failed to establish any infringement under the DOE, because there is no evidence for a reasonable jury to find that the differences between the accused products and Mirror Worlds' patents-in-suit are insubstantial."). Again, after the close of evidence and before the case was submitted to the jury, Apple re-urged its motion. See 10/1/10 TT at 17:22-24, 19:9-13.
The Fifth Circuit construes Rule 50(a) liberally. See Blackboard, Inc. v. Desire2Learn, Inc., 574 F.3d 1371, 1379-80 (Fed.Cir.2009). A challenge to the sufficiency of a party's motion for judgment "should be examined in light of the accomplishment of its particular purpose as well as in the general context of securing a fair trial for all concerned in the quest for truth." MacArthur v. Univ. of Tex. Health Ctr., 45 F.3d 890, 897 (5th Cir. 1995). The purpose of a Rule 50 motion is to: 1) alert the Court as to the party's legal position; and 2) put the opposing party on notice of the moving party's position as to the insufficiency of the evidence. Blackboard, Inc., 574 F.3d at 1379-80. Apple's motions for judgment as a matter of law and renewed motions were not limited as Mirror Worlds asserts. Apple repeatedly objected to the adequacy of evidence supporting Mirror Worlds' claims, such that neither Mirror Worlds nor the Court could have failed to understand Apple's positions. Thus, Apple satisfied the procedural requirements for its motions for judgment as a matter of law.
Next, the Court addresses whether the record contains sufficient evidence to support the jury's finding of infringement. The Court first examines the evidence supporting Apple's direct infringement of the asserted method claims of the '227 and '313 patents and then turns to the evidence supporting Mirror Worlds' claims of infringement under the doctrine of equivalents as to the '427 patent. The Court's determination regarding the asserted method claims affects all asserted claims of the '227 and '313 patents, thus is dispositive for these patents. Likewise, the Court's examination of Mirror Worlds' equivalency infringement claims addresses limitations that are required by all of the asserted claims of the '427 patent, thus is dispositive of the '427 patent. Accordingly, the Court's decisions addressing these two issues are case dispositive on all claims for all asserted patents.
After the Court dismissed Mirror Worlds' indirect infringement claims from the case, Mirror Worlds' claims were restricted to Apple's direct infringement.
At trial, Mirror Worlds alleged that various capabilities of Spotlight, Cover Flow, and Time Machine infringed the asserted method claims. In support, Mirror Worlds relied on the testimony of its expert, Dr. Levy, who described the capabilities of the accused features and concluded they infringed.
Apple challenges the sufficiency of evidence that Apple directly infringed by practicing the steps required by the method claims. To practice the claimed steps, Apple contends that a user must interact with the accused Apple computers by accessing and using the accused features of Mac OS X (i.e., Spotlight, Cover Flow, and Time Machine) to perform the claimed steps. Apple claims this is absent from the record.
Mirror Worlds first asserts that Apple "automatically" infringes because the accused Spotlight feature is "built into the core" of Apple's operating systems that "are always on and necessarily practiced by Apple's computers." See Docket No. 445 at 3. Mirror Worlds contends that once the operating system is up and running, Spotlight performs the infringing steps "by automatically including every document generated or received by the computer, automatically selecting timestamps, and associating chronological indicators." Id. Mirror Worlds also relies on exhibition video clips of Apple's co-founder, Steve Jobs, and press releases that generally refer to "instant" and "automatic" integration of files into Spotlight Store. Taken together, Mirror Worlds contends this demonstrates Apple's direct infringement.
Second, Mirror Worlds argues that Apple's computer sales containing the accused Mac OS X software supports the jury's finding of direct infringement of the method claims. Citing Apple's documents that discuss the accused Spotlight, Cover Flow, and Time Machine features of Mac OS X, Mirror Worlds contends that "Apple's offers for sale were for the infringing applications, not a computer or software that was merely capable of infringement." Thus, Mirror Worlds concludes that Apple's advertisements, highlighting the accused features, is also legally sufficient evidence for the jury to have found direct infringement of the method claims. Id. at 7.
Finally, Mirror Worlds argues that it is undisputed that Apple developed and sold the accused products; therefore, it was reasonable for the jury to infer that Apple necessarily tested the accused products and performed the patented steps.
To prove infringement, the plaintiff bears the burden of proof to show the presence of every element or its equivalent in the accused device. Lemelson v. United States, 752 F.2d 1538, 1551 (Fed.Cir.1985). "A determination of infringement is a question of fact that is reviewed for substantial evidence when tried to a jury." ACCO Brands, Inc. v. ABA Locks Mfr. Co., 501 F.3d 1307, 1311 (Fed.Cir.2007).
"To infringe a method claim, a person must have practiced all steps of the claimed method." Finjan, Inc. v. Secure Computing Corp., 626 F.3d 1197, 1206 (Fed.Cir.2010) (citing Lucent Techs. v. Gateway, Inc., 580 F.3d 1301, 1317 (Fed. Cir.2009)). "[A] method claim is not directly infringed by the sale of an apparatus even though it is capable of performing
Actual practice of the specific claim steps is required to infringe the asserted method claims. Viewing the record in a light most favorable to Mirror Worlds, there is insufficient evidence that Apple performed the claimed steps and therefore directly infringed the '227 and '313 patents. See Lucent, 580 F.3d at 1317.
Mirror Worlds' reliance on Apple's sales of computers that contain the accused Mac OS X 10.4-6 software does not prove direct infringement. The law is clear that the sale or offer for sale is insufficient to prove direct infringement of a method claim. See Joy Techs., 6 F.3d at 773 ("The law is unequivocal that the sale of equipment to perform a process is not a sale of the process within the meaning of section 271(a)."). Mirror Worlds attempts to skirt this precedent by alleging that Apple specifically offered the accused methods for sale — citing Apple's marketing materials and user manuals, which highlight some of the steps required by the method claims. However marketed, Apple's computer sales containing the accused Mac OS X software do not constitute direct infringement of the method claims without the requisite evidence showing Apple actually performed the claimed steps. See Ricoh Co. v. Quanta Computer Inc., 550 F.3d 1325, 1335 (Fed.Cir.2008) ("we hold that a party that sells or offers to sell software containing instructions to perform a patented method does not infringe the patent under § 271(a)"); see also Finjan, Inc. v. Secure Computing Corp., 626 F.3d 1197, 1205-06 (Fed.Cir.2010) (applying Lucent and reversing the denial of defendants' motion for judgment as a matter of law of non-infringement of method claims where the record, which included sales of the accused software and hardware containing the accused software, did not contain sufficient evidence to support direct infringement for the asserted method claims); cf. Microsoft Corp. v. AT & T Corp., 550 U.S. 437, 127 S.Ct. 1746, 1753-55, 167 L.Ed.2d 737 (2007) (holding that as a set of instructions, software is not a component of a patented device within the meaning of § 271(f) until it is reduced to a machine-readable copy).
Not only is it legally insufficient to show direct infringement of the method claims through Apple's sales, it is insufficient to merely assume that Apple conducted tests that performed the method while the accused features were under development. Mirror Worlds did not present any evidence of testing. General development alone is insufficient to prove that Apple performed the claimed steps. Mirror Worlds' arguments that it is reasonable to infer that testing occurred during development of the accused features does not replace the evidence required to prove infringement. See, e.g., Gemtron Corp. v. Saint-Gobain Corp., 572 F.3d 1371, 1380 (Fed.Cir.2009) (criticizing parties' reliance on unsworn attorney argument as "evidence").
Mirror Worlds' characterization of the accused features as "automatic" also fails to show that each step of the method claims was performed. Contrary to Mirror Worlds' contentions, the method claims are not "automatically" infringed by Apple's computers because of the accused products' capabilities; rather, the claims require user interaction to perform the
The remaining evidence presented by Mirror Worlds also fails to show that Apple performed the steps required by the claims. Throughout trial, Mirror Worlds continually referenced and played clips of Mr. Jobs demonstrating the Spotlight and Cover Flow features. Both during and after trial, Mirror Worlds asserted the video was evidence of infringement; however, this assertion is unsupported by the record. First, the video did not demonstrate Mr. Jobs performing all of the steps of the claimed method. At best, the video clips highlighted and promoted a few attributes of the accused Spotlight and Cover Flow features and practiced some of the claimed steps. Second, despite representing to the jury that the videos showed Mr. Jobs using the accused products, Mirror Worlds did not establish that the features demonstrated in the videos were actually the features accused of infringement in this case. Common to the industry, Apple has different versions of its software. In this case, Mirror Worlds accuses the Spotlight, Cover Flow, and Time Machine features of Mac OS X 10.4-6. Contrary to Mirror Worlds' representations, Mr. Jobs' demonstration of Spotlight in June 2004 and January 2005 were of non-accused software that did not practice all of the steps — Mirror Worlds' damages expert admitted that there was no evidence of infringement before April 2005 and the June 2004 version used in the video clips of Spotlight "wasn't infringing." 9/29/10 p.m. TT at 75:6-11 ("Q. Sir, at that conference in June of 2004, Apple handed out 3,000 copies of the accused infringing software, correct? A. No, that's not true at all. Q. That software wasn't infringing? A. It was not."), 76:19-21; see PX933 (no "main stream," because 2004 version of Spotlight only found files "some of the time"). Thus, contrary to Mirror Worlds' contentions, the videos featuring Mr. Jobs fail to meet the evidentiary burden showing the patented method was practiced by Apple.
Likewise, Mirror Worlds did not show Apple's direct infringement through circumstantial evidence. Direct infringement of a method claim can also be proved by circumstantial evidence. See Lucent, 580 F.3d at 1317-18. In Lucent, the jury was
At the post-trial hearing, Mirror Worlds stated it is "disingenuous" for Apple to argue that Mirror Worlds failed to prove direct infringement. Mirror Worlds protests that, with Apple's development, marketing, and testing of the features, it is hard to imagine that Apple and its customers did not use the accused Spotlight, Cover Flow, and Time Machine features of Mac OS X 10.4-6. However, direct infringement of a method claim cannot be determined on speculation, assumptions, or inferences. If it was inconceivable to Mirror Worlds that the accused features were not practiced by Apple, it should have had no difficulty in meeting its burden of proof and in introducing testimony of such use. See E-Pass, 473 F.3d at 1222-23. Mirror Worlds simply failed to present sufficient evidence from which a reasonable jury could find that Apple, or anyone else, practiced each and every step of the claimed methods by using the Spotlight, Cover Flow, and Time Machine features in the accused Mac OS X 10.4-6. While it is important to persuade a jury, it is imperative to present a "legally sufficient evidentiary basis" to support that persuasion.
Construing this evidence most favorably to Mirror Worlds, the record does not contain evidence that Apple performed each of the claimed steps in the asserted method claims. Accordingly, no reasonable jury could have concluded that Apple directly infringed claims 13 and 22 of the '227 patent and claims 1, 2, 3, 9, and 11 of the '313 patent.
In addition to the Court's dismissal of indirect infringement, the Court also granted judgment as a matter of law specific to the asserted system claims of the '427 patent. The Court ruled that Apple did not literally infringe claims 16 and 18 of the '427 patent, 9/29/10 p.m. TT at 96:25-97:16, and further ruled that Apple's mobile devices did not infringe claims 16 and 18 of the '427 patent under the doctrine
Apple argues that Mirror Worlds failed to present sufficient evidence to show the accused Mac OS X infringes the asserted system claims and that the features of Mac OS X do not meet several of the claim limitations. In response, Mirror Worlds argues it presented sufficient evidence to support the jury verdict of infringement and Apple's evidence of non-infringement was rejected by the jury. Mirror Worlds contends that Dr. Levy explained how each limitation of each asserted claim is found in Apple's infringing products.
To prove literal infringement, the patentee must show that the accused device contains every limitation in the asserted claims. Cybor Corp. v. FAS Techs., Inc., 138 F.3d 1448, 1467 (Fed.Cir.1998) (en banc). To find infringement under the doctrine of equivalents, any differences between the claimed invention and the accused product must be insubstantial. Graver Tank & Mfg. Co. v. Linde Air Prods. Co., 339 U.S. 605, 608, 70 S.Ct. 854, 94 L.Ed. 1097 (1950). The "essential inquiry" in any determination under the equivalents doctrine is whether "the accused product or process contain[s] elements identical or equivalent to each claimed element of the patented invention." See Warner-Jenkinson Co. v. Hilton Davis Chem. Co., 520 U.S. 17, 40, 117 S.Ct. 1040, 137 L.Ed.2d 146 (1997). One way of proving infringement under the doctrine of equivalents "is by showing on a limitation by limitation basis that the accused product performs substantially the same function in substantially the same way with substantially the same result as each claim limitation of the patented product." Id. at 39-40, 117 S.Ct. 1040. However, "`[e]quivalence, in the patent law, is not the prisoner of a formula and is not an absolute to be considered in a vacuum.'" Id. at 24-25, 117 S.Ct. 1040 (quoting Graver Tank, 339 U.S. at 609, 70 S.Ct. 854).
To support a finding of infringement under the doctrine of equivalents, Mirror Worlds must have presented, on a limitation-by-limitation basis, "particularized testimony and linking argument as to the `insubstantiality of the differences' between the claimed invention and the accused device or process, or with respect to the function, way, result test." Amgen Inc. v. F. Hoffman-LA Roche Ltd., 580 F.3d 1340, 1382 (Fed.Cir.2009) (quoting Tex. Instruments v. Cypress Semiconductor Corp., 90 F.3d 1558, 1567 (Fed.Cir. 1996)). "Generalized testimony as to the overall similarity between the claims and the accused infringer's product or process will not suffice." Tex. Instruments, 90 F.3d at 1567. Particularized testimony is essential, so that a patentee cannot "under the guise of applying the doctrine of equivalents, erase a plethora of meaningful structural and functional limitations of the claim on which the public is entitled to rely in avoiding infringement." Perkin-Elmer Corp. v. Westinghouse Elec. Corp., 822 F.2d 1528, 1532 (Fed.Cir.1987). These requirements "ensure that a jury is provided with the proper evidentiary foundation from which it may permissibly conclude that a claim limitation has been met by an equivalent." Comark Commc'ns, Inc. v. Harris Corp., 156 F.3d 1182, 1188 (Fed. Cir.1998).
The Court's evaluation of Mirror Worlds' evidence of infringement by equivalents
Viewing the record in the light most favorable to Mirror Worlds, Mirror Worlds did not present sufficient evidence to allow a reasonable jury to conclude that the asserted claims of the '427 patent were infringed under the doctrine of equivalents. In asserting its infringement claim under the doctrine of equivalents, Mirror Worlds had an obligation to provide the jury with particularized testimony linking Mac OS X to the patents. During the post-trial hearing, Mirror Worlds acknowledged that Dr. Levy's testimony did not include the "function, way, result test"; however, Mirror Worlds argued that Dr. Levy's testimony of the "insubstantial differences" between the claims and Cover Flow feature of the accused Mac OS X was sufficient to support the jury verdict. Yet, contrary to Mirror Worlds' arguments, Dr. Levy failed to specifically describe the "insubstantial differences" to the jury.
The following trial excerpts illustrate the insufficiency of Dr. Levy's testimony under the doctrine of equivalents. First, to demonstrate Cover Flow met the "displaying a cursor or pointer" portion of the
9/28/10 p.m. TT at 144:23-145:3. Dr. Levy testified that a cursor or pointer somehow existed "by default" at the center of the display:
Id. at 145:11-17; see also id. at 150:24-151:2 ('427 claim 8), 153:3-9 ('427 claim 16), 155:18-20 ('427 claim 25), 158:2-4 ('313 claim 1), 162:12-20 ('313 claim 9).
Second, Dr. Levy addressed the "responding to a user sliding without clicking the cursor or pointer over a displayed stack of document representations" and "displaying a glance view of a document" limitations. He testified that with Cover Flow "you don't have to click on each document in order to get it to move — or pop up in the center. You can achieve that by moving this scroll bar thumb [sic], by dragging it, or you can use a gesture of two fingers across or down a touch pad which will cause the stack to move." Id. at 146:18-23. Without further specific testimony or linking argument, Dr. Levy surmised that Cover Flow met these claim limitations.
Dr. Levy offered no substantive explanation for how or why Mac OS X operates in a similar way to the asserted claims. Instead, Dr. Levy merely repeated the claim language when testifying about the accused Mac OS X Cover Flow features and summarily considered them equivalent. Specifically, Dr. Levy did not offer particularized testimony describing how the differences are insubstantial between Cover Flow's moving stack of document representations over a stationary pointer and the claimed moving pointer over a stationary stack. At best, Dr. Levy's testimony summarily addressed the Cover Flow functions but failed to discuss why or how Cover Flow operates in a way that is substantially similar to the claim limitation. Rather, he merely described the Cover Flow attributes and provided no explanation specifically linking any functions to the limitation.
In addition, Mirror Worlds' infringement theory under the doctrine of equivalents regarding the cursor or pointer vitiates that claim limitation by accusing Apple's products of functioning in a way that is opposite of what the claim requires. Dr. Levy admitted that Cover Flow does not literally display a cursor or pointer but alleged the equivalent exists "by default" at the area in the center of the display where the glance view pops up. 9/28/10 p.m. TT at 145:11-17. Dr. Levy's general testimony that Apple's products do not display a cursor or pointer, while maintaining infringement under the doctrine of equivalents of a claim that requires the display of a cursor or pointer, reads this claim limitation out of the claim. Thus, based on Dr. Levy's theory of infringement, no reasonable jury could determine the accused Apple products to be insubstantially different from the claimed limitation. See Warner-Jenkinson, 520 U.S. at 39 n. 8, 117 S.Ct. 1040 ("Under the particular facts of a case ... if a theory of equivalence would entirely vitiate a particular claim element, partial or complete judgment should be rendered by the court.").
In its post-trial briefing, Mirror Worlds attempts to distance itself from the "default" pointer Dr. Levy presented at trial by contorting his testimony. Dr. Levy referenced the scroll bar as a way of moving the stack in Cover Flow to meet the "sliding without clicking" limitation, and his "default" pointer theory was used to meet the "displaying a cursor or pointer" limitation. Compare 9/28/10 p.m. TT. at 144:23-145:3, 146:7-23 with 144:11-145; see also Docket No. 398 at 4. Post-trial, Mirror Worlds argues the scroll bar meets the "displaying a cursor or pointer" limitation and argues this theory is distinguished from the "default" pointer theory the Court found legally insufficient due to claim vitiation as to the mobile devices. See Docket No. 400. Specifically, Mirror Worlds contends that unlike the mobile devices, the Cover Flow feature in Mac OS X displays a cursor and a scroll bar. Mirror Worlds argues the pointer or cursor requirement is literally infringed by a black arrow that is displayed on the screen and the scroll bar is the equivalent to the display stack. Using a cursor to manipulate the scroll bar, a user can flip through the display stack. Mirror Worlds now argues, contrary to Dr. Levy's testimony, that the scroll bar used by Cover Flow in the accused Mac operating systems meets the "displaying a cursor or pointer" limitation. This revised infringement theory is not what Mirror Worlds presented to the jury and likewise fails. Dr. Levy did not testify that the black arrow displayed by the Cover Flow feature in Mac OS X literally met the claim limitation, nor did he testify that the scroll bar is equivalent to the display stack as required by the claims. The record is absent of any particularized testimony equating the scroll bar to the display stack or explanation of the insubstantiality of the differences between the two, and Mirror Worlds cannot rewrite the evidence at trial by its post-trial arguments to justify the jury verdict. As such, the Court rejects this argument.
Dr. Levy's bald recitation of Cover Flow features and references to pictures and demonstratives without supportive reasoning of why the accused devices are substantially similar to the claim limitation is simply legally insufficient. Dr. Levy's testimony was far from the required
For these reasons, the record lacks sufficient evidence to support the jury's finding of infringement for the asserted claims of the claims 1, 8, 16, 18, 25 of the '427 patent.
For the reasons stated above, the Court
To establish willful infringement, Mirror Worlds was required to "show by clear and convincing evidence" that (1) Apple "acted despite an objectively high likelihood that its actions constituted infringement of a valid patent," and (2) "[the] objectively defined risk ... was either known or so obvious that it should have been known to the accused infringer." In re Seagate Tech., 497 F.3d 1360, 1371 (Fed. Cir.2007).
Because the record lacks sufficient evidence to support the jury's finding of infringement, the Court further vacates the jury's finding of willfulness. Accordingly, the Court
The scope of Mirror Worlds' case and Apple's potential liability exposure changed during the course of trial. At the onset of trial, Mirror Worlds accused Apple's operating systems contained in its computers and mobile devices of both direct and indirect infringement and sought aggregate damages totaling $625 million for infringement of all three patents (the "patent portfolio"). 9/29/10 p.m. TT at 15:25-16:14. Mirror Worlds' expert, Mr. Bratic, based the damages calculation on a hypothetical negotiation as set forth in Georgia-Pacific Corp. v. U.S. Plywood Corp., 318 F.Supp. 1116 (S.D.N.Y.1970). Mirror Worlds' damages theory was based on the accused features of the patent portfolio, and Mirror Worlds did not present evidence of damages on a "per patent" basis. 9/29/10 p.m. TT at 44:12-47:7, 50:25-52:5.
For the royalty base, Mr. Bratic used the revenue from the sales of the Apple
At the end of Mirror Worlds' case-in-chief, the Court granted Apple's motion for judgment as a matter of law that Mirror Worlds had not presented any evidence of indirect infringement on any of the patents-in-suit. The Court also granted judgment as a matter of law that Apple's mobile products did not infringe literally or under the doctrine of equivalents. Thus, the case was then limited to only Apple's direct infringement by its computers using Mac OS X 10.4-6, which use the accused Spotlight, Cover Flow, and Time Machine features. Following the Court's ruling that removed the mobile devices from the case, Mr. Bratic was recalled and testified that if the "iPhone, iPad, and iTunes" were removed from the case, the total aggregate damages requested by Mirror Worlds would be reduced by approximately 50 percent — approximately $300 million. 9/30/10 p.m. (pt. 2) TT at 83:1-5. However, Mr. Bratic did not adjust his damages calculations after dismissal of Mirror Worlds' indirect infringement claims.
After the close of evidence, Apple re-urged its motion for judgment as a matter of law for no direct infringement of the asserted method claims of the '227 and '313 patents, which if granted would have only left the '427 patent in the case. The Court expressed serious concern whether Mirror Words had met its evidentiary burden for the method claims for the '227 and '313 patents. However, the Court decided to allow the '227 and '313 patents to go to the jury, informing the parties that the Court would consider the motion post verdict. 10/1/10 TT at 11:14-21. In an attempt to provide Mirror Worlds with a basis for a damages award if the Court granted a post-trial motion for judgment as a matter of law dismissing the '227 and '313 patents, the Court revised the verdict form to provide separate damage findings for each patent. Id. at 15:9-16; Docket No. 409 at 2. The Court specifically asked Mirror Worlds if there was sufficient evidence of record to support a per-patent damage award for the '427 patent if the '227 and '313 patents were dismissed. Mirror Worlds responded it "didn't have a clue."
During closing argument, Mirror Worlds' counsel, consistent with Mr. Bratic's testimony, argued that if the jury found any one of the patents infringed, Mirror Worlds was entitled to approximately $300 million in damages. Because infringement of any one of the patents resulted in infringement of the patented features — which Mr. Bratic said supported an approximately $300 million award — Mirror Worlds asked the jury to award approximately $300 million if it found even one of the patents infringed. Likewise, using a demonstrative verdict form, Mirror Worlds' counsel wrote approximately $300 million next to each of the '427, '227, and '313, and patents:
Id. at 92:11-93:24. However, in Apple's closing arguments, its counsel apparently misunderstood Mirror Worlds' request and stated that Mirror Worlds was asking for $300 million for each patent, which added together would award close to a "billion dollars." Id. at 123:3-6. In rebuttal closing argument, Mirror Worlds' counsel clarified for the jury that it was not asking for a billion dollars — rather, it was asking the jury to award $300 million if it found any one of the patents infringed:
Id. at 132:18-133:8 (emphasis added). Presumably, Mirror Worlds made this argument to ensure that it would still be entitled to $300 million even if the Court, or jury, found one or more of the patents invalid or non-infringing.
Following deliberation, the jury found the patents-in-suit valid and infringed and listed damages of $208.5 million on the lines provided for each patent. Docket No. 409. Accordingly, and consistent with the record established at trial, the Court evaluates the sufficiency of evidence to support the jury's award of $208.5 million.
Despite Mirror Worlds' representation to the jury that it was only entitled to approximately $300 million, Mirror Worlds now asserts it is entitled to aggregate the $208.5 million answer for each patent, totaling $625.5 million. Specifically, Mirror Worlds requests: 1) entry of the total damages of $625.5 million awarded by jury's verdict; 2) prejudgment interest on the awarded damages; 3) damages for Apple's infringement from the date of the verdict through the date of entry of final judgment; 4) ongoing royalties for Apple's continued infringement after final judgment; 5) enhanced damages; 6) grant of attorneys' fees and experts' fees; 7) grant of costs; and (8) grant of post judgment interest.
"A district court's duty to remit excessive damages is a procedural issue, not unique to patent law." Imonex Servs., Inc. v. W.H. Munzprufer Dietmar Trenner GMBH, 408 F.3d 1374, 1380 (Fed. Cir.2005). In the Fifth Circuit, a decision on remittitur and new trial is within the sound discretion of the trial court. See Thompson v. Connick, 553 F.3d 836, 865 (5th Cir.2008). The standard is highly deferential, and damages are set aside "only upon a clear showing of excessiveness." i4i Ltd. v. Microsoft Corp., 598 F.3d 831, 857 (Fed.Cir.2010) (cert. granted ___ U.S. ____, 131 S.Ct. 647, 178 L.Ed.2d 476 (2010)) (quoting Duff v. Werner Enters., Inc., 489 F.3d 727, 730 (5th Cir.2007)). An excessive award exceeds the "maximum amount calculable from the evidence." Carlton v. H.C. Price Co., 640 F.2d 573, 579 (5th Cir.1981).
A patentee is entitled to damages for infringement under 35 U.S.C. § 284 ("Upon finding for the claimant the court shall award the claimant damages adequate to compensate for the infringement, but in no event less than a reasonable royalty for the use made of the invention by the infringer, together with interest and costs as fixed by the court."). The burden of proving damages falls on the patentee. Dow Chem. Co. v. Mee Indus., Inc., 341 F.3d 1370, 1381 (Fed.Cir.2003). There are two alternative categories of infringement compensation: the patentee's lost profits and the reasonable royalty the patentee would have received through arms-length bargaining. See Lucent, 580 F.3d at 1324.
The entire market value rule "recognizes that the economic value of a patent may be greater than the value of the sales of the patented part alone." See King Instruments Corp. v. Perego, 65 F.3d 941, 951 n. 4 (Fed.Cir.1995). "The entire market value rule allows a patentee to assess damages based on the entire market value of the accused product [if] the patented feature creates the `basis for customer demand' or `substantially create[s] the value of the component parts.'" Uniloc USA Inc. v. Microsoft Corp., 632 F.3d 1292, 1318 (Fed.Cir.2011) (citing Lucent, 580 F.3d at 1336; Rite-Hite, 56 F.3d at 1549-50). "[T]he patentee ... must in every case give evidence tending to separate or apportion the defendant's profits and the patentee's damages between the patented feature and the unpatented features, and such evidence must be reliable and tangible, and not conjectural or speculative," or show that "the entire value of the whole machine, as a marketable article, is properly and legally attributable to the patented feature." Uniloc, 632 F.3d at 1318 (citing Garretson v. Clark, 111 U.S. 120, 121, 4 S.Ct. 291, 28 L.Ed. 371 (1884)); see also Lucent, 580 F.3d at 1336-37. For minor patent improvements, a patentee cannot justify using the entire market value of an accused product simply by asserting a low enough royalty rate. Uniloc, 632 F.3d at 1319-20 (rejecting contrary interpretation of Lucent, 580 F.3d at 1338-39); see Garretson, 111 U.S. at 121, 4 S.Ct. 291. Although a reasonable royalty analysis "necessarily involves an element of approximation and uncertainty," Unisplay, S.A. v. Am. Elec. Sign Co., 69 F.3d 512, 517 (Fed. Cir.1995), the Court must ensure that the jury verdict is supported by sufficient evidence.
Separate and apart from the sufficiency of evidence regarding infringement, there is insufficient evidence to support the jury's $208.5 million damages award. The jury was charged with determining whether Apple directly infringed the patents-in-suit and Apple's liability for such infringement.
First addressing the '227 and '313 patents, from which only method claims were asserted, Apple's liability was limited to its use of the patented method since the Court had granted judgment of no indirect infringement. Thus, Mirror Worlds was only entitled to recover damages that resulted from Apple's direct infringement. However, Mirror Worlds' infringement theory was based on Apple's sales, and Mirror Worlds did not present sufficient evidence to allow the jury to determine liability resulting from Apple's own use (direct infringement) of the methods in the '227 and '313 patents.
Apple's sales cannot be used to determine damages for Apple's direct infringement
Even after the Court's rulings at the close of Mirror Worlds' case-in-chief that removed indirect infringement from the case, Mirror Worlds did not supplement its damages evidence. Mirror Worlds did not present any evidence of a reasonable royalty based solely on Apple's own use of the patented methods. Thus, Mirror Worlds left the jury without an adequate basis to award damages for Apple's direct infringement of the method claims. Therefore, the evidentiary record is insufficient to support the jury's damage awards for the '227 and '313 patents, even if there had been sufficient evidence to support the jury's finding of infringement.
Likewise, the record lacks sufficient evidentiary basis to support the jury's damages award for Apple's direct infringement of the '427 patent. Since the asserted claims of the '427 patent were system claims the jury could properly include Apple's sales or offers for sale in determining its damages award. However, the evidence is insufficient to show how inclusion of sales for the system claims of the '427 patent, but not the method claims of the '227 and '313 patents, affected Mr. Bratic's damages calculation.
During trial, Mr. Bratic evaluated the damages as to Mirror Worlds' patent portfolio rather than on a per-patent basis. Mr. Bratic's only testimony separating the damages by patents was limited to the timing of the hypothetical negotiation:
9/29/10 p.m. TT at 61:22-62:10. Likewise, removing the revenue from the sales relating to the '227 and '313 patents would have affected Mr. Bratic's evaluation and determination of the reasonable royalty. Since Mirror Worlds accused the Leopard and Snow Leopard operating systems of infringing the '227, '427 and '313 patents and the Tiger operating system of infringing the '227 patent, at the very least, Mirror Worlds would need to account for removing sales of the Tiger operating system (Mac OS X 10.4). As such, there is insufficient evidence to determine how Mr. Bratic would have re-evaluated his damages
Moreover, Mirror Worlds presented a fatally flawed reasonable royalty analysis. First, Mirror Worlds did not present a legally sound justification for its royalty base. Mirror Worlds used both software and hardware incorporating the accused Mac OS X 10.4-6 to calculate a $72 billion royalty base. This included revenues from sales of software upgrades, iTunes, Macs (desktops, portables, and servers), iPods, iPhones, and iPads that contained the accused operating systems. Id. at 19:10-22:15. However, Mirror Worlds argues it did not rely on the entire market value rule, thus the rule does not does not apply to its damages calculation. Mirror Worlds further contends that because Mr. Bratic started with the smallest saleable units in his damages calculation, it need not perform an entire market value rule analysis. Id. at 52:1-54:15.
Despite Mirror Worlds' protestations that the entire market value rule does not apply, it undisputedly used the entire market value of the accused commercial products in calculating its royalty base — and the accused products contain several features, both accused and non-accused. Therefore, Mirror Worlds must show the connection between the accused commercial products, which form its royalty base, and the patented features. Accordingly, at trial Mirror Worlds was obligated to show that the Spotlight, Cover Flow, and Time Machine features create the "basis for customer demand" or "substantially create[s] the value of the component parts" in the accused software and hardware products that contain Mac OS X 10.4-6. See Uniloc, 632 F.3d at 1318.
At trial, Mirror Worlds presented consumer surveys and emails indicating customer demand for an upgrade to the Tiger operating system, which includes over 200 features. See 9/29/10 TT at 52:9-56:24; see also Ex. No. DX 851. Mr. Bratic presented an email that lists Spotlight as a "Key Tiger feature," and 23% of customers surveyed ranked Spotlight as the "[m]ost beneficial Tiger feature." See 9/29/10 TT at 52:9-56:24; see also Ex. No. DX 851. Mr. Bratic also discussed a customer email regarding the positive feedback Apple received about adding the Spotlight feature to the Tiger operating system. See 9/29/10 TT at 52:9-56:24; PX 983.
The survey and emails only addressed Spotlight — the remaining accused Mac OS X operating features, Cover Flow and Time Machine, were not included. Thus, there is no evidence these features similarly drove customer demand. Moreover, the survey and emails were not tied to any of the accused hardware devices (e.g. eMac, MacBook, MacBook Air, MacBook Pro, Mac mini, iMac, Mac Pro, iBook, PowerBook, Power Mac, and PowerPC), thus there is no indication that Spotlight drove customer demand for the hardware products. While the surveys indicated Spotlight generally related to customer demand for Tiger, which had over 200 features, the surveys cannot simply be translated to encompass Apple's various hardware, all which have exponentially more features with varying attributes that are unaccounted for. Likewise, the evidence only pertained to the Tiger operating system, it did not address the accused Leopard and Snow Leopard operating systems, and Mirror Worlds did not present any evidence that would indicate Spotlight continues to drive customer demand in the Leopard and Snow Leopard operating systems as well. Thus, the record lacks sufficient evidence that a jury could reasonably rely on to find customer demand of the Spotlight features created the "basis for customer demand" or "substantially create[s] the value of the component parts"
As Mirror Worlds is not entitled to use the entire market value of the accused products, it was obligated to properly apportion the royalty base to address the accused features, which it did not do. See 9/29/10 TT at 56:25-61:16. The law is clear, courts "do not allow consideration of the entire market value of accused products for minor patent improvements simply by asserting a low enough royalty rate." Uniloc, 632 F.3d at 1320. Apportionment cannot be achieved by the mere downward adjustment of the royalty rate in a purported effort to reflect the relative value of the accused features because doing so fails to remove the revenues associated with the non-accused features from the revenue base. Id. (clarifying Lucent and rejecting the argument that "the entire market value of the products may appropriately be admitted if the royalty rate is low enough"). Thus, Mirror Worlds cannot simply apply "haircuts" adjusting the royalty rate to apportion damages, and thereby justify the jury award, because the entire market value of the accused products has not been shown to be derived from the patented contribution. Uniloc, 632 F.3d at 1320-21.
Second, Mirror Worlds also failed to present a legally sound justification for its royalty rate. Mirror Worlds did not present evidence that would support a 8.8% running royalty on software or 0.81% running royalty for hardware. For example, Mr. Bratic did not explain why Apple, in the hypothetical negotiation, would agree to a running royalty. Nor did Mr. Bratic account for Apple's license agreements relating to "graphical user interface technology," which did not award similar royalties. See DX1085; DX0392; DX0393; DX0394; DX0398; DX0419; DX0420; DX0636. And while Mr. Bratic calculated the rate "leaving a lot of meat on the bone for Apple" he did not explain why the accused Spotlight, Cover Flow, and Time Machine features would be in such demand, or so frequently used, to command a 8.8% running royalty on software or 0.81% running royalty for hardware. See 9/29/10 TT at 39:19-40:15; see also Lucent, 580 F.3d at 1326-27. Therefore, the evidentiary record is insufficient to support the jury's damage awards for the '427 patent, even if there had been sufficient evidence to support the jury's finding of infringement.
For these reasons, the record lacks substantial evidence to support the jury's award of damages. The Court
Apple argues it presented clear and convincing evidence that all claims of the patents-in-suit are invalid as anticipated and obvious under 35 U.S.C. §§ 102, 103. Apple generally cites the numerous prior art references admitted at trial, arguing that "every asserted claim is rendered obvious over at least the following primary references and/or combinations of the following systems: (1) the `Piles' system, as described in at least U.S. Patent No. 6,243,724, to Mander et al.; (2) the `Workscape' system, as described in U.S. Patent No. 5,499,330 to Lucas et al.; (3) the Lifestreams system as described in `The "Lifestreams" Approach to Reorganizing the Information World,' YALEU/DCS/TR-1070 (`TR-1070'); and (4) Retrospect software, as described in the 1993 and 1995 Retrospect Manuals." Apple makes no other specific arguments regarding the patents'
In response, Mirror Worlds argues that Apple's invalidity case was defective because (1) Apple's expert applied a different claim construction for invalidity than he did for infringement and (2) Apple did not sufficiently compare the prior art to the claim elements.
In order to show that it is entitled to judgment as a matter of law on its affirmative defense of invalidity, Apple must prove the essential elements of that defense to a virtual certainty. ClearValue, Inc. v. Pearl River Polymers, Inc., 735 F.Supp.2d 560, 577 (E.D.Tex.2010) (citing Bank of La. v. Aetna U.S. Healthcare Inc., 468 F.3d 237, 241 (5th Cir.2006) ("For a defendant to obtain summary judgment on an affirmative defense, it must establish beyond dispute all of the defense's essential elements.")). A patent claim is invalid as obvious "if the differences between the subject matter sought to be patented and the prior art are such that the subject matter as a whole would have been obvious at the time the invention was made to a person having ordinary skill in the art." KSR Int'l Co. v. Teleflex Inc., 550 U.S. 398, 406, 127 S.Ct. 1727, 167 L.Ed.2d 705 (2007). A patent is invalid as anticipated if "the invention was patented or described in a printed publication in this or a foreign country ... more than one year prior to the date of the application for patent in the United States." 35 U.S.C. § 102(b). Although § 102 refers to "the invention" generally, the anticipation inquiry proceeds on a claim-by-claim basis. See Hakim v. Cannon Avent Group, PLC, 479 F.3d 1313, 1319 (Fed.Cir.2007). The single prior art reference must expressly or inherently disclose each claim limitation to anticipate a claim. Finisar, 523 F.3d at 1334. Additionally, the reference must "enable one of ordinary skill in the art to make the invention without undue experimentation." In re Gleave, 560 F.3d 1331, 1334 (Fed.Cir.2009).
Apple presented its theories of invalidity to the jury, and the jury was free to disbelieve Apple's experts. In its post-trial briefing regarding anticipation and obviousness, Apple fails to specifically address how the prior art invalidates the patents-in-suit or how the weight of the evidence was against the jury's validity determination. Instead of providing concise arguments with supporting evidence that highlights its positions, Apple instead attaches hundreds of pages of claim charts with generalized assertions that the prior art "either anticipate or render obvious, individually or in combination, each and every asserted claim." Docket No. 432 at 22. It is Apple's burden, not the Court's, to piece together and present an invalidity defense. Apple failed to show that it is entitled to judgment as a matter of law on invalidity, and Dr. Levy's testimony in this regard is sufficient evidence to support the jury's finding of no anticipation or obviousness. 9/30/10 p.m. (part 2) TT at 60:1-72:19. The jury's verdict is not against the weight of the evidence; therefore, the Court
Apple asserts the applicants' and prosecuting attorney's submission of false statements, false declarations, and concealment of prior art demonstrate a pattern of deceptive intent that is grounds for a finding of inequitable conduct. Apple argues that the applicants failed to properly identify prior art by misrepresenting its availability and that the inventors and their attorney
"Inequitable conduct resides in failure to disclose material information, or submission of false material information, with an intent to deceive, and those two elements, materiality and intent, must be proven by clear and convincing evidence." Kingsdown Med. Consultants, Ltd. v. Hollister Inc., 863 F.2d 867, 872 (Fed.Cir. 1988); see also Praxair, Inc. v. ATMI, Inc., 543 F.3d 1306, 1313 (Fed.Cir.2008). Because an actual "intent to deceive" is required, "[m]istake or negligence, even gross negligence, does not support a ruling of inequitable conduct." Abbott Labs. v. Sandoz, Inc., 544 F.3d 1341, 1353 (Fed.Cir. 2008). A court only has discretion to invalidate a patent for inequitable conduct after a showing of both materiality and intent to deceive. Id. When examining intent, the alleged conduct must be "viewed in light of all the evidence, including evidence indicative of good faith." Kingsdown, 863 F.2d at 876. However, when a "failure to disclose" is alleged, intent to deceive may be inferred when 1) highly material information is withheld, 2) the applicant knew of the information and knew or should have known of the materiality of the information, and 3) the applicant has not provided a credible explanation for the withholding. Praxair, 543 F.3d at 1313-1314.
First, Apple's arguments center around representations regarding the availability of the Yale Technical Report 1070 ("TR-1070"), dated April 1995, entitled "The `Lifestreams' Approach to Reorganizing the Information World." DX0004 at 0344-54, 0384-85. TR-1070 was co-authored by the inventors of the '227 patent, Dr. David Gelernter and Eric Freeman. Apple contends that if it was available, and indeed a printed publication under § 102(b), it would have been material prior art. In the Information Disclosure Statement ("IDS"), the applicants stated that TR-1070 was not publicly available:
DX0004 at 0384-85.
To demonstrate the report was publicly available, Apple references an internet archiving website and presented evidence that the inventors made TR-1070 available on the Computer Science Department's website at Yale. DX1126 at 0049, 0117. In addition, Yale administrative employees testified that copies of technical reports were made available upon request; however, hard copies of the reports were generally kept locked in either a cabinet or locked in a department office. 10/8/10 TT at 22:20-28:1; 37:22-42:9. The prosecuting attorney testified that he did not believe TR-1070 was publicly available, and therefore he did not believe it was a material reference. Even though he concluded TR-1070 was not material, he intended to inform the Patent Office of the document and thus included it in the IDS. 10/8/10 TT at 46:24-52:15.
Second, Apple argues the inventors and their attorney submitted false declarations of inventorship. Yale's Patent Policy required University employees to assign their patents to the school. DX0793 at ¶ 6. The '227 patent originally named Yale student, Mr. Freeman, as the sole inventor. DX0004 at 0056-57. Citing the prior art references in the application, the examiner noted that "the record appears to indicate that David Gelernter should be included as an inventor." Id. at DX0065; see also DX0065-68. The applicants subsequently filed an Amendment adding Dr. Gelernter, with a declaration that asserted that the correction "is necessitated by amendment of the claims." Apple contends this constitutes inequitable conduct because the first declaration intentionally misrepresented inventorship, and the second declaration misrepresented the reason for the correction because the amendments did not necessitate a change of inventorship. However, Dr. Gelernter testified that there was no deceptive intention on his part. 9/27/10 p.m. TT 144:9-146:21. Although the prosecuting attorney testified he did not have a specific recollection of the statements made in the declaration, he also testified that it was his typical practice to investigate such statements before submitting them to the Patent Office. 10/8/10 TT at 44:6-46:23.
While representations regarding inventorship are material to patentability, the Court does not find the declarations were filed with deceptive intent. See PerSeptive Biosystems, Inc. v. Pharmacia Biotech, Inc., 225 F.3d 1315, 1321 (2000). The evidence does not indicate that the patentees or the prosecuting attorneys intentionally presented falsehoods or omissions to the Patent Office, and the Court finds Mr. Gelernter's and the prosecuting attorney's testimony credible. Weighing the materiality of the statements regarding inventorship with the lack of intent, the Court does not find this evidence meets the clear and convincing burden to prove inequitable conduct.
Finally, Apple argues the inventors were aware of prior art references they did not disclose to the Patent Office. Apple argues that in December 1999 Mr. Freeman's dissertation and other publications described the Piles prior art reference (9/27/10 pm 127:18-128:23; DX0375 at 0002; DX0789 at 0015, 0172; DX0641), but the applicants did not disclose Piles to the Patent Office until June 2003 after receiving a Notice of Allowance for a related patent. DX0385. Apple also contends the inventors concealed the existence of Yale Technical Report 1054 entitled, "The Lifestreams Software Architecture." DX0794 at 0002. Although Apple does not have a copy of TR-1054, as it was not produced in this case, Apple contends it was likely material prior art.
Apple summarily argues that the Piles reference is "highly" material without providing support for this conclusion, and Apple failed to present any evidence of the
Accordingly, the Court
While a jury's collective wisdom should always be honored as to disputed factual issues, it is equally true that the party with the burden of proof must present sufficient evidence as to each and every element required in its cause of action. This is often a painstaking task — especially in a complex patent case — but it is important. Perhaps it is even more important in patent cases where the jury must consider multilayered claims and interconnected arguments.
The jury often relies on the representations of parties, who bear the burden of being accurate and complete and living up to the representations they make to the jury. No matter how attractive a party paints the facade of its case, it is worthless without the requisite foundational support. It is the Court's job to inspect that foundation, and where it has not been properly laid under the law, to set aside the verdict to protect the reliability of our jury system. In this case, Mirror Worlds may have painted an appealing picture for the jury, but it failed to lay a solid foundation sufficient to support important elements it was required to establish under the law. Accordingly, the Court rejects Mirror Worlds' case as to infringement and damages, while affirming it as to validity and inequitable conduct.
Upon consideration of the parties' arguments and the evidence of record established at trial, the Court
10/1/10 TT at 13:4-13.
10/1/10 TT at 23:15-22.
