intrinsic vs extrinsic evidence
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Context Is Key in Claim Construction

The US Court of Appeals for the Federal Circuit reiterated that intrinsic evidence trumps extrinsic evidence in determining the meaning of claim terms. Sequoia Technology, LLC v. Dell, Inc. et al., Case Nos. 21-2263; -2264; -2265; -2266 (Fed. Cir. Apr. 12, 2023) (Stoll, Lourie, Dyk, JJ.)

Sequoia Technology owns a patent directed to data storage methods involving storing the same data across multiple physical disk drives to make up a virtual disk drive. Sequoia asserted the patent against several companies, all based on a product sold by Red Hat. During litigation, the parties disputed the construction of the terms “computer-readable recording medium,” “disk partition” and “logical volume.” Related to the latter two claim construction issues, the parties construed the term “used or not used” in the context of an extent’s usage in an “extent allocation table.”

The district court adopted Red Hat’s construction of “computer-readable recording medium” to include transitory media (i.e., signals or waves). The district court found no clear language in the specification that excluded transitory media and found Red Hat’s extrinsic evidence to be persuasive, “particularly given the lack of any substantive rebuttal from Sequoia’s expert.” For “disk partition” and “logical volume,” the district court agreed with Red Hat and construed “disk partition” to mean a “section of a disk that is a minimum unit of a logical volume” and “logical volume” to mean an “extensible union of more than one disk partition, the size of which is resized in disk partition units.” These constructions require that a logical volume is constructed by whole disk partitions, not subparts of disk partitions such as extents. The district court also construed the phrase “used or not used” in the limitation “extent allocation table for indicating whether each extent in the disk partition is used or not used,” adopting Red Hat’s construction that “used or not used” means that an extent “is or is not storing information.”

Following claim construction, the parties stipulated that under the district court’s claim construction of “logical volume” and “disk partition,” the accused products did not infringe the asserted claims. The parties also stipulated that under the district court’s construction of “computer-readable recording medium,” certain claims were subject matter ineligible under 35 U.S.C. § 101 as including transitory media. Sequoia appealed.

The Federal Circuit concluded that the district court erred in construing “computer-readable recording medium.” Starting with the claim language, the Court noted that the claim recited a “computer-readable recording medium storing instructions” and not simply a “computer-readable medium.” The Court reasoned that an ordinarily skilled artisan would understand transitory signals to be incompatible with the claimed invention because such fleeting signals would not persist for sufficient time to store instructions. Turning to the specification, the Court explained that although the specification did use open-ended “including” language to describe a computer-readable medium, the relevant portion of the specification defined computer-readable media as “including compact disc read only memory (CDROM), random access memory (RAM), floppy disk, hard disk, and magneto-optical disk,” all of which are non-transient [...]

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Use of Negative Claim Construction is Unsound

The US Court of Appeals for the Federal Circuit vacated a district court’s noninfringement decision that was based on a negative claim construction and remanded with instructions for the district court to determine what affirmative claim construction should be adopted. Sound View Innovations, LLC v. Hulu, LLC, Case No. 21-1998 (Fed. Cir. May 11, 2022) (Prost, Mayer, Taranto, JJ.)

Sound View owns a now-expired patent directed to streaming multimedia information over public networks. Sound View asserted the patent against Hulu based on Hulu’s use of a central content server that’s connected to end users through intermediate edge servers. The asserted claim recites downloading streaming content from a buffer in a helper server to an end user while concurrently retrieving more streaming content from a content server. During claim construction, the district court construed the downloading/retrieving limitation to require using the same buffer, as opposed to two different buffers.

With that claim construction in hand, Hulu sought summary judgment that, in the edge servers of its content delivery networks, no single buffer hosts both the video portion downloaded to the client and the retrieved additional portion. In response, Sound View argued that a factual dispute remained about whether “caches” in the edge servers met the concurrency limitation as construed. The district court held, however, that a “cache” cannot be a “buffer,” and on that basis granted summary judgment of noninfringement. The district court also excluded Sound View’s expert testimony on reasonable royalty damages. Sound View appealed.

The Federal Circuit first reviewed construction of the downloading/retrieving limitation, which was reviewed de novo since the district court relied on only the intrinsic evidence. The Court first analyzed the claim, noting that its wording “reasonably suggests allocating a single buffer” and did not suggest additional buffers. When reviewing the specification, the Court found that it was not inconsistent with reading the claims requiring that the same buffer be used for both downloading and retrieving and observed that it disclosed an embodiment with only one buffer. The Court also reviewed the prosecution history, noting that the applicants added the limitation at issue to distinguish prior art and specifically emphasized the “concurrent[]” limitation. Thus, the Court affirmed the district court’s construction of the downloading/receiving limitation.

Turning to the noninfringement finding, the Federal Circuit rejected the district court’s finding that a “cache” was a different, distinct physical component when compared to a “buffer.” In particular, the Court took issue with this interpretation because it was a negative construction, and the district court never provided an affirmative construction to be used in the infringement analysis. The Court also found that the intrinsic evidence did not support determining that “buffers” and “caches” were mutually exclusive. The Court thus reversed and remanded for the district court to determine an affirmative construction of “buffer.”

The Federal Circuit next addressed the district court’s decision to exclude evidence from Sound View’s expert on reasonable royalty damages. First, the Court determined that the expert could not rely on a study performed in Sydney, Australia [...]

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