Appeal Nos. 2013-1479, -1525 UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT 01 COMMUNIQUE LABORATORY, INC. Plaintiff-Appellant, v. LOGMEIN, INC. Defendant-Cross Appellant. Appeals from the United States District Court for the Eastern District of Virginia in Case No. 1:10-cv-01007, Judge Claude M. Hilton BRIEF OF PLAINTIFF-APPELLANT 01 COMMUNIQUE LABORATORY, INC. Thomas H. Shunk John P. Corrado BAKER & HOSTETLER LLP Kenneth J. Sheehan PNC Building, Suite 3200 A. Neal Seth 1900 E. 9th Street Charles C. Carson Cleveland, OH 44114 BAKER & HOSTETLER LLP Washington Square, Suite 1100 1050 Connecticut Avenue, NW Washington, DC 20036 CERTIFICATE OF INTEREST Counsel for appellant 01 Communique Laboratory, Inc., certifies the following: 1. The full name of every party or amicus represented by me is: 01 Communique Laboratory, Inc. 2. The name of the real party in interest (if the party named in the caption is not the real party in interest) represented by me is: 01 Communique Laboratory, Inc. 3. All parent corporations and any publicly held companies that own 10 percent or more of the stock of the party or amicus curiae represented by me are: None. 4. The names of all law firms and the partners or associates that appeared for the party or amicus now represented by me in the district court or agency or are expected to appear in this court are: Bukola T. Aina, Loura Alaverdi, Marc A. Antonetti, William C. Bergmann, Charles C. Carson, John P. Corrado, William T. DeVinney, Annette K. Kwok, Jae Bok Lee, Katherine L. McKnight, Christina J. Moser, Elizabeth A. Scully, A. Neal Seth, Kenneth J. Sheehan, Thomas H. Shunk, Adam J. Smith, and Thomas D. Warren, all at the relevant time of Baker & Hostetler LLP August 26, 2013 /s/ Thomas H. Shunk Thomas H. Shunk TABLE OF CONTENTS CERTIFICATE OF INTEREST ................................................................................ i TABLE OF AUTHORITIES ................................................................................... iv STATEMENT OF RELATED CASES ..................................................................... 1 JURISDICTIONAL STATEMENT .......................................................................... 2 PRELIMINARY STATEMENT ............................................................................... 2 STATEMENT OF THE ISSUES............................................................................... 4 STATEMENT OF THE CASE .................................................................................. 5 STATEMENT OF THE FACTS ............................................................................... 6 I. Claim 24 of the `479 Patent ............................................................................. 6 II. LogMeIn’s Previous, Unsuccessful Summary Judgment Theory ................... 8 III. LogMeIn Presented No Viable Theory Of Non-Infringement On Remand .... 9 A. Dr. Grimshaw Testified That The LogMeIn System Infringed Claim 24, Refuting LogMeIn’s Three Non-Infringement Theories ................... 10 B. LogMeIn’s Witnesses Agreed With Dr. Grimshaw Regarding The Details Of The LogMeIn System ............................................................. 12 1. LogMeIn’s Witnesses Agreed With Dr. Grimshaw On The Technical Details ...................................................................................................... 12 2. LogMeIn’s Witnesses Found Non-Infringement By Using Improper Claim Term Definitions ........................................................................... 14 SUMMARY OF ARGUMENT ............................................................................... 18 ARGUMENT ........................................................................................................... 20 I. Standards Of Review ..................................................................................... 20 II. JMOL Of Infringement Should Have Been Granted Because All Of LogMeIn’s Evidence Was Directed To A Claim Construction Rejected By This Court ................................................................................................. 21 ii A. In Communique I, This Court Construed The Term “Location Facility” And Rejected LogMeIn's Theory Of Non-Infringement .......... 22 B. On Remand, LogMeIn Argued A Theory Of Non-Infringement In Direct Conflict With Communique I ....................................................... 25 1. Ignoring This Court’s Ruling That The Location Facility Could Be Distributed, LogMeIn Argued That Its System Does Not Have “One Program” That “Itself” Performs All Four Functions ............................. 26 2. Ignoring This Court’s Ruling That “A” Means “One Or More,” LogMeIn Argued That Its System Does Not Have A Single Fixed “Static IP Address”................................................................................................... 32 3. Ignoring This Court’s Ruling Regarding The Ganger Declaration And Refusing To Apply The Ordinary Meaning, LogMeIn Argued That Its Servers Do Not “Create” A Communication Channel Or Session .......... 34 III. In The Alternative, The Court Should Grant A New Trial On Infringement ................................................................................................... 38 A. LogMeIn Knowingly Subverted This Court’s Opinion In Communique I ......................................................................................... 39 B. The District Court Erred In Refusing To Charge The Jury That “A” Means “One Or More”............................................................................. 41 C. LogMeIn Improperly Suggested To The Jury That Its Own Patents Supported A Finding Of Non-Infringement ............................................ 43 CONCLUSION ........................................................................................................ 46 CERTIFICATE OF SERVICE CERTIFICATE OF COMPLIANCE ADDENDUM iii TABLE OF AUTHORITIES Cases 01 Communique Lab., Inc. v. LogMeIn, Inc., 687 F.3d 1292 (Fed. Cir. 2012) ..........................................................................1, 5 Amazon.com v. Barnesandnoble.com, 239 F.3d 1343, 1351 (Fed. Cir. 2001) .................................................................. 30 Blanchard v. Putnam, 75 U.S. 420 (1869) ............................................................................................... 45 Bristol Steel & Iron Works, Inc. v. Bethlehem Steel Corp., 41 F.3d 182 (4th Cir. 1994).................................................................................. 38 Cardiac Pacemakers, Inc. v. St. Jude Med., Inc., 576 F.3d 1348 (Fed. Cir. 2009) ............................................................................ 21 Catalina Mktg. Int'l v. Coolsavings.com, Inc., 289 F.3d 801 (Fed. Cir. 2002) .............................................................................. 33 Cline v. Wal-Mart Stores, Inc., 144 F.3d 294 (4th Cir. 1998)................................................................................ 39 Cordis Corp. v. Boston Scientific Corp., 561 F.3d 1319 (Fed. Cir. 2009) ...................................................................... 40-41 Cytologix Corp. v. Ventana Med. Sys., Inc., 424 F.3d 1168 (Fed. Cir. 2005) ...................................................................... 39-41 Ecolab Inc. v. Paraclipse, Inc., 285 F.3d 1362 (Fed. Cir. 2002) ............................................................................ 42 E-Pass Techs., Inc. v. 3Com Corp., 473 F.3d 1213 (Fed. Cir. 2007) ............................................................................ 40 Frank’s Casting Crew v. PMR Techs., Ltd., 292 F.3d 1363 (Fed. Cir. 2002) ............................................................................ 21 Glaros v. H.H. Robertson Co., 797 F.2d 1564 (Fed. Cir. 1986) ...................................................................... 45-46 Johnson v. MBNA Am. Bank, NA, 357 F.3d 426 (4th Cir. 2004)................................................................................ 20 Kinetic Concepts, Inc. v. Blue Sky Med. Group, Inc., 554 F.3d 1010 (Fed. Cir. 2009) ............................................................................ 41 iv Laitram Corp. v. NEC Corp., 115 F.3d 947 (Fed. Cir. 1997) ........................................................................ 20-21 Sibbald v. United States, 37 U.S. 488 (1838) ............................................................................................... 21 Sundance, Inc. v. Demonte Fabricating Ltd., 550 F.3d 1356 (Fed. Cir. 2008) ............................................................................ 39 United States v. Perry, 335 F.3d 316 (4th Cir. 2003)................................................................................ 20 Vaupel Textilmaschinen KG v. Meccanica Euro Italia SPA, 944 F.2d 870 (Fed. Cir. 1991) .............................................................................. 46 Verizon Servs. Corp. v. Cox Fibernet Va., Inc., 602 F.3d 1325 (Fed. Cir. 2010) ............................................................................ 20 Statutes 28 U.S.C. § 1295(a) ................................................................................................... 2 28 U.S.C. § 1338(a) ................................................................................................... 2 Rules Fed. R. Evid. 403 ............................................................................................... 45-46 Fed. R. Civ. P. 50(a)(1) ............................................................................................ 21 v STATEMENT OF RELATED CASES A previous appeal in this action resulted in the July 31, 2012, Opinion of this Court, 01 Communique Lab., Inc. v. LogMeIn, Inc., case no. 2011-1402, 687 F.3d 1292 (Fed. Cir. 2012) (Joint Appendix pages A5101-15, bound with this Brief) (hereinafter “Communique I”). In Communique I, this Court construed the claim term “location facility,” vacated the district court’s grant of summary judgment of no infringement, and remanded the matter. 01 Communique Laboratory, Inc., v. Citrix Systems, Inc., and Citrix Online, LLC, Case No. 1:06-CV-0253 (Lioi, J.), is pending in the U.S. District Court for the Northern District of Ohio. In that action, Plaintiff-Appellant herein, 01 Communique Laboratory, Inc. (“01 Communique”), asserts infringement of the same patent that is at issue in this action, U.S. Patent No. 6,928,479 (“the `479 Patent”), against an unrelated defendant. The Ohio case is stayed pending an inter- partes re-examination of the `479 Patent before the U.S. PTO (Serial No. 95/001,018) filed by the defendants in that litigation. That reexamination proceeding is awaiting a final decision by the Patent Trial and Appeal Board of an appeal by Citrix of the examiner’s confirmation of the claims of the `479 patent. 01 Communique expresses no view as to whether the Ohio case will be affected by this Court’s decision in this appeal. 1 JURISDICTIONAL STATEMENT The district court had subject matter jurisdiction. 28 U.S.C. § 1338(a). After a jury trial on the issues of infringement and validity, the district court entered judgment on April 2, 2013. (A1301). 01 Communique filed a motion for judgment as a matter of law (“JMOL”), for new trial, and for entry of judgment pursuant to Fed. R. Civ. P. 52 on April 23, 2013 (A25201-41), which the district court denied in a Memorandum Opinion of June 25, 2013 (A1201-06), and accompanying Order (A1101-2). 01 Communique timely filed a notice of appeal on June 26, 2013. (A1065, entry 524). This Court has jurisdiction. 28 U.S.C. § 1295(a). Defendant-Cross Appellant LogMeIn, Inc. (“LogMeIn”) filed a cross- appeal, Case No. 2013-1525, which has been consolidated with this appeal. PRELIMINARY STATEMENT The `479 Patent claims a system, method, and computer program that enables one computer to access another computer remotely via the Internet. Plaintiff-Appellant 01 Communique and Defendant-Cross Appellant LogMeIn operate competing systems that permit their users to safely, economically, and easily access a home personal computer from a remote computer. Claim 24 of the `479 Patent is at issue in this case. In a previous proceeding, the district court had granted summary judgment of no infringement to LogMeIn. When that summary judgment was appealed in 2 Communique I, this Court vacated and remanded, providing an explicit definition for the claim term “location facility.” This Court’s mandated definition of “location facility” permits the location facility software to be subdivided into several programs, and to be distributed over several computers. This Court also held that the Declaration of Dr. Gregory Ganger (submitted during reexamination of the patent; the “Ganger Declaration”) did not limit the scope of the `479 Patent’s claims. On remand, the technical details of the LogMeIn servers were not in dispute, and LogMeIn had no viable, non-infringement theory given this Court’s Communique I Opinion. Accordingly, LogMeIn ignored this Court’s mandated definitions, and argued the same theory that this Court had repudiated in Communique I. LogMeIn’s technical expert testified that the LogMeIn servers were not a “location facility” because the accused software consisted of “different programs” rather than a single program that performed the requisite functions. (A13796 ln 23 – A13797 ln 3). He testified that the LogMeIn Servers did not have a “static IP address” because “the patent requires a [meaning “only one”] fixed static IP address. It says so.” (A13807 lns 15-16). And he testified that the LogMeIn Servers could not be said to “create” the required communication channels and sessions because of his own personal interpretation of “a representation made by 3 Dr. Ganger to the Patent Office in order to get the patent through and issued” – the exact same representation this Court had said did not limit the claims. (A13803 ln 22 – A13804 ln 3). All of the evidence introduced by LogMeIn to support its claim of no infringement was directed to the old, discredited theory. No testimony or other evidence consistent with this Court’s mandated claim construction supported a finding of no infringement. It was error, therefore, to give this case to the jury rather than grant JMOL. STATEMENT OF THE ISSUES 1. Should the district court have granted JMOL of infringement, given that there was no factual dispute over the functioning of the accused system and all the evidence consistent with this Court’s previously-mandated claim construction of “location facility” supported a finding of infringement? 2. Alternatively, should the district court have granted a new trial on the issue of infringement, given that (1) LogMeIn presented fact and expert witness testimony on claim term meaning contrary to the construction of those terms mandated by this Court; (2) the district court refused to charge the jury with a construction of a material claim term in dispute; and (3) LogMeIn improperly asserted that it could not infringe because it had its own patents covering the accused system? 4
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