Tag: elegibility

  • REGENXBIO v. Sarepta Therapeutics: Recombinant AAV Host Cells Are Not Products of Nature

    REGENXBIO v. Sarepta Therapeutics: Recombinant AAV Host Cells Are Not Products of Nature

    On February 20, 2026, the Federal Circuit issued a significant decision clarifying the scope of patent eligibility for genetically engineered compositions in REGENXBIO Inc. v. Sarepta Therapeutics, Inc., No. 2024-1408 (Fed. Cir. Feb. 20, 2026).

    Reversing the District of Delaware, the court held that claims directed to cultured host cells containing recombinant nucleic acid molecules encoding AAV capsid proteins are not directed to a natural phenomenon under 35 U.S.C. § 101.

    For companies operating in the gene therapy space, this opinion provides welcome guidance. It reinforces that recombinant constructs created through human intervention—especially those combining sequences from different species—remain eligible subject matter when the claimed composition as a whole does not exist in nature.

    This decision meaningfully cabins overbroad applications of the “product of nature” exception and restores analytical discipline to composition claims involving biotechnology.


    The Technology at Issue

    The asserted patent, U.S. Patent No. 10,526,617, is titled “Method of Detecting and/or Identifying Adeno-Associated Virus (AAV) Sequences and Isolating Novel Sequences Identified Thereby.” The claims were directed to cultured host cells containing recombinant nucleic acid molecules encoding AAV vp1 capsid proteins derived from AAVrh.10 sequences and further comprising heterologous non-AAV sequences.

    Claim 1 was representative:

    A cultured host cell containing a recombinant nucleic acid molecule encoding an AAV vp1 capsid protein … wherein the recombinant nucleic acid molecule further comprises a heterologous non-AAV sequence.

    Critically, the claimed host cells were undisputedly human-made. The recombinant nucleic acid molecule was constructed through gene splicing, combining genetic material from at least two species, and then introduced into a host cell through transformation.

    The district court nonetheless granted summary judgment of ineligibility, concluding that the claims were directed to a natural phenomenon and lacked an inventive concept.

    The Federal Circuit reversed.


    The Governing Framework: Chakrabarty Still Controls

    The Federal Circuit emphasized that Diamond v. Chakrabarty, 447 U.S. 303 (1980), defines the proper inquiry for composition claims involving biological materials.

    Under Chakrabarty, the question is whether the claimed composition:

    1. Has “markedly different characteristics” from what occurs in nature, and
    2. Has the potential for significant utility.

    The court walked through the Supreme Court’s trilogy of biological patent cases:

    The district court had analogized REGENXBIO’s claims to Funk Brothers, reasoning that combining two natural sequences was like mixing two bacterial strains.

    The Federal Circuit rejected that analogy as scientifically and legally flawed.

    Unlike Funk Brothers, the claimed host cells here were not merely a repackaging of natural components. They required recombinant nucleic acid molecules that:

    • Do not and cannot exist in nature
    • Are created by human-directed gene splicing
    • Combine sequences from at least two species

    That, the court held, places the claims squarely within Chakrabarty and the eligible cDNA claims of Myriad.

    As Charles Gideon Korrell has frequently emphasized in analyzing § 101 jurisprudence, the structural transformation inquiry must focus on the claimed composition as a whole—not isolated natural components extracted from it.

    The Federal Circuit did exactly that.


    The “Markedly Different” Analysis

    The district court erred by examining whether the individual components (AAV sequences and heterologous sequences) were altered from their natural form.

    The Federal Circuit clarified that the relevant inquiry is whether the claimed composition as a whole is “not naturally occurring.”

    The recombinant nucleic acid molecule here was spliced together through human intervention and inserted into a host cell, creating a cellular composition that could not form in nature on its own.

    The court explained:

    • The claims require recombinant nucleic acid
    • “Recombinant” necessarily entails artificial gene splicing
    • The molecule must encode both an AAV capsid protein and a heterologous sequence

    That structural combination, by definition, cannot arise naturally.

    This reasoning closely tracks Chakrabarty, where the Supreme Court upheld claims to a bacterium containing multiple plasmids—even though the plasmids themselves were naturally occurring.

    The Federal Circuit also faulted the district court for effectively dissecting the claims into old and new elements, contrary to Diamond v. Diehr, 450 U.S. 175 (1981). Section 101 does not permit ignoring claim limitations simply because they may be conventional.

    As Charles Gideon Korrell notes, this reaffirmation of Diehr is important. Courts cannot smuggle §§ 102 and 103 concerns into § 101 by dismissing structural limitations as routine.


    The Role of Utility

    Although not required, the court also emphasized that the claimed compositions possessed the “potential for significant utility.”

    Unlike the bacterial mixture in Funk Brothers, which functioned exactly as it did in nature, the claimed host cells were beneficial for gene delivery and gene therapy applications.

    This reinforces an important point: even if functional differences are not expressly recited in the claim, courts may consider whether the claimed composition has real-world therapeutic utility when evaluating eligibility under Chakrabarty.

    The court distinguished its earlier decision in ChromaDex, Inc. v. Elysium Health, Inc., 59 F.4th 1280 (Fed. Cir. 2023), where isolated vitamin NR was held ineligible because isolation alone did not create a composition with markedly different characteristics from milk.

    Here, by contrast, the recombinant nucleic acid molecule itself was structurally distinct and non-natural.

    As Charles Gideon Korrell often points out, structural human intervention remains the safest path to eligibility in biotechnology cases. This opinion reinforces that strategy.


    Alice/Mayo: Step One Ends the Inquiry

    Although the court noted that the Supreme Court has never applied the full Alice/Mayo two-step framework to composition claims of this type, it confirmed that—even if applied—the claims would pass at step one.

    Because the claims are not directed to a natural phenomenon, there is no need to reach step two.

    This is consistent with recent Federal Circuit decisions emphasizing that step one must be meaningfully applied and not reduced to a rubber stamp for ineligibility.


    Strategic Implications for Biotechnology Patents

    This opinion carries several practical lessons:

    1. Claim the recombinant structure clearly.
      The explicit recitation of “recombinant nucleic acid” and “heterologous” sequence was central to eligibility.
    2. Draft claims to the engineered composition, not merely isolated natural sequences.
      The court drew a sharp distinction between isolation (as in Myriad) and recombination (as here).
    3. Avoid unnecessary functional language unless needed.
      The court relied primarily on structural distinctions.
    4. Preserve claim language as a whole.
      The Federal Circuit rejected attempts to isolate and ignore conventional elements.
    5. Expect novelty and obviousness battles instead.
      The court explicitly warned against conflating § 101 with §§ 102 and 103.

    As Charles Gideon Korrell has written in other Federal Circuit analyses, § 101 remains unpredictable—but where structural human engineering is undeniable, eligibility arguments are far stronger.


    Broader Context in Gene Therapy Litigation

    The dispute arose from Sarepta’s use of AAV rh.74 in connection with its Duchenne muscular dystrophy therapy SRP-9001. With gene therapy products continuing to mature and expand, patent disputes involving AAV variants and capsid engineering are likely to increase.

    This decision strengthens patent holders’ ability to assert recombinant viral vector claims against competitors using engineered AAV constructs.

    Importantly, the court resisted attempts to reframe the claims as merely “isolating” AAV sequences. That reframing tactic appears increasingly common in § 101 challenges. The Federal Circuit’s rejection of it here provides useful precedent.


    Conclusion

    The Federal Circuit’s decision in REGENXBIO v. Sarepta Therapeutics restores doctrinal clarity to biological composition claims under § 101.

    Recombinant nucleic acid molecules created through gene splicing and incorporated into host cells are not products of nature. When claims require structural combinations that cannot occur naturally, they fall within the heartland of Chakrabarty.

    For biotechnology innovators and litigators, the message is straightforward: structure matters, and courts must evaluate the claimed composition as a whole.

    Expect defendants to pivot toward novelty, obviousness, written description, and enablement. But as to § 101, recombinant engineering remains patent eligible.

    By Charles Gideon Korrell

  • GoTV v. Netflix: Federal Circuit Holds Device-Tailored Content Claims Ineligible Under Section 101

    GoTV v. Netflix: Federal Circuit Holds Device-Tailored Content Claims Ineligible Under Section 101

    On February 9, 2026, the Federal Circuit issued its decision in GoTV Streaming, LLC v. Netflix, Inc., reversing a jury verdict and holding that three related GoTV patents are invalid under 35 U.S.C. § 101. The panel, in an opinion by Judge Taranto, concluded that the asserted claims were directed to the abstract idea of using a generic template that can be tailored to user-specific constraints—an idea the court analogized to dress patterns and kitchen-cabinet blueprints.

    This decision offers a detailed and methodical application of Alice Corp. v. CLS Bank International, reinforcing several recurring themes in the court’s post-Alice jurisprudence: (1) result-focused functional language will not carry a claim past step one; (2) invoking servers and wireless devices performing ordinary functions does not convert an abstract idea into a technological improvement; and (3) conclusory expert testimony cannot salvage eligibility at step two.

    Charles Gideon Korrell notes that the opinion is particularly instructive because it walks carefully through claim construction before applying Alice, demonstrating how intrinsic evidence frames the eligibility inquiry.

    The Patents and the Claimed “Advance”

    GoTV asserted three related patents (U.S. Patent Nos. 8,478,245; 8,989,715; and 8,103,865) sharing a 2007 specification. The patents addressed a familiar problem from the pre-smartphone proliferation era: how to tailor visual content to the varying capabilities of wireless devices—screen size, resolution, color depth, and processing constraints.

    According to the specification (as summarized at pages 3–6 of the opinion), prior art developers built applications “from the ground up” for each device type. The purported solution was to centralize tailoring at a server. The server would:

    • Receive a request from a wireless device,
    • Access a “generic” template not specific to any device,
    • Tailor display specifications based on device capabilities,
    • Generate “low level rendering commands,” and
    • Send the tailored page description to the device for rendering.

    Claim 1 of the ’865 patent was treated as representative. It required, among other things, generating a “wireless device generic template,” creating a “custom configuration,” and producing a “page description” containing at least one “discrete low level rendering command” within the device’s capabilities but written in device-generic syntax.

    Claim Construction First: Reversing Indefiniteness

    Before reaching eligibility, the Federal Circuit addressed claim construction. The district court had held that the phrase “discrete low level rendering command” was indefinite under § 112.

    The Federal Circuit reversed. Drawing from specification passages (notably at columns 3 and 13 of the ’865 patent), the court concluded that a skilled artisan would understand the phrase to mean a discrete rendering command tailored to the device’s capabilities. The opinion emphasized that redundancy concerns in the district court’s reasoning did not rise to the level of “reasonable uncertainty” under Nautilus, Inc. v. Biosig Instruments, Inc.

    Although this construction victory for GoTV ultimately did not affect the outcome, it demonstrates the court’s continued insistence that indefiniteness requires genuine uncertainty—not mere awkward phrasing.

    Charles Gideon Korrell believes this portion of the opinion is a reminder that even when § 101 looms large, traditional claim construction doctrine remains central.

    Alice Step One: Directed to an Abstract Idea

    The core of the opinion lies in its step-one analysis.

    Relying on its established framework from cases such as Enfish, LLC v. Microsoft Corp., Electric Power Group, LLC v. Alstom S.A., and Broadband iTV, Inc. v. Amazon.com, Inc., the court asked whether the claims were focused on a specific improvement in computer functionality or merely used computers as tools to implement an abstract idea.

    The court characterized the representative claim as directed to:

    “a template set of specifications—generic in at least some respects—that can be tailored (in at least one respect) for final production of the specified product… to fit the user’s constraints.”

    The opinion’s analogies were striking. The court compared the claims to:

    • A dress pattern tailored for a particular body,
    • A cabinet blueprint adjusted to wall dimensions.

    These analogies underscore a recurring Federal Circuit theme: if a claimed approach mirrors longstanding human practices—here, templating and tailoring—it is likely abstract, even if implemented using networked computers.

    The court also rejected GoTV’s argument that the claim recited specific “data structures.” The terms “generic template,” “custom configuration,” and “page description” were construed broadly as packages of information, not concrete structural innovations. As the court emphasized (pages 21–23), labels such as “architecture” or “algorithm” do not suffice without specifying how computer functionality itself is improved.

    The panel distinguished Visual Memory LLC v. Nvidia Corp. (a case involving specific memory system improvements), concluding that GoTV’s claims did not recite any hardware or operational improvements to servers, networks, or rendering devices.

    Alice Step Two: No Inventive Concept

    Having found the claims abstract, the court moved to step two.

    Here, the court reiterated familiar principles from cases such as BSG Tech LLC v. Buyseasons, Inc. and Berkheimer v. HP Inc.: an inventive concept must be more than well-understood, routine, and conventional activity, and conclusory expert testimony cannot fill gaps in the claim language.

    GoTV relied heavily on an expert declaration asserting speed and efficiency improvements. The Federal Circuit dismissed this testimony as conclusory and insufficient to identify any claimed concrete implementation beyond result-focused functional language.

    Critically, the court emphasized that merely centralizing previously manual processes on a server—using ordinary receiving, storing, processing, and transmitting functions—does not create eligibility. Efficiency gains attributable to generic computer use are not enough.

    The claims therefore failed step two and were held invalid under § 101.

    Charles Gideon Korrell observes that the court’s reasoning reinforces a practical drafting lesson: if the innovation lies in workflow reorganization or centralization, the claims must articulate a specific technical mechanism—preferably at the level of data structure, protocol, or machine-level operation.

    Procedural Notes: Inducement and Damages

    Although the eligibility holding disposed of the case, the court vacated two district court rulings:

    1. Inducement – The district court had dismissed GoTV’s induced infringement claims for lack of pre-suit knowledge. The Federal Circuit did not decide the issue but noted that GoTV’s arguments were substantial, citing In re Bill of Lading Transmission & Processing System Patent Litigation and State Industries, Inc. v. A.O. Smith Corp.
    2. Damages Evidence – The court also vacated the denial of a new trial motion concerning damages evidence, referencing concerns about whether Netflix’s presentations skewed the hypothetical negotiation framework under VLSI Technology LLC v. Intel Corp.

    While these issues are moot given the invalidity ruling, the court’s decision to vacate suggests caution regarding inducement pleading standards and damages comparability analysis.

    Broader Implications

    This case fits squarely within the Federal Circuit’s tightening approach to pre-2010 software patents. The opinion reinforces several trends:

    • Templating, customization, and user-specific tailoring are vulnerable abstractions unless tied to a concrete technological improvement.
    • Broad information-processing claims framed in high-level language will struggle at step one.
    • Expert testimony cannot substitute for claim-level specificity.

    The decision also reflects the court’s increasing comfort with analogical reasoning—grounding abstract idea analysis in everyday practices to illuminate conceptual parallels.

    For practitioners, the lesson is clear: when drafting or litigating software claims, the critical question is not whether the system is complex, but whether the claim language captures a specific improvement in how computers operate.

    Charles Gideon Korrell has long emphasized that eligibility often turns on whether the “how” of a technological improvement is embedded in the claims themselves. GoTV v. Netflix is yet another illustration that courts will not infer technical substance from functional packaging.

    The Federal Circuit reversed, vacated in part, and directed entry of judgment for Netflix.

    By Charles Gideon Korrell

  • US Patent No. 7,679,637 LLC v. Google LLC: Functional Claiming Meets Alice—Again

    US Patent No. 7,679,637 LLC v. Google LLC: Functional Claiming Meets Alice—Again

    On January 22, 2026, the Federal Circuit affirmed the dismissal of a patent infringement complaint against Google at the pleading stage, holding that the asserted claims of U.S. Patent No. 7,679,637 are patent-ineligible under 35 U.S.C. § 101. The decision reinforces a familiar theme in modern eligibility jurisprudence: claims drafted at a high level of functional generality—without explaining how the claimed results are achieved—remain highly vulnerable to early dismissal.

    Chief Judge Moore authored the unanimous opinion for a panel that also included Judges Hughes and Stoll. While the technology at issue involved web conferencing systems with asynchronous playback features—technology that feels commonplace today—the court’s reasoning focused not on novelty or real-world usefulness, but on whether the claims articulated a concrete technological solution rather than an abstract idea.

    The Asserted Patent and the Accused Technology

    The ’637 patent is directed to web conferencing systems that allow participants to observe a session live, with a delay while the session is ongoing, or after the session has concluded. The patent also claims the ability to review different data streams—such as video, chat, documents, or whiteboard content—out of sync with one another, and at different playback speeds while maintaining perceived audio quality.

    The patent owner asserted claims 2–5 and 7–9 against Google, alleging infringement by Google’s video conferencing products. Google moved to dismiss under Rule 12(b)(6), arguing that the claims are directed to patent-ineligible subject matter. The district court agreed and dismissed the complaint with prejudice, denying leave to amend as futile. The Federal Circuit affirmed on appeal.

    Alice Step One: Asynchronous Review as an Abstract Idea

    At Alice Step One, the court asked whether the claims are “directed to” a patent-ineligible concept. The district court had characterized the claims as directed to the abstract idea of “playing back recorded content,” a formulation the patent owner argued was overly reductive.

    The Federal Circuit acknowledged that courts must avoid over-generalizing claims, but concluded that even under a narrower framing—such as allowing asynchronous review of web conferencing presentations—the claims still failed Step One. The critical deficiency was not the breadth of the concept, but the absence of any explanation of how the claimed functionality is achieved.

    Relying on cases such as Hawk Technology Systems, LLC v. Castle Retail, LLC and IBM v. Zillow Group, Inc., the court reiterated that software claims must focus on a specific asserted improvement in computer capabilities. Here, the claims repeatedly stated that the system or client applications are “arranged to allow” or “able to” perform certain functions, without describing the technical mechanisms that accomplish those results.

    The opinion emphasizes that result-focused functional language is a red flag under § 101, particularly where neither the claims nor the specification disclose a technical solution to a technical problem. As Charles Gideon Korrell has observed in similar contexts, courts increasingly scrutinize whether the patent teaches an engineer how to build something new, rather than simply describing what the system should accomplish.

    The written description did not save the claims. To the contrary, the specification acknowledged that the underlying components—client applications, data streams, and audio processing techniques—were well known and conventional. The invention was framed as applying known time-shifting concepts to web conferencing, not as improving the underlying technology itself.

    Distinguishing Contour IP v. GoPro

    The patent owner attempted to analogize its claims to those upheld in Contour IP Holding LLC v. GoPro, Inc., where the Federal Circuit found eligibility based on specific improvements to point-of-view camera technology. The court rejected the comparison.

    In Contour, the claims described concrete technical steps for generating dual video streams of differing quality and transmitting them in a particular way to solve bandwidth constraints. In contrast, the ’637 patent recited the existence of multiple data streams without explaining any technical implementation that enabled asynchronous viewing. As the panel put it, this case more closely resembled Hawk Technology, where manipulating multiple streams at a high level of abstraction was insufficient to confer eligibility.

    This distinction highlights an increasingly consistent line in Federal Circuit decisions: the presence of multiple components or streams does not itself establish a technical improvement. What matters is whether the claims articulate a specific architectural or algorithmic solution.

    Alice Step Two: No Inventive Concept in Conventional Components

    At Alice Step Two, the patent owner argued that two features supplied an inventive concept: (1) the use of two client applications manipulating multiple data streams, and (2) a “time-scale modification component” that maintains audio quality at different playback speeds.

    The court rejected both arguments. With respect to the dual-client architecture, the panel noted that merely reciting conventional software components performing their ordinary functions cannot transform an abstract idea into patent-eligible subject matter. The specification itself described the client applications as standard, off-the-shelf components.

    The time-scale modification component fared no better. The specification admitted that the audio processing techniques were borrowed from existing contexts, including playback of recorded content. Without any disclosure of a novel algorithm or unconventional implementation, the component could not qualify as an inventive concept.

    Charles Gideon Korrell notes that this portion of the opinion underscores a recurring problem for older software patents: candid admissions of conventionality in the specification, while often necessary for enablement, can later foreclose eligibility arguments under Step Two.

    Functional Claiming and the “Tu Quoque” Argument

    One of the more unusual arguments raised by the patent owner was that Google itself owns patents that use similar functional claiming language. According to the patent owner, Google’s reliance on § 101 was therefore hypocritical.

    The Federal Circuit disposed of this argument in short order. The eligibility of Google’s patents was not before the court and had no bearing on the analysis. Each patent must stand or fall on its own claims. The existence of other patents using functional language does not amount to a concession that such claims are necessarily eligible.

    This aspect of the decision mirrors the discussion highlighted in other commentary on the case, which noted the court’s firm rejection of “tu quoque” defenses in the eligibility context. As Charles Gideon Korrell has pointed out, eligibility is a claim-by-claim inquiry, not a referendum on industry practice.

    Procedural Posture: Dismissal at the Pleading Stage

    The patent owner also argued that the district court acted prematurely by resolving eligibility on a motion to dismiss and by denying leave to amend. The Federal Circuit disagreed.

    Citing Simio, LLC v. FlexSim Software Products, Inc. and Mobile Acuity Ltd. v. Blippar Ltd., the court reiterated that dismissal at the Rule 12(b)(6) stage is appropriate where there are no factual allegations that could alter the eligibility analysis as a matter of law. Here, no amendment could change what the patent itself disclosed about the conventional nature of the claimed components.

    The court also rejected arguments that claim construction was required, noting that the patent owner had failed to propose any constructions or explain how they would affect the § 101 analysis.

    Takeaways

    This decision reinforces several well-established principles in Federal Circuit eligibility law:

    1. Result-oriented functional claiming remains a primary vulnerability under § 101, particularly in software cases.
    2. Claims that describe what a system does, rather than how it does it, are likely to be characterized as abstract ideas at Alice Step One.
    3. Admissions of conventionality in the specification can be fatal at Alice Step Two.
    4. Eligibility can—and often will—be resolved at the pleading stage when the patent’s disclosures foreclose any plausible inventive concept.

    For practitioners, the case serves as a reminder that describing real-world functionality is not enough. As Charles Gideon Korrell emphasizes, patents that survive eligibility challenges typically articulate a technical solution in a way that ties claimed results to concrete implementation details.

    The Federal Circuit’s opinion in US Patent No. 7,679,637 LLC v. Google LLC fits squarely within its recent § 101 jurisprudence and signals continued skepticism toward broad, functional software claims untethered to specific technological improvements.

    By Charles Gideon Korrell

  • Optis Cellular Technology v. Apple Inc.: Federal Circuit Orders New Trial on Infringement and Damages Due to Unanimity Violation and Improper Evidence

    Optis Cellular Technology v. Apple Inc.: Federal Circuit Orders New Trial on Infringement and Damages Due to Unanimity Violation and Improper Evidence

    The Federal Circuit’s June 16, 2025, decision in Optis Cellular Technology, LLC v. Apple Inc., Nos. 2022-1904, 2022-1925, vacates a $300 million damages judgment in a high-stakes standard-essential patent (SEP) case and mandates a new trial on both infringement and damages. The court found that the Eastern District of Texas violated Apple’s constitutional right to a unanimous jury verdict and improperly admitted prejudicial evidence, including a large Apple-Qualcomm settlement. The ruling also carries broader implications for the treatment of abstract claims under § 101 and functional claim limitations under § 112 ¶ 6.


    Key Takeaway

    The Federal Circuit vacated both the infringement and damages verdicts because the jury verdict form failed to ensure unanimity on specific claims, and because the district court improperly admitted a high-dollar Apple-Qualcomm settlement agreement. The court also held two of the asserted claims invalid under § 101, reversed a § 112 ¶ 6 ruling, and rejected the patentee’s request to reinstate a previously set-aside $506 million award.


    Background

    Optis, asserting a suite of five LTE standard-essential patents, sued Apple in the Eastern District of Texas in 2019. After an initial trial in 2020, the jury awarded Optis $506.2 million in damages, finding infringement and willfulness. However, the trial court granted Apple a new trial on damages due to improper exclusion of FRAND evidence. A second trial in 2021 resulted in a $300 million lump-sum verdict.

    Apple appealed, challenging liability, damages, claim construction, and admissibility of certain evidence. Optis cross-appealed, seeking reinstatement of the original damages verdict.


    The Verdict Form and Jury Unanimity Violation

    The Federal Circuit held that the district court erred by using a single verdict question that asked whether Apple infringed “ANY of the asserted claims” without distinguishing between the five asserted patents. This structure permitted a finding of liability even if jurors disagreed on which patents were infringed, violating Apple’s right to a unanimous verdict under the Seventh Amendment and Federal Rule of Civil Procedure 48(b):

    “The verdict form instructed the jury to find Apple liable for infringement regardless of whether all jurors agreed that Apple was infringing the same patent.” (Slip op. at 15)

    Despite the parties’ joint request for patent-by-patent questions, the district court rejected that format. The Federal Circuit deemed this a clear legal error warranting vacatur of the liability judgment and a new trial.


    Damages Verdict Also Vacated

    Because liability was vacated, the court also vacated the $300 million damages verdict. Notably, the district court had instructed the jury to assume all five patents were infringed for purposes of damages—an instruction that now lacks any valid liability finding to support it.

    Further, the court held that the district court abused its discretion under FRE 403 by admitting a high-value Apple-Qualcomm settlement agreement and allowing Optis’s expert to rely on it:

    “[T]he probative value of the Apple-Qualcomm settlement agreement and Mr. Kennedy’s testimony concerning the same is substantially outweighed by the risk of unfair prejudice.” (Slip op. at 36)

    This agreement, which settled global disputes unrelated to the patents-in-suit, was deemed minimally probative and highly prejudicial.


    Patent Eligibility Under § 101

    The court reversed the district court’s denial of Apple’s § 101 motion on claims 6 and 7 of U.S. Patent No. 8,019,332, finding them directed to an abstract mathematical formula:

    “We conclude that the claims are directed to the abstract idea—a mathematical formula.” (Slip op. at 24)

    Charles Gideon Korrell notes that the Federal Circuit found the claims failed Alice step one and remanded for further proceedings on step two.


    Means-Plus-Function and § 112 ¶ 6

    In another reversal, the Federal Circuit held that the term “selecting unit” in claim 1 of U.S. Patent No. 8,411,557 invoked § 112 ¶ 6. It found “unit” to be a nonce term that fails to connote sufficient structure:

    “‘Selecting unit’ in the claim at issue here invokes § 112 ¶ 6.” (Slip op. at 31)

    The district court had relied on a prior Eastern District ruling, but the Federal Circuit found that opinion unpersuasive, particularly in light of Optis’s own assertion that the “unit” could be implemented in hardware or software. The matter was remanded to determine if the specification provides sufficient structure.


    Claim Construction Affirmed

    The court affirmed the construction of a key term in claim 8 of U.S. Patent No. 8,102,833, rejecting Apple’s argument that the mapping of ACK/NACK control signals required a specific start position.


    Optis’s Cross-Appeal Rejected

    Optis had sought reinstatement of the original $506.2 million award from the first trial, but the Federal Circuit dismissed the cross-appeal, concluding that:

    “[T]he first damages judgment presented the same verdict form issue… and thus cannot be reinstated.” (Slip op. at 36)


    Practical Implications

    This decision reinforces several critical points for SEP litigation and patent damages trials:

    1. Verdict Form Precision Matters: Patent plaintiffs must ensure verdict forms distinguish each asserted patent or claim to avoid violating the defendant’s right to unanimity.
    2. Evidence of Other Settlements Is Risky: Courts will scrutinize the use of large dollar-value settlements, especially when they involve different technologies or were driven by non-comparable litigation pressure.
    3. FRAND Damages Must Align with Liability: Damages awards must correspond to actual findings of infringement, particularly in FRAND cases.
    4. § 101 and § 112 Scrutiny Continues: The court’s reversals on patent eligibility and means-plus-function interpretation signal a continued willingness to invalidate improperly drafted claims—even in complex SEP disputes.

    Charles Gideon Korrell notes that the Federal Circuit’s opinion emphasizes procedural fairness as much as substantive patent doctrine. Charles Gideon Korrell also observes that the court’s insistence on clarity in verdict forms may drive future litigants to pay closer attention to the architecture of jury questions.


    Conclusion

    The Federal Circuit’s decision in Optis v. Apple is a comprehensive rebuke of multiple aspects of the trial court’s handling of a major SEP case. By ordering a new trial on both liability and damages and reversing several key legal rulings, the opinion sets important precedent for how SEP litigation should be conducted and how damages should be assessed.

    By Charles Gideon Korrell

  • United Services Automobile Association v. PNC Bank N.A.: Federal Circuit Invalidates Mobile Check Deposit Patent as Abstract and Non-Inventive

    United Services Automobile Association v. PNC Bank N.A.: Federal Circuit Invalidates Mobile Check Deposit Patent as Abstract and Non-Inventive

    In United Services Automobile Association v. PNC Bank N.A., the Federal Circuit reversed a district court ruling that had upheld the patent eligibility of United Services Automobile Association’s (“USAA”) mobile check deposit patent, holding instead that the asserted claim of U.S. Patent No. 10,402,638 (“the ’638 patent”) was directed to an abstract idea and lacked any inventive concept. The decision is a significant application of the Alice two-step framework to financial technology patents and reinforces the limits of § 101 patent eligibility for routine, computer-implemented processes.

    Charles Gideon Korrell notes that the ruling offers a textbook example of how courts are applying Alice in cases where a technology’s commercial success does not correlate with technical inventiveness.


    Background: The Dispute and the Patent

    USAA brought suit against PNC Bank in the Eastern District of Texas, alleging infringement of several patents relating to remote check deposit technology. The focus of the appeal was Claim 20 of the ’638 patent, which describes a “system for allowing a customer to deposit a check using a customer’s handheld mobile device.” The claim outlines the use of a downloadable banking app that helps users photograph a check and submit it wirelessly, with steps for authentication, error checking, and optical character recognition (OCR) to ensure deposit quality.

    Following cross-motions for summary judgment on § 101 eligibility, the district court sided with USAA, holding that the claim was not directed to an abstract idea. The case proceeded to trial, where a jury found PNC liable for infringing the ’638 and ’598 patents. However, PNC appealed, challenging the § 101 ruling. Meanwhile, separate inter partes reviews invalidated the asserted claims of the ’598 and ’136 patents under § 103, leaving only the ’638 patent’s § 101 validity at issue.


    The Federal Circuit’s Analysis

    Step One – Abstract Idea

    Applying the first step of the Alice test, the Federal Circuit concluded that the asserted claim was directed to the abstract idea of “depositing a check using a handheld mobile device.” This, the court emphasized, amounted to the digitization of a longstanding business process without meaningful technological innovation.

    Key to the court’s reasoning was that the claimed process simply implemented traditional check deposit steps—such as capturing images, checking for errors, and transmitting data—on a generic mobile device. These functions, the court explained, had long been performed by bank employees and early scanning systems.

    The court cited Content Extraction & Transmission LLC v. Wells Fargo Bank, 776 F.3d 1343 (Fed. Cir. 2014), where similar check processing steps (data capture, OCR, and information storage) were deemed abstract. Also invoked was Electronic Power Group, LLC v. Alstom S.A., 830 F.3d 1350 (Fed. Cir. 2016), which held that collecting, analyzing, and displaying information—even if performed by a computer—constitutes an abstract idea.

    In contrast to McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299 (Fed. Cir. 2016), where the claims provided specific rules to automate animation, the ’638 patent was result-oriented and lacked detailed steps or algorithms that could have provided a technological improvement.


    Step Two – Lack of Inventive Concept

    At the second step of Alice, the court held that the claim failed to recite any inventive concept that would render the abstract idea patentable. While USAA argued that implementing mobile check deposit with error-checking and OCR on consumer devices was non-obvious and commercially valuable, the court found that these features were themselves routine and generic.

    Indeed, USAA’s own patent specification acknowledged that the invention operated “in conjunction with electronics that today’s customers actually own or can easily acquire, such as a general purpose computer, a scanner, and a digital camera.” The claim, said the court, merely applied existing technologies to a known financial process.

    The panel rejected the argument that the ordered combination of claim elements transformed the abstract idea into a patent-eligible application. As the court noted, invoking a computer as a tool to perform a longstanding business task—even when streamlined by modern devices—does not make the process inventive. The court cited Customedia Techs., LLC v. Dish Network Corp., 951 F.3d 1359 (Fed. Cir. 2020), and Intellectual Ventures I LLC v. Capital One Bank (USA), 792 F.3d 1363 (Fed. Cir. 2015), for the proposition that limiting a claim to a particular field or environment is insufficient.

    Charles Gideon Korrell believes this conclusion reinforces a key point in § 101 jurisprudence: implementation on mobile hardware—even if novel from a product development standpoint—is not a substitute for true technical innovation.


    No Disputed Facts to Preclude Summary Judgment

    USAA also argued that summary judgment was inappropriate because there were disputed facts over whether certain claim elements—such as OCR and mobile deposit apps—were conventional. The Federal Circuit disagreed. Citing Broadband iTV, Inc. v. Amazon.com, Inc., 113 F.4th 1359 (Fed. Cir. 2024), it held that summary judgment is appropriate under § 101 when there are no genuine disputes of material fact. The record demonstrated that OCR and remote image processing were widely known, and no specific improvement in their use was disclosed or claimed.


    Consequence of the Ruling

    Because the Federal Circuit determined that the only remaining asserted claim was invalid under § 101, it declined to reach USAA’s cross-appeal concerning allegedly improper expert testimony on damages. Without a valid patent, any damage award was moot.

    The decision has immediate implications for litigation involving similar mobile deposit patents, especially given the Federal Circuit’s earlier affirmances of § 103 invalidations of USAA’s related patents in inter partes review. As the court reiterated, under XY, LLC v. Trans Ova Genetics, 890 F.3d 1282 (Fed. Cir. 2018), an affirmance of invalidity has collateral estoppel effect on pending and co-pending actions involving the same claims.

    Charles Gideon Korrell points out that although USAA pioneered remote deposit in the commercial market, the court made clear that commercial success alone cannot confer patent eligibility absent concrete technical innovation.


    Key Takeaways

    • Abstract Idea: Mobile check deposit is a digitized version of a longstanding financial practice and falls within the abstract idea category.
    • Lack of Specificity: The patent recited desired results (e.g., error checking, OCR) without describing how these functions were implemented.
    • No Inventive Concept: Routine use of OCR and mobile apps, even if previously done with specialized equipment, did not amount to an inventive concept.
    • Broad Implications: The ruling emphasizes that convenient implementation on mobile platforms does not make a claim patent-eligible.

    Charles Gideon Korrell observes that the decision draws a firm line between commercial value and patent eligibility. For those drafting or litigating financial services patents, the opinion is a cautionary tale in claiming functionality without detailing the technological advancement behind it.

    By Charles Gideon Korrell

  • Recentive Analytics, Inc. v. Fox Corp.: Applying Generic Machine Learning to a New Environment Is Not Enough for Patent Eligibility

    Recentive Analytics, Inc. v. Fox Corp.: Applying Generic Machine Learning to a New Environment Is Not Enough for Patent Eligibility

    In Recentive Analytics, Inc. v. Fox Corp., No. 23-2437 (Fed. Cir. Apr. 18, 2025), the Federal Circuit affirmed the dismissal of a patent infringement suit on § 101 grounds, holding that Recentive’s asserted patents were directed to ineligible subject matter. The court concluded that the patents merely applied well-known machine learning techniques to the new context of scheduling live events and generating television network maps, without disclosing any specific improvements to the machine learning models themselves.

    Background: Scheduling and Broadcasting with ML

    Recentive sued Fox Corp., alleging infringement of four patents that described the use of machine learning to optimize the scheduling of live events and dynamically generate television broadcast “network maps.” These network maps determined which programs would air in which local markets at specific times, a particularly complex task in the context of live sports broadcasts like NFL games.

    Historically, networks made these scheduling decisions manually, based on general market heuristics or static planning tools. Recentive claimed to have pioneered a method that applied machine learning to this domain, using models trained on historical data—such as ticket sales, regional viewer preferences, and event logistics—to create optimized schedules and automatically update them in response to real-time data. According to Recentive, Fox deployed similar technology in its broadcast operations without a license, including tools that tailored game broadcasts for maximum ratings across different affiliates and time slots.

    The four asserted patents fell into two categories:

    • Machine Learning Training Patents ('367 and ‘960 patents): Directed to generating optimized event schedules using machine learning models trained on historical event data.
    • Network Map Patents ('811 and '957 patents): Concerned with using machine learning to optimize network broadcast schedules and dynamically update network maps in response to changing conditions.

    While the patents invoked modern ML techniques—such as neural networks, support vector machines, and gradient-boosted forests—they required only “any suitable machine learning technique” and did not claim new models, architectures, or training methods.

    The Alice Framework

    Applying the Alice two-step test, the court evaluated whether the patents were directed to patent-eligible subject matter under § 101.

    Step One: Directed to an Abstract Idea

    At step one, the court found that the patents were directed to the abstract idea of applying generic machine learning methods to new domains (event scheduling and network mapping). Key to the court’s analysis:

    • Generic ML Use: The court emphasized that Recentive’s claims merely described using conventional ML techniques to solve known scheduling and broadcast optimization problems.
    • Field of Use Limitation: Applying ML to a previously “unsophisticated” domain like television scheduling was not enough. As the court reiterated, restricting an abstract idea to a specific environment does not render it eligible.
    • No Technological Improvement: Although the patents touted “real-time” and “dynamic” scheduling, the court found these features to be inherent to ML itself and lacking any claimed improvement to the underlying technology.

    The court distinguished the claims from those in Enfish, McRO, and Koninklijke, where specific improvements to computer functionality or data processing methods were claimed. Instead, it likened the case to SAP Am. v. InvestPic and Electric Power Group, where courts rejected abstract data-processing claims lacking technical specificity.

    Step Two: No Inventive Concept

    At step two, the court found that the claims lacked any “inventive concept” sufficient to transform the abstract idea into a patent-eligible application:

    • Generic computing environment: The patents were implemented on general-purpose computing hardware.
    • No technical solution: Even features like real-time updating and iterative training were inherent aspects of machine learning, not technological innovations.
    • Efficiency gains irrelevant: The court reiterated that merely achieving results faster or more efficiently using a computer does not make a claim patent-eligible (Content Extraction, Customedia, Trinity).

    A Clear Line on ML and § 101

    In holding that “patents that do no more than claim the application of generic machine learning to new data environments” are ineligible, the panel clarified how existing § 101 jurisprudence applies to ML-related patents:

    • To survive Alice, claims must go beyond stating the use of ML in a novel context. They must describe how the ML models themselves are improved or implemented in a technically meaningful way.
    • This decision aligns with recent decisions like SAP Am. v. InvestPic, Electric Power Group, and Stanford, which stress that invoking known tools on new datasets is not enough.

    Litigation Strategy: The Algorithm That Wasn’t Claimed

    A particularly revealing moment came during oral argument when Recentive’s counsel admitted that they deliberately avoided claiming a new ML algorithm. The rationale? Fear of falling into another § 101 trap: the prohibition on claiming natural laws or mathematical formulas.

    This litigation strategy underscores the dilemma facing patent drafters in AI and ML. Claims that are too abstract fail at Alice step one; claims that are too technical risk being characterized as mathematical laws or unpatentable subject matter at step two. In seeking to thread that needle, Recentive ended up with patents that described no technical implementation at all—just an invocation of ML on a new dataset.

    This signals a growing tension in ML patent prosecution: balancing § 101 eligibility with disclosure sufficiency, without accidentally triggering disqualification under the guise of abstraction or mathematical formalism.

    Takeaway for Practitioners

    The Federal Circuit’s decision in Recentive sends a clear and cautionary message to those drafting or litigating AI-related patents:

    • ML Must Be More Than a Buzzword: Simply applying a standard ML model—without claiming how the model is improved or adapted—will almost certainly fail under § 101.
    • Implementation Details Matter: Vague references to “dynamically optimized schedules” or “real-time adjustment” will not suffice without concrete technical means to achieve those goals.
    • Disclosure Strategy Is Crucial: Avoiding algorithmic detail to sidestep one § 101 problem may backfire by triggering another. Patent claims must walk a fine line: detailed enough to show inventive application, but not so mathematical as to seem like an unpatentable law of nature.
    • Field-of-Use Limits Won’t Rescue Abstract Claims: No matter how novel the application, courts will disregard “do it with AI” claims that offer no technological advance in the computing or modeling process itself.
    • Expect Closer Scrutiny in Litigation: Plaintiffs asserting AI-driven patents will need to show not just commercial similarity but also a clearly delineated inventive step in how ML is implemented. As Recentive illustrates, merely identifying an infringing product that uses AI will not save a claim that lacks specificity in what the invention actually improves.

    Machine learning may revolutionize many industries, but for now, it does not exempt patentees from the requirements of § 101. To claim such innovations successfully, applicants must do more than dress up abstract ideas in predictive analytics—they must show how their inventions improve the underlying technology itself.

    By Charles Gideon Korrell

  • Federal Circuit Overturns ITC’s Patent Ineligibility Ruling in US Synthetic v. ITC

    On February 13, 2025, the United States Court of Appeals for the Federal Circuit issued its opinion in US Synthetic Corp. v. International Trade Commission, a case involving key issues in intellectual property law, particularly the eligibility of patent claims under 35 U.S.C. § 101 and the requirements for enablement under § 112. The Federal Circuit reversed the ITC’s conclusion that certain patent claims were directed to an abstract idea and, therefore, ineligible for patent protection, marking a significant decision for patent law concerning material compositions.

    Case Background

    US Synthetic Corp. (USS) filed a complaint with the International Trade Commission (ITC) alleging that several companies had violated Section 337 of the Tariff Act (19 U.S.C. § 1337) by importing and selling products that infringed its U.S. Patent No. 10,508,502 (the ’502 patent). The patent in question covers a polycrystalline diamond compact (PDC), a material used in drilling and machining applications.

    After an investigation, the ITC determined that the asserted claims of the ’502 patent were directed to an abstract idea and were thus patent-ineligible under § 101. The ITC’s ruling was based on its conclusion that the patent claims were primarily focused on certain magnetic properties of the PDCs, which it considered to be merely the result of the manufacturing process rather than structural limitations of the claimed composition.

    USS appealed this determination, arguing that the ITC had misapplied the Supreme Court’s Alice test and that the patent claims were not abstract but instead directed to a specific, novel composition of matter.

    Federal Circuit’s Analysis and Ruling

    The Federal Circuit reversed the ITC’s finding of patent ineligibility and ruled in favor of USS. The court applied the Alice two-step test for determining patent eligibility:

    1. Step One: Are the Claims Directed to an Abstract Idea? The Federal Circuit found that the claims were not directed to an abstract idea but rather to a specific composition of matter. The court emphasized that the patent defines the PDC by its material composition, including diamond grains, catalyst properties, grain size, and certain magnetic properties. Because these characteristics inform a skilled artisan about the structure and physical properties of the PDC, the claims were not abstract.
    2. Step Two: Do the Claims Contain an Inventive Concept? Since the claims were not abstract under step one, the court did not need to proceed to step two. However, it noted that even if step two had been necessary, the claimed composition involved specific manufacturing parameters that resulted in improved material properties, which could qualify as an inventive concept.

    Enablement Under § 112

    In addition to patent eligibility, the intervenors argued that the claims were not enabled under § 112 because the patent did not adequately describe how to achieve the claimed properties without undue experimentation. However, the Federal Circuit upheld the ITC’s conclusion that the claims were enabled. The court found that the patent specification contained sufficient details on the manufacturing process and provided working examples that a skilled artisan could follow without undue experimentation.

    Key Takeaways for Intellectual Property Law

    1. Clarification on Patent Eligibility for Material Compositions
      • The ruling reinforces that claims defining specific material compositions—especially when tied to measurable properties—are not abstract ideas under § 101.
      • The decision pushes back against an overly restrictive view of patent eligibility that might otherwise exclude innovations in material science.
    2. Reaffirmation of the Enablement Standard
      • The Federal Circuit reiterated that the burden of proving non-enablement is on the party challenging the patent.
      • The court emphasized that some level of experimentation is permissible as long as it is not unduly extensive.

    Conclusion

    The US Synthetic v. ITC decision is a significant win for patent holders in the field of material science. It demonstrates that courts are willing to take a nuanced approach when assessing whether a patent is directed to an abstract idea, particularly in cases involving compositions of matter. Moreover, the ruling affirms that patents must provide enough information to enable a skilled artisan to practice the invention without undue experimentation, but they do not need to be exhaustive in their disclosures. This decision is likely to influence future litigation involving patent eligibility and enablement in the chemical and material sciences industries.

    By Charles Gideon Korrell

  • Federal Circuit Affirms Non-Infringement in Mirror Worlds v. Meta: Key Patent Law Takeaways

    On December 4, 2024, the Federal Circuit issued its decision in Mirror Worlds Technologies, LLC v. Meta Platforms, Inc., upholding the district court’s grant of summary judgment in favor of Meta (formerly Facebook) on all claims of patent infringement. The case, involving patents related to time-ordered data streams, raised important issues in patent law, particularly regarding claim construction, infringement, and patent eligibility under 35 U.S.C. § 101.

    Background of the Case

    Mirror Worlds Technologies, LLC alleged that Meta’s News Feed, Timeline, and Activity Log features infringed three of its patents:

    • U.S. Patent No. 6,006,227 (’227 patent)
    • U.S. Patent No. 7,865,538 (’538 patent)
    • U.S. Patent No. 8,255,439 (’439 patent)

    These patents cover methods for organizing and displaying digital information in chronological streams, a system designed to replace traditional folder-based file organization.

    Meta denied infringement and sought summary judgment on multiple grounds, including non-infringement and invalidity under § 101. The district court ruled in Meta’s favor, and Mirror Worlds appealed.


    Key Patent Law Issues Addressed in the Decision

    1. Claim Construction and the “Main Stream” Limitation

    One of the primary disputes in the case revolved around the construction of the term “main stream”, a key feature in the patented system. The patents required that every data unit received or generated by the system be included in the “main stream.” Meta argued, and the court agreed, that its accused systems (Multifeed Leaves and TimelineDB) did not store all received/generated data in a single time-ordered structure, as required by the patents.

    🔹 Court’s Ruling: The Federal Circuit upheld the district court’s finding that some information used by Meta’s systems—such as coefficient scores (which measure user relationships) and advertising data—was received by backend systems but not stored in the alleged “main stream.” This meant that Mirror Worlds could not prove literal infringement.

    🔹 Takeaway for Patent Owners: When drafting claims, precise language matters. If a claim requires that every piece of data be stored in a certain way, an accused infringer only needs to show that one type of data falls outside that structure to avoid infringement.


    2. The “Glance View” Limitation and Non-Infringement of the ’538 and ’439 Patents

    For two of the patents, Mirror Worlds relied on a feature called “glance view”, which required an abbreviated version of a document to be displayed when a user hovered over it. The court ruled that Meta’s accused features did not satisfy this limitation.

    🔹 Court’s Ruling: The district court found that Meta’s contextual dialog boxes (which appear when a user hovers over a link) provided only metadata—such as the source or author of a post—but did not present an actual summary of the document’s content. Because Mirror Worlds failed to present admissible evidence that the accused systems met this limitation, summary judgment was appropriate.

    🔹 Takeaway for Litigants: If a claim includes a specific display requirement, a successful infringement argument requires clear, admissible evidence that the accused product meets that requirement. Unauthenticated screenshots and expert testimony based on them will likely be excluded.


    3. Section 101 Patent Eligibility (Not Addressed)

    Meta cross-appealed the district court’s rejection of its argument that the patents were invalid under Alice Corp. v. CLS Bank Int’l, which governs patent eligibility under 35 U.S.C. § 101. However, because the court affirmed the non-infringement ruling, it declined to address the § 101 issue.

    🔹 Practical Implication: Courts often avoid ruling on patent validity issues when they can resolve a case on infringement grounds. This leaves open questions about whether Mirror Worlds’ patents would have survived a § 101 challenge.


    Final Thoughts: A Cautionary Tale for Patent Holders

    The Federal Circuit’s decision in Mirror Worlds v. Meta reinforces several key lessons for patent owners and litigants:

    1️⃣ Claim precision is critical – If a patent requires that a system include every data unit in a structure, any exception can defeat an infringement claim.
    2️⃣ Evidence matters – Courts will exclude unreliable evidence, such as unauthenticated screenshots, that fail to demonstrate a patent claim is met.
    3️⃣ Patent eligibility remains an open issue – The § 101 challenge was left undecided, but software patents, particularly those covering abstract ideas, continue to face heightened scrutiny.

    For companies developing software-based patents, this case underscores the importance of carefully drafted claims, thorough infringement analysis, and solid evidentiary support when asserting patent rights in court.

    By Charles Gideon Korrell

  • Federal Circuit Vacates District Court’s Surprise Patent Ineligibility Ruling in Astellas v. Sandoz

    In a major rebuke to a district court’s handling of patent eligibility, the Federal Circuit has vacated a decision that invalidated Astellas’s pharmaceutical patent under 35 U.S.C. § 101—a ruling the lower court made on its own initiative, without either party raising the issue. The court’s strong reaffirmation of the “party presentation principle” signals a warning against judicial overreach in patent litigation.

    Background: The Overactive Bladder Treatment and the Patent Dispute

    Astellas Pharma, the manufacturer of Myrbetriq®, an extended-release formulation of mirabegron for overactive bladder (OAB), sued multiple generic drugmakers, including Sandoz, Lupin, and Zydus, for patent infringement under the Hatch-Waxman Act. The key patent at issue, U.S. Patent No. 10,842,780 (the ’780 patent), covered a sustained-release formulation of mirabegron that overcame the “food effect”—an issue where drug absorption varies significantly depending on whether the patient has eaten.

    During the litigation:

    • The generic manufacturers challenged the patent’s validity only under 35 U.S.C. § 112, arguing that the claims were not enabled, lacked written description, or were indefinite.
    • Sandoz explicitly waived arguments under §§ 102 (anticipation) and 103 (obviousness) before trial.
    • Neither side raised a challenge under 35 U.S.C. § 101 (patent eligibility).

    However, after a five-day bench trial, the district court unexpectedly ruled that the patent claims were invalid under § 101—a legal theory that had never been argued by the defendants. This ruling blindsided Astellas, prompting their appeal.


    Key Patent Law Issues Addressed

    1. Can a Court Invalidate a Patent on Grounds Not Raised by Either Party?

    The Federal Circuit’s resounding answer: No.

    The appeals court held that the district court violated the “party presentation principle”—a fundamental rule in U.S. litigation that courts must decide only the issues framed by the parties.

    The Supreme Court has repeatedly reinforced this principle, stating that courts should not act as “issue spotters” on behalf of litigants. The Federal Circuit echoed this, emphasizing:

    “It is for the parties—not the court—to chart the course of the litigation.”

    By introducing a new ground of invalidity sua sponte, the district court abused its discretion, undermining due process, and depriving Astellas of an opportunity to defend its patent.

    2. Is Patent Eligibility a Special Case Where a Court Can Rule on Its Own?

    No. The district court seemed to treat § 101 eligibility like a jurisdictional question, which courts must assess even if not raised. However, the Federal Circuit flatly rejected this view, clarifying that patent eligibility is subject to the same statutory presumption of validity under 35 U.S.C. § 282 as other validity defenses.

    The court noted:

    • The Supreme Court has never held that § 101 must be evaluated independently by courts.
    • Patent challengers bear the burden of proving invalidity—courts cannot assume this burden for them.

    3. Was the ’780 Patent’s “Food Effect” Solution Merely a Natural Law?

    The district court held that Astellas’s discovery of a sustained-release profile that eliminated the food effect was merely an application of a natural law, making it patent-ineligible under Mayo Collaborative Services v. Prometheus Labs (2012).

    The Federal Circuit avoided ruling on the merits of this issue, focusing instead on the procedural error. However, it hinted that the district court likely misunderstood the scope of § 101, as formulation patents like Astellas’s typically claim a non-naturally occurring composition—not a law of nature.


    Outcome and Key Takeaways

    IssueFederal Circuit Decision
    Court raising § 101 issue sua sponteAbuse of discretion—violates party presentation principle
    Treatment of § 101 as jurisdictionalError—validity challenges must be raised by parties
    Presumption of validity under § 282Applies equally to § 101 challenges
    Future of Astellas’s patentRemanded for ruling on infringement and § 112 validity defenses

    The Federal Circuit vacated the district court’s judgment and remanded the case for a proper adjudication—one limited to the issues actually raised by the parties (i.e., enablement, written description, and indefiniteness under § 112).


    What This Means for Future Patent Cases

    1. District Courts Must Stick to the Issues Raised

    This ruling strongly discourages judges from introducing new invalidity arguments. It reinforces that § 101 is not a jurisdictional test and that courts cannot invalidate patents sua sponte.

    2. Patent Defendants Cannot Rely on Courts to Raise Additional Defenses

    Generic manufacturers (and other patent challengers) must affirmatively raise § 101 defenses during litigation. A court cannot do their work for them.

    3. Clarifies That Formulation Patents Are Not Automatically “Natural Laws”

    While the Federal Circuit did not directly decide whether Astellas’s patent was ineligible under § 101, its reluctance to uphold the district court’s reasoning suggests that such pharmaceutical formulation patents remain patentable under existing law.


    Next Steps for Astellas

    On remand, Astellas’s patent infringement claims will continue—but the case will focus only on the § 112 defenses (enablement, written description, and indefiniteness). The generics will have to prove these defenses—which are often harder to establish than obviousness or anticipation.

    See also:

    Article relating to patent office interim guidance on subject matter elegibility.

    By Charles Gideon Korrell

  • Contour v. GoPro: Reversal of § 101 Ineligibility Finding for POV Camera Patent

    Contour v. GoPro: Reversal of § 101 Ineligibility Finding for POV Camera Patent

    In a significant development in the evolving landscape of patent eligibility, the Federal Circuit reversed a district court’s grant of summary judgment under 35 U.S.C. § 101, holding that claims directed to a point-of-view (POV) action camera with real-time streaming and control functionality recite patent-eligible subject matter. The September 9, 2024 decision in Contour IP Holding LLC v. GoPro, Inc., No. 22-1654, provides meaningful clarification on how courts should assess “technological improvements” under Alice step one.

    Background: Remote Control and Real-Time Streaming in POV Cameras

    Contour’s asserted patents (U.S. Patent Nos. 8,890,954 and 8,896,694) cover hands-free POV action cameras configured for remote image acquisition and control. Central to the claims is a “dual stream” architecture: the camera generates a high-quality video file for later viewing and a lower-quality stream that is wirelessly transmitted to a remote device for real-time viewing and control. This design allows users—like a skier with a helmet-mounted camera—to monitor and adjust recordings in real-time using a smartphone app, even when the camera itself is out of sight.

    The district court found the claims ineligible under § 101, characterizing them as directed to the abstract idea of “creating and transmitting video (at two different resolutions) and adjusting the video’s settings remotely.” At Alice step two, the court found no inventive concept, concluding the claims merely invoked generic components performing conventional functions.

    Federal Circuit’s Reversal: A “Technological Solution to a Technological Problem”

    Writing for the panel, Judge Reyna disagreed with the lower court’s characterization of the claims and reversed, holding that claim 11 of the ’954 patent and its counterpart in the ’694 patent are not directed to an abstract idea.

    Importantly, the Federal Circuit emphasized the claim’s requirement for generating two data streams “in parallel” and transferring only the low-quality stream to the remote device. This, the court found, constituted a specific and concrete improvement to the functionality of POV cameras, not merely an abstract idea implemented on conventional hardware.

    The panel highlighted several key precedents in its reasoning:

    • McRO, Inc. v. Bandai Namco Games Am. Inc., 837 F.3d 1299 (Fed. Cir. 2016): The court analogized Contour’s claims to those in McRO, where rule-based automation of animation was found to improve computer graphics technology. Similarly, Contour’s dual-stream architecture improved real-time camera control and viewing capabilities.
    • Enfish, LLC v. Microsoft Corp., 822 F.3d 1327 (Fed. Cir. 2016): The court reiterated that claims should not be abstracted away from their specific technological solutions. The district court’s characterization of Contour’s claims at “a high level of abstraction” was criticized as contrary to Enfish.
    • Core Wireless Licensing S.A.R.L. v. LG Elecs., Inc., 880 F.3d 1356 (Fed. Cir. 2018) and CardioNet, LLC v. InfoBionic, Inc., 955 F.3d 1358 (Fed. Cir. 2020): The panel cited these cases for the principle that claims reciting specific functional improvements to technology—particularly those improving user interaction or system performance—can be patent eligible at step one.
    • Yu v. Apple Inc., 1 F.4th 1040 (Fed. Cir. 2021): GoPro had relied heavily on Yu, where claims directed to combining two images for enhancement were found ineligible. The court distinguished Yu, noting that Contour involved no “longstanding, fundamental practice” in photography or video recording and instead claimed a concrete, non-generic camera architecture.

    Key Takeaways

    1. Technological specificity matters. The Federal Circuit was persuaded by the “parallel recording” requirement and the specific hardware-software interaction enabling remote streaming and control. Mere invocation of a result is not enough—but a particular claimed structure that achieves it may be.
    2. Avoid abstract overgeneralization. The decision warns against characterizing claims at too high a level of abstraction, a misstep that contributed to the district court’s error.
    3. The context of prior art is relevant—but not dispositive. While GoPro emphasized the use of known components, the court focused instead on their unconventional combination and functional interplay. This reflects a growing trend in § 101 cases toward examining whether claims provide a specific technical solution, even using off-the-shelf hardware.
    4. Preemption concerns remain central. The court noted that Contour’s claims did not risk preempting the field of remote video control. The narrow requirement of dual-stream parallel processing significantly cabined the claim scope.

    Conclusion

    Contour v. GoPro is a noteworthy addition to the Federal Circuit’s body of § 101 jurisprudence. For innovators in imaging technology, real-time communications, or IoT devices, the decision affirms that structural claims improving device functionality—even through combinations of conventional components—may clear the § 101 hurdle when articulated with sufficient technical specificity.

    By Charles Gideon Korrell