United States Court of Appeals
for the Federal Circuit
__________________________
AMERICAN CALCAR, INC.
Plaintiff-Appellant,
v.
AMERICAN HONDA MOTOR CO., INC.
AND HONDA OF AMERICA MANUFACTURING,
INC.,
Defendants-Cross Appellants.
__________________________
2009-1503, -1567
__________________________
Appeal from the United States District Court for the
Southern District of California in Case No. 06-CV-02433,
Judge Dana M. Sabraw.
____________________________
Decided: June 27, 2011
____________________________
GARY M. BUTLER, Baker Botts L.L.P., of New York,
New York, argued for plaintiff-appellant. With him on
the brief were PAUL A. RAGUSA, ELIOT D. WILLIAMS and
JENNIFER COZEOLINO.
ROBERT E. HILLMAN, Fish & Richardson P.C., of Bos-
ton, Massachusetts, argued for defendants-cross appel-
lants. With him on the brief was JOHN T. JOHNSON, of
New York, New York. Of counsel were MICHAEL F.
AMERICAN CALCAR v. AMERICAN HONDA 2
AUTUORO of New York, New York; AHMED J. DAVIS of
Washington, DC; JOHN A. DRAGSETH of Minneapolis,
Minnesota; FRANK PORCELLI and ROBERT E. HILLMAN, of
Boston, Massachusetts; and MICHAEL M. ROSEN of San
Diego, California.
__________________________
Before LOURIE, BRYSON, and GAJARSA, Circuit Judges.
LOURIE, Circuit Judge.
American Calcar, Inc. (“ACI”) appeals from the final
judgment of the United States District Court for the
Southern District of California. The court found U.S.
Patents 6,330,497 (“the ’497 patent”), 6,438,465 (“the ’465
patent”), and 6,542,795 (“the ’795 patent”) unenforceable
due to inequitable conduct. 1 The court also granted
summary judgment of noninfringement of U.S. Patents
6,754,485 (“the ’485 patent”), 6,987,964 (“the ’964 pat-
ent”), 6,577,928 (“the ’928 patent”), 6,524,794 (“the ’794
patent”), and 6,275,231 (“the ’231 patent”) in favor of the
defendants American Honda Motor Company, Incorpo-
rated and Honda of America Manufacturing, Incorporated
(collectively, “Honda”). 2 Further, the court granted
summary judgment of infringement of U.S. Patent
6,587,759 (“the ’759 patent”).
1 Am. Calcar, Inc. v. Am. Honda Motor Co., Inc.,
No. 06-CV-02433, Dkt. No. 577 (S.D. Cal. Nov. 3, 2008)
(“Inequitable Conduct Op.”).
2 Am. Calcar, Inc. v. Am. Honda Motor Co., Inc.,
No. 06-CV-02433, Dkt. No. 333 (S.D. Cal. Apr. 24, 2008)
(“Car-Mail SJ Op.”); Am. Calcar, Inc. v. Am. Honda Motor
Co., Inc., No. 06-CV-02433, Dkt. No. 314 (S.D. Cal. Apr. 4,
2008) (“Service Provider SJ Op.”); Am. Calcar, Inc. v. Am.
Honda Motor Co., Inc., No. 06-CV-02433, Dkt. No. 74
(S.D. Cal. July 10, 2007) (“Radio SJ Op.”).
3 AMERICAN CALCAR v. AMERICAN HONDA
Following a trial, a jury found the asserted claims of
the ’497 patent invalid, and the asserted claims of the
’465, ’795, and ’759 patents not invalid. 3 The district
court denied Honda’s renewed motion for judgment as a
matter of law (“JMOL”) or new trial on the validity of the
’759 patent and entered judgment on that patent in favor
of ACI. 4 ACI appeals the court’s finding of inequitable
conduct and the summary judgment of noninfringement.
Honda cross-appeals from the court’s JMOL decision. We
affirm the court’s summary judgment decisions on nonin-
fringement, reverse the court’s denial of JMOL on the
validity of the ’759 patent, vacate the district court’s
decision on inequitable conduct, and remand to the dis-
trict court to decide the inequitable conduct issue under
the guidelines of our recent en banc decision. See
Therasense v. Becton, Dickinson & Co., No. 2008–1511,
slip op. (Fed. Cir. May 25, 2011).
BACKGROUND
ACI asserted fifteen patents against Honda in this
case, of which nine patents are at issue in this appeal.
The patents relate to various aspects of vehicle computer
systems. Figure 10 of the ’465 patent illustrates the
“Main Menu” screen of one such system.
3 Am. Calcar, Inc. v. Am. Honda Motor Co., Inc.,
No. 06-CV-02433, Dkt. No. 538 at 3-8 (S.D. Cal. July 17,
2008) (“Verdict Form”).
4 Am. Calcar v. Honda Motor Co., Inc., No. 06-CV-
02433, Dkt. No. 613 (S.D. Cal. Mar. 10, 2009) (S.D. Cal.
Nov. 17, 2009) (“JMOL Op.”).
AMERICAN CALCAR v. AMERICAN HONDA 4
The screen allows the user to select, obtain information,
and control various features of the vehicle by touching the
appropriate option on the screen.
A. Car-Mail Patents
The ’485 and ’964 patents (the “Car-Mail patents”) re-
late to notifying drivers about a “faulty condition,” such as
a condition for which the manufacturer issues a recall.
The inventions attempt to solve the problem of misdeliv-
ering messages when the owner of the vehicle has
changed. In doing so, the patented system sends the
message to a vehicle specific address using electronic car-
mail, also referred to as “C-mail,” instead of to the e-mail
address of the owner. Asserted claim 1 of the ’485 patent
is representative of the invention:
1. A method for facilitating maintenance of vehicles,
comprising:
5 AMERICAN CALCAR v. AMERICAN HONDA
electronically sending, to vehicles, messages about
a faulty condition of the vehicles, the messages in-
cluding identifiers of the vehicles, respectively;
searching a database for data concerning correc-
tion of the faulty condition of the vehicles based
on the identifiers, the data being contributed by
one or more vehicle service providers;
determining, based on the data, identifiers of a
subset of the vehicles which has not had the faulty
condition corrected; and
performing one or more actions based on the iden-
tifiers of the vehicles in the subset.
’485 patent, claim 1 (emphases added). Dependent claim
2 recites that “the messages comprise addresses contain-
ing the respective identifiers of the vehicles to which the
messages are electronically sent.” Id. claim 2.
B. Radio Patent
The ’231 patent (the “Radio patent”) is directed to a
centralized entertainment system for use in vehicles to
facilitate a user’s control and management of entertain-
ment program selection. Claim 21, from which asserted
claims 25 and 26 depend, is reproduced below:
21. A system for use in a vehicle comprising:
a receiver for receiving signals from a plurality of
sources, the plurality of sources providing a plu-
rality of entertainment programs, respectively,
the entertainment programs being classified in a
plurality of categories based on contents of the en-
tertainment programs, the receiver deriving, from
the received signals, information identifying at
least respective categories of entertainment pro-
grams provided by the sources; and
AMERICAN CALCAR v. AMERICAN HONDA 6
an interface for presenting indicators representing
respective ones of the plurality of sources, each
indicator being selectable to receive entertain-
ment programs from the source represented by
the indicator, the indicators being arranged ac-
cording to the respective categories of entertain-
ment programs provided by the sources
represented thereby.
’231 patent, claim 21 (emphasis added).
C. Service Provider Patents
The ’928 and ’794 patents (the “Service Provider pat-
ents”) are directed to identifying a service provider when
it is determined that a vehicle needs service, and provid-
ing the user with information about the service provider
when the vehicle is within a predetermined distance of
the service provider. The invention employs a processor
built into a vehicle to detect whether the vehicle requires
maintenance. Asserted claim 1 of the ’928 patent is
representative of the invention:
1. A system for use in a vehicle comprising:
a memory for storing information concerning a
plurality of providers for servicing the vehicle;
a device connected to one or more components of
the vehicle for providing at least one measure con-
cerning the vehicle;
a processing element for determining based on the
at least one measure a vehicle condition for which
a selected service of the vehicle is needed, the
processing element identifying one of the plurality
of providers in response to the vehicle condition;
and
an interface for providing information concerning
the identified provider from the memory when a
location of the identified provider is within a pre-
7 AMERICAN CALCAR v. AMERICAN HONDA
determined distance from a current location of the
vehicle.
’928 patent, claim 1 (emphases added). The related ’794
patent claims selecting a service provider, monitoring the
distance to that service provider and alerting the user.
Claim 1 of the ’794 patent includes a limitation reciting “a
processor for selecting at least one service provider for
servicing the vehicle when the vehicle needs a service.”
(emphasis added).
D. Notable Condition Patent
The ’759 patent (the “Notable Condition patent”) is
also directed toward a system that alerts the driver when
a problem arises in the vehicle. The invention terms the
problem, such as an overheated engine, as a “notable
condition.” Upon alert, the user can select an option that
will display information on solving the problem (“coping
information”). Figure 13 from the ’759 patent illustrates
a warning screen that a user may be presented with when
a notable condition occurs.
AMERICAN CALCAR v. AMERICAN HONDA 8
As shown, the TIP option (1303) appears on the up-
per-right corner of the screen when a notable condition
arises. Clicking on the TIP option brings up information
that will help the user address whatever notable condition
has occurred. Asserted claim 1 is representative of the
invention claimed by the ‘759 patent:
1. A system for use in a vehicle comprising:
a display element; an output element for provid-
ing information concerning at least one device in
the vehicle;
a processor for identifying a notable condition of
the vehicle;
a mechanism for providing an alert indicating the
notable condition,
a provision of the information concerning the at
least one device being interrupted by the alert;
and an interface for selecting an option, which is
provided on the display element in response to the
notable condition, thereby prompting a user to se-
9 AMERICAN CALCAR v. AMERICAN HONDA
lect the option to obtain selected information to
cope with the notable condition.
’759 patent, claim 1 (emphases added).
The prior art asserted by Honda against the ’759 pat-
ent includes two Japanese publications that were not
before the United States Patent and Trademark Office
(“PTO”). Japanese Patent JP-H05-260605 (“Nihei”)
discloses a system for detecting a problem in a vehicle and
helping the driver cope with it as shown in the Figure 4,
reproduced below:
Figure 4
J.A. 1471. When a vehicle problem is detected, the sys-
tem display flashes back-and-forth between the “normal”
screen and the “warning” screen, which announces the
problem and provides some information on the solution.
J.A. 1461-63. At the bottom of the screen are buttons 6
and 7 that enable the user to either accept or decline the
option of obtaining additional information on solving the
problem (e.g., “Handling Method”). Id. The flashing
screens are accompanied by an audible alarm. Id.
AMERICAN CALCAR v. AMERICAN HONDA 10
Japanese patent JP-H04-87839 (“Mitsubishi”) claims
a similar system wherein the user is alerted to the prob-
lem by displaying warning on a portion of the screen, as
shown in Figure 6 of that patent:
J.A. 1495. Pressing that portion of the screen displaying
the warning (“warning button”), displayed here on the
bottom left, for an extended period will result in a display
of information on solving the problem. J.A. 1484-85.
Simply tapping on the warning button momentarily will
result in dismissing the warning and returning the user
to the “normal” screen. Id.
The Honda system accused of infringing the ’759 pat-
ent presents the following screen to a user when a notable
condition is detected:
11 AMERICAN CALCAR v. AMERICAN HONDA
J.A. 1547. The user can obtain information on solving the
problem by clicking on the “Check Now” button which is
highlighted by a blue outline.
E. Search Patents
The ’465 and ’795 patents (“the Search patents”) re-
late to performing searches on a system in a vehicle.
Claim 1 of the ’465 patent is representative of the inven-
tion by the Search patents:
1. A system for use in a vehicle comprising:
a memory for storing a plurality of displays hav-
ing predetermined contents, the plurality of dis-
plays being associated with a plurality of aspects
of the vehicle;
an interface for entering a query to conduct a
search concerning an aspect of the vehicle;
an input device for selecting a result of the search;
a processor responsive to the selected result for
identifying at least one of the plurality of displays
which is associated with the aspect of the vehicle;
and
a display element for showing thereon the at least
one display.
AMERICAN CALCAR v. AMERICAN HONDA 12
’465 patent, claim 1 (emphases added).
In essence, the claimed system is one for searching
topics relating to various aspects of the vehicle, wherein
the user enters a topic into the search field and a list of
search results is displayed to a user, who may then select
one item from the list. The disclosed embodiment states
that the user may enter only the first letter of the search
term, and a list of items starting with that letter is in-
stantaneously displayed. The specification also states
that in the list of search results, the entered search item
name is highlighted in yellow.
In May 1996, prior to the filing of any of ACI’s patent
applications, Honda’s Acura division began to manufac-
ture and sell the Acura 96RL model (“96RL”) in the
United States. That model had an “in-dash navigation”
system that helped navigate drivers to their desired
destinations. J.A. 1317. In doing so, the 96RL system
allowed the users to search for destinations using a key-
pad on the touch screen of the system. The 96RL manual
explains that as soon as the user enters the first letter of
the search term into the keypad, the system generates a
list of selectable options that begin with that letter. J.A.
2074. In the returned list of the search results, the clos-
est match to the entered search term is highlighted in
yellow. J.A. 2075.
F. Three-Status Patent
The ’497 patent (“the Three-Status patent”) claims a
system that allows a user to select an option from a list, to
be shown a preview of information about it, and then to
activate it. To the user, the first status is the unselected
one, followed by the selected status, and then an activated
status. Claim 1 of the ’497 patent recites:
13 AMERICAN CALCAR v. AMERICAN HONDA
1. A system for operating a device to perform a
function in a vehicle comprising:
a display element for displaying at least one op-
tion which is associated with the function of the
vehicle, the at least one option indicating a first
status;
a first interface for selecting the at least one op-
tion, the selected at least one option indicating a
second status;
an output element for providing information con-
cerning the selected at least one option;
a second interface for activating the selected at
least one option, the activated option indicating a
third status; and
a processor for causing the device to perform the
function after the selected at least one option is
activated.
’497 patent, claim 1 (emphases added). The disclosed
embodiment explains that each status is indicated by a
different color. The embodiment uses the color yellow to
indicate the selected option and the color blue to indicate
the activated options. See, e.g., ’497 patent, col.3 ll.58-66.
The 96RL system employs a similar three-status scheme
to allow the user to interact with lists displayed by the
system, and it uses the same color to indicate the same
status as the ’497 patent. J.A. 1499.
G. Prosecution History
The inventors of the patents at issue, Michael Obra-
dovich, John Dinkel, and Michael Kent, filed their first
patent application (the “’355 patent application”) on
January 28, 1997, which issued as U.S. Patent 6,009,355
(the “’355 patent”). Continuations of the ’355 patent
became the ’497, ’465, ’795, ’928, and ’794 patents, all of
which share a common specification (collectively, the “’355
AMERICAN CALCAR v. AMERICAN HONDA 14
Patent Family”). At the time of filing the ’355 patent
application, the named inventors were employees of
Calcar, Inc. (“Calcar”), ACI’s predecessor. In the 1990s,
Calcar developed and sold vehicle booklets that provided
information specific to the vehicle and were included by
some automobile manufacturers in the glove boxes of
their vehicles. Honda’s Acura division was one of Calcar’s
customers. In August 1996, one of the inventors of the
patents at issue, Dinkel, was given use of an Acura 96RL
vehicle. He drove the vehicle to Calcar’s offices, and
various employees, including the two other inventors of
the patents at issue, Obradovich and Kent, inspected the
car and drove it.
Shortly thereafter, Obradovich hired patent attorney
Alex Yip and filed the ’355 patent application. The appli-
cation listed the 96RL navigation system in the back-
ground section as a commercially available system. The
written description of the application is limited to the
navigation aspect of the system, explaining how the
system is able to receive satellite signals and verbally and
visually communicate instructions to the user for reaching
the desired destination. The specification also includes a
figure prepared by Calcar’s art department to illustrate
the 96RL navigation system. See ’355 patent, fig. 2. The
specification does not detail any aspects of the user inter-
action of the 96RL system. Specifically, the inventors
never disclosed to the PTO the aspects of the 96RL system
relating to the three-status feature or the search feature.
In 2008, a defendant in a different ACI litigation, BMW,
initiated reexamination proceedings on the ’355 and ’497
patents, in response to which ACI submitted a copy of the
96RL manual and Honda’s preliminary invalidity conten-
tions from this case to the PTO.
15 AMERICAN CALCAR v. AMERICAN HONDA
H. District Court Proceedings
Following a hearing on claim construction, the district
court construed various claim terms that ACI challenges
on appeal. See Am. Calcar, Inc. v. Am. Honda Motor Co.,
Inc., No. 06-CV-02433, Dkt. No. 105 (S.D. Cal. Sept. 24,
2007) (“Claim Construction Op.”). The court construed the
term “identifiers” in the Car-Mail patent claims as being
unique to each vehicle. Id. at 29. It construed the term
“messages” as “car-mail,” and on further dispute between
the parties concerning that term, the court construed the
term messages to require that a message must include an
address that uniquely identifies the vehicle to which the
message is being sent and that the address be in the
format “@.” Car-Mail SJ Op. at 8.
The court rejected ACI’s proposed construction of mes-
sages to mean “communications.”
As for the Service Provider patents, the district court
held that “identifying one of the plurality of providers in
response to the vehicle condition” requires that “a process-
ing element identifies a provider in response to a vehicle
condition, not in response to any action on the part of the
user.” Claim Construction Op. at 15 (emphases added).
The court found that a skilled artisan would understand
the claims as requiring a “cause-and-effect” relationship
between the occurrence of the vehicle condition and the
processor’s identification or selection of the service pro-
vider. The court also held that the claim term “providing
information concerning the identified provider from the
memory when a location of the identified provider is
within a predetermined distance” requires that “the
information is provided after it is determined that the
provider is within a predetermined distance from the
vehicle and without any intervening action by the user.”
Id. at 16 (emphases added).
AMERICAN CALCAR v. AMERICAN HONDA 16
The district court construed the claim term “source” in
the Radio patent to mean “an entertainment provider that
broadcasts on a specified frequency from a fixed location.”
Radio SJ Op. at 4. The court rejected ACI’s argument
that a source could mean any point of information, such
as a radio station, and was not necessarily limited to a
broadcasting source. Id. at 6.
The district court granted summary judgment of non-
infringement of five patents, namely the Car-Mail, Ser-
vice Provider, and Radio patents. Regarding the Car-Mail
patents, the court concluded that Honda’s system does not
use vehicle-address-based “car-mail” as claimed in the
patents, but instead broadcasts information to selected
geographic areas, and the information is received by every
Honda vehicle within range. See Car-Mail SJ Op. at 8.
With regard to the Service Provider patents, the court
concluded that because Honda’s system requires signifi-
cant user interaction in order to find a service provider
when the system identifies a need for maintenance, it
does not infringe the claims literally. Service Provider SJ
Op. at 6. It also reasoned that the prosecution history of
the Service Provider patents barred ACI from asserting a
doctrine of equivalents infringement theory. Id. at 7-8.
The court granted summary judgment of noninfringement
of the Radio patent because it concluded that accused
systems do not “receive signals from a plurality of
sources.” Radio SJ Op. at 6. The court found that the
accused systems employed satellite radio, wherein the
signal was received from a single source. Id. The court
also granted summary judgment of noninfringement
under the doctrine of equivalents because it found that
ACI had failed to provide particularized testimony and
linking argument as to the equivalency of the Radio
patent and the accused product. Id. at 8-9. The court,
however, denied Honda’s summary judgment motion on
17 AMERICAN CALCAR v. AMERICAN HONDA
invalidity of the Notable Condition patent. Am. Calcar,
Inc. v. Am. Honda Motor Co., Inc., No. 06-CV-02433, Dkt.
No. 142 (S.D. Cal. Apr. 28, 2008) (“Notable Condition SJ
Op.”). In doing so, the court concluded that neither Nihei
nor Mitsubishi taught the claim limitation “prompting a
user to select the option,” which the court construed as
requiring a user prompt to select, not just any of the
multiple displayed options, but only the one that led the
user to a solution. Id. at 8-9.
The district court held a jury trial on numerous is-
sues, including invalidity, infringement, damages, and
inequitable conduct, although the parties agreed that the
verdict on inequitable conduct would only be advisory.
The jury found the Three-Status patent invalid as antici-
pated by the 96RL. Verdict Form at 3. The jury awarded
$24 million in damages to ACI for the patents that had
been found infringed and not invalid. Id. at 9. The jury
also rendered advisory findings of no inequitable conduct
by the inventors as to the Three-Status and Search pat-
ents. Id. at 12.
Following the verdict, the district court ruled on
Honda’s inequitable conduct motion, finding that the
inventors had committed inequitable conduct in the
prosecution of the ’355 Patent Family, and therefore held
the Three-Status patent as well as the Search patents
unenforceable. See Inequitable Conduct Op. at 22. The
court made numerous fact findings including that in
August 1996, one of the inventors, Dinkel, had borrowed a
96RL vehicle and the inventors had spent between “30
minutes to an hour” in that car operating the navigation
system. Id. at 3. The court found that Obradovich hired
attorney Yip in October, 1996, but never informed him of
his experience with the 96RL. Id. The court found evi-
dence that the inventors continued to gather information
on the 96RL system in November, 1996 and, in January
AMERICAN CALCAR v. AMERICAN HONDA 18
1997, Yip filed the ’355 patent application. Id. The court
found that in a prior litigation, ACI had produced several
photographs that depict the dashboard of an Acura vehi-
cle with a navigation system, including one photograph
wherein the words “FIND CALCAR” had been entered as
a search term on the system. Id. at 6. The court also
found that the photographs were printed on paper
stamped with Kodak insignia, reflecting Kodak’s status as
a sponsor of the 1996 Olympic games. Id. at 7. A copy of
one of the photographs in the record is reproduced below.
The district court concluded that the operational de-
tails of the 96RL navigation system were in fact material
to all three patent applications. It held that the 96RL’s
three-status feature mirrors the system described in
Claim 1 of the ’497 patent. Id. at 8. It also found that the
96RL’s search and index feature was substantially similar
to that claimed in the Search patents. Id. at 9. The court
rejected ACI’s arguments that other prior art submitted
to the PTO, U.S. Patents 4,811,240 (“Ballou”) and
4,827,520 (“Zeinstra”), were cumulative of the withheld
information because it found that they do not disclose the
index-type feature found in the 96RL and claimed in the
Search patents. Id. at 10.
19 AMERICAN CALCAR v. AMERICAN HONDA
The district court found “notable” circumstantial evi-
dence of deceptive intent, given that the inventors had
operated the navigation system in the 96RL and that,
given their prior business of developing car manuals, they
had a great interest in learning about the navigation
system and its functionality. Id. at 10-11. The court held
that evidence supported Honda’s position that, based on
the “uncanny resemblance” between the two, the limited
disclosure of the system in the ’355 patent specification
came from a 96RL manual to which the inventors must
have had access. Id. at 14-16. Figure 2 from the ’497
patent and the depiction of the 96RL system from its
manual are reproduced below.
AMERICAN CALCAR v. AMERICAN HONDA 20
System Controls of the 96RL
J.A. 2069. The court also found that Figures 17 and 18 of
the Search patents, depicting the invention claimed in
those patents, share distinct similarities with figures from
the 96RL manual, supporting the inference that Calcar
had the 96RL manual at the time of filing of the ’355
patent application. Inequitable Conduct Op. at 17-19; see
also ’465 patent, figs. 17, 18; J.A. 2073-74. The court
questioned the inventor’s credibility and thus inferred
intent to deceive from the various contradictory assertions
made by Obradovich. Inequitable Conduct Op. at 22. The
court noted that Obradovich had not been candid about
the photographs of the 96RL system that had been in the
possession of the inventors. Id. at 16. The court also
rejected ACI’s good faith arguments, including that it
submitted the 96RL manual and Honda’s invalidity
contentions from this case to the PTO during a recent
reexamination of the ’497 patent, because those refer-
ences did not provide the PTO with all of the relevant
details about the 96RL. Id. at 21. Moreover, the court
held that, given that the withheld information was highly
material, less evidence of intent was required to reach a
21 AMERICAN CALCAR v. AMERICAN HONDA
finding of inequitable conduct. Id. at 22 (citing eSpeed,
Inc. v. BrokerTec USA, L.L.C., 480 F.3d 1129, 1135 (Fed.
Cir. 2007)).
Honda also moved for JMOL of invalidity of the Nota-
ble Condition patent or, in the alternative, for a new trial.
JMOL Op. at 1. The court denied the JMOL motion,
concluding that the evidence of invalidity presented at
trial, including the Nihei and Mitsubishi prior art patents
and the expert testimony, when viewed in ACI’s favor,
was sufficient to support the jury’s verdict that the Nota-
ble Condition patent was not invalid. Id. at 2.
ACI now appeals the district court’s rulings on inequi-
table conduct, claim construction, and noninfringement of
the various patents. Honda cross-appeals the court’s
denial of JMOL of invalidity of the Notable Condition
patent. We have jurisdiction pursuant to
28 U.S.C. § 1295(a)(1).
DISCUSSION
I. Inequitable Conduct
ACI argues that the district court erred in holding
three of ACI’s patents unenforceable for inequitable
conduct. ACI argues that the court’s determinations on
both materiality and intent are unsupported by clear and
convincing evidence, and are also contrary to the jury’s
unanimous verdict on inequitable conduct.
As for materiality, ACI argues, the district court
failed to identify the specific claims and limitations to
which the undisclosed information was material and
failed to appreciate that that information was cumulative
of information already of record. As for intent, ACI ar-
gues that the district court’s finding is based on a string of
inferences that lack supporting evidence. ACI argues that
the court failed to identify specific inventors who acted
AMERICAN CALCAR v. AMERICAN HONDA 22
with intent to deceive the PTO, instead simply stating
that “Calcar” possessed the material information. Accord-
ing to ACI, the court’s intent finding resulted from its
unsupportable finding of knowledge combined with non-
disclosure by the inventors. Moreover, ACI argues the
court ignored all evidence of ACI’s good faith, including
the facts that ACI had commissioned a prior art search
that was submitted to the PTO, that ACI’s inventors had
told its prosecuting attorney about the 96RL, and that the
96RL was expressly identified in the application. ACI
therefore asks us to reverse the finding of inequitable
conduct.
Honda responds that the undisclosed 96RL informa-
tion was in fact material. It points out that the jury found
the asserted Three-Status patent claims anticipated by
the 96RL system. As for the Search patents, Honda
argues that the similarity of Figures 17 and 18 of the
patents to depictions in the 96RL manual illustrates the
materiality of the undisclosed information. According to
Honda, the only difference between what is claimed by
the Search patents and the system disclosed in the 96RL
manual is that the manual demonstrates searching
destinations whereas the claims relate to searching
information on various aspects of the vehicle. Honda
contends that, contrary to ACI’s claim, the undisclosed
information is not cumulative of the Zeinstra and Ballou
references because those references do not disclose pre-
senting the search results to a user for selection.
Regarding the intent prong, Honda argues that there
was compelling evidence to demonstrate a clear intent to
deceive. Honda contends that Obradovich gave evasive
and self-contradictory testimony under oath. According to
Honda, the court’s credibility determination, finding that
Obradovich was not being completely candid, was based
on Obradovich’s ever-changing testimony that the court
23 AMERICAN CALCAR v. AMERICAN HONDA
evaluated in detail. Honda contends the district court’s
credibility determinations should be given deference.
Honda points out that ACI could not explain the source or
the remarkable similarity of the withheld information,
including the 96RL manual and actual photos, to the
patent specification. It contends that the photographs of
the 96RL system, with the search term “FIND CALCAR,”
demonstrate how familiar the inventors had become with
the 96RL system in contrast to the selective and partial
disclosure of immaterial information that was made to the
PTO. It points out that Obradovich testified that the
photographs came from office files that contained “patent
prosecution stuff.” Honda further notes that ACI’s post-
trial assertion that the information came from a Motor-
Trend article, a Honda exhibit, was in direct contradiction
to ACI’s earlier position, further supporting the court’s
finding on Obradovich’s lack of credibility. Finally,
Honda argues that per the parties’ agreement, the jury
verdict of no inequitable conduct was merely advisory and
was in no way binding on the court.
As a preliminary matter we note that the advisory
jury verdict on inequitable conduct was not binding on the
district court. ACI argues that by disregarding the jury’s
verdict of no inequitable conduct, the district court preju-
diced its Seventh Amendment interest in preserving the
jury’s verdict. We disagree. Inequitable conduct is equi-
table in nature, with no right to a jury, and the trial court
has the obligation to resolve the underlying facts of mate-
riality and intent. See Duro-Last, Inc. v. Custom-Seal,
Inc., 321 F.3d 1098, 1110 (Fed. Cir. 2003) (citing Baxter
Healthcare Corp. v. Spectramed, Inc., 49 F.3d 1575, 1584
(Fed. Cir. 1995)). Where a court submits the question to a
jury, and both parties agree that the jury findings will be
advisory, the court shall treat them as such. Id. That is
the universal rule. Heinze v. Butte & B. Consol. Mining
AMERICAN CALCAR v. AMERICAN HONDA 24
Co., 126 F. 1, 27 (9th Cir. 1903) (“Where a court sitting in
equity allows a jury trial, the verdict is but advisory to the
court, and in no sense binding.”). The district court
therefore was in no way bound by the jury’s finding of no
inequitable conduct in this case.
We have recently clarified the standards for determin-
ing materiality and intent that district courts should
apply in resolving issues of inequitable conduct. See
Therasense, slip op. at 24-35. To prove inequitable con-
duct, the accused infringer must provide evidence that the
applicant (1) misrepresented or omitted material informa-
tion, and (2) did so with specific intent to deceive the PTO.
Id. at 19 (citing Star Scientific, Inc. v. R.J. Reynolds
Tobacco Co., 537 F.3d 1357, 1365 (Fed. Cir. 2008)). Under
Therasense, the materiality required to establish inequi-
table conduct is, in general, but-for materiality. Id. at 27.
When an applicant fails to disclose prior art to the PTO,
that prior art is but-for material if the PTO would not
have allowed a claim had it been aware of the undisclosed
prior art. Id.
While deceptive intent can be inferred from indirect
and circumstantial evidence, that “inference must not
only be based on sufficient evidence and be reasonable in
light of that evidence, but it must also be the single most
reasonable inference able to be drawn from the evidence
to meet the clear and convincing standard.” Star Scien-
tific, 537 F.3d at 1366. “In a case involving nondisclosure
of information, clear and convincing evidence must show
that the applicant made a deliberate decision to withhold
a known material reference.” Therasense, slip op. at 24
(citing Molins PLC v. Textron, Inc., 48 F.3d 1172, 1181
(Fed. Cir. 1995)).
Intent and materiality are separate requirements. Id.
at 25 (citing Hoffmann-La Roche, Inc. v. Promega Corp.,
25 AMERICAN CALCAR v. AMERICAN HONDA
323 F.3d 1354, 1359 (Fed. Cir. 2003)). A district court
should not use a “sliding scale,” where a weak showing of
intent may be found sufficient based on a strong showing
of materiality, or vice versa. Id.
This court reviews a district court’s determination of
inequitable conduct under a two-tiered standard: we
review the underlying factual determinations of material-
ity and intent for clear error, and we review the ultimate
decision as to inequitable conduct for an abuse of discre-
tion. Star Scientific, 537 F.3d at 1365. If the district
court’s inequitable conduct determination rests on a
clearly erroneous finding of materiality or intent, it con-
stitutes an abuse of discretion and must be reversed. Id.
We agree with Honda that the undisclosed 96RL in-
formation was material to the Three-Status patent be-
cause the jury found, and the court upheld, the asserted
claims as anticipated by the 96RL system, and ACI has
not appealed that decision to us. See Therasense, slip op.
at 28 (holding that “if a claim is properly invalidated in
district court based on the deliberately withheld refer-
ence, then that reference is necessarily material because a
finding of invalidity in a district court requires clear and
convincing evidence, a higher evidentiary burden than
that used in prosecution at the PTO.”).
The materiality of the undisclosed information to the
Search patent applications is a different matter. Even
though the jury rejected Honda’s invalidity arguments,
both on anticipation and obviousness, as to the Search
patents based on the 96RL system, the withheld informa-
tion may be material if it would have blocked patent
issuance under the PTO’s preponderance of the evidence
standard, giving those patents’ claims their broadest
reasonable construction. Id. We cannot infer that finding
from the district court’s opinion. Although we decide that
AMERICAN CALCAR v. AMERICAN HONDA 26
the district court properly concluded that the withheld
information was not cumulative of any of the prior art of
record, the court evaluated materiality of the 96RL infor-
mation based on the PTO’s Rule 56 standard and the
“reasonable examiner” standard, both standards that we
rejected in Therasense. slip op. at 23. We thus vacate the
district court’s findings of materiality as to the Search
patents and remand to the district to decide the issue
under the but-for materiality standard set forth in
Therasense. On remand, the district court should deter-
mine whether the PTO would not have granted the
Search patents but for Calcar’s failure to disclose the
96RL information. We agree with the district court, and
ACI does not dispute, that the 96RL search “function is
substantially similar to the system described in the ’465
and ’795 Search patents,” but the court failed to make a
finding, as it did for the ’497 patent, that the withheld
information would have blocked issuance of the claims of
the Search patents.
We also conclude that the district court applied an in-
correct standard in determining specific intent to deceive
the PTO by the ACI inventors. Under Therasense, “the
accused infringer must prove by clear and convincing
evidence that the applicant knew of the reference, knew
that it was material, and made a deliberate decision to
withhold it.” Id. at 24. Although the court performed a
detailed analysis of the facts withheld, it made no holding
that any of the inventors knew that the withheld informa-
tion was in fact material and made a deliberate decision
to withhold it. Instead, it relied on the sliding scale
standard that we have rejected en banc in Therasense, id.,
basing its finding of intent significantly on the materiality
of the 96RL system to the claimed invention. The court’s
analysis went only to the extent of finding that the inven-
tors “would have been interested in learning about the
27 AMERICAN CALCAR v. AMERICAN HONDA
96RL system,” “had a significant amount of information
about the 96RL,” and “consider[ed] it as a base platform”
for the invention. Although the court found Obradovich’s
testimony to be lacking in credibility, and we give consid-
erable deference to that finding, FilmTec Corp. v. Hy-
dranautics, 982 F.2d 1546, 1554 (Fed. Cir. 1992) (“We will
not invade the province of the district court to judge
matters of credibility.”), that alone is insufficient to find
specific intent to deceive under the knowing and deliber-
ate standard. See Therasense, slip op. at 24-26. However,
it is not our task to make factual findings, and we vacate
the district court’s finding of intent and remand the issue
to the district court. See Golden Hour Data Sys., Inc. v.
emsCharts, Inc., 614 F.3d 1367, 1379 (Fed. Cir. 2010)
(remanding the question of intent for the district court to
make a finding on whether the inventor and his attorney
had actually read the undisclosed portion of the prior art
brochure in question, knew that information to be mate-
rial, and deliberately withheld it; or, alternatively,
whether they deliberately avoided reading the entire
brochure in order to avoid learning damaging informa-
tion). On remand the court should make a specific finding
on whether any of the three inventors knew that withheld
information was material and whether they made a
deliberate decision to withhold it.
We therefore vacate the district court’s finding of in-
equitable conduct and unenforceability of the ’497, ’465,
and ’795 patents and remand for further proceedings in
accordance with this opinion.
II. Noninfringement
ACI argues that the district court’s summary judg-
ment of noninfringement of five of ACI’s patents by
Honda’s systems was based on incorrect claim construc-
AMERICAN CALCAR v. AMERICAN HONDA 28
tion. It challenges the court’s constructions of multiple
claim terms. We address each in turn.
We review de novo the district court’s grant of sum-
mary judgment, drawing all reasonable inferences in
favor of the nonmovant. Anderson v. Liberty Lobby, Inc.,
477 U.S. 242, 255 (1986). Summary judgment is appro-
priate “if the pleadings, the discovery and disclosure
materials on file, and any affidavits show that there is no
genuine issue as to any material fact and that the movant
is entitled to judgment as a matter of law.” Fed. R. Civ. P.
56(c).
Claim construction is an issue of law, Markman v.
Westview Instruments, Inc., 52 F.3d 967, 977-78 (Fed. Cir.
1995) (en banc), which we review de novo, Cybor Corp. v.
FAS Techs., Inc., 138 F.3d 1448, 1454-55 (Fed. Cir. 1998)
(en banc). Although the claims of a patent define the
invention which the patentee is entitled to exclude others
from practicing, we must read the claims “in view of the
specification, of which they are a part.” Phillips v. AWH
Corp., 415 F.3d 1303, 1312-15 (Fed. Cir. 2005) (en banc)
(quotations omitted); Vitronics Corp. v. Conceptronic, Inc.,
90 F.3d 1576, 1582 (Fed. Cir. 1996) (“[I]n interpreting an
asserted claim, the court should look first to the intrinsic
evidence of record, i.e., the patent itself, including the
claims, the specification and, if in evidence, the prosecu-
tion history.”).
A. Car-Mail Patents
ACI argues that the district court improperly limited
the claim term “messages” based on the disclosed em-
bodiments described in the specification. According to
ACI, the term simply means “communications” because
the remainder of the claim defines what must be included
in the messages, such as the identifiers of the vehicles,
and there is no basis for requiring that the message
29 AMERICAN CALCAR v. AMERICAN HONDA
include an address in the format “@.” ACI contends that when the inventors
intended to include an address in the message, they did so
by expressly reciting that requirement in a claim, such as
in Claim 2 of the ’485 patent. ACI also argues that there
is no support for the court’s construction of the term
“identifiers” requiring that they be unique to each vehicle.
ACI points out that the claims require only that the
identifier be a part of the VIN that identifies a vehicle,
and although the VIN itself may be unique, there is no
requirement that the claimed identifier also be unique to
every vehicle.
Honda responds that in construing the term “mes-
sages,” the district court merely adopted the patentee’s
own definition. It points out that the specification em-
phasizes sending e-mail-like messages to cars, not people,
and describes car-mail messages to be in the format
vehicle-id@domain. According to Honda, such clarity
indicates that it is a definition, not a mere example or
preferred embodiment. Regarding “identifiers,” Honda
argues that a non-unique identifier of a car would render
the entire notion of identification meaningless. Honda
contends that, just as e-mail requires unique addresses,
car-mail requires unique identifiers. In contrast, Honda
continues, its system broadcasts data to all Honda vehi-
cles and thus the court correctly found it to be noninfring-
ing.
We agree with the district court that the messages
claimed in the Car-Mail patents have to be in a format of
@. The summary of the invention
explains what a car-mail message is: “Like a conventional
E-mail message, a C-mail message is formatted in accor-
dance with well known protocols . . . the C-mail has an
address identifying the vehicle itself. For example, the C-
mail address may be made up of the vehicle identification
AMERICAN CALCAR v. AMERICAN HONDA 30
number (VIN) identifying the vehicle.” ’485 patent, col.2
ll.50-60 (emphases added). The definition that Honda
points to comes in the detailed description of the inven-
tion: “However, in accordance with the invention, a C-
mail address is in the format of @.”
Id. at col. 4 ll. 53-58; see also col.4 l.45 (comparing the
format to a typical e-mail address format). Given the
manner in which the specification emphasizes the similar-
ity of a car-mail message to a typical e-mail message, it is
essential that a car-mail message have an address that
includes an identifier unique to the vehicle. See Hologic,
Inc. v. SenoRx, Inc., No. 2010-1235, 2011 WL 651791, at
*8 (Fed. Cir. Feb. 24, 2011) (limiting the construction of a
term where “the specification, including the figures,
consistently and exclusively” disclose only one embodi-
ment, and “that is clearly what the inventors of the . . .
patent conceived of”); see also Honeywell Int’l, Inc. v. ITT
Indus., Inc., 452 F.3d 1312, 1318-19 (Fed. Cir. 2006).
Thus, we conclude that the district court was correct in its
construction of the two terms at issue.
In doing so, we also reject ACI’s claim differentiation
argument. ACI points out that claim 2 of the ’485 patent
adds the limitation that the message include addresses,
and, therefore, this limitation cannot be included in
independent claim 1, which is presumed to be broader
than claim 2. See Comark Commc’ns, Inc. v. Harris Corp.,
156 F.3d 1182, 1186 (Fed. Cir. 1998) (“The doctrine of
claim differentiation create[s] a presumption that each
claim in a patent has a different scope.”). However, the
doctrine of claim differentiation is not a conclusive basis
for construing claims, and the ’485 patent specification
overrides its effect here. Laitram Corp. v. Rexnord, Inc.,
939 F.2d 1533, 1538 (Fed. Cir. 1991) (“Claim differentia-
tion is a guide, not a rigid rule. If a claim will bear only
one interpretation, similarity will have to be tolerated.”).
31 AMERICAN CALCAR v. AMERICAN HONDA
It is undisputed that Honda’s system does not send
messages in the claimed format to its vehicles. Accord-
ingly, we affirm the district court’s summary judgment of
noninfringement of the Car-Mail patents.
B. Radio Patent
ACI argues that the court construed the term “source”
too narrowly, requiring that it broadcast from a fixed
location and on a specified frequency. ACI contends that
there is no “broadcast” or “fixed location” requirement in
the claims, or that the signal be received directly from the
originating source. ACI proposes that the term “source”
refers to any point from which information originates.
ACI therefore argues that Honda’s accused satellite radio
receivers that receive a single signal containing multiple
radio channels from a satellite meet the claim limitation
of “plurality of sources.” At least, ACI argues, there is a
question of fact as to whether the accused XM Satellite
Radio (“XM”) receivers meet the limitation under the
doctrine of equivalents, and the court therefore erred in
granting summary judgment of noninfringement.
Honda responds that the claims are directed to receiv-
ing signals, not information or programs, and that the
court was correct in limiting the claims in that manner.
Honda argues that its XM radio system receives a single
signal from single source, and that it is irrelevant that the
single signal is comprised of content from multiple con-
tent sources. Honda further argues that its accused
system cannot infringe under the doctrine of equivalents
because a signal from one source cannot be equivalent to
multiple signals from multiple sources; such a finding
would vitiate that claim limitation.
We agree with the district court that the claimed
“source” in the Radio patent refers to a fixed source of
broadcast on a specified frequency. The specification
AMERICAN CALCAR v. AMERICAN HONDA 32
characterizes sources as radio stations with limited geo-
graphic coverage, explaining how a user can lose the radio
signal by travelling outside the coverage area. ’231 pat-
ent, col.20 ll.46-48. The patent also discloses the use of a
frequency scanner to find and list radio stations in the
receiving range. Id. at 49-51. In light of this disclosure, it
was proper to limit the term “source” in the manner that
the district court did. Abbott Labs. v. Sandoz, Inc., 566
F.3d 1282, 1288 (Fed. Cir. 2009) (en banc) (“[We] may
reach a narrower construction, limited to the embodi-
ment(s) disclosed in the specification, when the claims
themselves, the specification, or the prosecution history
clearly indicate that the invention encompasses no more
than that confined structure or method.”). ACI’s broad
reading of the term “source” as any source of information
is not supported by the specification.
It is undisputed that the accused satellite radio re-
ceiver in the Honda vehicles receives one signal, from the
XM Programming Center. It is the Programming Center
that collects content from various sources and combines
them into a single signal. The accused receivers may
receive that single signal either from a satellite or from
terrestrial “repeaters” on the ground, but it is always a
single signal. Thus, the district court was correct in
concluding that the accused receivers do not receive
signals from a “plurality of sources.”
We also reject ACI’s doctrine of equivalents argument.
The “essential inquiry” in any determination under the
equivalents doctrine is whether “the accused product or
process contain[s] elements identical or equivalent to each
claimed element of the patented invention.” Warner-
Jenkinson Co., Inc. v. Hilton Davis Chem. Co., 520 U.S.
17, 40 (1997). We have assessed the insubstantiality of
an alleged equivalent by applying the function-way-result
test as set forth in Union Paper-Bag Machine Co. v.
33 AMERICAN CALCAR v. AMERICAN HONDA
Murphy, 97 U.S. 120, 125 (1877), which asks whether an
element of an accused product “performs substantially the
same function in substantially the same way to obtain the
same result” as an element of the patented invention.
See, e.g., TIP Sys., LLC v. Phillips & Brooks/Gladwin,
Inc., 529 F.3d 1364, 1376 (Fed. Cir. 2008).
The district court found that ACI had failed to meet
its evidentiary burden of demonstrating by particularized
testimony that the accused receivers perform substan-
tially the same function in substantially the same way to
obtain the same result as the claimed system. Radio SJ
Op. at 8. We agree. We have held that “a patentee must
. . . provide particularized testimony and linking argu-
ment as to the ‘insubstantiality of the differences’ be-
tween the claimed invention and the accused device or
process, or with respect to the “function, way, result” test
when such evidence is presented to support a finding of
infringement under the doctrine of equivalents. Such
evidence must be presented on a limitation-by-limitation
basis.” Texas Instruments, Inc. v. Cypress Semiconductor
Corp., 90 F.3d 1558, 1567 (Fed. Cir. 1996). The same rule
applies in the summary judgment context. AquaTex
Indus., Inc. v. Techniche Solutions, 479 F.3d 1320, 1326
(Fed. Cir. 2007). Here, ACI was required to provide
particularized testimony and linking argument to show
the equivalence of the XM Programming Center and a
plurality of broadcast sources. The only evidence prof-
fered by ACI on the issue of equivalents was the declara-
tion from the inventor Obradovich in which he stated that
the XM Programming Center is, at most, insubstantially
different from the claimed plurality of sources. J.A. 261.
Such generalized testimony as to the overall similarity
between the claims and the accused infringer’s product
from one of the inventors does not suffice to create a
genuine issue of material fact. See Texas Instruments, 90
AMERICAN CALCAR v. AMERICAN HONDA 34
F.3d at 1567. Moreover, we agree with Honda that find-
ing a signal from one source to be equivalent to “signals
from a plurality of sources” would vitiate that claim
limitation by rendering it meaningless. Such a theory of
equivalence is legally insufficient. See DePuy Spine v.
Medtronic Sofamor Danek, Inc., 469 F.3d 1005, 1017 (Fed.
Cir. 2006). We therefore affirm the district court’s sum-
mary judgment of noninfringement of the Radio patent.
C. Service Provider Patents
ACI argues that the district court imported negative
limitations into the claims of the Service Provider patents
by incorrectly construing the terms “in response to” and
“when.” ACI contends that the term “identifying one of
the plurality of providers in response to the vehicle condi-
tion” simply connotes a cause-and-effect relationship
between the first and second event. Likewise, ACI ar-
gues, the claim language “selecting at least one service
provider for servicing the vehicle when the vehicle needs a
service” requires only that one event happen before the
other. The district court, ACI argues, improperly added a
limitation that there must not be any intervening action
by the user between the two events. Further, ACI con-
tends that the court misread prosecution history to find a
disclaimer that the inventors did not make. In distin-
guishing prior art U.S. Patent 6,240,365 (“Bunn”), ACI
continues, the inventors said nothing about user interven-
tion and only highlighted the fact that the claimed inven-
tion embodied a cause-and-effect relationship. Thus, ACI
continues, the district court erred in concluding that the
patentee had relinquished any intervening steps by the
user, and thus in its summary judgment of noninfringe-
ment.
Honda responds that the district court properly con-
strued the claims to require a cause-and-effect relation-
35 AMERICAN CALCAR v. AMERICAN HONDA
ship. Honda points out that the claim requires that the
processor identify a provider directly in response to a
vehicle condition. Honda contends that the accused
system identifies a service provider only in response to a
user request asking the system to find a service provider,
not in response to the occurrence of any vehicle condition,
and thus does not infringe the Service Provider patents.
As for infringement under the doctrine of equivalents,
Honda argues that the inventors conceded that claim
scope when they distinguished Bunn, in which the identi-
fication by the processor was in response to a user request
rather than to the occurrence of a maintenance condition.
Moreover, Honda argues that the difference between the
claimed system and the accused system in terms of what
causes the identification is substantial.
We agree with the district court’s claim construction
and its finding of prosecution history estoppel. “In re-
sponse to” connotes that the second event occur in reac-
tion to the first event. The language of the claim itself
suggests that when a vehicle condition is detected, the
processing element identifies a provider automatically as
opposed to requiring further user interaction. Further,
the specification fails to disclose any embodiment that
requires any type of user interaction prior to identifica-
tion of a service provider. See, e.g., ’928 patent, col.10
l.68-col.11 l.5. Thus, the court properly construed the
claim terms “in response to” and “when” to require a
cause-and-effect relationship.
Honda’s accused system on the other hand requires a
user to initiate a search for a provider by taking several
steps. The user has not only to detect and select the
message indicating that maintenance is required, but also
has to select one of four options to ask the system to “Find
Nearest Acura Dealer.” Thus, when the user is presented
with identification of the service provider, it is not “in
AMERICAN CALCAR v. AMERICAN HONDA 36
response” to the vehicle condition, as required by the
claims, but rather, in response to user actions. ACI
proposes that we ignore several intervening events that
may or may not occur between the two relevant events.
We are not persuaded to do so.
We also agree with the district court that ACI is
barred from asserting an infringement claim under the
doctrine of equivalents. The doctrine of equivalents
prohibits one from avoiding infringement liability by
making only “insubstantial changes and substitutions . . .
which, though adding nothing, would be enough to take
the copied matter outside the claim, and hence outside the
reach of law.” Graver Tank & Mfg. Co. v. Linde Air Prods.
Co., 339 U.S. 605, 607 (1950). But the doctrine of prose-
cution history estoppel limits the doctrine of equivalents
when an applicant makes a narrowing amendment for
purposes of patentability, or clearly and unmistakably
surrenders subject matter by arguments made to an
examiner.” Salazar v. Procter & Gamble Co., 414 F.3d
1342, 1344 (Fed. Cir. 2005) (citing Festo Corp. v. Shoketsu
Kinzoku Kogyo Kabushiki Co., 535 U.S. 722, 736 (2002)).
During prosecution of the Service Provider patents, the
examiner rejected certain claims as anticipated by Bunn.
In distinguishing Bunn to the examiner, the ACI inven-
tors stated:
Bunn further teaches away from the claimed in-
vention in that any service provider identified in
Bunn in a POS transaction is in response to a ve-
hicle renter’s selection of a service shown on a dis-
play, rather than in response to a vehicle condition
determined by a processor, based on a measure
concerning the vehicle as in the claimed invention.
J.A. 1020-21 (emphases added). That remark to the
Patent Office clearly and unmistakably surrendered
37 AMERICAN CALCAR v. AMERICAN HONDA
subject matter that ACI now seeks to claim, i.e., where
the identification of service providers is brought about in
response to the user. ACI argues that what its inventors
distinguished was simply the cause-and-effect relation-
ship resulting from the determination of a vehicle condi-
tion by the processors. We disagree. Bunn employed a
similar local control system in the vehicle to monitor
vehicle condition and also allowed the user to search and
select service providers on the system. The inventors’
disclaimer was thus broad, distinguishing the claimed
invention as one where the identification of service pro-
viders is solely in response to a vehicle condition deter-
mined by a processor. See Sextant Avionique, S.A. v.
Analog Devices, Inc., 172 F.3d 817, 826-27 (Fed. Cir. 1999)
(“The scope of estoppel, i.e., what subject matter has been
surrendered during prosecution by the patentee, is to be
viewed from the vantage point of a reasonable competitor
of the patentee.”). Thus, we agree with the district court’s
finding of noninfringement of ACI’s Service Provider
patents by Honda’s accused systems.
III. Honda’s Cross-Appeal
Invalidity of the ’759 Notable Condition Patent
We review the denial of a JMOL motion de novo, ap-
plying the law of the regional circuit, in this case, the
Ninth Circuit. Harris Corp. v. Ericsson lnc., 417 F.3d
1241, 1248 (Fed. Cir. 2005). Under Ninth Circuit law, a
jury verdict “must be upheld if it is supported by substan-
tial evidence . . . even if it is also possible to draw a con-
trary conclusion.” Pavao v. Pagay, 307 F.3d 915, 918 (9th
Cir. 2002). JMOL should be granted only if the verdict is
against the great weight of the evidence, or it is quite
clear that the jury has reached a seriously erroneous
result. Hangarter v. Provident Life & Acc. Ins. Co., 373
F.3d 998, 1005 (9th Cir. 2004). Section 102(b) provides
AMERICAN CALCAR v. AMERICAN HONDA 38
that “[a] person shall be entitled to a patent unless . . . the
invention was . . . described in a printed publication in
this or a foreign country . . . more than one year prior to
the date of the application for patent in the United
States.” 35 U.S.C. § 102(b). To be anticipatory, a refer-
ence must describe, either expressly or inherently, each
and every claim limitation and enable one of skill in the
art to practice an embodiment of the claimed invention
without undue experimentation. In re Gleave, 560 F.3d
1331, 1334 (Fed. Cir. 2009).
Honda argues that the district court erred in the con-
struction of the claim term “prompting a user to select the
option” by requiring that the system prompt not just any
option, but the one option that would provide coping
information. Honda argues that the court improperly
required something more than the mere display of the
option and that there is no support for that in the specifi-
cation. Under the correct construction, Honda contends
that Nihei does exactly what the patented system does—it
displays a button to bring up coping information and
provides an audible alert. That sufficiently prompts a
knowledgeable user to obtain coping information as
required by the asserted claims. Likewise, Honda contin-
ues, Mitsubishi displays a selectable button for coping
information and prompts the user to select it by providing
detailed language as well as displaying it persistently
until the user selects it. Honda therefore argues that both
Nihei and Mitsubishi anticipate the ’759 patent claims
and that substantial evidence does not support the jury’s
verdict to the contrary.
ACI responds that the claim language is unambiguous
and does not require a knowledgeable user, and thus that
it was proper for the district court to conclude that the
prompt be for the specific coping option and no other
option on the screen. ACI points out that in the Nihei
39 AMERICAN CALCAR v. AMERICAN HONDA
warning screen, “key 7” is highlighted, accompanied by a
continuous alarm sound, prompting the user to dismiss
the alert. Thus, ACI argues, Nihei does not teach the
limitation in dispute. ACI further contends that because
intuitively touching the warning button in Mitsubishi
clears the warning, that prior art also does not disclose
the prompting limitation. ACI argues that it presented
substantial evidence to support its position at the trial
and that the jury’s finding should be upheld.
We agree with Honda that the district court erred in
its claim construction of the “prompting” limitation and
that under a proper construction Nihei anticipates the
asserted ’759 patent claims. In initially denying Honda’s
motion for summary judgment of invalidity, the court held
that the “prompting” limitation of the ’759 patent claims
was not met by Nihei. Notable Condition SJ Op. at 8. In
doing so, the court concluded that the claims required
that the user be prompted to select “the” coping option,
not just “any” option. Id. We disagree because there is
nothing in the specification that supports such a reading
of the claims. The only embodiment disclosed by the
inventors indicates that the TIP option, the option that
leads to the coping information, is displayed in the same
manner as various other options. See ’759 patent, fig. 13.
There is no indication in the written description that the
TIP option is different from any of the other options in
such a manner that it prompts the user to select it over
other options for obtaining coping information.
The district court mistakenly read the word “the” in
the phrase “prompting . . . to select the option” to mean
“only that” option, whereas that word simply refers back
to the prior phrase “an option . . . is provided.” Notable
Condition SJ Op. at 8. Honda points out that ACI itself,
in making infringement contentions against Honda’s
system, asserted that the “prompting” was met simply
AMERICAN CALCAR v. AMERICAN HONDA 40
because the user is moved to select one of the two options
on Honda’s warning screen. J.A. 1549-50. Although the
court agreed with ACI at that stage, it erred in its claim
construction at the summary judgment stage by import-
ing an unnecessary limitation into the ’759 patent claims.
The court’s subsequent jury charge, and therefore its
JMOL ruling on the issue of validity, relied on the court’s
erroneous construction. JMOL Op. at 2.
Under the correct claim construction, it is clear that
Nihei meets the only disputed limitation of the asserted
claims. In Nihei, the warning screen flashes back and
forth with the normal screen giving a visual indication to
the user that there is an issue. J.A. 1346. On the warn-
ing screen is button 6 that allows the user to quickly
obtain coping information. In addition to the flashing, the
warning screen is accompanied by an audible alarm as in
the disclosed embodiment of the ’759 patent. J.A. 1345.
Nihei explains that “providing a screen switching key 6 on
the warning screen 2 and causing the warning screen 2 to
switch to the detail screen 3 by pushing the screen switch-
ing key 6, necessary information can be extracted without
the complicated operations previously required, and the
burden on the monitoring person can be reduced.” J.A.
1467. That is all that is needed to meet the disputed
limitation in the ’759 patent claims.
ACI presented expert testimony that the warning
sound in Nihei would be so loud that it would cause the
user to decline the option by pressing reset button 7.
That assertion was based on the expert’s belief that Nihei
was intended for use in nuclear power facilities where a
loud alarm may be required. However, we see nothing in
Nihei that suggests an annoying volume of alarm that
would prompt the user to decline the option. The actual
application that Nihei may have been employed in is
irrelevant to the issue of anticipation. As long as the
41 AMERICAN CALCAR v. AMERICAN HONDA
reference discloses all of the claim limitations and enables
the subject matter that falls within the scope of the claims
at issue, the reference anticipates. In re Gleave, 560 F.3d
at 1334. Moreover, the ’759 patent itself teaches that in
selecting an alarm sound, the user should preferably
choose one that connotes “urgency or even emergency.”
J.A. 1406. Thus, we find ACI’s expert testimony to be
contrary to the express teachings of the prior art.
In conclusion, the jury’s verdict that the ’759 patent is
not invalid as anticipated by Nihei is against the great
weight of the evidence, and it is quite clear to us that,
based on the district court’s erroneous claim construction,
the jury reached a erroneous result. We therefore reverse
the district court’s denial of Honda’s JMOL motion on the
invalidity of the ’759 patent and hold that the asserted
claims of the ’759 patent are invalid as anticipated.
CONCLUSION
We have considered ACI’s remaining arguments and
do not find them persuasive. Accordingly, the judgment of
the district court is
AFFIRMED IN PART, REVERSED IN PART,
VACATED IN PART, AND REMANDED.
COSTS
Costs to Honda.