United States Court of Appeals
for the Federal Circuit
__________________________
BETTCHER INDUSTRIES, INC.,
Plaintiff-Cross Appellant,
v.
BUNZL USA, INC.,
Defendant,
and
BUNZL PROCESSOR DISTRIBUTION, LLC,
Defendant-Appellant.
__________________________
2011-1038, -1046
__________________________
Appeals from the United States District Court for the
Northern District of Ohio in case no. 08-CV-2423, Judge
Jack Zouhary.
__________________________
Decided: October 3, 2011
__________________________
THOMAS H. SHUNK, Baker & Hostetler LLP, of Cleve-
land, Ohio, argued for the plaintiff-cross appellant. With
him on the brief was DAVID E. KITCHEN. Of counsel on the
brief was GEORGE L. PINCHAK, Tarolli, Sundheim, Covell
& Tummino, LLP, of Cleveland, Ohio.
2 BETTCHER INDUSTRIES v. BUNZL USA
ALAN H. NORMAN, Thompson Coburn LLP, of St.
Louis, Missouri, argued for the appellant. With him on
the brief were JASON M. SCHWENT, NICHOLAS J. LAMB and
MICHAEL L. NEPPLE.
__________________________
Before BRYSON, LINN, and REYNA, Circuit Judges.
Opinion for the court filed by Circuit Judge LINN.
Dissenting opinion filed by Circuit Judge REYNA.
LINN, Circuit Judge.
Following the entry of judgment of non-infringement
and no invalidity in a lawsuit brought against Bunzl
Processor Distribution, LLC (“Bunzl”) and Bunzl USA,
Inc. (no longer a party) by Bettcher Industries, Inc. (“Bet-
tcher”) in the Northern District of Ohio for infringement
of U.S. Patent No. 7,000,325 (“’325 patent”), Bunzl ap-
peals from a denial of its motion for entry of judgment as
a matter of law of invalidity or for a new trial on invalid-
ity. Bettcher cross-appeals from the district court’s re-
fusal to order a new trial on infringement following the
jury’s verdict of non-infringement. For the reasons dis-
cussed below, we affirm in part, vacate in part, and re-
mand.
I. BACKGROUND
A. Bettcher’s ’325 Patent
Bettcher’s asserted ’325 patent, entitled “Low Friction
Rotary Knife,” is directed to a power operated knife used
principally in the meat packing and other commercial
food processing industries and containing a handle on
which is supported an annular rotating blade assembly.
The handle includes a motor and a gear train, and the
BETTCHER INDUSTRIES v. BUNZL USA 3
rotating blade assembly contains an annular blade sup-
port housing attached to the handle and an annular blade
rotatably carried by the housing. ’325 patent col.1 ll.18-
28.
Figures 1 and 2 of the ’325 patent generally depict the
power operated rotary knife (modified for clarity):
In use, an operator holds the handle and swipes the
far end of the annular blade across a piece of meat, for
example, to shave off an unwanted layer that moves up
through the open center of the annulus and falls off.
The claims of the patent are directed to the knife
blade itself. The claimed blade includes an annular
bearing race recessed into a side wall of the blade and
dimensioned to receive a protruding annular bearing
structure of the blade support housing to maintain the
blade in spinning contact with the knife. Figure 9 is a
cross sectional depiction of the rotary knife blade mounted
within the housing and shows the interaction between the
recessed bearing race and the protruding bearing struc-
ture:
4 BETTCHER INDUSTRIES v. BUNZL USA
The ’325 patent explains:
The bearing race 66 receives the bearing structure
47 so that the blade body 50 is secured to the
blade support structure by the bearing race and
bearing structure engagement along bearing loca-
tions that are spaced axially apart and firmly
support the blade against axial and radial shifting
during use. The bearing race 66 extends into the
wall 62 and is spaced axially from the blade sec-
tion 52 in that the surface 64 extends between the
bearing structure 47 and the blade section 52.
The bearing race 66 comprises a [sic] first and
second bearing surfaces 70, 72 that converge pro-
ceeding toward each other. In the illustrated
knife the race extends radially inwardly into the
wall 62 . . . . In the illustrated blade, the surfaces
70, 72 are frustoconical. As shown, they are
joined at their radially inner ends by a short axi-
ally extending annular surface 74 that serves to
minimize the race depth and does not engage the
bearing structure 47.
Id. col.5 ll.10-30.
BETTCHER INDUSTRIES v. BUNZL USA 5
Claim 1 of the ’325 patent reads:
1. A rotary knife blade comprising:
a rotatable annular body defining first and sec-
ond axial ends, said body disposed about a cen-
tral axis; and,
an annular blade section rotatable with the an-
nular body and projecting axially from the first
axial end of said body;
said body comprised of a wall defining a radially
outer surface disposed between said first and
second axial ends, and an annular bearing race
in said surface and extending radially into said
wall, said bearing race spaced axially from said
blade section and comprising a first surface
that converges proceeding away from said sec-
ond axial end, and a second surface that con-
verges proceeding toward said first surface,
said first and second surfaces defining first and
second bearing faces spaced axially apart,
wherein both of said bearing faces are frusto-
conical.
Id. col.9 ll.15-31 (emphases added). Claim 1 is exemplary
of the claims at issue, with the following variations in
relevant claim terms: Claims 6 and 7 replace “bearing
race” with “bearing race opening” and claim 8 replaces
“bearing race” with “groove” and “bearing face” with
“bearing surface.” Id. col.9 l.42 - col.10 l.37.
6 BETTCHER INDUSTRIES v. BUNZL USA
B. Proceedings at the District Court
1. Bunzl’s Invalidity Allegations
i. Pre-1998 Bettcher Blades
Bunzl asserted at trial that the ’325 patent was inva-
lid as anticipated by prior art Bettcher blades that, while
they contained a different bearing race configuration,
included chamfered corners argued as inherently capable
of being used as a bearing race. Bettcher countered that
the pre-1998 blades did not anticipate the claims of the
’325 patent because they lacked the frustoconical bearing
faces or surfaces required by each claim of the ’325 pat-
ent. The following image provides a cross sectional view
of the pre-1998 Bettcher blade:
Cross-Appellant Br. 21. As the image reveals, the pre-
1998 blade includes two chamfers at the intersections of
the bearing race walls and the outer surface of the blade
body. According to Bunzl, these chamfers inherently
BETTCHER INDUSTRIES v. BUNZL USA 7
satisfy the frustoconical bearing face limitations because
of their shape and their capability “of being in rolling or
sliding contact with a support member.” Appellant Br. 39.
Bunzl’s position was prefaced by statements made
during claim construction. In its claim construction brief,
Bunzl asserted that “bearing surface” should be construed
to mean “slideable support surface.” Cross-Appellant Br.
4, J.A. 307T. Bunzl also asserted that “bearing race”
should be construed to mean “channel configured to
slideably support a rotary knife blade.” J.A. 307S (em-
phasis added). As to both “bearing surface” and “bearing
race,” Bunzl did not provide argument in its brief except
to say that “[t]his term is not commonly used by lay
persons and jurors” and that failing to construe each term
at all would be improper. J.A. 307S, 307T. Bettcher
contended that these terms did not require separate
construction.
At the Markman hearing in June 2009, the district
court stated that the “bearing face,” “bearing surface,”
and “bearing race” issues were inadequately presented in
the briefs. Later, in its claim construction order in Sep-
tember 2009, the district court stated that “[d]uring [the
Markman] hearing, the dispute between the parties was
narrowed to one disputed definition: namely, ‘frustoconi-
cal’ [and b]oth sides agree that ‘only disputed claim terms
need to be construed by the Court.’” Markman Order at 1,
Bettcher Indus., Inc. v. Bunzl USA, Inc. et al., No. 3:08 CV
2423 (N.D. Ohio Sept. 9, 2009), ECF No. 115. In March
2010, the court issued an Amended Case Schedule which
extended through trial, and made no mention of any claim
construction proceedings. This new schedule was based
on a request jointly submitted by the parties.
In June 2010, a year after the Markman hearing,
Bunzl requested a jury instruction that “bearing surface”
and “bearing face” should be understood to mean “surface
8 BETTCHER INDUSTRIES v. BUNZL USA
capable of being in rolling or sliding contact with a sup-
port member.” J.A. 3285. Bunzl also requested a jury
instruction that “annular bearing race,” “annular bearing
race opening,” and “groove” all mean “groove.” Id.
Bunzl’s requested constructions included no argument.
Rather than adopt Bunzl’s proposals, the court told the
jury to “give the rest of the words in the claims their
ordinary meaning in the context of the patent specifica-
tion and prosecution history.” Trial Tr. 1429:2-4. The
court commented that “[t]he only claim construction
provided to the Court at the Markman hearing was frus-
toconical. There was no request for additional definitions,
and I believe that request for additional definitions on the
eve of or during trial is too late.” Id. 1629:3-7.
The district court also presented the jury with the fol-
lowing instruction:
To anticipate a claim of the ’325 patent, the pre-
1998 blade must contain every limitation of that
particular claim. Anticipation requires that there
is no difference between claims of the ’325 patent
and the pre-1998 Bettcher blade, as viewed by a
person of ordinary skill in the art.
Trial Tr. 1434:17-23. Bunzl objected to the second sen-
tence of the instruction because “the only prior art at
issue with respect to the anticipation argument are prior
art blades that were on sale by Bettcher more than a year
before the effective filing date of the ’325 patent,” and
because the statement was “not consistent with In re
Schreiber.” Id. 1624:14-19.
At trial, Bunzl’s expert, Dr. King, testified that he had
created a mockup rig with a rotating blade configured like
the pre-1998 blades and using only the chamfers as
bearing surfaces. Bettcher countered with evidence that a
person of skill in the art would not consider the chamfers
BETTCHER INDUSTRIES v. BUNZL USA 9
to be bearing faces or part of a bearing race, and contested
the chamfers’ ability to function as such based on the
testimony of its expert.
Bunzl moved for judgment as a matter of law of inva-
lidity after the close of evidence, arguing that each limita-
tion was admittedly met and that the claims were
inherently anticipated. That motion was denied. After
the verdict, Bunzl renewed its motion for judgment as a
matter of law and brought its alternative motion for a
new trial on invalidity. Bunzl argued that “Bettcher’s
contention that a person of ordinary skill in the art would
not have recognized that the chamfered surfaces of the
pre-1998 blades could be used as bearing surfaces is
legally irrelevant” and that satisfaction of the bearing
face limitation required only that “the chamfered surfaces
are frustoconically shaped.” J.A. 3338. The district court
denied Bunzl’s motion, commenting that “Bunzl waived
any argument as to other terms not addressed in this
Court’s Markman Order . . . [and that] evidence at trial
was sufficient to support the jury’s verdict of patent
validity.” Order at 1-2, Bettcher, No. 3:08 CV 2423 (N.D.
Ohio Sept. 16, 2010), ECF No. 261 (“Sept. 16 Order”).
ii. Section 315 Estoppel
After Bettcher filed suit, and while proceedings were
pending before the district court, Bunzl requested inter-
partes reexamination of the ’325 patent in the United
States Patent and Trademark Office (“Patent Office”). In
due course, the reexamination was granted and the
examiner ultimately declined to adopt the grounds of
rejection proposed by Bunzl and issued a Right of Appeal
Notice. Bunzl appealed to the Board of Patent Appeals
and Interferences (“Board”). At the time of the filing of
the appeal to this court, the reexamination was pending
before the Board, which has since affirmed the examiner’s
10 BETTCHER INDUSTRIES v. BUNZL USA
conclusions affirming the validity of all claims subject to
reexamination. Bunzl Processor Distrib. LLC v. Patent of
Bettcher Indus., Inc., Appeal 2011-007091 (B.P.A.I. July
28, 2011).
When the examiner issued the Right of Appeal Notice,
Bettcher requested that the district court exclude certain
of Bunzl’s invalidity references under 35 U.S.C. § 315(c)
on the ground that the examiner had already determined
that they did not invalidate the claims of the ’325 patent
and therefore, according to Bettcher, Bunzl was estopped
from asserting these references in district court. Accord-
ing to Bettcher, the § 315 estoppel took effect as soon as
the examiner finished the reexamination and the Right of
Appeal Notice was sent to the patentee. The district court
agreed that the examiner had “issued a ‘final determina-
tion’ in the re-examination proceedings,” and granted
Bettcher’s request to exclude the references. Bunzl in-
cluded the exclusion of these references as a separate
basis for its new trial motion. The district court denied
Bunzl’s motion, noting that “this issue is one of first
impression.” Sept. 16 Order at 1.
2. Bettcher’s Infringement Allegations
Bettcher accused Bunzl of infringement based on
Bunzl’s manufacture and sale of rotary knife blades
marketed as replacement blades for use in rotary knives
manufactured and sold by Bettcher. Bunzl’s blades lack
the frustoconical bearing faces described in the ’325
patent and recited in the ’325 patent claims and, instead,
contain a completely rounded bearing race. According to
Bettcher, once Bunzl’s blades are installed and put into
use, their round bearing faces wear until they become
frustoconical. Therefore, Bettcher accused Bunzl of
indirect infringement based on this “wear” theory. The
BETTCHER INDUSTRIES v. BUNZL USA 11
following image depicts the accused Bunzl blade, installed
in a support housing:
Cross-Appellant Br. 13.
At trial, Bunzl called as its witness Mark Stallion
(“Stallion”), a patent lawyer, from whom Bunzl allegedly
received an unwritten opinion in 2007 counseling that
Bettcher was unlikely to win an infringement suit based
on its “wear” theory. Bunzl offered Stallion’s testimony to
prove Bunzl’s state of mind for inducement and willful-
ness. Bettcher moved to exclude Stallion’s testimony, but
the district court allowed Stallion to testify as to his 2007
opinion. At trial, Stallion testified that he had informed
Bunzl that it appeared Bettcher was asserting a theory of
indirect infringement and had conceded that the Bunzl
blades did not infringe at the time of sale. Stallion testi-
fied that he informed Bunzl that Bettcher’s theory of
indirect infringement required either an absence of sub-
stantial non-infringing use (contributory infringement) or
intent to cause the infringing acts (inducement) and that,
in his estimation, Bunzl lacked both. Stallion also testi-
fied that he informed Bunzl that as a matter of fact it was
unlikely that the Bunzl bearing races actually wore to the
claimed frustoconical shape when installed and used.
12 BETTCHER INDUSTRIES v. BUNZL USA
Counsel for Bettcher did not object to the above quoted
statements during Stallion’s direct examination except to
request a side-bar, after which the judge emphasized to
the jury that “[y]our role in this case is to determine
whether Mr. Stallion gave competent advice and whether
Bunzl could rely on it . . . . [O]nly the law as given to you
by me should be considered by you in deciding the issues
in this case.” Trial Tr. 1080-1081.
At closing argument, counsel for Bunzl stated with
regard to Stallion’s testimony that: “We called Mr. Stal-
lion, who you heard is a patent lawyer. Patent lawyers
talk about what patent lawyers talk about . . . . The only
patent lawyer that testified in this case is Mr. Stallion,
and that’s what he told you . . . . Mr. Stallion put it in
legal for you . . . . He said there’s no way these immedi-
ately can wear.” Id. 1470-1475. Counsel for Bettcher did
not object to counsel for Bunzl’s closing remarks regard-
ing Stallion’s testimony.
After the close of evidence, the district court in-
structed the jury: “When considering whether Bunzl knew
or should have known that the induced actions would
constitute infringement . . . you may consider . . . whether
or not Bunzl obtained the advice of a competent law-
yer . . . [but t]he applicable law is the law that I have
given you, which may or may not be the law relied on by
Bunzl’s attorney.” Id. 1431:21 - 1432:11.
The jury returned a verdict of non-infringement. Bet-
tcher moved for a new trial, arguing prejudice based on
Stallion’s testimony and Bunzl’s closing argument. In
denying the motion, the court stated that “[t]he testimony
was limited and appropriate, and presented with a cau-
tionary instruction . . . [and that] Bunzl’s closing argu-
ment, while perhaps stretching the reach of Stallion’s
testimony, does not warrant reversal, as the jury was
BETTCHER INDUSTRIES v. BUNZL USA 13
further cautioned, several times, that comments by coun-
sel were not evidence.” Sept. 16 Order at 2.
C. The Present Appeal
Bunzl timely appealed the denial of judgment as a
matter of law or a new trial on the issue of invalidity and
Bettcher timely cross-appealed the denial of its motion for
a new trial on the issue of infringement. This court has
jurisdiction pursuant to 28 U.S.C. § 1295(a)(1).
II. DISCUSSION
A. Standard of Review
In reviewing a district court’s disposition of a motion
for judgment as a matter of law or a new trial motion, this
court applies the law of the regional circuit where the
district court sits. Siemens Med. Solutions USA, Inc. v.
Saint-Gobain Ceramics & Plastics, Inc., 637 F.3d 1269,
1277 (Fed. Cir. 2011). The Sixth Circuit reviews denial of
a motion for judgment as a matter of law de novo. Gem-
tron Corp. v. Saint-Gobain Corp., 572 F.3d 1371, 1379
(Fed. Cir. 2009). In the Sixth Circuit, judgment as a
matter of law is appropriate “only if, in viewing the evi-
dence in the light most favorable to the nonmoving party,
reasonable minds could come to but one conclusion, in
favor of the moving party.” Imwalle v. Reliance Med.
Prods., Inc., 515 F.3d 531, 543 (6th Cir. 2008) (quotation
omitted). “In reviewing the district court’s decision, [the
court] may not weigh the evidence, pass on the credibility
of witnesses, or substitute [its] judgment for that of the
jury.” Id. (quotation omitted).
The Sixth Circuit reviews denial of a motion for new
trial for abuse of discretion. Gemtron, 572 F.3d at 1379.
14 BETTCHER INDUSTRIES v. BUNZL USA
Under Sixth Circuit law, “there is no abuse of discretion
unless the court has a definite and firm conviction that
the trial court committed a clear error of judgment.”
Mich. First Credit Union v. Cumis Ins. Soc., Inc., 641 F.3d
240, 245 (6th Cir. 2011) (quotation omitted). “[I]f the
verdict is supported by some competent, credible evidence,
a trial court will be deemed not to have abused its discre-
tion in denying the motion.” Id. at 246 (quotation omit-
ted).
This court reviews a district court’s decision whether
to exclude evidence under the law of the regional circuit.
Siemens, 637 F.3d at 1284. The Sixth Circuit reviews a
district court’s decision to admit or exclude evidence for
abuse of discretion. United States v. Geisen, 612 F.3d 471,
495 (6th Cir. 2010). A district court abuses its discretion
in this regard when it bases its decision on errors of law
or clearly erroneous factual determinations. Id.
[E]ven if the lower court’s decision amounts to an
abuse of discretion, it will not be disturbed on ap-
peal if it did not result in a substantial injustice,
as no error in the admission or exclusion of evi-
dence is ground for reversal or granting a new
trial unless refusal to take such action appears to
the court to be inconsistent with substantial jus-
tice.
Zamlen v. City of Cleveland, 906 F.2d 209, 216 (6th Cir.
1990) (quotation omitted).
The legal sufficiency of jury instructions on an issue of
patent law is a question of Federal Circuit law which this
court reviews de novo, ordering a new trial on that basis
only when errors in the instructions as a whole clearly
misled the jury. Siemens, 637 F.3d at 1278. “In review-
ing jury instructions, the full trial record and the jury
instructions in their entirety must be examined because
instructions take on meaning from the context of what
BETTCHER INDUSTRIES v. BUNZL USA 15
happened at trial, including how the parties tried the case
and their arguments to the jury.” Therasense, Inc. v.
Becton, Dickinson & Co., 593 F.3d 1325, 1331 (Fed. Cir.
2010). Thus, a jury verdict generally will not be set aside,
on motion for judgment as a matter of law or new trial,
based on erroneous instructions unless the movant can
establish that the instructions were legally erroneous and
that the errors had a prejudicial effect. Id. “More specifi-
cally, a party seeking to alter a judgment based on erro-
neous jury instructions must establish that (1) it made a
proper and timely objection to the jury instructions, (2)
those instructions were legally erroneous, (3) the errors
had prejudicial effect, and (4) it requested alternative
instructions that would have remedied the error.” NTP,
Inc. v. Research In Motion, Ltd., 418 F.3d 1282, 1311-12
(Fed. Cir. 2005) (quotation omitted).
Statutory interpretation is a question of law that this
court reviews de novo. Pequignot v. Solo Cup Co., 608
F.3d 1356, 1361 (Fed. Cir. 2010).
B. Anticipation Based on Bettcher Prior Art
Bunzl argues that the district court erred by refusing
to enter judgment of invalidity as a matter of law, and,
alternatively, by refusing to grant a new trial on the issue
of anticipation by the pre-1998 Bettcher blades. We
disagree and address each argument in turn.
1. Judgment as a Matter of Law
Bunzl argues that the chamfers are inherently capa-
ble of serving as bearing faces, that no evidence contra-
dicts this basic capability, and that no other claim
limitation is in dispute as to the pre-1998 Bettcher blades.
According to Bunzl, it is irrelevant whether anyone ever
actually used the chamfers as bearing faces of a bearing
16 BETTCHER INDUSTRIES v. BUNZL USA
race, just as it is irrelevant whether a person of skill in
the art ever would have appreciated this alleged capabil-
ity. According to Bunzl, the only thing the claim requires
of the “bearing face” is that it be capable of bearing,
without any restrictions on quality or duration, any actual
useful functionality, or any structural properties that
would have been recognizable to a person of ordinary skill
in the art. Bunzl asserts that its expert’s mockup left no
factual issue for the jury to decide and, by definition, no
evidence sufficient to support the jury’s verdict.
Bettcher counters that the engineering drawings,
which were the sole evidence of the actual pre-1998
Bettcher blades, made it clear that the feature Bunzl
relies upon is a set of chamfers whose purpose was “to
provide clearance and avoid contact with a mating part –
the precise opposite of Bunzl’s theory that the chamfers
were inherently bearing surfaces.” Cross-Appellant Br.
29. According to Bettcher, all witnesses agreed that the
actual engineering specification established that the
disputed features were chamfers. Moreover, the wit-
nesses disagreed about whether the chamfers would be
able to serve as bearing faces. Bettcher argues that
inherent anticipation requires that the chamfers always
necessarily function as bearing faces.
In each asserted claim of the ’325 patent, the bearing
faces must be part of the bearing race or groove. Whether
or not the chamfers of the pre-1998 blades could be capa-
ble of serving as bearing faces in some hypothetical cir-
cumstances, the jury had more than sufficient evidence to
support a finding that the chamfers found in the pre-1998
Bettcher blade were not part of the bearing race within
the meaning of that term in the ’325 patent.
While Bunzl struggles to characterize this as a case of
“inherency,” it is nothing of the sort. Inherency can be
established when “prior art necessarily functions in
BETTCHER INDUSTRIES v. BUNZL USA 17
accordance with, or includes, the claimed limitations.” In
re Cruciferous Sprout Litig., 301 F.3d 1343, 1349 (Fed.
Cir. 2002). “Inherency, however, may not be established
by probabilities or possibilities. The mere fact that a
certain thing may result from a given set of circumstances
is not sufficient.” In re Oelrich, 666 F.2d 578, 581 (CCPA
1981). Here, Bunzl attempts to characterize one structure
(chamfers) as a completely different structure (a bearing
race) based on a hypothetical configuration of surrounding
structures disclosed nowhere in the prior art (expressly or
inherently) and suggested by nothing in the record. A
“bearing face,” and the bearing race of which it must be a
part, may have both structural and functional limitations,
but the functional limitation requires more than the
ability to bear for a short period of time at an unusually
slow speed. Bunzl failed to demonstrate that the pre-
1998 blades were capable of anything more, and the jury
was therefore fully entitled to reject Bunzl’s argument in
light of the evidence at trial. Bunzl’s reliance on Schrei-
ber to the contrary is misplaced.
Ultimately, the prior art at issue in this case shows
what it shows, and the jury was free to draw whatever
conclusions manifested themselves from the evidence
presented. The evidence showed that the chamfers were
designed to remove the sharp corners and not to interact
with each other to collectively perform any function, let
alone the function of a bearing race. And the undisputed
fact is that no one ever used the chamfers to bear any-
thing prior to the critical date of the ’325 patent. The
speculative notion that by happenstance the chamfers
might, under hypothetical circumstances, be capable of
operating as a bearing race is an insufficient basis to
mandate overturning the jury’s verdict. For these rea-
sons, Bunzl was not entitled to judgment as a matter of
law.
18 BETTCHER INDUSTRIES v. BUNZL USA
2. New Trial on Anticipation by the Bettcher Blades
Bunzl argues in the alternative that it is entitled to a
new trial on the issue of invalidity because of the district
court’s refusal to adopt its proposed construction of “bear-
ing face” and “bearing surface” and because the district
court instructed the jury that anticipation requires that
there be no difference between the prior art and the
claimed invention as viewed by one of ordinary skill in the
art. Again, we disagree, and address each argument in
turn.
i. Claim Construction
According to Bunzl, it asked the district court to con-
strue “bearing face” and “bearing surface” to mean “sur-
face capable of being in rolling or sliding contact with a
support member.” Bunzl argues that if “the jury had been
so instructed, it might have understood that a surface
constitutes a bearing surface if it has certain capabilities,
regardless of whether the surface had ever been used or
intended to be used to perform such capabilities.” Appel-
lant Br. 39 (emphasis added). Bunzl argues that not
construing these terms violated 02 Micro International
Ltd. v. Beyond Innovation Technology Co., 521 F.3d 1351
(Fed. Cir. 2008). According to Bunzl, “[i]f the term . . .
had been properly construed . . . then it would have been
undisputed that the chamfered surfaces constitute bear-
ing surfaces and Bettcher’s pre-1998 blades are anticipa-
tory prior art.” Appellant Br. 41. Bettcher counters that
Bunzl abandoned this issue and that substantial evidence
supported the verdict with or without the proposed con-
structions.
Bunzl’s argument lacks merit. As described above,
Bunzl had ample opportunity to seek construction of the
“bearing face” limitation. Here, the parties agreed to a
BETTCHER INDUSTRIES v. BUNZL USA 19
schedule of disclosures. The district court issued a
Markman order premised on the express belief that there
were no other claim construction disputes. Bunzl said
nothing. And then, a year after the Markman hearing,
after submitting a new joint schedule that contained
nothing about claim construction, Bunzl asked for a new
construction. Under the circumstances of this case, the
district court did not abuse its discretion in holding that
Bunzl could not add new claim construction theories on
the eve of trial. Moreover, because the jury would have
been free to determine that the chamfers were simply not
the parts of the bearing race that had the so-called “capa-
bility,” as discussed above, Bunzl’s proposed construction
would have changed nothing. The court did not err in
declining to construe these terms.
ii. Jury Instructions
As stated above, the district court instructed the jury
that:
To anticipate a claim of the ’325 patent, the pre-
1998 blade must contain every limitation of that
particular claim. Anticipation requires that there
is no difference between claims of the ’325 patent
and the pre-1998 Bettcher blade, as viewed by a
person of ordinary skill in the art.
Trial Tr. 1434:17-23. In that instruction, Bunzl objects to
the phrases “as viewed by a person of ordinary skill in the
art” and “no difference.” This court addresses each in
turn.
a. “as viewed by a person of ordinary skill in the art”
Bunzl argues that the district court’s instruction to
the jury that prior art must be understood “as viewed by
20 BETTCHER INDUSTRIES v. BUNZL USA
one of ordinary skill in the art” is contrary to this court’s
inherency precedent and potentially misled the jury by
excluding the possibility of an unappreciated inherent
feature. Bunzl relies on In re Cruciferous Sprout Litiga-
tion, 301 F.3d at 1349 (“Inherency is not necessarily
coterminous with knowledge of those of ordinary skill in
the art . . . [who] may not recognize the inherent charac-
teristics or functioning of the prior art.” (quotation omit-
ted)), In re Schreiber, 128 F.3d 1473 (Fed. Cir. 1997), and
other cases, to support its view. According to Bunzl, the
perspective of a person of ordinary skill in the art is
irrelevant to inherency. Bunzl states that the jury in-
struction meant that “the jury could not have found
anticipation of the claims unless it was also persuaded
that before the critical date . . . a person of ordinary skill
in the art had understood that the pre-1998 blades could
have so functioned.” Appellant Br. 37 (emphasis added).
Bettcher counters by citing Scripps Clinic & Research
Foundation v. Genentech, Inc., 927 F.2d 1565, 1576 (Fed.
Cir. 1991) overruled in part on other grounds by Abbott
Labs v. Sandoz, Inc., 566 F.3d 1282, 1293 (Fed. Cir. 2009)
(anticipation requires there to be “no difference between
the claimed invention and the reference disclosure as
viewed by a person of ordinary skill in the art.” (emphasis
added)), and other cases, to support the jury instruction.
Bettcher also argues that Bunzl’s own jury instruction
included the same language, and that Bunzl thus effec-
tively admitted that the instruction was correct.
As this court has previously explained:
[a] jury verdict will be set aside, based on errone-
ous jury instructions, if the party seeking to set
aside the verdict can establish that those instruc-
tions were legally erroneous, and that the errors
had prejudicial effect. More specifically, a party
seeking to alter a judgment based on erroneous
BETTCHER INDUSTRIES v. BUNZL USA 21
jury instructions must establish that (1) it made a
proper and timely objection to the jury instruc-
tions, (2) those instructions were legally errone-
ous, (3) the errors had prejudicial effect, and (4) it
requested alternative instructions that would
have remedied the error. Prejudicial legal error
exists when it appears to the court [that the error
is] inconsistent with substantial justice. However,
when the error in a jury instruction could not
have changed the result, the erroneous instruction
is harmless. . . . [A] reversal . . . is not available to
an appellant who merely establishes error in in-
structions . . . . Where the procedural error was
‘harmless,’ i.e., where the evidence in support of
the verdict was so overwhelming that the same
verdict would necessarily be reached absent the
error, or the error was cured by an instruction, a
new trial would be mere waste and affirmance of
the judgment is required.
NTP, 418 F.3d at 1311-12 (quotations omitted).
Bunzl has failed to establish that the jury instruction
was wrong or that it suffered any prejudice. As noted
above in connection with Bunzl’s bid for judgment as a
matter of law, the evidence in this case was such that a
reasonable jury could have found that the chamfers in the
Bettcher blades were not bearing faces of a bearing race
as viewed from any perspective, be that a lay person’s, an
expert’s, or an ordinarily skilled artisan’s. Bunzl’s only
argument that the jury instruction was even remotely
problematic, to say nothing of erroneous, rests entirely on
the premise that this is a case of inherent anticipation.
For the reasons already explained above, it is not.
Bunzl has not shown that the language from Scripps
caused any confusion when applied by the jury to the facts
of this case. Therefore, Bunzl has not satisfied the four
22 BETTCHER INDUSTRIES v. BUNZL USA
part test elaborated in NTP, 418 F.3d at 1311-12, to
disturb a judgment based on an erroneous jury instruc-
tion. Moreover, Bunzl has not mustered any evidence
sufficient to overcome the substantial deference due a
trial court in ruling on motions for new trial. “[I]f the
verdict is supported by some competent, credible evidence,
a trial court will be deemed not to have abused its discre-
tion in denying the motion.” Mich. First Credit Union,
641 F.3d at 246 (quotation omitted). The district court
did not abuse its discretion in denying Bunzl’s motion on
this ground.
b. “no difference”
Bunzl also argues that the district court erred by in-
structing the jury that anticipation required that there be
“no difference” between the prior art and the claimed
invention. Bunzl argues that “the jury instruction may
have mislead [sic] the jury into believing that the pres-
ence of additional features in the pre-1998 Bettcher blade
would preclude a finding of anticipation.” Appellant
Reply Br. 16.
Bunzl’s concern with the “no difference” language is
apparently based on the fear that the jury might have
mistakenly thought that some extraneous feature of the
prior art negated anticipation. No such extraneous fea-
ture appears to have been at issue in this case. So no
showing of prejudice is possible. Bunzl’s remaining
arguments regarding the court’s jury instructions have
been considered and are not persuasive.
We hold that Bunzl is not entitled to a new trial re-
garding invalidity based on the pre-1998 Bettcher blades.
BETTCHER INDUSTRIES v. BUNZL USA 23
C. Estoppel Under 35 U.S.C. § 315
Bunzl contends that the district court wrongly inter-
preted 35 U.S.C. § 315 in holding that its estoppel provi-
sion applied at the conclusion of examination when the
examiner issued the Right of Appeal Notice. Bunzl seeks
a new trial on obviousness on this basis. As discussed
below, this court agrees with Bunzl that the estoppel
provision of § 315 is triggered not when examination is
completed but only after all appeal rights have been
exhausted.
Inter-partes reexamination proceedings are codified at
35 U.S.C. §§ 311-318. Section 315, entitled “Appeal,”
provides:
(a) Patent owner. – The patent owner involved in
an inter partes reexamination proceeding under
this chapter –
(1) may appeal under the provisions of section 134
[i.e., to the Board] and may appeal under the pro-
visions of sections 141 through 144 [i.e., to the
Federal Circuit], with respect to any decision ad-
verse to the patentability of any original or pro-
posed amended or new claim of the patent; and
(2) may be a party to any appeal taken by a third-
party requester under subsection (b).
(b) Third-party requester. – A third-party re-
quester—
(1) may appeal under the provisions of section
134, and may appeal under the provisions of sec-
tions 141 through 144, with respect to any final
decision favorable to the patentability of any
24 BETTCHER INDUSTRIES v. BUNZL USA
original or proposed amended or new claim of the
patent; and
(2) may, subject to subsection (c), be a party to any
appeal taken by the patent owner under the pro-
visions of section 134 or sections 141 through 144.
(c) A third-party requester whose request for an
inter partes reexamination results in an order un-
der section 313 is estopped from asserting at a
later time, in any civil action arising in whole or
in part under section 1338 of title 28, the invalid-
ity of any claim finally determined to be valid and
patentable on any ground which the third-party
requester raised or could have raised during the
inter partes reexamination proceedings. This sub-
section does not prevent the assertion of invalidity
based on newly discovered prior art unavailable to
the third-party requester and the Patent and
Trademark Office at the time of the inter partes
reexamination proceedings.
When the estoppel of § 315(c) attaches is a question of
first impression.
1. The Parties’ Arguments On Appeal
Bunzl argues on appeal that: (1) district court deci-
sions support Bunzl’s interpretation of the statute; (2) the
concept of “finality” means that the controversy must be
at an end; (3) § 316 defines finality as the exhaustion of
all appeal rights; (4) § 315 distinguishes final decisions
from final determinations; (5) § 312’s definition of a
determination on substantial new questions of patentabil-
ity as “final and non-appealable” means that final deter-
minations under § 315 must also be unappealable; (6)
Bunzl’s view is consistent with Congress’s purpose in
BETTCHER INDUSTRIES v. BUNZL USA 25
creating inter-partes reexamination; (7) applying the
estoppel as of the Right of Appeal Notice would render the
statute internally inconsistent; and (8) the legislative
history supports Bunzl.
Bettcher counters that: (1) related regulations prove
that right of appeal notices are final determinations; (2)
the “fact estoppel” provision of the 1999 act creating inter
partes reexaminations and its legislative history support
Bettcher; (3) § 317 demonstrates that Congress did not
intend to condition estoppel on exhaustion of appeals; (4)
minimizing “harassment,” a purpose in the legislative
history, is only served if estoppel attaches when the
reexamination becomes appealable; (5) § 315 estoppel
would be superfluous if it attached after appeals to this
court because this court’s decisions bind district courts; (6)
Bunzl’s reliance on district court cases and law dictionar-
ies is unavailing; and (7) Bettcher’s interpretation does
not render the statute internally inconsistent.
The parties’ arguments on appeal essentially require
this court to decide the meaning of “finally determined” in
§ 315(c) in view of the language of the statute, the legisla-
tive framework, the related regulations, and the legisla-
tive history.
“Our first step in interpreting a statute is to deter-
mine whether the language at issue has a plain and
unambiguous meaning with regard to the particular
dispute in the case. Our inquiry must cease if the statu-
tory language is unambiguous and the statutory scheme
is coherent and consistent.” Pennzoil-Quaker State Co. v.
United States, 511 F.3d 1365, 1373 (Fed. Cir. 2008) (quot-
ing Robinson v. Shell Oil Co., 519 U.S. 337, 340 (1997)).
“[S]tatutory language cannot be construed in a vacuum.
It is a fundamental canon of statutory construction that
the words of a statute must be read in their context and
with a view to their place in the overall statutory
26 BETTCHER INDUSTRIES v. BUNZL USA
scheme.” Davis v. Mich. Dep’t. of Treasury, 498 U.S. 803,
809 (1989). Section 315 does not expressly define “finally
determined,” but its content and context do.
a. Section 315
The estoppel provision appears at the end of § 315,
which provides appeal rights both from examiner and
Board decisions. Specifically, § 315(a) provides that
patent owners “may appeal under the provisions of sec-
tion 134 [i.e. to the Board] and may appeal under the
provisions of sections 141 through 144 [i.e. to the Federal
Circuit],” as well as participate in any appeal brought by
a third-party requester. And § 315(b) likewise provides
that third-party requesters may appeal both to the Board
and to the Federal Circuit, and may participate in appeals
brought by patent owners. The estoppel provision of
subsection (c) thus falls immediately following the estab-
lishment of both parties’ rights of appeal, including ap-
peal to this court.
The placement of the estoppel provision within the in-
ter partes reexamination statute strongly suggests that
the phrase “finally determined” refers to the stage of the
proceedings when the events contemplated by subsections
(a) and (b) have run their course. And because subsec-
tions (a) and (b) both state that the parties may appeal
decisions both to the Board and to this court, this implies
that estoppel requires exhaustion of all appeal rights,
including appeals to this court.
Bunzl argues that because subsections (a) and (b) re-
fer to “final decisions,” whereas subsection (c) refers to
“final determinations,” therefore the appealable “deci-
sions” of subsections (a) and (b) do not, in and of them-
selves, amount to “final determinations.” We agree.
While the difference in terminology is not necessarily
BETTCHER INDUSTRIES v. BUNZL USA 27
compelling, it is nonetheless supportive of this court’s
interpretation of § 315.
b. Section 316
Section 316, entitled “Certificate of patentability, un-
patentability, and claim cancellation,” provides in rele-
vant part:
(a) . . . In an inter partes reexamination proceed-
ing under this chapter, when the time for appeal
has expired or any appeal proceeding has termi-
nated, the Director shall issue and publish a cer-
tificate canceling any claim of the patent finally
determined to be unpatentable, confirming any
claim of the patent determined to be patentable,
and incorporating in the patent any proposed
amended or new claim determined to be pat-
entable.
According to Bunzl, § 316 defines finality as the exhaus-
tion of all appeal rights. This court agrees with Bunzl
that § 316 defines a determination of patentability to
occur only after all appeals have terminated. Issuance of
the reexamination certificate only happens “when the
time for appeal has expired or any appeal proceeding has
terminated.” § 316. This provision makes no distinction
between appeals to the Board and to this court. And
reexamination certificates are not issued piecemeal, at
intermediate stages of the reexamination proceeding.
This is reflected in the Manual of Patent Examining
Procedure (“M.P.E.P.”) § 2687 (emphases in original):
Upon conclusion of the inter partes reexamination
proceeding, the examiner must complete a Notice
of Intent to Issue Inter Partes Reexamination Cer-
tificate (NIRC) . . . .
28 BETTCHER INDUSTRIES v. BUNZL USA
The following are the only instances when issu-
ance of NIRC action would be proper in an inter
partes reexamination proceeding:
(A) There is no timely response by the patent
owner to an Office action requiring a response. . . .
(B) After a Right of Appeal Notice (RAN) where no
party to the reexamination timely files a notice of
appeal.
(C) After filing a notice of appeal, where all par-
ties who filed a notice of appeal or notice of cross
appeal fail to timely file an appellant brief (or fail
to timely complete the brief, where the appellant
brief is noted by the examiner as being incom-
plete).
(D) After a final decision by the Board of Patent
Appeals and Interferences (Board), where there is
no further timely appeal to the Court of Appeals
for the Federal Circuit nor is there a timely re-
quest for rehearing by the Board.
(E) After the Federal Court appeal process has
been completed and the case is returned to the ex-
aminer.
c. Section 317
Section 317, entitled “[i]nter partes reexamination
prohibited,” limits subsequent reexaminations:
(a) Order for reexamination.–Notwithstanding
any provision of this chapter, once an order for in-
ter partes reexamination of a patent has been is-
sued under section 313, neither the third-party
BETTCHER INDUSTRIES v. BUNZL USA 29
requester nor its privies, may file a subsequent
request for inter partes reexamination of the pat-
ent until an inter partes reexamination certificate
is issued and published under section 316, unless
authorized by the Director.
(b) Final decision.–Once a final decision has been
entered against a party in a civil action arising in
whole or in part under section 1338 of title 28,
that the party has not sustained its burden of
proving the invalidity of any patent claim in suit
or if a final decision in an inter partes reexamina-
tion proceeding instituted by a third-party re-
quester is favorable to the patentability of any
original or proposed amended or new claim of the
patent, then neither that party nor its privies may
thereafter request an inter partes reexamination
of any such patent claim on the basis of issues
which that party or its privies raised or could
have raised in such civil action or inter partes re-
examination proceeding, and any inter partes re-
examination requested by that party or its privies
on the basis of such issues may not thereafter be
maintained by the Office, notwithstanding any
other provision of this chapter. This subsection
does not prevent the assertion of invalidity based
on newly discovered prior art unavailable to the
third-party requester and the patent and Trade-
mark Office at the time of the inter partes reex-
amination proceedings.
35 U.S.C. § 317. Section 317 includes two provisions.
Subsection (a) is a complete bar on new reexaminations
until the reexamination certificate is issued in the pend-
ing reexamination. Subsection (b) attaches only after
there has been a final resolution, either in federal court or
in the pending reexamination. Once it does attach, sub-
30 BETTCHER INDUSTRIES v. BUNZL USA
section (b) prevents the third-party requester from “re-
quest[ing] an inter partes reexamination . . . on the basis
of issues which [it] raised or could have raised in [federal
court or the prior reexamination].” Because subsection (b)
prevents further reexamination proceedings once parallel
federal court proceedings have reached their resolution, it
serves a similar purpose to the § 315 estoppel.
The parallel structure of subsections (a) and (b) sug-
gests that, while subsection (a) applies during the pend-
ency of reexamination proceedings, subsection (b) applies
only when reexamination and all appeals have termi-
nated. The relevant House and Senate records confirm
that § 317(b) applies “after any appeals.” 145 Cong. Rec.
29276, 29973 (1999). And the Patent Office has inter-
preted § 317 consistent with this legislative history in
M.P.E.P. § 2686.04 (emphases in original):
While Congress desired that the creation of an in-
ter partes reexamination option would lead to a
reduction in expensive patent litigation, it none-
theless also provided in the statute that a court
validity challenge and inter partes reexamination
of a patent may occur simultaneously; but once
one proceeding finally ends in a manner adverse
to a third party, then the issues raised (or that
could have been raised) with respect to the valid-
ity of a claim in that proceeding would have es-
toppel effect on the same issues in the other
proceeding.
...
The 35 U.S.C. 317(b) estoppel applies only in a
situation where a final decision adverse to the re-
quester has already been issued. If there remains
any time for an appeal, or a request for reconsid-
eration, from a court (e.g., District Court or Fed-
BETTCHER INDUSTRIES v. BUNZL USA 31
eral Circuit) decision, or such action has already
been taken, then the decision is not final, and the
estoppel does not attach.
While we believe that § 317(b) is clear, even if it were
ambiguous, the Patent Office’s interpretation that
§ 317(b) does not apply “[i]f there remains any time for an
appeal” would be entitled to deference. See Cooper Techs.
Co. v. Dudas, 536 F.3d 1330, 1336 (Fed. Cir. 2008) (hold-
ing that the “Patent Office had the authority under 35
U.S.C. § 2 to interpret section [of the act creating inter-
partes reexamination] because that interpretation both
governs the conduct of proceedings in the Patent Office,
not matters of substantive patent law, and is a prospec-
tive clarification of ambiguous statutory language.”).
Finally, we note that while this court agrees with Bunzl’s
interpretation of § 315, we do not agree entirely with the
reasoning presented by Bunzl. Specifically, we do not
agree with Bunzl’s arguments premised on internal
inconsistency within § 317 or inconsistency between §§
315 and 317. In our view, neither argument withstands
critical scrutiny.
d. Reexamination Proceedings
The framework of reexamination proceedings also
suggests that estoppel attaches after all appeals are
exhausted. During appeal, the Board can assert new
grounds of rejection provided that the applicant has the
opportunity to respond. See 37 C.F.R. § 41.50(b) (“A new
ground of rejection pursuant to this paragraph shall not
be considered final for judicial review.” (emphasis added)).
And the addition of new grounds even extends to proceed-
ings before this court. See In re Comiskey, 554 F.3d 967,
974 (Fed. Cir. 2009) (“[W]e may . . . where appropriate,
affirm the agency on grounds other than those relied upon
in rendering its decision, when upholding the agency’s
32 BETTCHER INDUSTRIES v. BUNZL USA
decision does not depend upon making a determination of
fact not previously made by the agency.” (quoting Killip v.
Office of Pers. Mgmt., 991 F.2d 1564, 1568-69 (Fed. Cir.
1993))). Because the addition of new grounds of rejection
on appeal entitles applicants to continue prosecution
before the examiner, the structure of the reexamination
proceeding suggests that reexamination is not final prior
to the exhaustion of all appeal rights.
e. Related Regulations
Bettcher argues that the regulations discussing the
Right of Appeal Notice establish that the phrase “final
determination” in § 315 refers to the Right of Appeal
Notice. Bettcher relies on 37 C.F.R. § 1.953, which states
in relevant part:
The Right of Appeal Notice shall be a final action,
which comprises a final rejection setting forth
each ground of rejection and/or final decision fa-
vorable to patentability including each determina-
tion not to make a proposed rejection, an
identification of the status of each claim, and the
reasons for decisions favorable to patentability
and/or the grounds of rejection for each claim.
Bettcher also relies on 37 C.F.R. § 41.61(a)(2), which
states:
Upon the issuance of a Right of Appeal Notice . . .
the requester may appeal to the Board with re-
spect to any final decision favorable to the pat-
entability, including any final determination not
to make a proposed rejection, of any original, pro-
posed amended, or new claim of the patent . . . .
BETTCHER INDUSTRIES v. BUNZL USA 33
Bettcher’s argument is essentially that because these
regulations treat the Right of Appeal Notice as a “final
action” and a “final decision,” and because the Right of
Appeal Notice incorporates a “final determination not to
make a proposed rejection,” therefore the phrase “finally
determined” in § 315 must refer to a component of a Right
of Appeal Notice. The quoted regulations in no way
address the application of any estoppel. They certainly do
not purport to interpret or define the statutory language
of § 315. Bettcher’s argument thus rings hollow and is
not persuasive.
f. Other Arguments
Bunzl also argues that the ordinary meaning of “fi-
nally determined” implies that the entirety of the contro-
versy is at an end. As the discussion above makes clear,
however, the phrase “finally determined” is not self-
interpreting in the context of this statute.
Bettcher also argues that the purpose of “minimizing
harassment” is not accomplished unless the estoppel
attaches when the examiner issues a Right of Appeal
Notice. Indeed, according to Bettcher, the estoppel would
be redundant if it only applied after all appeals because
decisions of this court are binding on district courts in any
event. Bettcher’s argument does not overcome the weight
of evidence against Bettcher’s proposed interpretation. As
discussed above, Congress intended that reexaminations
and civil patent litigation could occur in parallel, and it
must be assumed that Congress was aware of any poten-
tial for “harassment” when it passed this provision. And
Bettcher’s view that the estoppel would be redundant if it
did not apply immediately is wrong. This court’s affir-
mance of an examiner’s decision on reexamination does
not preclude district courts from considering challenges to
validity premised on the same prior art, in the absence of
34 BETTCHER INDUSTRIES v. BUNZL USA
an estoppel. The Supreme Court recently recognized as
much, albeit in the context of examining the burden of
proof applicable to a validity challenge. See Microsoft
Corp. v. i4i Ltd. P’ship, 131 S. Ct. 2238, 2251 (2011)
(“[N]ew evidence supporting an invalidity defense may
‘carry more weight’ in an infringement action than evi-
dence previously considered by the PTO.”).
Finally, Bettcher looks for support from the legislative
history of the uncodified “fact” estoppel of the 1999 act
establishing inter-partes reexamination proceedings,
published as a note to 35 U.S.C § 315. Pub. L. 106-113,
Div. B. § 1000(a)(9) [Title IV, § 4607], Nov. 29, 1999, 113
Stat. 1536, 1501A-571. The legislative history of this
provision states that the “estoppel arises after a final
decision in the inter partes reexamination or a final
decision in any appeal of such reexamination.” 145 Cong.
Rec. 29276, 29973 (1999). According to Bettcher, this
statement distinguishes final decisions in reexaminations
from final decisions on appeal, such that § 315(c) should
be read to apply as soon as there is a final decision in a
reexamination (i.e. a Right of Appeal Notice). This court
is at a loss to understand how this argument helps Bet-
tcher. Section 315 itself distinguishes final decisions from
final determinations, as discussed above. But more
importantly, the legislative history of the fact estoppel
proves that it applies only after all appeal rights are
exhausted. If anything, this suggests that the same is
true of the estoppel of § 315, which applies to the ultimate
issues whose determination is based on those same facts
that are the subject of the “fact” estoppel. Bettcher’s
argument is not persuasive.
The parties’ other arguments have been considered
and are not persuasive. For the reasons discussed above,
we hold that the estoppel provision of 35 U.S.C. § 315(c)
applies only after all appeal rights are exhausted, includ-
ing appeals to this court.
BETTCHER INDUSTRIES v. BUNZL USA 35
For these reasons, this court vacates the denial of
Bunzl’s motion for new trial on invalidity based on refer-
ences excluded under the district court’s interpretation of
§ 315(c) and remands so that the district court may de-
termine in the first instance whether a new trial is war-
ranted in the particular circumstances of this case.
D. Infringement
In its cross-appeal, Bettcher seeks a new trial on the
issue of infringement. Bettcher argues that Stallion’s
testimony was prejudicial because his 2007 opinion
amounted to nothing more than unfounded speculation,
because he testified as an expert on the ultimate legal and
factual issues of infringement contravening the safe-
guards against incompetent expert testimony and invad-
ing the province of the court to explain the law, and
because counsel for Bunzl wrongly characterized Stallion
as an authority on legal and factual issues of infringe-
ment during closing argument. Bettcher also argues that
this court needs to clarify the limits on the admissibility
of opinion of counsel evidence in inducement cases and
that the district court should not have instructed the jury
to rely on such evidence.
Bunzl counters that the jury was properly instructed
regarding the law of indirect infringement; that any error
was harmless because Bettcher’s “wear” theory of in-
fringement was not legally cognizable or based on suffi-
cient evidence; that Stallion’s testimony was relevant to
the accused infringer’s state of mind for inducement and
willful infringement; that Stallion did not testify as an
expert; and that Bunzl’s closing argument did not preju-
dice Bettcher in view of the court’s clear instructions that
only the court would explain the law to the jury.
To warrant disturbing the jury’s verdict, Bettcher
must show that the district court abused its discretion in
36 BETTCHER INDUSTRIES v. BUNZL USA
admitting Stallion’s testimony, Geisen, 612 F.3d, at 495,
and that, as a result of this abuse of discretion, Bettcher
suffered substantial injustice. Zamlen, 906 F.2d, at 216.
On these points, Bettcher’s arguments fall short. More-
over, the fact that Bettcher did not contemporaneously
object to the closing argument raises the threshold of
prejudice it must establish to be entitled to a new trial.
See Strickland v. Owens Corning, 142 F.3d 353, 358 (6th
Cir. 1998) (“[F]ailure to object at trial to closing argu-
ments does raise the degree of prejudice which must be
demonstrated in order to get a new trial on appeal.”).
This court concludes that a new trial is not war-
ranted. The fact and general content of Stallion’s opinion
was relevant and admissible, at least with respect to
Bunzl’s state of mind and its bearing on indirect in-
fringement. See, DSU Med. Corp. v. JMS Co., 471 F.3d
1293, 1307 (Fed. Cir. 2006) (en banc in relevant part)
(affirming denial of new trial on inducement where record
evidence included opinion of counsel). And it is within the
province of the jury to make credibility determinations
regarding the competence of Stallion’s advice, and the
reasonableness of Bunzl’s reliance thereon. See, e.g.,
Litecubes, LLC v. N. Lights Prods., Inc., 523 F.3d 1353,
1374 (Fed. Cir. 2008) (“It is not the province of an appel-
late court to second guess the jury’s credibility determina-
tions or to reevaluate the weight to be given the
evidence.”).
Moreover, the infringement theory that Bettcher ar-
gues it was effectively precluded from presenting to the
jury carries no weight. It is undisputed that the accused
blades do not infringe as sold. The record on appeal does
not support the view that Bunzl’s blades ever start to
infringe, let alone that they always, necessarily, or even
usually wear to the allegedly infringing shape. Thus,
Bettcher cannot establish either intent or the absence of a
substantial non-infringing use for the accused blades. We
BETTCHER INDUSTRIES v. BUNZL USA 37
therefore agree with the district court that Bettcher is not
entitled to a new trial on the issue of infringement.
III. CONCLUSION
For the foregoing reasons, the denial of judgment as a
matter of law or new trial on the issue of anticipation
based on the pre-1998 Bettcher prior art blades is af-
firmed; the denial of a new trial on obviousness based on
35 U.S.C. § 315(c) is vacated; the denial of a new trial on
the issue of infringement is affirmed; and the case is
remanded for further proceedings consistent with this
opinion.
AFFIRMED-IN-PART, VACATED-IN-PART, AND
REMANDED
COSTS
Each party shall bear its own costs.
United States Court of Appeals
for the Federal Circuit
__________________________
BETTCHER INDUSTRIES, INC.,
Plaintiff-Cross Appellant,
v.
BUNZL USA, INC.,
Defendant,
AND
BUNZL PROCESSOR DISTRIBUTION, LLC,
Defendant-Appellant.
__________________________
2011-1038, -1046
__________________________
Appeals from the United States District Court for the
Northern District of Ohio in Case No. 08-CV-2423, Judge
Jack Zouhary.
__________________________
REYNA, Circuit Judge, dissenting.
I respectfully dissent. The plain meaning of the claim
language of the ’325 patent reads on Bettcher’s own prior
art products, which include all of the structural features
required by the claims, and which possess the capability
of satisfying the functional or intended use limitations.
As the ’325 patent is therefore invalid for anticipation as
BETTCHER INDUSTRIES v. BUNZL USA 2
a matter of law, I would reverse the district court and not
reach the other issues presented in this appeal.
I. BACKGROUND
The ’325 patent is directed to a rotary knife blade as
is commonly used for trimming or processing meat.
Rotary knife blades are essentially ring-shaped blades
mounted within a housing on a knife handle, where the
housing includes a mechanism that spins the blade within
the housing:
The blade includes an annular groove called a bearing
race that enables one or more bearing beads within the
housing to engage and support the blade, ensuring that
there is no axial movement of the blade during rotation.
3 BETTCHER INDUSTRIES v. BUNZL USA
The particular embodiment of patented rotary knife
blade disclosed in the specification is depicted with the
following cross-sectional view:
BETTCHER INDUSTRIES v. BUNZL USA 4
The bearing race is generally indicated by reference
numeral 66, and the first and second bearing surfaces are
indicated by reference numerals 70 and 72. These bear-
ing surfaces are characterized as being “frustoconical,”
which the district court defined as “the shape of a portion
of an exterior surface of a cone.”
Claim 1 of the ’325 patent is representative, and re-
cites that the bearing race comprises the following four
elements:
(1) “a first surface that converges proceed
ing away from said second axial end”
(2) “a second surface that converges pro-
ceeding toward said first surface”
(3) “said first and second surfaces defin-
ing first and second bearing faces
spaced axially apart”
(4) “wherein both of said bearing faces are
frustoconical.”
Importantly, aside from indicating the directions in which
the first and second frustoconical bearing faces extend,
the claims do not recite any particular length or size of
those surfaces.
The prior art included blades previously made and
sold by Bettcher, the so-called “pre-1998 blades.” The
parties do not dispute that the pre-1998 blades satisfied
the claim elements of “a first surface that converges
proceeding away from said second axial end,” “a second
surface that converges proceeding toward said first sur-
face,” those surfaces being “spaced axially apart,” and
that the two surfaces are “frustoconical.” The only dis-
5 BETTCHER INDUSTRIES v. BUNZL USA
pute is whether the first surface and second surface of the
pre-1998 blades “defin[e] first and second bearing faces,”
as recited by the claims. The following demonstrative
juxtaposition of the patented blade and the pre-1998
blades is an accurate representation of the blades and the
key surfaces at issue:
“Chamfers”
“Bearing
Surfaces”
’325 Patented Blade Pre-1998 Blades
The two converging surfaces in the pre-1998 blades
were regarded as “chamfers.” The chamfers were in-
tended to provide clearance with mating parts, not to be
used as bearing surfaces to engage the bearing beads in
the knife housing. No commercial knife housing was
shown to have existed at the time that would have used
the chamfers as bearing surfaces. It was nevertheless
possible for the chamfers to function as bearing surfaces.
This possibility was evidenced by a mock-up housing
created by Bunzl’s expert and used at trial to rotate, for a
few minutes, a prior art blade using the chamfers as
bearing surfaces. Thus, Bunzl argues that the chamfers
in the prior art blades satisfy the “bearing face” limita-
tions because “[w]hether called chamfers, or any other
name, the fact remains that the frustoconical surfaces
BETTCHER INDUSTRIES v. BUNZL USA 6
were capable of serving as bearing surfaces.” Bunzl Reply
Br. at 6.
The mock-up housing used stainless steel balls to en-
gage the chamfers, and the blade was rotated using a
standard variable speed power drill. This housing was
admittedly not designed to simulate ordinary use condi-
tions in an actual knife housing, but merely to determine
whether it was possible to rotate a pre-1998 blade by its
chamfers within a housing, which it succeeded in doing.
Bettcher’s expert conceded that the mock-up housing did
in fact work to rotate the blade by the chamfers, but
questioned its practical efficacy noting that “[h]ow long it
lasts, whether it’s functional, those are other issues.”
A2028:8-16. Bettcher’s expert further testified that
because the chamfers were so small, using them as bear-
ing surfaces would cause them to dig into the mating
parts within the housing. Thus, Bettcher argues that the
chamfers cannot be deemed capable of serving as bearing
surfaces for a rotary knife blade.
II. ANTICIPATION
Under 35 U.S.C. § 102, anticipation exists when a
single piece of prior art satisfies, either expressly or
inherently, every limitation of the claimed invention.
King Pharms., Inc. v. Eon Labs, Inc., 616 F.3d 1267, 1274
(Fed. Cir. 2010). “Claim language defines claim scope,”
and so the claims must be properly construed for com-
parison to the allegedly anticipatory prior art. Trintec
Indus. v. Top-U.S.A. Corp., 295 F.3d 1292, 1294 (Fed. Cir.
2002).
There is no actual dispute here concerning whether
the structural limitations of the claims are met by the
pre-1998 blades—they are. The “first surface” and “sec-
7 BETTCHER INDUSTRIES v. BUNZL USA
ond surface” in the pre-1998 blades “converge” toward
each other, they are “spaced axially apart,” and they are
“frustoconical” exactly as defined in the claims. Although
the claims recite that the first and second surfaces “de-
fin[e] first and second bearing surfaces,” this limitation
does not further limit the structure of the claimed blade.
The exact shapes, positions, contours, and configurations
of the first and second surfaces are completely defined
elsewhere in the claims. The claims merely mention that
those first and second surfaces happen to “defin[e] first
and second bearing faces.” In essence this limitation does
nothing more than give a name to the first and second
surfaces: “bearing faces.” Admittedly, the word “bearing”
carries some meaning, but that meaning is not structural.
At most, the “defining” limitation is an indication of an
intended use or function of the first and second surfaces—
that they be used to engage one or more bearing beads.
None of Bettcher’s arguments directed to the efficacy
of using the chamfers as bearing surfaces have any rela-
tion to the claim language at issue. The claims are di-
rected to “a rotary knife blade” and cover the product
only, not any particular use of it. Indeed, no characteris-
tics of the knife housing in which the blades are intended
to be used are reflected in the claims. There are no limi-
tations regarding how fast the blade must be able to be
spun, or for how long the blade must be able to sustain
rotation at any particular speed. The claims also do not
recite any particular width, contour, or positioning of the
first and second surfaces such that they can engage with
bearing beads of then-existing knife housings. They recite
only that the converging surfaces be “spaced axially
apart” and “frustoconical.” No structural details as to the
interior shape of the bearing race between two opposing
bearing surfaces are required by the claims, and in effect
BETTCHER INDUSTRIES v. BUNZL USA 8
the ’325 patent encompasses any blade that looks like
this:
?
Absent further limitations directed at least to the length
or size of the frustoconical surfaces, there is no patentable
distinction between the claimed blade and the pre-1998
blades. The claim language plainly reads on the chamfers
of the pre-1998 blades.
Turning to Bettcher’s contention that the chamfers
cannot be bearing surfaces because they were not recog-
nized or used as such at the time, this court’s decision in
In re Schreiber, 128 F.3d 1473, 1477-78 (Fed. Cir. 1997) is
both instructive and controlling. There, a claim directed
to a popcorn dispensing spout was found anticipated by a
prior art patent directed to a spout for dispensing oil. The
claim at issue included both structural elements and
functional elements. Id. at 1475. There was no dispute
that the structural limitations of the claim were all met
by the prior art oil spout. Id. at 1477 (“[The prior art]
discloses a ‘dispensing top’ that has ‘a generally conical
9 BETTCHER INDUSTRIES v. BUNZL USA
shape and an opening at each end,’ and ‘means at the
enlarged end of the top to embrace the open end of the
container, the taper of the top being uniform.’”). Rather,
Schreiber relied on the functional elements of the claim to
establish patentability, arguing that the prior art oil
spout patent “does not disclose that such a structure can
be used to dispense popcorn from an open-ended popcorn
container.” Id. at 1477; see also id. at 1475 (claim provid-
ing, for example, that “the opening at the reduced end
allows several kernels of popped popcorn to pass through
at the same time”).
The court explained that “choosing to define an ele-
ment functionally, i.e., by what it does, carries with it a
risk” in that “a functional limitation asserted to be critical
for establishing novelty in the claimed subject matter
may, in fact, be an inherent characteristic of the prior
art.” Id. at 1478 (quoting In re Swinehart, 439 F.2d 210,
212 (CCPA 1971)). To find that a claim element is inher-
ently disclosed in the prior art, it must necessarily be
present in the prior art. King Pharms., 616 F.3d at 1274.
Because the oil spout in Schreiber was “capable of” dis-
pensing popped popcorn in the manner set forth in the
claim, it inherently satisfied all of the functional limita-
tions and anticipated the claimed popcorn spout. 128
F.3d at 1478-79. As the court explained, “Schreiber's
contention that his structure will be used to dispense
popcorn does not have patentable weight if the structure
is already known, regardless of whether it has ever been
used in any way in connection with popcorn.” Id. at 1477.
As in Schreiber, here all structural limitations recited
in the claims are found in the prior art blades. Id. at
1477. The only allegedly distinguishing aspect of the
claimed rotary blades is that certain surfaces therein are
said to “defin[e] first and second bearing faces,” i.e., they
BETTCHER INDUSTRIES v. BUNZL USA 10
are intended to be used to engage the bearing beads
within the knife housing. Under Schreiber, this distinc-
tion is not a patentable one. It is undisputed that the
chamfers of the pre-1998 blades could function as bearing
faces, as demonstrated by the mock-up used at trial. No
recognition of such capability in the prior art is required.
Schering Corp. v. Geneva Pharmaceuticals, Inc., 339 F.3d
1373, 1377 (Fed. Cir. 2003) (“[T]his court rejects the
contention that inherent anticipation requires recognition
in the prior art.”); In re Cruciferous Sprout Litig., 301
F.3d 1343, 1349 (Fed. Cir. 2002) (“Inherency is not neces-
sarily coterminous with knowledge of those of ordinary
skill in the art. Artisans of ordinary skill may not recog-
nize the inherent characteristics or functioning of the
prior art.” (quotations omitted)). Each chamfer inherently
satisfies the “bearing face” limitation “regardless of
whether it has ever been used in any way in connection
with [a bearing].” Schreiber, 128 F.3d at 1477.
Where all structural elements of a claim exist in a
prior art product, and that prior art product is capable of
satisfying all functional or intended use limitations, the
claimed invention is nothing more than an unpatentable
new use for an old product. Schreiber, 128 F.3d at 1477.
III. CONCLUSION
No reasonable jury could conclude that the claims of
the ’325 patent were novel over the pre-1998 blades
because none of the dispositive facts were disputed and
the law is clear. I would reverse the district court and
enter judgment as a matter of law of anticipation.