Legal Research AI

Intamin, Ltd. v. Magnetar Technologies, Corp. [Corrected Cover Sheet on 04/26/07]

Court: Court of Appeals for the Federal Circuit
Date filed: 2007-04-18
Citations: 483 F.3d 1328
Copy Citations
23 Citing Cases
Combined Opinion
 United States Court of Appeals for the Federal Circuit
                             (Corrected on 4/26/07)

                                      05-1546, -1579


                                     INTAMIN, LTD.,

                                                        Plaintiff-Appellant,

                                             v.


                        MAGNETAR TECHNOLOGIES, CORP.,

                                                        Defendant-Cross Appellant.




        Ted S. Ward, Berke, Kent & Ward, LLP, of Los Angeles, California, argued for
plaintiff-appellant.

       John B. Sganga, Jr., Attorney, Knobbe, Martens, Olson & Bear, LLP, of Irvine,
California, argued for defendant-cross appellant. With him on the brief were Joseph S.
Cianfrani and Christopher L. Ross.

Appealed from: United States District Court for the Central District of California

Judge Gary A. Feess
 United States Court of Appeals for the Federal Circuit
                                      05-1546, -1579

                                      INTAMIN LTD.,
                                                        Plaintiff-Appellant,

                                             v.

                        MAGNETAR TECHNOLOGIES, CORP.,

                                                        Defendant-Cross Appellant.

                            ___________________________

                            DECIDED: April 18, 2007
                            ___________________________



Before RADER, Circuit Judge, PLAGER, Senior Circuit Judge, and PROST, Circuit
Judge.

RADER, Circuit Judge.

       On summary judgment, the United States District Court for the Central District of

California ruled that Magnetar Technologies, Corp. (Magnetar) does not infringe

Intamin, Ltd.'s (Intamin's) U.S. Patent No. 6,062,350 (the '350 patent). Intamin appeals

that ruling. Magnetar appeals the district court's order vacating a previous award of

Rule 11 sanctions. Upon consideration of the claim terms on appeal, this court vacates

part of the district court's claim construction and remands. This court also affirms the

district court's decision to vacate the Rule 11 sanctions.

                                             I

       The '350 patent, entitled "Braking System for an Amusement Device," discloses a

magnetic braking system for amusement park rides such as drop towers and roller

coasters. Magnetic brakes create "eddy currents" when a conductor passes through a
gap between two sets of magnets. These eddy currents, in turn, create a magnetic

friction that slows and stops the car attached to the conductor.            The '350 patent

describes specific arrangements for the conductor and the magnets. Figure 6 of the

'350 patent illustrates a configuration with the adjacent magnets of opposite polarity in

direct contact. The '350 specification states that ''[a]ccording to Fig. 6, the polarity of the

magnet elements (8) are reversed along the direction of the carrying rail." '350 patent

col.4 ll.22-23.




       Figures 7 and 8 of the '350 patent show gaps between magnet elements that are

filled with spacers or "intermediaries."




       In one embodiment in the specification, the intermediary is non-magnetic. '350

patent col.4 ll.15-18.




05-1546, -1579                                2
        Magnetar sells a magnetic braking system under the name "Soft Stop” brakes.

Magnetar's brakes contain magnets arranged as a "Halbach array." A "Halbach array"

rotates the polarities of adjacent magnets by 90 degrees, rather than by 180 degrees as

in Figure 6 of the '350 patent.       By configuring the magnets in a Halbach array

arrangement, Magnetar's brake creates a one-sided flux, meaning the configuration

concentrates the magnetic force on one side of a magnet while nearly canceling out the

magnetic force of the other side of a magnet. For example, the one-sided flux of a

Halbach array is the technology behind a refrigerator magnet that sticks on only one

side.

        Magnetar joins the magnets into rows with epoxy, with one magnet abutting

another, and places these rows of magnets into metal tubes. Then Magnetar attaches

these magnetized tubes to the track.        A conductive rail, or fin, is attached to the

movable passenger car.       Magnetar's president allegedly offered to sell Magnetar's

brakes in a configuration with the fin on the track and the magnets on the passenger

cars.

        Intamin sued Magnetar alleging that the Soft Stop brakes infringe claim 1 of the

'350 patent. Claim 1 of the '350 patent reads:

        A braking device for use with an amusement apparatus having a fixed device
        part, at least one running rail secured to the fixed device part, and a movable
        device part including at least one traveling gear configured for movement along
        the at least one running rail, the braking device comprising:
           an eddy current brake assembly including:
                a conducting part having at least one conductive rail configured for
                      attachment to the fixed device part, said at least one conductive rail
                      being adapted to extend the length of the fixed device part;
                an energizing portion having at least one yoke aligned in correspondence
                      with each said at least one conductive rails, each said yokes
                      including a pair of yoke arms for receiving said at least one
                      conductive rail therebetween;



05-1546, -1579                               3
            at least one pair of carrying rails extending a predetermined distance
                   along the direction of said at least one conductive rail, each said
                   carrying rails being mounted on corresponding yoke arms of said
                   plurality of yokes;
            a plurality of magnet elements mounted on each of said carrying rails with
                   alternating polarities, said plurality of magnet elements being
                   further arranged such that the poles of magnet elements mounted
                   on one carrying rail have opposite polarities from the poles of
                   magnet elements mounted on a corresponding carrying rail of said
                   at least one pair of carrying rails; and
            an intermediary disposed between adjacent pairs of said plurality of
                   magnet elements;
          wherein:
            an interferric gap is defined between each said yoke arms and the at least
                   one conductive rail, and
            movement of the movable device part, relative in the fixed device part,
                   induces eddy currents that create a magnetic brake force between
                   said conducting part and said energizing part.

'350 patent col.8 ll.29-65.

       Seeking summary judgment of non-infringement, Magnetar asserted that its

brakes did not infringe this claim because they did not include an "intermediary,"

because they were not "attached to the fixed device part," and because they did not

include a "conductive rail" "adapted to extend the length of the fixed device part." The

district court agreed that Magnetar's brakes did not contain an intermediary. Intamin,

Ltd. v. Magnetar Techs. Corp., SA CV 04-511-GLT, slip op. at 7 (C.D. Cal. Jan. 25,

2005) (Initial Decision). The district court further found that Magnetar's brakes could not

infringe, either literally or under the doctrine of equivalents, the limitation requiring

attachment to the fixed device part.       Id. at 8-10.    Finally, the district court also

determined that Magnetar's Soft Stop brakes did not infringe literally a limitation

requiring the conductive rail to "extend the length of the fixed device part." Id. at 10-12.

The district court opined that Magnetar's Soft Stop brakes may infringe this limitation

under the doctrine of equivalents but did not reach that issue because the absence of



05-1546, -1579                               4
other limitations already showed that Magnetar's brakes did not infringe the '350 patent.

Id. at 12-13. Thus the district court granted summary judgment of non-infringement. Id.

       Magnetar also alleged that Intamin's complaint violated Rule 11(b). Magnetar

argued that Intamin filed its complaint as retaliation for Magnetar's president's public

criticism of Intamin's brakes.    Magnetar also argued that Intamin's complaint was

frivolous. Intamin responded that its law suit was not retaliatory and was adequately

supported by pre-filing investigations.     Initially, the district court granted Rule 11

sanctions. Id. at 13-16. Upon reconsideration, the district court affirmed its finding that

Intamin filed the complaint for an improper purpose but vacated its decision that

Intamin's pre-filing investigation was frivolous. Intamin, Ltd. v. Magnetar Techs. Corp.,

SA CV 04-511-GLT, slip op. at 6-7 (C.D. Cal. Mar. 11, 2005) (Reconsideration

Decision). Magnetar then moved for attorneys' fees. Intamin, Ltd. v. Magnetar Techs.

Corp., SA CV 04-511-GLT, slip op. at 2 (C.D. Cal. Apr. 25, 2005) (Fee Decision). In

opposition to Magnetar's motion for attorneys' fees, Intamin argued that, under Ninth

Circuit law, a meritorious (non-frivolous) complaint cannot have an improper purpose.

Id. As such, Intamin argued that the district court could no longer award sanctions. Id.

The district court agreed and vacated its sanctions. Id. at 2-3.

       As noted, the district court found on summary judgment that Magnetar's accused

brake system did not infringe Intamin's patent. Initial Decision, slip op. at 7. Intamin

petitioned for reconsideration of the court's finding of non-infringement. The district

court affirmed its finding of non-infringement. Reconsideration Decision, slip op. at 8.

Intamin appeals the district court's grant of summary judgment of non-infringement.

Magnetar cross-appeals the district court's decision to vacate the Rule 11 sanctions.




05-1546, -1579                              5
                                              II

       This court reviews a grant of summary judgment without deference. Ethicon

Endo-Surgery, Inc. v. U.S. Surgical Corp., 149 F.3d 1309, 1315 (Fed. Cir. 1998). On

appeal, the parties dispute the district court's construction of the claim limitation

requiring "an intermediary disposed between adjacent pairs of said plurality of

magnets." The parties also dispute the district court's claim construction of a second

limitation found in claim 1 of the '350 patent: "said at least one conductive rail being

adapted to extend the length of the fixed device part." Like summary judgment itself,

this court reviews claim construction without deference. Cybor Corp. v. FAS Techs.

Inc., 138 F.3d 1448, 1456 (Fed.Cir. 1998) (en banc).

       Regarding the limitation requiring an "intermediary," the dispute rests on whether

the intermediary between adjacent pairs of magnets can itself be a magnet. The use of

the word "said" in a claim refers to an earlier use of the term in the claim. See Bell

Commc’n Research, Inc. v. Vitalink Commc’n Corp., 55 F.3d 615, 621 (Fed. Cir. 1995).

Here, the claim proceeds from the following definition: "a plurality of magnet elements

mounted on each of said carrying rails with alternating polarities, said plurality of

magnet elements being further arranged such that the poles of magnet elements

mounted on one carrying rail have opposite polarities from the poles of magnetic

elements mounted on a corresponding carrying rail of said at least one pair of carrying

rails." '350 patent col.8 ll.49-55. Thus, according to claim 1, the magnets surrounding

the intermediary have at least "alternating" polarities.

       Intamin argues that adjacent pairs of magnets with alternating polarities must

mean two magnets on the same rail with opposite polarity, as shown in Figure 6 of the




05-1546, -1579                                6
'350 patent. Thus, according to Intamin, anything between the magnets of opposite

polarity is an intermediary, whether magnetic or not. Magnetar argues that "adjacent

pairs of magnets" means any two magnets next to each other or abutting each other on

the rail, as shown in Figure 6. Further, according to Magnetar, the term "alternating"

does not require that such magnets have opposite polarity as shown in Figure 6. Thus,

because adjacent magnets are any two magnets abutting each other on a single rail,

Magnetar argues that another magnet cannot be an intermediary.                  Under its

interpretation, Magnetar's Soft Stop brakes would not infringe claim 1 because they lack

an intermediary.

       The district court construed the term "intermediary" without determining the

meaning of "adjacent magnets with alternating polarities."         The parties disagree

therefore about the meaning the district court actually gave to the term "intermediary."

Intamin argues that the district court determined that the intermediary could not be

magnetic, thus precluding infringement. Magnetar disagrees that the district court made

such a determination.

       In any event, the parties agree that this court cannot interpret "intermediary"

without addressing the polarities of the adjacent magnets. Specifically, an intermediary

cannot be another magnet if this court construes "adjacent pairs of magnets" as two

magnets abutting each other with polarities that alternate at some degree such as found

in a Halbach array.     In other words, an intermediary can only be a magnet if the

limitation "alternating polarities" means "opposite polarities." Under that interpretation,

some magnets become "adjacent pairs" and other magnets in between become

"intermediaries." In addition, "adjacent pairs of magnets" with opposite polarities, as in




05-1546, -1579                              7
Figure 6, would need some separation. 1         Intamin argues that another magnet can

provide this separation.

      The district court adopted Magnetar's proposed claim construction: "In short,

ordinary meaning supports Defendant's construction, and neither the specification nor

the prosecution history changes the ordinary meaning." Initial Decision, slip op. at 4.

On its face, the district court construed the term "intermediary" to mean "a member

between others." Id. at 3-4. In reaching that conclusion, the district court dismissed

Intamin's proposed claim construction that the intermediary can be a magnet between

two other magnets. Id. In fact, the trial court specifically points to language in the

patent that the intermediary is non-magnetic. Id. Thus, the district court apparently

construed the term "intermediary" to mean something non-magnetic between the

adjacent magnets.

      The first step in an infringement analysis is the determination of the scope of the

claims. Markman v. Westview Instruments, Inc., 52 F.3d 967, 979 (Fed. Cir. 1995),

aff'd, 517 U.S. 370 (1996). This court construes claims according to the principles set

forth by this court in Phillips v. AWH Corp., 415 F.3d 1303 (Fed. Cir. 2005) (en banc).

As such, the court consults primarily the claims themselves in context, with much of that

context supplied by the specification and the prosecution history. Id. at 1312.

      1
             At oral argument, Intamin's counsel, in response to a question regarding
the meaning of and the necessity for an "intermediary," stated that "the intermediary
serves the purpose to provide spacing and support for the magnets of the magnet
elements which are the magnets of alternating polarity [because] for physics reasons
there has to be spacing between those two magnets of alternating polarities and also
the magnets are so strong that if there in not something in between they tend to spin
into a new location." Thus, whether another magnet can be an intermediary may
depend on whether it can serve as a spacing and support element. Arguably, none of
Magnetar's magnets are used as spacing and support elements; rather, all are
necessary to create the one-sided flux of the Halbach array.


05-1546, -1579                              8
       In this case, the claim language itself does not require a non-magnetic

"intermediary." Just as in the Phillips case itself, the claim uses a broad term with an

understandable meaning. As the district court noted, the term "intermediary" standing

alone means a "member between others." Initial Decision, slip op. 4. This term takes

on additional meaning, however, in the context of magnetized members. The context of

the rest of the patent helps show that additional meaning, namely whether the

intermediary may be magnetic.

       In Phillips, this court noted that dependent claims can supply additional context

for construing the scope of the independent claims associated with those dependent

claims. 415 F.3d at 1314. An independent claim impliedly embraces more subject

matter than its narrower dependent claim. In this case, dependent claim 2 modifies the

term "intermediary." Claim 2 of the '350 patent discloses "[t]he braking device of claim 1

wherein said intermediary is non-magnetic." This dependent claim shows both that the

claim drafter perceived a distinction between magnetic and non-magnetic intermediaries

and that independent claim 1 impliedly embraced non-magnetic intermediaries. See

Innova/Pure Water, Inc. v. Safari Water Filtration Sys. Inc., 381 F.3d 1111, 1123 (Fed.

Cir. 2004).

       The district court initially did not consider the context supplied by claim

differentiation because Intamin did not raise this argument until reconsideration.

Reconsideration Decision, slip op. at 2. Even without the enlightenment supplied by

claim differentiation, however, the overall context of claim 1 does not limit the broad

language to non-magnetic intermediaries. At one point, the '350 patent describes an

embodiment of the invention with a "non-magnetic" intermediary. '350 patent col.4 ll.16-




05-1546, -1579                              9
18. The district court seized on this disclosure to limit the term "intermediary" to non-

magnetic substances only. Initial Decision, slip op. at 4. As this court has repeatedly

noted, see SRI Int'l v. Matsushita Electric Corp., 775 F.2d 1107, 1121 (Fed. Cir. 1985)

(en banc) (plurality opinion), a narrow disclosure in the specification does not

necessarily limit broader claim language.           Phillips, 415 F.3d at 1323.   The overall

context of the patent, in this case, does not specifically disavow magnetic

intermediaries. See e.g., SciMed Life Sys. Inc. v. Advanced Cardiovascular Systems

Inc., 242 F.3d 1337, 1341 (Fed. Cir. 2001). The single reference does not expressly

limit the entire invention but only describes a single embodiment. Moreover, the term

"intermediary," like the term "baffle" in Phillips, embraces more than the limited

specification disclosure.

          Thus, this court finds that the term "intermediary" can embrace magnetic

substances, albeit only if the additional term requirement of "alternating polarity" allows

for it.    Accordingly, this court vacates the district court's construction of this term.

However, this court has not reached an additional question on which the trial court has

yet to provide a decision for review. Specifically this court remands to permit the district

court to determine whether the patent limits the term "adjacent magnets of alternating

polarity" to magnets of opposite polarity. With the understanding that an "intermediary"

may be magnetic, the trial court may revisit its finding of non-infringement.

          The district court also construed the limitation of a "conductive rail being adapted

to extend the length of the fixed device part" to mean the conductive rail must run the

end length of the track to which it is attached.            Initial Decision, slip op. at 10.

Specifically, the district court construed the term "length" to mean "extent from end to




05-1546, -1579                                 10
end—distinguished from width."        Id.    In other words, the district court applied the

ordinary meaning to the term "length" and found that the plain meaning of the term

referred to the full length of the fixed device part. Id. at 12. In the patent’s roller coaster

embodiment, this limitation would require the conductive rail to extend the entire length

of the roller coaster.

       In the claim, the "fixed device part" refers to the framework of the amusement

device, i.e., the track for the roller coaster or tower drop. The "conductive rail" refers to

a metal rail, part of which will have a conductive coating. The rail and the coating make

up the conductive part. This "conductive part," in turn, passes through the array of

magnets to generate the braking force or vice versa, depending on the configuration.

This court must determine the meaning of "length" as a reference to the full length of the

fixed device part, as the district court construed, or to the direction or orientation of the

conductive rail.

       The claim language uses the term "length" in the context of a longer phrase:

"adapted to extend the length of the fixed device part." The verb "extend" already

suggests that the "length" reaches from one end to another.              Moreover, the term

"length" imparts information about the "fixed device part," once again suggesting that

the "length" will encompass the entire dimensions of that structure. In sum, the claim

term "length" in context in the claim encompasses the full length of the fixed device part,

as the district court correctly discerned.

       The district court further recognized that the specification nowhere uses "length"

to refer to direction or orientation. Initial Decision, slip op. at 11-12. Rather, the district

court found correctly that the term referred to the entire length of the fixed device part.




05-1546, -1579                                 11
Id. at 12.   The patent specification uses "length" consistent with its meaning as a

distance, rather than merely a direction. Thus, the context supplied by the specification

underscores the meaning of claim 1 of the '350 patent that expressly states that the

conductive rail extends the length of the fixed device part.

       For example, the '350 patent uses the term "length" to discuss the braking

distance. '350 patent col.2 l.13; col.4 l.66. It also uses the term to refer specifically to

the length of the magnetic elements. '350 patent col.5 ll.32, 34, 41-42. Both uses of

"length" consistently refer to distance or dimension, quantitative applications of the term

"length." In comparison, when the '350 patent references a direction as opposed to a

distance, it uses language such as "along drop directions." '350 patent col.3 ll.36-38

("Both the energizing and conducting parts (5,6) are designed in the form of a rail and

stretch along the drop directions.").

       Intamin argues that the intrinsic evidence supports its proposed claim

construction because when the inventors were trying to convey an entire distance, they

used a modifier such as "whole height." '350 patent, col.7 ll.37-40; col.4 ll.31-34. While

Intamin argues that no modifier requires the length to extend the entire length of the

fixed device part, the flip side of this argument also applies: no modifier instructs one

skilled in the art to interpret the phrase as extending to only part of the fixed device.

Thus, the context and word choice of the claim language itself establishes that "extend

the length" means the length of the fixed device part. In other words, the intrinsic

evidence confirms the meaning conveyed by the claim language.

       Intamin argues that this interpretation would not permit the claim to read on

embodiments of the invention specifically mentioned in the patent specification. For




05-1546, -1579                              12
example, the patent discloses a roller coaster-type embodiment where the passenger

car or movable device houses the conductive part. Under the proper claim construction

with the conducting rail extending the length of the fixed device, the claim may well not

cover this embodiment. Nonetheless, this court has acknowledged that a claim need

not cover all embodiments. See Telemac Cellular Corp. v. Topp Telecom, Inc., 247

F.3d 1316, 1326 (Fed. Cir. 2001)("We conclude that only those embodiments involving

communications established by the host processor meet the functional requirement of

the claim."); see also Omega Eng’g, Inc. v. Raytek Corp., 334 F.3d 1314, 1324-25 (Fed.

Cir. 2003); Phillips Petroleum Co. v. Huntsman Polymers Corp., 157 F.3d 866, 875

(Fed. Cir. 1998). A patentee may draft different claims to cover different embodiments.

      In addition, Intamin argues that the proper claim interpretation would render

another claim, dependent claim 10, invalid.       Dependent claim 10 addresses the

embodiment where the conductive portion is connected to the movable device. With

claim 1 specifying that the conductive rail extends the length of the fixed device,

dependent claim 10 may well be improper. Thus, Intamin urges this court to construe

claim 1 to retain the validity of claim 10. Under the proper construction of claim 1,

dependent claim 10 erases entirely a limitation of the fixed device part and is thus an

improper dependent claim. Of course, dependent claim 10 has that effect under any

reading of "length" in claim 1. Because claim 1 requires the conductive portion to reach

the length of the fixed device part and claim 10 places the conductive portion on the

passenger car, claim 10 is an improper dependent claim. Thus, construing claim 1 to

mean end to end length does not in itself render claim 10 invalid. In any event, the




05-1546, -1579                             13
claim construction of claim 10 is not before this court. Thus, this court considers but

gives no weight to Intamin's argument relative to claim 10.

       Given this construction, the district court initially determined that Magnetar's Soft

Stop brakes did not infringe because they placed the conducting rail on the passenger

car. Initial Decision, slip op. 12. The district court determined it could not find on

summary judgment that Magnetar's brakes would not infringe this limitation under the

doctrine of equivalents. Id. However, the district court granted summary judgment to

Magnetar because it determined that Magnetar did not contain an intermediary. Id. at

13. Intamin requested reconsideration and the district court determined that there was

a triable issue as to whether Magnetar's brake system can be configured such that the

conducting rail was attached to the track.          Reconsideration Decision, slip op. at 4.

Thus, this court remands to the district court for a determination of whether Magnetar's

brakes would infringe this limitation, either literally or under the doctrine of equivalents. 2

                                              III

       Magnetar cross appeals the district court's denial of Rule 11 sanctions against

Intamin. Fee Decision, slip op. at 2-3. This court reviews a district court's decision

regarding Rule 11 sanctions for an abuse of discretion. Cooter & Gell v. Hartmarx

Corp., 496 U.S. 384, 405 (1990). Further, this court applies the law of the regional

circuit in its review, Antonious v. Spalding & Evenflo Cos., 274 F.3d 1066, 1072 (Fed.

Cir. 2002), which in this case is the Ninth Circuit.




       2
               The parties in this appeal discuss additional claim limitations that were not
construed by the district court. This court encourages the district court to consider all of
the limitations of claim 1 of the '350 patent on remand.


05-1546, -1579                                14
       Rule 11 of the Federal Rules of Civil Procedure imposes a duty on attorneys to

certify by their signature that the pleading or motion is well-grounded in fact, has a basis

in law, and is not filed for an improper purpose. View Eng'g, Inc. v. Robotic Vision Sys.,

208 F.3d 981, 984 (Fed. Cir. 2000).         Under Ninth Circuit law, "sanctions must be

imposed on the signer of a paper if either a) the paper is filed for an improper purpose,

or b) the paper is 'frivolous.'" Townsend v. Holman Consulting Corp., 929 F.2d 1358,

1362 (9th Cir. 1990) (en banc). With regard to complaints, the Ninth Circuit law finds

that "complaints are not filed for an improper purpose if they are non-frivolous." Id. at

1362. Finally, "[t]he Ninth Circuit defines a 'frivolous' claim or pleading for Rule 11

purposes as one that is 'legally or factually "baseless" from an objective perspective . . .

[and made without] a reasonable and competent inquiry.'" Q-Pharma, Inc. v. Andrew

Jergens Comp., 360 F.3d 1295, 1299 (Fed. Cir. 2004) (citing Christian v. Mattel, Inc.,

286 F.3d 1118, 1127 (9th Cir. 2002)).

       On appeal, Magnetar argues that Intamin did not conduct a good faith

investigation of Magnetar's Soft Stop brakes before filing its complaint. This court must

therefore determine whether the district court abused its discretion when it found upon

reconsideration that Intamin had conducted a reasonable and competent inquiry at the

time it filed its infringement complaint.

       Magnetar argues on appeal that Intamin's pre-filing investigation was insufficient

because it did not obtain and physically cut open the metal casing on the magnets in

Magnetar's brake system.       The record shows that Magnetar's system encased the

magnets in metal tubes.        Accordingly, a visual inspection would not disclose the

orientation of the magnets within the tubes. In Judin v. United States, 110 F.3d 780,




05-1546, -1579                               15
784 (Fed. Cir. 1997), this court held that the district court abused its discretion in not

granting Rule 11 sanctions against a patentee who failed to obtain a sample of the

product as part of its pre-filing investigation. However, Judin did not create a blanket

rule that a patentee must obtain and thoroughly deconstruct a sample of a defendant's

product to avoid violating Rule 11. Rather, in Judin, the patentee could have easily

obtained a sample of the accused device (a bar code scanner) for a nominal price from

the post office. In this case, the technology presented the patentee with unreasonable

obstacles to any effort to obtain a sample of Magnetar's amusement ride brake system,

let alone the difficulty of opening the casing.

       In lieu of cutting open the casing, Intamin might have tested a Magnetar device

for magnetic polarities. In Q-Pharma, however, this court did not impose on a patentee

a Rule 11 obligation to perform a simple chemical test on a sample to determine its

composition. 360 F.3d at 1302. Instead, this court found that the patentee satisfied its

Rule 11 obligations with other reasonable pre-filing inquiries. Id. Here, the district court

determined: "In light of the other information [Intamin] had at the time of filing . . . [its]

pre-filing inquiry was reasonable." Reconsideration Decision, slip op. at 7. In particular,

the district court noted that Intamin "evaluated the patent portfolio, analyzed the patent's

validity, determined the scope of the patent's claims, and performed an infringement

analysis."   Id.   The district court further determined that Intamin "reviewed publicly

available documents on [Magnetar's] brakes, inspected [Magnetar's] brakes as installed

on a roller coaster, took photos of the brakes, and reviewed the brakes with experts."

Id. Thus the district court determined that Intamin's pre-filing inquiry was reasonable




05-1546, -1579                               16
under the circumstances. Id. This court discerns no abuse of discretion in the district

court’s determination.

                                             IV

      In conclusion, this court vacates part of the district court's claim construction as

discussed above and remands the decision of non-infringement for further

consideration.   Finding no abuse of discretion, this court affirms the district court's

decision to vacate its previous finding of Rule 11 sanctions.

                                         COSTS

      Each party shall bear its own costs.

                 AFFIRMED-IN-PART, VACATED-IN-PART, and REMANDED




05-1546, -1579                               17