A new Verizon appeal cites a Supreme Court decision that may make it easier to invalidate patent claims.
Caron Carlson, Network World
Thursday, May 10, 2007 10:00 AM PDT
In its appeal of a jury verdict in the patent infringement case brought against it by Verizon, Vonage has turned to a recent U.S. Supreme Court decision that some analysts see as making it easier to invalidate patent claims.
In a brief filed May 9 with the U.S. Court of Appeals for the Federal Circuit, Vonage argued that the March jury verdict relied on a standard of analysis that the Supreme Court has since rejected. The jury found that Vonage's service infringed three patents, and the VoIP provider was ordered to pay US$58 million in damages. Vonage asked the appeals court to rule Verizon's patent claims invalid or to at least order a new trial.
Vonage's argument rests on a decision by the Supreme Court in late April in KSR International vs. Teleflex. In that decision, the Supreme Court looked at the standard for determining whether a patent claim is obvious. It ruled that courts should consider whether an alleged improvement to an invention is more than just the predictable use of existing elements. If, for example, at the time of an invention there was a known problem with an obvious solution, a patent claim may not be valid.
Rather than using this functional approach to determine whether Verizon's patent claims were obvious, the U.S. District Court for the Eastern District of Virginia instructed the jury to use a more rigid standard.
"The District Court's erroneous jury instruction on the wrong standard for [obviousness], thus, materially prejudiced Vonage's ability to present its invalidity case, and is strong grounds for vacating the validity finding," Vonage told the appeals court on May 9.
Verizon's patent claims are invalid because they are based on combinations of predictable elements that already exist, Vonage argued. In other words, it would have been obvious to try the solutions in the patent claims.
"Under KSR, [experts] would have found it obvious to try uniting the VocalTec Iphone software on the Harvard wireless laptops talking to the Internet wirelessly," Vonage said about one of the patents. About another patent, it said that experts "would have found it obvious to try using routing control records, or other similar table lookups, to perform the conditional analysis translation . . . "
Verizon is scheduled to file its brief with the appeals court May 23, and Vonage's reply is due May 30. The court is scheduled to hear arguments June 25.
While the appeal is pending, Vonage is permitted to continue signing up new customers, and the company remains determined to increase its business.
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Summary only...
It's no secret that some wily individuals will look high and low for loopholes to escape a wireless contract, but staging your own death in order to bypass a $175 early termination fee is admittedly extreme. Nevertheless, a frustrated and determined Verizon customer decided to do just that after the carrier refused to let him out of his contract. Insistent that a host of dropped calls and "string of defective cellphones" were reason enough to ditch The Network, he went so far as to "fashion a fake death certificate" and convinced a friend to fax it in. Unfortunately, Verizon caught on to the scheme and yet again refused to let Mr. Taylor out, so as you can probably guess, the perturbed ex-customer begrudgingly coughed up the dough, trashed his phone, and hoped that he "sent a definite message about how much people hate being strapped to a cellphone that doesn't work."
[Via Pocket-Lint]
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