throbber
DDR Holdings, LLC v. Hotels.com, L.P., 773 F.3d 1245 (2014)
`13 U.S.P.Q.2d 1097
`
`73 F-3'1245
`
`nite States Court 0 Appea s,
`
`Iligita River, Inc., De e11 ant.
`
`3 ac 'groun : Patentee nroug 1t mtrmgement act10n agalnst competltors, a eglng mfrmgement 01 patents re atmg to an e-
`._,
`commerce system an. met 10 provu mg 10sts w1t 1 transparent. context sens1t1ve e-commerce supporte pages.
`
`Shopify Exhibit 1017
`
`Jury returne a ver 1ct agalnst competitors, competitors 11 e
`
`renewe motlons tor Ju gment as a matter of aw (JMOL).
`
`. 11d one competitor moved for a new trial. The United States District Court for the Eastern District of Texas,
`
`I! 954 F.Supp.2d 509, denied motion. Competitors appealed.
`
`‘ tter a
`
`Holdings: he Court of Appeals, Chen, Circuit Judge, held that:
`
`c a1ms 01 one patent were 111va 1 as ant1c1pateo;
`
`.asserted claims of patents were not so manifestly abstract as to render them invalid for failing to claim patentable
`u Ject matter;
`
`atent was not inva 10 for 1n efmiteness; an
`
`[] ustant1a ev1 ence supporte
`
`‘
`
`1rect mtrmgement ny secon competltor.
`
`Affirmed in part, reversed in part, and remanded.
`
`IV ayer, Circuit Ju ge,
`
`e
`
`1ssentmg opinion.
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`WestHeadnotes(22)
`
`[1]
`
`FederalCourts
`Takingcaseorquestionfromjury;judgmentasamatteroflaw
`
`CourtofAppealsreviewsthedenialofamotionforjudgmentasamatteroflawdenovo.
`
`1Casesthatcitethisheadnote
`
`[2]
`
`FederalCivilProcedure
`WeightandSufficiencyofEvidence
`
`FederalCivilProcedure
`Conclusionsorinferencesfromevidence
`
`FederalCivilProcedure
`Evidence
`
`Judgmentasamatteroflawisappropriateifthefactsandinferencespointsostronglyandoverwhelminglyin
`favorofonepartythatthecourtconcludesthatreasonablejurorscouldnotarriveatacontraryverdict.
`
`Casesthatcitethisheadnote
`
`[3]
`
`FederalCourts
`Takingcaseorquestionfromjury;judgmentasamatteroflaw
`
`Inreviewingthedenialofamotionforjudgmentasamatteroflaw,CourtofAppealsmustpresumethatthe
`juryresolvedallfactualdisputesintheprevailingparty'sfavor.
`
`Casesthatcitethisheadnote
`
`[4]
`
`Patents
`Extentofsimilarityordifferencebetweenpriorartandclaimedinventioningeneral
`
`Apatentclaimisanticipatedifasinglepriorartreferenceexpresslyorinherentlydiscloseseverylimitationof
`theclaim.35U.S.C.A.§102(a).
`
`5Casesthatcitethisheadnote
`
`[5]
`
`Patents
`Constructionofclaimsandcomparisonwithpriorartingeneral
`
`Anticipationchallengesmustfocusonlyonthelimitationsactuallyrecitedinthepatentclaims.35U.S.C.A.
`§102(a).
`
`7Casesthatcitethisheadnote
`
`[6]
`
`Patents
`Novelty;anticipation
`
`Whetherareferencedisclosesapatentclaimlimitationisaquestionoffactreviewedforsubstantialevidence.
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`2
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`5Casesthatcitethisheadnote
`
`[7]
`
`Patents
`Degreeofproof
`
`Invalidityofapatentbyanticipationmustbeprovenbyclearandconvincingevidence.35U.S.C.A.§102(a).
`
`3Casesthatcitethisheadnote
`
`[8]
`
`Patents
`Particularproductsorprocesses
`
`Clear and convincing evidence in the record established that competitor's prior art secure sales system
`anticipatedtheassertedclaimsofpatentrelatingtoane-commercesystemandmethodprovidinghostswith
`transparent,contextsensitivee-commercesupportedpages,andthuspatentwasinvalidasanticipated;like
`thepatentedsystem,competitor'ssystemgeneratedwebpagesthatallowedwebsitevisitorstopurchaseand
`downloaddigitalproductsoftheirchoice,butstillretainedthelookandfeelofthehost'ssite.35U.S.C.A.§
`102(a).
`
`2Casesthatcitethisheadnote
`
`[9]
`
`Patents
`PatentabilityandValidity
`
`CourtofAppealsreviewsthedistrictcourt'sdeterminationofpatenteligibilitydenovo.35U.S.C.A.§101.
`
`3Casesthatcitethisheadnote
`
`[10]
`
`Patents
`Lawsofnature,naturalphenomena,andabstractideas;fundamentalprinciples
`
`Todistinguishpatentsthatclaimlawsofnature,naturalphenomena,andabstractideasfromthosethatclaim
`patent-eligibleapplicationsofthoseconcepts,courtsfirstdeterminewhethertheclaimsatissuearedirectedto
`oneofthosepatent-ineligibleconcepts,andifso,thenconsidertheelementsofeachclaim—bothindividually
`andasanorderedcombination—todeterminewhethertheadditionalelementstransformthenatureofthe
`claimintoapatent-eligibleapplicationofthatabstractidea.35U.S.C.A.§101.
`
`303Casesthatcitethisheadnote
`
`[11]
`
`Patents
`Useoroperationofmachineorapparatusasaffectingprocess;“machineortransformation”test
`
`Recitation of generic computer limitations does not make an otherwise ineligible claim patent-eligible. 35
`U.S.C.A.§101.
`
`175Casesthatcitethisheadnote
`
`[12]
`
`Patents
`Businessmethods;Internetapplications
`
`Claimsofpatentsrelatingtoane-commercesystemandmethodprovidinghostswithtransparent,context
`sensitive e-commerce supportedpages, thatinvolved storing andserving webpages having the similar look
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`3
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`andfeelofanotheranddifferentwebpage,disclosedaspecificsetofphysicallinkagesthatinvolvedadata
`store,server,computer,thattogether,andthroughtheclaimedinterconnectivity,accomplishedtheprocess
`ofdisplayingcompositewebpageshavingthelookandfeelofthesourcewebpage,andthereforetheclaims
`satisfiedthemachine-or-transformationtest,andwerenotsomanifestlyabstractastorendertheminvalidfor
`failingtoclaimpatentablesubjectmatter.35U.S.C.A.§101.
`
`48Casesthatcitethisheadnote
`
`[13]
`
`FederalCourts
`Intellectualproperty
`
`PatentindefinitenessisaquestionoflawthatCourtofAppealsreviewsdenovo.35U.S.C.A.§112.
`
`3Casesthatcitethisheadnote
`
`[14]
`
`Patents
`Ambiguity,Uncertainty,orIndefiniteness
`
`Definitenessrequirementforpatentsfocusesonwhetherapatent'sclaims,viewedinlightofthespecification
`and prosecution history, inform those skilled in the art about the scope of the invention with reasonable
`certainty;theinquirytrainsontheunderstandingofaskilledartisanatthetimeofthepatentapplication.35
`U.S.C.A.§112.
`
`19Casesthatcitethisheadnote
`
`[15]
`
`Patents
`Lackofantecedentbasis
`
`Whenapatentclaimtermdependssolelyontheunrestrained,subjectiveopinionofaparticularindividual
`purportedly practicing the invention, without sufficient guidance in the specification to provide objective
`directiontooneofskillintheart,thetermisindefinite.35U.S.C.A.§112.
`
`11Casesthatcitethisheadnote
`
`[16]
`
`Patents
`Particularproductsorprocesses
`
`Phrase“lookandfeel”hadanestablished,sufficientlyobjectivemeaningintheart,andthuspatentrelatingto
`ane-commercesystemandmethodprovidinghostswithtransparent,context-sensitivee-commercesupported
`pages,whichusedsuchphraseconsistentwiththatmeaningwasnotinvalidforindefiniteness.35U.S.C.A.§
`112.
`
`7Casesthatcitethisheadnote
`
`[17]
`
`Patents
`Particularfieldsofinvention
`
`Substantialevidencesupportedjury'sverdictofdirectinfringementastothe“lookandfeel”elementsofpatent
`relatingtoane-commercesystemandmethodprovidinghostswithtransparent,context-sensitivee-commerce
`supportedpages;juryhadpublishedimagesofallninewebsitepairsasevidencebeforeittomaketheultimate
`factualdeterminationthatthelookandfeelofthehostcorrespondedtotheaccusedwebsites,andpatentee
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`4
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`presentedexperttestimonycomparingthewebsitepairsforsubstantialsimilaritiesandlistingoutthesimilarities
`inademonstrativeexhibitbeforethejury.
`
`1Casesthatcitethisheadnote
`
`[18]
`
`FederalCourts
`Interest
`
`CourtofAppealsreviewsadistrictcourt'sawardofprejudgmentinterestforanabuseofdiscretion.
`
`Casesthatcitethisheadnote
`
`[19]
`
`Interest
`Particularcasesandissues
`
`Prejudgment interest should ordinarily be awarded after a finding of patent infringement, absent some
`justificationforwithholdingsuchanaward.35U.S.C.A.§284.
`
`3Casesthatcitethisheadnote
`
`[20]
`
`Patents
`Ingeneral;utility
`
`USPatent6,629,135.Cited.
`
`Casesthatcitethisheadnote
`
`[21]
`
`Patents
`Ingeneral;utility
`
`USPatent6,993,572.Invalid.
`
`Casesthatcitethisheadnote
`
`[22]
`
`Patents
`Ingeneral;utility
`
`USPatent7,818,399.Infringed.
`
`Casesthatcitethisheadnote
`
`AttorneysandLawFirms
`
`*1248 LouisJ.Hoffman,HoffmanPatentFirm,ofScottsdale,AZ,arguedforPlaintiff–Appellee.OnthebriefwasIan
`B.Crosby,SusmanGodfreyLLP,ofSeattle,WA.
`
`NormanH.Zivin,Cooper&DunhamLLP,ofNewYork,NY,arguedforDefendants–Appellants,NationalLeisure
`Group,Inc.,etal.WithhimonthebriefwasToniaA.Sayour.
`
`BeforeWALLACH,MAYER,andCHEN,CircuitJudges.
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`5
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`Opinion
`
`OpinionforthecourtfiledbyCircuitJudgeCHEN.
`
`DissentingopinionfiledbyCircuitJudgeMAYER.
`
`CHEN,CircuitJudge.
`
`Defendants–AppellantsNationalLeisureGroup,Inc.andWorldTravelHoldings,Inc.(collectively,NLG)appealfrom
`afinaljudgmentofthe UnitedStatesDistrict Court fortheEasternDistrictof Texasenteredin favorofPlaintiff–
`AppelleeDDRHoldings,LLC(DDR).Followingtrial,ajuryfoundthatNLGinfringestheassertedclaimsofU.S.
`PatentNos.6,993,572(the′572patent)and7,818,399(the′399patent).Thejuryalsofoundtheassertedclaimsofthe
`′572and′399patentsarenotinvalid.ThedistrictcourtdeniedNLG'srenewedmotionforjudgmentasamatteroflaw
`(JMOL)on,interalia,noninfringementandinvalidityoftheassertedpatents.Thedistrictcourtsubsequentlyentereda
`finaljudgmentconsistentwiththejury'sfindingsoninfringement,validity,anddamages,andawardedDDRpre-and
`post-judgmentinterestandcosts.Weaffirmthedistrictcourt'sdenialofNLG'smotionsforJMOLofnoninfringement
`andinvalidityofthe′399patent.Becauseweconcludethatthe′572patentisanticipatedasamatteroflaw,wereverse
`the district court's denial of JMOLon the validity of the ′572 patent, and remand to the district court for further
`proceedingsconsistentwithourdecision.
`
`I.BACKGROUND
`
`DDRistheassigneeofthe′572and′399patents.The′572and′399patentsarebothcontinuationsofU.S.Patent
`No.6,629,135(the′135patent),whichhasaprioritydateofSeptember17,1998.Eachofthesepatentsisdirectedto
`systemsandmethodsofgeneratingacompositewebpagethatcombinescertainvisualelementsofa“host”websitewith
`contentofathird-partymerchant.Forexample,thegeneratedcompositewebpagemaycombinethelogo,background
`color,andfontsofthehostwebsitewithproductinformationfromthemerchant.′135patent,12:46–50.
`
`Thecommonspecificationofthepatents-in-suitexplainsthatpriorartsystemsallowedthird-partymerchantsto“lurethe
`[hostwebsite's]visitortrafficaway”fromthehostwebsitebecausevisitorswouldbetakentothethird-partymerchant's
`websitewhentheyclickedonthemerchant'sadvertisementonthehostsite.Id.at2:26–30.Thepatents-in-suitdisclosea
`systemthatprovidesasolutiontothisproblem(forthehost)bycreatinganewwebpagethatpermitsawebsitevisitor,
`inasense,tobeintwoplacesatthesametime.Onactivationofahyperlinkonahostwebsite—suchasanadvertisement
`forathird-partymerchant—insteadoftakingthevisitortothemerchant'swebsite,thesystemgeneratesanddirectsthe
`visitortoacompositewebpagethatdisplaysproductinformationfromthethird-partymerchant,butretainsthehost
`website's *1249 “lookandfeel.”Id.at3:9–21.Thus,thehostwebsitecandisplayathird-partymerchant'sproducts,but
`retainitsvisitortrafficbydisplayingthisproductinformationfromwithinageneratedwebpagethat“givestheviewer
`ofthepagetheimpressionthatsheisviewingpagesservedbythehost”website.Id.at2:56–63,3:20–22.
`
`Representativeclaim13ofthe′572patentrecites:
`
`13.Ane-commerceoutsourcingsystemcomprising:
`
`a)adatastoreincludingalookandfeeldescriptionassociatedwithahostwebpagehavingalinkcorrelatedwitha
`commerceobject;and
`
`b)acomputerprocessorcoupledtothedatastoreandincommunicationthroughtheInternetwiththehostwebpage
`andprogrammed,uponreceivinganindicationthatthelinkhasbeenactivatedbyavisitorcomputerinInternet
`communicationwiththehostwebpage,toserveacompositewebpagetothevisitorcomputerwit[h]alookandfeel
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`6
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`basedonthelookandfeeldescriptioninthedatastoreandwithcontentbasedonthecommerceobjectassociated
`wit[h]thelink.
`
`Systemclaim13requiresthattherecitedsystemprovidethehostwebsitewitha“link”that“correlate[s]”thehostwebsite
`witha“commerceobject.”The“commerceobject”istheproductorproductcatalogofthemerchant.′135patent,3:7–
`13.Afterrecognizingthatawebsitevisitorhasactivatedthelink,thesystemretrievesdatafroma“datastore”that
`describesthe“lookandfeel”ofthehostwebpage,whichcanincludevisualelementssuchaslogos,colors,fonts,and
`pageframes.Id.at12:46–50.Theclaimedsystemthenconstructsacompositewebpagecomprisinga“lookandfeel”
`basedonthelookandfeeldescriptioninthedatastorealongwithcontentbasedonproductinformationfromthe
`associatedmerchant'sproductcatalog.
`
`The′399patentisdirectedtoasimilarsystemwithagreateremphasisona“scalable[computer]architecture”toserve
`“dynamicallyconstructed[web]pages”associatedwithmultiplehostwebsiteandmerchantpairs.′135patent,3:32–36.
`Representativeclaim19ofthe′399patentrecites:
`
`19. A system useful in an outsource provider serving web pages offering commercial opportunities, the system
`comprising:
`
`(a) a computer store containing data, for each of a plurality of first web pages, defining a plurality of visually
`perceptibleelements,whichvisuallyperceptibleelementscorrespondtothepluralityoffirstwebpages;
`
`(i)whereineachofthefirstwebpagesbelongstooneofapluralityofwebpageowners;
`
`(ii)whereineachofthefirstwebpagesdisplaysatleastoneactivelinkassociatedwithacommerceobjectassociated
`withabuyingopportunityofaselectedoneofapluralityofmerchants;and
`
`(iii)whereintheselectedmerchant,theout-sourceprovider,andtheownerofthefirstwebpagedisplayingthe
`associatedlinkareeachthirdpartieswithrespecttooneother;
`
`(b) a computer server at the outsource provider, which computer server is coupled to the computer store and
`programmedto:
`
`(i)receivefromthewebbrowserofacomputeruserasignalindicatingactivationofoneofthelinksdisplayedby
`oneofthefirstwebpages;
`
`*1250 (ii)automaticallyidentifyasthesourcepagetheoneofthefirstwebpagesonwhichthelinkhasbeen
`activated;
`
`(iii)inresponsetoidentificationofthesourcepage,automaticallyretrievethestoreddatacorrespondingtothe
`sourcepage;and
`
`(iv)usingthedataretrieved,automaticallygenerateandtransmittothewebbrowserasecondwebpagethatdisplays:
`(A)informationassociatedwiththecommerceobjectassociatedwiththelinkthathasbeenactivated,and(B)the
`pluralityofvisuallyperceptibleelementsvisuallycorrespondingtothesourcepage.
`
`Similartoclaim13ofthe′572patent,systemclaim19ofthe′399patentrequiresthata“datastore”hold“visually
`perceptibleelements”(or“‘lookandfeel’elements”)that“visually...correspond”toahostwebpage.Thehostweb
`pagemustincludealinkassociatedwitha“buyingopportunity”withamerchant.Onceavisitoractivatesthislink,
`theclaimedsystemgeneratesandtransmitstothewebsitevisitor'swebbrowseracompositewebpagethatincludes
`productinformationofthemerchantandthe“lookandfeel”ofthehostwebsite(i.e.,“thepluralityofvisuallyperceptible
`elementsvisuallycorrespondingtothe[hostweb]page”).
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`7
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`Claim19furtherrequiresthatthedatastoremuststore“lookandfeel”descriptionsformultiplehostsandthateach
`linkmustbeassociatedwithaparticularmerchant'sproductcatalog.Claim19alsorequiresthatthemerchant,system
`operator, and host website be “third parties with respect to one another.” When a website visitor activates a link
`associatedwitha merchant's product catalog, the claimed systemidentifiesthe hostwebpage andthen transmitsa
`compositewebpageusingtheproper“lookandfeel”elementsofthehostwebsiteinthedatastoreandtheproduct
`informationfromtheassociatedmerchant.
`
`The′572patentissuedonJanuary31,2006.Onthesameday,DDRfiledsuitagainstNLG,DigitalRiver,Inc.(Digital
`River),andnineotherdefendants,assertinginfringementofvariousclaimsofthe′135and′572patents.NLGisatravel
`agencythatsellscruisesinpartnershipwithtravel-orientedwebsitesandmajorcruiselinesthroughtheInternet.DDR's
`suitaccusedNLGofinfringingthe′135and′572patentsbyprovidingasystemforcruise-oriented(host)websites
`thatallowsvisitorstobookcruisesonmajorcruiselines(merchants).JointAppendix(J.A.)261.Inparticular,whena
`visitorononeofthesecruise-oriented(host)websitesclicksonanadvertisementforacruise,NLG'ssystemgenerates
`anddirectsthevisitortoacompositewebpagethatincorporates“lookandfeel”elementsfromthehostwebsiteand
`productinformationfromthecruiseline(merchant).
`
`DDR'ssuitwasstayedduringthependencyofanexpartereexaminationofthe′135and′572patentsrequestedbyDDR
`thatwasbasedonpriorartidentifiedbythedefendants.ShortlyaftertheU.S.PatentandTrademarkOfficeconfirmed
`thevalidityofthe′135and′572patentsandthestaywaslifted,the′399patentissuedonOctober19,2010.DDR
`subsequentlyamendeditscomplainttoassertinfringementofthispatentbyseveralofthedefendants,includingNLG.
`
`DuringMarkmanproceedings,thepartiesstipulatedtoaconstructionofseveralterms,including“lookandfeel,”which
`appearsineachoftheassertedclaimsofthe′572patent,and“visuallyperceptibleelements,”whichappearsineach
`oftheassertedclaimsofthe′399patent.J.A.542.For“lookandfeel,”thepartiesagreedtoa *1251 construction
`of:“Asetofelementsrelatedtovisualappearanceanduserinterfaceconveyinganoverallappearanceidentifyinga
`website;suchelementsincludelogos,colors,pagelayout,navigationsystems,frames,‘mouse-over’effects,orothers
`elementsconsistentthroughsomeorallofthewebsite.”Id.For“visuallyperceptibleelements,”thepartiesagreedtoa
`constructionof:“lookandfeelelementsthatcanbeseen.”Id.Thedefendants,however,expresslyreservedtheirrights
`toarguethatboththe“lookandfeel”and“visuallyperceptibleelements”termsareindefinite,butofferedthestipulated
`constructions“inthealternative.”Id.
`
`BetweenJune2012andJanuary2013,DDRsettledwithalldefendantsexceptforNLGandDigitalRiver.Thecase
`eventuallyproceededtoajurytrialinOctober2012.Attrial,DDRaccusedNLGandDigitalRiverofdirectandwillful
`infringementofclaims 13,17,and20 of the′572patent, and accusedNLG—butnotDigitalRiver—of directand
`willfulinfringementofclaims1,3,and19ofthe′399patent.DDRalsoaccusedNLGandDigitalRiverofinducing
`infringementofclaim17ofthe′572patent.
`
`ThejuryfoundthatNLGandDigitalRiverdirectlyinfringedtheassertedclaimsofthe′572patentandthatNLG
`directlyinfringedtheassertedclaimsofthe′399patent,butthatNLGandDigitalRiver'sinfringementwasnotwillful.
`ThejuryfoundthatNLGandDigitalRiverdidnotinduceinfringementofclaim17ofthe′572patent.Thejuryalso
`foundthattheassertedclaimswerenotinvalid.ThejurydeterminedDDRwasentitledto$750,000indamagesfrom
`bothNLGandDigitalRiverforinfringingDDR'spatents.
`
`Attheconclusionoftrial,NLGandDigitalRiverrenewedmotionsforJMOLpursuanttoRule50(b)oftheFederal
`RulesofCivilProcedure(FRCP)onseveralgrounds.NLGcontendedtheassertedclaimsofthe′572and′399patents
`areinvalidunder35U.S.C.§101becausetheclaimsaredirectedtopatent-ineligiblesubjectmatterandinvalidunder
`35U.S.C.§112¶2 1 becausetheterms“lookandfeel”and“visuallyperceptibleelements”areindefinite.NLGalso
`contendedthatneitherthejury'sfindingofinfringementnoritsawardofdamageswassupportedbysubstantialevidence.
`NLGalsoallegedthedistrictcourtmadeseveralunfairandprejudicialevidentiaryrulings.
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`8
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`DigitalRivercontendedthattheassertedclaimsofthe′572patentareinvalidaseitheranticipatedunder35U.S.C.§102,
`obviousunder35U.S.C.§103,orindefiniteunder35U.S.C.§112¶2.DigitalRiveralsocontendedthatthejury'sfinding
`ofinfringementwasnotsupportedbysubstantialevidence.DigitalRivermovedforanewtrialpursuanttoFRCP59.
`
`ThedistrictcourtdeniedNLGandDigitalRiver'smotionsforJMOLandDigitalRiver'sFRCP59motionforanew
`trial.Overthedefendants'objections,thedistrictcourtawardedDDRanadditional$284,404inprejudgmentinterest
`pursuantto35U.S.C.§284.ThedistrictcourtenteredafinaljudgmentinfavorofDDR,andNLGandDigitalRiver
`timelyappealed.NLGandDigitalRiver'sappealswereconsolidatedandfullybriefed.Priortooralargument,DDRand
`DigitalRiversettled,andwegrantedDigitalRiver'smotiontoterminateitsappeal.D.I.65,68.NLG'sappealcontinued.
`Wehave *1252 jurisdictionpursuantto28U.S.C.§1295(a)(1).
`
`II.DISCUSSION
`
` Since the denial of a motion for JMOL is not patent law-specific, regional circuit law applies. The
` [3]
` [2]
`[1]
`FifthCircuit reviewsthe denialofaJMOLmotiondenovo.See,e.g.,Harris Corp.v.Ericsson Inc.,417 F.3d 1241,
`1248 (Fed.Cir.2005). In the Fifth Circuit, JMOL is appropriate if “the facts and inferences point so strongly and
`overwhelminglyinfavorofonepartythatthecourtconcludesthatreasonablejurorscouldnotarriveatacontrary
`verdict.” Id. The Court “must presume that the jury resolved all factual disputes in the [prevailing party's] favor.”
`TransoceanOffshoreDeepwaterDrilling,Inc.v.MaerskDrillingUSA,Inc.,699F.3d1340,1347(Fed.Cir.2012)(applying
`FifthCircuitlawtothereviewofadistrictcourt'sgrantofJMOL).
`
`A.Anticipation
`
`Weturnfirsttothedistrictcourt'sdenialofDigitalRiver'smotionforJMOLofinvalidityofthe′572
` [7]
` [6]
` [5]
`[4]
`patentbasedon35U.S.C.§102(a).Apatentclaimisanticipatedifasinglepriorartreferenceexpresslyorinherently
`discloseseverylimitationoftheclaim.See,e.g.,OrionIP,LLCv.HyundaiMotorAm.,605F.3d967,975(Fed.Cir.2010).
`Anticipationchallengesunder§102mustfocusonlyonthelimitationsactuallyrecitedintheclaims.SeeConstantv.Adv.
`Micro–Devices,Inc.,848F.2d1560,1570–71(Fed.Cir.1988)(finding“limitations[]notfoundanywhereintheclaims”
`tobeirrelevanttoananticipationchallenge).Whetherareferencedisclosesalimitationisaquestionoffact,andajury's
`findingsonquestionsoffactarereviewedforsubstantialevidence.See,e.g.,DawnEquip.Co.v.Ky.FarmsInc.,140F.3d
`1009,1014(Fed.Cir.1998).Invaliditybyanticipationmustbeprovenbyclearandconvincingevidence.SeeMicrosoft
`Corp.v.i4iL.P.,–––U.S.––––,131S.Ct.2238,2242,180L.Ed.2d131(2011).
`
`Onappeal,thepartiesonlydisputewhetherDigitalRiver'spriorartSecureSalesSystem(SSS)satisfiesthe“lookand
`feel”limitation;DDRdoesnotdisputethattheSSSsatisfieseveryotherlimitationofthe′572patent'sassertedclaims.
`NLG,whichadoptedDigitalRiver'santicipationchallengetothe′572patent, 2 arguesthatnoevidencesupportsthe
`jury'sfindingthattheSSSdoesnotdisclosethe“lookandfeel”limitation,sinceitshowedthejurymultipleexamples
`ofcompositewebpagesgeneratedbytheSSSwitha“lookandfeel”basedonasetof“lookandfeel”elementsfrom
`thecorrespondinghostwebsite.
`
`*1253 DDRcontends that,as the district court determined, “itis upto the trier of fact to determine whether the
`combinationofelementsmakinguptheoverallappearanceofawebsitehasasimilar‘lookandfeel’ascomparedto
`anotherwebsite.”DDRHoldings,LLCv.Hotels.com,L.P.,954F.Supp.2d509,517(E.D.Tex.2013).DDRcontends
`thatthejuryreviewedsubstantialevidencethatDigitalRiver'sSSSdidnotreplicatethehostwebsite's“lookandfeel”
`intermsof“overallappearance”andthatthewebpagesgeneratedbytheSSSdidnotshow“correspondenceofoverall
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`9
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`appearance.”Inparticular,DDRarguesthattheSSSdidnotsatisfythislimitationsinceitdidnotreplicateasufficient
`numberof“lookandfeel”elementsfromthehostwebpage.Appellee'sBr.45–46.
`
`Wefindthattherecordallowsonlyonereasonablefinding:clearandconvincingevidenceestablishesthatDigital
`[8]
`River'spriorartSSSanticipatestheassertedclaimsofthe′572patent.Therecordlackssubstantialevidencetosupport
`thejury'sfindingthattheassertedclaimsofthe′572patentarenotanticipated.Therefore,thedistrictcourterredby
`denyingthedefendants'motionforJMOLofinvalidityofthe′572patentunder35U.S.C.§102(a).
`
`DigitalRiver'spriorartSSSwasoperationalandsoldtoitsfirstcustomerbyAugust12,1996.J.A.6618–23.ByAugust
`1997,morethanayearbeforethefilingdateoftheprovisionalapplicationforthe′135patent,DigitalRiver'sSSS
`hadattractedits500thcustomer.J.A.6257.DigitalRiveradvertiseditsSSSasasystemforgeneratingwebpagesthat
`allowedwebsitevisitorsto“purchaseanddownloadthedigitalproductsoftheirchoice,”butstill“retain[ed]thelook
`andfeelof[thehost's]site.”J.A.6202(emphasisadded).TheSSSwasactivatedwhenvisitorsonahost'swebsiteclicked
`a“website‘buy’button”hyperlink.J.A.6320.DigitalRiver'sadvertisementsexplainedthat“[w]hen[websitevisitor]
`customerswanttopurchase,theypushthe‘buy’buttonandaretransferredimmediatelyandtransparentlytotheDigital
`RiverCentralCommerceServer.”J.A.6202.ThiscomponentoftheSSSthengeneratedandservedcompositewebpages
`towebsitevisitorsthatincorporated“lookandfeel”elementsofthehostwebsiteandproductinformationassociated
`withthehostwebsite's“webstore”inamannerthat“replicate[d]thelookandfeelofthe[host's]Website.”J.A.6320
`(emphasisadded).These“lookandfeel”elementsandthisproductinformationcontentwerestoredbyDigitalRiverin
`adatawarehouseandretrievedforincorporationintothegeneratedcompositewebpagebasedonacorrelationwiththe
`“buy”buttonhyperlinkonthehostwebsite.Seeid.Inthisway,DigitalRiver'sSSSwouldallow“transaction[sto]take[]
`placeinthesellingenvironment[thehostwebsitehad]created,surroundedbythelookandfeelof[thehostwebsite's]
`identity....There[wouldbe]nosensation[forawebsitevisitor]ofbeingsuddenlyhustledofftoanotherlocation.”J.A.
`6123(emphasisadded).
`
`During trial, a Digital River witness testified at length on how the SSS generated composite web pages with “look
`andfeel”elementsfromhostwebsites,andoperatedtheSSSforthejury.DigitalRiveralsoshowedthejuryseveral
`compositewebpagesgeneratedbytheSSSforhostwebsitesbeforetheearliestprioritydateofthe′572patent,including
`acompositewebpagethatincorporatedseveralelementsidentifiedinDDR'spatentsorbyDDR'sexpertattrialas“look
`andfeelelements”:thehostwebsite'slogo,backgroundcolor,andprominentcircularicons.J.A.8856–57(composite
`webpage),7502(hostwebsite);seealsoJ.A.8858–61(compositeweb *1254 pageincorporatinghostwebsitelogo,
`colors,fonts),6122(examplewebpagefromhostwebsite).
`
`Theparties'stipulatedconstructionof“lookandfeel”requiresthegeneratedcompositewebpagetoincludeasetof
`elementsfromthehostwebsite,eachoftheseelementsbeinga“lookandfeelelement”describedinthespecification
`that“convey[s]anoverallappearanceidentifyingawebsite.”J.A.542.Consistentwiththespecification,thestipulated
`constructiondefinesthese“lookandfeelelements”that“conveyanoverallappearanceidentifyingawebsite”to“include
`logos,colors,pagelayout,navigationsystems,frames,‘mouse-over’effects,orotherelementsthatareconsistentthrough
`someorallofaHost'swebsite.”Id.;seealso′572patent,14:11–14.DigitalRiver'sSSSclearlysatisfiesthislimitation.For
`example,DigitalRivershowedthejuryahostwebsitethatincludedastylizedlogo,aparticularbackgroundcolor,and
`prominentcircularicons.J.A.7502.TheSSSgeneratedapriorartcompositewebpagethatincorporatedeachofthese
`“lookandfeel”elements.J.A.8856–57;seealsoJ.A.6172(hostwebsite)and6171(SSS-generatedpriorartcomposite
`webpageincorporatinglogo,navigationalmenu,andcolor“lookandfeel”elements).Andasexplainedabove,theSSS
`wasconsistentlypromotedandadvertisedascreatingacompositewebpagethatretainedthe“lookandfeel”ofthehost
`website.E.g.,J.A.6123,6202,6320.
`
`BoththedistrictcourtandDDRintroducedalimitationfoundneitherinthe′572patent'sclaimsnortheparties'
`stipulatedconstruction. Inparticular,thedistrictcourt introduced arequirementthat the generated composite web
`page have an “overall match” in appearance with the host website, beyond what is expressly recited by the claims.
`
`©2018ThomsonReuters.NoclaimtooriginalU.S.GovernmentWorks.
`
`10
`
`

`

`DDRHoldings,LLCv.Hotels.com,L.P.,773F.3d1245(2014)
`
`113U.S.P.Q.2d1097
`
`DDRHoldings,954F.Supp.2dat517;seealsoAppellee'sBr.47.Thereisnothing,however,intheparties'stipulated
`constructionof“lookandfeel,”theclaimlanguage,orthespecificationthatrequiresthegeneratedcompositewebpage
`tomatchthehostwebsiteortoincorporateaspecificnumber,proportion,orselectionoftheidentified“lookandfeel”
`elementsonahostwebsite.
`
`Inordertosatisfythislimitation,itissufficientthat“lookandfeel”elementsidentifyingthehostwebsitearetransferred
`toanddisplayedonthegeneratedcompositewebpage.Forexample,independentclaim13ofthe′572patentmerely
`requiresthatthegeneratedcompositewebpagehavea“lookandfeelbasedonthelookandfeeldescriptioninthedata
`storeandcontentbasedonthecommerceobjectassociatedwit[h]thelink.”Independentclaim17requiresonlythatthe
`generatedcompositewebpagehavea“lookandfeelcorrespondingtothestoredlookandfeeldescription”ofthehost
`website.Thereisnoclaimlanguagerequiringan“overallmatch”oraspecificnumberof“lookandfeel”elements.
`
`Further,thecommonspecificationexplainsthat“[t]helookandfeeliscapturedbyselectinganexamplepage[from]
`thehost,

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