Patent Case Summaries - May 2021 #1

Alston & Bird
Contact

A weekly summary of the precedential patent-related opinions issued by the Court of Appeals for the Federal Circuit and the opinions designated precedential or informative by the Patent Trial and Appeal Board.


Cap Export, LLC, et al. v. Zinus, Inc., et al., No. 2020-2087 (Fed. Cir. (C.D. Cal.) May 5, 2021). Opinion by Dyk, joined by Bryson and Hughes.

Zinus owns a patent directed to an “assemblable mattress support.” Cap Export filed a declaratory judgment action against Zinus, alleging that the claims are invalid and not infringed. The district court awarded Zinus summary judgment of no invalidity, relying on the testimony of Zinus’s then-president and testifying technical expert. The parties then stipulated to a final judgment of infringement, validity, damages in the amount of $1.1 million, and a permanent injunction.

Later, Cap Export discovered evidence that the provided testimony had been false. Cap Export therefore filed a motion to vacate the judgment and injunction under Federal Rule of Civil Procedure 60(b)(3), which provides grounds for relief for reason of “fraud . . . , misrepresentation, or misconduct by an opposing party.” Addressing the motion, the district court ordered a video deposition of the president, where he acknowledged that his prior testimony was “literally incorrect” but stated that he did not intend to provide false testimony. The district court found his explanation to be “wholly implausible” and granted the motion under Rule 60(b)(3). Zinus appealed.

On appeal, Zinus argued that under Ninth Circuit precedent, Cap Export had not performed the requisite due diligence to discover fraud. The Federal Circuit disagreed, ruling that the district court did not err in finding that Cap Export had no reason to suspect that the testimony was fraudulent. The later-discovered evidence was not widely available, in the public record, or in Cap Export’s possession.

The Federal Circuit also saw no error or abuse of discretion in the district court’s assessment of the remaining requirements under Rule 60(b)(3). The Federal Circuit summarized that Zinus’s president had “misrepresented his knowledge of highly material prior art,” and “the district court properly declined to condone such conduct.” Thus, the Federal Circuit affirmed the vacatur of the judgment under Rule 60(b)(3).

View Opinion

[View source.]

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Alston & Bird | Attorney Advertising

Written by:

Alston & Bird
Contact
more
less

Alston & Bird on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.