Patent - Festo - Doctrine of Equivalents & Prosecution History Estoppel

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©A. Hawkins 2002

 

Part 2

Festo v. Shoketsu (SMC)[1]  234 F.3d 558 (Fed. Cir. 2000) (en banc) (November 29, 2000)[2]   Reversed

 

Judges and Opinions

Before Mayer, Chief Judge, Newman, Michel, Plager, Lourie, Clevenger, Rader, Schall, Bryson, Gajarsa, Linn, and Dyk, Circuit Judges.

Opinion for the court filed by Circuit Judge Schall, in which Chief Judge Mayer and Judges Plager, Lourie, Clevenger, Bryson, Gajarsa, and Dyk  join; in which Judges Michel, Rader, and Linn join with respect to PARTS III-A, III-B, and III-D; and in which Circuit Judge Michel  joins with respect to PART III-E.

Concurring opinion by Circuit Judge Plager

Concurring opinion by Circuit Judge Lourie

Opinion concurring-in-part and dissenting-in-part with respect to PART III-C filed by Circuit Judge Michel, in which Circuit Judge Rader joins.

Opinion concurring-in-part and dissenting-in-part with respect to PART III-C filed by Judge Rader, in which Judges Michel and Linn join.

Opinion concurring-in-part and dissenting-in-part with respect to PART III-C filed by Judge Linn, in which Judge Rader joins.

Opinion concurring-in-part and dissenting-in-part with respect to PARTS III-A, III-B, III-C, and IV filed by Judge Newman .

 

Opinion by Judge Schall

This is an appeal from the judgment of the United States District Court for the District of Massachusetts that Shoketsu Kinzoku Kogyo Kabushiki Co., Ltd. (also known as SMC Corporation) and SMC Pneumatics, Inc. (collectively, "SMC") infringed U.S. Patent No. 4,354,125 (the "Stoll patent") and U.S. Patent No. B1 3,779,401 (the "Carroll patent"), both owned by Festo Corporation ("Festo"), under the doctrine of equivalents. We took the case en banc to resolve certain issues relating to the doctrine of equivalents that remained in the wake of the Supreme Court's decision in Warner-Jenkinson Co. v. Hilton Davis Chemical Co.[3]  Specifically, we asked the parties to brief the following five questions for rehearing en banc:

1. For the purposes of determining whether an amendment to a claim creates prosecution history estoppel, is "a substantial reason related to patentability,"[4]  limited to those amendments made to overcome prior art under § 102 and § 103, or does "patentability" mean any reason affecting the issuance of a patent?

2. Under Warner-Jenkinson, should a "voluntary" claim amendment--one not required by the examiner or made in response to a rejection by an examiner for a stated reason--create prosecution history estoppel?

3. If a claim amendment creates prosecution history estoppel, under Warner-Jenkinson what range of equivalents, if any, is available under the doctrine of equivalents for the claim element so amended?

4. When "no explanation [for a claim amendment] is established," Warner-Jenkinson,[5]  thus invoking the presumption of prosecution history estoppel under Warner-Jenkinson, what range of equivalents, if any, is available under the doctrine of equivalents for the claim element so amended?

5. Would a judgment of infringement in this case violate Warner-Jenkinson's requirement that the application of the doctrine of equivalents "is not allowed such broad play as to eliminate [an] element in its entirety,"[6]  In other words, would such a judgment of infringement, post Warner-Jenkinson, violate the "all elements" rule?

 

We begin with a brief synopsis of our answers to the en banc questions and a summary of how those answers affect the disposition of this appeal. In response to En Banc Question 1, we hold that "a substantial reason related to patentability" is not limited to overcoming prior art, but includes other reasons related to the statutory requirements for a patent. Therefore, an amendment that narrows the scope of a claim for any reason related to the statutory requirements for a patent will give rise to prosecution history estoppel with respect to the amended claim element.1[7]  In response to En Banc Question 2, we hold that "voluntary" claim amendments are treated the same as other claim amendments; therefore, any voluntary amendment that narrows the scope of a claim for a reason related to the statutory requirements for a patent will give rise to prosecution history estoppel with respect to the amended claim element. In response to En Banc Question 3, we hold that when a claim amendment creates prosecution history estoppel, no range of equivalents is available for the amended claim element. In response to En Banc Question 4, we hold that "unexplained" amendments are not entitled to any range of equivalents. We do not reach En Banc Question 5, for reasons which will become clear in our discussion of the specific case before us.

In view of our answers to the en banc questions, we reverse the judgment that claim 1 of the Stoll patent and claims 5, 6, and 9 of the Carroll patent were infringed under the doctrine of equivalents. The claim elements that were found to be infringed by equivalents were added during prosecution of the Stoll patent and during reexamination of the Carroll patent. The amendments that added those elements narrowed the scope of the claims. Festo has not established explanations unrelated to patentability for these amendments; accordingly, no range of equivalents is available for the amended claim elements. Because the parties agree that SMC does not produce a device that literally satisfies those claim elements, the judgment of infringement must be reversed.

Section I of this opinion provides a brief overview of the doctrine of equivalents and prosecution history estoppel. Section II discusses the Supreme Court's decision in Warner-Jenkinson. Section III sets forth our answers to the en banc questions. In Section IV, we decide the appeal before us by applying our answers to the en banc questions to the facts of the case.

 

DISCUSSION

 

I.  The Doctrine of Equivalents and Prosecution History Estoppel

The doctrine of equivalents prevents an accused infringer from avoiding liability for infringement by changing only minor or insubstantial details of a claimed invention while retaining the invention's essential identity.[8]  The doctrine of equivalents is utilized "'[t]o temper unsparing logic and prevent an infringer from stealing the benefit of the invention.'"[9]  In pursuing these goals, the doctrine attempts to strike a balance between ensuring that the patentee enjoys the full benefit of his patent and ensuring that the claims give "fair notice" of the patent's scope.[10]  This balance can be easily upset, however, because "the doctrine of equivalents, when applied broadly, conflicts with the definitional and public-notice functions of the statutory claiming requirement."[11] 

Prosecution history estoppel is one tool that prevents the doctrine of equivalents from vitiating the notice function of claims.[12]  Actions by the patentee, including claim amendments and arguments made before the Patent Office, may give rise to prosecution history estoppel.[13]  "Prosecution history estoppel precludes a patentee from obtaining under the doctrine of equivalents coverage of subject matter that has been relinquished during the prosecution of its patent application."[14]  Therefore, "[t]he doctrine of equivalents is subservient to . . . [prosecution history] estoppel."[15]  The logic of prosecution history estoppel is that the patentee, during prosecution, has created a record that fairly notifies the public that the patentee has surrendered the right to claim particular matter as within the reach of the patent.

 

II.  Warner-Jenkinson

In this en banc rehearing, we focus our attention on the effect of Warner-Jenkinson on our case law relating to the doctrine of equivalents and prosecution history estoppel.[16] 

The patent before the Court in Warner-Jenkinson disclosed an improved process for purifying dyes which used a method called "ultrafiltration."[17]  During prosecution, the patentee amended the claims to recite that the process is carried out "at a pH from approximately 6.0 to 9.0."[18]  The accused process was carried out at a pH of 5.0.[19]  In light of these facts, the Supreme Court embarked on an "endeavor to clarify the proper scope of the doctrine" of equivalents.[20] 

The Court dismissed the arguments of Warner-Jenkinson (the alleged infringer) that the doctrine of equivalents, as established in Graver Tank, did not survive the 1952 revision of the Patent Act.[21]  The Court nevertheless noted its concern that "the doctrine of equivalents, as it has come to be applied since Graver Tank, has taken on a life of its own."[22]  The Court agreed with Warner-Jenkinson "that Graver Tank did not dispose of prosecution history estoppel as a legal limitation on the doctrine of equivalents."[23]  However, the Court rejected Warner-Jenkinson's argument "that the reason for an amendment during patent prosecution is irrelevant to any subsequent estoppel."[24]  The Court noted that "[i]n each of our cases cited by petitioner and by the dissent below, prosecution history estoppel was tied to amendments made to avoid the prior art, or otherwise to address a specific concern--such as obviousness--that arguably would have rendered the claimed subject matter unpatentable."[25]  The Court therefore saw "no substantial cause for requiring a more rigid rule invoking an estoppel regardless of the reasons for a change."[26]

Turning to the facts at hand, the Court noted that, although the parties did not dispute that the upper pH limit of 9.0 was added to avoid the prior art, "the reason for adding the lower limit of 6.0 is unclear."[27]  Presented "with the problem . . . where the record seems not to reveal the reason for including the lower pH limit of 6.0," the Court "place[d] the burden on the patent holder to establish the reason for an amendment required during patent prosecution."[28]  The Court stated that courts will have to "decide whether the [proffered] reason is sufficient to overcome prosecution history estoppel as a bar to application of the doctrine of equivalents to the element added by that amendment."[29]  The Court also stated that "[w]here no explanation is established, . . . the court should presume that the patent applicant had a substantial reason related to patentability for including the limiting element added by the amendment."[30]  Therefore, "prosecution history estoppel would bar the application of the doctrine of equivalents as to that element."[31]  Because Hilton Davis had "not proffered in . . . [the Supreme] Court a reason for the addition of the lower pH limit," the Court remanded the case for this court to consider whether Hilton Davis had offered reasons for the amendment that added the lower pH limit and to determine whether Hilton Davis should be given the opportunity to establish such reasons.[32]

The Court rejected the other restrictions on the doctrine of equivalents proposed by Warner-Jenkinson.[33]  Specifically, the Court refused to "require judicial exploration of the equities of a case before allowing application of the doctrine of equivalents,"[34] , refused to require "proof of intent" on the part of the alleged infringer before the doctrine of equivalents could be applied,[35]  and refused to adopt "independent experimentation" as "an equitable defense to the doctrine of equivalents,"[36]  The Court also refused to limit the doctrine of equivalents "to equivalents that are disclosed within the patent itself," reasoning that the "proper time for evaluating equivalency . . . is at the time of infringement, not at the time the patent was issued."[37]

In closing, the Court stated that it chose to "adhere to the doctrine of equivalents," which "should be applied as an objective inquiry on an element-by-element basis."[38]  The Court noted that "[p]rosecution history estoppel continues to be available as a defense to infringement."[39]  However, "if the patent holder demonstrates that an amendment required during prosecution had a purpose unrelated to patentability, a court must consider that purpose in order to decide whether an estoppel is precluded."[40]  If "the patent holder is unable to establish such a purpose, a court should presume that the purpose behind the required amendment is such that prosecution history estoppel would apply."[41] 

 

III.Answers to the En Banc Questions

A. Question 1

For the purposes of determining whether an amendment to a claim creates prosecution history estoppel, is "a substantial reason related to patentability,"[42]  limited to those amendments made to overcome prior art under § 102 and § 103, or does "patentability" mean any reason affecting the issuance of a patent?

We answer Question 1 as follows: For the purposes of determining whether an amendment gives rise to prosecution history estoppel, a "substantial reason related to patentability" is not limited to overcoming or avoiding prior art, but instead includes any reason which relates to the statutory requirements for a patent. Therefore, a narrowing amendment made for any reason related to the statutory requirements for a patent will give rise to prosecution history estoppel with respect to the amended claim element.

It is true that in Warner-Jenkinson the Supreme Court focused on claim amendments made to overcome or avoid prior art. [43]  However, there are a number of statutory requirements that must be satisfied before a valid patent can issue and that thus relate to patentability. In addition to satisfying the novelty and non-obviousness requirements of 35 U.S.C. §§ 102 and 103, 35 U.S.C.A. §§ 102, 103, the claims must be directed to patentable subject matter and the claimed invention must be useful, as set forth in 35 U.S.C. § 101. Additionally, the first paragraph of 35 U.S.C. § 112 requires that the patent specification describe, enable, and set forth the best mode of carrying out the invention, 35 U.S.C. § 112, ¶ 1, while the second paragraph of section 112 requires that the claims set forth the subject matter that the applicant regards as his invention and that the claims particularly point out and distinctly define the invention, 35 U.S.C. § 112, ¶ 2. The Patent Office will reject a patent application that fails to satisfy any one of these statutory requirements.[44]  And any one of these requirements may be a ground for invalidating an issued patent.[45]  An amendment related to any of these statutory requirements is an amendment made for "a substantial reason related to patentability."

The law has been clear that amendments made to avoid prior art give rise to prosecution history estoppel.[46]  In view of the functions of prosecution history estoppel--preserving the notice function of the claims and preventing patent holders from recapturing under the doctrine of equivalents subject matter that was surrendered before the Patent Office--we see no reason why prosecution history estoppel should not also arise from amendments made for other reasons related to patentability, as described above. Indeed, the functions of prosecution history estoppel cannot be fully satisfied if substantial reasons related to patentability are limited to a narrow subset of patentability issues. Rather, substantial reasons related to patentability include 35 U.S.C. §§ 101 and 112 issues, as well as 35 U.S.C. §§ 102 and 103 issues.

While we do not believe that the Supreme Court itself answered this question in Warner-Jenkinson, we do believe that our answer is not inconsistent with Warner-Jenkinson. Warner-Jenkinson describes prior cases as applying prosecution history estoppel "typically because what [was previously claimed] . . . was encompassed within the prior art,"[47]  but no language in Warner-Jenkinson limits prosecution history estoppel to amendments made to avoid prior art.[48]  Moreover, our approach is consistent with Warner-Jenkinson's requirement that an amendment "does not necessarily preclude infringement by equivalents of that element."[49]  Thus, if a patent holder can show from the prosecution history that a claim amendment was not motivated by patentability concerns, the amendment will not give rise to prosecution history estoppel.

 

B. Question 2

Under Warner-Jenkinson, should a "voluntary" claim amendment--one not required by the examiner or made in response to a rejection by an examiner for a stated reason--create prosecution history estoppel?

We answer Question 2 as follows: Voluntary claim amendments are treated the same as other amendments. Therefore, a voluntary amendment that narrows the scope of a claim for a reason related to the statutory requirements for a patent will give rise to prosecution history estoppel as to the amended claim element.

Both voluntary amendments and amendments required by the Patent Office signal to the public that subject matter has been surrendered. There is no reason why prosecution history estoppel should arise if the Patent Office rejects a claim because it believes the claim to be unpatentable, but not arise if the applicant amends a claim because he believes the claim to be unpatentable.

Our answer to this question is consistent with the doctrine of argument-based estoppel. Arguments made voluntarily during prosecution may give rise to prosecution history estoppel if they evidence a surrender of subject matter.[50]   There is no reason why an amendment-based surrender of subject matter should be given less force than an argument-based surrender of subject matter.

We also believe that our answer to this question is consistent with Warner-Jenkinson. Although the Supreme Court spoke of "required" amendments, the claim amendment at issue in Warner-Jenkinson, the addition of the lower pH limit of 6, was not "required" by the prior art rejection. The original claim recited an ultrafiltration process.[51]  The asserted prior art reference taught an ultrafiltration process conducted at a pH of above 9.[52]  The amended claim recited an ultrafiltration process conducted "at a pH from approximately 6.0 to 9.0."[53]  The parties did not dispute that the upper pH limit of 9.0 was added to distinguish the prior art.[54]  The Court, however, was unable to discern the reason for the addition of the lower pH limit of 6.[55]  Accordingly, the amendment at issue in Warner-Jenkinson appears to have been voluntary with respect to the lower pH limit. Nevertheless, the Court held that the amendment adding the lower pH limit could give rise to prosecution history estoppel.[56]

 

C. Question 3

If a claim amendment creates prosecution history estoppel, under Warner-Jenkinson what range of equivalents, if any, is available under the doctrine of equivalents for the claim element so amended?

We answer Question 3 as follows: When a claim amendment creates prosecution history estoppel with regard to a claim element, there is no range of equivalents available for the amended claim element. Application of the doctrine of equivalents to the claim element is completely barred (a "complete bar").

We think it is fair to say that the question of the scope of equivalents available when prosecution history estoppel applies to a claim element has not been directly addressed or answered by the Supreme Court, at least in circumstances where the claim was amended for a known patentability reason. In Warner-Jenkinson, the Court focused its attention more on the circumstances under which prosecution history estoppel arises than on the range of equivalents that might generally be available despite the existence of prosecution history estoppel.[57]  The Court did not discuss the upper pH limit of 9.0, other than to note that the upper limit, which narrowed the claim, was selected to overcome prior art.[58]  The range of equivalents, if any, that could be asserted for the upper pH limit was not discussed by the Court. The only statements in Warner Jenkinson as to the range of equivalents that is available when prosecution history estoppel applies are found in the Court's discussion of unexplained amendments.[59]  For those amendments, the Court held that "prosecution history estoppel would bar the application of the doctrine [of] equivalents as to that element."[60]

1. In cases before Warner-Jenkinson, the Supreme Court applied prosecution history estoppel to preclude a finding of infringement under the doctrine of equivalents, but the Court did not analyze the actual scope of equivalents that might be available when prosecution history estoppel applied, i.e., the extent of the subject matter surrendered by amendment. In Weber Electric Co. v. E.H. Freeman Electric Co.,[61]  the patentee had amended his claim to an electric lamp socket to overcome prior art that taught a socket and electric bulb that were unlocked and locked together simply by rotation. The amended claim recited, instead, a bulb and socket combination that unlocked and locked by manual compressi