Comcast Ip Holdings I LLC v. Sprint Communications Company , 850 F.3d 1302 ( 2017 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    COMCAST IP HOLDINGS I LLC,
    Plaintiff-Appellee
    v.
    SPRINT COMMUNICATIONS COMPANY, L.P.,
    SPRINT SPECTRUM LP, NEXTEL OPERATIONS,
    INC.,
    Defendants-Appellants
    ______________________
    2015-1992
    ______________________
    Appeal from the United States District Court for the
    District of Delaware in No. 1:12-cv-00205-RGA, Judge
    Richard G. Andrews.
    ______________________
    Decided: March 7, 2017
    ______________________
    MATTHEW B. LEHR, Davis Polk & Wardwell LLP,
    Menlo Park, CA, argued for plaintiff-appellee. Also repre-
    sented by ANTHONY I. FENWICK, GARETH DEWALT, DAVID
    LISSON.
    BRIAN CHARLES RIOPELLE, McGuire Woods LLP,
    Richmond, VA, argued for defendants-appellants. Also
    represented by DAVID EVAN FINKELSON, BRIAN DAVID
    SCHMALZBACH; RACHELLE HARLEY THOMPSON, Raleigh,
    NC.
    2   COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.
    Before O’MALLEY, REYNA, and CHEN, Circuit Judges.
    CHEN, Circuit Judge.
    Comcast IP Holdings I LLC (Comcast) sued Sprint
    Communications Company LP, Sprint Spectrum L.P., and
    Nextel Operations, Inc. (collectively, Sprint) for infringe-
    ment of, among other patents, U.S. Patent Nos. 8,170,008,
    7,012,916, and 8,204,046 (collectively, Low Patents),
    which are generally directed to the use of computer net-
    work technology to facilitate a telephone call (phone call
    or call). After a jury trial, the jury found that Sprint’s
    handling of certain phone calls infringed claims 1, 13, and
    27 of the ’008 Patent, claim 45 of the ’916 Patent, and
    claims 90 and 113 of the ’046 Patent, and awarded Com-
    cast a $7.5 million damages award. The district court
    then denied Sprint’s motion for judgment as a matter of
    law (JMOL), or in the alternative, for a new trial, and
    added prejudgment interest to the damages award.
    Sprint has appealed various rulings from the district
    court. Because we see no error in these rulings, we affirm
    the district court’s entry of judgment against Sprint.
    BACKGROUND
    A. The Claimed Inventions
    The Low Patents are in the same patent family 1 and
    are generally directed to methods of using Domain Name
    System (DNS) technology, such as the Internet, to initiate
    and route a phone call through a switched telecommuni-
    cation system.
    One example of a switched telecommunication system
    is a public switched telephone network (PSTN), which
    1   The Low Patents share the same specification so
    we cite to the ʼ008 Patent for convenience.
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.    3
    provides for a bearer channel (i.e., “interconnection”)
    between two telephones “according to a called-party
    telephone number input at the calling-party telephone.”
    ʼ008 Patent col. 2 ll. 13–17; see also id. col. 1 ll. 31–41
    (defining a switched telecommunication system as “a
    system comprising a bearer network with switches for
    setting up a bearer channel through the network”). A
    PSTN is shown in Figure 1.
    Id. fig. 1. In Figure 1
    customer premises equipment, CPE[] 10 (such as
    standard analogue telephones . . . . ) are connected
    through an access network 11 to switching points,
    SPs 12.     The SPs 12 form nodes in an inter-
    exchange network 13 made up of interconnecting
    trunks 14 and SPs that are controlled by control
    entities 15 in the SPs. The control effected by the
    control entities 15 is determined by signalling in-
    puts received from the CPEs and other SPs, and
    involves call setup, maintenance and clearance to
    provide the desired bearer channel between call-
    ing CPE and called CPE. Conceptually, the PSTN
    may be thought of as a bearer network and a con-
    trol (signalling) network, the function of the latter
    being to effect call control through the bearer
    network, namely the control of setup, mainte-
    nance and take down of bearer channels through
    the bearer network; in practice, the bearer and
    signalling networks may use the same physical
    circuits and even the same logical channels.
    4   COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.
    Id. col. 2 ll. 19–35.
    The Low Patents also explain that a “communication
    system” generally has “a broader meaning than switched
    telecommunication system” and “include[s] datagram-
    based communication systems where each data packet is
    independently routed through a bearer network without
    following a predetermined bearer channel.” Id. col. 1 ll.
    50–55. One example of a datagram-based communication
    system is the Internet. See, e.g., Appellant Br. at 40.
    Asserted claim 1 is representative of the claimed in-
    vention in the ’008 Patent:
    1. A method, comprising:
    receiving, over a switched telecommunica-
    tion system, a request;
    determining, responsive to the request, a
    call destination using domain name sys-
    tem signaling; and
    initiating a call through the switched tele-
    communication system between a calling
    party and the call destination that was de-
    termined as a result of said domain name
    system signaling.
    Id. col. 32 ll. 46–55.
    Asserted claims 45 and claim 90 below are repre-
    sentative of the claimed inventions for the ’916 Patent
    and the ’046 Patent.
    45. A method of accessing communications data
    for contacting a target entity, said method com-
    prising:
    forming, from a number string identifying
    the target entity, a domain name by a pro-
    cess including parsing at least a substan-
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.   5
    tial portion of the number string into at
    least a part of said domain name;
    supplying the domain name formed to a
    DNS-type database system and receiving
    back a resource record including an URI
    [uniform resource identifier] for locating
    communications data associated with the
    domain name; and
    using the URI received back to access said
    communications data.
    ’916 Patent col. 36 ll. 56–67.
    90. A method, comprising:
    forming, by at least one computing device,
    from a number string identifying a target
    entity, a domain name by a process includ-
    ing parsing at least a portion of the num-
    ber string into at least a part of said
    domain name; and
    supplying, by the at least one computing
    device, the domain name to a database
    and receiving back from that database a
    resource record including a uniform re-
    source identifier (URI) of the target entity.
    ’046 Patent col. 45 l. 65–col. 46 l. 6.
    B. The Accused Methods
    The six accused methods are ways in which Sprint
    connects a calling party with a called party (call flows),
    and there is no dispute as to how these accused call flows
    operate.
    Comcast accused three call flows of infringing the ’008
    Patent. See Appellant Br. at 15. These calls generally
    begin on Sprint’s wireless cellular network that uses a
    standard known as Code Division Multiple Access, or
    6   COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.
    “CDMA” (CDMA Network). The calls then travel through
    an Internet Protocol Multimedia Subsystem network
    (IMS Network). “The IMS Network includes an IMS core,
    which is a collection of servers on a packet-based network
    used to route and process signaling traffic” for the calls.
    Id. at 16 n.7.
    When a call enters the IMS core, it does so through a
    media gateway controller, or “MGC.” Id. at 18. Once the
    call enters the IMS core, “a network element named a call
    session control function (‘CSCF’) uses [DNS] signaling to
    determine an IP address used to route the call to a session
    border controller (‘SBC’).” Id. at 18–19. “The SBC is
    another server on the IMS core.” Id. at 19. From there,
    the call is routed outside of the IMS core, and then back
    into the IMS core to another MGC. Id. “The MGC is not
    specific to any particular telephone number or service
    provider.” Id. From the MGC, the call is ultimately
    routed to the called party. Id.
    Comcast accused another three call flows of infringing
    the ’916 Patent and the ’046 Patent. Id. at 15. Common
    to these call flows are their use of a process referred to as
    “ENUM” to route calls through the IMS core. “That
    method starts with a [called] telephone number, removes
    any special characters, reverses the numbers, places a dot
    between each number, and adds ‘e.164.arpa’ to the end” of
    the number.” Id. at 27.
    C. Procedural Background
    Comcast asserted claims 1, 13, and 27 of the ’008 Pa-
    tent, claim 45 of the ’916 Patent, and claims 90 and 113 of
    the ’046 Patent against Sprint in the District of Dela-
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.    7
    ware. 2 The parties disputed the claim constructions for,
    among other terms, the term “switched telecommunica-
    tion system” in the ’008 Patent and the term “parsing” in
    the ’916 Patent and the ’046 Patent. For the term
    “switched telecommunication system,” the parties disa-
    greed as to whether such a system could include elements
    of a datagram-based system. J.A. at 3. The district court
    concluded that “[a] system with elements of both switches
    and a ‘datagram-based system’ is not necessarily outside
    the scope of a ‘switched telecommunication system.’” Id.
    at 4. “A ‘communication system’ is still a broader concept
    than a ‘switched telecommunication system’ even where
    the ‘switched telecommunication system’ has elements of
    a ‘datagram-based system,’ because a ‘switched telecom-
    munication system’ at a minimum must have switches
    and function on a bearer network.” Id.
    As for the term “parsing,” the district court deter-
    mined that “parsing” was an automated process because it
    necessarily required a computer. See id. at 39. And the
    parties agreed that the term must include “analyzing a
    string according to a set of rules of a grammar.” Id. at 40.
    But they differed on whether the relevant prosecution
    histories of the ’916 Patent and the ’046 Patent demon-
    strated disavowals of claim scope so as to limit the term
    “parsing.” See id. The district court saw no clear disa-
    vowals of claim scope in the prosecution histories. Id.
    After a six-day jury trial, the jury found that all of the
    asserted claims of the Low Patents were infringed by
    their respective accused call flows and awarded Comcast
    a lump sum payment of $7.5 million in damages. Id. at
    49. Sprint then moved for JMOL, as well as for a new
    2  Other patents from the Low family were also as-
    serted against Sprint, but they are irrelevant to this
    appeal as they were not part of the trial.
    8   COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.
    trial, on several bases. See id. at 48–69. For example,
    Sprint argued that there was insufficient evidence to
    support the jury’s verdict as to the ’008 Patent because
    Comcast’s evidence, in the form of expert testimony from
    Dr. Eric Burger, only demonstrated that “any destination
    along the way in route of a call” could be a “call destina-
    tion,” and wrongly suggested that there could be “multiple
    destinations” along a call flow. Id. at 53–54. Sprint
    insisted this understanding of “call destination” was
    flawed because the claim term can only refer to “the
    absolute final point in the call flow, or the receiving
    phone,” otherwise the term would be superfluous. Id. at
    52, 54.
    The district court disagreed with Sprint. The district
    court noted that the jury was instructed to apply the
    common meaning of “call destination” in rendering its
    verdict as neither party asked for a construction of the
    claim term. Id. at 53 & n.1. The district court explained
    that the jury could have reasonably concluded—based on
    Comcast’s expert—that “there are intermediate ‘call
    destinations’” along the accused call flows. Id. at 54. It
    further explained that the jury could have “reasonably
    look[ed] at the claims and conclude[d] that the word ‘a’
    before the first use of the term call destination implied
    that there could be more than one destination . . . .” Id.
    Sprint likewise contended that there was insufficient
    evidence to prove that Sprint’s accused call flows in-
    fringed the asserted claims of the ’916 Patent and the ’046
    Patent because Comcast did not demonstrate that the
    “parsing” limitation was met. Id. at 57–58. The court
    disagreed again, citing testimony from Dr. Burger. See id.
    at 59–60.
    Moreover, Sprint took exception to the district court’s
    decision to tack on prejudgment interest to the $7.5
    million damages award. Id. at 65. Sprint maintained
    that prejudgment interest should only be calculated from
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO.   9
    the time of first infringement of each patent until judg-
    ment, rather than from the time of the relevant hypothet-
    ical negotiation—here 2006—until judgment. Id. More
    specifically, Sprint insisted that prejudgment interest
    should not be applied to the damages relevant to the
    infringement of the ’008 Patent and the ’046 Patent
    because those patents had not yet been issued in 2006
    (the time when the ’916 Patent was issued)—they were
    only issued in 2012. Id. at 65–66.
    The district court rejected Sprint’s argument, observ-
    ing that “both sides’ experts opined that the reasonable
    royalty should be a lump sum resulting from a single
    hypothetical negotiation that took place in 2006” if Sprint
    were found to infringe all three patents. Id. at 66 (citing
    trial transcript). Based on that agreement, the district
    court concluded that “[a] hypothetical negotiation in 2006
    would include each of the asserted patents, even if they
    issued later, and the resulting negotiation would include
    the fact that two of the patents issued later.” Id. (citing
    ResQNet.com, Inc. v. Lansa, Inc., 
    594 F.3d 860
    , 872 (Fed.
    Cir. 2010)). Moreover, because of the agreed-upon meth-
    odology of using a lump sum award for infringement of all
    of the patents, the district court noted the practical prob-
    lem of assessing prejudgment interest on a per patent
    basis where the lump sum verdict did not apportion the
    damages for each patent. See 
    id.
    Sprint has filed a timely appeal. We have jurisdiction
    pursuant to 
    28 U.S.C. § 1295
    (a)(1) (2012).
    STANDARDS OF REVIEW
    The law of the regional circuit controls our standard
    of review for the denial of a motion for JMOL. 3 E.g.,
    3   In moving for a new trial before the district court,
    Sprint merely rehashed its arguments for why it deserved
    10 COMCAST IP HOLDINGS I LLC v. SPRINT COMMUNICATIONS CO.
    MobileMedia Ideas LLC v. Apple Inc., 
    780 F.3d 1159
    , 1164
    (Fed. Cir. 2015). In the Third Circuit, review of such a
    denial is without deference. See, e.g., Rinehimer v. Cem-
    colift, Inc., 
    292 F.3d 375
    , 383 (3d Cir. 2002). We “review
    the record in the light most favorable to the prevailing
    party ‘unless the record is critically deficient of that
    minimum quantum of evidence from which a jury might
    reasonably afford relief.’” Potence v. Hazleton Area Sch.
    Dist., 
    357 F.3d 366
    , 370 (3d Cir. 2004) (quoting Rotondo v.
    Keene Corp., 
    956 F.2d 436
    , 438 (3d Cir. 1992)).
    The proper construction of a patent’s claims is an is-
    sue of Federal Circuit law, and we apply the framework
    set forth in Teva Pharmaceuticals USA, Inc. v. Sandoz,
    Inc., __ U.S. __, __, 
    135 S. Ct. 831
    , 840–42 (2015). E.g.,
    Power Integrations, Inc. v. Fairchild Semiconductor Int’l,
    Inc., 
    843 F.3d 1315
    , 1326 (Fed. Cir. 2016). Under that
    framework, intrinsic evidence and the ultimate construc-
    tion of claim terms are reviewed de novo, and underlying
    factual determinations concerning extrinsic evidence are
    reviewed for clear error. See 
    id.
     “Where an infringement
    verdict relies on incorrect construction of the disputed
    claim terms, this court may grant JMOL or order a new
    trial to correct the error, depending on the degree of
    difference between the incorrect construction and the
    correct construction.” Finisar Corp. v. DirecTV Grp., Inc.,
    
    523 F.3d 1323
    , 1333 (Fed. Cir. 2008). “If no reasonable
    jury could have found infringement under the proper
    claim construction, this court may reverse a district
    court’s denial of JMOL without remand.” 
    Id.
     (citing
    judgment as a matter of law. Because we assess those
    arguments in the context of its JMOL motion, we need not
    address them again in the context of its motion for a new
    trial.
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO. 11
    Harris Corp. v. Ericsson Inc., 
    417 F.3d 1241
    , 1255–57
    (Fed. Cir. 2005)).
    Determination of infringement is a question of fact,
    which, in the context of a jury trial, we review for sub-
    stantial evidence. Union Carbide Chems. & Plastics Tech.
    Corp. v. Shell Oil Co., 
    308 F.3d 1167
    , 1177 (Fed. Cir.
    2002) (citing B. Braun Med., Inc. v. Abbott Labs., 
    124 F.3d 1419
    , 1423 (Fed. Cir. 1997)).
    DISCUSSION
    A. Construction of “Switched Telecommunication Sys-
    tem” in the Asserted Claims of the ʼ008 Patent
    Sprint contends that the proper construction of
    “switched telecommunication system” must be one that
    excludes any element of a datagram-based system, so as
    to render it consistent with the “fundamental require-
    ment” of the ʼ008 Patent, which is that a phone call must
    “travel[] over a predetermined bearer channel all the way
    from the caller to the call destination.” Appellant Br. at
    32–33 (emphasis added). Sprint’s insistence is not only
    unpersuasive, but also irrelevant because the infringe-
    ment verdict would remain unaffected even under its
    narrower construction.
    We may affirm the jury’s findings on infringement if
    substantial evidence appears in the record supporting the
    jury’s verdict, and if correction of errors in claim construc-
    tion would not have changed the verdict, given the evi-
    dence presented. See Teleflex, Inc. v. Ficosa N. Am. Corp.,
    
    299 F.3d 1313
    , 1328 (Fed. Cir. 2002) (citing Weinar v.
    Rollform Inc., 
    744 F.2d 797
    , 808 (Fed. Cir. 1984)). Preju-
    dicial error here requires “sufficient evidence . . . to sup-
    port a finding of non-infringement under a correct
    instruction.” CytoLogix Corp. v. Ventana Med. Sys., Inc.,
    
    424 F.3d 1168
    , 1174 (Fed. Cir. 2005) (alteration omitted)
    (quoting Ecolab, Inc. v. Paraclipse, Inc., 
    285 F.3d 1362
    ,
    1374 (Fed. Cir. 2002)).
    12 COMCAST IP HOLDINGS I LLC v. SPRINT COMMUNICATIONS CO.
    Here, even if “switched telecommunication system”
    were construed so as to exclude any element of a data-
    gram-based system, Sprint has not demonstrated how the
    relevant accused call flows do not infringe the ’008 Patent.
    In other words, Sprint has not shown prejudice. Sprint
    does not dispute that its CDMA Network is where a call is
    initiated or set up and that the CDMA Network is a
    switched telecommunication system having no datagram-
    based elements. See Appellant Br. at 39–40.
    Moreover, adoption of Sprint’s construction would not
    permit it to argue that the ’008 Patent requires a call to
    travel “exclusively” over a switched telecommunication
    system. See id. at 16 (“None of the accused call flows
    travels exclusively over a switched network or predeter-
    mined bearer channels. Instead, each starts on Sprint’s
    CDMA network, travels through Sprint’s . . . IMS . . .
    network (a packet-based network), and eventually returns
    to the CDMA network or the CDMA air interface for
    routing to the called handset.” (footnotes omitted)). The
    claim language does not demand this. Claims 1 and 13
    only require “initiating a call through the switched tele-
    communication system,” ’008 Patent col. 32 ll. 46–55; id.
    col. 33 ll. 31–40 (emphasis added), and claim 27 only
    requires “setting up a call through the switched telecom-
    munication system,” id. col. 34 ll. 39–47 (emphasis add-
    ed). These claims do not state that after a call is either
    initiated or set up through a switched telecommunication
    system, the call must also travel exclusively on that
    system to a particular destination.
    The specification also does not support the construc-
    tion that Sprint desires. It reveals that the ’008 Patent is
    not directed to methods of transmitting an entire call
    from a calling party’s phone to the called party’s phone;
    rather, it is directed to methods, consistent with the claim
    language, for initiating or setting up a call intended for
    transmission to a called party. See id. col. 1 ll. 27–30
    (“The present invention relates to a method of accessing
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO. 13
    service resource items that are intended to be used in
    setting up bearer channels through a switched telecom-
    munications system.” (emphasis added)). And figure 15 in
    the specification expressly contemplates a call that does
    not travel exclusively on a switched telecommunication
    system. See id. fig. 15; see also id. col. 27 ll. 10–14.
    To support its theory that the ’008 Patent requires a
    call to travel exclusively on a switched telecommunication
    system, Sprint relies on the specification’s explanation
    that datagram-based elements are “logically distinct”
    from the switched telecommunication system. See Appel-
    lant Br. at 35–36 (citing ’008 Patent col. 11 l. 65–col. 12 l.
    2). The specification explains that “[t]he intention of
    requiring the computer network to be logically distinct
    from the [switched] telecommunication[] system is to
    exclude computer networks that are dedicated to the
    management or monitoring of the bearer network and
    effectively form part of the [switched] telecommunica-
    tion[] system itself.” ’008 Patent col. 11 ll. 50–55. This
    explanation, however, does not suggest that a call either
    initiated or set up on a switched telecommunication
    system cannot traverse any datagram-based elements
    once it leaves the system.
    Accordingly, we sustain the jury’s verdict of infringe-
    ment of claims 1, 13, and 27 of the ’008 Patent because
    there is substantial evidence that the relevant accused
    call flows were either initiated or set up on a switched
    telecommunication system.
    B. Sufficiency of Evidence for “Call Destination” Limi-
    tation in Asserted Claims 1 and 13 and “Identifier
    of a Second Party” Limitation in Asserted Claim 27
    of the ’008 Patent
    Sprint next complains that there was insufficient evi-
    dence for the jury to find that the “call destination” limi-
    tation of claims 1 and 13 of the ’008 Patent—which the
    jury was instructed to apply its plain and ordinary mean-
    14 COMCAST IP HOLDINGS I LLC v. SPRINT COMMUNICATIONS CO.
    ing because neither party asked for a construction—was
    met by the relevant accused call flows. See Appellant Br.
    at 41–50. According to Sprint, Comcast only presented
    evidence that a call destination was any point on a call
    flow, but a call destination must be the “final point on the
    path of a call.” Id. at 43. We disagree with Sprint as
    there is substantial evidence to support the jury’s finding
    that the relevant accused call flows met the “call destina-
    tion” limitation.
    Sprint “is essentially [proffering] a claim construction
    argument regarding the meaning of the term [‘call desti-
    nation’] . . . in the guise of a challenge to the sufficiency of
    the evidence of infringement.” ePlus, Inc. v. Lawson
    Software, Inc., 
    700 F.3d 509
    , 520 (Fed. Cir. 2012). Sprint
    invites the court to construe the meaning of a call destina-
    tion as the final point on the path of a call. But if Sprint
    “desired such a narrow definition, it could (and should)
    have sought a construction to that effect.” ePlus, 700 F.3d
    at 520; see also Hewlett-Packard Co. v. Mustek Sys., Inc.,
    
    340 F.3d 1314
    , 1321 (Fed. Cir. 2003) (“[W]here the parties
    and the district court elect to provide the jury only with
    the claim language itself, and do not provide an interpre-
    tation of the language in the light of the specification and
    the prosecution history, it is too late at the JMOL stage to
    argue for or adopt a new and more detailed interpretation
    of the claim language and test the jury verdict by that
    new and more detailed interpretation. The verdict must
    be tested by the charge actually given and by giving the
    ordinary meaning of the language of the jury instruc-
    tion.”). “In the absence of such a construction, however,
    the jury was free to rely on the plain and ordinary mean-
    ing of the term . . . .” ePlus, 700 F.3d at 520. And Sprint
    “has not met its burden of showing that it has the only
    reasonable view of the claim [limitation] . . . .” Avid Tech.,
    Inc. v. Harmonic, Inc., 
    812 F.3d 1040
    , 1048 (Fed. Cir.
    2016). As the district court correctly explained, the jury
    could have “reasonably look[ed] at the claims and con-
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO. 15
    clude[d] that the word ‘a’ before the first use of the term
    call destination implied that there could be more than one
    destination” rather than exclusively referring to the call’s
    final destination. J.A. at 54.
    In light of this, the jury reasonably relied on
    Dr. Burger’s testimony that the relevant accused call
    flows were routed to at least one call destination.
    Dr. Burger testified that the various servers inside the
    IMS core, such as the MGC and the SBC, were call desti-
    nations because the CSCF routed calls to those servers.
    
    Id. at 4439
    , 4541–42. This testimony from Dr. Burger did
    not, as Sprint suggests, invite the jury to find that any
    point along the accused call flows was a “call destination.”
    These were specific servers in the IMS core.
    Sprint’s complaints regarding the “identifier of a sec-
    ond party” limitation in claim 27 of the ’008 Patent 4 are
    similar to those that it lodges against the “call destina-
    tion” limitation in claims 1 and 13. See Appellant Br. at
    45. But for the reasons we reject that a “call destination”
    must be the final point on a path of a call, we also reject
    4   Claim 27 reads:
    A method, comprising:
    receiving a request from a first party;
    determining by a computer, responsive to
    the request, an identifier of a second party
    using domain name system signaling;
    setting up a call through the switched tel-
    ecommunication system between the first
    party and the second party that was de-
    termined as a result of said domain name
    system signaling.
    16 COMCAST IP HOLDINGS I LLC v. SPRINT COMMUNICATIONS CO.
    that an “identifier of a second party” must be a “unique
    identifier of a second party.” First, if Sprint wanted this
    restrictive construction of the term, it should have sought
    one. But it never did and now is too late. See ePlus, 700
    F.3d at 520; see also Hewlett-Packard, 
    340 F.3d at 1321
    .
    Second, the jury reasonably relied on Dr. Burger’s testi-
    mony that the term means “how you get to [a] second
    party” and that DNS signaling in the IMS core deter-
    mined an identifier of a second party, which could include
    the SBC inside the IMS core. See J.A. at 4539–41.
    Because substantial evidence demonstrates that the
    “call destination” limitation in claims 1 and 13 and the
    “identifier of a second party” limitation in claim 27 were
    met, we sustain the jury’s verdict that Sprint infringed
    these claims of the ’008 Patent.
    C. Construction of “Parsing” in Asserted Claims of the
    ’916 Patent and the ’046 Patent
    Sprint also attacks the district court’s claim construc-
    tion of the term “parsing” in the asserted claims of the
    ’916 Patent and the ’046 Patent. See Appellant Br. at 50–
    57. Specifically, Sprint faults the district court for refus-
    ing to find disclaimers in the prosecution histories and
    imposing limitations on the scope of “parsing.” Id. at 50.
    But Sprint fails to identify any prejudice associated with
    the district court’s claim construction as it never explains
    in its opening brief how its purportedly correct and nar-
    rower claim construction would have affected the in-
    fringement verdict. See CytoLogix, 
    424 F.3d at 1174
    .
    Sprint notes that page fifty of its opening brief ex-
    plained how it was prejudiced. Reply Br. at 21 n.7 (citing
    Appellant Br. at 50). We disagree. For example, Sprint
    does not explain how the relevant accused call flows do
    not practice the asserted claims under its narrower claim
    construction. Sprint has thus waived any arguments
    concerning how it was prejudiced by a broader construc-
    tion of “parsing.” See SmithKline Beecham Corp. v.
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO. 17
    Apotex Corp., 
    439 F.3d 1312
    , 1319 (Fed. Cir. 2006) (“Our
    law is well established that arguments not raised in the
    opening brief are waived.” (citation omitted)); see also
    Fresenius USA, Inc. v. Baxter Int’l, Inc., 
    582 F.3d 1288
    ,
    1304 (Fed. Cir. 2009) (“[The appellant] failed to clearly
    explain what result would occur if this court adopted [the
    appellant’s] proposed claim constructions. [The appel-
    lant] gave this court little guidance and cited no record
    support regarding why a modified claim construction
    would affect the infringement judgment, the validity
    judgment, or both. For that reason alone, we may decline
    to consider [the appellant’s] claim construction argu-
    ments.”). Consequently, we sustain the jury’s verdict that
    Sprint infringed the asserted claims of the ’916 Patent
    and the ’046 Patent.
    Even without the waiver, we agree with the district
    court’s construction of “parsing,” and its rejection of
    Sprint’s prosecution disclaimer arguments concerning this
    term. “[F]or prosecution disclaimer to attach, our prece-
    dent requires that the alleged disavowing actions or
    statements made during prosecution be both clear and
    unmistakable.” Omega Eng’g, Inc. v. Raytek Corp., 
    334 F.3d 1314
    , 1325–26 (Fed. Cir. 2003). Where the prosecu-
    tion history is ambiguous or susceptible to “multiple
    reasonable interpretations” as to any alleged disavowal,
    we decline to find prosecution disclaimer. Cordis Corp. v.
    Medtronic AVE, Inc., 
    339 F.3d 1352
    , 1359 (Fed. Cir.
    2003); Omega Eng’g, 
    334 F.3d at 1325
    .
    The district court construed “parsing” as “[a]n auto-
    mated process of analyzing a string according to a set of
    rules of a grammar.” J.A. at 40. But Sprint seeks a
    narrower construction, contending that during the reex-
    aminations of the ’916 Patent and the ’046 Patent, “Com-
    cast distinguished ‘parsing’ from ‘predetermined
    association’ and other processes such as ‘mapping,’
    ‘lookup,’ and ‘translating’” to avoid having the asserted
    claims rejected. Appellant Br. at 52. While Comcast did
    18 COMCAST IP HOLDINGS I LLC v. SPRINT COMMUNICATIONS CO.
    make statements indicating that such processes are not
    the same as “parsing,” when read in context, we do not
    read those statements as necessarily excluding any form
    of these processes from “parsing.” See, e.g., Lucent Techs.,
    Inc. v. Gateway, Inc., 
    525 F.3d 1200
    , 1211–12 (Fed. Cir.
    2008) (“[T]he arguments made by the applicants during
    prosecution clearly distinguish the claimed method from
    that of [the prior art], but do not constrain the definition
    of [the disputed claim term] as urged by the defendants.”).
    Accordingly, we see no reason to disturb the district
    court’s claim construction or the jury verdict.
    D. Prejudgment Interest
    After an infringement finding, “the court shall
    award . . . damages adequate to compensate for the in-
    fringement . . . together with interest and costs . . . .” 
    35 U.S.C. § 284
     (2012). “[P]rejudgment interest should be
    awarded under § 284 absent some justification for with-
    holding such an award.” Gen. Motors Corp. v. Devex Corp.,
    
    461 U.S. 648
    , 657 (1983); see also Energy Transp. Grp.,
    Inc. v. William Demant Holding A/S, 
    697 F.3d 1342
    , 1358
    (Fed. Cir. 2012). We review the district court’s award of
    prejudgment interest for an abuse of discretion. Gen.
    Motors Corp., 
    461 U.S. at 657
    ; see also Energy Transp.
    Grp., 697 F.3d at 1358.
    Sprint contends that the district court erroneously
    charged Comcast prejudgment interest from 2006 forward
    even though neither the ’008 Patent nor the ’046 Patent
    had issued at that point. Appellant Br. at 57–64. Specifi-
    cally, because neither of those two patents had issued yet,
    there could be no infringement as a matter of law for
    them in 2006. In Sprint’s view, accordingly, the district
    court’s award of prejudgment interest was an abuse of
    discretion because the court should have calculated pre-
    judgment interest from the time of first infringement of
    each of the three infringed patents until judgment. In
    other words, Sprint contends the district court should
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO. 19
    have apportioned the prejudgment interest calculations
    based on the royalty periods covered by the individual
    patents. See id. While in other contexts Sprint’s conten-
    tions might be well taken, they are not here.
    The parties’ experts agreed that any damage award
    should take the form of a lump sum royalty payment.
    And, the jury was told that the lump sum royalty pay-
    ment should run from the date of the earliest relevant
    hypothetical negotiation. Specifically, Comcast’s damages
    expert, Ms. Carla Mulhern, explained to the jury how it
    was to calculate damages as follows:
    Q. So when would this hypothetical negotiation
    have taken place had it actually taken place?
    A. The hypothetical negotiation is set at the time
    of first infringement. So, in this case, it’s a little
    complicated because we have multiple patents.
    So if the ’916 [P]atent is found to be infringed by
    Sprint, the hypothetical negotiation would have
    occurred at the time of first infringement of the
    ’916 [P]atent, which is in late 2006. . . .
    If Sprint is not found to have infringed the ’916
    [P]atent, but only either the ’046 or ’008 patents,
    which issued much later, then the hypothetical
    negotiation would occur in 2012 at the time of
    first infringement of those patents.
    J.A. at 4593–94. Sprint’s damages expert Dr. Debra Aron
    agreed with Ms. Mulhern’s statements on the timing of
    the hypothetical negotiation:
    Q. You agree with Ms. Mulhern that if the ’916
    [P]atent or any combination of patents that in-
    cludes the ’916 [Patent] is found to be infringed,
    then the appropriate date for the hypothetical ne-
    gotiation for all infringed patents in this case is
    late 2006; correct?
    20 COMCAST IP HOLDINGS I LLC v. SPRINT COMMUNICATIONS CO.
    A. Yes, that’s right.
    Q. And the analysis that both you and Ms. Mul-
    hern have done, you understand is directed to a
    lump sum royalty through the time of trial; cor-
    rect?
    A. That’s what it should be, yes.
    Q. And you and she agree on that point; correct?
    A. I think we agree on that point.
    Id. at 4974–75. The jury was also told that the hypothet-
    ical negotiators would have employed the “book of wis-
    dom,” looking forward in time from the date of the first
    hypothetical negotiation to account for “all information
    that would have been relevant to the parties in coming to
    and arriving at a deal.” Id. at 66; id. at 4594–95. Both
    experts agreed that this information would have included
    the issuance of any later patent relating to the same
    technology. Id. at 4593–95; id. at 5002–03.
    As the verdict form reflects, the jury found that claims
    in all three of the Low patents were infringed. Id. at 46–
    47. And as it was invited to do, the jury then awarded
    Comcast a lump sum royalty in the amount of $7.5 mil-
    lion. Id. at 47. That award necessarily was predicated on
    a hypothetical negotiation occurring in 2006. Because the
    jury found the ’916 Patent infringed and the hypothetical
    negotiation to have occurred in 2006 there was only one
    damage award for the district court to consider when
    assessing the dollar figure against which prejudgment
    interest should be measured and the date from which it
    was to run. There was, accordingly, neither a basis for
    the district court to apportion prejudgment interest nor a
    COMCAST IP HOLDINGS I LLC   v. SPRINT COMMUNICATIONS CO. 21
    need for the district court to undertake such apportion-
    ment. 5
    Prejudgment interest runs from the earliest date of
    infringement for any patent issued at the time of the
    hypothetical negotiation; here, the ’916 Patent indisputa-
    bly had been issued by 2006. We see no abuse of discre-
    tion in the district court’s assessment of prejudgment
    interest against Sprint based on the entire royalty award.
    See Bio-Rad Labs., Inc. v. Nicolet Instrument Corp., 
    807 F.2d 964
    , 969 (Fed. Cir. 1986) (“[T]he purpose of prejudg-
    ment interest . . . is ‘to ensure that the patent owner is
    placed in as good a position as he would have been had
    the infringer entered into a reasonable royalty agree-
    ment.’” (quoting Gen. Motors Corp., 
    461 U.S. at 655
    )); cf.
    Stickle v. Heublein, Inc., 
    716 F.2d 1550
    , 1561 n.8 (Fed.
    Cir. 1983) (“Since the parties treated the mechanical and
    process patents as a unitary licensing property, we need
    not consider damages for infringement of each patent
    individually. Under other circumstances it may well be
    necessary to determine damages separately for each such
    patent since a patent owner has every right to demand
    royalties for each patent he holds.”).
    CONCLUSION
    For the preceding reasons, we AFFIRM the judgment
    entered by the district court.
    5     The district court properly rejected Sprint’s sug-
    gestion that it could have determined what portion of the
    jury’s award was attributable to each patent, based on the
    damages methodology employed by Ms. Mulhern. See
    J.A. at 66. The jury’s award was less than half of what
    Ms. Mulhern proposed, thereby indicating that the jury
    did not actually follow her proposal. See Appellee Br. at
    60 (citing J.A. at 47, 4635).
    

Document Info

Docket Number: 15-1992

Citation Numbers: 850 F.3d 1302

Filed Date: 3/7/2017

Precedential Status: Precedential

Modified Date: 1/12/2023

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