Nordock, Inc. v. Systems Inc. , 803 F.3d 1344 ( 2015 )


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  •   United States Court of Appeals
    for the Federal Circuit
    ______________________
    NORDOCK, INC.,
    Plaintiff-Appellant
    v.
    SYSTEMS INC., DBA POWERAMP, DBA DLM INC.,
    DBA MCGUIRE,
    Defendant-Cross-Appellant
    ______________________
    2014-1762, -1795
    ______________________
    Appeals from the United States District Court for the
    Eastern District of Wisconsin in No. 2:11-cv-00118-RTR,
    Chief Judge Rudolph T. Randa.
    ______________________
    Decided: September 29, 2015
    ______________________
    JEFFREY SCOTT SOKOL, Sokol Law Office, Milwaukee,
    WI, argued for plaintiff-appellant.
    PHILIP P. MANN, Mann Law Group, Seattle, WA, ar-
    gued for defendant-cross-appellant. Also represented by
    TIMOTHY JOHN BILLICK, I; JOHN WHITAKER, Whitaker Law
    Group, Seattle, WA.
    ______________________
    Before O’MALLEY, REYNA, and CHEN, Circuit Judges.
    2                              NORDOCK, INC.   v. SYSTEMS INC.
    O’MALLEY, Circuit Judge.
    Nordock, Inc. (“Nordock”) filed suit against Systems,
    Inc. (“Systems”) in the United States District Court for
    the Eastern District of Wisconsin alleging infringement of
    U.S. Design Patent No. D579,754 (“the D’754 Patent”),
    which claims the ornamental design of a lip and hinge
    plate for a dock leveler. A jury found that Systems’ hy-
    draulic dock levelers infringe the D’754 Patent, and that
    the patent is not invalid. The district court entered
    judgment awarding Nordock $46,825 in damages as a
    reasonable royalty.
    Both parties filed post-trial motions to amend the
    judgment pursuant to Rule 59 of the Federal Rules of
    Civil Procedure. Specifically, Nordock filed a motion to
    amend the judgment regarding damages, or in the alter-
    native, for a new trial. Systems also sought to amend the
    judgment, arguing that there was insufficient evidence to
    support the jury’s finding of infringement with respect to
    Systems’ 6 ½ foot dock levelers. The district court denied
    both motions. Nordock, Inc. v. Sys., Inc., No. 11-C-118,
    
    2014 WL 3786277
    (E.D. Wis. July 31, 2014) (“Rule 59
    Decision”).
    Nordock appeals the district court’s decision denying
    its request for a new trial on damages. Systems cross-
    appeals from the court’s decisions denying its oral motion
    for judgment as a matter of law (“JMOL”) as to validity of
    the D’754 Patent and denying its post-trial Rule 59(e)
    motion. Because we find that the district court erred in
    its assessment of design patent damages under 35 U.S.C.
    § 289, we vacate the damages award and remand for a
    new trial on damages. With respect to Systems’ cross-
    appeal, we affirm the district court’s decisions: (1) denying
    Systems’ motion for JMOL as to the validity of the D’754
    Patent; and (2) denying Systems’ Rule 59(e) motion with
    respect to the 6 ½ foot dock levelers. Accordingly, we
    NORDOCK, INC.   v. SYSTEMS INC.                          3
    affirm in part, vacate in part, and remand for further
    proceedings.
    BACKGROUND
    Nordock and Systems are rivals in the loading dock
    device industry. Nordock Inc. v. Sys. Inc., 
    927 F. Supp. 2d 577
    , 582 (E.D. Wis. 2013). “Both companies design,
    manufacture, and sell dock levelers which are mechanical
    devices used to create a bridge between loading dock
    surfaces and the surfaces of truck load beds.” 
    Id. On December
    23, 2002, Denis Gleason, the President
    of Nordock, filed U.S. Patent Application No. 10/328,279
    (“the ’279 Application”), which ultimately issued as U.S.
    Patent No. 6,834,409 (“the ’409 Patent”). The ’409 Patent
    shows a dock leveler with a deck lift assembly that “has a
    durable combined lip lug and header plate hinge construc-
    tion.” ’409 Patent, col. 3, ll. 15-16. Although Nordock
    applied for utility patent protection for the “lug hinge
    design,” it abandoned prosecution after the application
    was rejected over the prior art. 
    Nordock, 927 F. Supp. 2d at 588
    .
    A. The D’754 Patent
    The D’754 Patent—entitled “Lip and Hinge Plate for a
    Dock Leveler”—was filed as a divisional application
    claiming priority to the ’279 Application. As noted, the
    D’754 Patent claims the ornamental design of a lip and
    hinge plate for a dock leveler, as shown and described
    therein. Figure 1, shown below, provides a general per-
    spective view of the front end of the leveler as claimed:
    4                             NORDOCK, INC.   v. SYSTEMS INC.
    The D’754 Patent states that Figure 1 “is a perspective
    view showing the lip and hinge plate for a dock leveler
    with the lip extended, and the hinge plate secured to a
    deck frame shown in broken lines.”
    B. Systems’ Accused Devices
    Systems has manufactured and sold dock levelers
    since the 1960s. 
    Nordock, 927 F. Supp. 2d at 594
    . For
    approximately 40 years, Systems made its levelers with a
    “piano style” hinge. 
    Id. Systems’ President—Edward
    McGuire—testified that Systems moved to using a header
    plate and lug style hinge design “for cost reasons,” and
    began selling the accused levelers in October 2005. 
    Id. In its
    complaint, Nordock accused three different sizes
    of Systems’ mechanically operated dock levelers (“LMP”
    and “LMD”), and three different sizes of hydraulically
    operated dock levelers (“LHP” and “LHD”) of infringing
    the D’754 Patent. The sizes are based on the width of the
    levelers, which are available in widths of 6 feet, 6 ½ feet,
    NORDOCK, INC.   v. SYSTEMS INC.                            5
    and 7 feet. According to Systems’ expert—Richard F.
    Bero—Systems’ average sale price for an LHP/LHD
    leveler is $2,516, and its operating profit per unit is $433.
    Joint Appendix (“J.A.”) 6552. Its average sale price for an
    LMP/LMD leveler is $1,840, with an operating profit per
    unit of $215. 
    Id. C. Procedural
    History
    On January 28, 2011, Nordock filed suit against Sys-
    tems alleging that it infringes the D’754 Patent by mak-
    ing, offering for sale, and selling hydraulic and
    mechanical dock levelers incorporating the claimed lip lug
    and hinge plate design. Nordock further alleged that the
    infringement is willful.
    Systems filed an Answer and Counterclaim for de-
    claratory judgment of non-infringement and invalidity. In
    its counterclaim, Systems alleged that the D’754 Patent is
    not infringed and is invalid for failure to comply with the
    standards of patentability and enforceability set forth in
    35 U.S.C. §§ 102, 103, and 112. Systems also asserted a
    number of affirmative defenses, including laches, estop-
    pel, and unclean hands.
    1. Cross-Motions for Summary Judgment
    The parties filed cross-motions for summary judgment
    in September 2012. Specifically, Nordock moved for
    summary judgment as to validity and enforceability of the
    D’754 Patent. In that motion, Nordock argued that the
    design has sufficient ornamentation, the D’754 Patent is
    not barred by the claims of related utility patent applica-
    tions, the design is valid under 35 U.S.C. §§ 102, 103, and
    112, and enforcement is not barred by reason of laches,
    estoppel, or unclean hands. 
    Nordock, 927 F. Supp. 2d at 589
    .
    For its part, Systems moved for summary judgment of
    invalidity and noninfringement, arguing that: (1) the
    D’754 Patent is invalid because it is primarily functional
    6                               NORDOCK, INC.   v. SYSTEMS INC.
    and contains no protectable ornamental features; (2) to
    the extent there are any features that are not purely
    functional, those features are obvious in view of the prior
    art; and (3) a comparison between the patented design
    and Systems’ products reveals that Systems does not
    infringe. Systems requested that the district court hold a
    hearing on the motion and construe the scope of the D’754
    Patent claim.
    The district court conducted a claim construction
    hearing on January 30, 2013. 
    Id. at 587.
    Shortly thereaf-
    ter, the court issued a written decision addressing several
    motions, including the parties’ cross-motions for summary
    judgment. In relevant part, the court construed the single
    claim of the D’754 Patent as “[t]he ornamental design of a
    lip and hinge plate for a dock leveler, as shown and de-
    scribed,” including the seven figures (drawings) of the
    patent. 
    Id. at 588.
    The court explained that “the broken
    lines in the figures do not form any part of the claim,” and
    that:
    [t]he ornamental design of the lip and hinge plate
    as shown and described includes nine pairs of
    tear-drop shaped lugs, attached to the header
    plate and lip to form the hinge, and the pin that is
    threaded between the lug pairs. The shape of the
    lug attached to the header plate is not identical to
    that attached to the lip, and is elongated as shown
    in Figures 6 and 7 to close the gap between it and
    the deck.
    
    Id. Next, the
    court noted that the design incorporates
    four primarily utilitarian elements: the lugs, the pin, the
    header plate, and the lip. 
    Id. at 589.
    The court found
    that the “relative positions of the header plate and the lip
    which are at the front portion of the dock leveler are
    dictated by the function of a dock leveler; that is, to create
    a bridge between the truck and the loading dock.” 
    Id. NORDOCK, INC.
      v. SYSTEMS INC.                           7
    And the “lugs and the pin form a hinge which is essential
    to the function of the dock leveler.” 
    Id. The court
    found,
    however, that there are ornamental aspects of the design:
    “[w]hile the header plate is used to tie the supporting
    beams and create a box type of structure, there are alter-
    natives. There are dock levelers that do not have header
    plates, and there are dock levelers with partially open
    fronts, and other styles.” 
    Id. (internal citation
    omitted).
    And, there are hinges that have no lugs. The court fur-
    ther found that the “shape, spacing, pairing and the
    difference in shapes between the lugs attached to the
    header plate and the lip are also ornamental features of
    the ’754 patent.” 
    Id. Turning to
    the parties’ motions for summary judg-
    ment, the court granted Nordock’s motion with respect to
    anticipation, obviousness, prosecution estoppel, laches,
    equitable estoppel, and unclean hands. 
    Id. at 611.
    The
    court found that summary judgment was not appropriate
    with respect to functionality, however. 
    Id. at 605.
    In
    reaching this conclusion, the court noted that:
    (1) “Nordock’s advertising touts the functional qualities of
    its lip, lug and header plate design;” (2) “there is a great
    variation in dock leveler design;” (3) there is a “genuine
    dispute of material fact regarding whether many ele-
    ments in the design are non-functional;” and
    (4) “Nordock’s design is not the only way to do things.” 
    Id. 2. Trial
        The district court conducted a jury trial from March
    18 through March 26, 2013, on the issues of infringement,
    validity, and damages. At trial, Nordock’s damages
    expert—Dr. Stan V. Smith—testified that Systems’ net
    profit for the sale of 1,514 hydraulic levelers (LHP/LHD)
    was $912,201. J.A. 6009; J.A. 6373. Systems’ damages
    expert—Richard F. Bero—testified that “royalty was the
    proper form of damages, that $15 per allegedly infringing
    dock leveler was the appropriate amount of royalty, and
    8                             NORDOCK, INC.   v. SYSTEMS INC.
    that, based on the 6,000 accused units, total damages
    were about $91,650.”      Rule 59 Decision, 
    2014 WL 3786277
    , at *4. In the alternative, Bero testified that
    Systems’ profit on the accused lip and hinge plate was
    “less than $15 per unit, so lost profits would have been
    less than $91,650.” 
    Id. At the
    close of Nordock’s case in chief and again at the
    conclusion of all of the trial testimony, Systems moved for
    JMOL that the D’754 Patent is invalid because it is
    functional, and that no infringement could be found with
    respect to Systems’ 6 ½ foot hydraulic dock leveler be-
    cause there was no evidence of that leveler presented at
    trial. The district court denied those motions on the
    record and allowed the case to go to the jury.
    The jury returned a mixed verdict, finding that Sys-
    tems’ LHP and LHD levelers infringed the D’754 Patent,
    but that the LMP and LMD levelers were not infringing.
    The jury awarded Nordock $46,825 as a reasonable royal-
    ty, and indicated on the verdict form that Systems’ profits
    were $0. The jury also found that Systems failed to prove
    that the D’754 Patent is invalid. As discussed in more
    detail below, as soon as the verdict was returned, Systems
    indicated a desire to renew its earlier motions.
    3. Written Post-Trial Motions
    After trial, both parties filed motions to amend the
    judgment pursuant to Rule 59(e). Systems argued that,
    because there was no evidence presented at trial regard-
    ing its 6 ½ foot dock leveler, the jury’s finding of in-
    fringement as to that particular leveler was unsupported
    by any evidence and must be discounted. Rule 59 Deci-
    sion, 
    2014 WL 3786277
    , at *2. Systems did not file a
    written motion for JMOL. Nordock filed a motion to
    amend the judgment regarding damages, or in the alter-
    native, for a new trial on damages. Specifically, Nordock
    argued that, pursuant to 35 U.S.C. § 289, it was entitled
    NORDOCK, INC.   v. SYSTEMS INC.                           9
    to recover Systems’ profits for its sales of the LHP and
    LHD levelers found to infringe.
    On July 31, 2014, the district court issued an order
    that: (1) denied Systems’ Rule 59(e) motion; and
    (2) granted Nordock’s Rule 59(e) motion with respect to
    pre-judgment interest and its entitlement to post-
    judgment interest under 28 U.S.C. § 1961, but denied it in
    all other respects. With respect to Systems’ motion, the
    court found that “the trial testimony and exhibits support
    the jury’s finding that Systems’ 6-, 6 ½-, and 7-foot wide
    LHP/LHD levelers infringed Nordock’s ’754 Patent.” 
    Id. at *2.
         Next, the court denied Nordock’s motion as to § 289
    damages “because the jury reasonably based its verdict on
    the evidence presented.” 
    Id. at *4.
    The jury was instruct-
    ed that it “could award Nordock compensatory damages in
    the form of its own lost profits or a reasonable royalty, or
    it could recover Systems’ profits as a measure of potential
    recovery with respect [to] the sale of each unit of an
    infringing product.” 
    Id. The court
    explained that “the
    jury heard testimony regarding lost profits, [but] it chose
    to award a reasonable royalty.” 
    Id. The court
    concluded,
    therefore, that the jury’s verdict “was consistent with the
    instructions, and a reasonable basis exists in the testimo-
    ny and evidence presented at trial to support the jury
    verdict.” 
    Id. 4. Final
    Judgment
    On July 31, 2014, the district court entered an
    amended final judgment in favor of Nordock and against
    Systems in the amount of $46,825 for Systems’ non-willful
    infringement of Nordock’s D’754 Patent with regard to
    Systems’ LHP and LHD Series dock levelers. The amend-
    ed judgment awarded Nordock an additional $10,170.09
    in prejudgment interest.
    10                            NORDOCK, INC.   v. SYSTEMS INC.
    Nordock filed its notice of appeal and Systems filed its
    notice of cross-appeal. We have jurisdiction under 28
    U.S.C. § 1295(a)(1).
    DISCUSSION
    I. NORDOCK’S APPEAL
    On appeal, Nordock argues that the district court
    erred when it denied Nordock’s motion for a new trial on
    § 289 damages. We apply regional circuit law in review-
    ing the denial of a motion for a new trial. Silicon
    Graphics, Inc. v. ATI Techs., Inc., 
    607 F.3d 784
    , 798 (Fed.
    Cir. 2010). In the Seventh Circuit, a denial of a request
    for a new trial is reviewed for an abuse of discretion. 
    Id. (citing ABM
    Marking, Inc. v. Zanasi Fratelli, S.R.L., 
    353 F.3d 541
    , 543 (7th Cir. 2003)). The Seventh Circuit has
    indicated that a “new trial is appropriate if the jury’s
    verdict is against the manifest weight of the evidence or if
    the trial was in some way unfair to the moving party.”
    Glickenhaus & Co. v. Household Int’l, Inc., 
    787 F.3d 408
    ,
    414 (7th Cir. 2015) (internal citation and quotation marks
    omitted).
    According to Nordock, a new trial is necessary “to de-
    termine § 289 damages as the District Court’s decision’s
    adopting a finding that Systems’ profits are $0 or do not
    need to be determined is without factual or legal basis
    and is against the substantial weight of the credible
    evidence.” Appellant Br. 21. Systems responds that the
    jury’s award of $46,825 is supported by substantial evi-
    dence and should not be disturbed. As discussed below,
    we agree with Nordock that a new trial is necessary to
    address damages under 35 U.S.C. § 289.
    When a patent is infringed, the patentee is entitled to
    “damages adequate to compensate for infringement, but
    in no event less than a reasonable royalty for the use
    made of the invention by the infringer.” 35 U.S.C. § 284.
    There are two alternative categories of compensatory
    NORDOCK, INC.   v. SYSTEMS INC.                            11
    damages available under § 284: “the patentee’s lost profits
    and the reasonable royalty he would have received
    through arms-length bargaining.” Lucent Techs., Inc. v.
    Gateway, Inc., 
    580 F.3d 1301
    , 1324 (Fed. Cir. 2009).
    In the case of design patent infringement, a patentee
    can recover damages under § 284 or under 35 U.S.C.
    § 289, which is entitled “[a]dditional remedy for infringe-
    ment of design patent.” See Catalina Lighting, Inc. v.
    Lamps Plus, Inc., 
    295 F.3d 1277
    , 1290 (Fed. Cir. 2002).
    Section 289 provides as follows:
    Whoever during the term of a patent for a design,
    without license of the owner, (1) applies the pa-
    tented design, or any colorable imitation thereof,
    to any article of manufacture for the purpose of
    sale, or (2) sells or exposes for sale any article of
    manufacture to which such design or colorable im-
    itation has been applied shall be liable to the
    owner to the extent of his total profit, but not less
    than $250, recoverable in any United States dis-
    trict court having jurisdiction of the parties.
    Nothing in this section shall prevent, lessen, or
    impeach any other remedy which an owner of an
    infringed patent has under the provisions of this
    title, but he shall not twice recover the profit
    made from the infringement.
    35 U.S.C. § 289. Therefore, the plain language of the
    statute permits design patentees to claim either $250 or
    the infringer’s “total profit” on sales of “any article of
    manufacture” to which the patented design was applied.
    We have recognized that where, as here, “only a de-
    sign patent is at issue, a patentee may not recover both
    infringer profits and additional damages under § 284.”
    Catalina 
    Lighting, 295 F.3d at 1291
    ; see also Robert
    Bosch, LLC v. Pylon Mfg. Corp., 
    719 F.3d 1305
    , 1310 n.1
    (Fed. Cir. 2013) (en banc) (“An infringer’s profits are, of
    12                              NORDOCK, INC.   v. SYSTEMS INC.
    course, no longer an available remedy for the infringe-
    ment of a utility patent. See 35 U.S.C. § 284. Such prof-
    its, however, remain available in cases of design patent
    infringement. See 35 U.S.C. § 289.”); Signode Corp. v.
    Weld-Loc Sys., Inc., 
    700 F.2d 1108
    , 1113 n.6 (7th Cir.
    1983) (“An infringer of a design patent is liable to the
    patent owner to the extent of his total profit or $250,
    whichever is greater, under 35 U.S.C. § 289.”). According-
    ly, a design patentee can recover either (1) total profits
    from the infringer’s sales under § 289, or (2) damages in
    the form of the patentee’s lost profits or a reasonable
    royalty under § 284, or (3) $250 in statutory damages
    under § 289, whichever is greater. See Catalina 
    Lighting, 295 F.3d at 1291
    .
    At trial, the district court instructed the jury, in part,
    that:
    In this case, Nordock seeks Systems’ profits from
    sales of products alleged to infringe the ’754 De-
    sign Patent. If you find infringement, and do not
    find the ’754 Design Patent is invalid, you are to
    award Nordock Systems’ total profit attributable
    to the infringement. Systems’ “total profit” means
    the entire profit on the sale of the article to which
    the patented design is applied, or with which it is
    used and not just the portion of profit attributable
    to the design or ornamental aspects of the patent.
    Jury Instructions at 41, Nordock, Inc. v. Sys., Inc., No.
    2:11-cv-118 (E.D. Wis. Mar. 25, 2013), ECF No. 166 (“Jury
    Instructions”).
    After the jury awarded Nordock $46,825 as a reason-
    able royalty and found that Systems’ profits were $0,
    Nordock asked the court to amend the judgment regard-
    ing damages or order a new trial. In its motion, Nordock
    argued that Systems’ own expert—Richard Bero—
    calculated a net operating profit of at least $433 per unit
    for the hydraulic levelers. The district court rejected
    NORDOCK, INC.   v. SYSTEMS INC.                          13
    Nordock’s arguments on grounds that the jury received
    extensive damages instructions and chose to award
    Nordock compensatory damages in the form of a reasona-
    ble royalty. Rule 59 Decision, 
    2014 WL 3786277
    , at *4.
    On appeal, Nordock argues that: (1) the district court
    relied on Systems’ legally deficient “cost savings” method-
    ology to determine that Systems’ profits were less than
    $15 per dock leveler; (2) the record is devoid of any evi-
    dence that Systems’ profits on its sales of the infringing
    levelers was $0; and (3) the district court erred in its
    interpretation of the jury instructions. We agree with
    Nordock on each point.
    A. “Cost Savings Methodology”
    Nordock argues that the district court’s decision deny-
    ing a new trial on damages was erroneous because it
    relied upon Bero’s so-called “cost savings methodology.”
    At trial, Bero testified that, “because Nordock had not
    established that it incurred lost profits, they were not
    applicable damages.”      Rule 59 Decision, 
    2014 WL 3786277
    , at *4. Bero opined that royalty damages were
    the proper form of damages, and that $15 per allegedly
    infringing dock leveler was appropriate. 
    Id. In the
    alternative, Bero testified that, “as an alterna-
    tive form of damages, the profits associated with the lip
    and hinge plate—the ornamental design of the lip and
    hinge plate is approximately $15 or less per dock leveler.”
    Tr. of Jury Trial–Test. of Richard Bero held on Mar. 21-
    22, 2013 at 15:19-23, Nordock, Inc. v. Sys., Inc., No. 2:11-
    cv-118 (E.D. Wis. Mar. 25, 2013), ECF No. 178. Bero
    further explained that:
    The alternative is the profits attributable to—that
    Systems earned on its lip and hinge plate orna-
    mental design. And the cost savings that Systems
    received as a result of using that design are some-
    thing again less than $15 per unit. So on that lip
    14                             NORDOCK, INC.   v. SYSTEMS INC.
    and hinge plate design the profitability attributa-
    ble that Systems earned—this is defendant’s prof-
    its—was something less than $15 per unit. It’s
    the same number as the royalty damages. It’s ac-
    tually less than that.
    Now again, I understand Nordock’s position is
    that it should get the entire dock leveler, and to
    the extent that’s the case the number would be,
    you know, higher obviously.
    
    Id. at 69:13-23
    (emphasis added). Based on Bero’s testi-
    mony, the district court found that the jury was free to
    select a reasonable royalty as the appropriate form of
    damages. Rule 59 Decision, 
    2014 WL 3786277
    , at *4
    (stating that, “according to Bero, Systems’ profit on the
    accused products was less than $15 per unit”).
    We conclude that the district court erred in relying on
    Bero’s “cost savings” methodology, rather than on the
    gross profits methodology required by law and described
    in the jury instructions. There are several problems with
    this so-called “cost savings” approach. First, it is incon-
    sistent with the fact that § 289 provides for recovery of
    the infringer’s total profits. Indeed, this court has inter-
    preted § 289 to require “the disgorgement of the infring-
    ers’ profits to the patent holder, such that the infringers
    retain no profit from their wrong.” Nike Inc. v. Wal-Mart
    Stores, Inc., 
    138 F.3d 1437
    , 1448 (Fed. Cir. 1998). Profits
    are based on gross revenue after deducting certain allow-
    able expenses. 
    Id. at 1447
    (noting that the district court
    subtracted certain expenses from revenues to arrive at a
    profit figure). Consistent with this precedent, the district
    court instructed the jury that:
    Nordock is entitled to all profit earned by Systems
    that is attributable to the infringement. Profit is
    determined by deducting certain expenses from
    gross revenue. Gross revenue is all of Systems’
    receipts from using the design in the sale of the
    NORDOCK, INC.   v. SYSTEMS INC.                          15
    infringing products. Nordock has the burden of
    proving Systems’ gross revenue by a preponder-
    ance of the evidence.
    Jury Instructions at 41. Rather than using gross revenue
    as a starting point, Bero used his “cost savings” methodol-
    ogy, which was limited to the “lip and hinge plate” portion
    of the dock levelers. In doing so, Bero ignored the fact
    that total profits are based on the article of manufacture
    to which the D’754 Patent is applied—not just a portion of
    that article of manufacture.
    Systems maintains that Nordock is not entitled to re-
    cover profits on the entire dock leveler, but rather only
    those profits attributable to the “lip and hinge plate”
    shown in the D’754 Patent. To the contrary, however, we
    recently reiterated that apportioning profits in the context
    of design patent infringement is not appropriate, and that
    “Section 289 explicitly authorizes the award of total profit
    from the article of manufacture bearing the patented
    design.” Apple Inc. v. Samsung Elecs. Co., 
    786 F.3d 983
    ,
    1001-02 (Fed. Cir. 2015) (rejecting Samsung’s attempt to
    limit the profits awarded to the “portion of the product as
    sold that incorporates or embodies the subject matter of
    the patent”); see also 
    Nike, 138 F.3d at 1441-42
    (discuss-
    ing the legislative history of § 289 and Congress’s decision
    to remove “the need to apportion the infringer’s profits
    between the patented design and the article bearing the
    design”). 1
    1    Decisions predating this court’s formation similar-
    ly concluded that § 289 authorizes the award of the in-
    fringer’s total profits. See e.g., Schnadig Corp. v. Gaines
    Mfg. Co., 
    620 F.2d 1166
    , 1171 (6th Cir. 1980) (Section 289
    “provides a single measure of relief applicable to all cases
    of design patent infringement,” “assures that the profit to
    the wrongdoer is fully extracted,” and “place[s] the pa-
    16                             NORDOCK, INC.   v. SYSTEMS INC.
    The D’754 Patent is entitled “Lip and Hinge Plate for
    a Dock Leveler,” and makes clear that the claimed design
    is applied to and used with a dock leveler. And, as
    Nordock points out, the evidence and testimony at trial
    demonstrated that the levelers are welded together.
    Importantly, there was no evidence that Systems sold a
    “lip and hinge plate” separate from the leveler as a com-
    plete unit. Appellant Br. 30. We therefore reject Sys-
    tems’ attempts to apportion damages to the lip and hinge
    plate where it is clear that the article of manufacture at
    issue is a dock leveler. Systems’ “article of manufacture”
    arguments also fail in light of the district court’s § 289
    jury instruction, which correctly stated that “Systems’
    ‘total profit’ means the entire profit on the sale of the
    article to which the patented design is applied, or with
    which it is used and not just the portion of profit attribut-
    able to the design or ornamental aspects of the patent.”
    Jury Instructions at 41.
    Bero used an improper methodology and his testimo-
    ny was premised on an incorrect understanding of the
    relevant article of manufacture. This testimony confused
    and misled both the district court and the jury into believ-
    tentee in the shoes of the infringer.”). For example, in
    Bergstrom v. Sears, Roebuck & Co., 
    496 F. Supp. 476
    , 495
    (D. Minn. 1980), the court rejected the defendant’s argu-
    ment that a design patentee can only recover profits
    under § 289 “which are attributable to the design or
    ornamental aspects of the patent, rather than the entire
    profits on the sale of the patented article.” 
    Id. The court
    concluded that the use of the phrase “total profit” in the
    statute “undermines defendants’ arguments, as it is
    unlikely that Congress would have used such all encom-
    passing language if it intended that a design patentee
    could only recover profits attributable solely to the design
    or ornamental qualities of the patented article.” 
    Id. NORDOCK, INC.
      v. SYSTEMS INC.                          17
    ing that Nordock was only entitled to recover Systems’
    profits attributable to a small portion of the dock levelers
    at issue. Because no reasonable jury could have believed
    Bero’s testimony that profits were less than $15 per unit,
    and because the district court erred in relying on Bero’s
    “cost savings” methodology in denying Nordock’s motion
    for a new trial on § 289 damages, we find it necessary to
    reverse and remand this case to the district court for a
    new trial on damages. On remand, Nordock is entitled to
    a proper determination of Systems’ profits based on the
    appropriate gross revenue methodology, not the so-called
    “cost savings” approach.
    B. Evidence of Systems’ Total Profits
    Nordock also argues that there is no credible evidence
    that Systems’ total profits for its sales of the infringing
    levelers were $0. We agree.
    As noted, the jury found infringement with respect to
    1,457 of Systems’ hydraulic dock levelers. On the verdict
    form, the jury awarded Nordock a reasonable royalty of
    $46,825, and indicated that Systems’ profits were $0.
    According to Nordock, however, the manifest weight of
    the evidence shows that Systems’ profits were over
    $600,000 for its infringing LHP/LHD levelers.
    First, Nordock points to Dr. Smith’s testimony and
    expert report which indicated that Systems had net
    pretax profits of $912,201 on its sales of 1,514 LHP/LHD
    levelers. Appellant Br. 36. In his expert report, Bero
    found that Systems’ operating profit per unit for its
    hydraulic levelers was $433. J.A. 6552. And, at trial,
    Bero’s damages slide show indicated that Systems sold
    1,457 accused hydraulic dock levelers. J.A. 6684. Taken
    together, therefore, Bero’s report and testimony reveal
    that Systems’ total profits on the infringing hydraulic
    levelers were at least $630,881. Based on this evidence of
    record, Nordock argues that Systems’ total profit for the
    LHP/LHD levelers is either $630,881, using Bero’s infor-
    18                             NORDOCK, INC.   v. SYSTEMS INC.
    mation, or $912,201, using Dr. Smith’s information.
    Under either formulation, the evidence showed that
    Systems’ profits were over $630,000—a far cry from $0.
    Next, Nordock argues that, even if the jury disregard-
    ed the experts’ testimony with respect to gross revenue
    and relied on Bero’s “cost savings” methodology, the jury
    should have found that Systems had some profits on its
    infringing LHP/LHD levelers—not $0. Appellant Br. 38.
    Indeed, Bero testified that Systems’ use of the lug hinge
    saved roughly $5 per unit on the manufacture of the
    hydraulic levelers. J.A. 6707. Systems responds that the
    jury was free to discount Dr. Smith’s opinion and adopt
    Bero’s opinion that Systems’ profits associated with “the
    ornamental design of the lip and hinge plate is approxi-
    mately $15 or less per dock leveler.” Appellee Response
    Br. 25.
    While Systems is certainly correct that the jury is en-
    titled to believe one expert over the other, as previously
    discussed, Bero’s attempt to limit profits to only the “lip
    and hinge plate” is inconsistent with § 289. Nordock is
    entitled to a determination of Systems’ total profits for the
    sale of the levelers found to infringe. Because there is no
    credible evidence that Systems’ profits on its sales of the
    1,457 infringing levelers were $0, we conclude that the
    jury’s verdict was “against the manifest weight of the
    evidence” such that a new trial is warranted. Glicken-
    
    haus, 787 F.3d at 414
    .
    C. Jury Instructions
    Finally, Nordock argues that the district court misin-
    terpreted the “Patent Damages Burden of Proof” jury
    instruction “to mean that if there was a determination of
    damages under § 284, then there need be no determina-
    tion of damages under § 289.” Appellant Br. 46. The
    district court correctly instructed the jury as follows:
    NORDOCK, INC.   v. SYSTEMS INC.                           19
    For design patents, Nordock can prove either ac-
    tual damages, known as compensatory damages,
    or it may prove Systems’ profits as its measure of
    potential recovery with respect to the sale of each
    unit of an infringing product. As compensatory
    damages, Nordock may prove either its own lost
    profits, or a reasonable royalty for the design pa-
    tent. Nordock is not entitled to recover both com-
    pensatory damages and Systems’ profits on the
    same sale.
    Jury Instructions at 39. As previously discussed, the
    court also instructed the jury that “[i]f you find infringe-
    ment, and do not find the ’754 Design Patent is invalid,
    you are to award Nordock Systems’ total profit attributa-
    ble to the infringement.” 
    Id. at 41.
         Based on these instructions, Nordock contends that it
    “is entitled to Systems’ total profits for the infringing LHP
    and LHD levelers under § 289 because these profits are
    greater than the amount found under § 284 and are in
    excess of the minimum fixed by § 289.” Appellant Br. 47.
    Systems responds that Nordock waived any objections it
    might have had to the court’s instructions by failing to
    object to them when given. Systems further argues that,
    under the district court’s instructions, “the jury had the
    option of awarding either a reasonable royalty or Systems’
    profits.” Appellee Response Br. 46.
    Counsel for Nordock conceded at oral argument that
    he did not object to either the burden of proof instruction
    or the § 289 instruction because they are accurate state-
    ments of the law. Instead, counsel maintains on appeal
    that the district court misinterpreted the jury instructions
    to read out § 289. Oral Argument at 1:50-2:17, available
    at http://oralarguments.cafc.uscourts.gov/default.aspx?fl=
    2014-1762.mp3 (“We didn’t object to the 289 jury instruc-
    tion because it specifically states that Systems’ profits
    w[ere] to be determined by gross revenues. We have no
    20                             NORDOCK, INC.   v. SYSTEMS INC.
    problem with that at all. With respect to the jury instruc-
    tion—the burden of proof jury instruction—I believe it
    reads correctly. The judge is misinterpreting it to basical-
    ly read out § 289.”).
    The record reveals that both the district court and the
    jury were confused with respect to the interplay between
    § 284 and § 289. In its decision denying Nordock’s motion
    for a new trial on damages, the district court explained
    that the jury was instructed that it could award Nordock
    compensatory damages “or it could recover Systems’
    profits as a measure of potential recovery with respect [to]
    the sale of each unit of an infringing product.” Rule 59
    Decision, 
    2014 WL 3786277
    , at *4 (emphasis added). The
    court then recognized Dr. Smith’s testimony that Systems’
    profits on the sale of the infringing products were
    $845,954, and Bero’s contrary calculation that Systems’
    profits would have been less than $91,650. 
    Id. Though the
    court acknowledged that there was evidence of Sys-
    tems’ profits (as distinct from the evidence of Nordock’s
    lost profits), it explained that, “the jury heard testimony
    regarding lost profits, [but] it chose to award a reasonable
    royalty. The jury was free to discredit Smith’s testimony
    regarding Nordock’s lost profits or find that Bero’s testi-
    mony was more convincing and persuasive.” 
    Id. The district
    court blended its discussion of Nordock’s
    compensatory damages with the evidence of Systems’
    profits. In doing so, the court overlooked a critical point:
    the fact that Nordock could recover only one type of
    damage on each sale—either (1) Nordock’s lost profits or a
    reasonable royalty or (2) Systems’ total profits—did not
    absolve the jury of its obligation to determine the amount
    of Systems’ total profits for purposes of determining
    damages under § 289. To the extent the district court
    believed that the jury could simply choose between award-
    ing damages under § 284 or § 289, it is incorrect. As the
    court’s jury instructions correctly stated, if the jury finds
    infringement, and does not find the D’754 Patent invalid,
    NORDOCK, INC.   v. SYSTEMS INC.                          21
    it is “to award Nordock Systems’ total profit attributable
    to the infringement.” Jury Instructions at 41. Only
    where § 289 damages are not sought, or are less than
    would be recoverable under § 284, is an award of § 284
    damages appropriate. On remand, the court will have an
    opportunity to revisit and restructure its jury instructions
    on damages consistent with this opinion so as to provide
    the jury with a clear and appropriate understanding of its
    obligation to determine Systems’ profits pursuant to
    § 289.
    II. SYSTEMS’ CROSS-APPEAL
    Systems cross-appeals from the district court’s deci-
    sions denying its motion for JMOL that the D’754 Patent
    is invalid as purely functional. Systems also argues that
    the district court erred in denying its motion for JMOL of
    non-infringement with respect to the 6 ½ foot dock level-
    er. We address these issues in turn.
    A. Validity
    As a threshold matter, Nordock argues that Systems
    did not preserve the issue of validity for appeal because it
    did not raise it in a Rule 50 or Rule 59 motion. According
    to Nordock, because Systems failed to file a motion con-
    testing the sufficiency of the evidence with respect to the
    validity of the D’754 Patent, this court should reject
    Systems’ cross-appeal challenging validity in its entirety.
    Systems responds that it moved for JMOL that the
    D’754 Patent is invalid twice before the case went to the
    jury and again after the verdict was reached and read in
    open court. As explained below, because we find Systems’
    Rule 50(b) motion inadequate, we conclude that Systems
    has not preserved its validity arguments for appeal.
    Rule 50 of the Federal Rules of Civil Procedure “sets
    forth the procedural requirements for challenging the
    sufficiency of the evidence in a civil jury trial and estab-
    lishes two stages for such challenges—prior to submission
    22                            NORDOCK, INC.   v. SYSTEMS INC.
    of the case to the jury, and after the verdict and entry of
    judgment.” Unitherm Food Sys., Inc. v. Swift-Eckrich,
    Inc., 
    546 U.S. 394
    , 399 (2006). Rule 50(a) allows a party
    to challenge the sufficiency of the evidence before the case
    is submitted to the jury. Under that rule, the district
    court can enter judgment against a party who has been
    fully heard on an issue during a jury trial if “a reasonable
    jury would not have a legally sufficient evidentiary basis
    to find for the party on that issue.” Fed. R. Civ. P. 50(a).
    After the verdict and entry of judgment, the losing
    party may renew its challenge to the sufficiency of the
    evidence under Rule 50(b). “A party’s failure to comply
    with Rule 50(b) forecloses any challenge to the sufficiency
    of the evidence on appeal.” Consumer Prods. Research &
    Design, Inc. v. Jensen, 
    572 F.3d 436
    , 437 (7th Cir. 2009).
    “A     postverdict   motion     is   necessary     because
    ‘[d]etermination of whether a new trial should be granted
    or a judgment entered under Rule 50(b) calls for the
    judgment in the first instance of the judge who saw and
    heard the witnesses and has the feel of the case which no
    appellate printed transcript can impart.” 
    Unitherm, 546 U.S. at 401
    (citation omitted). Absent a Rule 50(b) mo-
    tion, “an appellate court is ‘powerless’ to review the
    sufficiency of the evidence after trial.” Ortiz v. Jordan,
    
    562 U.S. 180
    , 189 (2011) (citing 
    Unitherm, 546 U.S. at 405
    ).
    “[T]here is no requirement that [a] Rule 50 motion be
    in writing and be filed with the court; oral motions, in
    which a party specifically invokes the rule, or perhaps
    even colloquy with the court, fulfill the requirements of
    Rule 50 in some instances.” Belk, Inc. v. Meyer Corp.,
    U.S., 
    679 F.3d 146
    , 156 (4th Cir. 2012). Accordingly,
    although “the better practice is for the motion to be in
    writing . . . an oral motion on the record will suffice.”
    Moran v. Raymond Corp., 
    484 F.2d 1008
    , 1010 n.1 (7th
    Cir. 1973). If counsel moves for JMOL before the case is
    submitted to the jury, counsel “must specify the judgment
    NORDOCK, INC.   v. SYSTEMS INC.                           23
    sought and the law and facts that entitled the movant to
    the judgment.” Fed. R. Civ. P. 50(a)(2). After the verdict,
    counsel must sufficiently renew the same. Fed. R. Civ. P.
    50(b).
    Here, at the close of Nordock’s case in chief, counsel
    for Systems orally moved for JMOL that the D’754 Patent
    is invalid. Counsel stated that:
    We have elicited from the witnesses that have
    testified that they are unable to identify any or-
    namental features in the drawings that are part of
    the patent in dispute here. Nobody has been able
    to point to anything with specificity. The only an-
    swer we were able to get was these things are –
    it’s the overall appearance, but Professor Visser
    himself testified under oath that the general con-
    figuration of a dock leveler with an articulated
    hinge, et cetera, is, in fact, functional.
    Mr. Gleason himself testified at deposition
    that the entire hinge is functional. And, in fact,
    the witnesses provided by the plaintiff have con-
    firmed themselves that the design, the alleged de-
    sign is functional. Nobody’s been able to argue
    anything ornamental. Point to anything orna-
    mental. For that reason we believe that no rea-
    sonable jury could find that this patent is
    anything other than functional and hence invalid.
    Tr. of Jury Trial Excerpt: Def.’s Mot. at Close of Pl.’s Case
    held on Mar. 21, 2013 at 4:12-5:5, Nordock, Inc. v. Sys.,
    Inc., No. 2:11-cv-118 (E.D. Wis. Apr. 3, 2015), ECF No.
    234. The district court denied Systems’ motion with
    respect to validity, finding that “the jury should consider
    it.” 
    Id. at 15:20.
       Before the case went to the jury, Systems’ counsel re-
    newed its motions for JMOL on the record. With respect
    to functionality, counsel maintained that “there’s an
    24                            NORDOCK, INC.   v. SYSTEMS INC.
    absence of any evidence that anything is ornamental.” Tr.
    of Jury Trial–Vol. 6 held on Mar. 25, 2013 at 1234:25-
    1235:1, Nordock, Inc. v. Sys., Inc., No. 2:11-cv-118 (E.D.
    Wis. Apr. 3, 2015), ECF No. 233. Counsel further argued
    that, “[i]f you remove each of the admittedly functional
    elements of the drawing, you end up with a blank sheet of
    paper.” 
    Id. at 1235:8-10.
    The court denied Systems’
    motion, concluding that a reasonable factfinder could
    determine that the overall design is not dictated by func-
    tion. 
    Id. at 1240:6-10.
        Because counsel for Systems specifically addressed
    the insufficiency of the evidence with respect to the orna-
    mental features of the D’754 Patent, we conclude that
    these motions were sufficient under Rule 50(a). The
    question, therefore, is whether Nordock’s post-trial mo-
    tion was sufficient to preserve the issue for appeal pursu-
    ant to Rule 50(b). “Because the sufficiency of post-
    judgment motions is a procedural matter not unique to
    patent law, the law of the Seventh Circuit sets the stand-
    ard by which we judge the adequacy of” Systems’ motion.
    Fort James Corp. v. Solo Cup Co., 
    412 F.3d 1340
    , 1347
    (Fed. Cir. 2005).
    Rule 7(b)(1) of the Federal Rules of Civil Procedure
    requires that motions must “state with particularity the
    grounds for seeking the order.” Fed. R. Civ. P. 7(b)(1)(B).
    The Seventh Circuit has determined that the rule’s
    standard for particularity means “reasonable specifica-
    tion.” Talano v. Nw. Med. Faculty Found., Inc., 
    273 F.3d 757
    , 760 (7th Cir. 2001) (quoting Martinez v. Trainor, 
    556 F.2d 818
    , 819-20 (7th Cir. 1977)). “The purpose of the
    particularity requirement in Rule 7 is to afford notice of
    the grounds and prayer of the motion to both the court
    and to the opposing party, providing that party with a
    meaningful opportunity to respond and the court with
    enough information to process the motion correctly.”
    Registration Control Sys., Inc. v. Compusystems, Inc., 
    922 F.2d 805
    , 807 (Fed. Cir. 1990).
    NORDOCK, INC.   v. SYSTEMS INC.                          25
    The record reveals that, after the jury reached its ver-
    dict, the district court asked counsel whether there were
    any post-trial motions. At that point, counsel for Systems
    had the following exchange with the court:
    MR. MANN: Well, I guess at this point, Judge,
    just as a routine matter whatever motions we
    made during the trial, JMOL and so forth, we
    would renew those motions to the extent that they
    are necessary. . . .
    Everything we made we renew. I’m not sure what
    that is, but just for the record whatever we said
    before—
    THE COURT: Yeah, and everything the Court
    said about those is the same also, so—
    MR. MANN: Okay. Fair enough, Judge.
    Tr. of Jury Trial–Vol. 7 held on Mar. 26, 2013 at 1305:12-
    1306:5, Nordock, Inc. v. Sys., Inc., No. 2:11-cv-118 (E.D.
    Wis. Apr. 3, 2015), ECF No. 235. Thereafter, although
    Systems filed a Rule 59(e) motion with respect to in-
    fringement, it did not file any post-verdict motion as to
    validity.
    We conclude that counsel for Systems failed to renew
    the motion for JMOL as to validity with sufficient particu-
    larity to satisfy the Seventh Circuit’s “reasonable specifi-
    cation” standard. Fort 
    James, 412 F.3d at 1347
    (quoting
    
    Martinez, 556 F.2d at 819-20
    ). While there is no require-
    ment that a Rule 50(b) motion be in writing, it is counsel’s
    responsibility to ensure that the record is sufficiently
    clear for both the district court and the appellate court
    reviewing the record to understand the grounds therefor.
    Merely renewing “whatever w[as] said before” is inade-
    quate, particularly when qualified with the statements
    that the renewal is only “to the extent necessary” and that
    counsel is unaware of what the motions were. We there-
    26                             NORDOCK, INC.   v. SYSTEMS INC.
    fore may not consider Systems’ challenge to the sufficien-
    cy of the evidence with respect to validity.
    Even if we were to consider Systems’ arguments,
    however, we would conclude that substantial evidence
    supports the jury’s finding that Systems failed to prove
    that the D’754 Patent is invalid. It is well established
    that a design patent “only protects the novel, ornamental
    features of the patented design.” OddzOn Prods., Inc. v.
    Just Toys, Inc., 
    122 F.3d 1396
    , 1405 (Fed. Cir. 1997). If a
    patented design is “primarily functional rather than
    ornamental, the patent is invalid.” PHG Techs., LLC v.
    St. John Cos., 
    469 F.3d 1361
    , 1366 (Fed. Cir. 2006) (cita-
    tion and quotation marks omitted). The determination of
    whether a patented design is dictated by function “must
    ultimately rest on an analysis of its overall appearance.”
    Berry Sterling Corp. v. Pescor Plastics, Inc., 
    122 F.3d 1452
    , 1455 (Fed. Cir. 1997). We have recognized that
    assessing various factors may help determine whether a
    claimed design, as a whole, is dictated by functionality:
    whether the protected design represents the best
    design; whether alternative designs would ad-
    versely affect the utility of the specified article;
    whether there are any concomitant utility pa-
    tents; whether the advertising touts particular
    features of the design as having specific utility;
    and whether there are any elements in the design
    or an overall appearance clearly not dictated by
    function.
    PHG 
    Techs., 469 F.3d at 1366
    (quoting Berry 
    Sterling, 122 F.3d at 1456
    ); see also High Point Design LLC v. Buyers
    Direct, Inc., 
    730 F.3d 1301
    , 1315 (Fed. Cir. 2013) (“As-
    sessing [these five] factors may help determine whether a
    claimed design, as a whole, is ‘dictated by’ functional
    considerations.”).
    Here, the testimony and evidence at trial demonstrat-
    ed that: (1) Nordock intended the design to be distinctive
    NORDOCK, INC.   v. SYSTEMS INC.                          27
    and ornamental; (2) the header plate is not necessary to
    the function of a dock leveler; (3) there is a wide range of
    alternate designs available, including an open lug
    frontend design and a standard piano hinge design; and
    (4) the alternate designs available achieve the same
    utilitarian purpose as the patented design. See Tr. of
    Jury Trial–Vol. 2 held on Mar. 19, 2013 at 152:24-153:8,
    Nordock, Inc. v. Sys., Inc., No. 2:11-cv-118 (E.D. Wis. Feb.
    6, 2015), ECF No. 231; see also Tr. of Jury Trial–Vol. 1
    held on Mar. 18, 2013 at 59:21-60:7, Nordock, No. 2:11-cv-
    118 (E.D. Wis. Feb. 6, 2015), ECF No. 230. On this rec-
    ord, there was substantial evidence from which a jury
    could conclude that the claimed design is not dictated by
    function.
    B. Infringement
    Systems also argues that the district court erred by
    denying its motion for JMOL of non-infringement of the
    6 ½ foot dock leveler. To the extent Systems cross-
    appeals from the district court’s denial of its motion for
    JMOL of non-infringement, that argument was not
    properly preserved for appeal for the same reason dis-
    cussed in the context of Systems’ motion for JMOL of
    invalidity: counsel’s Rule 50(b) motion was insufficient.
    Although Systems did not file a post-verdict motion with
    respect to validity, it did file a Rule 59(e) motion seeking
    to amend the judgment on grounds that no evidence was
    presented at trial regarding the accused 6 ½ foot dock
    levelers. The district court denied that motion, and
    Systems’ notice of cross-appeal indicated that it was
    appealing from several adverse rulings, including the
    district court’s denial of its Rule 59(e) motion. See Notice
    of Cross Appeal, Nordock, Inc. v. Systems, Inc., No. 2:11-
    cv-118 (E.D. Wis. Aug. 29, 2014), ECF No. 215. Therefore,
    although Systems’ infringement arguments on appeal are
    framed in the context of JMOL, we are reviewing the
    district court’s denial of Systems’ Rule 59(e) motion to
    alter or amend the judgment. We apply regional circuit
    28                            NORDOCK, INC.   v. SYSTEMS INC.
    law in reviewing a motion under Rule 59(e). Minton v.
    Nat’l Ass’n of Sec. Dealers, Inc., 
    336 F.3d 1373
    , 1378-79
    (Fed. Cir. 2003). The Seventh Circuit reviews the denial
    of a Rule 59(e) motion for abuse of discretion. Zivitz v.
    Greenberg, 
    279 F.3d 536
    , 539 (7th Cir. 2002).
    To prevail on a Rule 59(e) motion to amend the judg-
    ment, a party must “‘clearly establish’ (1) that the court
    committed a manifest error of law or fact, or (2) that
    newly discovered evidence precluded entry of judgment.”
    Blue v. Hartford Life & Accident Ins. Co., 
    698 F.3d 587
    ,
    598 (7th Cir. 2012) (citing Harrington v. City of Chicago,
    
    433 F.3d 542
    , 546 (7th Cir. 2006)). The Seventh Circuit
    has described “manifest error” as “wholesale disregard,
    misapplication, or failure to recognize controlling prece-
    dent.” Oto v. Metro. Life Ins. Co., 
    224 F.3d 601
    , 606 (7th
    Cir. 2000). Importantly, Rule 59(e) is not a vehicle for
    reasserting previously rejected arguments. Vesely v.
    Armslist LLC, 
    762 F.3d 661
    , 666 (7th Cir. 2014) (“Yet we
    have held that a Rule 59(e) motion is not to be used to
    ‘rehash’ previously rejected arguments . . . .”).
    The district court denied Systems’ motion to amend
    on grounds that “the trial testimony and exhibits support
    the jury’s finding that Systems’ 6-, 6 ½-, and 7-foot wide
    LHP/LHD levelers infringed Nordock’s ’754 Patent.” Rule
    59 Decision, 
    2014 WL 3786277
    , at *2. The court ex-
    plained that the patent pertains to the “front end” of a
    dock leveler, and the jury saw evidence and heard testi-
    mony from Nordock’s president and CEO that “the 6-foot
    leveler and the middle 6-foot portion of the 6 ½- and 7-foot
    levelers are the same.” 
    Id. Because Systems
    offered no
    evidence to the contrary, the court concluded that a jury
    could reasonably infer that there is no significant differ-
    ence between the three sizes of levelers. 
    Id. And, because
    both Systems’ and Nordock’s brochures showed only the 6
    and 7 foot levelers, the court found that the jury could
    reasonably infer from the omission of the 6 ½-foot leveler
    NORDOCK, INC.   v. SYSTEMS INC.                            29
    that it is “substantially similar to the 6- and 7-foot level-
    ers.” 
    Id. Systems does
    not rely upon newly discovered evi-
    dence. Instead, it argues that Nordock presented zero
    evidence at trial regarding Systems’ 6 ½ foot dock leveler.
    According to Systems, Nordock’s technical expert admit-
    ted that he did not review any actual Systems dock level-
    er in preparing his report, and instead relied on Systems’
    brochures, none of which included pictures of the 6 ½ foot
    leveler. Systems also points to testimony from its Vice
    President—Mike Pilgrim—who identified differences in
    construction that make the 6 ½ foot leveler distinct from
    both the 6 and 7 foot versions.
    We conclude that the district court did not abuse its
    discretion by denying Systems’ motion to amend the
    judgment with respect to infringement. Even if there was
    no direct evidence presented for the 6 ½ foot dock leveler,
    the jury could reasonably infer infringement based on the
    evidence submitted at trial. We have recognized that a
    “patentee may prove direct infringement . . . by either
    direct or circumstantial evidence.” Liquid Dynamics
    Corp. v. Vaughan Co., 
    449 F.3d 1209
    , 1219 (Fed. Cir.
    2006). Indeed, “[t]here is no requirement that direct
    evidence be introduced, nor is a jury’s preference for
    circumstantial evidence over direct evidence unreasonable
    per se.” 
    Id. Given the
    trial testimony that the middle 6-
    foot portion of each leveler is identical, the jury could have
    reasonably inferred that all three sizes of the accused
    dock levelers infringed the D’754 Patent. We, thus,
    conclude that Systems failed to establish that the court
    “committed a manifest error of law or fact.” 
    Blue, 698 F.3d at 598
    .
    CONCLUSION
    For the foregoing reasons, we conclude that the dis-
    trict court erred in denying Nordock’s motion for a new
    trial to assess damages pursuant to 35 U.S.C. § 289. We
    30                            NORDOCK, INC.   v. SYSTEMS INC.
    therefore vacate the jury’s damages award and remand
    for a new trial on damages. With respect to Systems’
    cross-appeal, we affirm the district court’s decisions
    denying Systems’ motion for JMOL as to validity and its
    Rule 59(e) motion with respect to infringement of the 6 ½
    foot dock leveler. Accordingly, we affirm in part, vacate in
    part, and remand for further proceedings.
    AFFIRMED IN PART, VACATED IN PART,
    AND REMANDED
    

Document Info

Docket Number: 14-1762

Citation Numbers: 803 F.3d 1344

Filed Date: 9/29/2015

Precedential Status: Precedential

Modified Date: 1/12/2023

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