Super-Sparkly Safety Stuff v. Skyline USA, Inc. ( 2020 )


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  • Case: 20-1490    Document: 47    Page: 1   Filed: 12/11/2020
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    SUPER-SPARKLY SAFETY STUFF, LLC,
    Plaintiff-Appellant
    v.
    SKYLINE USA, INC., AKA GUARD DOG SECURITY,
    Defendant-Appellee
    ______________________
    2020-1490
    ______________________
    Appeal from the United States District Court for the
    Northern District of Texas in No. 3:18-cv-00587-N, Judge
    David C. Godbey.
    ______________________
    Decided: December 11, 2020
    ______________________
    CHRIS STEWART, Chris Stewart, PLLC, Little Rock, AR,
    for plaintiff-appellant.
    ROBERT GLENN OAKE, JR., Oake Law Office, Allen, TX,
    for defendant-appellee.
    ______________________
    Before NEWMAN, DYK, and REYNA, Circuit Judges.
    Case: 20-1490      Document: 47    Page: 2    Filed: 12/11/2020
    2             SUPER-SPARKLY SAFETY STUFF   v. SKYLINE USA, INC.
    DYK, Circuit Judge.
    Plaintiff Super-Sparkly Safety Stuff, LLC (“Super-
    Sparkly”) appeals a decision of the United States District
    Court for the Northern District of Texas. The district court
    entered summary judgment in favor of Defendant Skyline
    USA, Inc. (“Skyline”), concluding that Skyline had not in-
    fringed Super-Sparkly’s design patent. We affirm.
    BACKGROUND
    Super-Sparkly owns a design patent for bedazzled pep-
    per spray canisters, U.S. Patent No. D731,172 (“the ’172
    patent”). This patent claims a design for a pepper spray
    canister decorated with rhinestones, in which rhinestones
    cover the bottom and some portion of the vertical part of a
    pepper spray canister.
    Skyline sells a line of “Bling It On” pepper spray canis-
    ters that are decorated with rhinestones. Unlike the de-
    signs claimed in the ’172 patent, the bottom surface of
    Skyline’s canisters is not decorated with rhinestones.
    In February 2017, Super-Sparkly sent Skyline a cease-
    and-desist letter in which it accused Skyline’s pepper spray
    canisters of infringing its design patent. Skyline re-
    sponded in April 2017, explaining that the accused product
    did not infringe Super-Sparkly’s design patent because the
    bottom of the canister was not decorated with rhinestones.
    Super-Sparkly filed suit against Skyline in the United
    States District Court for the Northern District of Texas on
    March 13, 2018, alleging direct and induced infringement
    of the ’172 patent. 1 Super-Sparkly subsequently contacted
    1 Super-Sparkly also owns U.S. Patent No. D696,857
    (“the ’857 patent”), which is similar to the ’172 patent.
    While Super-Sparkly’s complaint referred in passing to the
    ’857 patent, the substance of the complaint involves only
    the ’172 patent, and the district court found that Super-
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    SUPER-SPARKLY SAFETY STUFF   v. SKYLINE USA, INC.          3
    Amazon.com, Inc. and Dollar General Corporation, which
    resold the accused product, alleging that Skyline’s product
    infringed Super-Sparkly’s design patents. As a result, Am-
    azon and Dollar General stopped purchasing the accused
    product from Skyline. Thereafter, in the infringement suit,
    Skyline asserted counterclaims against Super-Sparkly, al-
    leging unfair competition under the Lanham Act, common
    law unfair competition, tortious interference with contrac-
    tual relations, tortious interference with business rela-
    tions, tortious interference with prospective contracts, and
    business disparagement.
    On August 6, 2019, Skyline filed a motion for partial
    summary judgment of noninfringement. On August 21,
    2019, Super-Sparkly filed a motion for an extension of time
    to respond to the motion for partial summary judgment on
    the grounds that discovery was not yet complete. Then, on
    August 27, 2019, instead of opposing Skyline’s motion for
    partial summary judgment on the merits, Super-Sparkly
    filed a response pursuant to Federal Rule of Civil Proce-
    dure 56(d), claiming a lack of sufficient facts to file a re-
    sponse. The district court denied Super-Sparkly’s motion
    for an extension of time and granted summary judgment of
    noninfringement. The district court also certified its entry
    of partial summary judgment as final under Federal Rule
    of Civil Procedure 54(b). Super-Sparkly appeals.
    DISCUSSION
    This appeal requires us to resolve two issues: first,
    whether summary judgment was properly certified as fi-
    nal, thereby conferring jurisdiction on the court; and sec-
    ond, whether summary judgment of noninfringement was
    warranted.
    Sparkly alleged infringement of only the ’172 patent. On
    appeal, despite again making passing reference to the ’857
    patent, Super-Sparkly does not dispute this determination.
    Case: 20-1490     Document: 47        Page: 4   Filed: 12/11/2020
    4            SUPER-SPARKLY SAFETY STUFF     v. SKYLINE USA, INC.
    I
    When a district court certifies a decision as final under
    Federal Rule of Civil Procedure 54(b), we must review the
    finality of the judgment de novo to ensure we have jurisdic-
    tion, even if the parties agree that jurisdiction is proper.
    Ultra-Precision Mfg. v. Ford Motor Co., 
    338 F.3d 1353
    ,
    1356 (Fed. Cir. 2003) (citing W.L. Gore & Assocs. v. Int’l
    Med. Prosthetics Rsch. Assocs., Inc., 
    975 F.2d 858
    , 862 (Fed.
    Cir. 1992)). For Rule 54(b) to apply, three prerequisites
    must be met: “(1) multiple claims for relief or multiple par-
    ties must be involved; (2) at least one claim or the rights
    and liabilities of at least one party must be finally decided;
    and (3) the district court must find that there is no just rea-
    son for delaying an appeal.” Alfred E. Mann Found. for Sci.
    Rsch. v. Cochlear Corp., 
    841 F.3d 1334
    , 1347 (Fed. Cir.
    2016) (citing 10 Charles Alan Wright et al., Federal Prac-
    tice and Procedure § 2656 (3d ed. 2016)). While we review
    finality de novo, we review the district court’s determina-
    tion that there is no just reason for delay for abuse of dis-
    cretion. W.L. 
    Gore, 975 F.2d at 862
    .
    Here, all three prerequisites are met. First, the case
    involves multiple claims, as Skyline’s counterclaims are
    still pending before the district court. Second, Super-
    Sparkly’s two patent infringement claims were finally de-
    cided by the district court’s entry of summary judgment of
    noninfringement. Third, the district court did not abuse its
    discretion in determining that there is no just reason for
    delay.
    As the three prerequisites to Rule 54(b) are met, we
    find that the case was properly certified and that we have
    jurisdiction to hear this appeal.
    II
    Super-Sparkly argues that summary judgment was im-
    proper (1) on the merits because there was a genuine issue
    of material fact as to infringement, and (2) under Federal
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    SUPER-SPARKLY SAFETY STUFF   v. SKYLINE USA, INC.           5
    Rule of Civil Procedure 56(d), in light of Super-Sparkly’s
    asserted need for additional discovery to respond to the
    summary judgment motion.
    A
    Design patent infringement occurs when a party,
    “without license of the owner, (1) applies the patented de-
    sign, 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 imitation has been applied.” 35 U.S.C. § 289. The
    “ordinary observer” test is used to determine whether a de-
    sign patent has been infringed. Egyptian Goddess, Inc. v.
    Swisa, Inc., 
    543 F.3d 665
    , 678 (Fed. Cir. 2008) (en banc).
    The test inquires whether an accused design appears “sub-
    stantially the same” as a patented design, such that “an
    ordinary observer, giving such attention as a purchaser
    usually gives,” would be induced “to purchase one suppos-
    ing it to be the other.”
    Id. at 670
    (quoting Gorham Co. v.
    White, 
    81 U.S. 511
    , 528 (1871)).
    We review summary judgment of noninfringement de
    novo. Accent Packaging, Inc. v. Leggett & Platt, Inc., 
    707 F.3d 1318
    , 1325 (Fed. Cir. 2013) (citing Laryngeal Mask Co.
    v. Ambu A/S, 
    618 F.3d 1367
    , 1370 (Fed. Cir. 2010)).
    Super-Sparkly and Skyline agree that the difference
    between the ’172 patent and the accused design is that the
    former includes rhinestones on the bottom of the pepper
    spray canister, whereas the latter does not. The district
    court did not err in concluding that that this difference pre-
    cludes a finding of infringement under the ordinary ob-
    server test.
    Under the ordinary observer test, the claimed and ac-
    cused designs may be “sufficiently distinct” and “plainly
    dissimilar,” such that an ordinary observer clearly would
    not find the two designs “substantially the same.”
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    6             SUPER-SPARKLY SAFETY STUFF   v. SKYLINE USA, INC.
    Egyptian 
    Goddess, 543 F.3d at 678
    . When the designs are
    not “plainly dissimilar,” the analysis
    will benefit from a comparison of the claimed and
    accused designs with the prior art . . . . Where
    there are many examples of similar prior art de-
    signs . . . differences between the claimed and ac-
    cused designs that might not be noticeable in the
    abstract can become significant to the hypothetical
    ordinary observer who is conversant with the prior
    art.
    Id. The ’172 patent
    claims a very simple design, in which
    rhinestones are applied to two surfaces of a canister: the
    vertical cylinder and the bottom. Removing the rhine-
    stones from one of these surfaces—the bottom—is a signif-
    icant departure from the claimed design. The ’172 patent
    and the accused design are thus plainly dissimilar; because
    the accused design lacks rhinestones on one of the two sur-
    faces decorated in the claimed design, an ordinary observer
    would not find the two designs substantially the same.
    Even assuming that the two designs are not “plainly
    dissimilar,” a comparison with the prior art makes clear
    that the accused design does not infringe the ’172 patent.
    Although there do not appear to be “many examples of sim-
    ilar prior art designs,” the prior art “Pepperface” reference,
    dating from 2006, was widely marketed and endorsed by
    various celebrities. 2 Its design has rhinestones around the
    majority of the canister, but not on the top (near the spray
    nozzle) or bottom of the cylinder. Per Egyptian Goddess,
    then, the Pepperface design highlights that the key differ-
    ence between the ’172 patent and the accused design is that
    the bottom of the cylinder is decorated with rhinestones.
    2A screenshot of the archived Pepperface website is
    included as an attachment to this opinion.
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    SUPER-SPARKLY SAFETY STUFF    v. SKYLINE USA, INC.           7
    As such, the attention of a hypothetical ordinary observer
    conversant with bedazzled pepper spray canisters would be
    drawn to the presence or absence of rhinestones on the bot-
    tom of the cylinder. See Egyptian 
    Goddess, 543 F.3d at 676
    .
    The hypothetical ordinary observer would therefore
    find significant the lack of rhinestones on the bottom of the
    accused design and would not confuse the accused design
    with the ’172 patent. The district court correctly concluded
    that the ordinary observer test necessitates a finding of
    noninfringement.
    B
    Federal Rule of Civil Procedure 56(d) provides that
    where, on a motion for summary judgment, “a nonmovant
    shows by affidavit or declaration that, for specified reasons,
    it cannot present facts essential to justify its opposition,”
    the district court may defer consideration of the motion or
    deny it; allow time to pursue affidavits, declarations, or dis-
    covery; or “issue any other appropriate order.” Fed. R. Civ.
    P. 56(d).
    We apply the law of the regional circuit in interpreting
    and applying Rule 56(d). Accent 
    Packaging, 707 F.3d at 1325
    . “The Fifth Circuit,” where this case arose, “reviews
    the district court’s dispositions of Rule 56(d) motions for an
    abuse of discretion.”
    Id. (citing Raby v.
    Livingston, 
    600 F.3d 552
    , 561 (5th Cir. 2010)). In the Fifth Circuit, Rule
    56(d) motions “are ‘broadly favored and should be liberally
    granted’ because the rule is designed to ‘safeguard non-
    moving parties from summary judgment motions that they
    cannot adequately oppose.’” 
    Raby, 600 F.3d at 561
    (quoting
    Culwell v. City of Fort Worth, 
    468 F.3d 868
    , 871 (5th Cir.
    1999)). However, a request under Rule 56(d) must explain
    how “specified facts . . . if adduced, will influence the out-
    come of the pending summary judgment motion.”
    Id. (quot- ing C.B.
    Trucking, Inc. v. Waste Mgmt. Inc., 
    137 F.3d 41
    ,
    44 (1st Cir. 1998)). “If it appears that further discovery will
    not provide evidence creating a genuine issue of material
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    8            SUPER-SPARKLY SAFETY STUFF   v. SKYLINE USA, INC.
    fact, the district court may grant summary judgment.”
    Id. (quoting Access Telecom,
    Inc. v. MCI Telecomm. Corp., 
    197 F.3d 694
    , 720 (5th Cir. 1999)).
    In his supporting declaration, counsel for Super-
    Sparkly listed fifteen facts without which Super-Sparkly
    was purportedly unable to file a response to Skyline’s mo-
    tion. Super-Sparkly sought information relating to Sky-
    line’s knowledge and opinion of the ’172 patent and the
    accused design; the creation and sale of the accused prod-
    uct; and Skyline’s discovery conduct. None of this infor-
    mation, however, has any bearing on the ordinary observer
    test for design patent infringement. Because the infor-
    mation for which Super-Sparkly sought further discovery
    was irrelevant to the issue of infringement, Super-Sparkly
    failed to explain how the specified facts could influence the
    outcome of the motion. The district court did not abuse its
    discretion by denying Super-Sparkly’s request under
    Rule 56(d) and entering summary judgment of nonin-
    fringement.
    AFFIRMED
    Case: 20-1490   Document: 47       Page: 9    Filed: 12/11/2020
    SUPER-SPARKLY SAFETY STUFF   v. SKYLINE USA, INC.          9
    ATTACHMENT