B/E Aerospace, Inc. v. C&D Zodiac, Inc ( 2020 )


Menu:
  • Case: 19-1935   Document: 56    Page: 1   Filed: 06/26/2020
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    B/E AEROSPACE, INC.,
    Appellant
    v.
    C&D ZODIAC, INC,
    Appellee
    ______________________
    2019-1935, 2019-1936
    ______________________
    Appeals from the United States Patent and Trademark
    Office, Patent Trial and Appeal Board in Nos. IPR2017-
    01275, IPR2017-01276.
    ______________________
    Decided: June 26, 2020
    ______________________
    MORGAN CHU, Irell & Manella LLP, Los Angeles, CA,
    for appellant. Also represented by MICHAEL RICHARD
    FLEMING.
    JOHN C. ALEMANNI, Kilpatrick Townsend & Stockton
    LLP, Raleigh, NC, for appellee. Also represented by
    MICHAEL T. MORLOCK, DAVID A. REED, Atlanta, GA;
    STEVEN MOORE, San Francisco, CA; ANDREW WILLIAM
    RINEHART, Winston-Salem, NC.
    ______________________
    Case: 19-1935    Document: 56      Page: 2      Filed: 06/26/2020
    2                      B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    Before LOURIE, REYNA, and HUGHES, Circuit Judges.
    REYNA, Circuit Judge.
    B/E Aerospace, Inc. appeals a final written decision of
    the Patent Trial and Appeal Board that found certain
    claims of B/E’s aircraft lavatory-related patents obvious.
    B/E contends that the Board’s decision is erroneous be-
    cause the Board incorporated a claim limitation that is not
    present in the prior art. B/E also contends that the Board
    erred by relying on printed matter that does not qualify as
    prior art under 35 U.S.C. § 311(b). We conclude that the
    Board’s final determination of obviousness is correct, and
    we do not reach the § 311(b) issue. On that basis we affirm
    the Board’s final written decision.
    BACKGROUND
    This appeal arises from an inter partes review (“IPR”)
    proceeding. Petitioner, C&D Zodiac, Inc. (“Zodiac”), chal-
    lenged two patents owned by B/E Aerospace, Inc. (“B/E”),
    U.S. Patent No. 9,073,641 (“the ’641 patent”) and U.S. Pa-
    tent No. 9,440,742 (“the ’742 patent”) (collectively, “the
    challenged patents”).
    The technology involved in this appeal is simple. The
    challenged patents relate to space-saving technologies for
    aircraft enclosures such as lavatory enclosures, closets, and
    galleys. C&D Zodiac, Inc. v. B/E Aerospace, Inc., No.
    IPR2017-01275 at 4 (P.T.A.B. Oct. 23, 2018). Each patent
    contains a two-page written description that teaches an en-
    closure with contoured walls designed to “reduce or elimi-
    nate the gaps and volumes of space required between
    lavatory enclosures and adjacent structures.” ’641 patent
    at 1:52–56. In other words, the patents are directed to
    space-saving modifications to the walls of aircraft enclo-
    sures; they are not directed to the structures contained
    within those walls. Id.; see IPR2017-01275 at 15.
    The parties agree that, for purposes of this appeal, the
    challenged patents and claims are not materially different
    Case: 19-1935     Document: 56       Page: 3   Filed: 06/26/2020
    B/E AEROSPACE, INC.   v. C&D ZODIAC, INC                       3
    and that claim 1 of the ’641 patent is representative of the
    challenged claims.
    Claim 1 of the ’641 patent provides:
    1. An aircraft lavatory for a cabin of an aircraft of
    a type that includes a forward-facing passenger seat
    that includes an upwardly and aftwardly inclined
    seat back and an aft-extending seat support dis-
    posed below the seat back, the lavatory comprising:
    a lavatory unit including a forward wall portion and
    defining an enclosed interior lavatory space, said
    forward wall portion configured to be disposed
    proximate to and aft of the passenger seat and
    including an exterior surface having a shape that
    is substantially not flat in a vertical plane; and
    wherein said forward wall portion is shaped to sub-
    stantially conform to the shape of the upwardly
    and aftwardly inclined seat back of the passenger
    seat, and includes a first recess configured to re-
    ceive at least a portion of the upwardly and
    aftwardly inclined seat back of the passenger
    seat therein, and further includes a second re-
    cess configured to receive at least a portion of the
    aft-extending seat support therein when at least
    a portion of the upwardly and aftwardly inclined
    seat back of the passenger seat is received within
    the first recess.
    ’641 patent at 4:63–5:17 (emphases added).
    This appeal focuses on the “first recess” and “second re-
    cess” limitations, labeled as elements 34 and 100, respec-
    tively, in Figure 2 below.
    Case: 19-1935     Document: 56       Page: 4      Filed: 06/26/2020
    4                        B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    ’641 patent at Fig. 2.
    A. Prior Art
    Zodiac’s petition asserted two grounds of unpatentabil-
    ity. The Board instituted on both grounds. During the pro-
    ceeding, Zodiac requested a partial adverse judgment,
    which the Board granted. This left only one instituted
    ground: that the challenged claims were obvious over the
    so-called “Admitted Prior Art” and U.S. Patent No.
    3,738,497 (“Betts”).
    In its petition, Zodiac defined the “Admitted Prior Art”
    as certain portions of the challenged patents, including Fig-
    ure 1. See ’641 patent at 1:65–67. As shown below, Fig-
    ure 1 of the Admitted Prior Art discloses a flat, forward-
    facing lavatory wall immediately behind a passenger seat
    that has a rear seat leg extending toward the back of the
    plane (referred to as an “aft-extending seat support”).
    Case: 19-1935   Document: 56   Page: 5   Filed: 06/26/2020
    Case: 19-1935      Document: 56      Page: 6     Filed: 06/26/2020
    6                       B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    limitation.
    Id. at 17
    (citing Betts at 2:19–24). 1 The Board
    also found that skilled artisans (airplane interior design-
    ers) would have been motivated to modify the flat forward-
    facing wall of the lavatory in the Admitted Prior Art with
    Betts’s contoured, forward-facing wall because skilled arti-
    sans were interested in adding space to airplane cabins,
    and Betts’s design added space by permitting the seat to be
    moved further aft.
    Id. at 14–17.
         The Board found that a skilled artisan would have
    found it “obvious to further modify the Admitted Prior
    Art/Betts combination to include the ‘second recess’ to re-
    ceive passenger seat supports.”
    Id. at 22.
    The Board used
    two separate approaches presented by Zodiac to reach that
    conclusion. 2
    First, Zodiac argued that “the logic of using a recess to
    receive the seat back applies equally to using another re-
    cess to receive the aft extending seat support.”
    Id. At 18.
     The Board found Zodiac’s arguments and testimony “cred-
    ible and convincing.”
    Id.
    at 22.
    The Board agreed with Zo-
    diac that creating a recess in the wall to receive the seat
    support was an obvious solution to a known problem. The
    Board relied on the testimony of Zodiac’s expert, Mr. An-
    derson, who opined that the addition of a second recess “is
    nothing more than the application of a known technology
    (i.e., Betts) for its intended purpose with a predictable re-
    sult (i.e., to position the seat as far back as possible).
    Id. at 18,
    23. Mr. Anderson explained that a skilled artisan
    “would be motivated to modify an enclosure, such as a lav-
    atory, to include a second recess to receive aft facing seat
    supports”; that this “modification is nothing more than the
    1   B/E does not challenge the Board’s finding that
    Betts teaches the “first recess” limitation.
    2   The Board stated that it reached its obviousness
    conclusion through a “traditional approach” and a “com-
    mon sense” approach. J.A. 156 n.1.
    Case: 19-1935     Document: 56       Page: 7   Filed: 06/26/2020
    B/E AEROSPACE, INC.   v. C&D ZODIAC, INC                     7
    application of known technology for its intended purpose”;
    and that the “result of such a modification is predictable,
    allowing the seat to be positioned further aft in an aircraft.”
    J.A. 1850 ¶ 191; see also IPR2017-01275 at 23, 26.
    Second, the Board found that Zodiac “established a
    strong case of obviousness based on the Admitted Prior Art
    and Betts, coupled with common sense and the knowledge
    of a person of ordinary skill in the art.” IPR2017-01275 at
    34. Relying on the testimony of Mr. Anderson, the Board
    found that recesses configured to receive seat supports
    “were known in the art” and that “it would have been a
    matter of common sense” to incorporate a second recess in
    the Admitted Prior Art/Betts combination.
    Id. at 26.
                           C. Design Drawings
    Zodiac attached to its petition three “design drawings”
    that undisputedly depict “enclosures that include a lower
    recess to receive a seat support,” i.e., a “second recess.”
    Id. at 19.
    Zodiac did not identify these design drawings as
    prior art references for any of the enumerated grounds of
    unpatentability. Instead, Zodiac asserted the drawings as
    evidence that lower recesses to receive a seat support were
    “known in the art.”
    Id. at 21.
         B/E moved to exclude the design drawings and the re-
    lated testimony on the basis that Zodiac had not shown
    that the drawings were “patents” or “printed publications”
    within the meaning of 35 U.S.C. § 311(b). J.A. 513–18.
    Section 311(b) provides that, in an IPR proceeding, claims
    may be cancelled as unpatentable only on the basis of prior
    art consisting of “patents or printed publications.”
    The Board denied the motion to exclude. IPR2017-
    01275 at 22–23, 40–41. The Board determined that two of
    the designs, the SAS MD-90 and the 737 Storage, were in
    public use or on sale prior to the critical date of the chal-
    lenged patents.
    Id. But the
    Board explained that it con-
    sidered the design drawings only for the purpose of
    Case: 19-1935     Document: 56      Page: 8     Filed: 06/26/2020
    8                      B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    “identify[ing], specifically, the knowledge of those skilled in
    the art.”
    Id. at 24.
    When used for those purposes, the
    Board explained, the drawings “need not be ‘printed publi-
    cation’ prior art.”
    Id. at 41-42;
    see also
    id. at 24.
         B/E requested a rehearing of the Board’s determination
    regarding the design drawings. B/E argued that the Board
    “misapprehended and/or overlooked the statute defining
    the scope of IPRs, 35 U.S.C. § 311(b).” J.A. 652. B/E argued
    that the design drawings and the related testimony “fall[]
    outside the scope of IPRs, which are instituted only on the
    basis of prior art consisting of patents or printed publica-
    tions.’’
    Id. B/E also
    challenged the Board’s reliance on
    “common sense” in finding obviousness. The Board denied
    the request for rehearing.
    B/E timely appealed.       We have jurisdiction under
    28 U.S.C. § 1295(a)(4)(A).
    ANALYSIS
    We review final written decisions of the Board in ac-
    cordance with the Administrative Procedure Act, 5 U.S.C.
    § 706(2) (2012). HTC Corp. v. Cellular Commc’ns Equip.,
    LLC, 
    877 F.3d 1361
    , 1367 (Fed. Cir. 2017). Obviousness is
    a question of law with underlying factual findings relating
    to the scope and content of the prior art; differences be-
    tween the prior art and the claims at issue; the level of or-
    dinary skill in the pertinent art; the presence or absence of
    a motivation to combine or modify prior art with a reason-
    able expectation of success; and any objective indicia of
    non-obviousness. Acoustic Tech., Inc. v. Itron Networked
    Sols., Inc., 
    949 F.3d 1366
    , 1373 (Fed. Cir. 2020). We review
    de novo the Board’s legal conclusions of obviousness and its
    factual findings for substantial evidence. HTC Corp. v. Cel-
    lular Commc’ns Equip., LLC, 
    877 F.3d 1361
    , 1369 (Fed.
    Cir. 2017). Substantial evidence is “such relevant evidence
    as a reasonable mind might accept as adequate to support
    a conclusion.” Consol. Edison Co. v. NLRB, 
    305 U.S. 197
    ,
    229 (1938). We do not reweigh evidence on appeal. Impax
    Case: 19-1935     Document: 56       Page: 9   Filed: 06/26/2020
    B/E AEROSPACE, INC.   v. C&D ZODIAC, INC                     9
    Labs. Inc. v. Lannett Holdings Inc., 
    893 F.3d 1372
    , 1382
    (Fed. Cir. 2018).
    B/E raises two general issues on appeal. First, B/E ar-
    gues that the Board’s obviousness determination is errone-
    ous because it improperly incorporated a second recess
    limitation not disclosed in the prior art. Second, B/E con-
    tends that the Board erred by relying on the design draw-
    ings, which are not prior art “patents or printed
    publications” under 35 U.S.C. § 311(b).
    A. Obviousness
    The Board found that Zodiac established a “strong case
    of obviousness.” We agree. There is no dispute that Betts’s
    contoured wall design meets the “first recess” claim limita-
    tion. Nor do the parties dispute that a skilled artisan
    would have been motivated to modify the Admitted Prior
    Art with Betts’s contoured wall because skilled artisans
    were interested in maximizing space in airplane cabins.
    IPR2017-01275 at 14–17. Only the “second recess” limita-
    tion is at issue.
    We find no error in the Board’s conclusion that—under
    both approaches it employed—“it would have been obvious
    to further modify the Admitted Prior Art/Betts combina-
    tion to include the claimed ‘second recess’ to receive pas-
    senger seat supports.”
    Id. at 22.
          First, we affirm the Board’s conclusion that the chal-
    lenged claims would have been obvious because modifying
    the Admitted Prior Art/Betts combination to include a sec-
    ond recess was nothing more than the predictable applica-
    tion of known technology.
    Id. at 23.
    The prior art yields a
    predictable result, the “second recess,” because a person of
    skill in the art would have applied a variation of the first
    recess and would have seen the benefit of doing so. KSR
    Int’l Co. v. Teleflex Inc., 
    550 U.S. 398
    , 416 (2007) (“The com-
    bination of familiar elements according to known methods
    is likely to be obvious when it does no more than yield
    Case: 19-1935      Document: 56     Page: 10     Filed: 06/26/2020
    10                      B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    predictable results. . . . If a person of ordinary skill in the
    art can implement a predictable variation § 103 likely bars
    its patentability.”). The Board’s conclusion is supported by
    substantial evidence, namely the expert testimony of Mr.
    Anderson, who opined:
    [A] person of ordinary skill in the art would recog-
    nize that as a seat is moved further aft the seat sup-
    port necessarily is also moved further aft. As the
    seat is moved aft the feet of the seat support may
    come into contact with the lower section of the wall.
    Creating one or more recesses to accommodate what-
    ever portion(s) of the seat support that would contact
    the forward wall of the enclosure is the obvious solu-
    tion to this known problem.
    J.A. 1787 ¶ 74.
    Second, we also affirm the Board’s conclusion that the
    challenged claims would have been obvious because “it
    would have been a matter of common sense” to incorporate
    a second recess in the Admitted Prior Art/Betts combina-
    tion. IPR2017-01275 at 26, 38. B/E asserts that the Board
    legally erred by relying on “an unsupported assertion of
    common sense” to “fill a hole in the evidence formed by a
    missing limitation in the prior art.” Appellant Br. 14. B/E
    argues that the Board acted contrary to our precedent in
    Arendi S.A.R.L. v. Apple Inc., 
    832 F.3d 1355
    , 1361 (Fed.
    Cir. 2016), because the Board failed to provide a “reasoned
    explanation and record evidence to support its position.”
    Id. at 25.
    We disagree.
    In KSR, the Supreme Court opined that common sense
    serves a critical role in determining 
    obviousness. 550 U.S. at 421
    . As the Court explained, common sense teaches that
    familiar items may have obvious uses beyond their primary
    purposes, and in many cases a person of ordinary skill will
    be able to fit the teachings of multiple patents together like
    pieces of a puzzle.
    Id. (“A person
    of ordinary skill is also a
    person of ordinary creativity, not an automaton.”). The
    Case: 19-1935    Document: 56       Page: 11   Filed: 06/26/2020
    B/E AEROSPACE, INC.   v. C&D ZODIAC, INC                   11
    Court held that “rules that deny factfinders recourse to
    common sense” are inconsistent with our case law.
    Id. After KSR,
    we recognized that courts must “consider
    common sense, common wisdom, and common knowledge
    in analyzing obviousness.” 
    Arendi, 832 F.3d at 1361
    . How-
    ever, we cautioned that common sense cannot be used as a
    “wholesale substitute for reasoned analysis and eviden-
    tiary support, especially when dealing with a limitation
    missing from the prior art references specified.”
    Id. at 1362.
    Likewise, in Perfect Web Techs, Inc. v. InfoUSA, Inc.,
    we reiterated that “[c]ommon sense has long been recog-
    nized to inform the analysis of obviousness if explained
    with sufficient reasoning.” 
    587 F.3d 1324
    , 1328 (Fed. Cir.
    2009).
    Here, the Board’s invocation of common sense was
    properly accompanied by reasoned analysis and eviden-
    tiary support. The Board dedicated more than eight pages
    of analysis to the “second recess” limitation and relied on
    Mr. Anderson’s detailed expert testimony. IPR2017-01275
    at 21 (citing J.A. 1786–88 ¶¶ 74–75, J.A. 1849–50 ¶¶ 189–
    92). The Board noted Mr. Anderson’s opinion that a “per-
    son of ordinary skill in the art would recognize that as a
    seat is moved further aft the seat support necessarily is
    also moved further aft.”
    Id. (citing J.A.
    1786–87 ¶¶ 74–75).
    The Board also cited Mr. Anderson’s opinion that “lower
    recesses were a well-known solution to provide space for
    seat supports where a recess for a seat back in the forward
    wall of the enclosure unit permitted the seat to be located
    further aft.” Id.; J.A. 1787–88 ¶ 75.
    In Perfect Web, we affirmed a district court’s invocation
    of common sense to supply a missing claim 
    limitation. 587 F.3d at 1338
    . The missing limitation was step D of steps
    A–D of a method for delivering a predetermined quantity
    of emails.
    Id. at 1328.
    The record showed that the tech-
    nology was simple and that “step (D) merely involves re-
    peating earlier steps” until success is achieved.
    Id. at 1330.
    Case: 19-1935     Document: 56     Page: 12      Filed: 06/26/2020
    12                      B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    We also determined that the district court “adequately ex-
    plained its invocation of common sense.”
    Id. Here, just
    like in Perfect Web, the evidence shows that
    the technology of the claimed invention is simple. The pa-
    tents relate to contoured walls that “reduce or eliminate
    the gaps and volumes of space required between lavatory
    enclosures and adjacent structures.” ’641 patent at 1:52–
    56. See also IPR2017-01275 at 23 (rejecting B/E’s argu-
    ment that the enclosures at issue are quite complex); J.A.
    403. The missing claim limitation (the “second recess”) in-
    volves repetition of an existing element (the “first recess”)
    until success is achieved. IPR2017-01275 at 18 (reasoning
    that the logic of using a recess to receive the seat back ap-
    plies equally to using another recess to receive the aft ex-
    tending seat support).
    We find no error in the Board’s conclusion that a skilled
    artisan would have used common sense to incorporate a
    second recess in the Admitted Prior Art/Betts combination.
    We therefore affirm the Board’s obviousness conclusion un-
    der both of its approaches.
    B. Design Drawings
    B/E asserts that the Board violated 35 U.S.C. § 311(b)
    by relying on the design drawings because they are neither
    patents nor printed publications. The Board, however, did
    not rely on the design drawings when it found the chal-
    lenged claims obvious. When the Board found the chal-
    lenged claims obvious under a “traditional obviousness
    approach,” it relied on expert testimony:
    While we found Petitioner’s common sense rationale
    persuasive, Petitioner’s argument and evidence, in-
    cluding the testimony of Petitioner’s expert, support
    the conclusion that the challenged claims are obvi-
    ous under a traditional obviousness approach that
    does not rely on the “common sense” rationale sup-
    ported by [the design drawings].
    Case: 19-1935    Document: 56       Page: 13   Filed: 06/26/2020
    B/E AEROSPACE, INC.   v. C&D ZODIAC, INC                   13
    J.A. 156 n.1. Likewise, when the Board separately found
    the challenged claims obvious based on “common sense,” its
    conclusion did not rest on its consideration of those draw-
    ings:
    We concluded that Petitioner met [the Arendi com-
    mon sense] standard based not only on the citation
    to second recesses in the [design drawings], but also
    on the rationale and related analysis provided by Pe-
    titioner’s expert that we credited and found convinc-
    ing before addressing the public use/on sale
    references. We also credited the testimony of Peti-
    tioner’s expert that the proposed modification would
    have been predictable. Accordingly, because our
    analysis relied on the analysis and reasoning of Pe-
    titioner’s expert regarding why it would have been
    obvious and a matter of common sense to add a sec-
    ond recess, . . . [the design drawings] were instead
    used as further evidence in support of the common
    sense argument.
    ...
    Because we found the expert analysis credible apart
    from its reliance on the [design drawings], we need
    not reach whether supplying a missing limitation
    via a “common sense” argument, based solely on
    public uses/sales, runs afoul of § 311(b).
    J.A. 165–66, n.2.
    We agree that the Board’s obviousness conclusions are
    independently supported by “Petitioner’s argument and ev-
    idence, including the testimony of Petitioner’s expert.” J.A.
    156 n.1. The Board instituted on grounds supported by the
    Admitted Prior Art and Betts. The Board fully articulated
    its conclusion of obviousness, and we conclude that sub-
    stantial evidence supports the Board’s determination of ob-
    viousness independent of the design drawings.
    Accordingly, we need not reach the issues raised by B/E on
    Case: 19-1935   Document: 56    Page: 14      Filed: 06/26/2020
    14                   B/E AEROSPACE, INC.   v. C&D ZODIAC, INC
    whether the Board ran afoul of § 311(b) by considering the
    design drawings.
    CONCLUSION
    We have considered B/E’s other arguments and find
    them unpersuasive. For the reasons stated above, we af-
    firm the Board’s determination that claims 1, 3–10, and
    12–17 of U.S. Patent No. 9,073,641, and claims 8 and 10–
    16 of U.S. Patent No. 9,440,742, are invalid as obvious.
    AFFIRMED