Shure Incorporated v. Clearone, Inc. ( 2021 )


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  • Case: 21-1024    Document: 63    Page: 1   Filed: 07/20/2021
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    SHURE INCORPORATED,
    Plaintiff-Appellant
    v.
    CLEARONE, INC.,
    Defendant-Appellee
    ______________________
    2021-1024
    ______________________
    Appeal from the United States District Court for the
    Northern District of Illinois in No. 1:17-cv-03078, Judge
    Edmond E. Chang.
    ______________________
    Decided: July 20, 2021
    ______________________
    J. DEREK MCCORQUINDALE, Finnegan Henderson
    Farabow Garrett & Dunner LLP, Reston, VA, argued for
    plaintiff-appellant. Also represented by ALEXANDER
    MICHAEL BOYER, ELLIOT COOK, LUKE HAMPTON
    MACDONALD; VLADIMIR AREZINA, VIA Legal, LLC, Chicago,
    IL.
    CHRISTINA MARIE RAYBURN, Hueston Hennigan LLP,
    Newport Beach, CA, argued for defendant-appellee. Also
    Case: 21-1024    Document: 63     Page: 2    Filed: 07/20/2021
    2                     SHURE INCORPORATED   v. CLEARONE, INC.
    represented by DOUGLAS DIXON, SOURABH MISHRA; KAREN
    YOUNKINS, Los Angeles, CA.
    ______________________
    Before MOORE, Chief Judge, PROST and O’MALLEY, Circuit
    Judges.
    MOORE, Chief Judge.
    In August 2019, the Northern District of Illinois issued
    a preliminary injunction prohibiting Shure from taking
    various actions relating to its ceiling tile beamforming mi-
    crophone array product, the MXA910:
    Shure shall cease manufacturing, marketing, and
    selling the MXA910 to be used in its drop-ceiling
    mounting configuration, including marketing and
    selling the MXA910 in a way that encourages or al-
    lows integrators to install it in a drop-ceiling
    mounting configuration.
    J.A. 119 (emphasis added). The MXA910 had four instal-
    lation configurations, only one of which, the drop-ceiling
    mounting configuration, potentially infringed. However,
    during bond briefing, Shure explained that it could “not
    control which configuration is used,” so halting sales “in
    one configuration effectively halts sales in all configura-
    tions.” J.A. 2311. The injunction prohibits Shure from sell-
    ing a product that “allows” integrators to install it in a
    drop-ceiling mounting configuration. Because Shure could
    not prevent integrators from installing the MXA910 in that
    configuration, Shure was prohibited from selling it alto-
    gether. From the bond briefing, it is clear that Shure un-
    derstood the preliminary injunction to prevent all MXA910
    sales. Id. Shure did not appeal the preliminary injunction;
    instead, it attempted to design around and released the
    MXA910-A.
    ClearOne moved for an order holding Shure in con-
    tempt, arguing Shure’s commercial activities relating to
    Case: 21-1024    Document: 63      Page: 3   Filed: 07/20/2021
    SHURE INCORPORATED   v. CLEARONE, INC.                    3
    the MXA910-A violated the preliminary injunction. The
    district court determined that the MXA910-A was not col-
    orably different from the MXA910 and that Shure’s
    MXA910-A was designed in a way that allows integrators
    to install it flush with most ceiling grids in the allegedly
    infringing drop-ceiling mounting configuration. J.A. 24,
    34. Accordingly, the district court held Shure in contempt
    for violating the preliminary injunction and ordered it not
    to “manufacture, market, or sell the MXA910-A (to the ex-
    tent that it still has any MXA910-As to sell).” J.A. 34.
    Though we do not have jurisdiction over a contempt order
    under the current posture of the case, Shure argues this
    Court has jurisdiction under 
    28 U.S.C. § 1292
    (a)(1) because
    the contempt order modified the injunction.
    Shure argues the district court expanded the prelimi-
    nary injunction when it enjoined all sales of the MXA910-
    A, instead of just prohibiting the MXA910-A when used in
    a drop-ceiling mounting configuration. The preliminary in-
    junction’s plain language and Shure’s representations dur-
    ing bond briefing demonstrate why this case lacks merit.
    The district court’s contempt order determined the
    MXA910-A was a colorable imitation of the MXA910 and
    faithfully applied the preliminary injunction—which
    barred sales if the product was capable of being installed
    in a drop-ceiling mounting configuration. To the extent
    Shure believes the preliminary injunction is too broad, it
    should have appealed that order. The order before us does
    not modify the injunction, and therefore, we have no juris-
    diction over this interlocutory appeal. Accordingly, we dis-
    miss.
    DISMISSED
    COSTS
    Costs to ClearOne.
    

Document Info

Docket Number: 21-1024

Filed Date: 7/20/2021

Precedential Status: Non-Precedential

Modified Date: 7/20/2021