Opinion ID: 403701
Heading Depth: 2
Heading Rank: 2

Heading: validity of the patents

Text: 8 Although patent validity is a question of law, Sakraida v. Ag Pro, Inc., 425 U.S. 273, 280, 96 S.Ct. 1532, 1536, 47 L.Ed.2d 784 (1976); M-C Industries, Inc. v. Precision Dynamics Corp., 634 F.2d 1211, 1213 (9th Cir. 1980), a patent enjoys a presumption of validity, 35 U.S.C. § 282 (1976), which is rebuttable only by clear and convincing evidence, Saf-Gard Products, Inc. v. Service Parts, Inc., 532 F.2d 1266, 1271 (9th Cir.), cert. denied, 429 U.S. 896, 97 S.Ct. 258, 50 L.Ed.2d 179 (1976); Del Mar Engineering Laboratories v. Physio-Tronics, Inc., 642 F.2d 1167, 1173 (9th Cir. 1981). 9 The trial court based its holding that both patents were invalid for obviousness upon 35 U.S.C. § 103 (1976), which provides: 10 A patent may not be obtained ... if the differences between the subject matter sought to be patented and the prior art are such that the subject matter as a whole would have been obvious at the time the invention was made to a person having ordinary skill in the art to which said subject matter pertains. 11 Obviousness is a question of law based on three factual determinations: 1) the state of the prior art, 2) the differences between the challenged patent and the prior art, and 3) the level of ordinary skill in the pertinent art. Graham v. John Deere Co., 383 U.S. 1, 17, 86 S.Ct. 684, 693, 15 L.Ed.2d 545 (1966). 12 SPS contends that the court made inadequate findings on these issues. While more specific findings would have facilitated review, the record demonstrates that the court considered each of them. 13 Although strict observance of the factual inquiries set forth in Graham is necessary ... this court has not required a precise articulation of the Graham analysis where a reading of the court's entire opinion, in the context of the record, reveals that the district court in fact appropriately examined the prior art in comparison with the patent in question and took into account the level of ordinary skill in the pertinent art. Satco, Inc. v. Transequip, Inc., 594 F.2d 1318, 1321 (9th Cir. 1979), cert. denied, (444 U.S. 865), 100 S.Ct. 137, 62 L.Ed.2d 89 (1979). 14 Palmer v. Orthokinetics, Inc., 611 F.2d 316, 319 (9th Cir. 1980). Accord M-C Industries, 634 F.2d at 1213. Here, the court received evidence and heard testimony from several witnesses about the state of the prior art, the differences between that art and the disputed patents, and the level of ordinary skill in the art. 3 Based on the evidence before it, the court could properly conclude that the patents were invalid. Its findings on these issues are not clearly erroneous. See M-C Industries, 634 F.2d at 1213; Saf-Gard Products, Inc. v. Service Parts, Inc., 532 F.2d 1266, 1272 (9th Cir.), cert. denied, 429 U.S. 896, 97 S.Ct. 258, 50 L.Ed.2d 179 (1976). 15 SPS argues that the court gave inadequate weight to the patents' commercial success. We reject the argument. Although commercial success may be a relevant secondary indication of obviousness, Graham v. John Deere Co., 383 U.S. at 17-18, 86 S.Ct. at 693-694, commercial success without invention will not make patentability, Great Atlantic & Pacific Tea Co. v. Supermarket Equipment Corp., 340 U.S. 147, 153, 71 S.Ct. 127, 130, 95 L.Ed. 162 (1950). Further, this secondary factor is considered only when the three primary factual determinations do not dispose of the obviousness issue. See SSP Agricultural Equipment, Inc. v. Orchard-Rite Ltd., 592 F.2d 1096, 1101 (9th Cir. 1979). 16 Where, as here, the obviousness of the patent is in issue, the presumption of a patent's validity will disappear if the applicant failed to disclose prior relevant art to the patent office. Kamei-Autokomfort v. Eurasian Automotive Products, 553 F.2d 603, 605 (9th Cir.), cert. denied, 434 U.S. 860, 98 S.Ct. 186, 54 L.Ed.2d 133 (1977). SPS alleges that the court erred in finding that SPS failed to disclose relevant prior art. The record reflects that the undisclosed prior art included an identically shaped free spinning nut. 4 The court's finding was not clearly erroneous. See M-C Industries, 634 F.2d at 1213. In any event, the court could properly find from the evidence that any presumption of validity either patent might have had was clearly and convincingly rebutted. See Saf-Gard Products, 532 F.2d at 1271.