Opinion ID: 460292
Heading Depth: 2
Heading Rank: 1

Heading: claim 10 of the '797 patent--pep resin

Text: 47 The district court found that the Pep resin of claim 10 contained some three ring and greater molecules, along with a substantial amount of one and two ring adducts, that the process taught by the Rothrock patent produces claim 10 material, although having a large portion of adducts and only a small amount of three ring or greater molecules, that MEGSON taught phenol-formaldehyde resins having an ortho-ortho orientation, connected by ether bridges and having an open para position, and that MARTIN taught a linear polymeric ether resin having up to thirty-five phenol rings linked by ether bridges, some of these ether linkages breaking down at higher temperatures to produce methylene linkages and formaldehyde. Based upon these findings, the court concluded that the Pep resin of claim 10 of the '797 patent would have been obvious to one of ordinary skill in the art inasmuch as the Rothrock patent, MEGSON, and Martin collectively suggested the critical elements of Pep resin here at issue. 48 Before reviewing the factual findings made by the district court with respect to the teachings of each of the individual references, and the propriety of combining the teachings of these references, we find it appropriate to address several statements made by the district court. See Union Carbide Corp., 724 F.2d at 1574, 220 USPQ at 590 (while faulty reasoning may lead to a wrong result, appellant must show not only error in reasoning but error in result). A.1 Combining References 49 First, the court stated that Ashland had failed to establish that one of ordinary skill in the art would have been unable to read the prior art references and discover the Pep resin claimed by Robins. The law does not impose a burden on Ashland to establish that the combined teachings of the individual prior art references would not have led one skilled in the art to discover the Pep resin of claim 10. The ultimate burden of establishing invalidity rests upon the party espousing such. Stratoflex, 713 F.2d at 1534, 218 USPQ at 875. Where the party asserting invalidity must rely upon a combination of prior art references to establish invalidity, that party bears the burden of showing some teaching or suggestion in these references which supported their use in combination. W.L. Gore, 721 F.2d at 1552, 220 USPQ at 312. It is legal error to place this burden on the patentee. A.2 35 U.S.C. Sec. 282 50 Further, if this statement is interpreted to place upon the patentee the burden of establishing the validity of his patents, it is at odds with established case law. Section 282 of Title 35 places the burden for the initial production of evidence, Stratoflex, 713 F.2d at 1534, 218 USPQ at 875, and the ultimate burden of persuasion on the issue of validity on the party asserting patent invalidity. Hughes Aircraft, 717 F.2d at 1359, 219 USPQ at 478; Stratoflex, 713 F.2d at 1534, 218 USPQ at 875. While the burden for the production of evidence shifts to the patentee once a prima facie case of invalidity is established, Ralston Purina, at 5; Piasecki, 745 F.2d at 1472, 223 USPQ at 788, the ultimate burden remains with the party asserting invalidity, in this instance Delta, to establish that the claims of the patents here at issue are invalid. There is no burden on Ashland to establish that the claims of these patents are valid, and it is impermissible for a trial court to shift this burden to the patentee. Jones, 727 F.2d at 1528-29, 220 USPQ at 1025. A.3 Evidence vis-a-vis Obviousness 51 The court also held that Ashland's evidence was insufficient to rebut Delta's clear and convincing evidence on the obviousness of claim 10 of the '797 patent. While on this record we cannot say that this holding by the district court was erroneous, it is open to an interpretation 14 at odds with the established case law, and for this reason we set forth a brief explication of the relevant legal principles. All facts relevant to the issue of obviousness, both the facts established by the party asserting invalidity and the facts established by the rebuttal evidence submitted by the patentee, must be fully considered by the court prior to reaching its conclusion on obviousness. W.L. Gore, 721 F.2d at 1555, 220 USPQ at 314; Stratoflex, 713 F.2d at 1539, 218 USPQ at 879. These facts must be established by clear and convincing evidence. Lindemann Maschinenfabrik, 730 F.2d at 1459, 221 USPQ at 486; SSIH Equipment, 718 F.2d at 375, 218 USPQ at 687. A.4 The Pep Resin 52 The claims of a patent measure and define the invention. Jones, 727 F.2d at 1528, 220 USPQ at 1024. A Sec. 103 determination requires an evaluation of the prior art references with respect to the claimed invention. Lear Siegler, 733 F.2d at 890, 221 USPQ at 1033; Union Carbide, 724 F.2d at 1574-75, 220 USPQ at 590-91. The claims here in issue are to be read and construed 15 in light of the specification and prosecution history of the patent. ACS Hospital Systems, Inc. v. Montefiore Hospital, 732 F.2d 1572, 1577, 221 USPQ 929, 932 (Fed.Cir.1984). The district court found that the Pep resin of claim 10 contained some three ring and greater molecules, along with a substantial amount of one and two ring adducts. This finding is clearly erroneous, being based upon a misconstruction of the governing law and an interpretation of claim 10 which is erroneous as a matter of law. Cf. Lemelson v. United States, 752 F.2d 1538, 1552, 224 USPQ 526, 534 (Fed.Cir.1985). 53 The novel phenol-aldehyde resin as claimed in claim 10 is a linear phenolic resin wherein the sum of m and n must be at least two such that the phenolic resin as claimed comprises only molecules having three or more linked-phenol rings. Claim 10 does not claim one or two ring adducts, i.e., dimethylol phenols, benzylic ethers or methylene-bridged diphenols. 16 Relevant prior art for this Sec. 103 determination requires references which disclose phenolic polymers having three or more phenol rings, phenol rings linked by benzylic ether and methylene bridges, and phenol chains having at least one terminal methylol group. A.5 Opinion Testimony 54 While objective factual evidence going towards a Sec. 103 determination is preferable to statements of opinion on the issue, the nature of the matter sought to be established, as well as the strength of the opposing evidence, must be taken into consideration in assessing the probative value of expert opinion. In re Oelrich, 579 F.2d 86, 91, 198 USPQ 210, 215 (CCPA 1978). Opinion testimony rendered by experts must be given consideration, and while not controlling, generally is entitled to some weight. See FED.R.EVID. 701-704; Orthopedic Equipment Co. v. United States, 702 F.2d 1005, 1012, 217 USPQ 193, 199 (Fed.Cir.1983). Lack of factual support for expert opinion going to factual determinations, however, may render the testimony of little probative value in a validity determination. Cf. In re Altenpohl, 500 F.2d 1151, 1158, 183 USPQ 38, 44 (CCPA 1974). While the opinion testimony of a party having a direct interest in the pending litigation is less persuasive than opinion testimony by a disinterested party, it cannot be disregarded for that reason alone and may be relied upon when sufficiently convincing. Cf. In re McKenna, 203 F.2d 717, 720, 97 USPQ 348, 350-51 (CCPA 1953). 55 The district court found that the process disclosed in the Rothrock patent produced claim 10 material having a large portion of adducts, with only a small amount of three phenol ring or greater molecules. The bases for this finding were the objective teachings disclosed in the Rothrock patent, the opinion testimony given by Jordan Kopac, Delta's CEO, who although not qualified as an expert was within the category of one skilled in the art as found by the district court, see supra note 11, and the opinion testimony of Dr. Robert Conley, Ashland's expert witness. The court did not make any explicit credibility determinations with respect to the opinion testimony of Mr. Kopac and Dr. Conley, nor did the court give any indication as to the weight accorded this testimony. A.6 The Rothrock Patent 56 The Rothrock patent disclosed a process for forming a heat-hardening unmodified phenol-formaldehyde resin. 17 There was no disclosure or teaching as to the chemical structure of this phenol-formaldehyde resin, i.e., what product was formed through the use of this process. W.L. Gore, 721 F.2d at 1550, 220 USPQ at 311. The district court did not point to any supporting statements or teachings in the Rothrock patent as a basis for its finding that the process of Rothrock produced a claim 10 phenolic resin. 57 Each element of a claim is material. Lemelson, 752 F.2d at 1551, 224 USPQ at 533. The process for producing the phenolic resin as claimed in claim 10 of the '797 patent requires the removal of water above 100 ?C during the process. 18 This removal of water occurs during the condensation stage of the '797 process wherein the previously formed phenol-formaldehyde adduct is condensed to form the claim 10 product. The specification of the '797 patent teaches the importance of removing water during the condensation step. 19 There was no teaching in the Rothrock patent that water was to be removed during the disclosed process. 20 58 There is no presumptive correlation that two similar processes form substantially the same product where the processes differ by a materially limiting step. Cf. In re Hoeksema, 399 F.2d 269, 274, 158 USPQ 596, 601 (CCPA 1968) (if the prior art of record failed to disclose a method for making a claimed compound, at the time the invention was made, it cannot be legally concluded that the compound itself was in the possession of the public). 59 There was no objective evidence to be gleaned from the Rothrock patent which would have supported a factual finding that the Rothrock patent produced claim 10 material. Concomitantly, there was no factual support for Mr. Kopac's opinion testimony with respect to the Rothrock patent, and consequently, Mr. Kopac's opinion testimony is of little probative value in a validity determination. Altenpohl, 500 F.2d at 1158, 183 USPQ at 44. Accordingly, the district court committed clear error when it found that the Rothrock process produced claim 10 material. 21 A.7 The MARTIN Reference 60 MARTIN, the court found, disclosed a linear polymeric ether resin containing up to thirty-five phenol rings linked in an ortho-ortho orientation by ether bridges. A reference, however, must have been considered for all it taught, disclosures that diverged and taught away from the invention at hand as well as disclosures that pointed towards and taught the invention at hand. W.L. Gore, 721 F.2d at 1550, 220 USPQ at 311. While MARTIN taught a polymer having the phenol rings linked together by benzylic ether bridges, as well as at least one terminal methylol group, MARTIN also taught that this polymer had an R substituent at the para position. MARTIN taught that this R group was a substituent other than hydrogen. The polymeric resin of claim 10, in contrast, has an open or unsubstituted para position. Not only was the para position of the MARTIN compound blocked, there was no recognition that it would have been advantageous to replace the R substituent with a hydrogen, i.e., unsubstituted para position, to increase the polymer's reactivity. A.8 The MEGSON Reference 61 The court found that the MEGSON reference illustrated a polybenzylic ether resin within the scope of claim 10, the drawing showing a phenol-formaledehyde resin molecule having ether bridge linkages at the ortho-ortho position and an open para position. The court found this molecule satisfied the m, n limitations of claim 10 by having at least two benzylic ether linking bridges, i.e., m equal to or greater than two while n equals zero. 22 But, the MEGSON reference should also have been considered for disclosures that taught away from the invention here at issue. Id., 721 F.2d at 1550, 220 USPQ at 311. The specific disclosure relied upon by the district court depicted two polymers cross-linked by a methylene derivative. Since this particular cross-linking mechanism was postulated to involve a reaction with nuclear hydrogen, the phenols of the polymers were shown as para unsubstituted, i.e., having hydrogen at the para position. The other cross-linking mechanisms, as well as a disclosure of a benzylic ether linked polymer product, depicted polymers having an R group at the para position. This R could have stood for hydrogen, or it could have stood for an organic radical. 23 There was no teaching in the explication of the cross-linking mechanism as to what the terminal end groups of these cross-linking structures were, i.e., there was no teaching that these cross-linking structures had a methylol terminal end group. Finally, there was uncontroverted testimony by Ashland's expert, see supra note 23, that the disclosure in the MEGSON reference relied upon by the district court was a hypothetical structure. 62 The test of whether a particular compound described in the prior art may have been relied upon to show that the claimed subject matter at issue would have been obvious is whether the prior art provided an enabling disclosure with respect to the disclosed prior art compound. Cf. In re Donohue, 766 F.2d 531, 533, 226 USPQ 619, 621 (Fed.Cir.1985); Hoeksema, 399 F.2d at 273-74, 158 USPQ at 598-99. Delta did not offer evidence that showed an enabling disclosure for the disclosed structure of MEGSON, while uncontroverted testimony showed the MEGSON structure to be a hypothetical structure. A.9 Conclusion 63 The district court concluded, in light of the Rothrock patent, MEGSON, and MARTIN, that the Pep resin as claimed in claim 10 of the '797 patent would have been obvious. Obviousness, however, cannot be established by combining the teachings of the prior art to produce the claimed invention unless there was some teaching, suggestion or incentive in this prior art which would have made such a combination appropriate. ACS Hospital Systems, 732 F.2d at 1577, 221 USPQ at 933; W.L. Gore, 721 F.2d at 1551, 220 USPQ at 311. The district court did not elucidate any factual teachings, suggestions or incentives from this prior art that showed the propriety of combination, nor in fact did the district court even point out what teachings from each of the references, when considered in combination, were relied upon in concluding that the invention of claim 10 would have been obvious. Nor apparently did the district court give any consideration to teachings in these references which would have led one skilled in the art away from the invention of claim 10. We would have to say that the district court used claim 10 of the '797 patent as a blueprint, and abstracted individual teachings from the Rothrock patent, MEGSON, and MARTIN to create the Pep resin of claim 10. W.L. Gore, 721 F.2d at 1552, 220 USPQ at 312. This was error as a matter of law. 24 64 We are not persuaded, based upon the foregoing, that the facts upon which the district court based its legal conclusion that the subject matter of claim 10 of the '797 patent would have been obvious were proven by clear and convincing evidence, Lindemann Maschinenfabrik, 730 F.2d at 1459, 221 USPQ at 486; SSIH Equipment, 718 F.2d at 375, 218 USPQ at 687, such that it cannot be said that Delta had satisfied its burden of proof. Nor was there a sufficient basis for the district court to combine the teachings of the Rothrock patent, MEGSON, and MARTIN. ACS Hospital Systems, 732 F.2d at 1577, 221 USPQ at 933. The district court erred as a matter of law in concluding that the invention of claim 10 would have been obvious.