On December 10, 2018, the Federal Circuit affirmed the PTAB's decisions finding that Apple had met its burden of proving the challenged claims as obvious as VirnetX was collaterally estopped from relitigating whether a prior art reference was a printed publication. VirnetX Inc. v. Apple, Inc., No. 2017-2490, -2494 (Fed. Cir. Dec. 10, 2018) Apple filed two IPRs challenging US 8,504,696 as obvious over a US patent and printed publication RFC 2401. VirnetX argued that RFC 2401 was not a 102(b) prior art but the Board disagreed and invalidated the challenged patent. During pendency of appeal in this case, the Federal Circuit affirmed the Board's decisions, in a Rule 36 judgment, in another case between the same parties (VirnetX I) in which the Board found the RFC2401 to be a printed publication for 102b analysis. Subsequent to the VirnetX I decision, Apple filed a notice of supplemental authority in this case notifying the court of the relevance of the Rule 36 judgment in VirnetX I arguing that VirnetX was collaterally estopped from relitigating the printed publication issue.
On appeal, the Federal Circuit stated that a party is collaterally estopped from relitigating an issue if: (1) a prior action presents an identical issue; (2) the prior action actually litigated and adjudged that issue; (3) the judgment in that prior action necessarily required determination of the identical issue; and (4) the prior action featured full representation of the estopped party. According to the court, a Rule 36 judgment may serve as a basis for collateral estoppel if the issue was essential or necessary to the Rule 36 judgment. In affirming the Board's decision here, the court reasoned that the question of whether RFC 2401 was a printed publication was essential to the Rule 36 judgment in VirnetX I since each ground of unpatentability that VirnetX appealed in VirnetX I relied on RFC 2401.
Full text of the opinion is available here.
On appeal, the Federal Circuit stated that a party is collaterally estopped from relitigating an issue if: (1) a prior action presents an identical issue; (2) the prior action actually litigated and adjudged that issue; (3) the judgment in that prior action necessarily required determination of the identical issue; and (4) the prior action featured full representation of the estopped party. According to the court, a Rule 36 judgment may serve as a basis for collateral estoppel if the issue was essential or necessary to the Rule 36 judgment. In affirming the Board's decision here, the court reasoned that the question of whether RFC 2401 was a printed publication was essential to the Rule 36 judgment in VirnetX I since each ground of unpatentability that VirnetX appealed in VirnetX I relied on RFC 2401.
Full text of the opinion is available here.
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