Federal Circuit: PTAB Erred In Presuming Nexus Where Commercial Product Was Not Coextensive With Patented Invention

Dec 27, 2019

Reading Time : 2 min

SRAM, LLC (“Patent Owner”) is the owner of Patent No. 9,182,027 (the ’027 Patent), which claims an improved bicycle chainring structure that maintains the bicycle chain in place better than existing chainrings. The claims at issue recite specific features, including alternating narrow and wide tooth tips and teeth offset from the center of the chainring. The claims do not, however, require additional chainring improvements identified in the specification, including an “80% gap-filling” feature. During IPR of a related patent, Patent Owner referred to this feature as “critical.”

Petitioner FOX Factory, Inc. filed two (simultaneous) IPR petitions requesting review of claims 1-26 of the ’027 Patent. Petitioner asserted a number of grounds alleging that the claims would have been obvious based on several prior art references. The PTAB instituted review on both petitions. In response, Patent Owner introduced evidence of a number of secondary considerations, relying on certain chainring products that allegedly embodied the invention. The PTAB found that a combination of prior art references disclosed every limitation of the independent claims at issue, and that a skilled artisan would have been motivated to combine those references. Nonetheless, in light of Patent Owner’s objective evidence, the PTAB determined that Petitioner failed to show that the challenged claims would have been obvious.

On appeal, the Federal Circuit found that the PTAB had applied the wrong standard to determine whether there was a presumption of nexus between the challenged claims and the objective evidence. Objective evidence is only given substantial weight if there is a nexus between that evidence and the challenged claims. When the objective evidence includes a product allegedly embodying a claim, a court presumes there is a nexus between the product and the claim if the product is “coextensive” with the claim. In this case, the PTAB interpreted the coextensiveness requirement to mean only that the claims must broadly cover the product. The Federal Circuit disagreed with that interpretation. The court explained that the mere presence of some unclaimed features in the product will not necessarily preclude a presumption of nexus—indeed, perfect correspondence between a product and a claim is rare. But a patent owner must show that the product is essentially the claimed invention. Here, the product in question included a number of unclaimed features that materially impacted the functionality of the product, and the Federal Circuit could not conclude that the product was the invention claimed in the ’027 Patent that would trigger a presumption of nexus. Accordingly, the burden to show sufficient nexus should have remained with Patent Owner. The Federal Circuit remanded for the PTAB to consider secondary consideration under the appropriate allocation of the burden.

Practice Tip: Patent owners relying on a product to show evidence of secondary considerations should assess whether the product embodies critical unclaimed features. If so, a patent owner would be well advised to include ample evidence of nexus when arguing nonobviousness, instead of simply relying on a presumption of nexus.

Fox Factory, Inc. v. SRAM, LLC, No. 2018-2024/2018-2025 (Fed. Cir. Dec. 18, 2019)

Share This Insight

Previous Entries

IP Newsflash

April 1, 2025

The District of Delaware recently denied in part a motion to compel production of documents and testimony between a patentee and potential investors, valuation firms and an international bank based on the common interest exception. In so doing, the court reaffirmed that disclosure of privileged information to third parties will generally waive privilege unless it can be shown that the parties’ interests are identical and the communications are legal, not solely commercial.

...

Read More

IP Newsflash

March 24, 2025

The Federal Circuit affirmed a Patent Trial and Appeal Board (PTAB) final written decision holding that the prior art exception of AIA Section 102(b)(2)(B) does not apply to a prior sale by an inventor when the sale is conducted in private. According to the Federal Circuit, a sale must disclose the relevant aspects of the invention to the public to qualify for the prior art exception of Section 102(b)(2)(B).

...

Read More

IP Newsflash

March 21, 2025

Under the Lanham Act, a plaintiff who prevails on a trademark infringement claim may be entitled to recover the “defendant’s profits” as damages. The Supreme Court in Dewberry Group, Inc. v. Dewberry Engineers Inc. unanimously construed “defendant’s profits” in 35 USC § 1117(a) to mean that only the named defendant’s profits can be awarded, not the profits of other related corporate entities. The Court, however, left open the possibility that other language in § 1117(a) may allow for damages linked to the profits of related entities, if properly raised and supported.

...

Read More

IP Newsflash

March 13, 2025

In a series of rulings on a motion in limine, the District of Delaware recently distinguished between what qualifies as being incorporated by reference and what does not for the purposes of an anticipation defense. In short, a parenthetical citation was held to be insufficient, while three passages discussing a cited reference met the test.

...

Read More

IP Newsflash

March 4, 2025

On February 28, 2025, the USPTO announced that it was rescinding former Director Vidal’s 2022 memorandum on discretionary denials by the Patent Trial and Appeal Board. The 2022 memorandum effectively narrowed the application of discretionary denials in cases with parallel district court litigation by specifying instances where discretionary denial could not be issued. With the withdrawal of the memorandum, individual PTAB panels will regain flexibility in weighing discretionary denials. While the long-term effect of that increased flexibility is not yet known, the immediate effect is likely to be a shift towards the discretionary analysis applied by PTAB panels before the issuance of the memorandum.

...

Read More

IP Newsflash

March 3, 2025

A District of Delaware judge recently granted a defendant’s motion to include a patent prosecution bar in its proposed protective order after determining that litigation counsel’s ability to practice before the Patent Office—without ever having represented the plaintiffs at the Patent Office in the past—weighed heavily in favor of the bar.

...

Read More

IP Newsflash

February 12, 2025

The Federal Circuit recently reversed a district court decision that found a patent that did not describe after-arising technology failed to satisfy the written description requirement. In so doing, the Federal Circuit explained that written description and enablement are evaluated based on the subject matter that is claimed, not the products that practice those claims. As a result, the patentee was not required to describe unclaimed, later-discovered features of the accused products despite the broad language in the claims that undisputedly covered the products.

...

Read More

IP Newsflash

January 24, 2025

The District of Delaware recently rejected a patentee’s argument that non-production of an opinion letter from counsel, combined with knowledge of the patent, warranted a finding that defendant induced infringement.

...

Read More

© 2025 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.