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April 30, 2008 8:47 AM PDT

Quick appellate review of patent claim constructions: Is the door opening for interlocutory appeals?

by Michael Valek
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The most difficult issue in many patent cases is claim construction, that is, the court's interpretation and articulation of what exactly the claims of the patent mean. Interpreting patent claims is hard work. It usually involves consideration of technical jargon that, especially when significant time has passed since the patent was filed, may be obsolete or just plain awkward. As a result, courts don't always get claim construction right the first time. Indeed, a substantial percentage--depending on whom you ask, the anecdotal figure is around 50 percent--of trial court claim constructions are successfully challenged on appeal.

The high reversal rate for claim construction is especially problematic because most claim construction decisions cannot be immediately appealed. Interpreting the claims is only the first step in the infringement analysis. After they're interpreted, that construction has to be applied to the accused product or process. Most often that's something the jury is supposed to decide, which means you may have to go through a long and costly trial before a judgment is entered. That judgment--either that the patent claims are infringed or they are not--is what the U.S. Court of Appeals for the Federal Circuit (the "Federal Circuit") ultimately reviews.

However, if the claim construction was wrong in the first place, the jury's verdict on infringement is usually wrong, too. That means a second trial will likely be necessary, which results in more work for the courts, more time lost in litigation, and more money spent on lawyers. The rub, argue critics, is that much of this additional expense and inefficiency could be avoided if claim construction opinions could be appealed prior to a final judgment on infringement.

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Originally posted at BLIP: Blogging Patents
May 30, 2007 12:50 PM PDT

Webcasters ask court for delay in fee increases

by Anne Broache
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Large digital media companies, small Webcasters and National Public Radio on Wednesday asked a federal appeals court to stall scheduled to kick in next month.

In a filing with the U.S. Court of Appeals for the D.C. Circuit, the Webcasters argued new royalty rates scheduled to take effect July 15 are "radical and arbitary" and requested an emergency stay of the decision by a three-judge copyright panel.

The SaveNetRadio Coalition, whose members include prominent Net radio operators RealNetworks, Yahoo, Pandora and Live365, said it hoped the move will allow Congress more time to act on two similar proposals that would reverse the royalty rate increases.

The new rules, announced in March by the U.S. Copyright Royalty Board, enjoy support from the record industry group SoundExchange, which collects the payments and maintains the changes are necessary to ensure artists are adequately compensated. Facing pressure from Congress, the non-profit group last week offered a deal that it said would allow small Webcasters the option of paying existing fees.

But Webcasters promptly blasted SoundExchange's latest offer as vague and potentially limiting to the growth of the Internet radio industry. They have vehemently opposed the rate increases all along, claiming the rate hikes will cripple their businesses by forcing them to hand over 300 to 1,200 percent higher fees through 2012.

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