Intamin Ltd. v. Magnetar Technologies, Corp.

• Citation: 483 F.3d 1328
• Decision Date: 18 April 2007
• Docket Number: No. 05-1579.,No. 05-1546.,05-1546.,05-1579.
• Parties: INTAMIN, LTD., Plaintiff-Appellant, v. MAGNETAR TECHNOLOGIES, CORP., Defendant-Cross Appellant.
• Court: United States Courts of Appeals. United States Court of Appeals for the Federal Circuit

483 F.3d 1328

INTAMIN, LTD., Plaintiff-Appellant, v. MAGNETAR TECHNOLOGIES, CORP., Defendant-Cross Appellant.

No. 05-1546.

No. 05-1579.

United States Court of Appeals, Federal Circuit.

April 18, 2007.

Ted S. Ward, Berke, Kent & Ward, LLP, of Los Angeles, California, argued for plaintiff-appellant.

John B. Sganga, Jr., Attorney, Knobbe, Martens, Olson & Bear, LLP, of Irvine, California, argued for defendant-cross appellant. With him on the brief were Joseph S. Cianfrani and Christopher L. Ross.

Before RADER, Circuit Judge, PLAGER, Senior Circuit Judge, and PROST, Circuit Judge.

RADER, Circuit Judge.

On summary judgment, the United States District Court for the Central District of California ruled that Magnetar Technologies, Corp. (Magnetar) does not infringe Intamin, Ltd.'s (Intamin's) U.S. Patent No. 6,062,350 (the '350 patent). Intamin appeals that ruling. Magnetar appeals the district court's order vacating a previous award of Rule 11 sanctions. Upon consideration of the claim terms on appeal, this court vacates part of the district court's claim construction and remands. This court also affirms the district court's decision to vacate the Rule 11 sanctions.

I

The '350 patent, entitled "Braking System for an Amusement Device," discloses a magnetic braking system for amusement park rides such as drop towers and roller coasters. Magnetic brakes create "eddy currents" when a conductor passes through a gap between two sets of magnets. These eddy currents, in turn, create a magnetic friction that slows and stops the car attached to the conductor. The '350 patent describes specific arrangements for the conductor and the magnets. Figure 6 of the '350 patent illustrates a configuration with the adjacent magnets of opposite polarity in direct contact. The '350 specification states that "[a]ccording to Fig. 6, the polarity of the magnet elements (8) are reversed along the direction of the carrying rail." '350 patent col.4 ll.22-23.

NOTE: OPINION CONTAINING TABLE OR OTHER DATA THAT IS NOT VIEWABLE

Figures 7 and 8 of the '350 patent show gaps between magnet elements that are filled with spacers or "intermediaries."

NOTE: OPINION CONTAINING TABLE OR OTHER DATA THAT IS NOT VIEWABLE

In one embodiment in the specification, the intermediary is non-magnetic. '350 patent col.4 ll.5-18.

Magnetar sells a magnetic braking system under the name "Soft Stop" brakes. Magnetar's brakes contain magnets arranged as a "Halbach array." A "Halbach array" rotates the polarities of adjacent magnets by 90 degrees, rather than by 180 degrees as in Figure 6 of the '350 patent. By configuring the magnets in a Halbach array arrangement, Magnetar's brake creates a one-sided flux, meaning the configuration concentrates the magnetic force on one side of a magnet while nearly canceling out the magnetic force of the other side of a magnet. For example, the one-sided flux of a Halbach array is the technology behind a refrigerator magnet that sticks on only one side.

Magnetar joins the magnets into rows with epoxy, with one magnet abutting another, and places these rows of magnets into metal tubes. Then Magnetar attaches these magnetized tubes to the track. A conductive rail, or fin, is attached to the movable passenger car. Magnetar's president allegedly offered to sell Magnetar's brakes in a configuration with the fin on the track and the magnets on the passenger cars.

Intamin sued Magnetar alleging that the Soft Stop brakes infringe claim 1 of the '350 patent. Claim 1 of the '350 patent reads:

A braking device for use with an amusement apparatus having a fixed device part, at least one running rail secured to the fixed device part, and a movable device part including at least one traveling gear configured for movement along the at least one running rail, the braking device comprising:

an eddy current brake assembly including:

a conducting part having at least one conductive rail configured for attachment to the fixed device part, said at least one conductive rail being adapted to extend the length of the fixed device part;

an energizing portion having at least one yoke aligned in correspondence with each said at least one conductive rails, each said yokes including a pair of yoke arms for receiving said at least one conductive rail there between;

at least one pair of carrying rails extending a predetermined distance along the direction of said at least one conductive rail, each said carrying rails being mounted on corresponding yoke arms of said plurality of yokes;

a plurality of magnet elements mounted on each of said carrying rails with alternating polarities, said plurality of magnet elements being further arranged such that the poles of magnet elements mounted on one carrying rail have opposite polarities from the poles of magnet elements mounted on a corresponding carrying rail of said at least one pair of carrying rails; and

an intermediary disposed between adjacent pairs of said plurality of magnet elements;

wherein:

an interferric gap is defined between each said yoke arms and the at least one conductive rail, and

movement of the movable device part, relative in the fixed device part, induces eddy currents that create a magnetic brake force between said conducting part and said energizing part.

'350 patent col.8 ll.29-65.

Seeking summary judgment of non-infringement, Magnetar asserted that its brakes did not infringe this claim because they did not include an "intermediary," because they were not "attached to the fixed device part," and because they did not include a "conductive rail" "adapted to extend the length of the fixed device part." The district court agreed that Magnetar's brakes did not contain an intermediary. Intamin, Ltd. v. Magnetar Techs. Corp., SA CV 04-511-GLT, slip op. at 7 (C.D.Cal. Jan. 25, 2005) (Initial Decision). The district court further found that Magnetar's brakes could not infringe, either literally or under the doctrine of equivalents, the limitation requiring attachment to the fixed device part. Id. at 8-10. Finally, the district court also determined that Magnetar's Soft Stop brakes did not infringe literally a limitation requiring the conductive rail to "extend the length of the fixed device part." Id. at 10-12. The district court opined that Magnetar's Soft Stop brakes may infringe this limitation under the doctrine of equivalents but did not reach that issue because the absence of other limitations already showed that Magnetar's brakes did not infringe the '350 patent. Id. at 12-13. Thus the district court granted summary judgment of non-infringement. Id.

Magnetar also alleged that Intamin's complaint violated Rule 11(b). Magnetar argued that Intamin filed its complaint as retaliation for Magnetar's president's public criticism of Intamin's brakes. Magnetar also argued that Intamin's complaint was frivolous. Intamin responded that its law suit was not retaliatory and was adequately supported by pre-filing investigations. Initially, the district court granted Rule 11 sanctions. Id. at 13-16. Upon reconsideration, the district court affirmed its finding that Intamin filed the complaint for an improper purpose but vacated its decision that Intamin's pre-filing investigation was frivolous. Intamin, Ltd. v. Magnetar Techs. Corp., SA CV 04-511-GLT, slip op. at 6-7 (C.D.Cal. March 11, 2005) (Reconsideration Decision). Magnetar then moved for attorneys' fees. Intamin, Ltd. v. Magnetar Techs. Corp., SA CV 04-511-GLT, slip op. at 2 (C.D.Cal. Apr. 25, 2005) (Fee Decision). In opposition to Magnetar's motion for attorneys' fees, Intamin argued that, under Ninth Circuit law, a meritorious (non-frivolous) complaint cannot have an improper purpose. Id. As such, Intamin argued that the district court could no longer award sanctions. Id. The district court agreed and vacated its sanctions. Id. at 2-3.

As noted, the district court found on summary judgment that Magnetar's accused brake system did not infringe Intamin's patent. Initial Decision, slip op. at 7. Intamin petitioned for reconsideration of the court's finding of non-infringement. The district court affirmed its finding of non-infringement. Reconsideration Decision, slip op. at 8. Intamin appeals the district court's grant of summary judgment of non-infringement. Magnetar cross-appeals the district court's decision to vacate the Rule 11 sanctions.

II

This court reviews a grant of summary judgment without deference. Ethicon Endo-Surgery, Inc. v. U.S. Surgical Corp., 149 F.3d 1309, 1315 (Fed.Cir.1998). On appeal, the parties dispute the district court's construction of the claim limitation requiring "an intermediary disposed between adjacent pairs of said plurality of magnets." The parties also dispute the district court's claim construction of a second limitation found in claim 1 of the '350 patent: "said at least one conductive rail being adapted to extend the length of the fixed device part." Like summary judgment itself, this court reviews claim construction without deference. Cybor Corp. v. FAS Techs. Inc., 138 F.3d 1448, 1456 (Fed.Cir.1998) (en banc).

Regarding the limitation requiring an "intermediary," the dispute rests on whether the intermediary between adjacent pairs of magnets can itself be a magnet. The use of the word "said" in a claim refers to an earlier use of the term in the claim. See Bell Commc'n Research, Inc. v. Vitalink Commc'n Corp., 55 F.3d 615, 621 (Fed.Cir.1995). Here, the claim proceeds from the following definition: "a plurality of magnet elements mounted on each of said carrying rails with alternating polarities, said plurality of magnet elements being further arranged such that the poles of magnet elements mounted on one carrying rail have opposite polarities from the poles of magnetic elements mounted on a corresponding carrying rail of said at least one pair of carrying rails." '350 patent col.8 ll.49-55. Thus, according to claim 1, the magnets surrounding the intermediary have at least "alternating" p...