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Microsoft Corporation v. Multi-Tech Systems, Inc., Multi-Tech Systems, Inc. v. Net2phone, Inc.

Citations: 357 F.3d 1340; 69 U.S.P.Q. 2d (BNA) 1815; 2004 U.S. App. LEXIS 1595; 2004 WL 191013Docket: 03-1138

Court: Court of Appeals for the Federal Circuit; February 2, 2004; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by Multi-Tech Systems, Inc. challenging the district court's judgment of noninfringement of several patents, including the '649, '627, and '532 patents, in favor of Microsoft Corporation and Net2Phone, Inc. The patents relate to technologies for simultaneous transmission of voice and data over telephone lines. The core issue centers on the interpretation of claims, specifically whether they are limited to direct point-to-point telephone line transmissions or include packet-switched networks like the Internet. The Federal Circuit upheld the district court's claim construction, which confined the claims to telephone line communications, based on statements made during the prosecution of the '627 patent. The court also addressed specific claim terms, affirming the prioritization of voice data in 'multiplexing' and the necessity of echo cancellation in 'speaker phone' limitations, but revised interpretations regarding 'headers.' Despite these revisions, the court maintained the final judgments of noninfringement, as Multi-Tech conceded noninfringement under the affirmed claim constructions, leading to a dismissal of the appeal.

Legal Issues Addressed

Claim Construction and Interpretation

Application: The court upheld the district court's interpretation that the patents in question require direct transmission of data packets over telephone lines, excluding packet-switched networks.

Reasoning: The court agrees with Microsoft and Net2Phone that these limitations are indeed restricted to telephone line communications and do not extend to packet-switched networks.

Headers in Data Transmission Claims

Application: The court determined that headers need to differentiate packet types but do not need to specify packet length or silence content, revising the district court's interpretation.

Reasoning: The district court's interpretation of 'headers' in the '649 patent was deemed overly narrow.

Meaning of 'Multiplexing' in Patent Claims

Application: The court affirmed the inclusion of voice data prioritization in the definition of 'multiplexing' but rejected the necessity of discarding silence packets as a limitation.

Reasoning: The district court's interpretation includes the prioritization of voice data over computer data, which is affirmed because maintaining voice data integrity is crucial for the inventions.

Prosecution History as Claim Scope Limitation

Application: Statements made during the prosecution of the '627 patent were deemed relevant for interpreting the '649 and '532 patents, thereby limiting their scope to exclude packet-switched networks.

Reasoning: The court concludes that Multi-Tech's statements during the '627 patent prosecution are pertinent not only to the '627 and '532 patents but also to the earlier issued '649 patent.

Scope of 'Speaker Phone' in Patent Claims

Application: The court found that the term 'speaker phone' should not be limited to traditional structures but affirmed the necessity of echo cancellation in full-duplex systems.

Reasoning: The court agrees with Multi-Tech that the district court's interpretation of the 'speaker phone' limitations was too restrictive.