Ollnova Technologies v. Ecobee Technologies
Panel: Chen, Cunningham, Stark
The Federal Circuit vacated infringement and damages judgments and remanded for a new trial in Ollnova Technologies Ltd. v. ecobee Technologies ULC, an appeal from a jury verdict in the Eastern District of Texas finding ecobee liable for infringing at least one of four asserted patents (U.S. Patent Nos. 7,860,495, 8,264,371, 7,746,887, and 8,224,282) directed to wireless building automation systems. The court held that the district court committed reversible error by using a single general verdict question asking whether ecobee infringed "ANY" of the asserted claims across all four patents, rather than requiring the jury to specify which patent or patents were infringed. Because the jury also found the '282 patent's asserted claims invalid and determined separate validity for each patent, the general verdict form created fatal ambiguity—the court could not determine whether the infringement finding rested on valid or invalid patents. On the 35 U.S.C. § 101 issues, the court vacated and remanded for further proceedings under Alice step two as to the '495 patent, holding that the district court's jury instruction was defective because it failed to inform the jury that the claims were directed to an abstract idea and did not instruct that the abstract idea itself cannot supply the inventive concept. The court affirmed that the '887 and '371 patents' asserted claims were not directed to abstract ideas under Alice step one, and affirmed denial of judgment as a matter of law of non-infringement as to the '371 patent.
The decision reinforces that verdict forms in multi-patent cases must enable appellate courts to determine the basis for liability with sufficient specificity to assess whether any finding rests on invalid claims. The court rejected the argument that substantial evidence of infringement across all patents could cure the verdict form defect, holding that such an approach would improperly require appellate fact-finding and deny the parties their right to jury resolution of contested factual issues on remand. On patent eligibility, the court's analysis of the '887 and '371 patents provides guidance on when technical improvements to wireless systems avoid abstract idea categorization at Alice step one: the '887 patent's dynamic polling and selective transmission to reduce bandwidth and power consumption, and the '371 patent's aggregation of change-of-value messages with redundancy mechanisms for communication failures, were held to be directed to technological solutions rather than abstract concepts. The ruling underscores that district courts cannot delegate Alice step one determinations to juries while simultaneously failing to instruct juries on the governing legal framework when submitting step two questions, as such instructions must clarify that abstract ideas themselves cannot provide the requisite inventive concept.