Ex Parte 5832461 et al - Page 6



              Appeal No. 2005-2642                                                                                            
              Reexamination Control No. 90/005,841                                                                            

              Appellant’s reliance (Brief at 7) on the claim interpretation given in the district court’s                     
              Markman order is therefore misplaced.                                                                           
                      Appellant nevertheless argues (Reply at 4) that we are bound by the district                            
              court’s Markman order under the doctrine of issue preclusion discussed in In re                                 
              Freeman, 30 F.3d 1459, 1465-69, 31 USPQ2d 1444, 1448-51 (Fed. Cir. 1994).  This                                 
              argument fails because the Markman order was not “necessary to the judgment                                     
              rendered in the previous action,” which is one of the four conditions for application of the                    
              doctrine:                                                                                                       
                      Issue preclusion is appropriate only if: (1) the issue is identical to one                              
                      decided in the first action; (2) the issue was actually litigated in the first                          
                      action;                  (3) resolution of the issue was essential to a final                           
                      judgment in the  first action; and  (4) plaintiff had a full and fair opportunity                       
                      to litigate the  issue in the first action.  A.B. Dick Co. v. Burroughs Corp.,                          
                      713 F.2d 700, 702, 218 USPQ 965, 967 (Fed. Cir. 1983), cert. denied,                                    
                      464 U.S. 1042 (1984).                                                                                   
              Freeman, 30 F.3d at 1465, 31 USPQ2d at 1448.  Regarding claim interpretation, the                               
              Freeman court further explains:                                                                                 
                      In the context of claim interpretation, this court has held that                                        
                             judicial statements regarding the scope of patent claims are entitled                            
                             to collateral estoppel effect in a subsequent infringement suit only                             
                             to the extent that determination of scope was essential to a final                               
                             judgment on the question of validity or infringement.                                            
                      A.B. Dick Co., 713 F.2d at 704, 218 USPQ at 968. This court has warned,                                 
                      however, that statements regarding the scope of  patent claims made in a                                
                      former adjudication should be narrowly construed.  Id.  Additionally, to                                
                      apply issue preclusion to a claim interpretation issue decided in a prior                               
                      infringement adjudication, "the interpretation of the claim had to be the                               
                      reason for the loss [in the prior case] on the issue of  infringement."                                 
                      Jackson Jordan, Inc. v. Plasser American Corp., 747 F.2d 1567, 1577,                                    
                      224 USPQ 1, 8 (Fed. Cir. 1984).                                                                         

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