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Full Claim Scope Must Be Enabled To Avoid Invalidity

Client Alert | 1 min read | 02.05.08

In Sitrick v. Dreamworks, LLC, (No. 07-1174, February 1, 2008), a Federal Circuit panel affirms a district court’s judgment of invalidity for lack of enablement. The claims at issue are directed to integrating user generated audio or visual content into a pre-existing video game or movie by “selectively substitut[ing] user image data for predefined character image data so as to provide an audiovisual presentation that includes the [user provided] image integrated therein.” The accused product allows users to combine their own voice with pre-existing video images stored on a DVD.

Citing to Auto. Techs. Int’l, Inc. v. BMW of N. Am., Inc., 501 F.3d 1274 (Fed. Cir. 2007), the panel reasons that, because the asserted claims are broad enough to cover both movies and video games, the patent disclosure must enable both embodiments. According to the panel opinion, a “patentee who chooses broad claim language must make sure the broad claims are fully enabled.” The asserted claims are not deemed to be enabled in the context of movies because, unlike video games, movies do not rely on discrete address and control signals. In support of its conclusion, the Federal Circuit panel also notes the undisputed evidence showing that it is difficult, if not impossible, to isolate any one voice from the rest of the sounds in movie soundtracks.

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Client Alert | 1 min read | 07.08.26

CAS Board Publishes Final Rule Rescinding CAS 404, 408, 409, and 4117

As part of its ongoing effort to conform the Cost Accounting Standards (“CAS”) to generally accepted accounting principles (“GAAP”), the CAS Board published a final rule rescinding CAS 408 (Accounting for costs of compensated personal absence) and CAS 411 (Accounting for acquisition costs of material).  The CAS Board also rescinded CAS 404 (Capitalization of tangible assets) and CAS 409 (Depreciation of tangible capital assets) but retained certain requirements of CAS 404 and 409, which will be located in new paragraphs of CAS 405 (Accounting for unallowable costs).  Specifically, the CAS Board retained the requirements currently located at CAS 404-50(d)(1), CAS 409-50(e)(5), CAS 409-50(j)(1), and CAS 409-50(j)(4), which the CAS Board explained are necessary to protect the Government’s interests.  Otherwise, the CAS Board determined that the requirements of CAS 404, 408, 409, and 411 overlapped with GAAP such that GAAP “may be applied reasonably as a substitute for CAS to support contract cost and pricing.”...