Stipulation of Non-Infringement Found Insufficient for Appeal

ALTERWAN, INC. V. AMAZON.COM, INC., AMAZON WEB SERVICES, INC.

Before Lourie, Dyk, and Stoll. Appeal from the United States District Court for the District of Delaware.

Summary: The Federal Circuit declined to reach the merits of a claim-construction appeal after finding the parties’ stipulation of non-infringement did not provide sufficient detail.

AlterWAN sued Amazon alleging infringement of patent claims relating to implementing wide area networks. The district court construed two claim terms at issue on appeal. Thereafter, the parties filed a stipulation that Amazon does not infringe under those constructions. The district court entered final judgment and AlterWAN appealed the district court’s claim construction.

The Federal Circuit held that the stipulation of non-infringement did not provide sufficient detail to allow the Court to resolve the claim construction issues presented on appeal. The Court found it unclear whether, under the stipulation, Amazon prevails on infringement if the construction of either disputed term is correct or only if both are correct. Accordingly, the Federal Circuit vacated the judgment and remanded to clarify the parties’ non-infringement positions, and to determine whether a stipulation of non-infringement is possible in the case.

Editor: Paul Stewart