Packet Intelligence LLC v. NetScout Systems, Inc., No. 19-2041 (Fed. Cir. 2020)
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Packet’s patents teach a method for monitoring packets exchanged over a computer network. A stream of packets between two computers is called a connection flow. Monitoring connection flows cannot account for disjointed sequences of the same flow in a network. The specifications explain that it is more useful to identify and classify “conversational flows,” defined as “the sequence of packets that are exchanged in any direction as a result of an activity.” Conversational flows provide application-specific views of network traffic and can be used to generate helpful analytics to understand network load and usage. The 789 patent recites apparatus claims’ the 725 and 751 patents recite method claims.
Packet asserted claims against NetScout’s products under 35 U.S.C. 102. The jury found all claims willfully infringed, rejected NetScout’s invalidity defenses, and awarded pre-suit ($3.5 million) and post-suit ($2.25 million) damages. The court issued findings, rejecting NetScout’s section 101 invalidity defense, enhanced damages by $2.8 million, and awarded an ongoing royalty for post-verdict infringement. The Federal Circuit reversed in part and vacated the award of enhanced damages. The district court erred in denying NetScout’s motion for judgment as a matter of law on pre-suit damages. Packet is barred from recovering damages for pre-suit sales of the NetScout products because it failed to comply with the marking requirement. The court otherwise affirmed.
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