ROKU, INC. v. ITC

Court: US Court of Appeals for the Federal Circuit

Docket: 22-1386

Opinion Date: January 19, 2024

Areas of Law: Intellectual Property, Patents

In this case, the United States Court of Appeals for the Federal Circuit reviewed the findings of the International Trade Commission (ITC) which ruled in favor of Universal Electronics, Inc. (Universal) in a patent dispute with Roku, Inc. The patent at issue, U.S. Patent No. 10,593,196, related to a "universal control engine" that helps different types of media devices communicate with each other using various communication protocols. Universal had accused Roku of importing certain TV products that infringed this patent.

The court affirmed the ITC's findings on three key issues:

1. Ownership Rights: Roku had argued that Universal lacked standing to assert the patent because it did not own all rights to the patent at the time it filed its complaint. However, the court found that Universal did indeed possess ownership rights based on a 2012 agreement which constituted a present conveyance of patent rights.

2. Domestic Industry Requirement: The court found that Universal satisfied the economic prong of the domestic industry requirement by proving a substantial investment in engineering and research and development to exploit the patent. Roku had argued that the Commission erred by not requiring Universal to allocate its domestic industry expenses to a specific domestic industry product, but the court disagreed.

3. Non-Obviousness of Patent: The court affirmed the ITC's determination that Roku failed to establish a prima facie case that the challenged claims were unpatentable as obvious. The court found that the combination of two prior art references did not disclose all elements of the patent claim in question. Additionally, the court found that Roku failed to present clear and convincing evidence of a motivation to combine the prior art references.

Based on these findings, the court affirmed the ITC's decision, thereby ruling in favor of Universal Electronics, Inc.