v.
Qualcomm Incorporated
United States Court of Appeals
for the Federal Circuit
______________________
INTEL CORPORATION,
Appellant
v.
QUALCOMM INCORPORATED,
Appellee
______________________
2020-1664
______________________
Appeal from the United States Patent and Trademark
Office, Patent Trial and Appeal Board in No. IPR2018-
01429.
______________________
Decided: December 28, 2021
______________________
GREGORY H. LANTIER, Wilmer Cutler Pickering Hale
and Dorr LLP, Washington, DC, argued for appellant. Also
represented by DAVID LANGDON CAVANAUGH, THOMAS
SAUNDERS; BENJAMIN S. FERNANDEZ, Denver, CO; JASON
KIPNIS, Palo Alto, CA; CRISTINA SALCEDO, Los Angeles, CA.
JONATHAN S. FRANKLIN, Norton Rose Fulbright US
LLP, Washington, DC, argued for appellee. Also repre-
sented by PETER B. SIEGAL; STEPHANIE DEBROW, EAGLE
HOWARD ROBINSON, Austin, TX; DANIEL LEVENTHAL,
RICHARD STEPHEN ZEMBEK, Houston, TX.
______________________
Case: 20-1664 Document: 103 Page: 2 Filed: 12/28/2021
2 INTEL CORPORATION v. QUALCOMM INCORPORATED
Before PROST, TARANTO, and HUGHES, Circuit Judges.
PROST, Circuit Judge. Intel Corporation (“Intel”) petitioned the Patent Trial and Appeal Board (“Board”) for inter partes review (“IPR”) of various claims of U.S. Patent No. 8,229,043 (“the ’043 patent”), owned by Qualcomm Incorporated (“Qual- comm”). Intel proved unpatentable some (but not all) of these claims and some (but not all) of Qualcomm’s proposed substitute claims. Now, Intel appeals the Board’s determi- nations regarding the surviving claims. We affirm as to the originally challenged claims, but we vacate as to the sub- stitute claims. We remand for further proceedings. BACKGROUND I This appeal relates to radio frequency communication systems. On the sending end of such systems, a sending device converts a data signal (e.g., voice data) to a higher “carrier” frequency for transmission over the air. On the receiving end, a receiving device down-converts (or demod- ulates) that signal to its original “baseband” frequency. The receiver can also amplify the signal via an amplifier. A “low-noise amplifier” (“LNA”), for example, does so while minimizing noise, which distorts the signal. “Gain” quan- tifies the amplification a system provides, and the need for it varies with the incoming signal’s strength. Qualcomm’s patent is about the receiving end. Enti- tled Stepped Gain Mixer, it discloses a “mixer” (i.e., the component that performs demodulation) in a “receiver front end” that provides “stepped gain control” (i.e., gain adjustment in a stepwise manner). ’043 patent col. [1] ll. 6–8. It explains that receivers with “many fine gain steps,” as opposed to “just a few large gain steps,” can “achieve a consistently high and smooth signal-to-noise ra- tio over a large gain range”—which helps them keep pace with the “higher data rates” of newer systems on the
Case: 20-1664 Document: 103 Page: 3 Filed: 12/28/2021
INTEL CORPORATION v. QUALCOMM INCORPORATED 3 sending end. Id. at col. [1] ll. 21–27, 54–57. Pursuing that benefit, therefore, the patent uses “multiple gain states.” Id. at col. [2] ll. 9–12. Take the example pictured below (Qualcomm’s annota- tion of ’043 patent Fig. [2]). Antenna 16 receives radio fre- quency input signal 32, which is amplified by one of three LNAs 17–19 and then (annotated in red) proceeds to tran- sistors 39 and 40 of stepped gain mixer 38. The mixer de- modulates this carrier signal by processing it with local oscillator signal 36. The signal ultimately emerges as base- band signal 84. Notably, switches 41 and 42 can alter the gain. Closing switch 41 (forming a connection) and opening switch 42 (breaking a connection) increases gain, as the transistor outputs (green and blue) add to make a higher- amplitude baseband signal (yellow): J.A. 3697. Things change if the switches’ states are swapped. Then, green goes to ground while blue becomes the baseband: Case: 20-1664 Document: 103 Page: 4 Filed: 12/28/2021 4 INTEL CORPORATION v. QUALCOMM INCORPORATED J.A. 3698. Thus, toggling “two mixer gain modes for each of three amplifier gain modes” translates to “six gain states.” Id. at col. [7] ll. 24–26. II Intel petitioned for IPR identifying itself and its cus- tomer Apple, Inc. (“Apple”) as real parties-in-interest. Intel Corp. v. Qualcomm Inc., No. IPR2018-01429, 2020 WL 573274, at *1 (P.T.A.B. Jan. 30, 2020) (“Final Written De- cision”). It advanced three unpatentability grounds: that claims 1, 17, 19, and 21 were anticipated by Der 1; that claims 2, 3, and 7 were obvious in view of Der and Razavi 2; and that claims 1–3, 6, 7, 17–19, and 21 were obvious in view of Der and Valla. [3] Id. at *3. Intel prevailed on claims 1–3 and 7 but not claims 6, 17–19, and 21. Id. at[*30] . Granting in part Qualcomm’s motion to amend, the Board replaced claims 2, 3, and 7 with substitute claims 27, First, we evaluate whether substantial evidence sup- ports the Board’s conclusion that Intel’s energy-efficiency rationale was deficient because, in the Board’s view, it was “nothing more than a generic reason to make something better” and “[i]ncreasing energy efficiency is no more than a generic concern that exists in many, if not all, electronic devices.” Final Written Decision, at[*27] (emphasis added). For support, the Board looked to ActiveVideo Networks, Inc. v. Verizon Communications, Inc., in which we rejected a rationale premised on the following testimony: The motivation to combine would be because you wanted to build something better. You wanted a system that was more efficient, cheaper, or you wanted a system that had more features, makes it more attractive to your customers, because by com- bining these two things you could do something new that [you] hadn’t been able to do before. 694 F.3d 1312, 1328 (Fed. Cir. 2012). That decision, how- ever, didn’t denounce energy efficiency as per se insuffi- cient as the Board’s decision suggests. Such a rationale is not inherently suspect merely because it’s generic in the sense of having broad applicability or appeal. Quite the opposite. Even before KSR, we held that because such im- provements are “technology-independent,” “universal,” and “even common-sensical,” “there exists in these situations a motivation to combine prior art references even absent any hint of suggestion in the references themselves.” DyStar Textilfarben GmbH v. C.H. Patrick Co., 464 F.3d 1356, 1368 (Fed. Cir. 2006) (emphasis added) (referencing an “implicit motivation to combine” to make a device “more de- sirable, for example because it is stronger, cheaper, cleaner, faster, lighter, smaller, more durable, or more ef- ficient”); see KSR, 550 U.S. at 421 (quoting DyStar, 464 F.3d at 1367).
[*784]Case: 20-1664 Document: 103 Page: 20 Filed: 12/28/2021 The Board’s second complaint about Intel’s rationale is that it relied on the prior-art switch described as back- ground in Burgener, which Burgener criticizes and pur- ports to improve. Under the applicable legal standard, substantial evidence does not support rejecting Intel’s ra- tionale on this ground. Before the Board, Intel argued that a skilled artisan would have used Burgener’s prior-art switch to solve a known problem—the “feedthrough problem”—that was an expected negative consequence of disabling Der’s variable- gain mixer. As Intel’s expert explained, “due to the finite
[*785]Case: 20-1664 Document: 103 Page: 23 Filed: 12/28/2021 Last, the Board rejected Intel’s asserted rationale be- cause “powering off the variable gain mixer would have re- sulted in the circuit not being suitable for its intended purpose.” Final Written Decision, at[*27] . In so concluding, the Board explained that “Der describes two modes: a cali- bration mode and an operating mode” and then reasoned that “it does not logically flow that because the calibration mode is only used for calibration, other parts of the circuit that are intended to be used during normal operation would be turned off during normal operation.” Id. That, apparently, is because “nothing in Der suggests turning off any part of the functional circuit elements, let alone the ‘important’ variable gain mixer.” Id. Once again, the Board’s decision lacks substantial evi- dence under the standards articulated in KSR. Intel’s ob- viousness rationale isn’t defective merely because “nothing in Der suggests” it. Id. But even if that were the correct test, which it is not, portions of Der do suggest this ra- tionale—suggesting that power consumption was a consid- eration, that circuits may be turned off when not in use, and that the variable-gain mixer is not always in use, as detailed above. See generally J.A. 1840 ¶ 70. Further, the intended purpose of Der does not control. “Common sense teaches . . . that familiar items may have obvious uses beyond their primary purposes.” KSR,
[*786]Case: 20-1664 Document: 103 Page: 26 Filed: 12/28/2021