Tuesday, August 31, 2010

Jamba Juice (jmba)

On the last conference call a mysterious legal payment came up and there was chatter about the details of that payment. I happened to find the information below today and thought I would share. I don't know much about law so this maybe it or it may not be it, I just simply thought I would share and maybe someone who knows more about it can shed some light.

FOODIE PARTNERS v. JAMBA JUICE COMPANY



CIVIL ACTION NO. 2:06-CV-12



UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS, MARSHALL DIVISION



October 30, 2007, Decided

October 30, 2007, Filed





CORE TERMS: station, liquid, customer service, refrigerated, juice, patent, beverage, guard, specification, breath, pan, conduit, refrigeration, customer, distance, embodiment, space, consumer, barrier, finishing, invention, shallow, service station, reporting, parties agreed, ingredient, connected, drip, rinse, temperature





COUNSEL: [*1] James W Knowles, Mediator, Pro se, Wilson Sheehy Knowles Robertson & Cornelius, Tyler, TX.



For Foodie Partners, a Texas Partnership, Plaintiff: Diane K Lettelleir, LEAD ATTORNEY, Winstead Sechrest & Minick, Dallas, TX; Earl Glenn Thames, Jr, LEAD ATTORNEY, James Matthew Rowan, Potter Minton, Tyler, TX; Brandon Duane Gleason, Michael P Adams, Winstead Sechrest & Minick - Austin, Austin, TX; William P Ramey, III, Winstead Sechrest & Minick - The Woodlands, The Woodlands, TX.



For Jamba Juice Company, a California Corporation, Defendant: Robert D Becker, LEAD ATTORNEY, Greg Travis Warder, Michelle Gillette, Pamela S Merkadeau, Manatt Phelps & Phillips LLP, Palo Alto, CA; Samuel Franklin Baxter, LEAD ATTORNEY, McKool Smith - Marshall, Marshall, TX; James Matthew Rowan, Potter Minton, Tyler, TX.



For Jamba Juice Company, a California Corporation, Counter Claimant: Samuel Franklin Baxter, LEAD ATTORNEY, McKool Smith - Marshall, Marshall, TX; Michelle Gillette, Pamela S Merkadeau, Manatt Phelps & Phillips LLP, Palo Alto, CA.



For Foodie Partners, a Texas Partnership, Counter Defendant: Diane K Lettelleir, LEAD ATTORNEY, Winstead Sechrest & Minick, Dallas, TX.



JUDGES: JOHN D. LOVE, UNITED STATES MAGISTRATE [*2] JUDGE.



OPINION BY: JOHN D. LOVE



OPINION



MEMORANDUM OPINION AND ORDER

The Court now issues this claim construction opinion construing the terms in U.S. Patent No. 5,950,448 (hereinafter "the '448 patent"). Plaintiff Foodie Partners (hereinafter "Foodie") asserts that Defendant Jamba Juice Company has infringed, actively induced others to infringe, and contributorily infringed claims 2, 3, 4, and 5 of the '448 patent. 1





- - - - - - - - - - - - - - Footnotes - - - - - - - - - - - - - - -

1 Although Foodie initially asserted infringement of claim 1 of the '448 patent as well, Foodie agreed to drop claim 1 prior to the Markman hearing, and it is no longer at issue in the case.



- - - - - - - - - - - - End Footnotes- - - - - - - - - - - - - -

THE '448 PATENT

The '448 patent is entitled "System, Method and Apparatus For Dispensing and Combining Refrigerated Source Liquids," and deals with a system and apparatus for combining and dispensing liquids, ice and flavoring additives to create slush-type beverages.



APPLICABLE LAW

"It is a 'bedrock principle' of patent law that 'the claims of a patent define the invention to which the patentee is entitled the right to exclude." Phillips v. AWH Corp., 415 F.3d 1303, 1312 (Fed. Cir. 2005) (en banc) (quoting Innova/Pure Water Inc. v. Safari Water Filtration Sys., Inc., 381 F.3d 1111, 1115 (Fed. Cir. 2004)). In [*3] claim construction, courts examine the patent's intrinsic evidence to define the patented invention's scope. See id.; C.R. Bard, Inc. v. U.S. Surgical Corp.

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, 388 F.3d 858, 861 (Fed. Cir. 2004); Bell Atl. Network Servs., Inc. v. Covad Communications Group, Inc., 262 F.3d 1258, 1267 (Fed. Cir. 2001). This intrinsic evidence includes the claims themselves, the specification, and the prosecution history. See Phillips, 415 F.3d at 1314; C.R. Bard, Inc., 388 F.3d at 861. Courts give claim terms their ordinary and accustomed meaning as understood by one of ordinary skill in the art at the time of the invention in the context of the entire patent. Phillips, 415 F.3d at 1312-13; Alloc, Inc. v. Int'l Trade Comm'n, 342 F.3d 1361, 1368 (Fed. Cir. 2003).



The claims themselves provide substantial guidance in determining the meaning of particular claim terms. Phillips, 415 F.3d at 1314. First, a term's context in the asserted claim can be very instructive. Id. Other asserted or unasserted claims can also aid in determining the claim's meaning because claim terms are typically used consistently throughout the patent. Id. Differences among the claim terms can also assist in understanding a term's meaning. [*4] Id. For example, when a dependent claim adds a limitation to an independent claim, it is presumed that the independent claim does not include the limitation. Id. at 1314-15.



Claims "must be read in view of the specification, of which they are a part." Id. (quoting Markman v. Westview Instruments, Inc., 52 F.3d 967, 978 (Fed. Cir. 1995)). "[T]he specification 'is always highly relevant to the claim construction analysis. Usually, it is dispositive; it is the single best guide to the meaning of a disputed term.'" Id. (quoting Vitronics Corp. v. Conceptronic, Inc., 90 F.3d 1576, 1582 (Fed. Cir. 1996)); Teleflex, Inc. v. Ficosa N. Am. Corp., 299 F.3d 1313, 1325 (Fed. Cir. 2002). This is true because a patentee may define his own terms, give a claim term a different meaning than the term would otherwise possess, or disclaim or disavow the claim scope. Phillips, 415 F.3d at 1316. In these situations, the inventor's lexicography governs. Id. Also, the specification may resolve ambiguous claim terms "where the ordinary and accustomed meaning of the words used in the claims lack sufficient clarity to permit the scope of the claim to be ascertained from the words alone." Teleflex, Inc., 299 F.3d at 1325. [*5] But, "although the specification may aid the court in interpreting the meaning of disputed claim language, particular embodiments and examples appearing in the specification will not generally be read into the claims." Comark Communications, Inc. v. Harris Corp., 156 F.3d 1182, 1187 (Fed. Cir. 1998); see also Phillips, 415 F.3d at 1323. The prosecution history is another tool to supply the proper context for claim construction because a patent applicant may also define a term in prosecuting the patent. Home Diagnostics, Inc., v. Lifescan, Inc., 381 F.3d 1352, 1356 (Fed. Cir. 2004) ("As in the case of the specification, a patent applicant may define a term in prosecuting a patent.").



Although extrinsic evidence can be useful, it is "less significant than the intrinsic record in determining 'the legally operative meaning of claim language.'" Phillips, 415 F.3d at 1317 (quoting C.R. Bard, Inc., 388 F.3d at 862). Technical dictionaries and treatises may help a court understand the underlying technology and the manner in which one skilled in the art might use claim terms, but technical dictionaries and treatises may provide definitions that are too broad or may not be indicative of how the [*6] term is used in the patent. Id. at 1318. Similarly, expert testimony may aid a court in understanding the underlying technology and determining the particular meaning of a term in the pertinent field, but an expert's conclusory, unsupported assertions as to a term's definition is entirely unhelpful to a court. Id. Generally, extrinsic evidence is "less reliable than the patent and its prosecution history in determining how to read claim terms." Id.



Finally, it is important to remember that although the specification often describes very specific embodiments of the invention, the Federal Circuit has cautioned against confining the claims to those embodiments. See Phillips, 415 F.3d at 1323. The roles of the specification are to "teach and enable those of skill in the art how to make and use the invention and to provide a best mode for doing so. One of the best ways to teach a person of ordinary skill how to make and use the invention is to provide an example of how to practice the invention in a particular case." Id. "'[T]he claims of the patent, not its specifications, measure the invention.'" Innova/Pure Water, Inc. v. Safari Water Filtration Systems, Inc., 381 F.3d 1111, 1115 (Fed. Cir. 2004) [*7] (citation omitted). "Accordingly, particular embodiments appearing in the written description will not be used to limit claim language that has broader effect. And, even where a patent describes only a single embodiment, claims will not be interpreted 'restrictively unless the patentee has demonstrated a clear intention to limit the claim scope 'using words or expressions of manifest exclusion or restriction.'" Id. at 1117 (citations omitted).



The Court begins, as it must, with the words of the claim. See Teleflex, 299 F.3d at 1324; see also CCS Fitness, Inc. v. Brunswick Corp., 288 F.3d 1359, 1366 (Fed. Cir. 2002) ("The terms used in the claims bear a presumption that they mean what they say and have the ordinary meaning that would be attributed to those words by persons skilled in the relevant art.").



TERMS TO BE CONSTRUED

The terms at issue are: "a remotely located refrigeration unit," "refrigerated source liquid conduit line," "a customer service station," "a product finishing station," "a portion control mechanism," "consumer service station beverage tapping mechanism," "beverage flow reporting device," "beverage flow measurement device," "refrigerated source liquid," "a cold pan," [*8] "a drip pan," "a breath guard," and "integrated or detached drain board."



Agreed Terms



At the Markman hearing held on August 21, 2007, the parties agreed on the construction of the following terms: "portion control mechanism," "beverage flow reporting device," 2 "beverage flow measurement device," and "integrated or detached drain board." The parties agreed that the definition of "integrated or detached drain board" should be "a surface that is joined with the rinse sink, but can be separate from the rinse sink." See Transcript of Markman Hearing at 62-63, Foodie Partners v. Jamba Juice Co., Civ. No. 2:06-cv-12 (E.D. Tex. 2007). Both parties agreed that the definition of "beverage flow reporting device" should be "a mechanism or computer-based system which collects and reports beverage flow data." See Transcript of Markman Hearing at 49. The parties also agreed that the definition of "beverage flow measurement device" should be "a mechanism or computer-based system for ascertaining a quantity of flow of at least one source liquid." See Transcript of Markman Hearing at 49-50. Finally, the parties agreed that "portion control mechanism" means "a mechanism for controlling the amount of [*9] source liquid dispensed according to preset volume or time metered constraints." See Transcript of Markman Hearing at 42-43.

Saturday, August 28, 2010

Had a crazy week and I haven't been able to update anything. First things first, on Thursday I sold the September 4 strike puts in Citi that I purchased to hedge my long position for a 23% gain. That sounds good but it was just a small hedge (1/3 of my long position). Also crude oil hit my target range, hitting a low of $70.76 on Wednesday and closing at $75.59 on Friday. That is a nice move that I unfortunately can't say I caught because I was so busy that I wasn't able to be at my screens to even know it happened. So my idea was right on and I waited patiently for over a week and then missed it.

Saturday, August 21, 2010

Weekend Charts


AAP Broke to new highs on Friday


ACL Riding Channel


CTXS Holding up well - Chart looks nice


LVS continues upward


TA Closing in on 200 sma on a good run
as you can see the last time resulted in nice jump


AKAM Hell of a day friday in a down tape


BIDU Rides Higher
Nice buy right here at the rising trendline


CRM Monster day Friday


EBAY Strong week-Keep an eye out


CMG Looking Good


RBCN Could set up again


GMCR

Jim Gobetz - Smart Guy Who I Have Much Respect For

Very good show from Friday, if you dont want to listen to the whole thing do yourself a favor and skip to 27:45 and listen to Jim's piece on "What we need to do to survive as an economic power". Make it a good weekend.

Friday, August 20, 2010

Small change to the portfolio today, with the markets on shaky ground at the moment I decided to add some September puts in Citi (C) for a short term hedge of my long position via December calls. The hedge is just 1/3 of my long position. Citi hit the rising trend line on the chart that I posted yesterday and held but it didn't bounce, so I will make a decision on whether or not to add to my long next week. I still have not entered a long oil position even though it continues to become more and more attractive everyday, but with market weakness and U.S. Dollar strength I think it could continue a little lower still. Here are a couple charts.

C

USO


Thursday, August 19, 2010

So today was a pretty nasty day in the equity markets unless you came into the day short, with the S&P 500 ending the day down 18.53 points and the Dow down 144 points. In the overnight session the S&P futures looked good on positive economic data out of Germany until about 8:30 ETD when weekly initial jobless claims hit the wire rising by 16,000 from 484,000 to 500,000. Consensus was a decline of 4,000, and and a quick swoosh sell off of about 10 handles in the eminis followed. Lets pause here for a bit, the chart below shows the initial jobless claims on a weekly basis going back to April of '08 and as you can see their steady decline stalled out going into this year and with the 500,000 reading this morning brings us back to last November levels which is not a good sign for the economic recovery. While it can be said that jobs lag recoveries, it would be nice to see some growth.


However when I see charts like this one from the Bureau of Labor Statistics it makes me question whats going on.


In the above chart, the red line is employment and the blue line is labor demand, as you can see there is a large gap there. This tells me that folks that are unemployed are a little too comfortable being that way and in some cases are probably getting paid more via unemployment benefits than they would if they went out and got a job. This has to stop before the jobless claims will start declining again in my opinion. To get back on track here, we then had the Philadelphia Fed Survey out at 10:00 ETD which was also ugly coming in at -7.7. The survey was worse that expected and shows a continued decline as you can see below.

All in all, I am still bullish on the economic recovery albeit on shaky ground at the moment until we see companies start spending some of their cash hoards on hiring and value creation. Steve Place wrote an excellent article on this today that's worth a read so I wont go into that. I didn't make any moves in my portfolio today although it was difficult not to put on a long oil position with crude being down so low, but I still think we could test the $70-$72 level and that's where I will step in. I am watching that very closely and I'm also looking to add to my Citi position around the $3.70 level which is at a short term rising trend line.

Wednesday, August 18, 2010

08/18/2010

This is my first blog post and I dont have a whole lot to share today because I didnt do much. I was hoping to get a bigger selloff in crude oil this morning closer to the $72 level on the front month /CL contract, to get into an October 34/37 call spread in USO, but it didnt quite get there so I didn't get in unfortunatly, and crude closed the day around $75.53 after getting as low as $74.19 so I missed a nice move.

I still may get into that trade in the coming days because oil is just too cheap and if Israel decides to take out this new Iranian nuclear facility before the Russians deliver the payload of uranium, we could see crude at $100 pretty quick. I also wanted to point out a great post by John Lee at chartsgonewild.com on the Hindsight Bias. Very interesting and worth the read.