Personal Audio v. CBS was decided on January 10, 2020, on appeal from the Eastern District of Texas. A jury found for plaintiff Personal Audio on infringement and invalidity as to three asserted claims, and awarded $1,300,000 as damages against defendant CBS. When the PTAB issued a final written decision that those claims are unpatentable, the parties agreed to stay the entry of the district court’s judgment until appellate review of the PTAB decision. The Federal Circuit affirmed the PTAB decision. “The district court then asked Personal Audio and CBS how they wished to proceed, and they agreed that, under governing precedent, CBS was entitled to entry of final judgment in its favor. The district court entered such a judgment.” Personal Audio appealed.
The Federal Circuit affirmed the judgment of the district court, holding that the district court did not have jurisdiction to hear Personal Audio’s collateral attack on the PTAB final written decision.
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The Federal Circuit also held that Personal Audio “forfeited any argument” against the district court’s “holding that the necessary consequence of the affirmed final written decision was termination of this case in favor of CBS.” “In the status report submitted to the district court, Personal Audio made no argument at all for distinguishing this case from the cases in which [The Federal Circuit] held that district court actions had to terminate when a Board unpatentability ruling as to the relevant patent claims was affirmed on appeal.” “To the contrary, in the joint status report, Personal Audio agreed that current authority supports rendering a judgment in favor of the Defendant CBS.”