Fed. Cir.

Manufacturing Resources International, Inc. v. Squires

March 31, 2026 ·24-2228 ·Panel Decision ·TARANTO · By Maria Santos

The Federal Circuit affirmed the Patent Trial and Appeal Board's determination that Manufacturing Resources International's cooling system claims were unpatentable for obviousness. The court upheld the Board's finding that prior art disclosed the claimed constricted convection plate and that the patent owner failed to establish a nexus for its objective indicia of nonobviousness.

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Manufacturing Resources International, Inc. (MRI) owns patents describing a cooling system for electronic displays that uses a 'constricted convection plate' to direct cool air across the back of a display surface. Samsung Electronics Co. petitioned the Patent Trial and Appeal Board (PTO) to institute inter partes reviews (IPRs) of MRI's patents, arguing that the claims were obvious in light of two prior art references: a U.S. patent by Kim and a Korean patent application by Na. The Board found that both references disclosed the claimed constricted convection plate and that MRI's evidence of nonobviousness, such as commercial success and industry praise, carried little weight because it lacked a sufficient nexus to the specific patented features. The Board held all challenged claims unpatentable, and MRI appealed to the Federal Circuit.

The Federal Circuit reviewed the Board's factual findings for substantial evidence and its legal determinations de novo. The court first addressed whether the prior art disclosed the 'constricted convection plate.' Regarding the Na reference, the Board found that it taught an embodiment where the bottom plate had no through-holes, which satisfied the claim limitation. The court held that substantial evidence supported this finding, noting that Na's specification explicitly stated that through-holes 'may be formed only in the first to fourth sidewalls,' implying an embodiment without holes in the bottom plate was disclosed. The court also affirmed the finding regarding the Kim reference, which described a shield cover that could be formed in diverse shapes to efficiently guide airflow. The court rejected MRI's argument that 'guiding' and 'constricting' are distinct concepts, finding that a reasonable factfinder could conclude the shield cover constricted airflow. Second, the court addressed MRI's claim that the Board was internally inconsistent for relying on a Na embodiment without holes for one claim and an embodiment with holes for another. The court found this premise incorrect, as the Board had rejected MRI's arguments that a plate with holes could not define a constricted channel, meaning the Board did not limit its finding to only the no-hole embodiment. Finally, the court upheld the Board's decision to give little weight to objective indicia. The court explained that for evidence of commercial success to carry weight, there must be a nexus between the success and the claimed invention. Because the Samsung products embodying the cooling system also contained unclaimed electronic display features, and MRI failed to show those features were insignificant, the presumption of nexus did not apply. Furthermore, the Board found credible evidence that Samsung designed its products before tearing down MRI's product, negating the argument that copying drove the success.

The challenged patent claims remain invalid, leaving Manufacturing Resources International without enforceable rights against Samsung Electronics Co. for the accused cooling systems. The decision reinforces the Federal Circuit's deference to the PTO's factual findings in IPR proceedings and clarifies that patent owners must rigorously demonstrate a nexus between commercial success and the specific claimed features, particularly when the accused products contain significant unclaimed elements.

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