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Smart Summary

Factual and Procedural Background

This appeal arises from the U.S. Patent and Trademark Office Board of Patent Appeals and Interferences' ("Board") decision affirming the final rejection of the sole claim of appellants' design patent application for a grooved femoral hip stem prosthesis. The claim was rejected as unpatentable under 35 U.S.C. § 171 on the grounds that the design constituted non-statutory subject matter because it was not visible in its normal use. The prosthesis is a metallic implant surgically implanted into a patient's femur where it remains indefinitely and is not visible to the naked eye after implantation. However, the design is visible and displayed during commercial life stages such as advertising and trade shows. The Board adopted a per se rule that designs for articles not visible in their final use are non-statutory, even if visible at other times. The court reviews this rejection on appeal.

Legal Issues Presented

  1. Whether a design for an article that is not visible in its final use but is visible during other stages of its commercial life constitutes statutory subject matter under 35 U.S.C. § 171.
  2. Whether the Board correctly applied a per se rule that excludes designs for articles hidden from view in their normal and intended use from patent protection.
  3. Whether the issue of the design's functionality was properly before the court on appeal.

Arguments of the Parties

Appellants' Arguments

  • The design is not purely functional because a prosthetic implant could have the same mechanical features but a different visual appearance.
  • The visual appearance of the prosthesis is observed by potential and actual purchasers, including surgeons and hospital personnel, through advertisements and displays at trade shows, thus the design is visible during normal use.

Appellee's Arguments

  • The design is unpatentable because the prosthesis is concealed in its normal use inside a patient's body and is devised to satisfy purely structural and mechanical requirements.
  • "Normal use" should be limited to the ordinary functioning of the article, excluding sale, display, replacement, or repair, which are not integral to its function or purpose.
  • The Board adopted a per se rule that designs for articles hidden in their normal use are not proper subject matter for design patents.
  • The issue of functionality was raised initially but was not included in the final rejection and thus is not properly before the court.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
In re Cornwall, 230 F.2d 457 (CCPA 1956) Patentability of a design cannot be based on elements concealed in the normal use of the device. The court cited Cornwall to support the general rule that designs for concealed articles in normal use are presumed non-ornamental but noted this rule is not absolute.
In re Stevens, 173 F.2d 1015 (CCPA 1949) Articles that are concealed or obscure in normal and intended use are not proper subjects for design patents. The court relied on Stevens to frame the issue of whether the hip stem prosthesis is "always concealed" in normal and intended use, rejecting a strict per se rule.
Gorham Co. v. White, 81 U.S. (14 Wall.) 511 (1871) Designs that give new and original appearances to manufactured articles may enhance salable value and support patent protection. The court invoked Gorham Co. to emphasize that design patents may protect appearances that influence commercial value, including during sale and display.
In re Bush, 296 F.2d 491 (CCPA 1961) Final rejection by the examiner constitutes the "decision" for purposes of judicial review under 37 C.F.R. § 1.196(a). The court used Bush to determine that only grounds stated in the examiner's final rejection are before the court, excluding functionality here.
In re Zahn, 617 F.2d 261 (CCPA 1980) The court of review does not pass on issues not raised before it. The court cited Zahn to justify declining to address the functionality issue not included in the final rejection.

Court's Reasoning and Analysis

The court first resolved that the issue of functionality was not properly before it because the examiner's final rejection did not include functionality as a ground, and thus it could not be incorporated into the Board's decision under 37 C.F.R. § 1.196(a). Therefore, the court limited its review to the visibility and ornamentality issues under 35 U.S.C. § 171.

The court acknowledged established precedent that designs for articles concealed in their normal and intended use are generally presumed non-ornamental. However, it rejected the Board's per se rule that an article not visible in its final use is categorically non-statutory subject matter. Instead, the court held that "normal and intended use" encompasses the entire commercial life of an article starting after manufacture or assembly and ending with its ultimate disposal.

The court emphasized that occasions such as sale, display, and advertising are integral parts of an article's commercial life and may be considered normal uses for determining ornamentality. It reasoned that design patents protect appearances that enhance salable value, and visibility during these stages can demonstrate ornamentality, even if the article is concealed in its final use.

Applying this reasoning to the hip stem prosthesis, the court found that the evidence of visibility through advertisements and trade shows was relevant and had been improperly disregarded by the Board. The Board's presumption that doctors select implants solely on functional grounds was deemed inappropriate. Accordingly, the court reversed the Board's decision and remanded for further proceedings consistent with this analysis.

Holding and Implications

The court's final decision is REVERSED and REMANDED.

This ruling directly affects the appellants by overturning the rejection of their design patent claim and requires the Board to reconsider the claim without applying a per se rule excluding designs not visible in their final use. The decision clarifies that visibility during the article's commercial life, including sale and display, is relevant to ornamentality under 35 U.S.C. § 171. No new binding precedent was established beyond this clarification, and the case is remanded for further consideration consistent with the court's analysis.

IN RE JOHN D. WEBB, JR., ROY Y. HORI, AND GEORGE E. SIMPSON.

CLEVENGER, Circuit Judge.

This is an appeal from a decision of the U.S. Patent and Trademark Office Board of Patent Appeals and Interferences ("Board") affirming the final rejection of the sole claim of appellants' ("Webb") U.S. Design Patent Application Serial No. 833,470. The claim for "[t]he ornamental design for a grooved femoral hip stem prosthesis as shown and described," was "rejected as being unpatentable under 35 U.S.C. § 171 as being directed to non-statutory subject matter." The design can be appreciated from Figure 2 of the application reproduced below.

The Board affirmed the Examiner's holding that the design, "clearly not intended to be visible in actual use," "is not proper subject matter under 35 U.S.C. § 171." The Board's decision creates a per se rule that a design for an article which will not be visible in the final use for which the article was created is non-statutory subject matter even if the design is observed at some stage of the article's commercial life. We reverse and remand.

I

Hip stem prostheses of the design invented by Webb are metallic implants that are generally used by orthopedic surgeons to supplant the functioning of a diseased or broken femur, near the hip, where the femur is joined to the pelvis. According to Webb, and not disputed by the Patent and Trademark Office ("PTO"), surgeons are made aware of differing brands and types of prostheses through advertisements in professional journals and through trade shows, where the prostheses themselves are displayed. Advertisements that were put in the record prominently and visually display the features of the prostheses. Furthermore, the applicant's agent submitted that "an implant's appearance is observed by potential and actual purchasers, surgeons, nurses, operating room staff, and other hospital personnel." After purchase, the prosthesis is surgically implanted into a patient's body where the implant is to remain indefinitely. Neither party disputes that, after implantation, the prosthesis is no longer visible to the naked eye.

II

In the Initial Office Action, the Examiner rejected the claim "under 35 U.S.C. § 171 for the reason that the instant article is believed to be devoid of ornamentality, as comprehended by the statute. Articles of this type are not only completely hidden in use, but are devised to satisfy purely structural and mechanical requirements as well." The Examiner thus found the article to be unpatentable subject matter for two reasons: because it was purely functional and because it was concealed in normal use. In reply, Webb argued that the design was not purely functional since a "prosthetic implant could utilize the mechanical/utilitarian features/concepts . . . and have a totally different visual appearance." Webb also argued that the "visual appearance can certainly draw attention to a particular implant at a trade show or in advertising" and, therefore, the design was visible during normal use.

In the Final Office Action, the Examiner stated:

Applicant argues that, while the design is functional in nature, it is still ornamental. While this may be true, it has been held that articles which are hidden in use are not proper subject matter for design patents.

. . . .

. . . There is not sound reason or logic for "normal use" to include the repair, service, replacement, sale or display of the article which incorporates the claimed design. While such occasions are of course "normal" in the sense of commonplace or routine occasions of an item's use, for patent purposes "normal use" should be limited to the ordinary functioning for which it was designed, not incidents in the article's life which are not integral to its function or purpose. Items are not designed for sale, display, replacement or repair.

The Board did not address the issue of functionality of the claimed design that had been raised in the Examiner's Initial Action. It affirmed the Examiner's final rejection of the claim as unpatentable subject matter because the article was not visible in what the Board considered to be its normal or intended use.

III

As a preliminary matter, we must determine whether the issue of the design's functionality is properly before this Court as suggested by the PTO in its brief and as strongly asserted at oral argument. The PTO cites 37 C.F.R. § 1.196(a) for the proposition that the "decision" of an examiner is incorporated into the "decision" of the Board which we may review. Subsection 1.196(a), in pertinent part, reads:

The affirmance [by the Board] of the rejection of a claim on any of the grounds specified constitutes a general affirmance of the decision of the examiner on that claim, except as to any ground specifically reversed.

Assuming that the de jure incorporation effected by § 1.196(a) is a proper exercise of the Commissioner's regulatory authority, 35 U.S.C. § 6(a) (1988), we must first decide what constitutes a "decision" of an examiner for the purposes of § 1.196(a) and, thereafter, whether the "decision" of the Examiner in this case included the grounds of functionality. The Examiner initially rejected Webb's design claim as functional, but that rejection was not reiterated when the rejection was made final. The regulations require that, "[i]n making such final rejection, the examiner shall repeat or state all grounds of rejection then considered applicable in the case, clearly stating the reasons therefor." 37 C.F.R. § 1.113(b). It follows, then, that an examiner's final rejection, which precipitates the statutory right to appeal to the Board, 35 U.S.C. § 134 (1988), constitutes the "decision" of an examiner for purposes of § 1.196(a). See In re Bush, 296 F.2d 491, 492, 49 CCPA 752, 131 USPQ 263, 264 (1961).

The Examiner's final rejection did not clearly specify functionality as a ground for rejection. We therefore read the Examiner's decision to have accepted Webb's argument, namely that the article in question did not warrant rejection on functionality grounds. Since a rejection for functionality was not a part of the decision appealed to the Board by Webb, that ground cannot be incorporated into the Board's decision by operation of 37 C.F.R. § 1.196(a). Consequently, the issue of functionality is not before us. "[W]e can express no opinion because we are a court of review and do not pass on issues not raised . . . ." In re Zahn, 617 F.2d 261, 269, 204 USPQ 988, 996 (CCPA 1980).

IV

The issuance of design patents is limited by statute to designs that are ornamental. 35 U.S.C. § 171 (1988). Our predecessor court has affirmed the rejection of design applications that cannot be perceived in their normal and intended uses. For instance, the Court of Customs and Patent Appeals affirmed the rejection of a design claim for a vent tube placed in the wall of a frame house, stating that "[i]t is well-settled that patentability of a design cannot be based on elements which are concealed in the normal use of the device to which the design is applied." In re Cornwall, 230 F.2d 457, 459, 43 CCPA 824, 826, 109 USPQ 57, 58 (1956). Even earlier, that court affirmed the rejection of a design claim for a vacuum cleaner brush. In re Stevens, 173 F.2d 1015, 36 CCPA 1017, 81 USPQ 362 (1949). There the court noted:

[A]rticles which are concealed or obscure are not proper subjects for design patents, since their appearance cannot be a matter of concern. . . . Almost every article is visible when it is made and while it is being applied to the position in which it is to be used. Those special circumstances, however, do not justify the granting of a design patent on an article such as here under consideration which is always concealed in its normal and intended use.

Id. at 1016, 36 CCPA at 1019, 81 USPQ at 363 (emphasis added).

We read those cases to establish a reasonable general rule that presumes the absence of ornamentality when an article may not be observed. This is a sound rule of thumb, but it is not dispositive. See Larson v. Classic Corp., 683 F. Supp. 1202, 1202-1203, 7 USPQ2d 1747, 1747 (N.D.Ill. 1988). In each case, the inquiry must extend to whether at some point in the life of the article an occasion (or occasions) arises when the appearance of the article becomes a "matter of concern."

Here, we read the Board's decision to have established a per se rule under § 171 that if an article is hidden from the human eye when it arrives at the final use of its functional life, a design upon that article cannot be ornamental. The rule in Stevens does not compel the Board's decision. Instead, Stevens instructs us to decide whether the "article such as here under consideration" — a hip stem implant — "is always concealed in its normal and intended use." The issue before us, then, is whether "normal and intended use" of these prosthetic devices is confined to their final use.

V

Although we agree that "normal and intended use" excludes the time during which the article is manufactured or assembled, it does not follow that evidence that an article is visible at other times is legally irrelevant to ascertaining whether the article is ornamental for purposes of § 171. Contrary to the reasoning of the Examiner in this case, articles are designed for sale and display, and such occasions are normal uses of an article for purposes of § 171. The likelihood that articles would be observed during occasions of display or sale could have a substantial influence on the design or ornamentality of the article. "The law manifestly contemplates that giving certain new and original appearances to a manufactured article may enhance its salable value. . . ." Gorham Co. v. White, 81 U.S. (14 Wall.) 511, 525, 20 L.Ed. 731 (1871).

In short, we construe the "normal and intended use" of an article to be a period in the article's life, beginning after completion of manufacture or assembly and ending with the ultimate destruction, loss, or disappearance of the article. Although the period includes all commercial uses of the article prior to its ultimate destination, only the facts of specific cases will establish whether during that period the article's design can be observed in such a manner as to demonstrate its ornamentality.

It is possible, as in Stevens, that although an article may be sold as a replacement item, its appearance might not be of any concern to the purchaser during the process of sale. Indeed, many replacement items, including vacuum cleaner brushes, are sold by replacement or order number, or they are noticed during sale only to assess functionality. In such circumstances, the PTO may properly conclude that an application provides no evidence that there is a period in the commercial life of a particular design when its ornamentality may be a matter of concern. However, in other cases, the applicant may be able to prove to the PTO that the article's design is a "matter of concern" because of the nature of its visibility at some point between its manufacture or assembly and its ultimate use. Many commercial items, such as colorful and representational vitamin tablets, or caskets, have designs clearly intended to be noticed during the process of sale and equally clearly intended to be completely hidden from view in the final use. Here, for example, there was ample evidence that the features of the device were displayed in advertisements and in displays at trade shows. That evidence was disregarded by the Board because, in its view, doctors should select implants solely for their functional characteristics, not their design. It is not the task of the Board to make such presumptions.

The decision of the Board is

REVERSED and the case is REMANDED.

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IN RE WEBB
(Oct 11, 1990)