Federal Circuit reverses Disney patent ruling

The US Court of Appeals for the Federal Circuit has reversed an earlier injunction after questioning the validity of a Disney-owned patent that covers the effect of flames in artificial candles.

Yesterday, February 29, the federal circuit sent a dispute between Liown Electronics and Luminara Worldwide back to the US District Court for the District of Minnesota after vacating the court’s preliminary injunction order.

The dispute centres on claims asserted by Luminara, which describes itself as a “real flame-effect designer,” that Liown infringed US patent number 8,696,166—owned by Disney.

The candles that the patent covers are used in Disney’s Haunted Mansion ride at its Disneyland theme park.

Liown challenged whether Luminara had a right to sue, but the federal circuit said its right was granted under the terms of a 2012 agreement Luminara made with Disney.

The agreement allows Luminara to sue parties for infringement without enjoining Disney. Disney is not named in the lawsuit.

The district court granted a preliminary injunction in 2015 that prohibited Liown from selling products that infringe the ‘166 patent.

But in its appeal against the ruling, Liown said Disney was required to be enjoined in the lawsuit.

The three-judge panel on the federal circuit rejected this argument, but conceded that patent ‘166 could be invalid on the grounds that it was anticipated.

The case has been sent back to the district court for further proceedings.