Mattel, Inc. v. Gilbert P. Hyatt, Mattel, Inc. v. Gilbert P. Hyatt

Mattel, Inc. (Mattel) initiated these actions, seeking a declaratory judgment of invalidity with respect to United States Letters Patent 4,016,540 (the ’540 patent), issued to Gilbert P. Hyatt, and 4,038,640 (the ’640 patent), issued to Gilbert P. Hyatt, among others, and assigned to Micro Computer, Inc. (MCI). Hyatt counterclaimed, alleging that certain handheld electronic games manufactured by Mattel infringed claims 1-4, 6, 7, and 9-15 of the ’640 patent, as well as claims 1, 2, 5-7, 9, 12-14, 16, 19 and 20 of the ’540 patent. In addition, Hyatt filed several counterclaims based upon state law, including a count alleging unfair competition.

The District Court, prior to trial, dismissed all counterclaims except those alleging patent infringement. After trial on the issues of invalidity, the District Court entered findings of fact and conclusions of law holding all claims of the ’640 patent invalid and not infringed, and each of the contested claims of the ’540 patent invalid and not infringed.

On appeal, Hyatt challenges the District Court’s determinations of obviousness with respect to all contested claims of the ’540 and ’640 patents, and of an invalidating prior use or sale…