Magēmā Technology LLC v. Phillips 66, Phillips 66 Co., Wrb Refining Lp

United States Court of Appeals
for the Federal Circuit
______________________
MAGĒMĀ TECHNOLOGY LLC,
Plaintiff-Appellant
v.
PHILLIPS 66, PHILLIPS 66 CO., WRB REFINING
LP,
Defendants-Appellees
______________________
2024-1342
______________________
Appeal from the United States District Court for the
Southern District of Texas in No. 4:20-cv-02444, Senior
Judge Simeon Timothy Lake, III.
______________________
Decided: September 8, 2025
______________________
J AMIE HERBERT MCD OLE, Winstead PC, Dallas, TX, ar-
gued for plaintiff-appellant. Also represented by MIRANDA
Y. J ONES , MICHAEL K ARSON; R OBERT L. G REEN, J OHN R.
K EVILLE, Sheppard, Mullin, Richter & Hampton LLP, Hou-
ston, TX.
D ENISE D RAKE , Gibbs & Bruns, Houston, TX, argued
for defendants-appellees. Also represented by CHARLES
ROSSON; REAGAN M. B ROWN, CHARLES BRUCE WALKER , J R.,
Norton Rose Fulbright US LLP, Houston, TX.
______________________
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 2
Before M OORE, Chief Judge, STOLL , Circuit Judge, and
BUMB, Chief District Judge.1
BUMB, Chief District Judge.
On the eve of trial, Plaintiff Magēmā Technology LLC
(“Magēmā”) learned that Defendants Phillips 66, Phillips
66 Co., and WRB Refining LP (together, “Phillips”) in-
tended to introduce a new theory of noninfringement. Phil-
lips’ new theory was that Magēmā could not prove
infringement without access to certain of Phillips’ test re-
sults. But Magēmā did not have access to those test results
because Phillips had successfully argued during discovery
that it would be too dangerous to obtain those test results.
Magēmā cried foul.
The District Court overruled Magēmā’s objection to the
introduction of Phillips’ noninfringement theory and the
jury returned a verdict of noninfringement on Claims 1 and
5 of U.S. Patent No. 10,308,884. The District Court denied
Magēmā’s motion for a new trial but found that the intro-
duction of Phillips’ noninfringement theory was both “im-
proper and prejudicial.” Nonetheless, it determined that
Phillips’ persistent injection of its noninfringement theory
throughout the trial was harmless.
We disagree. Because we cannot discern the basis for
the jury’s noninfringement verdict and are not satisfied
that the verdict was uninfected by Phillips’ improper and
prejudicial noninfringement theory, we reverse the District
Court’s order denying Magēmā a new trial and remand for
a new trial. We also reject Phillips’ alternative grounds for
affirmance and adopt the District Court’s claim construc-
tion.
1 Honorable Renée Marie Bumb, Chief Judge,
United States District Court for the District of New Jersey,
sitting by designation.
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 3
BACKGROUND
I
Residual heavy marine fuel oil (“HMFO”) is used to
power large, ocean-going cargo ships and must meet an in-
ternationally recognized standard known as International
Organization for Standardization 8217:2017 (“ISO 8217”).
Table 2 of ISO 8217 sets forth limits for certain physical
properties of HMFOs.2
Two physical properties of ISO 8217 Table 2 are rele-
vant here. First, ISO 8217 Table 2 requires the flashpoint
for HMFOs to be at least 60 degrees Celsius (140 degrees
Fahrenheit). Second, the sulfur content for ISO 8217 Table
2 HMFOs cannot exceed the specified maximum imposed
by Annex VI to the International Maritime Organization’s
(“IMO”) International Convention for the Prevention of
Pollution from Ships.3
Before 2016, the IMO-imposed sulfur cap on HMFOs
was 3.50 % sulfur content by weight. But in late 2016—
concerned about high sulfur dioxide emissions from ocean-
going ships powered on HMFOs—the IMO announced that
it would be reducing the sulfur cap to a more ambitious
0.50 % sulfur content by weight (the “IMO Sulfur Cap”).
Enter Magēmā (pronounced “Maggie Mae,” like the
Beatles song), a company that patented a solution to desul-
furize HMFO to bring it into compliance with the IMO
2 ISO 8217 Table 1 sets forth limits for certain phys-
ical properties of a different, lighter kind of marine fuel
called distillate marine fuel.
3 Congress codified Annex VI in the Act to Prevent
Pollution from Ships (“APPS”). 33 U.S.C. §§ 1905–1915.
The U.S. Environmental Protection Agency promulgated
regulations to APPS, which incorporate by reference the
full text of Annex VI. See 40 C.F.R. § 1043.100(b)(1).
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 4
Sulfur Cap. Its patented technology, U.S. Patent No.
10,308,884 (“the ’884 Patent”) teaches first formulating a
high-sulfur HMFO compliant with ISO 8217 with a sulfur
content by weight greater than 0.50 %—in other words, an
HMFO with a sulfur content higher than the IMO Sulfur
Cap but otherwise compliant with ISO 8217 Table 2 prop-
erties. The ’884 Patent then teaches exposing that fuel to
hydrogen at elevated temperatures and pressures in the
presence of a catalyst to promote the chemical change of
the high-sulfur HMFO into a low-sulfur HMFO that would
comply with the IMO Sulfur Cap. This process of desulfu-
rizing through hydrogen exposure is called hydropro-
cessing or hydrotreating.
Specifically, Claims 1 and 5 of the ’884 Patent teach:
1. A low sulfur heavy marine fuel oil, consisting
essentially of a 100% hydroprocessed high sulfur
heavy marine fuel oil, wherein prior to hydropro-
cessing the high sulfur heavy marine fuel oil is com-
pliant with ISO 8217:2017 and is of merchantable
quality as a residual marine fuel oil but has a sul-
fur content (ISO 14596 or ISO 8754) greater than
0.5% wt. and wherein the low sulfur heavy marine
fuel oil is compliant with ISO 8217:2017 and is of
merchantable quality as a residual marine fuel oil
and has a sulfur content (ISO 14596 or ISO 8754)
less than 0.5 wt %.
5. A low sulfur hydrocarbon fuel composition
consisting essentially of: a majority by volume of a
100 % hydroprocessed high sulfur residual marine
fuel oil and a minority by volume of Diluent Mate-
rials, wherein prior to hydroprocessing the high
sulfur heavy marine fuel oil is compliant with ISO
8217:2017 but has a sulfur content (ISO 14596 or
ISO8754) greater than 0.5 wt %; and wherein the
low sulfur heavy marine fuel composition is compli-
ant with ISO 8217:2017 and has a sulfur content
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 5
(ISO 14596 or ISO 8754) less than 0.5 wt %; and
wherein the Diluent Materials are selected from
the group consisting of: hydrocarbon materials;
non–hydrocarbon materials; and, solid materials
and combinations thereof.
’884 Patent, col. 25, ll. 27–36, col. 25–26, ll. 56–7 (emphases
added).
Claim 1 of the ’884 Patent imposes claim limitations
that, “prior to hydroprocessing,” the high sulfur HMFO
must be “compliant” with the physical property limitations
set forth in ISO 8217 and must be of “merchantable” qual-
ity. Claim 5 requires the same, but the fuel need not be of
“merchantable” quality.
After filing a provisional patent application, Magēmā
began to market its technology to different refineries, in-
cluding Phillips. Magēmā and Phillips met in 2017 and
2018 to discuss implementing Magēmā’s invention. The
parties never reached a licensing agreement. Unbe-
knownst to Magēmā, however, Phillips was hard at work
making changes to the hydrotreater reactors at its Bayway
Refinery in New Jersey and its Wood River Refinery in Il-
linois to formulate a low-sulfur HMFO from a high-sulfur
HMFO. Later, Phillips publicly announced plans in its in-
vestment materials to improve its hydrotreater reactors to
formulate low-sulfur HMFO from high-sulfur HMFO to
satisfy the IMO Sulfur Cap.
Convinced that Phillips copied its invention, Magēmā
sued Phillips for infringement in the United States District
Court for the Southern District of Texas alleging that Phil-
lips’ products and processes at its Wood River and Bayway
Refineries infringed Claims 1 and 5 of the ’884 Patent,
Claims 1 and 4 of U.S. Patent No. 10,604,709 (“the ’709
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 6
Patent”), as well as claims of U.S. Patent Nos. 10,584,287
and 10,533,141.4
II
A
At claim construction, the parties agreed that the term
“compliant with ISO 8217:2017” should be construed to
mean “meets the bulk physical properties of any of a RMA,
RMB, RMD, RME, RMG, or RMK residual marine fuel as
set forth in Table 2 of the ISO 8217:2017 standard.”
The parties, however, disputed the proper construction
for the term “HMFO.” The District Court adopted
Magēmā’s proposed construction and construed the term,
consistent with its express definition in the ’844 Patent, to
mean “a petroleum product fuel compliant with the ISO
8217:2017 standards for the bulk properties of residual ma-
rine fuels except for the concentration levels of the Envi-
ronmental Contaminates [(i.e., sulfur)].” J.A. 239 (citing
’844 Patent, col. 7, ll. 51–54). Phillips urged the District
Court to adopt a construction limiting HMFO to mean a
fuel containing “process residues” that “do[] not boil or va-
porize even at vacuum conditions.” J.A. 234; ’884 Patent,
col. 1, ll. 28–30 (“HMFO comprises a mixture of process res-
idues—the fractions that don’t boil or vaporize even under
vacuum conditions[.]”). It urged that construction because
the refineries at issue process distillate (as opposed to re-
sidual) marine fuels that have been fully vaporized before
they reach the hydrotreater reactor.5
4 The jury trial involved alleged infringement of only
the ’884 and ’709 patents.
5 Phillips’ witness, however, testified at trial that
Phillips sells its finished, low-sulfur, hydrotreated product
as a residual marine fuel oil.
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 7
But the District Court concluded that Magēmā
properly acted as its own lexicographer by clearly and con-
sistently defining HMFO as an ISO 8217 Table 2 residual
marine fuel, which nowhere requires the fuel to contain
any amount of process residues.
The parties never requested a construction of the terms
“prior to hydroprocessing” and “of merchantable quality.”
B
As noted, ISO 8217 Table 2 requires the flashpoint of
an HMFO to be at least 140 degrees Fahrenheit. And the
’844 Patent contains express claim limitations that the
high-sulfur HMFO must be “compliant with ISO 8217”
“prior to hydroprocessing.” ’884 Patent, col. 25, ll. 29–30,
59–61. That meant that if the flashpoint of the crude oil
feed used to make the high-sulfur HMFO was lower than
140 degrees “prior to hydroprocessing,” Phillips would not
infringe on Magēma’s invention because its refinery feeds
would not be “compliant with ISO 8217.”
So, the parties had to test the feed flashpoint “prior to
hydroprocessing” to determine compliance with ISO 8217.
But the parties hotly disputed where exactly to test flash-
point temperature at Phillips’ Bayway Refinery. Phillips
believed that the proper testing location was somewhere
outside the battery limits (“OSBL”) of the DSU-1 hy-
drotreater reactor at Bayway. It produced testing samples
from that location to Magēmā. But Magēmā wanted to test
flashpoint from a location inside the battery limits (“ISBL”)
of the Bayway DSU-1 hydrotreater reactor, but before the
feed hit the hydrotreater reactor.
Magēmā moved to compel Phillips to produce flash-
point testing data from that location. At the motion to com-
pel hearing before the Magistrate Judge, Phillips argued
that it would be too dangerous to test and produce flash-
point samples ISBL. Besides, Phillips argued, Magēmā did
not need actual testing samples ISBL. That was because,
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 8
Phillips suggested, Magēmā could simply use a generally
accepted formula—the Riazi Formula—to estimate flash-
point temperature ISBL at Bayway using otherwise avail-
able data.
The Magistrate Judge was “not keen on ordering sam-
pling” that was unsafe but acknowledged that Magēmā
needed some way of estimating flashpoint ISBL to meet its
burden of proof. And because Phillips represented that
Magēmā could rely on Riazi Formula estimates to calculate
flashpoint ISBL, the Magistrate Judge denied Magēmā’s
motion to compel.
After the close of discovery and after briefing cross-mo-
tions for summary judgment, it became clear that Phillips,
in fact, had the capability of testing flashpoint ISBL. Re-
markably, and notwithstanding Phillips’ representations
to the Magistrate Judge that it would be too dangerous to
test flashpoint temperature ISBL, Phillips moved to sup-
plement the summary judgment record with evidence of
flashpoint testing from a new sample station it built ISBL.
The District Court denied Phillips’ motion to supple-
ment the summary judgment record. It found that Phillips
“failed to provide a reasonable explanation for [its] failure
to sample” the ISBL feed before the discovery cut-off and
were on notice that Magēmā wanted testing samples from
that location after Magēmā filed its motion to compel. J.A.
25. And it found that belatedly supplementing the sum-
mary judgment record with the newly produced samples
would be “unduly prejudicial” given Phillips’ representa-
tions in opposition to Magēmā’s motion to compel that
Magēmā did not need actual testing samples to prove in-
fringement and could instead use the Riazi Formula to es-
timate flashpoint.
The District Court also denied the remainder of the
cross-motions, in relevant part. It denied Phillips’ motion
for partial summary judgment “declin[ing] [Phillips’] invi-
tation to revise the construction of HMFO to include
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 9
fractions that do not boil or vaporize even under vacuum
conditions.” J.A. 61. And it denied Magēmā’s motion for
partial summary judgment concluding that there was a
genuine issue of disputed fact whether the “Bayway
[h]ydrotreater’s feed is a Table 2 compliant HMFO,” that
is, whether its flashpoint exceeded 140 degrees Fahrenheit
prior to hydroprocessing. J.A. 77. At trial, the jury would
have to decide whether the Riazi Formula estimates calcu-
lated by Magēmā’s expert reliably showed that the flash-
point of the Bayway feed was hotter than 140 degrees
Fahrenheit “prior to hydroprocessing.”
C
Right before jury selection, Magēmā learned that Phil-
lips planned to use a demonstrative slide during opening
statements to show the jury that—despite Phillips’ pre-
trial representations to the contrary—Riazi Formula esti-
mates of flashpoint were insufficient to prove infringement.
Instead, Phillips planned to argue that ISO 8217 requires
actual testing data of Table 2 properties like flashpoint.
Magēmā did not have that testing data because Phillips
said gathering such samples would be too dangerous and
unnecessary given that Magēmā could estimate flashpoint
temperature using the Riazi Formula. And, so, because
Magēmā had no actual testing samples to show that flash-
point ISBL exceeded 140 degrees Fahrenheit, Phillips
planned to argue that Magēmā could not meet its burden
of demonstrating that the Bayway Refinery feedstock was
compliant with ISO 8217.
On the record, Magēmā objected. It recounted the dis-
covery proceedings that took place before the Magistrate
Judge and the District Court’s denial of Phillips’ motion to
supplement the summary judgment record with the late-
produced ISBL testing data. Even as the District Court re-
viewed its summary judgment opinion denying Phillips’
motion to supplement the record with ISBL flashpoint
samples, it overruled the objection stating that it did not
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 10
“understand [Magēmā’s] argument” and that it was “not
going to exclude” Phillips from presenting its actual-testing
theory to the jury during opening statements. J.A. 846
(7:14–17).
Mischief ensued. Despite its earlier assurances to the
Magistrate Judge and to Magēmā that the Riazi Formula
was a sufficient substitute in the absence of actual testing
data, Phillips reneged and told the jury during opening
statements that ISO 8217 “requires the use of actual spec-
ified ISO test procedures to prove compliance with the ISO
8217 specifications” and that the jury would “not find any-
thing” in ISO 8217 “stating, suggesting, or implying that
you can use an estimate to show compliance” and that “[i]f
there’s no compliance, there’s no infringement.” J.A. 855
(99:9–18) (emphases added).
Phillips elicited the same testimony cross-examining
three Magēmā witnesses:
Q. There is nothing in ISO 8217 that says, “Oh, you
can just use an estimate[.]” That’s not in ISO 8217,
is it?
A. There’s no discussion of estimates in ISO 8217
that I’m aware of.
…
Q. There is nothing in ISO 8217 that says it’s okay
to use an estimate as a substitute for [actual test-
ing data]. We’re not going to see that in [ISO 8217],
are we?
A. Well, no, but Phillips told us it was okay to use–
Q. You are not going to see that in ISO 8217, are
you?
A. No, you’re not.
J.A. 894. (147:18–22, 148:8–17) (Cross-Examination of Mi-
chael Moore).
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 11
Q. It’s true, Mr. Klussmann, that there is nothing
in ISO 8217 or these test methods or reference …
that say that estimates are permitted to determine
compliance [with ISO 8217], right?
…
A. Nothing in the spec says that estimates to be
used.
J.A. 953 (134:4–14) (Cross-Examination of Bert
Klussmann).
Q. But you now know that ISO 8217 does not allow
for any estimates for flash point to meet the spec,
correct?
A. That’s incorrect.
…
Q. Is there anything … in [ISO 8217] that says you
can use estimates of flash point?
…
A. No.
J.A. 1010 (114:7–9, 115:12–24) (Cross-Examination of Dr.
James Speight).
Eventually, Magēmā filed a motion for a curative in-
struction, pleading with the District Court to instruct the
jury that the Riazi Formla could, in fact, be used to calcu-
late flashpoint in the absence of testing samples which
Phillips said were too dangerous to collect. And it asked the
District Court to admonish Phillips to refrain from arguing
to the jury that Magēmā failed to obtain or analyze actual
testing samples when it was Phillips who told Magēmā and
the Magistrate Judge that obtaining those very same sam-
ples would be both dangerous and unnecessary.
Although the District Court appeared to not “under-
stand [Magēmā’s] argument” before opening statements,
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 12
J.A. 846 (7:14–17), it did after Magēmā briefed its motion
for a curative instruction. In response to Phillips confirm-
ing its position that the ISO 8217 standard requires actual
testing rather than estimates, the District Court ques-
tioned “how in the world” Magēmā could possibly satisfy
that burden when it was Phillips who “didn’t produce tests
or provide a test method that could be used by Magēmā be-
fore the discovery cutoff.” J.A. 1065 (241:15–22).
Nevertheless, the District Court denied Magēmā’s mo-
tion for a curative instruction. It suggested that the “prob-
lem” could be “solve[d]” by Magēmā arguing to the jury that
no actual testing was done at its preferred ISBL location,
and in response, Phillips could argue that the Riazi For-
mula estimates prepared by Magēmā’s expert were unreli-
able. J.A. 1065 (242:17–23). And it determined that the
jury did not need a curative instruction because it was un-
likely to remember “a three-minute discussion” about ISO
8217 requiring actual testing. J.A. 1065 (243:1–4). The Dis-
trict Court also denied Magēmā the opportunity to put in
context for the jury why it was using the Riazi Formula
instead of actual testing data. J.A. 1064 (239:23–25) (“I
don’t want to hear the words ‘Phillips has not produced test
results[.]’”). The District Court warned Phillips, however,
that it would be “attuned [to any] attempt from any crea-
tive lawyer to get around” its instructions not to argue to
the jury that the ISO 8217 standard requires actual test-
ing. J.A. 1065 (243:5–9).
Mischief persisted. Flouting the District Court’s ex-
plicit warning, Phillips argued to the jury at closing argu-
ments that it should find no infringement because there
was “no actual test data that shows compliance” with the
ISO 8217 standard. J.A. 1086 (108:12–15) (“[F]olks, you
don’t get to Question 3 or Question 4 [regarding amount of
damages] when you answer ‘no’ to Questions 1 and 2 [re-
garding infringement]. And you answer ‘no’ because that’s
consistent with there’s no actual test data that shows com-
pliance, none.”).
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 13
On a general verdict form that asked the jury to answer
“yes” or no” to whether Magēmā proved infringement by a
preponderance of the evidence, the jury returned a nonin-
fringement verdict on all claims of both the ’884 Patent and
’709 Patent. The general verdict form did not specify the
basis of the jury’s noninfringement finding or ask special
interrogatories requiring the jury to find whether Magēmā
satisfied each claim limitation.
Magēmā moved for a new trial which the District Court
denied. The District Court acknowledged that Phillips’ ac-
tual-testing arguments were both “improper and prejudi-
cial.” J.A. 111. It explained that it was Phillips who argued
that it was too dangerous to gather actual testing data and
that, in any event, Magēmā did not need flashpoint testing
samples because it could meet its infringement burden by
using Riazi Formula estimates calculated from otherwise
available data.
But the District Court determined Phillips’ “improper
and prejudicial” actual-testing theory argued to the jury to
be harmless error that did not affect the outcome of the
trial. That was so, according to the District Court, because
the jury could have found that the other two remaining
claim limitations—that the high-sulfur fuel being treated
had to be compliant with ISO 8217 “prior to hydropro-
cessing” and that the fuel had to be “merchantable”—were
not satisfied. With respect to the “prior to hydroprocessing”
limitation, the District Court found that Phillips im-
peached Magēmā’s expert regarding the correct place to de-
termine the Bayway feedstock’s compliance with ISO 8217.
And with respect to the “merchantability” limitation, the
District Court found that Phillips “presented undisputed
evidence that the Bayway feed was not merchantable be-
cause its viscosity was too low.” J.A. 112–13.
Magēmā filed the instant appeal, which pertains only
to the Bayway refinery and the ’884 patent. We have juris-
diction under 28 U.S.C. § 1295(a)(1).
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 14
D ISCUSSION
I
Magēmā asks us to overturn the District Court’s post-
trial order denying its motion for a new trial related to the
jury’s noninfringement verdict at Phillips’ Bayway Refin-
ery on Claims 1 and 5 of the ’844 Patent. We review the
denial of a motion for a new trial under regional circuit
precedent. Freshub, Inc. v. Amazon.com, Inc., 93 F.4th
1244, 1249 (Fed. Cir. 2024). Under Fifth Circuit law, we
review the denial of a motion for a new trial for an abuse of
discretion. Encompass Off. Sols., Inc. v. Louisiana Health
Serv. & Indem. Co., 919 F.3d 266, 273 (5th Cir. 2019).
A
Phillips argues that Magēmā did not timely object to
Phillips’ “improper and prejudicial” actual-testing argu-
ments.
We disagree. The District Court made a factual finding
in its post-trial opinion denying Magēmā’s motion for a new
trial that Magēmā sufficiently preserved its objection to
Phillips’ actual-testing noninfringement theory. J.A. 111
(“Magēmā objected to Defendants’ argument that ‘compli-
ant with ISO 8217:2017’ could only be shown by testing of
actual samples throughout the course of this litigation.”).
Phillips fails to address or show any error in the District
Court’s finding. Nor can it.
On the first day of trial, prior to the start of jury selec-
tion, Magēmā objected to Phillips laying the seed for its ac-
tual-testing noninfringement theory during opening
arguments. The District Court stated that it was “not going
to exclude” Phillips from making such statements during
opening arguments. J.A. 846 (7:14–17). Having overruled
Magēmā’s objection, Phillips was free to ring the actual-
testing bell to the jury at opening arguments, which it did.
See J.A. 855 (99:9–12) (“[ISO 8217] requires the use of ac-
tual specified [] test procedures to prove compliance with
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 15
the ISO 8217 specifications.”); id. (99:13–18) (“You will not
find anything in [ISO 8217] stating, suggesting, or imply-
ing that you can use an estimate to show compliance. If
there’s no compliance, there’s no infringement.”). There
would be no point in objecting again.
Magēmā tried to unring the actual-testing bell by filing
a motion for a curative instruction at the District Court’s
invitation. J.A. 957 (150:4–151:6) (inviting Magēmā to “file
something tomorrow morning” opposing Phillips’ actual-
testing arguments). The District Court denied that motion
as well as Magēmā’s motion for a new trial, finding no issue
with the preservation of Magēmā’s objection that it made
“throughout … this litigation.” J.A. 111.
So, Magēmā’s objection was properly preserved, and we
will review it under an abuse of discretion standard.6
B
A district court abuses its discretion in denying a mo-
tion for a new trial if it is “reasonably clear that prejudicial
error has crept into the record or that substantial justice
has not been done[.]” Streber v. Hunter, 221 F.3d 701, 736
(5th Cir. 2000). That burden “rests on the party seeking the
new trial.” Id. An error is prejudicial, rather than harm-
less, if it affects a party’s substantial rights, in other words,
if it affects the outcome of the proceeding. Harris v. FedEx
Corp. Servs., Inc., 92 F.4th 286, 303 (5th Cir. 2024), cert.
denied, 145 S. Ct. 168 (2024). “‘If the court is sure, after
reviewing the entire record, that the error did not influence
6 Phillips also argues that Magēmā waived its objec-
tion by “eliciting actual-testing testimony” from its own
witness. Response Br. at 21. But having objected to the ac-
tual testing-theory, which was overruled by the District
Court, Magēmā was merely playing by the rules. It was not
required to leave Phillips’ argument unaddressed or unan-
swered in order to preserve its objection.
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 16
the jury or had but a very slight effect on its verdict,’ then
a party’s substantial rights have not been affected.” Id.
(quoting Kelly v. Boeing Petroleum Servs., Inc., 61 F.3d 350,
361 (5th Cir. 1995)).
1
Phillips does not meaningfully dispute that its actual-
testing arguments were, in the words of the District Court,
both “improper and prejudicial.” J.A. 111. How could it?
Phillips sandbagged Magēmā right before trial with a bait-
and-switch, announcing that it intended to present evi-
dence and argue to the jury that compliance with ISO 8217
requires actual testing data. Magēmā did not have the test-
ing data from the location ISBL it argued compliance with
ISO 8217 should be determined because Phillips had rep-
resented that it was too dangerous to collect test samples
from that location and, besides, those samples were unnec-
essary to prove infringement because Magēmā could use
Riazi Formula estimates.
Therefore, we agree with the District Court that Phil-
lips’ argument to the jury that Magēmā needed actual test
samples to prove infringement was both “improper and
prejudicial.” It should have never been argued to the jury.
But it was.
“[W]hen a case is submitted to the jury on a general
verdict, the failure of evidence or a legal mistake under one
theory of the case generally requires reversal for a new
trial because the reviewing court cannot determine
whether the jury based its verdict on a sound or unsound
theory.” Muth v. Ford Motor Co., 461 F.3d 557, 564 (5th
Cir. 2006) (quoting Pan Eastern Exploration Co. v. Hufo
Oils, 855 F.2d 1106, 1123 (5th Cir. 1988)); Jamison Co.,
Inc. v. Westvaco Corp., 530 F.2d 34, 37 (5th Cir. 1976); see
also Network-1 Techs., Inc. v. Hewlett-Packard Co., 981
F.3d 1015, 1025 (Fed. Cir. 2020) (applying Fifth Circuit law
and finding that because the general verdict form did not
indicate a basis for the jury’s decision and evidence showed
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 17
defendant relied on an erroneous claim construction to ar-
gue noninfringement, plaintiff was prejudiced by the erro-
neous claim construction). We may only uphold a jury’s
general verdict with an erroneously submitted theory un-
der a “harmless error gloss” if we are “totally satisfied” or
“reasonably certain” that the verdict was not based on the
erroneously submitted theory. Muth, 461 F.3d at 564–65
(quoting Baun v. Flynt, 731 F.2d 1205, 1206 (5th Cir.
1984)).
Here, the jury verdict form read:
QUESTION 1: Bayway Refinery Infringement
Did Magēmā prove by a preponderance of the
evidence that the Bayway DSU-1 hydrotreater pro-
cess or the DSU-1 product infringed any of the fol-
lowing claims[?]
Answer “Yes” or “No” for each of the listed
claims in the spaced provided below.
“Yes” is a finding for Magēmā. “No” is a
finding for Phillips 66.
’844 Patent
Claim 1 ______
Claim 5 ______
J.A. 80. The jury wrote “no” in both blank spaces.
And therein lies the problem. We cannot tell why the
jury answered “no.” See Jamison, 530 F.2d at 37 (remand
is required when the reviewing court “cannot discover the
exact basis” of the jury’s verdict because “the verdict is ca-
pable of comprehending any one of a number of theories of
liability”).
The jury could have permissibly found that Magēmā
did not meet its infringement burden because the feed was
not merchantable prior to hydroprocessing. The jury could
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 18
have also permissibly found that Magēmā did not meet its
infringement burden because compliance with ISO 8217 re-
quires actual testing but that the proper place to test com-
pliance with ISO 8217 prior to hydroprocessing was OSBL
of the hydrotreater reactor and, so, it did not matter that
Magēmā never received actual testing samples from the lo-
cation prior to hydroprocessing ISBL that it argued was
the relevant location to measure flashpoint.
But the jury could have also impermissibly found that
Magēmā did not meet its infringement burden because it
believed that compliance with ISO 8217 required actual
testing as Phillips repeatedly urged. Thus, Phillips’ im-
proper actual-testing theory may have tainted the jury’s
verdict.
And given how many times Phillips urged its “improper
and prejudicial” actual-testing arguments, we have little
confidence that those arguments did not affect the outcome
of the trial. Phillips argues that its actual-testing theory
was a “small part of the trial.” Response Br. at 40; see also
J.A. 1065 (243:1–4) (District Court denying Magēmā’s mo-
tion for curative instruction in part because jury was not
going to “remember a three-minute discussion” about ac-
tual testing). Far from it. Instead, Phillips repeatedly and
continuously urged its improper and prejudicial actual-
testing theory throughout trial. It raised that theory dur-
ing opening statements over Magēmā’s objection. It raised
it on three cross-examinations of Magēmā’s witnesses. And
most potently—after the District Court explicitly told Phil-
lips not to raise it again—Phillips urged the jury at closing
arguments to simply answer “no” to Question 1 of the ver-
dict sheet because Magēmā had “no actual test data that
shows compliance” with the ISO 8217 standard. J.A. 1086
(108:12–15).
Because we cannot be sure the error did not influence
the jury, we believe that “manifest injustice [would] result
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 19
from letting the verdict stand.” Learmonth v. Sears, Roe-
buck & Co., 631 F.3d 724, 731 (5th Cir. 2011).7
2
For its part, the District Court was satisfied that the
jury must have adopted either of the two permissible non-
infringement theories identified above related to the “mer-
chantability” and “prior to hydroprocessing” claim
limitations such that submission of the actual-testing the-
ory to the jury was harmless error.
But neither the “merchantability” nor “prior to hydro-
processing” claim limitations totally satisfy us that the
jury’s verdict was free from prejudicial error affecting
Magēmā’s substantial rights.
With respect to merchantability, the District Court
found that Phillips “presented undisputed evidence that
the Bayway feed was not merchantable because its
7 We briefly address two arguments made by Phillips
in support of the verdict. Phillips argues both that the Dis-
trict Court mitigated any prejudice by permitting Magēmā
to argue to the jury that it never received the ISBL flash-
point samples and instructing the jury that the “state-
ments of counsel are not evidence.” Neither argument is
persuasive. Magēmā was unable to explain to the jury why
it did not have test samples because the District Court in-
structed Magēmā that it could not tell the jury that “Phil-
lips has not produced [the flashpoint] test results.” J.A.
1064 (239:23–25). And the customary jury instruction that
“statements of counsel are not evidence” did little to reduce
the prejudice resulting from Phillips’ gamesmanship, hav-
ing represented to Magēmā before trial that Magēmā could
rely on Riazi Formula estimates without actual testing
data and then, at trial, presenting a theory of noninfringe-
ment to the jury that Magēmā needed precisely that testing
data.
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 20
viscosity was too low.” J.A. 112–13. But there was disputed
evidence. See, e.g., J.A. 1080 (49:3–13) (Phillips’ employee,
John Allen, admitting on cross-examination that “[f]or the
majority of time, [the viscosity on the feed and product]
meet [IMO] spec”). And only Claim 1 of the ’844 Patent in-
cluded the merchantability limitation. Therefore, as
Magēmā notes, some other theory must explain the jury’s
finding of noninfringement at least with respect to Claim
5.
And with respect to “prior to hydroprocessing,” the Dis-
trict Court found that Phillips impeached Magēmā’s hydro-
processing expert, Dr. James Speight, on the proper
location to test flashpoint. Even if true, that was a credibil-
ity determination that the jury could have made but we
cannot be sure it did, in fact, make. Indeed, and as the Dis-
trict Court noted, the parties “vigorously disputed” the lo-
cation where compliance should be determined and
presented “conflicting evidence on [the] issue,” sufficient to
get to the jury. J.A. 103–04.
* * *
In short, we are not certain or even “reasonably cer-
tain” that the jury’s verdict was free from error affecting
Magēmā’s substantial rights. Muth, 461 F.3d at 565 (cita-
tion omitted). The District Court therefore abused its dis-
cretion in determining the actual-testing argument was
harmless error. So, we reverse its order denying Magēmā’s
motion for a new trial and remand for a new trial.8 At that
8 Magēmā also argues that the District Court im-
properly submitted disputes over the scope of two claim
terms to the jury in violation of our decision in O2 Micro
International Ltd. v. Beyond Innovation Technology Co.,
521 F.3d 1351, 1361 (Fed. Cir. 2008). Opening Br. at 53–
71. Magēmā never asked the District Court to construe
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 21
re-trial, Phillips is not to argue that the ISO 8217 standard
requires actual testing data.
II
Presenting an alternative ground for affirmance, Phil-
lips argues that if the District Court had properly con-
strued the term “HMFO” at the claim construction stage
and again at summary judgment, no reasonable jury could
have found that Phillips infringed the ’884 Patent at the
Bayway Refinery.9
We review a district court’s claim construction based
on intrinsic evidence de novo, and review any findings of
fact regarding extrinsic evidence for clear error. Speed-
Track, Inc. v. Amazon.com, 998 F.3d 1373, 1378 (Fed. Cir.
2021). Claim terms are generally given their plain and or-
dinary meaning. Phillips v. AWH Corp., 415 F.3d 1303,
1313–14 (Fed. Cir. 2005) (en banc). But the plain and ordi-
nary meaning of claim terms can be overridden when the
patentee acts as his own lexicographer. Thorner v. Sony
Computer Ent. Am. LLC, 669 F.3d 1362, 1365 (Fed. Cir.
2012). “To act as its own lexicographer, a patentee must
clearly set forth a definition of the disputed claim term
other than its plain and ordinary meaning” and must
either term, however, and it now argues for the first time
that these are claim construction disputes. Because
Magēmā failed to properly raise O2 Micro issues with the
District Court below, these issues are waived. LifeNet
Health v. LifeCell Corp., 837 F.3d 1316, 1322 (Fed. Cir.
2016).
9 Phillips’ alternative ground for affirmance is
properly before us on appeal without having taken a cross-
appeal. Elan Corp. v. Andrx Pharms., Inc., 366 F.3d 1336,
1340 (Fed. Cir. 2004) (cross-appeal improper where it
merely raises an alternative ground for affirmance).
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 22
“clearly express an intent to redefine the term.” Id. (inter-
nal quotation marks and citation omitted).
We agree with the District Court that Magēmā
properly acted as its own lexicographer with respect to the
term HMFO. Column 7 of the ’844 Patent provides that cer-
tain terms, including HMFO, are utilized throughout the
Patent as “having a specific intended meaning.” ’844 Pa-
tent, col. 7, l. 49. And the ’844 Patent explicitly “define[s]”
HMFO to mean “a petroleum product fuel compliant with
the ISO 8217:2017 standards for the bulk properties of re-
sidual marine fuels except for the concentration levels of
the Environmental Contaminates.” ’844 Patent, col. 7, ll.
50–54. Thus, the term HMFO is clearly and expressly de-
fined in the specification. That definition controls. Martek
Biosciences Corp. v. Nutrinova, Inc., 579 F.3d 1363, 1380
(Fed. Cir. 2009) (“When a patentee explicitly defines a
claim term in the patent specification, the patentee’s defi-
nition controls.”).
Pointing to Column 1 of the ’844 Patent, Phillips re-
urges its Markman and summary judgment arguments
that the ’844 Patent requires HMFO to contain process res-
idues—that is, “fractions that don’t boil or vaporize.” Re-
sponse Br. at 65 (citing ’844 Patent, col. 1, ll. 28–30)). While
it is true that Column 1 provides that “[r]esidual based
fuels oils or Heavy Marine Fuel Oil (HMFO) comprises a
mixture of process residues—the fractions that don’t boil or
vaporize even under vacuum conditions,” that is a back-
ground description of the art in the section of the ’844 Pa-
tent which does not override the express definition given to
the term HMFO in Column 7 of the ’844 Patent’s specifica-
tion. Compare ’844 Patent, col. 1, ll. 28–30, with id. col. 7,
ll. 47–54.
The District Court’s construction is also sound when
read against the requirements of ISO 8217 Table 2. ISO
8217 Table 2 does not require HMFO to contain “fractions
that do not boil or vaporize even under vacuum conditions.”
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MAGEMA TECHNOLOGY LLC v. PHILLIPS 66 23
Rather, Table 2 defines residual-based HMFOs by objec-
tive, minimum and maximum physical characteristics.
Accordingly, we adopt the District Court’s claim con-
struction, as set out in its claim construction order and its
order denying Phillips’ motion for partial summary judg-
ment seeking reconsideration of the District Court’s claim
construction.10
CONCLUSION
For the foregoing reasons, we reverse the District
Court’s order denying Magēmā’s motion for a new trial and
remand for a new trial. We adopt the District Court’s claim
construction.
AFFIRMED-IN-PART, REVERSED-IN-PART,
AND REMANDED
COSTS
To Magēmā.
10 We have considered Phillips’ remaining argument
that the District Court’s erroneously denied its motion to
supplement the summary judgment record with evidence
of flashpoint testing data ISBL and find it unpersuasive.
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