Finisar's patent covers a system for broadcasting video and audio programs through high-speed satellite or cable links.
A jury in 2006 concluded that DirecTV (DirecTV Website) had willfully infringed on seven patent claims and awarded Finisar $78.9 million as "reasonable royalty damages."
In vacating the award, the federal appeals court said the district court had misinterpreted "vital terms" in each of the patent claims.
The appellate judges vacated and remanded with instructions for the lower court to re-evaluate infringement and validity for six of the claims
