Background of the case
Festo Corporation (petitioner) possessed patents for an industrial device. After Festo began marketing its device, Shoketsu Kinzoku Kogyo Kabushiki Co. (SMC, respondents) entered the market with a device that used one two-way sealing ring and a nonmagnetizable sleeve. Festo Corporation already owned two similar patents (although their initial patent application was rejected) for this industrial device. Festo filed suit, claiming that SMC's device was sufficiently similar that it infringed Festo's patents under the doctrine of equivalents. Festo's claim had been amended during prosecution for, at the very least, compliance with 35 U.S.C. §112 (claim structure), and thus Shoketsu claimed that prosecution history estoppel should bar Festo from asserting equivalents.
The United States District Court for the District of Massachusetts held that Festo's amendments were not made to avoid prior art, and therefore the amendments were not the kind that give rise to estoppel. A panel of the Federal Circuit affirmed. 72 F. 3d 857 (1995). The Supreme Court granted certiorari , vacated, and remanded in light of an intervening decision in Warner-Jenkinson v. Hilton Davis Chemical Co. . After a decision by the original panel on remand, 172 F. 3d 1361 (1999), the Federal Circuit ordered rehearing en banc, 187 F. 3d 1381 (1999). The court sitting en banc held that claim amendments made for compliance with the Patent Act presented a complete bar to claiming equivalents.
Court's decision
The Supreme Court vacated the ruling made by the Federal Circuit, holding that such amendments do not create an absolute bar, but instead must be examined in light of the reason for the change. In the unanimous opinion, Justice Kennedy explained that it was not whether prosecution history estoppel applied to amendments, but to what extent the amendment surrendered coverage of the claim. If the change was made to clarify a translation, for example, the inventor should suffer no reduction in rights. But if the change was made to keep the patent from overlapping with another patent, then the applicant will be presumed to have given up the right to complain about anything broader than the patent claim itself.
In particular, the Court held that patentee's decision to narrow claims through amendment in order to comply with the Patent Act automatically assumes surrender of the territory between the original claim and the amended claim, i.e., a presumption of surrendering all equivalents for the particular claim limitation that was narrowed by the amendment. The Court thus placed the burden on the applicant as to showing what equivalents were not surrendered.
The Court conceded, however, that there are some cases where the amendment cannot be viewed as surrendering a particular equivalent. "The equivalent may have been unforeseeable at the time of the application; the rationale underlying the amendment may bear no more than a tangential relation to the equivalent in question; or there may be some other reason suggesting that the patentee could not reasonably be expected to have described the insubstantial substitute in question. In those cases the patentee can overcome the presumption that prosecution history estoppel bars a finding of equivalence."
In a patent or patent application, the claims define, in technical terms, the extent, i.e. the scope, of the protection conferred by a patent, or the protection sought in a patent application. In other words, the purpose of the claims is to define which subject-matter is protected by the patent. This is termed as the "notice function" of a patent claim—to warn others of what they must not do if they are to avoid infringement liability. The claims are of the utmost importance both during prosecution and litigation alike.
The doctrine of equivalents is a legal rule in many of the world's patent systems that allows a court to hold a party liable for patent infringement even though the infringing device or process does not fall within the literal scope of a patent claim, but nevertheless is equivalent to the claimed invention. U.S. Judge Learned Hand has described its purpose as being "to temper unsparing logic and prevent an infringer from stealing the benefit of the invention".
In United States patent law, patent misuse is a patent holder's use of a patent to restrain trade beyond enforcing the exclusive rights that a lawfully obtained patent provides. If a court finds that a patent holder committed patent misuse, the court may rule that the patent holder has lost the right to enforce the patent. Patent misuse that restrains economic competition substantially can also violate United States antitrust law.
The doctrine of assignor estoppel is a doctrine of United States patent law barring a patent's seller (assignor) from attacking the patent's validity in subsequent patent infringement litigation. The doctrine is based on the doctrine of legal estoppel, which prohibits a grantor from challenging the validity of his/her/its grant.
Graver Tank & Manufacturing Co. v. Linde Air Products Co., 339 U.S. 605 (1950), was an important United States Supreme Court decision in the area of patent law, establishing the propriety of the doctrine of equivalents, and explaining how and when it was to be used.
Warner-Jenkinson Company, Inc. v. Hilton Davis Chemical Co., 520 U.S. 17 (1997), was a United States Supreme Court decision in the area of patent law, affirming the continued vitality of the doctrine of equivalents while making some important refinements to the doctrine.
Prosecution history estoppel, also known as file-wrapper estoppel, is a term used to indicate that a person who has filed a patent application, and then makes narrowing amendments to the application to accommodate the patent law, may be precluded from invoking the doctrine of equivalents to broaden the scope of their claims to cover subject matter ceded by the amendments. Although primarily a U.S. term, questions of whether, or the extent to which the prosecution history should be relevant for determining the extent of protection of a patent also arise outside the U.S.
The exhaustion doctrine, also referred to as the first sale doctrine, is a U.S. common law patent doctrine that limits the extent to which patent holders can control an individual article of a patented product after a so-called authorized sale. Under the doctrine, once an authorized sale of a patented article occurs, the patent holder's exclusive rights to control the use and sale of that article are said to be "exhausted," and the purchaser is free to use or resell that article without further restraint from patent law. However, under the repair and reconstruction doctrine, the patent owner retains the right to exclude purchasers of the articles from making the patented invention anew, unless it is specifically authorized by the patentee to do so.
Japanese patent law is based on the first-to-file principle and is mainly given force by the Patent Act of Japan. Article 2 defines an invention as "the highly advanced creation of technical ideas utilizing the law of nature".
In United States patent law, inequitable conduct is a breach of the applicant's duty of candor and good faith during patent prosecution or similar proceedings by misrepresenting or omitting material information with the specific intent to deceive the United States Patent and Trademark Office. A claim of inequitable conduct is a defense to allegations of patent infringement. Even in an instance when a valid patent suffers infringement, a court ruling on an allegation of infringement may exercise its power of equitable discretion not to enforce the patent if the patentee has engaged in inequitable conduct.
Under United States patent law a prosecution disclaimer is a statement made by a patent applicant during examination of a patent application which can limit the scope of protection provided by the resulting patent. It is one type of file-wrapper estoppel, the other being prosecution history estoppel.
Oblon, McClelland, Maier & Neustadt, L.L.P. is an intellectual property law firm in Alexandria, Virginia. Founded in 1968 by Norman F. Oblon, Oblon is one of the largest law firms in the United States focusing exclusively on intellectual property law. The law firm performs trademark and patent prosecution, as well as litigation and Post-Grant Proceedings before the Patent Trial and Appeal Board (PTAB). The firm has been ranked first among law firms based on the number of utility patent applications filed per annum for 27 years.
Rowell v. Lindsay, 113 U.S. 97 (1885), was a bill brought by the appellants, John S. Rowell and Ira Rowell, the plaintiffs in the circuit court. The bill was in equity against Edmund J. Lindsay and William Lindsay, the appellees, to restrain the infringement of reissued letters patent No. 2,909, dated March 31, 1868, granted to the plaintiffs for 'a new and improved cultivator.
The Mercoid cases—Mercoid Corp. v. Mid-Continent Investment Co., 320 U.S. 661 (1944), and Mercoid Corp. v. Minneapolis-Honeywell Regulator Co., 320 U.S. 680 (1944)—are 1944 patent tie-in misuse and antitrust decisions of the United States Supreme Court. These companion cases are said to have reached the "high-water mark of the patent misuse doctrine." The Court substantially limited the contributory infringement doctrine by holding unlawful tie-ins of "non-staple" unpatented articles that were specially adapted only for use in practicing a patent, and the Court observed: "The result of this decision, together with those which have preceded it, is to limit substantially the doctrine of contributory infringement. What residuum may be left we need not stop to consider." The Court also suggested that an attempt to extend the reach of a patent beyond its claims could or would violate the antitrust laws: "The legality of any attempt to bring unpatented goods within the protection of the patent is measured by the antitrust laws, not by the patent law."
Dawson Chemical Co. v. Rohm & Haas Co., 448 U.S. 176 (1980), is a 1980 5-4 decision of the United States Supreme Court limiting the patent misuse doctrine and explaining the scope of the 1952 amendment of the patent laws that resurrected the contributory infringement doctrine in the wake of the Mercoid cases. The Mercoid cases and a few predecessor cases had denied relief against patent infringement to patentees who were deriving revenue from the sale of unpatented products used as supplies for patented combinations or as components of patented combinations, even when the unpatented products were specially adapted for use with the patented combinations and even when they lacked any utility other than that use. The patentees used contributory infringement suits or threats of such suits to enforce their business model, which the Mercoid cases outlawed.
The reverse doctrine of equivalents is a legal doctrine of United States patent law, according to which a device that appears to literally infringe a patent claim, by including elements or limitations that correspond to each element or limitation of the patent claim, nonetheless does not infringe the patent, because the accused device operates on a different principle. That is, "it performs the same or a similar function in a substantially different way." It has been said that "the purpose of the ‘reverse’ doctrine is to prevent unwarranted extension of the claims beyond a fair scope of the patentee’s invention."
Blonder-Tongue Labs., Inc. v. University of Ill. Foundation, 402 U.S. 313 (1971), is a 1971 decision of the United States Supreme Court holding that a final judgment in an infringement suit against a first defendant that a patent is invalid bars the patentee from relitigating the same patent against other defendants. In so ruling, the Supreme Court overruled its 1936 decision in Triplett v. Lowell, which had required mutuality of estoppel to bar such preclusion, and held that the better view was to prevent relitigating if the plaintiff had had a full and fair opportunity to litigate the issue in question.
