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Keurig, Incorporated v. Sturm Foods, Inc.

Citations: 732 F.3d 1370; 108 U.S.P.Q. 2d (BNA) 1648; 2013 WL 5645192; 2013 U.S. App. LEXIS 20962Docket: 18-1358

Court: Court of Appeals for the Federal Circuit; October 17, 2013; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, Keurig, Inc. appealed a summary judgment from the U.S. District Court for the District of Delaware in favor of Sturm Foods, Inc., which was affirmed by the appellate court. Keurig accused Sturm of patent infringement concerning specific claims of its patents related to single-serve coffee brewers. The primary legal issue revolved around the doctrine of patent exhaustion, which holds that an initial authorized sale terminates all patent rights to that item. The district court ruled that Keurig’s patent rights were exhausted following the sale of its brewers, which practiced the claimed invention, thus allowing consumers to use non-Keurig cartridges without infringing method claims. Keurig contended that method claims should evade exhaustion when non-Keurig cartridges are used, but the court rejected this, noting that the substantial embodiment test from Quanta was inapplicable. The court also dismissed Keurig’s claim-by-claim exhaustion argument, emphasizing the need for clarity in patent rights and rejecting post-sale restrictions. Consequently, Sturm's use of compatible cartridges did not constitute infringement, and Keurig's appeal was denied, affirming the district court's application of the patent exhaustion doctrine.

Legal Issues Addressed

Claim-by-Claim Assessment in Patent Exhaustion

Application: The court rejected Keurig's argument for a claim-by-claim assessment, affirming that patent exhaustion applies to the patents as a whole.

Reasoning: The court rejected Keurig's argument that patent exhaustion should be evaluated on a claim-by-claim basis, affirming that exhaustion applies to the patents as a whole.

Patent Exhaustion Doctrine

Application: The court determined that Keurig’s patent rights were exhausted following the authorized sale of its patented brewer, which fully practiced the claimed invention.

Reasoning: The court determined that Keurig's patent rights were exhausted following the initial authorized sale of its patented brewer, which fully practiced the claimed invention.

Rights of Purchasers Post-Sale under Patent Law

Application: The court emphasized that Keurig's unrestricted sale of its brewers granted purchasers the right to use them freely, preventing Keurig from asserting infringement claims based on method usage.

Reasoning: Keurig's unrestricted sale of its brewers granted purchasers the right to use them freely, preventing Keurig from asserting infringement claims based on method usage.

Substantial Embodiment Test for Method Claims

Application: The court ruled that the substantial embodiment test from Quanta did not apply since the sale of Keurig's brewers exhausted its rights, rendering non-Keurig cartridge use non-infringing.

Reasoning: The appellate court, which ruled that the Supreme Court's substantial embodiment test for method claims did not apply in this case.