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Zoltek Corp. v. United States

Citation: 464 F.3d 1335Docket: 2004-5100

Court: Court of Appeals for the Federal Circuit; March 30, 2006; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

The case involves Zoltek Corporation's allegations of patent infringement against the United States, centering on the use of patented methods for manufacturing carbon fiber products as part of a government contract with Lockheed Martin for the F-22 fighter aircraft. The primary legal issue concerns the applicability of 28 U.S.C. § 1498, which governs government liability for patent infringement, and whether Zoltek's claims are barred due to their origination in a foreign country, as outlined in § 1498(c). The United States Court of Appeals for the Federal Circuit affirmed the trial court's determination that the government is not liable under § 1498(a) unless all steps of the patented process occur within the U.S. Concurrently, the court reversed the trial court's finding of jurisdiction under the Tucker Act to pursue a Fifth Amendment takings claim, citing the precedent set in Schillinger v. United States, which excludes patent infringement claims from being considered as takings under the Fifth Amendment. The decision emphasizes the need for all components of a claimed method to be practiced domestically to hold the government accountable under § 1498(a), while rejecting the notion of using the Tucker Act as a basis for such claims. Consequently, the court remanded the case for further proceedings consistent with this interpretation.

Legal Issues Addressed

Exclusion of Claims Arising in Foreign Countries under 28 U.S.C. § 1498(c)

Application: The court determined that Zoltek's claims were barred because they arose in a foreign country, as some steps of the patented process were performed abroad.

Reasoning: Zoltek's claims under 28 U.S.C. § 1498(a) were barred by § 1498(c) because they originated in Japan.

Fifth Amendment Takings and Patent Infringement

Application: The court held that patent infringement claims against the government cannot be pursued as a Fifth Amendment taking under the Tucker Act.

Reasoning: The Supreme Court ruled that a patentee cannot sue the government for patent infringement as a Fifth Amendment taking under the Tucker Act.

Interpretation of 'Use' in Patent Claims under 28 U.S.C. § 1498(a)

Application: A patented method is 'used' only when all steps are performed, and an infringement claim arises in a foreign country if any claimed step occurs abroad.

Reasoning: It concludes that a patented method is 'used' only when all steps are practiced, and an infringement action arises in a foreign country if any claimed step occurs abroad.

Jurisdiction under the Tucker Act for Fifth Amendment Takings

Application: The court reversed the trial court's decision asserting jurisdiction under the Tucker Act for Zoltek's Fifth Amendment taking claim.

Reasoning: However, the court reversed the determination that jurisdiction existed under the Tucker Act based on a Fifth Amendment violation.

Liability for Patent Infringement under 28 U.S.C. § 1498

Application: The court upheld that the government is liable for patent infringement only if all steps of the claimed process occur within the United States.

Reasoning: The court affirmed the lower court's finding that under 28 U.S.C. § 1498, the United States is liable for patent infringement only if it practices every step of the claimed method within the U.S.