Juicy Whip, Inc. v. Orange Bang, Inc., Unique Beverage Dispensers, Inc., David Fox, and Bruce Burwick

292 F.3d 728, 63 U.S.P.Q. 2d (BNA) 1251, 2002 U.S. App. LEXIS 10980, 2002 WL 1270909
CourtCourt of Appeals for the Federal Circuit
DecidedJune 7, 2002
Docket01-1263, 01-1317
StatusPublished
Cited by63 cases

This text of 292 F.3d 728 (Juicy Whip, Inc. v. Orange Bang, Inc., Unique Beverage Dispensers, Inc., David Fox, and Bruce Burwick) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Juicy Whip, Inc. v. Orange Bang, Inc., Unique Beverage Dispensers, Inc., David Fox, and Bruce Burwick, 292 F.3d 728, 63 U.S.P.Q. 2d (BNA) 1251, 2002 U.S. App. LEXIS 10980, 2002 WL 1270909 (Fed. Cir. 2002).

Opinions

Opinion for the court filed by Circuit Judge LINN. Dissenting opinion filed by Chief Judge MAYER.

[731]*731LINN, Circuit Judge.

Juicy Whip, Inc. (“Juicy Whip”) appeals from a final judgment of invalidity and unenforceability of its U.S. Patent No. 5,575,405 (“the '405 patent”), entered by the United States District Court for the Central District of California on January 18, 2001, in favor of the defendants (collectively, “Orange Bang”). Juicy Whip, Inc. v. Orange Bang, Inc., No. 96-08148 ABC (RNBx) (C.D.Cal. Feb. 21, 2001). We conclude that substantial evidence does not support the jury’s verdict that the claims at issue are invalid as having been in prior public use. We also conclude that the record does not support the inequitable conduct ruling. Accordingly, we reverse and remand.

I. BACKGROUND

A. The Invention

The '405 patent is entitled “Post-Mix Beverage Dispenser With an Associated Simulated Display of Beverage.” Figure 1 of the patent depicts a beverage dispenser embodying the claimed invention, showing the countertop display bowl with its auxiliary equipment located below the counter and concealed from public view.

[[Image here]]

As set forth in more detail in a previous appeal involving this suit, a “post-mix” beverage dispenser stores beverage syrup concentrate and water in separate locations until the beverage is ready to be dispensed. See Juicy Whip, Inc. v. [732]*732Orange Bang, Inc., 185 F.3d 1364, 1365, 51 USPQ2d 1700, 1701 (Fed.Cir.1999) (“Juicy Whip I”). The syrup and water are mixed together immediately before the beverage is dispensed, which is usually after the consumer requests the beverage. In contrast, in a “pre-mix” beverage dispenser, the syrup concentrate and water are pre-mixed and the beverage is stored in a display reservoir bowl until it is ready to be dispensed. The display bowl is said to stimulate impulse buying by providing the consumer with a visual beverage display. A pre-mix display bowl, however, has a limited capacity and is subject to contamination by bacteria. It therefore must be refilled and cleaned frequently.

The invention claimed in the '405 patent is a post-mix beverage dispenser that is designed to look like a pre-mix beverage dispenser. The claims require the post-mix dispenser to have a transparent bowl that is filled with a fluid that simulates the appearance of the dispensed beverage and is resistant to bacterial growth. The claims also require that the dispenser create the visual impression that the bowl is the principal source of the dispensed beverage, although in fact the beverage is mixed immediately before it is dispensed, as in conventional post-mix dispensers.

The two claims at issue, claims 6 and 9, provide:

6. A method for inducing sales of a beverage to be dispensed from the outlet of a post-mix beverage dispenser, said method comprising the steps of:
positioning a transparent display bowl relative to the dispenser outlet to create the visual impression that said bowl is the reservoir and principal source from which a serving of the beverage is dispensed;
selecting a display fluid for said bowl which resists formation of organic growth and simulates the appearance of the dispensed beverage; and
visibly storing, without dispensing, a quantity of said fluid in said bowl to create the visual impression that multiple servings of the dispensed beverage are stored in said bowl for issuance from the outlet.
9. A beverage dispensing apparatus comprising:
a post-mix dispenser having a dispensing outlet for discharging beverage components in predetermined proportions to provide a serving of dispensed beverage; and
a transparent display container having no fluid connection with said outlet and visibly containing a quantity of fluid which simulates the appearance of said dispensed beverage, said fluid being resistant to organic growth;
said container being positioned relative to said outlet to create the visual impression that said container is the reservoir and principal source of said dispensed beverage issuing from said outlet; and
said container and said quantity of fluid visible within said container cooperating to create the visual impression that multiple servings of said dispensed beverage are stored within said container.

'405 patent, col. 12, 11. 49-63; col. 13, 1. 1-col. 14,1. 2.

B. The Prosecution History

The first of five applications leading to the '405 patent was filed at the United States Patent and Trademark Office (“PTO”) on September 1, 1989. Throughout the prosecution history, the examiner rejected the invention as obvious over the prior art. To overcome these rejections, the inventors, Peter K. Stratton and Gus J. Stratton, submitted, among other [733]*733things, declarations from participants in the beverage industry directed toward the novelty, commercial success, and long-felt need of the patented invention. Among the declarations were one from Greg Bou-lahanis, a former employee of an Orange Bang distributor owned by the Strattons, and another from Joe W. Bowers, Jr., a former Coca-Cola Company employee who later joined Juicy Whip. Those two declarations became part of the focus of Orange Bang’s inequitable conduct defense.

1. The Greg Boulahanis Declaration

The Boulahanis declaration was first submitted on October 31, 1990, as one of three declarations directed to the advantages of the patented invention and the problems with the prior art. The Boula-hanis declaration states that he “worked for a distributor of Orange Bang” and was responsible for servicing, maintaining, and repairing pre-mix dispensers. He explained his experiences and the difficulties of cleaning and maintaining pre-mix dispensers. Specifically, he noted that some retailers were reluctant to clean the bowls thoroughly, and those who did often damaged the machines while cleaning them. He then described how he unsuccessfully tried to solve the problems associated with the pre-mix dispensers. He concluded by saying that no one in the industry solved those problems until Juicy Whip introduced its post-mix Tower Max II dispenser to the market.

After the submission of the declaration to the PTO, the examiner responded:

[t]he declaration of Greg Boulahanis has been considered. The declaration states affiant was an employee of a competitor of the company owning the rights to the instant invention. Affiant alleges the existing technology required the disadvantage of cleaning and, although attempted, could -not be overcome in a ' manner acceptable to the industry until the appearance of the instant invention on the market which rendered unnecessary such cleaning and .dis-assembly. Affiant fails to show a nexus between the problems of prior art dispensers and the emergence of the instant invention into the market, thus the declaration lacks probative value.

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292 F.3d 728, 63 U.S.P.Q. 2d (BNA) 1251, 2002 U.S. App. LEXIS 10980, 2002 WL 1270909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/juicy-whip-inc-v-orange-bang-inc-unique-beverage-dispensers-inc-cafc-2002.